Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com)
today announced its financial results for the quarter and nine months
ended June 30, 2013.
The Company's third quarter results included notable progress on its
Path-to-Profitability strategies, including increased margins and higher
sales per active community. Adjusted EBITDA was $21.8 million for the
quarter, up from $4.0 million in the third quarter of Fiscal 2012.
Year-to-date orders were up slightly over last year, while orders for
the third quarter were down year-over-year due to an expected decline in
community count. With an aggressive land acquisition strategy underway,
the Company expects a materially higher community count by the end of
Fiscal 2014.
“We were pleased with the continued improvement in both our key
operational metrics and our financial results for the third quarter,”
said Allan Merrill, CEO of Beazer Homes. “With improved homebuilding
gross margins, higher average sales prices and strict control over
operating expenses, we are poised to report positive net income in our
fiscal fourth quarter and expect to report our first full year of
profitability in nearly a decade for fiscal 2014.”
Summary results for the quarter and nine months ended June 30, 2013 are
as follows (per share amounts are calculated after giving effect to a
1-for-5 reverse stock split completed on October 11, 2012, as
applicable):
Q3 Results from Continuing Operations (unless
otherwise specified)
|
|
Quarter Ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
Change
|
New Home Orders
|
|
1,381
|
|
|
|
1,555
|
|
|
|
(11.2
|
)%
|
LTM orders per month per community
|
|
2.7
|
|
|
|
2.2
|
|
|
|
22.7
|
%
|
Cancellation rates
|
|
20.0
|
%
|
|
|
24.5
|
%
|
|
|
-450 bps
|
|
|
|
|
|
|
|
|
|
Total Home Closings
|
|
1,234
|
|
|
|
1,109
|
|
|
|
11.3
|
%
|
Average sales price from closings (in thousands)
|
|
$
|
253.8
|
|
|
|
$
|
227.3
|
|
|
|
11.7
|
%
|
Homebuilding revenue (in millions)
|
|
$
|
313.1
|
|
|
|
$
|
252.1
|
|
|
|
24.2
|
%
|
Homebuilding gross profit margin, excluding impairments and
abandonments (I&A)
|
|
17.1
|
%
|
|
|
10.5
|
%
|
|
|
660 bps
|
Homebuilding gross profit margin, excluding I&A and interest
amortized to cost of sales
|
|
20.3
|
%
|
|
|
16.7
|
%
|
|
|
360 bps
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes (in millions)
|
|
$
|
(5.9
|
)
|
|
|
$
|
(37.9
|
)
|
|
|
$
|
32.0
|
|
Benefit from (provision for) income taxes (in millions)
|
|
$
|
0.4
|
|
|
|
$
|
(0.1
|
)
|
|
|
$
|
0.5
|
|
Net loss from continuing operations (in millions)
|
|
$
|
(5.4
|
)
|
|
|
$
|
(38.0
|
)
|
|
|
$
|
32.6
|
|
Basic Loss Per Share
|
|
$
|
(0.22
|
)
|
|
|
$
|
(1.92
|
)
|
|
|
$
|
1.70
|
|
Inventory impairments (in millions)
|
|
$
|
—
|
|
|
|
$
|
(5.8
|
)
|
|
|
$
|
5.8
|
|
Net loss from continuing operations excluding inventory impairments
(in millions)
|
|
$
|
(5.4
|
)
|
|
|
$
|
(32.2
|
)
|
|
|
$
|
26.8
|
|
Land and land development spending (in millions)
|
|
$
|
161.8
|
|
|
|
$
|
40.5
|
|
|
|
$
|
121.3
|
|
Total Company Adjusted EBITDA (in millions)
|
|
$
|
21.8
|
|
|
|
$
|
4.0
|
|
|
|
$
|
17.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Month Results from Continuing Operations
(unless otherwise specified)
|
|
Nine Months Ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
Change
|
New Home Orders
|
|
3,834
|
|
|
|
3,791
|
|
|
|
1.1
|
%
|
LTM orders per month per community
|
|
2.7
|
|
|
|
2.2
|
|
|
|
22.7
|
%
|
Cancellation rates
|
|
21.1
|
%
|
|
|
26.0
|
%
|
|
|
-490 bps
|
|
|
|
|
|
|
|
|
|
Total Home Closings
|
|
3,399
|
|
|
|
2,820
|
|
|
|
20.5
|
%
|
Average sales price from closings (in thousands)
|
|
$
|
248.0
