Beazer Homes Reports Strong Fourth Quarter and Full Fiscal 2019 Results
“We finished fiscal 2019 with a strong fourth quarter, positioning us for growth in revenue, profitability and returns in the coming year,” said
“Looking forward, we believe these operational and capital structure improvements will accelerate our progress toward our multi-year balanced growth objectives, which include achieving double digit returns on our assets and reducing debt below
Beazer Homes Fiscal Fourth Quarter 2019 Highlights and Comparison to Fiscal Fourth Quarter 2018
-
Net income from continuing operations of
$2.5 million , compared to net income from continuing operations of$60.5 million in fiscal fourth quarter 2018 -
Adjusted EBITDA of
$82.1 million , down 8.9% -
Homebuilding revenue of
$733.0 million , up 1.5% on a 1.5% decrease in home closings to 2,014 and a 3.0% increase in average selling price to$383.8 thousand - Homebuilding gross margin, excluding impairments and abandonments, was 15.2%, down 210 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 19.9%, down 170 basis points
- SG&A as a percentage of total revenue was 9.5%, down 60 basis points year over year
- Unit orders of 1,458, up 11.7% on a 3.7% increase in average community count to 168 and a 7.7% increase in sales/community/month to 2.9
-
Dollar value of backlog of
$665.1 million , up 5.9% -
Unrestricted cash at quarter end was
$106.7 million ; total liquidity was$356.7 million
-
Net loss from continuing operations of
$79.4 million . Excluding inventory impairments and abandonments, and loss on debt extinguishment, the Company generated net income from continuing operations of$38.7 million -
Adjusted EBITDA of
$180.2 million , down 12.0% -
Homebuilding revenue of
$2.1 billion , flat year over year - 5,500 new home deliveries, down 4.6%
-
Average selling price of
$377.7 thousand , up 4.8% - Homebuilding gross margin, excluding impairments and abandonments, was 15.2%, down 160 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 19.7%, down 150 basis points
- SG&A as a percentage of total revenue was 11.6%, down 20 basis points
- Unit orders of 5,576, up 0.6% on a 6.3% increase in average community count to 166 and a 5.4% decrease in sales/community/month to 2.8
The following provides additional details on the Company's performance during the fiscal fourth quarter 2019:
Orders. Net new orders for the fourth quarter increased 11.7% from the prior year, to 1,458, exceeding our expectations as a result of healthy demand. The increase in net new orders was driven by a 3.7% increase in average community count to 168. The cancellation rate for the quarter was 16.3%, down 520 basis points from the previous year.
Backlog. The dollar value of homes in backlog as of
Homebuilding Revenue. Fourth quarter homebuilding revenue was
Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 19.9% for the fourth quarter, ahead of our expectations by about half a point and down 170 basis points from the same period in fiscal 2018. The decline in year-over-year gross margin is attributed to the softening of demand for new homes in many of our markets during the first half of FY 2019.
SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue, were 9.5% for the quarter, down 60 basis points compared to the prior year. On an absolute dollar basis, SG&A was down
Profitability. Net income from continuing operations was
Liquidity. At the close of the fourth quarter, the Company had
Share and Debt Repurchases. The Company retired
Changes in Capital Structure. In
Gatherings
The final quarter of fiscal 2019 represented another step forward for our Gatherings business. Fiscal year-over-year, Gatherings experienced an increase in sales in both actively selling communities located in
Merrill Appointed Chairman; Provencio Appointed Lead Director
As the Company announced in August,
“Allan’s and Norma’s appointments are part of a comprehensive, long-term succession plan that helps ensure the Board continues to have the broad expertise and perspective needed to govern our business and constructively engage with senior management and stakeholders,” said Mr. Zelnak. “We believe Allan and Norma are the right people to lead the next phase of the Company’s balanced growth strategy - they are extraordinary and capable leaders who have the experience, qualities, and skills necessary for their important new roles, and I wish them all the best in the years ahead.”
