Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com)
today announced its financial results for the quarter ended December 31,
2013. Highlights for the quarter included a 310 basis point improvement
in homebuilding gross margins, an 18.6% increase in average sales prices
and adjusted EBITDA of $21.6 million, nearly triple the amount recorded
a year ago.
“We continued to make year-over-year improvements in our key operational
metrics during the quarter,” said Allan Merrill, CEO of Beazer Homes.
“Higher sales per community, average sales prices and gross margins led
us to improved adjusted EBITDA and kept us on track to achieve full year
profitability for Fiscal 2014.”
Summary results for the quarter ended December 31, 2013 are as follows:
Q1 Results from Continuing Operations (unless
otherwise specified)
|
|
Quarter Ended December 31,
|
|
|
2013
|
|
|
2012
|
|
|
Change
|
New Home Orders
|
|
895
|
|
|
|
932
|
|
|
|
(4.0
|
)%
|
Orders per month per community
|
|
2.2
|
|
|
|
2.1
|
|
|
|
4.8
|
%
|
LTM orders per month per community
|
|
2.9
|
|
|
|
2.5
|
|
|
|
16.0
|
%
|
Cancellation rates
|
|
21.8
|
%
|
|
|
26.4
|
%
|
|
|
-460 bps
|
|
|
|
|
|
|
|
|
|
Total Home Closings
|
|
1,038
|
|
|
|
1,038
|
|
|
|
—
|
%
|
Average sales price from closings (in thousands)
|
|
$
|
279.3
|
|
|
|
$
|
235.5
|
|
|
|
18.6
|
%
|
Homebuilding revenue (in millions)
|
|
$
|
290.0
|
|
|
|
$
|
244.4
|
|
|
|
18.6
|
%
|
Homebuilding gross profit margin, excluding impairments and
abandonments (I&A)
|
|
18.8
|
%
|
|
|
14.7
|
%
|
|
|
410 bps
|
Homebuilding gross profit margin, excluding I&A and interest
amortized to cost of sales
|
|
21.2
|
%
|
|
|
18.1
|
%
|
|
|
310 bps
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before income taxes (in millions)
|
|
$
|
(3.9
|
)
|
|
|
$
|
(19.2
|
)
|
|
|
$
|
15.3
|
|
Benefit from income taxes (in millions)
|
|
$
|
—
|
|
|
|
$
|
0.3
|
|
|
|
$
|
(0.3
|
)
|
Net loss from continuing operations (in millions)
|
|
$
|
(3.9
|
)
|
|
|
$
|
(18.9
|
)
|
|
|
$
|
15.0
|
|
Basic Loss Per Share
|
|
$
|
(0.16
|
)
|
|
|
$
|
(0.78
|
)
|
|
|
$
|
0.62
|
|
Inventory impairments (in millions)
|
|
$
|
—
|
|
|
|
$
|
(0.2
|
)
|
|
|
$
|
0.2
|
|
Net loss from continuing operations excluding inventory impairments
(in millions)
|
|
$
|
(3.9
|
)
|
|
|
$
|
(18.7
|
)
|
|
|
$
|
14.8
|
|
Land and land development spending (in millions)
|
|
$
|
123.8
|
|
|
|
$
|
90.0
|
|
|
|
$
|
33.8
|
|
Total Company Adjusted EBITDA (in millions)
|
|
$
|
21.6
|
|
|
|
$
|
7.7
|
|
|
|
$
|
13.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2013
-
Total cash and cash equivalents: $431.7 million, including
unrestricted cash of approximately $382.6 million
-
Stockholders' equity: $235.6 million
-
Total backlog from continuing operations: 1,750 homes with a sales
value of $500.0 million, compared to 1,817 homes with a sales value of
$478.3 million as of December 31, 2012
-
Land and lots controlled: 28,978 lots (79.0% owned), an increase of
15.4% from December 31, 2012
Conference Call
The Company will hold a conference call on January 31, 2014 at 11:00 am
ET to discuss these results. Interested parties may listen to the
conference call and view the Company's slide presentation over the
Internet by visiting the “Investor Relations” section of the Company's
website at www.beazer.com.