|
|
|
|
$
|
222.9
|
|
|
|
11.3
|
%
|
Homebuilding revenue (in millions)
|
|
$
|
843.0
|
|
|
|
$
|
628.5
|
|
|
|
34.1
|
%
|
Homebuilding gross profit margin, excluding impairments and
abandonments (I&A) (a)
|
|
16.0
|
%
|
|
|
11.4
|
%
|
|
|
460 bps
|
Homebuilding gross profit margin, excluding I&A and interest
amortized to cost of sales (a)
|
|
19.3
|
%
|
|
|
18.0
|
%
|
|
|
130 bps
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes (in millions)
|
|
$
|
(44.5
|
)
|
|
|
$
|
(111.7
|
)
|
|
|
$
|
67.2
|
|
Benefit from income taxes (in millions)
|
|
$
|
1.0
|
|
|
|
$
|
36.4
|
|
|
|
$
|
(35.4
|
)
|
Net loss from continuing operations (in millions)
|
|
$
|
(43.5
|
)
|
|
|
$
|
(75.3
|
)
|
|
|
$
|
31.8
|
|
Basic Loss Per Share
|
|
$
|
(1.77
|
)
|
|
|
$
|
(4.48
|
)
|
|
|
$
|
2.71
|
|
Loss on debt extinguishment (in millions)
|
|
$
|
(3.6
|
)
|
|
|
$
|
(2.7
|
)
|
|
|
$
|
(0.9
|
)
|
Inventory impairments (in millions)
|
|
$
|
(2.2
|
)
|
|
|
$
|
(10.5
|
)
|
|
|
$
|
8.3
|
|
Net loss from continuing operations excluding inventory impairments
and loss on debt extinguishment (in millions)
|
|
$
|
(37.7
|
)
|
|
|
$
|
(62.1
|
)
|
|
|
$
|
24.4
|
|
Land and land development spending (in millions)
|
|
$
|
314.4
|
|
|
|
$
|
140.6
|
|
|
|
$
|
173.8
|
|
Total Company Adjusted EBITDA (in millions)
|
|
$
|
44.7
|
|
|
|
$
|
6.8
|
|
|
|
$
|
37.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) This homebuilding gross profit for the nine months ended June 30,
2012 includes an $11.0 million warranty recovery which contributed 180
bps to this margin.
As of June 30, 2013
-
Total cash and cash equivalents: $544.4 million, including
unrestricted cash of approximately $298.3 million
-
Stockholders' equity: $228.0 million
-
Total backlog from continuing operations: 2,358 homes with a sales
value of $646.1 million, compared to 2,421 homes with a sales value of
$572.8 million as of June 30, 2012
-
Land and lots controlled: 26,966 lots (79.4% owned), an increase of
7.5% from June 30, 2012
Conference Call
The Company will hold a conference call on August 1, 2013 at 10:00 am ET
to discuss these results. Interested parties may listen to the
conference call and view the Company's slide presentation over the
internet on the "Investor Relations" page of the Company's website, www.beazer.com.
In addition, the conference call will be available by telephone at
800-619-8639 (for international callers, dial 312-470-7002). To be
admitted to the call, verbally supply the pass code "BZH". A replay of
the conference call will be available, until 5:00 PM ET on August 8,
2013, at 888-566-0432 (for international callers, dial 203-369-3046)
with pass code “3740.” A replay of the webcast will be available at www.beazer.com
for approximately 30 days.
Headquartered in Atlanta, Beazer Homes is one of the country's 10
largest single-family homebuilders. The Company's homes meet or exceed
the benchmark for energy-efficient home construction as established by
ENERGY STAR® and are designed with flexible floorplan options to meet
the personal preferences and lifestyles of its buyers. In addition, the
Company is committed to providing a range of preferred lender choices to
facilitate transparent competition between lenders and enhanced customer
service. The Company offers homes in 16 states, including Arizona,
California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New
Jersey, New York, North Carolina, Pennsylvania, South Carolina,
Tennessee, Texas and Virginia. Beazer Homes is listed on the New York
Stock Exchange under the ticker symbol “BZH.” For more info visit
Beazer.com, or check out Beazer on Facebook and Twitter.