Summary results for the three and twelve months ended
Q4 Results from Continuing Operations
|
Quarter Ended September 30, |
||||||||||
|
2019 |
|
2018 |
|
Change* |
||||||
New home orders, net of cancellations |
1,458 |
|
|
1,305 |
|
|
11.7 |
% |
|||
Orders per community per month |
2.9 |
|
|
2.7 |
|
|
7.7 |
% |
|||
Average active community count |
168 |
|
|
162 |
|
|
3.7 |
% |
|||
Actual community count at quarter-end |
166 |
|
|
160 |
|
|
3.8 |
% |
|||
Cancellation rates |
16.3 |
% |
|
21.5 |
% |
|
-520 bps |
||||
|
|
|
|
|
|
||||||
Total home closings |
2,014 |
|
|
2,044 |
|
|
(1.5 |
)% |
|||
Average selling price (ASP) from closings (in thousands) |
$ |
383.8 |
|
|
$ |
372.6 |
|
|
3.0 |
% |
|
Homebuilding revenue (in millions) |
$ |
773.0 |
|
|
$ |
761.5 |
|
|
1.5 |
% |
|
Homebuilding gross margin |
15.2 |
% |
|
17.2 |
% |
|
-200 bps |
||||
Homebuilding gross margin, excluding impairments and abandonments (I&A) |
15.2 |
% |
|
17.3 |
% |
|
-210 bps |
||||
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
19.9 |
% |
|
21.6 |
% |
|
-170 bps |
||||
|
|
|
|
|
|
||||||
Income from continuing operations before income taxes (in millions) |
$ |
9.5 |
|
|
$ |
41.6 |
|
|
$ |
(32.1 |
) |
Expense (benefit) from income taxes (in millions) |
$ |
7.0 |
|
|
$ |
(18.9 |
) |
|
$ |
25.9 |
|
Net income from continuing operations (in millions) |
$ |
2.5 |
|
|
$ |
60.5 |
|
|
$ |
(58.0 |
) |
Basic income per share from continuing operations |
$ |
0.08 |
|
|
$ |
1.88 |
|
|
$ |
(1.80 |
) |
Diluted income per share from continuing operations |
$ |
0.08 |
|
|
$ |
1.83 |
|
|
$ |
(1.75 |
) |
|
|
|
|
|
|
||||||
Loss on debt extinguishment (in millions) |
$ |
25.5 |
|
|
$ |
1.9 |
|
|
$ |
23.6 |
|
|
|
|
|
|
|
||||||
Net income |
$ |
2.4 |
|
|
$ |
60.6 |
|
|
$ |
(58.2 |
) |
|
|
|
|
|
|
||||||
Land and land development spending (in millions) |
$ |
106.3 |
|
|
$ |
194.8 |
|
|
$ |
(88.6 |
) |
|
|
|
|
|
|
||||||
Adjusted EBITDA (in millions) |
$ |
82.1 |
|
|
$ |
90.1 |
|
|
$ |
(8.0 |
) |
* Change and totals are calculated using unrounded numbers. |
Fiscal Year Results from Continuing Operations
|
Year Ended September 30, |
||||||||||
|
2019 |
|
2018 |
|
Change* |
||||||
New home orders, net of cancellations |
5,576 |
|
|
5,544 |
|
|
0.6 |
% |
|||
Orders per community per month |
2.8 |
|
|
3.0 |
|
|
(5.4 |
)% |
|||
Average active community count |
166 |
|
|
156 |
|
|
6.3 |
% |
|||
Cancellation rates |
16.1 |
% |
|
18.3 |
% |
|
-220 bps |
||||
|
|
|
|
|
|
||||||
Total home closings |
5,500 |
|
|
5,767 |
|
|
(4.6 |
)% |
|||
ASP from closings (in thousands) |
$ |
377.7 |
|
|
$ |
360.2 |
|
|
4.8 |
% |
|
Homebuilding revenue (in millions) |
$ |
2,077.2 |
|
|
$ |
2,077.4 |
|
|
— |
% |
|
Homebuilding gross margin |
9.9 |
% |
|
16.8 |
% |
|
-690 bps |
||||
Homebuilding gross margin, excluding I&A |
15.2 |
% |
|
16.8 |
% |
|
-160 bps |
||||
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
19.7 |
% |
|
21.2 |
% |
|
-150 bps |
||||
|
|
|
|
|
|
||||||
(Loss) income from continuing operations before income taxes (in millions) |
