ATLANTA, Jul 22, 2003 /PRNewswire-FirstCall via COMTEX/ -- Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com ) today announced results for the quarter ended June 30, 2003, the third quarter of its 2003 fiscal year. Highlights of the quarter, compared to the same quarter of the prior year, are as follows:

    *  Record Third Quarter Diluted EPS: $3.01 (up 16% vs. $2.59 in prior
       year)
    *  Home closings: 3,616 (down 9%)
    *  Total revenues $772 million (up 4%)
    *  Gross margin (before interest): 22.4% (up 280 basis points)
    *  Net income: $40.7 million (up 17%)
    *  Debt to total capitalization: 44% (down from 50%)
    *  All-time record new orders: 4,734 homes (up 12%)
    *  All-time record backlog: 8,578 homes (up 12%), sales value $1.8 billion
       (up 23%)
    *  Results for the quarter include $7.6 million charge ($4.6 million
       after-tax or $0.34 per share) for early repayment of debt

Record Earnings for Third Quarter of Fiscal 2003

Ian J. McCarthy, President and Chief Executive Officer of Beazer Homes, said, "We are extremely pleased to announce record June quarter EPS of $3.01 and net income of $40.7 million for the third quarter of our 2003 fiscal year. This was our first full quarter in fiscal 2003 with results that are comparable to the prior year's quarter in that both include Crossmann Communities, which we acquired last April. The increases that we continue to report in earnings, new orders and backlog illustrate the organic growth that we are achieving."

Mr. McCarthy continued, "The growth in our new orders and backlog were especially impressive during the quarter, with new orders up 12% over last year's June quarter and the dollar value of our backlog up 23% as of the end of June, both setting new all-time company records. These increases were achieved on an increase of 7% in our number of active subdivisions during the quarter relative to the same quarter of the prior year. Our increasing sales velocity and the strength of our backlog are the best leading indicators of future growth in earnings."

Strong Financial Position

David S. Weiss, Executive Vice President and Chief Financial Officer, said, "We ended the June 2003 quarter with one of our strongest balance sheets ever. Our ratio of debt to total capitalization improved from 50% to 44% relative to the June quarter of the prior year. This performance demonstrates how we have both grown the business and generated positive cash flow from operations over the past year."

Mr. Weiss also said, "During the quarter we further improved our financial position by renegotiating and extending the term on our $250 million revolving credit facility and our $200 million four-year term loan, which we increased from our prior $100 million term loan. The proceeds from the increase in our term loan were used to retire our $100 million 8-7/8% Senior Notes due in 2008. This refinancing will result in interest savings of $6 million per year, based upon current interest rates. The early retirement of our debt resulted in a one-time charge of $7.6 million ($0.34 per share after-tax) to reflect the costs of retiring our debt including the write-off of previously capitalized fees."

Beazer Increases Target EPS Range for Fiscal 2003

Mr. McCarthy concluded, "With our record performance during the June quarter and our dollar backlog up 23% we now feel optimistic in our prospects for exceeding our prior earnings per share target of $12.25 for fiscal 2003. As a result, we are now raising our EPS target to a range of $12.25 to $12.50 per share, including the $0.34 charge that we recorded this quarter for the early retirement of our debt. This new target range represents 14% to 16% growth over fiscal 2002."

Beazer Homes USA, Inc., based in Atlanta, Georgia, is one of the country's ten largest single-family homebuilders with operations in Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, Nevada, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer Homes also provides mortgage origination and title services to its homebuyers.

Notes

Forward-Looking Statements:

Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risks, uncertainties and other factors include, but are not limited to changes in general economic conditions, fluctuations in interest rates, increases in raw materials and labor costs, levels of competition and other factors described in the Company's Annual Report for the year ended September 30, 2002.

Non-GAAP Financial Measures:

EBITDA is not a generally accepted accounting principle (GAAP) financial measure. EBITDA is calculated by adding to net income the provision for income tax, depreciation, amortization and interest. EBITDA should not be considered an alternative to net income determined in accordance with GAAP as an indicator of operating performance, nor an alternative to cash flows from operating activities determined in accordance with GAAP as a measure of liquidity. Because some analysts and companies may not calculate EBITDA in the same manner as Beazer, the EBITDA information presented above may not be comparable to similar presentations by others. Beazer's management believes that EBITDA reflects the changes in the Company's operating results, particularly changes in the Company's net income, and is an indication of Beazer's ability to generate funds from operations that are available to pay income taxes, interest and principal on debt and to meet other cash obligations. A reconciliation of EBITDA to net income, the most directly comparable GAAP measure, is provided below:

                                                       Quarter Ended
                                                           June 30,
                                                    2003               2002
    Reconciliation of Net Income to EBITDA
    Net Income                                     $40,689            $34,649
    Add:
       Income taxes                                 26,566             22,622
       Interest                                     14,049             12,887
       Depreciation and amortization                 3,914              2,485
    EBITDA                                         $85,218            $72,643