This press release contains forward-looking statements. These
forward-looking statements represent our expectations or beliefs
concerning future events, and it is possible that the results described
in this press release will not be achieved. These forward-looking
statements are subject to risks, uncertainties and other factors, many
of which are outside of our control, that could cause actual results to
differ materially from the results discussed in the forward-looking
statements, including, among other things, (i) economic changes
nationally or in local markets, including changes in consumer
confidence, changes in the level of housing starts, declines in
employment levels, inflation and changes in the demand and prices of new
homes and resale homes in the market; (ii) a slower economic rebound
than anticipated, coupled with persistently high unemployment and
additional foreclosures; (iii) estimates related to homes to be
delivered in the future (backlog) are imprecise as they are subject to
various cancellation risks which cannot be fully controlled; (iv) a
substantial increase in mortgage interest rates, increased disruption in
the availability of mortgage financing or a change in tax laws regarding
the deductibility of mortgage interest; (v) factors affecting margins
such as decreased land values underlying lot option agreements,
increased land development costs on communities under development or
delays or difficulties in implementing initiatives to reduce production
and overhead cost structure; (vi) the final outcome of various putative
class action lawsuits, multi-party suits and similar proceedings as well
as the results of any other litigation or government proceedings and
fulfillment of the obligations in the Deferred Prosecution Agreement and
consent orders with governmental authorities and other settlement
agreements; (vii) our cost of and ability to access capital and
otherwise meet our ongoing liquidity needs including the impact of any
downgrades of our credit ratings or reductions in our tangible net worth
or liquidity levels; (viii) our ability to comply with covenants in our
debt agreements or satisfy such obligations through repayment or
refinancing; (ix) estimates related to the potential recoverability of
our deferred tax assets; (x) increased competition or delays in reacting
to changing consumer preference in home design; (xi) shortages of or
increased prices for labor, land or raw materials used in housing
production; (xii) additional asset impairment charges or writedowns;
(xiii) the impact of construction defect and home warranty claims; (xiv)
the cost and availability of insurance and surety bonds; (xv) delays in
land development or home construction resulting from adverse weather
conditions; (xvi) potential delays or increased costs in obtaining
necessary permits and possible penalties for failure to comply with
laws, regulations and governmental policies; (xvii) the performance of
our joint ventures and our joint venture partners; (xviii) potential
exposure related to additional repurchase claims on mortgages and loans
originated by Beazer Mortgage Corp.; (xix) effects of changes in
accounting policies, standards, guidelines or principles; or (xx)
terrorist acts, acts of war and other factors over which the Company has
little or no control. Any forward-looking statement speaks only as of
the date on which such statement is made, and, except as required by
law, we do not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time and it
is not possible for management to predict all such factors.
-Tables Follow-
BEAZER HOMES USA, INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
($ in thousands, except per share data)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
June 30,
|
|
|
June 30,
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Total revenue
|
$
|
314,439
|
|
|
|
$
|
254,555
|
|
|
|
$
|
849,243
|
|
|
|
$
|
634,746
|
|
Home construction and land sales expenses
|
260,324
|
|
|
|
227,505
|
|
|
|
712,930
|
|
|
|
560,564
|
|
Inventory impairments and option contract abandonments
|
—
|
|
|
|
5,819
|
|
|
|
2,229
|
|
|
|
10,492
|
|
Gross profit
|
54,115
|
|
|
|
21,231
|
|
|
|
134,084
|
|
|
|
63,690
|
|
Commissions
|
13,078
|
|
|
|
10,776
|
|
|
|
35,406
|
|
|
|
27,522
|
|
General and administrative expenses
|
29,612
|
|
|
|
27,867
|
|
|
|
84,735
|
|
|
|
82,380
|
|
Depreciation and amortization
|
2,953
|
|
|
|
3,743
|
|
|
|
8,761
|
|
|
|
9,336
|
|
Operating income (loss)
|
8,472
|
|
|
|
(21,155
|
)
|
|
|
5,182
|
|
|
|
(55,548
|
)
|
Equity in (loss) income of unconsolidated entities
|
(310
