ATLANTA - Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2012.

“I'm pleased with the significant progress we made in 2012 strengthening both our business and our balance sheet,” said Allan Merrill, President and Chief Executive Officer of Beazer Homes. “Operationally, we generated significant growth in orders, closings and backlog, while seeing improving trends in gross margins. From a balance sheet perspective, we added liquidity, improved our book value, extended debt maturities and reduced interest expense."

"In 2013, we expect to meaningfully improve our EBITDA, primarily by achieving margin expansion and further improvement in our sales per community metrics. While our community count will likely decrease for much of the year, we are actively investing in a substantial number of new communities, which we expect to deliver closings starting in fiscal year 2014.”

Summary results of the fiscal year and quarter are as follows (all per share amounts are calculated after giving effect to a 1-for-5 reverse stock split completed subsequent to September 30, 2012):

Full Year Results from Continuing Operations (unless otherwise specified)

Year Ended September 30,
2012 2011 Change
New Home Orders 4,901 3,927 24.8 %
Average community count 178 179 (0.6 )%
Orders per month per community 2.3 1.8 27.8 %
Cancellation rates 27.2 % 27.0 %

20

bps

Total Home Closings 4,428 3,249 36.3 %
Average sales price from closings (in thousands) $ 224.9 $ 219.4 2.5 %
Homebuilding revenue (in millions) $ 996.1 $ 712.7 39.8 %
Homebuilding gross profit margin, excluding impairments and
abandonments 11.6 % 10.7 % 90 bps
Homebuilding gross profit margin, excluding impairments,
abandonments and interest amortized to cost of sales 17.7 % 17.2 % 50 bps
Net loss from continuing operations (in millions) $ (135.6 ) $ (200.2 ) $ 64.6
Per Share $ (7.34 ) $ (13.53 ) $ 6.19
Loss on debt extinguishment (in millions) $ (45.1 ) $ (2.9 ) $ (42.2 )
Inventory impairments (in millions) $ (12.2 ) $ (32.5 ) $ 20.3
Net (loss) income from continuing operations excluding loss on debt
extinguishment and inventory impairments (in millions) $ (78.3 ) $ (164.8 ) $ 86.5
Land and land development spending (in millions) $ 185.5 $ 221.6 $ (36.1 )
Adjusted EBITDA (in millions) $ 21.8 $ (24.9 ) $ 46.7

Q4 Results from Continuing Operations (unless otherwise specified)

Quarter Ended September 30,
2012 2011 Change
New Home Orders 1,110 1,006 10.3 %
Average community count 163 184 (11.4 )%
Orders per month per community 2.3 1.8 27.8 %
Cancellation rates 31.1 % 34.2 %

-310

bps

Total Home Closings 1,608 1,376 16.9 %
Average sales price from closings (in thousands) $ 228.6 $ 228.1 0.2 %
Homebuilding revenue (in millions) $ 367.5 $ 313.8 17.1 %
Homebuilding gross profit margin, excluding impairments and
abandonments 11.8 % 9.9 % 190 bps
Homebuilding gross profit margin, excluding impairments,
abandonments and interest amortized to cost of sales 17.2 % 16.3 % 90 bps
Net loss from continuing operations (in millions) $ (60.4 ) $ (42.4 ) $ (18.0 )
Per Share $ (2.57 ) $ (2.86 ) $ 0.29
Loss on debt extinguishment (in millions) $ (42.4 ) $ $ (42.4 )
Inventory impairments (in millions) $ (1.7 ) $ (7.1 ) $ 5.4
Net (loss) income from continuing operations excluding loss on debt
extinguishment and inventory impairments (in millions) $ (16.3 ) $ (35.3 ) $ 19.0
Land and land development spending (in millions) $ 45.0 $ 43.6 $ 1.4
Adjusted EBITDA (in millions) $ 15.1 $ 8.9 $ 6.2

 

As of September 30, 2012

Total cash and cash equivalents: $741.1 million, including unrestricted cash of approximately $487.8 million

Stockholders' equity: $262.2 million, not including $9.4 million of mandatory convertible subordinated notes, which automatically convert to common stock at maturity in 2013

Total backlog from continuing operations: 1,923 homes with a sales value of $479.1 million, compared to 1,450 homes with a sales value of $334.5 million as of September 30, 2011

Land and lots controlled: 24,147 lots (82.6% owned), a decrease of 9.5% from September 30, 2011

Capital Markets Activity

During the quarter ended September 30, 2012, we engaged in several capital raising transactions designed to further strengthen our balance sheet and position us to better participate in the emerging housing recovery. During July, we completed underwritten public offerings of 4.4 million (split-adjusted) shares of Beazer common stock at $14.50 per share, totaling $63.8 million, 4.6 million 7.50% tangible equity units, totaling $115.0 million, and a private placement of $300 million of 6.625% senior secured notes due 2018, generating approximately $466 million of proceeds, net of the offering fees and expenses. A portion of these proceeds were used to fund the redemption of our $250 million 12% senior secured notes due 2017 and to repurchase $15 million of our 9 1/8% senior unsecured notes due 2019. The remaining funds will be used to expand our new home community count in targeted markets and for general corporate purposes. The capital market transactions completed in fiscal 2012 are expected to reduce the Company's annual interest expense obligation by approximately $15 million.

Also, while we believe we possess sufficient liquidity to participate in a housing recovery, we are mindful of potential short-term, or seasonal, requirements for enhanced liquidity that may arise. Therefore, during September, we entered into a $150 million, three-year amended and restated senior revolving credit facility, further strengthening our available liquidity.

Finally, subsequent to September 30, 2012, we announced the effectiveness of a 1-for-5 reverse split of our common stock. Shares of Beazer Homes' common stock began trading on a split-adjusted basis on October 12, 2012.

Conference Call

The Company will hold a conference call on November 12, 2012 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 866-495-9351 or 203-369-1779 and enter the passcode “3740” (available until 11:00 pm ET on November 19, 2012 ), or visit www.beazer.com. A replay of the webcast will be available at www.beazer.com for approximately 30 days.

Beazer Homes USA Inc., headquartered in Atlanta, Georgia, is one of the ten largest single-family homebuilders in the United States. The Company's industry-leading high performance homes are designed to lower the total cost of home ownership while reducing energy and water consumption. With award-winning floor-plans, the Company offers homes that incorporate exceptional value and quality to consumers 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 and trades under the ticker symbol “BZH.”

For more information, please visit Beazer.com or check out Beazer on Facebook and Twitter

Source: Beazer Homes USA, Inc.

 

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