x |
Annual
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
o |
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
Delaware
|
58-2086934
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Title
of Securities
|
Exchanges
on which Registered
|
|
Common
Stock, $.001 par value per share
|
New
York Stock Exchange
|
|
Preferred
Share Purchase Rights
|
New
York Stock Exchange
|
Part
of 10-K
where
incorporated
|
|
Portions
of the registrant’s Proxy Statement for the 2007 Annual Meeting of
Stockholders
|
III
|
Page
Number
|
||
PART
I.
|
||
2
|
||
10
|
||
14
|
||
14
|
||
15
|
||
PART
II.
|
||
16
|
||
18
|
||
20
|
||
36
|
||
37
|
||
68
|
||
68
|
||
69
|
||
PART
III.
|
||
69
|
||
69
|
||
69
|
||
69
|
||
70
|
||
|
||
PART
IV.
|
||
70
|
||
SIGNATURES
|
||
Region/State
|
Market(s)
/ Year Entered
|
||
West
Region:
|
|||
Arizona
|
Phoenix
(1993)
|
||
California
|
Los
Angeles County (1993), Orange County (1993), Riverside and San Bernardino
Counties (1993), San Diego County (1992), Ventura County (1993),
Sacramento (1993), Kern County (2005), Fresno (2005)
|
||
Nevada
|
Las
Vegas (1993)
|
||
New
Mexico
|
Albuquerque
(2005)
|
||
Mid-Atlantic
Region:
|
|||
Maryland
Delaware
|
Baltimore
(1998), Metro-Washington, D.C. (1998)
Delaware
(2003)
|
||
New
Jersey/New York/Pennsylvania
|
Central
and Southern New Jersey (1998), Bucks County, PA (1998), Orange County,
NY
(2005)
|
||
Virginia/West
Virginia
|
Fairfax
County (1998), Loudoun County (1998), Prince William County (1998),
West
Virginia (2004)
|
||
Florida
Region:
|
|||
Florida
|
Jacksonville
(1993), Fort Myers/Naples (1996), Tampa/St. Petersburg (1996), Orlando
(1997), Sarasota (2005), Tallahassee (2006)
|
||
Southeast
Region:
|
|||
Georgia
|
Atlanta
(1985), Savannah (2005)
|
||
North
Carolina
|
Charlotte
(1987), Raleigh/Durham (1992), Greensboro (1999)
|
||
South
Carolina
|
Charleston
(1987), Columbia (1993), Myrtle Beach (2002)
|
||
Nashville,
Tennessee
|
Nashville
(1987)
|
||
Other
homebuilding markets:
|
|||
Colorado
|
Denver
(2001), Colorado Springs (2003)
|
||
Indiana
Kentucky
Ohio
|
Indianapolis
(2002), Ft. Wayne (2002)
Lexington
(2002)
Columbus
(2002), Cincinnati/Dayton (2002)
|
||
Memphis,
TN
|
Memphis
(2002)
|
||
Texas
|
Dallas/Ft.
Worth (1995), Houston (1995)
|
||
· |
leveraging
our size to create economies of scale in purchasing and
construction;
|
· |
standardizing
best practices and product designs;
|
· |
using
branding and increased market penetration to maximize efficiency
of land
use; and
|
· |
leveraging
our fixed cost infrastructure by increasing depth and breadth in
markets
where we have an established presence.
|
· |
the
historical and projected growth of the population;
|
·
|
the
number of new jobs created or projected to be created;
|
·
|
the
number of housing starts in previous periods;
|
·
|
building
lot availability and price;
|
·
|
housing
inventory;
|
·
|
level
of competition; and
|
·
|
home
sale absorption rates.
|
Region
|
Number
of
Homes
Closed
|
Average
Closing
Price
|
Units
in
Backlog
at
Year
End
|
Dollar
Value
of
Backlog at
Year
End
|
|||||||||
West
|
5,035
|
$
|
368.3
|
1,175
|
$
|
468,560
|
|||||||
Mid-Atlantic
|
2,086
|
457.6
|
577
|
290,861
|
|||||||||
Florida
|
2,274
|
309.5
|
508
|
173,106
|
|||||||||
Southeast
|
4,289
|
210.8
|
1,321
|
312,118
|
|||||||||
Other
|
4,985
|
187.5
|
1,521
|
310,811
|
|||||||||
Total
Company
|
18,669
|
$
|
286.7
|
5,102
|
$
|
1,555,456
|
·
|
evaluate
and select geographic markets;
|
·
|
allocate
capital resources to particular markets for land
acquisitions;
|
·
|
maintain
and develop relationships with lenders and capital markets to regulate
the
flow of financial resources;
|
·
|
maintain
centralized information systems; and
|
·
|
monitor
the operations of our subsidiaries and divisions.
