Beazer Homes Reports First Quarter Fiscal 2009 Results
Quarter Ended
-
Reported net loss from continuing operations of
$(80.1) million , or$(2.08) per share, including non-cash pre-tax charges of$30.1 million , consisting of inventory impairments and abandonment of land option contracts of$12.7 million , goodwill impairments of$16.1 million and impairments in joint ventures of$1.3 million . For the first quarter of the prior fiscal year, the Company reported a net loss from continuing operations of$(137.7) million , or$(3.57) per share. -
Total revenue:
$232.4 million , compared to$500.7 million in the first quarter of the prior year. - Home closings: 938 homes, a decrease of 53.2% from 2,006 homes in the first quarter of the prior year.
- New orders: 545 homes, a decrease of 56.5% from 1,252 in the first quarter of the prior year.
As of
-
Cash and cash equivalents:
$436.9 million , compared to$584.3 million atSeptember 30, 2008 and$236.5 million atDecember 31, 2007 . -
Backlog: 965 homes with a sales value of
$227.2 million compared to 2,231 homes with a sales value of$605.2 million as ofDecember 31, 2007 . -
Subsequent to
December 31, 2008 , the Company received cash tax refunds of approximately$168 million .
“The housing industry continues to face the most difficult business
conditions in many decades,” said
Quarter Ended
Homebuilding revenues declined 53.1% for the quarter ended
Overall, margins continued to be negatively impacted by weak market
conditions. However, gross margin for the first fiscal quarter was 5.9%,
compared to a gross loss of 20.8% for the comparable period of the prior
year, as a result of lower non-cash pre-tax inventory impairments and
option contract abandonment charges of
The Company continued to reduce its overhead cost structure. As of
The Company also incurred a pretax charge of
The Company controlled 36,642 lots at
With respect to the Company’s cash position, at
Conference Call
The Company will hold a conference call today,
Forward Looking Statements
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 timing and final
outcome of
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 amounts) | ||||||||
Quarter Ended | ||||||||
December 31, | ||||||||
2008 | 2007 | |||||||
INCOME STATEMENT | ||||||||
Total revenue | $ | 232,364 | $ | 500,654 | ||||
Home construction and land sales expenses | 205,846 | 436,316 | ||||||
Inventory impairments and option contract abandonments | 12,709 | 168,512 | ||||||
Gross profit (loss) | 13,809 | (104,174 | ) | |||||
Selling, general and administrative expenses | 56,209 | 88,162 | ||||||
Depreciation & amortization | 3,783 | 5,978 | ||||||
Goodwill impairment | 16,143 | - | ||||||
Operating loss | (62,326 | ) | (198,314 | ) | ||||
Equity in loss of unconsolidated joint ventures | (1,413 | ) | (16,140 | ) | ||||
Other expense, net | (18,279 | ) | (2,849 | ) | ||||
Loss from continuing operations before income taxes | (82,018 | ) | (217,303 | ) | ||||
Benefit from income taxes | (1,963 | ) | (79,642 | ) | ||||
Loss from continuing operations | $ | (80,055 | ) | $ | (137,661 | ) | ||
Loss from discontinued operations, net of tax | $ | (220 | ) | $ | (575 | ) | ||
Net loss | $ | (80,275 | ) | $ | (138,236 | ) | ||
Loss per common share from continuing operations: | ||||||||
Basic | $ | (2.08 | ) | $ | (3.57 | ) | ||
Diluted | $ | (2.08 | ) | $ | (3.57 | ) | ||
Loss per common share from discontinued operations: | ||||||||
Basic | $ | - | $ | (0.02 | ) | |||
Diluted | $ | - | $ | (0.02 | ) | |||
Loss per common share: | ||||||||
Basic | $ | (2.08 | ) | $ | (3.59 | ) | ||
Diluted | $ | (2.08 | ) | $ | (3.59 | ) | ||
Weighted average shares outstanding, in thousands: | ||||||||
Basic | 38,593 | 38,539 | ||||||
Diluted | 38,593 | 38,539 |
BEAZER HOMES USA, INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except per share amounts) | ||||||||
CONSOLIDATED BALANCE SHEETS | December 31, | September 30, | ||||||
2008 | 2008 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 436,856 |
$ |
584,335 |
||||
Restricted cash | 18,987 | 297 | ||||||
Accounts receivable, net | 31,545 | 46,555 | ||||||
Income tax receivable | 173,152 | 173,500 | ||||||
Inventory | ||||||||
Owned inventory | 1,511,139 | 1,545,006 | ||||||
Consolidated inventory not owned | 75,759 | 106,655 | ||||||
Total inventory | 1,586,898 | 1,651,661 | ||||||
Investments in unconsolidated joint ventures | 33,340 | 33,065 | ||||||
Deferred tax assets, net | 20,072 | 20,216 | ||||||
