Beazer Homes Announces Preliminary Operating Results
Beazer Homes Fiscal Second Quarter 2020 Highlights and Comparison to Fiscal Second Quarter 2019 (preliminary and unaudited)
- Net new orders of 1,661 vs. 1,598, up 3.9%
- Closings of 1,277 vs. 1,134, up 12.6%
- Ending backlog units of 2,231 vs. 1,989, up 12.2%
- Net new orders of 405 vs. 545, down 25.7%
- Cancellations as a percentage of gross new orders of 25.1% vs. 15.2%
- Cancellations as a percentage of homes in beginning backlog of 5.6% vs. 4.8%
- Closings of 589 vs. 592, down 0.5%
Total liquidity of
$294 millionincluding a fully drawn $250 millionrevolving credit facility. This compares to total liquidity of $221 millionat March 31, 2019, including cash of $86 millionand undrawn revolving credit facility capacity of $135 million.
No senior note maturities until 2025. Current maturities are limited to a
$50 millionamortizing term loan payment due in September 2020.
Despite an increasingly challenging business environment as a result of the COVID-19 pandemic, especially in the final weeks of March, we generated strong fiscal second quarter results and ended the quarter with substantially more liquidity than in the same period in the prior year.
We are actively taking steps to navigate through this extraordinary period by placing our highest priority on ensuring the safety and health of our employees, customers, and trade partners. We are also taking steps to maximize liquidity by limiting cash expenditures, including temporarily reducing or deferring land acquisition and development spending.
At the current time, the government is allowing construction and sales of homes in the markets in which we operate. In response to the pandemic, our sales teams have shifted to an appointment-only home sales process and are leveraging virtual sales tools to connect with our customers online. However, customer traffic and sales have slowed significantly, and due to uncertainty surrounding this ongoing public health crisis and its continued impact on the
We have scheduled the release of our financial results for the quarter ended
Forward Looking Statements
This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, which 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. Included in these risks, among other things, are the negative impact of the COVID-19 pandemic, which could include, among other things, a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home; an inability to sell and build homes in a typical manner or at all; a significant reduction in our access to additional capital to support and sustain our liquidity needs during this period in which we may be unable to sell and build homes (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations); an increase in the cost of, or decrease in the availability of, the supply of building materials or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations; and a recognition of charges in future periods, which may be material, for inventory impairments or land option contract abandonments, or both. Furthermore, because the full magnitude and duration of COVID-19 is uncertain, estimating the future performance of our business and developing strategies upon which to execute during this period is extremely challenging. COVID-19 also has resulted in significant volatility in financial markets and a sharp decrease in the value of equity and debt securities, including our common stock and outstanding notes and, because we can provide no assurance as to whether public health efforts relating to COVID-19 will be intensified to such an extent that we will not be able to conduct any business operations in our markets at all or for an indefinite period, we can provide no assurance that the value of our outstanding securities will regain their former levels. We recommend you consider these risks as well as those risks described in our Annual Report on Form 10-K for the year ended
Any forward-looking statement contained in this press release, including any statement expressing confidence regarding future outcomes, speaks only as of the date of this press release and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. New factors emerge from time-to-time, and it is not possible to predict all such factors.
Vice President of