|
·
|
internal
and external demographic and marketing
studies;
|
·
|
suitability
for development during the time period of one to five years from
the
beginning of the development process to the last closing;
|
·
|
centralized
corporate-level management review of all
decisions;
|
·
|
financial
review as to the feasibility of the proposed project, including
profit
margins and returns on capital employed;
|
·
|
the
ability to secure governmental approvals and entitlements;
|
·
|
environmental
and legal due diligence;
|
·
|
competition
in the area;
|
·
|
proximity
to local traffic corridors and amenities; and
|
·
|
management’s
judgment as to the real estate market and economic trends and our
experience in a particular market.
|
Lots
Owned
|
||||||||||||||||||||||
Undevel-
oped
Lots(1)
|
Lots
Under
Develop-
ment
|
Finished
Lots
|
Homes
Under
Con-
struction(2)
|
Total
Lots
Owned
|
Total
Lots
Under Contract
|
Total
Lots
Controlled
|
||||||||||||||||
Arizona/New
Mexico
|
—
|
140
|
1,468
|
593
|
2,201
|
7,593
|
9,794
|
|||||||||||||||
California
|
—
|
3,205
|
1,635
|
1,236
|
6,076
|
4,016
|
10,092
|
|||||||||||||||
Colorado
|
—
|
—
|
498
|
237
|
735
|
1,752
|
2,487
|
|||||||||||||||
Florida
|
—
|
2,388
|
1,135
|
1,059
|
4,582
|
6,711
|
11,293
|
|||||||||||||||
Georgia
|
—
|
337
|
269
|
303
|
909
|
1,320
|
2,229
|
|||||||||||||||
Indiana
|
434
|
2,627
|
1,187
|
647
|
4,895
|
1,486
|
6,381
|
|||||||||||||||
Kentucky
|
—
|
195
|
157
|
94
|
446
|
726
|
1,172
|
|||||||||||||||
Maryland/Delaware
|
—
|
1,001
|
616
|
346
|
1,963
|
5,081
|
7,044
|
|||||||||||||||
Nevada
|
—
|
1,438
|
417
|
337
|
2,192
|
1,616
|
3,808
|
|||||||||||||||
New
Jersey/New York/
|
||||||||||||||||||||||
Pennsylvania
|
—
|
165
|
420
|
152
|
737
|
4,178
|
4,915
|
|||||||||||||||
North
Carolina
|
60
|
1,420
|
476
|
387
|
2,343
|
1,861
|
4,204
|
|||||||||||||||
Ohio
|
—
|
2,314
|
1,121
|
244
|
3,679
|
335
|
4,014
|
|||||||||||||||
South
Carolina
|
—
|
1,474
|
509
|
527
|
2,510
|
4,842
|
7,352
|
|||||||||||||||
Tennessee
|
—
|
1,312
|
85
|
285
|
1,682
|
1,465
|
3,147
|
|||||||||||||||
Texas
|
503
|
1,529
|
2,234
|
688
|
4,954
|
1,339
|
6,293
|
|||||||||||||||
Virginia/West
Virginia
|
—
|
513
|
340
|
176
|
1,029
|
3,251
|
4,280
|
|||||||||||||||
Total
|
997
|
20,058
|
12,567
|
7,311
|
40,933
|
47,572
|
88,505
|
(1)
|
“Undeveloped
Lots” consists of raw land that is expected to be developed into the
respective number
of lots reflected in this
table.
|
(2)
|
The
category “Homes Under Construction” represents lots on which construction
of a home has commenced.
|
· |
our
experience within our geographic markets and breadth of product line,
which allows us to vary our regional product offerings to reflect
changing
market conditions;
|
· |
our
responsiveness to market conditions, enabling us to capitalize on
the
opportunities for advantageous land acquisitions in desirable
locations;
|
· |
our
reputation for quality design, construction and service;
and
|
· |
our
focus on providing customers with a product they
enjoy.
|
· |
causing
us to be unable to satisfy our obligations under our debt
agreements;
|
·
|
making
us more vulnerable to adverse general economic and industry
conditions;
|
·
|
making
it difficult to fund future working capital, land purchases, acquisitions,
share repurchases, general corporate purposes or other purposes;
and
|
·
|
causing
us to be limited in our flexibility in planning for, or reacting
to,
changes in our business.
|
· |
the
timing of home closings and land
sales;
|
·
|
our
ability to continue to acquire additional land or secure option
contracts
to acquire land on acceptable
terms;
|
·
|
conditions
of the real estate market in areas where we operate and of the
general
economy;
|
·
|
raw
material and labor shortages;
|
·
|
seasonal
homebuying patterns; and
|
·
|
other
changes in operating expenses, including the cost of labor and
raw
materials, personnel and general economic
conditions.
