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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: January 27, 2004
BEAZER HOMES USA, INC.
(Exact name of registrant as specified in its charter)
| DELAWARE (State or other jurisdiction of incorporation) |
001-12822 (Commission File Number) |
54-2086934 (IRS Employer Identification No.) |
1000 Abernathy Road, Suite 1200
Atlanta Georgia 30328
(Address of Principal Executive Offices)
(770) 829-3700
(Registrant's telephone number, including area code)
None
(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits.
- (c)
- Exhibits
- 99.1
- Press release issued January 27, 2004.
Item 12. Results of Operations and Financial Condition
On January 27, 2004, Beazer Homes USA, Inc. (the "Company") reported earnings and results of operations for the quarterly period ended December 31, 2003. A copy of this press release is attached hereto as exhibit 99.1. For additional information, please see the press release.
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BEAZER HOMES USA, INC. | ||||
Date: January 27, 2004 |
By: |
/s/ JAMES O'LEARY James O'Leary Executive Vice President and Chief Financial Officer |
||
3
SIGNATURES
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Exhibit 99.1
| PRESS RELEASE FOR IMMEDIATE RELEASE |
Beazer Homes Reports Record First Fiscal Quarter EPS of $3.41, up 24%
ATLANTA, January 27, 2004—Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced results for the quarter ended December 31, 2003, reporting record earnings for the quarter. Highlights of the quarter, compared to the same period of the prior year, are as follows:
Quarter Ended December 31, 2003
- •
- Record diluted EPS: $3.41 (up 24% vs. $2.75 in prior year)
- •
- Home
closings: 3,608 (up 4%)
- •
- Total
revenues: $810.1 million (up 16%)
- •
- Gross
Profit: $165.2 million (up 21%)
- •
- Gross
margin: 20.4% (up 90 basis points)
- •
- Operating
Income: $75.7 million (up 28%)
- •
- Operating
Income margin: 9.3% (up 90 basis points)
- •
- Net
income: $47.2 million (up 28%)
- •
- New
orders: 3,304 (up 5%)
- •
- Backlog
at 12/31/03: 7,122 homes (up 15%), sales value $1.65 billion (up 34%)
- •
- Active Subdivisions at 12/31/03: 506 (up 8%)
Record Earnings for December Quarter
"We are pleased to announce strong financial results for our first quarter of fiscal 2004," said President and Chief Executive Officer Ian J. McCarthy. "Our home closings, revenues and new orders were all December quarter records, indicating continued strength in the housing industry and Beazer Homes' position in the market. This was accompanied by record earnings for the quarter, illustrating our ongoing commitment to achieving profitable growth by leveraging our size, scale and geographic reach, and continuing to execute specific growth and profitability initiatives."
"Beazer Homes' backlog now stands at 7,122 homes with a sales value of $1.65 billion, up 15% and 34%, respectively, from the backlog homes and sales value at December 31, 2002. This sizable backlog increase provides excellent visibility as we move forward in fiscal 2004," added McCarthy.
Strong Financial Position; Profit Margin Expansion in December Quarter
"Beazer Homes' financial position remained strong during the first fiscal quarter," said James O'Leary, Executive Vice President and Chief Financial Officer. "At December 31, 2003, debt to total capitalization and net debt to total capitalization stood at 48% and 45%, respectively, with a cash balance of $102.2 million. Furthermore, we achieved continued profit margin improvement as we continue to execute on our profit improvement initiatives."
During the first fiscal quarter of 2004, the Company increased both its gross margin and operating margin by 90 basis points compared to the same period a year ago, inclusive of increased marketing expenses associated with the Company's initiative to strengthen and leverage its brand identity. This improvement reflects continued strong industry fundamentals and continued emphasis on improved profitability. These gains were achieved despite weaker performance in the Company's Midwest operations and the inclusion of additional warranty expenses associated with construction defect claims from water intrusion at one of its Midwest divisions. The Company intends to focus efforts on improving performance in the Midwest operations and is commencing a strategic and financial review of these operations to develop an improvement plan. At this time the elements and any related costs or financial impact of such improvement plan can not be determined or estimated.
Beazer Homes Reiterates Target EPS Growth of 10-15% in Fiscal 2004
"Our strong backlog coupled with our expectations of continued strength in the housing market provide us confidence in our future growth opportunities," said McCarthy. "In addition, we expect continued execution on our strategic initiatives that leverage our national brand, capitalize on our broad geographic profile through focused product expansion and price-point diversification, and drive best practices to achieve optimal efficiencies, will place us in a strong position for continued growth. As such, we reiterate our expectation of generating diluted earnings per share in the range of $14.00 - $14.75 in fiscal 2004, representing approximately 10-15% growth over fiscal 2003."
Beazer Homes USA, Inc., headquartered in Atlanta 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.