To access the conference call by telephone, listeners should dial
800-619-8639 (for international callers, dial 312-470-7002). To be
admitted to the call, verbally supply the passcode "BZH". A replay of
the call will be available shortly after the conclusion of the live
call. To directly access the replay, dial 800-685-6061 or 203-369-3604
and enter the passcode “3740” (available until 9:30 pm ET on February 7,
2014), or visit www.beazer.com.
A replay of the webcast will be available at www.beazer.com
for at least 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) the availability and cost
of land and the risks associated with the future value of our inventory
such as additional asset impairment charges or writedowns; (ii) economic
changes nationally or in local markets, including changes in consumer
confidence, declines in employment levels, inflation and increases in
the quantity and decreases in the price of new homes and resale homes in
the market; (iii) the cyclical nature of the homebuilding industry and a
potential deterioration in homebuilding industry conditions; (iv)
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; (v) shortages of or increased prices for labor,
land or raw materials used in housing production; (vi) 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; (vii) our
ability to comply with covenants in our debt agreements or satisfy such
obligations through repayment or refinancing; (viii) a substantial
increase in mortgage interest rates, increased disruption in the
availability of mortgage financing, a change in tax laws regarding the
deductibility of mortgage interest, or an increased number of
foreclosures; (ix) increased competition or delays in reacting to
changing consumer preference in home design; (x) factors affecting
margins such as decreased land values underlying land option agreements,
increased land development costs on communities under development or
delays or difficulties in implementing initiatives to reduce production
and overhead cost structure; (xi) estimates related to the potential
recoverability of our deferred tax assets; (xii) potential delays or
increased costs in obtaining necessary permits as a result of changes
to, or complying with, laws, regulations, or governmental policies and
possible penalties for failure to comply with such laws, regulations and
governmental policies; (xiii) the results of litigation or government
proceedings and fulfillment of the obligations in the Deferred
Prosecution Agreement and consent orders with governmental authorities
and other settlement agreements; (xiv) the impact of construction defect
and home warranty claims; (xv) the cost and availability of insurance
and surety bonds; (xvi) the performance of our unconsolidated entities
and our unconsolidated entity partners; (xvii) delays in land
development or home construction resulting from adverse weather
conditions; (xviii) the impact of information technology failures or
data security breaches; (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.
|
BEAZER HOMES USA, INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
($ in thousands, except per share data)
|
|
|
|
Three Months Ended
|
|
December 31,
|
|
2013
|
|
|
2012
|
Total revenue
|
$
|
293,170
|
|
|
|
$
|
246,902
|
|
Home construction and land sales expenses
|
238,469
|
|
|
|
210,614
|
|
Inventory impairments and option contract abandonments
|
31
|
|
|
|
204
|
|
Gross profit
|
54,670
|
|
|
|
36,084
|
|
Commissions
|
11,821
|
|
|
|
10,642
|
|
General and administrative expenses
|
28,410
|
|
|
|
26,328
|
|
Depreciation and amortization
|
2,907
|
|
|
|
2,715
|
|
Operating income (loss)
|