|
Name
|
Age
|
Position
|
||
Executive
Officers
|
||||
Ian
J. McCarthy
|
53
|
President,
Chief Executive Officer and Director
|
||
Michael
H. Furlow
|
56
|
Executive
Vice President, Chief Operating Officer
|
||
James
O’Leary
|
43
|
Executive
Vice President, Chief Financial Officer
|
||
Kenneth
J. Gary
|
48
|
Executive
Vice President, General Counsel, Secretary
|
||
Michael
T. Rand
|
44
|
Senior
Vice President, Chief Accounting Officer
|
||
Cory
J. Boydston
|
47
|
Senior
Vice President, Treasurer
|
|
1st
Quarter
|
2nd
Quarter
|
3rd
Quarter
|
4th
Quarter
|
|||||||||
Fiscal
Year 2006:
|
|||||||||||||
High
|
$
|
74.61
|
$
|
82.14
|
$
|
69.61
|
$
|
46.31
|
|||||
Low
|
$
|
51.90
|
$
|
59.00
|
$
|
43.82
|
$
|
35.96
|
|||||
Fiscal
Year 2005:
|
|||||||||||||
High
|
$
|
49.46
|
$
|
58.83
|
$
|
60.71
|
$
|
67.50
|
|||||
Low
|
$
|
32.55
|
$
|
44.67
|
$
|
43.99
|
$
|
55.05
|
Plan
Category
|
Number
of Common
Shares to be Issued Upon Exercise of Outstanding Options |
Weighted
Average Exercise Price of Outstanding Options |
Number
of Common Shares
Remaining Available for Future Issuance
Under Equity Compensation
Plans
(Excluding Common Shares
Reflected
in Column (a))
|
|||||||
(a)
|
(b)
|
(c)
|
||||||||
Equity
compensation plans approved by stockholders
|
2,135,572
|
$
|
43.82
|
1,137,329
|
Period
|
Total
Number
of
Shares
Purchased
(1)
|
Average
Price
Paid
Per Share
|
Total
Number of Shares
Purchased
as Part of
Publicly
Announced Plans
|
Maximum
Number of
Shares
That May Yet Be
Purchased
Under the Plans
|
|||||||||
7/1/06 –
7/31/06
|
229,100
|
$
|
38.90
|
229,100
|
5,756,600
|
||||||||
9/1/06 –
9/30/06
|
328,300
|
40.13
|
328,300
|
5,428,300
|
Year
Ended September 30,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
Statement
of Operations Data:
|
||||||||||||||||
Total
revenue
|
$
|
5,462,003
|
$
|
4,995,353
|
$
|
3,907,109
|
$
|
3,177,408
|
$
|
2,641,173
|
||||||
Operating
income before goodwill
|
||||||||||||||||
impairment
(i)
|
611,675
|
617,153
|
377,935
|
279,155
|
193,174
|
|||||||||||
Goodwill
impairment (i)
|
—
|
130,235
|
—
|
—
|
—
|
|||||||||||
Operating
income (i)
|
611,675
|
486,918
|
377,935
|
279,155
|
193,174
|
|||||||||||
Net
income (i)
|
388,761
|
262,524
|
235,811
|
172,745
|
122,634
|
|||||||||||
Net
income per common share:
|
||||||||||||||||
Basic
(i), (ii)
|
9.76
|
6.49
|
5.91
|
4.47
|
3.88
|
|||||||||||
Diluted
(i), (ii)
|
8.89
|
5.87
|
5.59
|
4.26
|
3.58
|
|||||||||||
Dividends
paid per common share
|
0.40
|
0.33
|
0.13
|
—
|
—
|
|||||||||||
Balance
Sheet Data (end of year):
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
162,570
|
$
|
297,098
|
$
|
320,880
|
$
|
73,372
|
$
|
124,989
|
||||||
Inventory
|
3,520,332
|
2,901,165
|
2,344,095
|
1,723,483
|
1,364,133
|
|||||||||||
Total
assets (i)
|
4,559,431
|
3,770,516
|
3,163,030
|
2,219,407
|
1,902,319
|
|||||||||||
Total
debt
|
1,838,660
|
1,321,936
|
1,150,972
|
748,738
|
748,572
|
|||||||||||
Stockholders’
equity
|
1,701,923
|
1,504,688
|
1,232,121
|
993,695
|
799,515
|
|||||||||||
Supplemental
Financial Data:
|
||||||||||||||||
Cash
(used in)/provided by:
|
||||||||||||||||
Operating
activities
|
$
|
(304,463
|
)
|
$
|
(84,263
|
)
|
$
|
(73,719
|
)
|
$
|
(41,049
|
)
|