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, the possibility that the Company's improvement plan for the Midwest will not achieve desired results, and other factors described in the Company's Annual Report and Form 10-K for the year ended September 30, 2003.
| Contact: | Leslie H. Kratcoski Director, Investor Relations (770) 829-3764 lkratcos@beazer.com |
-Tables Follow-
DRAFT
BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA
(Dollars in thousands, except per share amounts)
FINANCIAL DATA
| |
Quarter Ended December 31, |
||||||
|---|---|---|---|---|---|---|---|
| |
2003 |
2002 |
|||||
| INCOME STATEMENT | |||||||
| Revenues | $ | 810,108 | $ | 700,160 | |||
| Costs and expenses: | |||||||
| Home construction and land sales | 644,949 | 563,717 | |||||
| Selling, general and administrative expense | 89,507 | 77,377 | |||||
| Operating income | 75,652 | 59,066 | |||||
| Other income | 1,702 | 1,959 | |||||
| Income before income taxes and extraordinary item | 77,354 | 61,025 | |||||
| Income taxes | 30,168 | 24,105 | |||||
| Net income | $ | 47,186 | $ | 36,920 | |||
| Net income per common share: | |||||||
| Basic | $ | 3.55 | $ | 2.88 | |||
| Diluted | $ | 3.41 | $ | 2.75 | |||
| Weighted average shares outstanding, in thousands: | |||||||
| Basic | 13,281 | 12,811 | |||||
| Diluted | 13,829 | 13,424 | |||||
| Interest incurred | $ | 16,871 | $ | 16,582 | |||
| Interest amortized to cost of sales | $ | 13,687 | $ | 11,900 | |||
| Depreciation and amortization | $ | 4,014 | $ | 2,731 | |||
SELECTED BALANCE SHEET DATA
| |
December 31, |
|||||
|---|---|---|---|---|---|---|
| |
2003 |
2002 |
||||
| Cash | $ | 102,267 | $ | 80,830 | ||
| Inventory | 1,960,408 | 1,418,280 | ||||
| Total assets | 2,450,391 | 1,889,507 | ||||
| Total debt | 948,465 | 739,417 | ||||
| Shareholders' equity | 1,043,254 | 837,516 | ||||
OPERATING DATA
| |
Quarter Ended December 31, |
||||||
|---|---|---|---|---|---|---|---|
| |
2003 |
2002 |
|||||
| SELECTED OPERATING DATA | |||||||
| Closings: | |||||||
| Southeast region | 1,257 | 1,093 | |||||
| West region | 1,214 | 1,040 | |||||
| Central region | 240 | 266 | |||||
| Mid-Atlantic region | 318 | 295 | |||||
| Midwest region | 579 | 788 | |||||
| Total closings | 3,608 | 3,482 | |||||
| New orders, net of cancellations: | |||||||
| Southeast region | 1,043 | 1,015 | |||||
| West region | 1,454 | 939 | |||||
| Central region | 185 | 232 | |||||
| Mid-Atlantic region | 316 | 452 | |||||
| Midwest region | 306 | 503 | |||||
| Total new orders | 3,304 | 3,141 | |||||
| Backlog at end of period | 7,122 | 6,178 | |||||
| Dollar value of backlog at end of period | $ | 1,651,319 | $ | 1,234,479 | |||
| Active subdivisions: | |||||||
| Southeast region | 178 | 179 | |||||
| West region | 105 | 84 | |||||
| Central region | 40 | 31 | |||||
| Mid-Atlantic region | 48 | 39 | |||||
| Midwest region | 135 | 135 | |||||
| Total active subdivisions | 506 | 468 | |||||
| |
Quarter Ended December 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| |
2003 |
2002 |
||||||
| SUPPLEMENTAL FINANCIAL DATA: | ||||||||
| Revenues | ||||||||
| Home sales | $ | 793,297 | $ | 688,770 | ||||
| Land and lot sales | 7,735 | 2,495 | ||||||
| Mortgage origination revenue | 12,146 | 12,484 | ||||||
| Intercompany elimination—mortgage | (3,070 | ) | (3,589 | ) | ||||
| Total revenues | $ | 810,108 | $ | 700,160 | ||||
| Cost of home construction and land sales | ||||||||
| Home sales | $ | 640,117 | $ | 565,364 | ||||
| Land and lot sales | 7,902 | 1,942 | ||||||
| Intercompany elimination—mortgage | (3,070 | ) | (3,589 | ) | ||||
| Total costs of home construction and land sales | $ | 644,949 | $ | 563,717 | ||||
| Selling, general and administrative | ||||||||
| Homebuilding operations | $ | 82,113 | $ | 70,516 | ||||
| Mortgage origination operations | 7,394 | 6,861 | ||||||
| Total selling, general and administrative | $ | 89,507 | $ | 77,377 | ||||
Beazer Homes Reports Record First Fiscal Quarter EPS of $3.41, up 24%