Beazer Homes Reports Second Quarter Fiscal 2009 Results
Quarter Ended
-
Reported loss from continuing operations of
$(114.8) million , or$(2.97) per share, including non-cash pre-tax charges of$60.1 million , consisting of inventory impairments and abandonment of land option contracts of$51.8 million and impairments in joint ventures of$8.3 million . Results for the quarter also include approximately$13 million in estimated payments related to governmental investigations. For the second quarter of the prior fiscal year, the Company reported a loss from continuing operations of$(228.7) million , or$(5.93) per share. -
Total revenue:
$188.3 million , compared to$405.4 million in the second quarter of the prior year. - Home closings: 814 homes, representing a decrease year-over-year of 38.8% in markets where the Company maintains a presence and 97.2% in the Company’s exit markets.
- New orders: 1,129 homes, representing a decrease year-over-year of 35.6% in markets where the Company maintains a presence and 97.6% in the Company’s exit markets.
- The cancellation rate for the second quarter improved to 29.8%, compared to 46.1% in the first quarter of this fiscal year and 33.7% in the second quarter of the prior year.
As of
-
Cash and cash equivalents:
$559.5 million , compared to$436.9 million atDecember 31, 2008 and$273.7 million atMarch 31, 2008 . As previously announced, the Company received cash tax refunds of$168.4 million during the quarter endedMarch 31, 2009 . -
Backlog: 1,280 homes with a sales value of
$296.6 million compared to 965 homes with a sales value of$227.2 million as ofDecember 31, 2008 , and 2,619 homes with a sales value of$672.5 million as ofMarch 31, 2008 .
Results for the Quarter Ended
Homebuilding revenues declined 53.2% for the quarter ended
Overall, margins continued to be negatively impacted by weak market
conditions and as a result of non-cash pre-tax charges for inventory
impairments, lot option abandonments and joint venture impairments of
The Company continued to reduce its overhead cost structure. As of
The Company controlled 34,407 lots at
With respect to the Company’s cash position, at
Secured Revolving Credit Facility Waiver
On
In exchange for the waiver, the Company has agreed to not borrow under
the facility and to maintain the current level of
The investments covenant restricts the Company’s ability to make
investments in joint ventures, non-guarantor subsidiaries, guaranty
obligations of debt and certain other investments (“Investments”) that
exceed 35% of Tangible Net Worth. At
Governmental Investigations
The Company has had several discussions with the U.S. Attorney for the
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 | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||
INCOME STATEMENT | |||||||||||||||||
Total revenue |
$ |
188,323 |
$ | 405,417 | $ | 420,687 | $ | 906,071 | |||||||||
Home construction and land sales expenses | 167,898 | 379,424 | 373,744 | 815,740 | |||||||||||||
Inventory impairments and option contract abandonments | 51,755 | 187,860 | 64,464 | 356,372 | |||||||||||||
Gross loss | (31,330 | ) | (161,867 | ) | (17,521 | ) | (266,041 | ) | |||||||||
Selling, general and administrative expenses | 67,030 | 74,017 | 123,239 | 162,179 | |||||||||||||
Depreciation & amortization | 4,339 | 6,226 | 8,122 | 12,204 | |||||||||||||
Goodwill impairment | - | 48,105 | 16,143 | 48,105 | |||||||||||||
Operating loss | (102,699 | ) | (290,215 | ) | (165,025 | ) | (488,529 | ) | |||||||||
Equity in loss of unconsolidated joint ventures | (8,341 | ) | (40,361 | ) | (9,754 | ) | (56,501 | ) | |||||||||
Other expense, net | (15,735 | ) | (4,569 | ) | (34,014 | ) | (7,418 | ) | |||||||||
Loss from continuing operations before income taxes | (126,775 | ) | (335,145 | ) | (208,793 | ) | (552,448 | ) | |||||||||