$
|
59,464
|
||
Investing
activities
|
(66,218
|
)
|
(48,470
|
)
|
(30,476
|
)
|
(6,552
|
)
|
(314,633
|
)
|
||||||
Financing
activities
|
236,153
|
108,951
|
351,703
|
(4,016
|
)
|
338,480
|
||||||||||
EBIT
(iii)
|
709,456
|
581,722
|
452,774
|
340,980
|
245,060
|
|||||||||||
EBITDA
(iii)
|
735,513
|
602,896
|
468,529
|
354,200
|
254,513
|
|||||||||||
Interest
incurred (iv)
|
120,965
|
89,678
|
76,035
|
65,295
|
51,171
|
|||||||||||
EBIT/interest
incurred
|
5.86
|
x |
6.49
|
x |
5.95
|
x |
5.22
|
x |
4.79
|
x | ||||||
EBITDA/interest
incurred
|
6.08
|
x |
6.72
|
x |
6.16
|
x |
5.42
|
x |
4.97
|
x | ||||||
Financial
Statistics (v):
|
||||||||||||||||
Total
debt as a percentage of total
|
||||||||||||||||
debt
and stockholders’ equity
|
51.9
|
%
|
46.8
|
%
|
48.3
|
%
|
43.0
|
%
|
48.4
|
%
|
||||||
Asset
turnover
|
1.31
|
x |
1.44
|
x |
1.45
|
x |
1.54
|
x |
1.82
|
x | ||||||
EBIT
margin
|
13.0
|
%
|
11.6
|
%
|
11.6
|
%
|
10.7
|
%
|
9.3
|
%
|
||||||
Return
on average assets (pre-tax)
|
17.0
|
%
|
16.8
|
%
|
16.8
|
%
|
16.5
|
%
|
16.9
|
%
|
||||||
Return
on average capital (pre-tax)
|
22.3
|
%
|
22.3
|
%
|
21.9
|
%
|
20.7
|
%
|
21.3
|
%
|
||||||
Return
on average equity
|
24.2
|
%
|
19.2
|
%
|
21.2
|
%
|
19.3
|
%
|
21.3
|
%
|
(in
thousands, except per share data)
|
Year
Ended September 30, 2005
|
|||
Operating
income
|
$
|
486,918
|
||
Goodwill
impairment
|
130,235
|
|||
Operating
income before goodwill impairment
|
$
|
617,153
|
||
Net
income
|
$
|
262,524
|
||
Goodwill
impairment
|
130,235
|
|||
Adjusted
net income
|
$
|
392,759
|
||
EPS,
diluted
|
$
|
5.87
|
||
Goodwill
impairment
|
2.85
|
|||
Adjusted
EPS
|
$
|
8.72
|
||
EBITDA
|
$
|
602,896
|
||
Goodwill
impairment
|
130,235
|
|||
Adjusted
EBITDA
|
$
|
733,131
|
Year
Ended September 30,
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
Net
cash (used)/provided by operating activities
|
$
|
(304,463
|
)
|
$
|
(84,263
|
)
|
$
|
(73,719
|
)
|
$
|
(41,049
|
)
|
$
|
59,464
|
||
Increase
in inventory
|
430,345
|
572,114
|
413,705
|
330,747
|
154,238
|
|||||||||||
Provision
for income taxes
|
224,453
|
236,810
|
150,764
|
112,784
|
79,425
|
|||||||||||
Deferred
income tax (provision) benefit
|
(41,487
|
)
|
54,631
|
22,740
|
(87
|
)
|
6,613
|
|||||||||
Interest
amortized to cost of sales
|
96,242
|
82,388
|
66,199
|
55,451
|
43,001
|
|||||||||||
Decrease
(increase) in accounts payable and other liabilities
|
92,834
|
(217,412
|
)
|
(120,976
|
)
|
(96,224
|
)
|
(71,781
|
)
|
|||||||
Goodwill
impairment
|
—
|
(130,235
|
)
|
—
|
—
|
—
|
||||||||||
Impairment
and write-off of inventory-related assets
|
(43,477
|
)
|
(5,511
|
)
|
(3,180
|
)
|
(1,854
|
)
|
(1,248
|
)
|
||||||
Increase
(decrease) in accounts receivable and other assets
|
282,870
|
108,081
|
21,399
|
13,105
|
(4,348
|
)
|
||||||||||
|
||||||||||||||||
distributions
|
(1,124
|
)
|
(823
|
)
|
1,561
|
1,597
|
2,338
|
|||||||||
Loss
on early extinguishment of debt
|
—
|
—
|
—
|
(7,570
|
)
|
—
|
||||||||||
Tax
benefit from stock transactions
|
—
|
(11,551
|
)
|
(8,127
|
)
|
(11,502
|
)
|
(12,235
|
)
|
|||||||
Other
|
(680
|
)
|
(1,333
|
)
|
(1,837
|
)
|
(1,198
|
)
|
(954
|
)
|
||||||
EBITDA
|
735,513
|
602,896
|
468,529
|
354,200
|
254,513