11,532
|
|
|
|
(3,601
|
)
|
Equity in income of unconsolidated entities
|
319
|
|
|
|
36
|
|
Other expense, net
|
(15,757
|
)
|
|
|
(15,627
|
)
|
Loss from continuing operations before income taxes
|
(3,906
|
)
|
|
|
(19,192
|
)
|
Provision for (benefit from) income taxes
|
42
|
|
|
|
(253
|
)
|
Loss from continuing operations
|
(3,948
|
)
|
|
|
(18,939
|
)
|
Loss from discontinued operations, net of tax
|
(1,190
|
)
|
|
|
(1,449
|
)
|
Net loss
|
$
|
(5,138
|
)
|
|
|
$
|
(20,388
|
)
|
Weighted average number of shares:
|
|
|
|
|
Basic and Diluted
|
25,009
|
|
|
|
24,294
|
|
Basic and Diluted loss per share:
|
|
|
|
|
Continuing Operations
|
$
|
(0.16
|
)
|
|
|
$
|
(0.78
|
)
|
Discontinued Operations
|
$
|
(0.05
|
)
|
|
|
$
|
(0.06
|
)
|
Total
|
$
|
(0.21
|
)
|
|
|
$
|
(0.84
|
)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
December 31,
|
|
2013
|
|
2012
|
Capitalized interest in inventory, beginning of period
|
$
|
52,562
|
|
|
$
|
38,190
|
|
Interest incurred
|
32,441
|
|
|
28,418
|
|
Interest expense not qualified for capitalization and included as
other expense
|
(16,032
|
)
|
|
(16,211
|
)
|
Capitalized interest amortized to house construction and land sales
expenses
|
(7,135
|
)
|
|
(8,475
|
)
|
Capitalized interest in inventory, end of period
|
$
|
61,836
|
|
|
$
|
41,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEAZER HOMES USA, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
($ in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
September 30, 2013
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
382,560
|
|
|
|
$
|
504,459
|
|
Restricted cash
|
|
49,155
|
|
|
|
48,978
|
|
Accounts receivable (net of allowance of $1,495 and $1,651,
respectively)
|
|
21,074
|
|
|
|
22,342
|
|
Income tax receivable
|
|
2,813
|
|
|
|
2,813
|
|
Inventory
|
|
|
|
|
|
Owned inventory
|
|
1,374,987
|
|
|
|
1,304,694
|
|
Land not owned under option agreements
|
|
7,751
|
|
|
|
9,124
|
|
Total inventory
|
|
1,382,738
|
|
|
|
1,313,818
|
|
Investments in unconsolidated entities
|
|
47,424
|
|
|
|
44,997
|
|
Deferred tax assets, net
|
|
5,333
|
|
|
|
5,253
|
|
Property, plant and equipment, net
|
|
17,437
|
|
|
|
17,000
|
|
Other assets
|
|
24,299
|
|
|
|
27,129
|
|
Total assets
|
|
$
|
1,932,833
|
|
|
|
$
|
1,986,789
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Trade accounts payable
|
|
$
|
60,505
|
|
|
|
$
|
83,800
|
|
Other liabilities
|
|
117,318
|
|
|
|
145,623
|
|
Obligations related to land not owned under option agreements
|
|
3,147
|
|
|
|
4,633
|
|
Total debt (net of discounts of $4,970 and $5,160 respectively)
|
|
1,516,255
|
|
|
|
1,512,183
|
|
Total liabilities
|
|
$
|
1,697,225
|
|
|
|
$
|
1,746,239
|
|
|
|
|
|
|
|
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, 25,358,835 and 25,245,945 issued and outstanding,
respectively)
|
|
25
|
|
|
|
25
|
|
Paid-in capital
|
|
846,361
|
|
|
|
846,165
|
|
Accumulated deficit
|
|
(610,778
|
)
|
|
|
(605,640
|
)
|
Total stockholders’ equity
|
|
235,608
|
|
|
|
240,550
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,932,833
|
|
|
|
$
|
1,986,789
|
|
|
|
|
|
|
|
Inventory Breakdown
|
|
|
|
|
|
Homes under construction
|
|
$
|
260,359
|
|
|
|
$
|
262,476
|
|
Development projects in progress
|
|
611,736
|
|
|
|
578,453
|
|
Land held for future development
|
|
338,512
|
|
|
|
341,986
|
|
Land held for sale
|
|
59,924
|
|
|
|
31,331
|
|
Capitalized interest
|
|
61,836
|
|
|
|
52,562
|
|
Model homes
|
|
42,620
|
|
|
|
37,886
|
|
Land not owned under option agreements
|
|
7,751
|
|
|
|
9,124
|
|
Total inventory
|
|
$
|
1,382,738
|
|
|
|
$
|
1,313,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BEAZER HOMES USA, INC.
