Three Months Ended

July 31,

Nine Months Ended

July 31,

(In thousands, except per share data)

2014

2013

2014

2013

Numerator:

Net earnings (loss) attributable to Hovnanian

$17,105

$8,466

$(15,320

)

$(1,524

)

Less: undistributed earnings allocated to nonvested shares

(386

)

(15

)

-

Numerator for basic earnings per share

16,719

8,451

(15,320

)

(1,524

)

Plus: undistributed earnings allocated to nonvested shares

386

15

Less: undistributed earnings reallocated to nonvested shares

(386

)

(15

)

-

Plus: interest on Senior Exchangeable Notes

879

893

-

Numerator for diluted earnings per share

17,598

9,344

(15,320

)

(1,524

)

Denominator:

Denominator for basic earnings per share

146,365

146,056

146,223

144,840

Effect of dilutive securities:

Share-based payments

756

1,610

-

Senior Exchangeable Notes

15,157

-

Denominator for diluted earnings per share – weighted-average shares outstanding

162,278

162,823

146,223

144,840

Basic earnings per share

$0.11

$0.06

$(0.10

)

$(0.01

)

Diluted earnings per share

$0.11

$0.06

$(0.10

)

$(0.01

)