$ |
(116.6 |
) |
|
$ |
49.4 |
|
|
$ |
(166.1 |
) |
(Benefit) expense from income taxes (in millions) |
$ |
(37.2 |
) |
|
$ |
94.5 |
|
|
$ |
(131.7 |
) |
Net loss from continuing operations (in millions) |
$ |
(79.4 |
) |
|
$ |
(45.0 |
) |
|
$ |
(34.4 |
) |
Basic and diluted loss per share from continuing operations |
$ |
(2.59 |
) |
|
$ |
(1.40 |
) |
|
$ |
(1.19 |
) |
|
|
|
|
|
|
||||||
(Loss) income from continuing operations before income taxes (in millions) |
$ |
(116.6 |
) |
|
$ |
49.4 |
|
|
$ |
(166.1 |
) |
Loss on debt extinguishment (in millions) |
$ |
24.9 |
|
|
$ |
27.8 |
|
|
$ |
(2.9 |
) |
Inventory impairments and abandonments (in millions) |
$ |
148.6 |
|
|
$ |
6.5 |
|
|
$ |
142.1 |
|
Income from continuing operations excluding loss on debt extinguishment and inventory impairments and abandonments before income taxes (in millions) |
$ |
56.9 |
|
|
$ |
83.7 |
|
|
$ |
(26.8 |
) |
Net income from continuing operations excluding loss on debt extinguishment, inventory impairments and abandonments, and one-time tax items (in millions)+ |
$ |
38.7 |
|
|
$ |
63.8 |
|
|
$ |
(25.1 |
) |
|
|
|
|
|
|
||||||
Net loss |
$ |
(79.5 |
) |
|
$ |
(45.4 |
) |
|
$ |
(34.1 |
) |
|
|
|
|
|
|
||||||
Land and land development spending (in millions) |
$ |
469.9 |
|
|
$ |
635.5 |
|
|
$ |
(165.6 |
) |
|
|
|
|
|
|
||||||
Adjusted EBITDA (in millions) |
$ |
180.2 |
|
|
$ |
204.7 |
|
|
$ |
(24.5 |
) |
* Change and totals are calculated using unrounded numbers. |
+ |
For the year ended September 30, 2019, loss on debt extinguishment and inventory impairments and abandonments were tax-effected at the tax rate of 31.9%. For the year ended September 30, 2018, loss on debt extinguishment and inventory impairments and abandonments were tax-effected at the effective tax rate of 23.8%, which excludes the impact of remeasurement of our deferred tax assets as a result of the enactment of the Tax Cut and Jobs Act in December 2017 and the release of portions of the valuation allowance on our deferred tax assets. |
|
As of September 30, |
|||||||||
|
2019 |
|
2018 |
|
Change |
|||||
Backlog units |
1,708 |
|
|
1,632 |
|
|
4.7 |
% |
||
Dollar value of backlog (in millions) |
$ |
665.1 |
|
|
$ |
628.0 |
|
|
5.9 |
% |
ASP in backlog (in thousands) |
$ |
389.4 |
|
|
$ |
384.8 |
|
|
1.2 |
% |
Land and lots controlled |
19,875 |
|
|
24,188 |
|
|
(17.8 |
)% |
Conference Call
The Company will hold a conference call on
Headquartered in
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 cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (ii) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market; (iii) shortages of or increased prices for labor, land or raw materials used in housing production, and the level of quality and craftsmanship provided by our subcontractors; (iv) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select
Any forward-looking statement speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made 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.
