Novation Holdings Inc. · OTC:NOHO

Novation — NovaStar Financial — Q3 2006 Earnings Presentation

16 slides from Novation's earnings presentation, Nov 7, 2006

  1. Slide 1: NovaStar Financial 2006 Third Quarter Earnings Conference Call

    NovaStar Financial (NYSE-NFI) www.novastarmortgage.com 2006 Third Quarter Earnings Conference Call November 8, 2006

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Certain matters discussed in this release constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are those that predict or describe future events and that do not relate solely to historical matters. Forward-looking st

  3. Slide 3: Opening Comments

    Opening Comments Scott Hartman, CEO

  4. Slide 4: Results of Operations

    Results of Operations Greg Metz, CFO

  5. Slide 5: Summary Statistics

    Summary Statistics 1 See appendix to this presentation for cost of wholesale production – G&A expense reconciliation

  6. Slide 6: Dividends

    Dividends On September 11, 2006 the Board of Directors of NovaStar announced the declaration of remaining common dividends for 2006: A common stock dividend of $1.40 per share, payable November 30, 2006 to shareholders of record as of November 20, 2006 A common stock dividend of $1.40 per share, pay

  7. Slide 7: Monthly Production

    4,200,000 4,100,000 4,000,000 900,000 800,000 vor Lot Vi 00,000 Production (00's) 600,000 400,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec +2004 —s— 2005 w= 2008,

  8. Slide 8: Production Gross Spread

    Production Gross Spread

  9. Slide 9: FICO Scores

    NovsSr « =- > j FICO 632 O85: 628 625 623 8 05 4 05 Qi 06 2 06 3 06 Liv 83 82 82 81 81 03 05 a4 05 a1 06 a2 16 03 06

  10. Slide 10: Wholesale COP

    Wholesale COP* *See appendix to this presentation for cost of wholesale production – G&A expense reconciliation

  11. Slide 11: Third Quarter Loan Sales and Gain-on-Sale

    Third Quarter 2006 2005 Change Loan Sales 2,868,676 2,630,238 9% Gain-on-sale 30,999 11,557 168% Gain (%) 1.08% 0.44%

  12. Slide 12: Portfolio Net Interest Income

    Portfolio Net Interest Income

  13. Slide 13: NovaStar Loan Portfolio Net Interest Income and ROA

    NOVASTAR: 2.00% = 1.80% & 600 ry 1.60% £ § 500 1.40% = 1.20% ¢ 400 « = 4.00% 3 3 00 0.80% . % 3 200 0.60% g ° 5 0.40% 2 5 0.20% Sx 0.00% oes ype R oF oF sy oe ® a Loan Portfolio Net Interest income ——ROA

  14. Slide 14: Questions

    Questions

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Cost of Wholesale Production

    Cost of Wholesale Production

NovaStar Financial — Q3 2006 Earnings Presentation on 6ix