|
|||||||||||
Less
depreciation and amortization
|
26,057
|
21,174
|
15,755
|
13,220
|
9,453
|
|||||||||||
EBIT
|
$
|
709,456
|
$
|
581,722
|
$
|
452,774
|
$
|
340,980
|
$
|
245,060
|
West
|
Mid-Atlantic
|
Florida
|
Southeast
|
Other
|
||||
Arizona
|
Delaware
|
Florida
|
Georgia
|
Colorado
|
||||
California
|
Maryland
|
Nashville,
TN
|
Indiana
|
|||||
Nevada
|
New
Jersey
|
North
Carolina
|
Kentucky
|
|||||
New
Mexico
|
New
York
|
South
Carolina
|
Memphis,
TN
|
|||||
Pennsylvania
|
Ohio
|
|||||||
Virginia
|
Texas
|
|||||||
West
Virginia
|
New
Orders (net of cancellations)
|
|||||||||||||
1stQ
|
2ndQ
|
3rdQ
|
4thQ
|
||||||||||
2006
|
3,872
|
4,224
|
4,378
|
2,064
|
|||||||||
2005
|
3,545
|
5,239
|
5,202
|
4,937
|
|||||||||
2004
|
3,304
|
5,032
|
4,869
|
4,276
|
Closings
|
|||||||||||||
1stQ
|
2ndQ
|
3rdQ
|
4thQ
|
||||||||||
2006
|
3,829
|
4,273
|
4,156
|
6,411
|
|||||||||
2005
|
3,574
|
3,602
|
4,631
|
6,339
|
|||||||||
2004
|
3,608
|
3,684
|
4,061
|
5,098
|
Fiscal
Year Ended September 30,
|
||||||||||
($
in thousands)
|
2006
|
2005
|
2004
|
|||||||
Revenues:
|
||||||||||
Homebuilding
(1)
|
$
|
5,325,588
|
$
|
4,922,793
|
$
|
3,824,142
|
||||
Land
and lot sales
|
90,217
|
34,527
|
44,702
|
|||||||
Financial
Services
|
65,808
|
54,310
|
51,140
|
|||||||
Intercompany
elimination
|
(19,610
|
)
|
(16,277
|
)
|
(12,875
|
)
|
||||
Total
|
$
|
5,462,003
|
$
|
4,995,353
|
$
|
3,907,109
|
||||
Gross
profit (loss)
|
||||||||||
Homebuilding
(1)
|
$
|
1,195,991
|
$
|
1,112,670
|
$
|
754,166
|
||||
Land
and lot sales
|
(1,114
|
)
|
5,073
|
2,071
|
||||||
Financial
Services
|
65,808
|
54,310
|
51,140
|
|||||||
Total
|
$
|
1,260,685
|
$
|
1,172,053
|
$
|
807,377
|
||||
Selling,
general and administrative (SG&A) expenses:
|
||||||||||
Homebuilding
|
$
|
600,428
|
$
|
516,217
|
$
|
397,601
|
||||
Financial
Services
|
48,582
|
38,683
|
31,841
|
|||||||
Total
|
$
|
649,010
|
$
|
554,900
|
$
|
429,442
|
||||
As
a percentage of total revenue:
|
||||||||||
Gross
Margin
|
23.1
|
%
|
23.5
|
%
|
20.7
|
%
|
||||
SG&A
- homebuilding
|
11.0
|
%
|
10.3
|
%
|
10.2
|
%
|
||||
SG&A
- Financial Services
|
0.9
|
%
|
0.8
|
%
|
0.8
|
%
|
Fiscal
Year Ended September 30,
|
||||||||||||||||
2006
|
Change
|
2005
|
Change
|
2004
|
||||||||||||
West
|
||||||||||||||||
New
orders, net
|
3,216
|
(43.3
|
)%
|
5,673
|
(10.3
|
)%
|
6,323
|
|||||||||
Closings
|
5,035
|
(11.4
|
)%
|
5,686
|
4.1
|
% |
5,460
|
|||||||||
Backlog
units
|
1,175
|
(60.8
|
)%
|
2,994
|
(0.4
|
)%
|
3,007
|
|||||||||
Average
sales price per home closed
|
$
|
368.3
|
7.6
|
% |
$
|
342.4
|
21.5
|
% |
$
|
281.9
|
||||||
Homebuilding
revenue
|
$
|
1,838,213
|
(5.6
|
)%
|
$
|
1,946,822
|
26.5
|
% |
$
|
1,539,439
|
||||||
Land
& lot sale revenue
|
$
|
35,905
|
N/A
|
$
|
—
|
N/A
|
$
|
14,431
|
||||||||
Gross
profit
|
$
|
432,594
|
(21.1
|
)%
|
$
|
548,505
|
45.9
|
% |
$
|
375,891
|
||||||
Operating
income
|
$
|
280,731
|
(33.5
|
)%
|
$
|
421,968
|
50.2
|
% |
$
|
280,898
|
||||||
Mid-Atlantic
|
||||||||||||||||
New
orders, net
|
1,470
|
(27.1
|
)%
|
2,016
|
33.2
|
% |
1,513
|
|||||||||
Closings
|
2,086
|
11.6
|
% |
1,870
|
18.1
|
% |
1,583
|
|||||||||
Backlog
units
|
577
|
(51.6
|
)%
|
1,193
|
13.9
|
% |
1,047
|
|||||||||