-Tables Follow-
BEAZER HOMES USA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
in thousands (except per share data) |
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Total revenue |
$ |
781,701 |
|
|
$ |
767,945 |
|
|
$ |
2,087,739 |
|
|
$ |
2,107,133 |
|
Home construction and land sales expenses |
665,404 |
|
|
635,749 |
|
|
1,773,085 |
|
|
1,755,619 |
|
||||
Inventory impairments and abandonments |
— |
|
|
6,331 |
|
|
148,618 |
|
|
6,499 |
|
||||
Gross profit |
116,297 |
|
|
125,865 |
|
|
166,036 |
|
|
345,015 |
|
||||
Commissions |
29,837 |
|
|
29,777 |
|
|
79,802 |
|
|
81,002 |
|
||||
General and administrative expenses |
44,608 |
|
|
48,048 |
|
|
161,371 |
|
|
168,658 |
|
||||
Depreciation and amortization |
5,847 |
|
|
4,578 |
|
|
14,759 |
|
|
13,807 |
|
||||
Operating income (loss) |
36,005 |
|
|
43,462 |
|
|
(89,896 |
) |
|
81,548 |
|
||||
Equity in income (loss) of unconsolidated entities |
88 |
|
|
(268 |
) |
|
404 |
|
|
34 |
|
||||
Loss on extinguishment of debt, net |
(25,494 |
) |
|
(1,935 |
) |
|
(24,920 |
) |
|
(27,839 |
) |
||||
Other (income) expense, net |
(1,092 |
) |
|
323 |
|
|
(2,226 |
) |
|
(4,305 |
) |
||||
Income (loss) from continuing operations before income taxes |
9,507 |
|
|
41,582 |
|
|
(116,638 |
) |
|
49,438 |
|
||||
Expense (benefit) from income taxes |
7,043 |
|
|
(18,902 |
) |
|
(37,217 |
) |
|
94,484 |
|
||||
Income (loss) from continuing operations |
2,464 |
|
|
60,484 |
|
|
(79,421 |
) |
|
(45,046 |
) |
||||
(Loss) income from discontinued operations, net of tax |
(35 |
) |
|
121 |
|
|
(99 |
) |
|
(329 |
) |
||||
Net income (loss) |
$ |
2,429 |
|
|
$ |
60,605 |
|
|
$ |
(79,520 |
) |
|
$ |
(45,375 |
) |
Weighted-average number of shares: |
|
|
|
|
|
|
|
||||||||
Basic |
29,545 |
|
|
32,221 |
|
|
30,617 |
|
|
32,141 |
|
||||
Diluted |
30,169 |
|
|
33,002 |
|
|
30,617 |
|
|
32,141 |
|
||||
Basic income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.08 |
|
|
$ |
1.88 |
|
|
$ |
(2.59 |
) |
|
$ |
(1.40 |
) |
Discontinued operations |
— |
|
|
— |
|
|
(0.01 |
) |
|
(0.01 |
) |
||||
Total |
$ |
0.08 |
|
|
$ |
1.88 |
|
|
$ |
(2.60 |
) |
|
$ |
(1.41 |
) |
Diluted income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Continuing operations |
$ |
0.08 |
|
|
$ |
1.83 |
|
|
$ |
(2.59 |
) |
|
$ |
(1.40 |
) |
Discontinued operations |
— |
|
|
0.01 |
|
|
(0.01 |
) |
|
(0.01 |
) |
||||
Total |
$ |
0.08 |
|
|
$ |
1.84 |
|
|
$ |
(2.60 |
) |
|
$ |
(1.41 |
) |
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
Capitalized Interest in Inventory |
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Capitalized interest in inventory, beginning of period |
$ |
148,825 |
|
|
$ |
152,182 |
|
|
$ |
144,645 |
|
|
$ |
139,203 |
|
Interest incurred |
26,464 |
|
|
27,030 |
|
|
103,970 |
|
|
103,880 |
|
||||
Capitalized interest impaired |
— |
|
|
(1,961 |
) |
|
(13,907 |
) |
|
(1,961 |
) |
||||
Interest expense not qualified for capitalization and included as other expense |
(1,309 |
) |
|
(35 |
) |
|
(3,109 |
) |
|
(5,325 |
) |
||||
Capitalized interest amortized to home construction and land sales expenses |
(37,415 |
) |
|
(32,571 |
) |
|
(95,034 |
) |
|
(91,152 |
) |
||||
Capitalized interest in inventory, end of period |
$ |
136,565 |
|
|
$ |
144,645 |
|
|
$ |
136,565 |
|
|
$ |
144,645 |
|
BEAZER HOMES USA, INC. CONSOLIDATED BALANCE SHEETS |
|||||||
in thousands (except share and per share data) |
September 30, 2019 |
|
September 30, 2018 |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
106,741 |
|
|
$ |
139,805 |
|
Restricted cash |
16,053 |
|
|
13,443 |
|
||
Accounts receivable (net of allowance of $304 and $378, respectively) |
26,395 |
|
|
24,647 |
|
||
Income tax receivable |
4,935 |
|
|
— |
|
||
Owned inventory |
1,504,248 |
|
|
1,692,284 |
|
||
Investments in unconsolidated entities |
3,962 |
|
|
4,035 |
|
||
Deferred tax assets, net |
246,957 |
|
|
213,955 |
|
||
Property and equipment, net |
27,421 |
|
|
20,843 |
|
||
Goodwill |
11,376 |
|
|
9,751 |
|
||
Other assets |
9,556 |
|
|
9,339 |
|
||
Total assets |
$ |
1,957,644 |
|
|
$ |
