ATLANTA, Jan. 25 /PRNewswire/ -- Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com ) today announced results for the quarter ended December 31, 1999, the first quarter of its 2000 fiscal year. Highlights of the quarter, compared to the same period of the prior year, are as follows:

* Diluted EPS: $.85 (up 60% vs. $.53 in prior year's December quarter)

* Home closings: 1,611 (up 15%); total revenues $309 million (up 28%)

* Earnings before interest, taxes, depreciation and amortization (EBITDA) $19.6 million (up 44%)

* EBITDA Margin: 6.4% (up 80 basis points)

* Net income: $7.5 million (up 61%)

* New orders: 1,505 (up 12%)

* Dollar Backlog: $472 million (up 1%)

Record First Quarter Results

Ian McCarthy, President and Chief Executive Officer of Beazer Homes, said, "We are extremely pleased to report record results for the first quarter of our 2000 fiscal year. Closings, net income, new orders and dollar backlog were all December quarter Company records."

Mr. McCarthy continued, "Our earnings per share were up 60% on a 15% increase in homes closed, reflecting both a higher average sales price and our improved profit margin. We are particularly proud of the 80 basis point improvement in our EBITDA margin, driven by a 60 basis point reduction in selling, general and administrative expenses as a percentage of revenues during the quarter. This improvement demonstrates the operating efficiency gains that we have achieved over the past year. We expect to report reductions in SG&A as a percentage of revenues throughout fiscal 2000."

Record December Quarter New Orders, Despite Delays in Opening New Subdivisions

Mr. McCarthy also said, "We are pleased to report a 12% increase in new orders during the quarter despite a decline in our number of active subdivisions at December 31. New orders of 1,505 homes represent a December quarter Company record. The increase in new orders reflects the continued strength of the homebuilding market in many of the areas we serve, especially California, Texas and the Mid-Atlantic. The US homebuilding market remains strong despite recent increases in interest rates. This strength reflects the positive impact of demographics, particularly population growth driven by immigration, that we believe will continue to fuel the homebuilding market over the coming decade."

Mr. McCarthy continued, "The decrease in our number of active subdivisions at December 31, 1999 resulted from delays in opening new subdivisions. These delays have been caused by the lengthening time needed to get permits and approvals in many areas. During the March 2000 quarter, however, we anticipate opening a number of new subdivisions just in time for the traditional home selling season and we expect our subdivision count to increase during the quarter ending March 31, 2000."

Beazer Buys Back Shares At A Discount To Book Value

The Company also announced that it has repurchased 182,150 shares of its common stock at an average price of $18.89 per share. These repurchases were made pursuant to the Company's plan, that it announced in November 1999, to repurchase up to 500,000 shares of its common stock.

David S. Weiss, Executive Vice President and Chief Financial Officer of Beazer Homes, said, "Our repurchases of common stock during the quarter were made at a 30% discount to book value of $27.12 per share at December 31, 1999 and at 4.2 times our last twelve months' earnings of $4.47 per share. At these levels, we believe that our stock is significantly undervalued and represents an excellent investment opportunity."

Mr. Weiss also said, "Even with the repurchases of our common stock, we continue to maintain one of the strongest balance sheets in the homebuilding industry. We have reduced our debt by $11 million and our debt to total capitalization ratio from 58% to 53%, since last year's December quarter."

Our Future In Black And White

Mr. McCarthy said, "In our recently issued 1999 Annual Report, 'Our Future In Black and White', we describe our optimism for the future of both Beazer Homes and the homebuilding industry. The US homebuilding market continues to drive forward, fueled by a healthy economy and strong demographics. We expect the number of US households to continue to increase dramatically over the coming decade. With our strong position in the growth markets of the US and our aggressive e-business initiatives, led by beazer.com, we believe that we are uniquely qualified to take advantage of that growth."

Mr. McCarthy concluded, "Americans' number one dream continues to be 'Own my own home' and Beazer is well positioned to make the home-owning dream of these millions come true."

Beazer Homes USA, Inc., based in Atlanta, Georgia, is one of the country's ten largest single-family homebuilders with operations in Arizona, California, Florida, Georgia, Maryland, Nevada, New Jersey, North Carolina, South Carolina, Tennessee, Texas and Virginia.

Note: Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation 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, 1999.

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

    FINANCIAL DATA
                                           Quarter Ended
                                            December 31,
                                     1999                    1998
    INCOME STATEMENT
    Revenues                     $308,745                $242,110
    Costs and expenses:
       Home construction and
        land sales                255,748                 201,167
       Interest                     5,523                   5,035
       Selling, general and
        administrative expense     34,273                  28,246
    Operating income               13,201                   7,662
    Other income (expense)           (878)                    (48)

    Income before income taxes     12,323                   7,614
    Income taxes                    4,806                   2,931
    Net income                     $7,517                  $4,683

    Dividends and other payments
     to preferred shareholders       $---                  $1,000
    Net income to common
     shareholders:
       Basic                       $7,517                  $3,683
       Diluted                     $7,517                  $4,683

    Net income per share:
       Basic                        $0.88                   $0.62
       Diluted                      $0.85                   $0.53

    Weighted average shares
     outstanding, in thousands:
       Basic                        8,530                   5,896
       Diluted                      8,825                   8,868

    Interest incurred              $6,631                  $5,939
    Depreciation and amortization  $1,763                  $1,008


    SELECTED BALANCE SHEET DATA             December 31,
                                     1999                    1998
    Inventory                    $575,700                $540,233
    Total assets                  628,075                 589,405
    Total debt                    273,500                 285,000
    Stockholders' equity          239,375                 203,129



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

    OPERATING DATA

                                           Quarter Ended
                                            December 31,
    SELECTED OPERATING DATA          1999                    1998
    Closings:
       Southeast region               551                     535
       Southwest region               685                     595
       Central region                 122                     136
       Mid-Atlantic region            253                     130
    Total closings                  1,611                   1,396
    New orders, net of
     cancellations (A):
       Southeast region               537                     597
       Southwest region               620                     610
       Central region                  88                      78
       Mid-Atlantic region            260                      64
    Total new orders                1,505                   1,349
    Backlog at end of period        2,452                   2,565
    Dollar value of backlog at
     end of period               $471,856                $468,780
    Active subdivisions:
       Southeast region               111                     113
       Southwest region                59                      61
       Central region                  30                      30
       Mid-Atlantic region             42                      46
    Total active subdivisions         242                     250


                                           Quarter Ended
                                            December 31,
    SUPPLEMENTAL FINANCIAL DATA:     1999                    1998

    Revenues
       Home sales                $303,584                $239,797
       Land and lot sales           3,305                     639
       Mortgage origination revenue 3,107                   2,536
       Intercompany elimination
        - mortgage                 (1,251)                   (862)
    Total revenues               $308,745                $242,110
    Cost of home construction
     and land sales
       Home sales                $253,849                $201,575
       Land and lot sales           3,150                     454
       Intercompany elimination
        - mortgage                 (1,251)                   (862)
    Total costs of home
     construction and land sales $255,748                $201,167
    Selling, general and
     administrative
       Homebuilding operations    $32,117                 $26,512
       Mortgage origination
        operations                  2,156                   1,734
    Total selling, general and
     administrative               $34,273                 $28,246

    (A)  New orders for the quarter ended December 31, 1998 does not
         include 555 homes in backlog acquired in a business acquisition.