Average
sales price per home closed
|
$
|
457.6
|
1.8
|
% |
$
|
449.6
|
27.2
|
% |
$
|
353.5
|
||||||
Homebuilding
revenue
|
$
|
962,324
|
14.5
|
% |
$
|
840,714
|
50.2
|
% |
$
|
559,596
|
||||||
Land
& lot sale revenue
|
$
|
3,550
|
(51.8
|
)%
|
$
|
7,369
|
N/M
|
$
|
150
|
|||||||
Gross
profit
|
$
|
297,759
|
7.2
|
% |
$
|
277,649
|
74.8
|
% |
$
|
158,860
|
||||||
Operating
income
|
$
|
213,279
|
3.2
|
% |
$
|
206,627
|
84.9
|
% |
$
|
111,763
|
||||||
Florida
|
||||||||||||||||
New
orders, net
|
1,523
|
(33.6
|
)%
|
2,295
|
11.4
|
% |
2,061
|
|||||||||
Closings
|
2,274
|
1.7
|
% |
2,236
|
38.4
|
% |
1,616
|
|||||||||
Backlog
units
|
508
|
(59.7
|
)%
|
1,259
|
4.9
|
% |
1,200
|
|||||||||
Average
sales price per home closed
|
$
|
309.5
|
15.7
|
% |
$
|
267.6
|
10.8
|
% |
$
|
241.6
|
||||||
Homebuilding
revenue
|
$
|
694,803
|
16.1
|
% |
$
|
598,454
|
53.3
|
% |
$
|
390,365
|
||||||
Land
& lot sale revenue
|
$
|
—
|
N/A
|
$
|
496
|
N/M
|
$
|
15
|
||||||||
Gross
profit
|
$
|
211,559
|
33.7
|
% |
$
|
158,229
|
68.1
|
% |
$
|
94,125
|
||||||
Operating
income
|
$
|
143,380
|
47.4
|
% |
$
|
97,263
|
90.3
|
% |
$
|
51,105
|
||||||
Southeast
|
||||||||||||||||
New
orders, net
|
3,856
|
(11.8
|
)%
|
4,372
|
17.3
|
%
|
3,726
|
|||||||||
Closings
|
4,289
|
7.4
|
% |
3,995
|
4.2
|
% |
3,833
|
|||||||||
Backlog
units
|
1,321
|
(24.7
|
)%
|
1,754
|
27.4
|
% |
1,377
|
|||||||||
Average
sales price per home closed
|
$
|
210.8
|
12.4
|
% |
$
|
187.5
|
13.4
|
% |
$
|
165.4
|
||||||
Homebuilding
revenue
|
$
|
897,994
|
19.9
|
% |
$
|
748,912
|
18.1
|
% |
$
|
634,028
|
||||||
Land
& lot sale revenue
|
$
|
2,669
|
(78.0
|
)%
|
$
|
12,118
|
(0.7
|
)%
|
$
|
12,207
|
||||||
Gross
profit
|
$
|
187,234
|
42.2
|
% |
$
|
131,678
|
12.4
|
% |
$
|
117,109
|
||||||
Operating
income
|
$
|
86,451
|
76.1
|
% |
$
|
49,098
|
6.8
|
% |
$
|
45,952
|
Fiscal
Year Ended September 30,
|
||||||||||||||||
2006
|
Change
|
2005
|
Change
|
2004
|
||||||||||||
Other
homebuilding
|
||||||||||||||||
New
orders, net
|
4,473
|
(2.1
|
)%
|
4,567
|
18.4
|
%
|
3,858
|
|||||||||
Closings
|
4,985
|
14.4
|
%
|
4,359
|
10.1
|
%
|
3,959
|
|||||||||
Backlog
units
|
1,521
|
(25.2
|
)%
|
2,033
|
11.4
|
%
|
1,825
|
|||||||||
Average
sales price per home closed
|
$
|
187.5
|
3.7
|
%
|
$
|
180.8
|
2.7
|
%
|
$
|
176.0
|
||||||
Homebuilding
revenue
|
$
|
932,254
|
18.3
|
%
|
$
|
787,891
|
12.4
|
%
|
$
|
700,714
|
||||||
Land
& lot sale revenue
|
$
|
48,093
|
230.7
|
%
|
$
|
14,544
|
(18.7
|
)%
|
$
|
17,899
|
||||||
Gross
profit
|
$
|
117,004
|
5.9
|
%
|
$
|
110,440
|
(6.0
|
)%
|
$
|
117,548
|
||||||
Operating
(loss) income
|
$
|
(4,301
|
)
|
(172.9
|
)%
|
$
|
5,902
|
(79.9
|
)%
|
$
|
29,425
|
|||||
Financial
Services
|
||||||||||||||||
Number
of mortgage
originations
|
12,205
|
9.1
|
%
|
11,183
|
16.1
|
%
|
9,633
|
|||||||||
Capture
rate
|
65
|
%
|
380
|
bps |
62
|
%
|
260
|
bps |
59
|
%
|
||||||
Revenues
|
$
|
65,808
|
21.2
|
%
|
$
|
54,310
|
6.2
|
%
|
$
|
51,140
|
||||||
Operating
income
|
$
|
17,226
|
10.2
|
%
|
$
|
15,627
|
(19.0
|
)%
|
$
|
19,299
|
Fiscal
Year Ended September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Effective
tax rate
|
36.6
|
%
|
47.4
|
%
|
39.0
|
%
|
||||
Impact