Benefit from income taxes | (12,008 | ) | (106,422 | ) | (13,971 | ) | (186,064 | ) | |||||||||
Loss from continuing operations | $ | (114,767 | ) | $ | (228,723 | ) | $ | (194,822 | ) | $ | (366,384 | ) | |||||
Loss from discontinued operations, net of tax | $ | (156 | ) | $ | (1,170 | ) | $ | (376 | ) | $ | (1,745 | ) | |||||
Net loss | $ | (114,923 | ) | $ | (229,893 | ) | $ | (195,198 | ) | $ | (368,129 | ) | |||||
Loss per common share from continuing operations: | |||||||||||||||||
Basic | $ | (2.97 | ) | $ | (5.93 | ) | $ | (5.04 | ) | $ | (9.50 | ) | |||||
Diluted | $ | (2.97 | ) | $ | (5.93 | ) | $ | (5.04 | ) | $ | (9.50 | ) | |||||
Loss per common share from discontinued operations: | |||||||||||||||||
Basic | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.05 | ) | |||||
Diluted | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | (0.05 | ) | |||||
Loss per common share: | |||||||||||||||||
Basic | $ | (2.97 | ) | $ | (5.96 | ) | $ | (5.05 | ) | $ | (9.55 | ) | |||||
Diluted | $ | (2.97 | ) | $ | (5.96 | ) | $ | (5.05 | ) | $ | (9.55 | ) | |||||
Weighted average shares outstanding, in thousands: | |||||||||||||||||
Basic | 38,662 | 38,548 | 38,627 | 38,548 | |||||||||||||
Diluted | 38,662 | 38,548 | 38,627 | 38,548 |
BEAZER HOMES USA, INC. | |||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(in thousands, except per share amounts) | |||||||||
CONSOLIDATED BALANCE SHEETS | March 31, | September 30, | |||||||
2009 | 2008 | ||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 559,527 | $ | 584,335 | |||||
Restricted cash | 11,530 | 297 | |||||||
Accounts receivable, net | 29,042 | 46,555 | |||||||
Income tax receivable | 12,124 | 173,500 | |||||||
Inventory | |||||||||
Owned inventory | 1,431,122 | 1,545,006 | |||||||
Consolidated inventory not owned | 53,046 | 106,655 | |||||||
Total inventory | 1,484,168 | 1,651,661 | |||||||
Investments in unconsolidated joint ventures | 31,606 | 33,065 | |||||||
Deferred tax assets, net | 31,336 | 20,216 | |||||||
Property, plant and equipment, net | 33,067 | 39,822 | |||||||
Goodwill | - | 16,143 | |||||||
Other assets | 54,169 | 76,206 | |||||||
Total assets | $ | 2,246,569 | $ | 2,641,799 | |||||
Liabilities and Stockholders' Equity | |||||||||
Trade accounts payable | $ | 41,188 | $ | 90,371 | |||||
Other liabilities | 275,789 | 358,592 | |||||||
Obligations related to consolidated inventory not owned | 31,640 | 70,608 | |||||||
Senior Notes (net of discounts of $2,331 and $2,565, respectively) | 1,522,669 | 1,522,435 | |||||||
Junior subordinated notes | 103,093 | 103,093 | |||||||
Other secured notes payable | 34,087 | 50,618 | |||||||
Model home financing obligations | 52,532 | 71,231 | |||||||
Total liabilities | 2,060,998 | 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, 42,604,057 and 42,612,801 issued and | |||||||||
39,248,956 and 39,270,038 outstanding, respectively) | 43 | 43 | |||||||
Paid-in capital | 562,847 | 556,910 | |||||||
Retained earnings (accumulated deficit) | (193,353 | ) | 1,845 | ||||||
Treasury stock, at cost (3,355,101 and 3,342,763 shares, respectively) | (183,966 | ) | (183,947 | ) | |||||
Total stockholders' equity | 185,571 | 374,851 | |||||||
Total liabilities and stockholders' equity | $ | 2,246,569 | $ | 2,641,799 | |||||
Inventory Breakdown | |||||||||
Homes under construction | $ | 264,200 | $ | 338,971 | |||||
Development projects in progress | 594,896 | 618,252 | |||||||
Land held for future development | 420,322 | 407,320 | |||||||
Land held for sale | 72,883 | 85,736 | |||||||
Model homes | 78,821 | 94,727 | |||||||
Consolidated inventory not owned | 53,046 | 106,655 | |||||||
$ | 1,484,168 | $ | 1,651,661 |
BEAZER HOMES USA, INC. | |||||||||||