|
)
|
|
|
48
|
|
|
|
(206
|
)
|
|
|
(25
|
)
|
Loss on extinguishment of debt
|
—
|
|
|
|
—
|
|
|
|
(3,638
|
)
|
|
|
(2,747
|
)
|
Other expense, net
|
(14,036
|
)
|
|
|
(16,804
|
)
|
|
|
(45,858
|
)
|
|
|
(53,342
|
)
|
Loss from continuing operations before income taxes
|
(5,874
|
)
|
|
|
(37,911
|
)
|
|
|
(44,520
|
)
|
|
|
(111,662
|
)
|
(Benefit from) provision for income taxes
|
(432
|
)
|
|
|
145
|
|
|
|
(1,028
|
)
|
|
|
(36,438
|
)
|
Loss from continuing operations
|
(5,442
|
)
|
|
|
(38,056
|
)
|
|
|
(43,492
|
)
|
|
|
(75,224
|
)
|
Loss from discontinued operations, net of tax
|
(346
|
)
|
|
|
(1,828
|
)
|
|
|
(2,324
|
)
|
|
|
(3,869
|
)
|
Net loss
|
$
|
(5,788
|
)
|
|
|
$
|
(39,884
|
)
|
|
|
$
|
(45,816
|
)
|
|
|
$
|
(79,093
|
)
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
24,770
|
|
|
|
19,810
|
|
|
|
24,571
|
|
|
|
16,777
|
|
Basic and Diluted loss per share:
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations
|
$
|
(0.22
|
)
|
|
|
$
|
(1.92
|
)
|
|
|
$
|
(1.77
|
)
|
|
|
$
|
(4.48
|
)
|
Discontinued Operations
|
$
|
(0.01
|
)
|
|
|
$
|
(0.09
|
)
|
|
|
$
|
(0.09
|
)
|
|
|
$
|
(0.23
|
)
|
Total
|
$
|
(0.23
|
)
|
|
|
$
|
(2.01
|
)
|
|
|
$
|
(1.86
|
)
|
|
|
$
|
(4.71
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
June 30,
|
|
|
June 30,
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Capitalized interest in inventory, beginning of period
|
$
|
45,501
|
|
|
|
$
|
47,242
|
|
|
|
$
|
38,190
|
|
|
|
$
|
45,973
|
|
Interest incurred
|
28,766
|
|
|
|
31,235
|
|
|
|
86,361
|
|
|
|
95,950
|
|
Capitalized interest impaired
|
—
|
|
|
|
(222
|
)
|
|
|
—
|
|
|
|
(275
|
)
|
Interest expense not qualified for capitalization and included as
other expense
|
(14,252
|
)
|
|
|
(17,233
|
)
|
|
|
(46,709
|
)
|
|
|
(55,147
|
)
|
Capitalized interest amortized to house construction and land sales
expenses
|
(9,996
|
)
|
|
|
(15,649
|
)
|
|
|
(27,823
|
)
|
|
|
(41,128
|
)
|
Capitalized interest in inventory, end of period
|
$
|
50,019
|
|
|
|
$
|
45,373
|
|
|
|
$
|
50,019
|
|
|
|
$
|
45,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEAZER HOMES USA, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
($ in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
June 30, 2013
|
|
|
September 30, 2012
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
298,346
|
|
|
|
$
|
487,795
|
|
Restricted cash
|
|
246,013
|
|
|
|
253,260
|
|
Accounts receivable (net of allowance of $2,045 and $2,235,
respectively)
|
|
26,066
|
|
|
|
24,599
|
|
Income tax receivable
|
|
3,080
|
|
|
|
6,372
|
|
Inventory
|
|
|
|
|
|
Owned inventory
|
|
1,265,112
|
|
|
|
1,099,132
|
|
Land not owned under option agreements
|
|
7,880
|
|
|
|
12,420
|
|
Total inventory
|
|
1,272,992
|
|
|
|
1,111,552
|
|
Investments in unconsolidated entities
|
|
42,477
|
|
|
|
42,078
|
|
Deferred tax assets, net
|
|
7,076
|
|
|
|
6,848
|
|
Property, plant and equipment, net
|
|
16,734
|
|
|
|
18,974
|
|
Other assets
|
|
30,133
|
|
|
|
30,740
|
|
Total assets
|
|
$
|
1,942,917
|
|
|
|
$
|
1,982,218
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Trade accounts payable
|
|
$
|
79,625
|
|
|
|
$
|
69,268
|
|
Other liabilities
|
|
126,746
|
|
|
|
147,718
|
|
Obligations related to land not owned under option agreements
|
|
2,904
|
|
|
|
4,787
|
|
Total debt (net of discounts of $2,341 and $3,082, respectively)
|
|
1,505,656
|
|
|
|
1,498,198
|
|
Total liabilities
|
|
$
|
1,714,931
|
|
|
|
$
|
1,719,971
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
Preferred stock (par value $.01 per share, 5,000,000 shares
authorized, no shares issued)
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Common stock (par value $0.001 per share, 63,000,000 shares
authorized, 25,090,653 and 24,601,830 issued and outstanding,
respectively)
|
|
25
|
|
|
|
25
|
|
Paid-in capital
|
|
845,549
|
|
|
|
833,994
|
|
Accumulated deficit
|
|
(617,588
|
)
|
|
|
(571,772
|
)
|
Total stockholders’ equity
|
|
227,986
|
|
|
|
262,247
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,942,917
|
|
|
|
$
|
1,982,218
|
|
|
|
|
|
|
|
Inventory Breakdown
|
|
|
|
|
|
Homes under construction
|
|
$
|
324,619
|
|
|
|
$
|
251,828
|
|
Development projects in progress
|
|
498,363
|
|
|
|
391,019
|
|
Land held for future development
|
|
341,995
|
|
|
|
367,102
|
|
Land held for sale
|
|
10,648
|
|
|
|
10,149
|
|
Capitalized interest
|
|
50,019
|
|
|
|
38,190
|
|
Model homes
|
|
39,468
|
|
|
|
40,844
|
|
Land not owned under option agreements
|
|
7,880
|
|
|
|
12,420
|
|
Total inventory
|
|
$
|
1,272,992
|
|
|
|
$
|
1,111,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEAZER HOMES USA, INC.