|
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
|
($ in thousands, except otherwise noted)
|
|
|
|
|
|
Quarter Ended December 31,
|
SELECTED OPERATING DATA
|
|
2013
|
|
2012
|
Closings:
|
|
|
|
|
West region
|
|
435
|
|
|
499
|
East region
|
|
338
|
|
|
353
|
Southeast region
|
|
265
|
|
|
186
|
Total closings
|
|
1,038
|
|
|
1,038
|
|
|
|
|
|
New orders, net of cancellations:
|
|
|
|
|
West region
|
|
351
|
|
|
424
|
East region
|
|
308
|
|
|
309
|
Southeast region
|
|
236
|
|
|
199
|
Total new orders
|
|
895
|
|
|
932
|
|
|
|
|
|
Backlog units at end of period:
|
|
|
|
|
West region
|
|
654
|
|
|
764
|
East region
|
|
631
|
|
|
703
|
Southeast region
|
|
465
|
|
|
350
|
Total backlog units
|
|
1,750
|
|
|
1,817
|
|
|
|
|
|
Dollar value of backlog at end of period (in millions)
|
|
$
|
500.0
|
|
|
$
|
478.3
|
|
|
|
|
|
Homebuilding Revenue:
|
|
|
|
|
West region
|
|
$
|
120,212
|
|
|
$
|
109,753
|
East region
|
|
106,879
|
|
|
96,464
|
Southeast region
|
|
62,867
|
|
|
38,208
|
Total homebuilding revenue
|
|
$
|
289,958
|
|
|
$
|
244,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31,
|
SUPPLEMENTAL FINANCIAL DATA
|
|
2013
|
|
|
2012
|
Revenues:
|
|
|
|
|
|
Homebuilding
|
|
$
|
289,958
|
|
|
|
$
|
244,425
|
Land sales and other
|
|
3,212
|
|
|
|
2,477
|
Total
|
|
$
|
293,170
|
|
|
|
$
|
246,902
|
|
|
|
|
|
|
Gross profit:
|
|
|
|
|
|
Homebuilding
|
|
$
|
54,450
|
|
|
|
$
|
35,630
|
Land sales and other
|
|
220
|
|
|
|
454
|
Total
|
|
$
|
54,670
|
|
|
|
$
|
36,084
|
|
|
|
|
|
|
|
|
|
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.
|
|
Quarter Ended December 31,
|
|
|
|
2013
|
|
|
|
2012
|
|
Homebuilding gross profit
|
|
$
|
54,450
|
|
|
18.8
|
%
|
|
|
$
|
35,630
|
|
|
14.6
|
%
|
Inventory impairments and lot option abandonments (I&A)
|
|
31
|
|
|
|
|
|
204
|
|
|
|
Homebuilding gross profit before I&A
|
|
54,481
|
|
|
18.8
|
%
|
|
|
35,834
|
|
|
14.7
|
%
|
Interest amortized to cost of sales
|
|
7,135
|
|
|
|
|
|
8,475
|
|
|
|
Homebuilding gross profit before I&A and interest amortized to cost
of sales
|
|
$
|
61,616
|
|
|
21.2
|
%
|
|
|
$
|
44,309
|
|
|
18.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31,
|
|
|
2013
|
|
|
2012
|
Net loss
|
|
$
|
(5,138
|
)
|
|
|
$
|
(20,388
|
)
|
Benefit from income taxes
|
|
52
|
|
|
|
(275
|
)
|
Interest amortized to home construction and land sales expenses,
capitalized interest impaired, and interest expense not qualified
for capitalization
|
|
23,167
|
|
|
|
24,686
|
|
Depreciation and amortization and stock compensation amortization
|
|
3,516
|
|
|
|
3,499
|
|
Inventory impairments and option contract abandonments
|
|
31
|
|
|
|
221
|
|
Adjusted EBITDA
|
|
$
|
21,628
|
|
|
|
$
|
7,743
|
|
Copyright Business Wire 2014