CONSOLIDATED OPERATING AND FINANCIAL DATA - CONTINUING OPERATIONS | |||||||||||
(Dollars in thousands) | |||||||||||
OPERATING DATA | |||||||||||
Quarter Ended | Six Months Ended | ||||||||||
March 31, | March 31, | ||||||||||
SELECTED OPERATING DATA | 2009 | 2008 | 2009 | 2008 | |||||||
Closings: | |||||||||||
West region | 339 | 536 | 778 | 1,140 | |||||||
East region | 274 | 481 | 545 | 1,156 | |||||||
Southeast region | 194 | 302 | 374 | 756 | |||||||
Other homebuilding | 7 | 249 | 55 | 522 | |||||||
Total closings | 814 | 1,568 | 1,752 | 3,574 | |||||||
New orders, net of cancellations: | |||||||||||
West region | 511 | 791 | 764 | 1,246 | |||||||
East region | 438 | 556 | 639 | 869 | |||||||
Southeast region | 175 | 398 | 254 | 684 | |||||||
Other homebuilding | 5 | 211 | 17 | 409 | |||||||
Total new orders | 1,129 | 1,956 | 1,674 | 3,208 | |||||||
Backlog units at end of period: | |||||||||||
West region | 513 | 911 | |||||||||
East region | 579 | 1,030 | |||||||||
Southeast region | 186 | 418 | |||||||||
Other homebuilding | 2 | 260 | |||||||||
Total backlog units | 1,280 | 2,619 | |||||||||
Dollar value of backlog at end of period | $ | 296,626 | $ | 672,464 |
BEAZER HOMES USA, INC. | |||||||||||||||||
CONSOLIDATED OPERATING AND FINANCIAL DATA - CONTINUING OPERATIONS | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues | |||||||||||||||||
Homebuilding operations | $ | 187,457 | $ | 400,656 | $ | 417,868 |
$ |
892,443 |
|||||||||
Land and lot sales | 554 | 4,004 | 2,019 | 11,569 | |||||||||||||
Financial Services | 312 | 757 | 800 | 2,059 | |||||||||||||
Total revenues | $ | 188,323 | $ | 405,417 | $ | 420,687 | $ | 906,071 | |||||||||
Gross profit (loss) | |||||||||||||||||
Homebuilding operations | $ | (31,398 | ) | (159,305 | ) | $ | (18,290 | ) | (267,060 | ) | |||||||
Land and lot sales | (244 | ) | (3,319 | ) | (31 | ) | (1,040 | ) | |||||||||
Financial Services | 312 | 757 | 800 | 2,059 | |||||||||||||
Total gross loss | $ | (31,330 | ) | $ | (161,867 | ) | $ | (17,521 | ) | $ | (266,041 | ) | |||||
Selling, general and administrative | |||||||||||||||||
Homebuilding operations | $ | 66,787 | $ | 73,456 | $ | 122,504 | $ | 160,943 | |||||||||
Financial Services | 243 | 561 | 735 | 1,236 | |||||||||||||
Total selling, general and administrative | $ | 67,030 | $ | 74,017 | $ | 123,239 | $ | 162,179 | |||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||
Revenue: | |||||||||||||||||
West region | $ | 73,683 | $ | 138,862 | $ | 177,100 | $ | 292,456 | |||||||||
East region | 71,795 | 138,419 | 144,986 | 311,266 | |||||||||||||
Southeast region | 40,834 | 73,609 | 81,907 | 181,387 | |||||||||||||
Other homebuilding | 1,699 | 53,770 | 15,894 | 118,903 | |||||||||||||
Financial services | 312 | 757 | 800 | 2,059 | |||||||||||||
Total revenue | $ | 188,323 | $ | 405,417 | $ | 420,687 | $ | 906,071 | |||||||||
Operating (loss) income | |||||||||||||||||
West region | $ | (20,434 | ) | $ | (52,227 | ) | $ | (26,680 | ) | $ | (102,978 | ) | |||||
East region | (10,413 | ) | (37,393 | ) | (13,837 | ) | (59,394 | ) | |||||||||
Southeast region | (14,724 | ) | (46,625 | ) | (16,669 | ) | (74,146 | ) | |||||||||
Other homebuilding | (9,933 | ) | (45,850 | ) | (10,799 | ) | (90,467 | ) | |||||||||
Financial services | 68 | 190 | 56 | 810 | |||||||||||||
Segment operating loss | (55,436 | ) | (181,905 | ) | (67,929 | ) | (326,175 | ) | |||||||||
Corporate and unallocated | (47,263 | ) | (108,310 | ) | (97,096 | ) | (162,354 | ) | |||||||||
Total operating loss | $ | (102,699 | ) | $ | (290,215 | ) | $ | (165,025 | ) | $ | (488,529 | ) |
Source:
Beazer Homes USA, Inc.
Leslie H. Kratcoski, 770-829-3700
Vice
President,
Investor Relations & Corporate Communications
lkratcos@beazer.com