2,128,102 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Trade accounts payable |
$ |
131,152 |
|
|
$ |
126,432 |
|
Other liabilities |
109,429 |
|
|
126,389 |
|
||
Total debt (net of premium of $0 and $2,640, respectively, and debt issuance costs of $12,470 and $14,336, respectively) |
1,178,309 |
|
|
1,231,254 |
|
||
Total liabilities |
1,418,890 |
|
|
1,484,075 |
|
||
Stockholders’ equity: |
|
|
|
||||
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued) |
— |
|
|
— |
|
||
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 30,933,110 issued and outstanding and 33,522,046 issued and outstanding, respectively) |
31 |
|
|
34 |
|
||
Paid-in capital |
854,275 |
|
|
880,025 |
|
||
Accumulated deficit |
(315,552 |
) |
|
(236,032 |
) |
||
Total stockholders’ equity |
538,754 |
|
|
644,027 |
|
||
Total liabilities and stockholders’ equity |
$ |
1,957,644 |
|
|
$ |
2,128,102 |
|
|
|
|
|
||||
Inventory Breakdown |
|
|
|
||||
Homes under construction |
$ |
507,542 |
|
|
$ |
476,752 |
|
Development projects in progress |
738,201 |
|
|
907,793 |
|
||
Land held for future development |
28,531 |
|
|
83,173 |
|
||
Land held for sale |
12,662 |
|
|
7,781 |
|
||
Capitalized interest |
136,565 |
|
|
144,645 |
|
||
Model homes |
80,747 |
|
|
72,140 |
|
||
Total owned inventory |
$ |
1,504,248 |
|
|
$ |
1,692,284 |
|
BEAZER HOMES USA, INC. CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS |
|||||||||||||
|
Quarter Ended September 30, |
|
Fiscal Year Ended September 30, |
||||||||||
SELECTED OPERATING DATA |
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||
Closings: |
|
|
|
|
|
|
|
||||||
West region |
978 |
|
|
1,016 |
|
|
2,859 |
|
|
2,895 |
|
||
East region |
445 |
|
|
418 |
|
|
1,092 |
|
|
1,221 |
|
||
Southeast region |
591 |
|
|
610 |
|
|
1,549 |
|
|
1,651 |
|
||
Total closings |
2,014 |
|
|
2,044 |
|
|
5,500 |
|
|
5,767 |
|
||
|
|
|
|
|
|
|
|
||||||
New orders, net of cancellations: |
|
|
|
|
|
|
|
||||||
West region |
808 |
|
|
639 |
|
|
2,983 |
|
|
2,874 |
|
||
East region |
283 |
|
|
235 |
|
|
1,152 |
|
|
1,089 |
|
||
Southeast region |
367 |
|
|
431 |
|
|
1,441 |
|
|
1,581 |
|
||
Total new orders, net |
1,458 |
|
|
1,305 |
|
|
5,576 |
|
|
5,544 |
|
||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
Fiscal Year Ended September 30, |
||||||||
Backlog units at end of period: |
|
|
|
|
2019 |
|
2018 |
||||||
West region |
|
|
|
|
982 |
|
|
858 |
|
||||
East region |
|
|
|
|
341 |
|
|
281 |
|
||||
Southeast region |
|
|
|
|
385 |
|
|
493 |
|
||||
Total backlog units |
|
|
|
|
1,708 |
|
|
1,632 |
|
||||
Dollar value of backlog at end of period (in millions) |
|
|
|
|
$ |
665.1 |
|
|
$ |
628.0 |
|
||
|
Quarter Ended September 30, |
|
Fiscal Year Ended September 30, |
||||||||||||
SUPPLEMENTAL FINANCIAL DATA |
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Homebuilding revenue: |
|
|
|
|
|
|
|
||||||||
West region |
$ |
354,880 |
|
|
$ |
357,094 |
|
|
$ |
1,012,977 |
|
|
$ |
999,599 |
|
East region |
206,939 |
|
|
192,411 |
|
|
506,389 |
|
|
510,710 |
|
||||
Southeast region |
211,183 |
|
|
212,022 |
|
|
557,879 |
|
|
567,051 |
|
||||
Total homebuilding revenue |
$ |
773,002 |
|
|
$ |
761,527 |
|
|
$ |
2,077,245 |
|
|
$ |
2,077,360 |
|
|
|
|
|
|
|
|
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Homebuilding |
$ |
773,002 |
|
|
$ |
761,527 |
|
|
$ |
2,077,245 |
|
|
$ |
2,077,360 |
|
Land sales and other |
8,699 |
|
|
6,418 |
|
|
10,494 |
|
|
29,773 |
|
||||
Total revenues |
$ |
781,701 |
|
|
$ |
767,945 |
|
|
$ |
2,087,739 |
|
|
$ |
2,107,133 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit: |
|
|
|
|
|
|
|
||||||||
Homebuilding |
$ |
117,844 |
|
|
$ |
130,634 |
|
|
$ |
206,034 |
|
|
$ |
348,275 |
|
Land sales and other |
(1,547 |
) |
|
(4,769 |
) |
|
(39,998 |
) |
|
(3,260 |
) |
||||
Total gross profit |
$ |
116,297 |
|
|
$ |
125,865 |
|
|
$ |
166,036 |
|
|
$ |
345,015 |
|
Reconciliation of homebuilding gross profit and the related gross margin before impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit and gross margin, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt.