of non-cash, non-deductible goodwill impairment
|
—
|
(9.8
|
%)
|
—
|
||||||
Adjusted
effective tax rate
|
36.6
|
%
|
37.6
|
%
|
39.0
|
%
|
Debt
|
Due
|
Amount
|
|||||
Warehouse
Line
|
January
2007
|
$
|
94,881
|
||||
Revolving
Credit Facility
|
August
2009
|
—
|
|||||
8
5/8% Senior Notes*
|
May
2011
|
200,000
|
|||||
8
3/8% Senior Notes*
|
April
2012
|
350,000
|
|||||
6
1/2% Senior Notes*
|
November
2013
|
200,000
|
|||||
6
7/8% Senior Notes*
|
July
2015
|
350,000
|
|||||
8
1/8% Senior Notes*
|
June
2016
|
275,000
|
|||||
4
5/8% Convertible Senior Notes*
|
June
2024
|
180,000
|
|||||
Junior
subordinated notes
|
July
2036
|
103,093
|
|||||
Other
Notes Payable
|
Various
Dates
|
89,264
|
|||||
Unamortized
debt discounts
|
(3,578
|
)
|
|||||
Total
|
$
|
1,838,660
|
|||||
*
Collectively, the “Senior
Notes”
|
Land
Bank
|
|||||||
Lots
|
Percentage
|
||||||
Owned
|
40,933
|
46
|
%
|
||||
Optioned
|
47,572
|
54
|
%
|
||||
Total
|
88,505
|
100
|
%
|
Payments
Due by Period (in thousands)
|
||||||||||||||||
Total
|
Less
than 1 Year
|
1-3
Years
|
3-5
Years
|
More
than 5
Years
|
||||||||||||
Contractual
obligations
|
||||||||||||||||
Senior
Notes and other notes payable
|
$
|
1,842,238
|
$
|
112,533
|
$
|
63,050
|
$
|
208,562
|
$
|
1,458,093
|
||||||
Interest
commitments under Senior
Notes
and other notes payable (1)
|
1,174,756
|
134,881
|
238,589
|
222,711
|
578,575
|
|||||||||||
Operating
leases
|
85,079
|
25,692
|
33,019
|
17,330
|
9,038
|
|||||||||||
Purchase
obligations (2)
|
14,216
|
8,023
|
6,193
|
—
|
—
|
|||||||||||
Total
|
$
|
3,116,289
|
$
|
281,129
|
$
|
340,851
|
$
|
448,603
|
$
|
2,045,706
|
· |
economic
changes nationally or in local
markets;
|
· |
volatility
of mortgage interest rates and
inflation;
|
· |
increased
competition;
|
· |
shortages
of skilled labor or raw materials used in the production of
houses;
|
· |
increased
prices for labor, land and raw materials used in the production
of
houses;
|
· |
increased
land development costs on projects under
development;
|
· | decreased land values underlying land option agreements; |
· |
the
cost and availability of insurance, including the availability
of
insurance for the presence of
mold;
|
· |
the
impact of construction defect and home warranty
claims;
|
· |
a
material failure on the part of Trinity Homes LLC to satisfy the
conditions of the class action settlement
agreement;
|
· |
any
delays in reacting to changing consumer preference in home
design;
|
· |
terrorist
acts and other acts of war;
|
· |
changes
in consumer confidence;
|
· |
delays
or difficulties in implementing initiatives to reduce production
and
overhead cost structure;
|
· |
delays
in land development or home construction resulting from adverse
weather
conditions;
|
· |
potential
delays or increased costs in obtaining necessary permits as a result
of
changes to, or complying with, laws, regulations, or governmental
policies
and possible penalties for failure to comply with such laws, regulations
and governmental policies;
|
· |
changes
in accounting policies, standards, guidelines or principles, as
may be
adopted by regulatory agencies as well as the FASB;
or
|
· |
other
factors over which the Company has little or no
control.