|
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
|
($ in thousands, except otherwise noted)
|
|
|
|
|
|
|
|
|
Quarter Ended June 30,
|
|
|
Nine Months Ended June 30,
|
SELECTED OPERATING DATA
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Closings:
|
|
|
|
|
|
|
|
|
|
|
|
West region
|
|
550
|
|
|
|
455
|
|
|
|
1,553
|
|
|
|
1,194
|
East region
|
|
370
|
|
|
|
382
|
|
|
|
1,106
|
|
|
|
984
|
Southeast region
|
|
314
|
|
|
|
272
|
|
|
|
740
|
|
|
|
642
|
Total closings
|
|
1,234
|
|
|
|
1,109
|
|
|
|
3,399
|
|
|
|
2,820
|
|
|
|
|
|
|
|
|
|
|
|
|
New orders, net of cancellations:
|
|
|
|
|
|
|
|
|
|
|
|
West region
|
|
614
|
|
|
|
730
|
|
|
|
1,696
|
|
|
|
1,688
|
East region
|
|
389
|
|
|
|
486
|
|
|
|
1,140
|
|
|
|
1,237
|
Southeast region
|
|
378
|
|
|
|
339
|
|
|
|
998
|
|
|
|
866
|
Total new orders
|
|
1,381
|
|
|
|
1,555
|
|
|
|
3,834
|
|
|
|
3,791
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog units at end of period:
|
|
|
|
|
|
|
|
|
|
|
|
West region
|
|
982
|
|
|
|
1,064
|
|
|
|
982
|
|
|
|
1,064
|
East region
|
|
781
|
|
|
|
891
|
|
|
|
781
|
|
|
|
891
|
Southeast region
|
|
595
|
|
|
|
466
|
|
|
|
595
|
|
|
|
466
|
Total backlog units
|
|
2,358
|
|
|
|
2,421
|
|
|
|
2,358
|
|
|
|
2,421
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar value of backlog at end of period (in millions)
|
|
$
|
646.1
|
|
|
|
$
|
572.8
|
|
|
|
$
|
646.1
|
|
|
|
$
|
572.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
West region
|
|
$
|
132,803
|
|
|
|
$
|
97,356
|
|
|
|
$
|
360,052
|
|
|
|
$
|
245,420
|
East region
|
|
111,333
|
|
|
|
98,850
|
|
|
|
324,334
|
|
|
|
255,519
|
Southeast region
|
|
68,993
|
|
|
|
55,865
|
|
|
|
158,639
|
|
|
|
127,601
|
Total homebuilding revenue
|
|
$
|
313,129
|
|
|
|
$
|
252,071
|
|
|
|
$
|
843,025
|
|
|
|
$
|
628,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June 30,
|
|
|
Nine Months Ended June 30,
|
SUPPLEMENTAL FINANCIAL DATA
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding
|
|
$
|
313,129
|
|
|
|
$
|
252,071
|
|
|
|
$
|
843,025
|
|
|
|
$
|
628,540
|
Land sales and other
|
|
1,310
|
|
|
|
2,484
|
|
|
|
6,218
|
|
|
|
6,206
|
Total
|
|
$
|
314,439
|
|
|
|
$
|
254,555
|
|
|
|
$
|
849,243
|
|
|
|
$
|
634,746
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding
|
|
$
|
53,588
|
|
|
|
$
|
20,656
|
|
|
|
$
|
132,471
|
|
|
|
$
|
61,475
|
Land sales and other
|
|
527
|
|
|
|
575
|
|
|
|
1,613
|
|
|
|
2,215
|
Total
|
|
$
|
54,115
|
|
|
|
$
|
21,231
|
|
|
|
$
|
134,084
|
|
|
|
$
|
63,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of homebuilding gross profit before impairments and
abandonments and interest amortized to cost of sales and the related
gross margins to homebuilding gross profit and gross margin, the most
directly comparable GAAP measure, is provided for each period discussed
below. Management believes that this information assists investors in
comparing the operating characteristics of homebuilding activities by
eliminating many of the differences in companies' respective level of
impairments and level of debt. Homebuilding gross profit for the nine
months ended June 30, 2012 included an $11.0 million warranty recovery
which added 180 basis points to homebuilding gross profit before
impairments and abandonments and interest amortized to cost of sales.