|
Quarter Ended September 30, |
|
Fiscal Year Ended September 30, |
||||||||||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||||||
Homebuilding gross profit/margin |
$ |
117,844 |
|
15.2 |
% |
|
$ |
130,634 |
|
17.2 |
% |
|
$ |
206,034 |
|
9.9 |
% |
|
$ |
348,275 |
|
16.8 |
% |
Inventory impairments and abandonments (I&A) |
— |
|
|
|
1,005 |
|
|
|
110,029 |
|
|
|
1,005 |
|
|
||||||||
Homebuilding gross profit/margin before I&A |
117,844 |
|
15.2 |
% |
|
131,639 |
|
17.3 |
% |
|
316,063 |
|
15.2 |
% |
|
349,280 |
|
16.8 |
% |
||||
Interest amortized to cost of sales |
36,256 |
|
|
|
32,568 |
|
|
|
93,875 |
|
|
|
91,132 |
|
|
||||||||
Homebuilding gross profit/margin before I&A and interest amortized to cost of sales |
$ |
154,100 |
|
19.9 |
% |
|
$ |
164,207 |
|
21.6 |
% |
|
$ |
409,938 |
|
19.7 |
% |
|
$ |
440,412 |
|
21.2 |
% |
Reconciliation of Adjusted EBITDA to total company net income (loss), the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective capitalization, tax position and level of impairments. These EBITDA measures should not be considered alternatives to net income determined in accordance with GAAP as an indicator of operating performance.
|
Quarter Ended
|
|
Fiscal Year Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Net income (loss) |
$ |
2,429 |
|
|
$ |
60,605 |
|
|
$ |
(79,520 |
) |
|
$ |
(45,375 |
) |
Expense (benefit) from income taxes |
7,034 |
|
|
(18,860 |
) |
|
(37,245 |
) |
|
94,373 |
|
||||
Interest amortized to home construction and land sales expenses and capitalized interest impaired |
37,415 |
|
|
34,532 |
|
|
108,941 |
|
|
93,113 |
|
||||
Interest expense not qualified for capitalization |
1,309 |
|
|
35 |
|
|
3,109 |
|
|
5,325 |
|
||||
EBIT |
48,187 |
|
|
76,312 |
|
|
(4,715 |
) |
|
147,436 |
|
||||
Depreciation and amortization and stock-based compensation amortization |
8,380 |
|
|
7,144 |
|
|
25,285 |
|
|
24,065 |
|
||||
EBITDA |
56,567 |
|
|
83,456 |
|
|
20,570 |
|
|
171,501 |
|
||||
Loss on extinguishment of debt |
25,494 |
|
|
1,935 |
|
|
24,920 |
|
|
27,839 |
|
||||
Inventory impairments and abandonments |
— |
|
|
4,370 |
|
|
134,711 |
|
|
4,988 |
|
||||
Joint venture impairment and abandonment charges |
— |
|
|
341 |
|
|
— |
|
|
341 |
|
||||
Adjusted EBITDA |
$ |
82,061 |
|
|
$ |
90,102 |
|
|
$ |
180,201 |
|
|
$ |
204,669 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20191113005677/en/
Source:
Beazer Homes USA, Inc.
David I. Goldberg
Vice President of Treasury and Investor Relations
770-829-3700
investor.relations@beazer.com