                            BEAZER HOMES USA, INC.
                  CONSOLIDATED OPERATING AND FINANCIAL DATA
               (Dollars in thousands, except per share amounts)

    FINANCIAL DATA
                                     Quarter Ended       Nine Months Ended
                                        June 30,              June 30,
                                    2003      2002       2003        2002
    INCOME STATEMENT
    Revenues                       $771,758  $743,813  $2,137,485  $1,736,842
    Costs and expenses:
      Home construction and land
       sales                        598,553   597,706   1,665,903   1,391,753
      Interest                       14,049    12,887      38,149      28,825
      Selling, general and
       administrative expense        85,618    79,499     239,342     187,190
      Expenses related to early
       retirement of debt             7,570       ---       7,570         ---
    Operating income                 65,968    53,721     186,521     129,074
    Other income                      1,287     3,550       4,523       5,782

    Income before income taxes       67,255    57,271     191,044     134,856
    Income taxes                     26,566    22,622      75,463      52,880
    Net income                      $40,689   $34,649    $115,581     $81,976

    Net income per common share:
      Basic                           $3.16     $2.76       $9.01       $8.35
      Diluted                         $3.01     $2.59       $8.59       $7.63


    Weighted average shares
     outstanding, in thousands:
      Basic                          12,857    12,545      12,828       9,823
      Diluted                        13,530    13,388      13,454      10,742

    Interest incurred               $16,120   $16,729     $49,618     $34,518
    Depreciation and amortization    $3,914    $2,485      $9,597      $6,322



    SELECTED BALANCE SHEET DATA                            June 30,
                                                   2003               2002
    Cash                                           $15,356            $5,682
    Inventory                                    1,654,356         1,343,660
    Total assets                                 2,040,773         1,736,838
    Total debt                                     741,104           738,782
    Shareholders' equity                           925,966           745,814



                              BEAZER HOMES USA, INC.
              CONSOLIDATED OPERATING AND FINANCIAL DATA (Continued)
                             (Dollars in thousands)

    OPERATING DATA

                                           Quarter Ended     Nine Months Ended
                                              June 30,            June 30,
    SELECTED OPERATING DATA                2003        2002    2003      2002
    Closings:
        Southeast region                  1,204      1,350     3,390    2,856
        West region                       1,174      1,105     3,309    3,170
        Central region                      296        298       834      790
        Mid-Atlantic region                 261        347       789    1,088
        Midwest region                      681        860     2,073      860
    Total closings                        3,616      3,960    10,395    8,764
    New orders, net of cancellations:
        Southeast region                  1,673      1,387     4,316    3,438
        West region                       1,474      1,248     3,690    3,494
        Central region                      332        327       860      917
        Mid-Atlantic region                 434        337     1,382    1,102
        Midwest region                      821        928     2,206      928
    Total new orders                      4,734      4,227    12,454    9,879
    Backlog at end of period              8,578      7,627
    Dollar value of backlog at end of
     period                          $1,781,936 $1,447,144
    Active subdivisions:
        Southeast region                    187        181
        West region                          86         73
        Central region                       42         32
        Mid-Atlantic region                  39         39
        Midwest region                      135        133
    Total active subdivisions               489        458



                             BEAZER HOMES USA, INC.
              CONSOLIDATED OPERATING AND FINANCIAL DATA (Continued)
                             (Dollars in thousands)

                                    Quarter Ended       Nine Months Ended
                                       June 30,              June 30,
    SUPPLEMENTAL FINANCIAL DATA:    2003      2002       2003        2002

    Revenues
      Home sales                  $745,221  $732,269  $2,089,605  $1,709,362
      Land and lot sales            16,466     4,105      19,803       9,629
      Mortgage origination
       revenue                      14,941    10,957      40,351      26,317
      Intercompany elimination -
       mortgage                     (4,870)   (3,518)    (12,274)     (8,466)
    Total revenues                $771,758  $743,813  $2,137,485  $1,736,842
    Cost of home construction and
     land sales
      Home sales                  $589,500  $597,422  $1,661,605  $1,392,409
      Land and lot sales            13,923     3,802      16,572       7,810
      Intercompany elimination -
       mortgage                     (4,870)   (3,518)    (12,274)     (8,466)
    Total costs of home
     construction and land sales  $598,553  $597,706  $1,665,903  $1,391,753
    Selling, general and
     administrative
      Homebuilding operations      $78,026   $73,161    $217,872    $172,339
      Mortgage origination
       operations                    7,592     6,338      21,470      14,851
    Total selling, general and
     administrative                $85,618   $79,499    $239,342    $187,190

SOURCE Beazer Homes USA, Inc.

David S. Weiss, Executive Vice President and Chief Financial
Officer of Beazer Homes USA, Inc., +1-404-250-3420, or dweiss@beazer.com

http://www.beazer.com