|
|
Quarter Ended June 30,
|
|
|
|
Nine Months Ended June 30,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
Homebuilding gross profit
|
|
$
|
53,588
|
|
|
17.1
|
%
|
|
|
$
|
20,656
|
|
|
8.2
|
%
|
|
|
$
|
132,471
|
|
|
15.7
|
%
|
|
|
$
|
61,475
|
|
|
9.8
|
%
|
Inventory impairments and lot option abandonments (I&A)
|
|
—
|
|
|
|
|
|
5,819
|
|
|
|
|
|
2,229
|
|
|
|
|
|
10,492
|
|
|
|
Homebuilding gross profit before I&A
|
|
53,588
|
|
|
17.1
|
%
|
|
|
26,475
|
|
|
10.5
|
%
|
|
|
134,700
|
|
|
16.0
|
%
|
|
|
71,967
|
|
|
11.4
|
%
|
Interest amortized to cost of sales
|
|
9,996
|
|
|
|
|
|
15,649
|
|
|
|
|
|
27,823
|
|
|
|
|
|
41,128
|
|
|
|
Homebuilding gross profit before I&A and interest
amortized to cost of sales
|
|
$
|
63,584
|
|
|
20.3
|
%
|
|
|
$
|
42,124
|
|
|
16.7
|
%
|
|
|
$
|
162,523
|
|
|
19.3
|
%
|
|
|
$
|
113,095
|
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization, debt extinguishment, impairments and
abandonments) to total company net loss (including discontinued
operations), the most directly comparable GAAP measure, is provided for
each period discussed below. Management believes that Adjusted EBITDA
assists investors in understanding and comparing the operating
characteristics of homebuilding activities by eliminating many of the
differences in companies' respective capitalization, tax position and
level of impairments.
|
|
Quarter Ended June 30,
|
|
|
Nine Months Ended June 30,
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Net loss
|
|
$
|
(5,788
|
)
|
|
|
$
|
(39,884
|
)
|
|
|
$
|
(45,816
|
)
|
|
|
$
|
(79,093
|
)
|
Benefit from income taxes
|
|
(470
|
)
|
|
|
150
|
|
|
|
(1,097
|
)
|
|
|
(36,846
|
)
|
Interest amortized to home construction and land sales expenses,
capitalized interest impaired, and interest expense not
qualified for capitalization
|
|
24,248
|
|
|
|
33,104
|
|
|
|
74,532
|
|
|
|
96,550
|
|
Depreciation and amortization and stock compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
|
3,590
|
|
|
|
4,456
|
|
|
|
11,036
|
|
|
|
12,582
|
|
Inventory impairments and option contract abandonments
|
|
—
|
|
|
|
6,142
|
|
|
|
2,246
|
|
|
|
10,796
|
|
Loss on debt extinguishment
|
|
—
|
|
|
|
—
|
|
|
|
3,638
|
|
|
|
2,747
|
|
Joint venture impairment and abandonment charges
|
|
181
|
|
|
|
—
|
|
|
|
181
|
|
|
|
36
|
|
Adjusted EBITDA
|
|
$
|
21,761
|
|
|
|
$
|
3,968
|
|
|
|
$
|
44,720
|
|
|
|
$
|
6,772
|
|
Copyright Business Wire 2013