Property, plant and equipment, net | 37,853 | 39,822 | ||||||
Goodwill | - | 16,143 | ||||||
Other assets | 69,122 | 76,206 | ||||||
Total assets | $ | 2,407,825 | $ | 2,641,799 | ||||
Liabilities and Stockholders' Equity | ||||||||
Trade accounts payable | $ | 54,184 | $ | 90,371 | ||||
Other liabilities | 271,077 | 358,592 | ||||||
Obligations related to consolidated inventory not owned | 48,133 | 70,608 | ||||||
Senior Notes (net of discounts of $2,448 and $2,565 respectively) | 1,522,552 | 1,522,435 | ||||||
Junior subordinated notes | 103,093 | 103,093 | ||||||
Other secured notes payable | 51,406 | 50,618 | ||||||
Model home financing obligations | 59,238 | 71,231 | ||||||
Total liabilities | 2,109,683 | 2,266,948 | ||||||
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, 80,000,000 shares | ||||||||
authorized, 42,630,541 and 42,612,801 issued and | ||||||||
39,280,609 and 39,270,038 outstanding, respectively) | 43 | 43 | ||||||
Paid-in capital | 560,489 | 556,910 | ||||||
Retained earnings (accumulated deficit) |
(78,430 | ) | 1,845 | |||||
Treasury stock, at cost (3,349,932 and 3,342,763 shares, respectively) | (183,960 | ) | (183,947 | ) | ||||
Total stockholders' equity | 298,142 | 374,851 | ||||||
Total liabilities and stockholders' equity | $ | 2,407,825 | $ | 2,641,799 | ||||
Inventory Breakdown | ||||||||
Homes under construction | $ | 295,909 | $ | 338,971 | ||||
Development projects in progress | 622,118 | 618,252 | ||||||
Land held for future development | 418,437 | 407,320 | ||||||
Land held for sale | 82,966 | 85,736 | ||||||
Model homes | 91,709 | 94,727 | ||||||
Consolidated inventory not owned | 75,759 | 106,655 | ||||||
$ | 1,586,898 | $ | 1,651,661 |
BEAZER HOMES USA, INC. | ||||
CONSOLIDATED OPERATING AND FINANCIAL DATA - CONTINUING OPERATIONS | ||||
(Dollars in thousands) | ||||
OPERATING DATA | ||||
Quarter Ended | ||||
December 31, | ||||
SELECTED OPERATING DATA | 2008 | 2007 | ||
Closings: | ||||
West region | 439 | 604 | ||
East region | 271 | 675 | ||
Southeast region | 180 | 454 | ||
Other homebuilding | 48 | 273 | ||
Total closings | 938 | 2,006 | ||
New orders, net of cancellations: | ||||
West region | 253 | 455 | ||
East region | 201 | 313 | ||
Southeast region | 79 | 286 | ||
Other homebuilding | 12 | 198 | ||
Total new orders | 545 | 1,252 | ||
Backlog units at end of period: | ||||
West region | 341 | 656 | ||
East region | 415 | 955 | ||
Southeast region | 205 | 322 | ||
Other homebuilding | 4 | 298 | ||
Total backlog units | 965 | 2,231 | ||
Dollar value of backlog at end of period | $ 227,241 | $ 605,177 |
BEAZER HOMES USA, INC. | ||||||||
CONSOLIDATED OPERATING AND FINANCIAL DATA - CONTINUING OPERATIONS | ||||||||
(Dollars in thousands) | ||||||||
Quarter Ended | ||||||||
December 31, | ||||||||
SUPPLEMENTAL FINANCIAL DATA - CONT OPS | 2008 | 2007 | ||||||
Revenues | ||||||||
Homebuilding operations | $ | 230,411 | $ | 491,787 | ||||
Land and lot sales | 1,465 | 7,565 | ||||||
Financial Services | 488 | 1,302 | ||||||
Total revenues | $ | 232,364 | $ | 500,654 | ||||
Gross profit (loss) | ||||||||
Homebuilding operations | $ | 13,108 | (107,755 | ) | ||||
Land and lot sales | 213 | 2,279 | ||||||
Financial Services | 488 | 1,302 | ||||||
Total gross profit (loss) | $ | 13,809 | $ | (104,174 | ) | |||
Selling, general and administrative | ||||||||
Homebuilding operations | 55,717 | $ | 87,487 | |||||
Financial Services | 492 | 675 | ||||||
Total selling, general and administrative | $ | 56,209 | $ | 88,162 | ||||
SELECTED SEGMENT INFORMATION - CONT OPS | ||||||||
Revenue: | ||||||||
West region | $ | 103,417 | $ | 153,594 | ||||
East region | 73,191 | 172,847 | ||||||
Southeast region | 41,073 | 107,778 | ||||||
Other homebuilding | 14,195 | 65,133 | ||||||
Financial services | 488 | 1,302 | ||||||
Total revenue | $ | 232,364 | $ | 500,654 | ||||
Operating (loss) income | ||||||||
West region | $ | (6,246 | ) | $ | (50,751 | ) | ||
East region | (3,424 | ) | (22,001 | ) | ||||
Southeast region | (1,945 | ) | (27,521 | ) | ||||
Other homebuilding | (866 | ) | (44,617 | ) | ||||
Financial services | (12 | ) | 620 | |||||
Segment operating loss | (12,493 | ) | (144,270 | ) | ||||
Corporate and unallocated | (49,833 | ) | (54,044 | ) | ||||
Total operating loss | $ | (62,326 | ) | $ | (198,314 | ) |
Source:
Beazer Homes USA, Inc.
Leslie H. Kratcoski, 770-829-3700
Vice
President, Investor Relations & Corporate Communications
lkratcos@beazer.com