|
Year
Ended September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Total
revenue
|
$
|
5,462,003
|
$
|
4,995,353
|
$
|
3,907,109
|
||||
Home
construction and land sales expenses
|
4,201,318
|
3,823,300
|
3,099,732
|
|||||||
Gross
profit
|
1,260,685
|
1,172,053
|
807,377
|
|||||||
Selling,
general and administrative expenses
|
649,010
|
554,900
|
429,442
|
|||||||
Goodwill
impairment
|
—
|
130,235
|
—
|
|||||||
Operating
income
|
611,675
|
486,918
|
377,935
|
|||||||
Equity
in (loss) income of unconsolidated joint ventures
|
(772
|
)
|
5,021
|
1,561
|
||||||
Other
income, net
|
2,311
|
7,395
|
7,079
|
|||||||
Income
before income taxes
|
613,214
|
499,334
|
386,575
|
|||||||
Provision
for income taxes
|
224,453
|
236,810
|
150,764
|
|||||||
Net
income
|
$
|
388,761
|
$
|
262,524
|
$
|
235,811
|
||||
Weighted
average number of shares:
|
||||||||||
Basic
|
39,812
|
40,468
|
39,879
|
|||||||
Diluted
|
44,345
|
45,634
|
42,485
|
|||||||
Earnings
per share:
|
||||||||||
Basic
|
$
|
9.76
|
$
|
6.49
|
$
|
5.91
|
||||
Diluted
|
$
|
8.89
|
$
|
5.87
|
$
|
5.59
|
||||
Cash
dividends per share
|
$
|
0.40
|
$
|
0.33
|
$
|
0.13
|
||||
September
30,
|
|||||||
2006
|
2005
|
||||||
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
162,570
|
$
|
297,098
|
|||
Restricted
cash
|
9,873
|
—
|
|||||
Accounts
receivable
|
333,571
|
161,880
|
|||||
Inventory
|
|||||||
Owned
inventory
|
3,048,891
|
2,671,082
|
|||||
Consolidated
inventory not owned
|
471,441
|
230,083
|
|||||
Total
Inventory
|
3,520,332
|
2,901,165
|
|||||
Residential
mortgage loans available-for-sale
|
92,157
|
—
|
|||||
Investments
in unconsolidated joint ventures
|
122,799
|
78,571
|
|||||
Deferred
tax assets
|
59,842
|
101,329
|
|||||
Property,
plant and equipment, net
|
29,465
|
28,367
|
|||||
Goodwill
|
121,368
|
121,368
|
|||||
Other
assets
|
107,454
|
80,738
|
|||||
Total
Assets
|
$
|
4,559,431
|
$
|
3,770,516
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Trade
accounts payable
|
$
|
141,131
|
$
|
141,623
|
|||
Other
liabilities
|
547,014
|
636,106
|
|||||
Obligations
related to consolidated inventory not owned
|
330,703
|
166,163
|
|||||
Senior
Notes (net of discounts of $3,578 and $4,118,
respectively)
|
1,551,422
|
1,275,882
|
|||||
Junior
subordinated notes
|
103,093
|
—
|
|||||
Warehouse
Line
|
94,881
|
—
|
|||||
Other
notes payable
|
89,264
|
46,054
|
|||||
Total
Liabilities
|
2,857,508
|
2,265,828
|
|||||
Stockholders’
Equity:
|
|||||||
Preferred
stock (par value $.01 per share, 5,000,000 shares
|
|||||||
authorized,
no shares issued)
|
—
|
—
|
|||||
Common
stock (par value $0.001, 80,000,000 shares
|
|||||||
authorized,
42,318,098 and 41,844,414 issued,
|
|||||||
38,889,554
and 41,701,955 outstanding)
|
42
|
42
|
|||||
Paid
in capital
|
528,376
|
534,523
|
|||||
Retained
earnings
|
1,362,958
|
990,341
|
|||||
Treasury
stock, at cost (3,428,544 and 142,459 shares)
|
(189,453
|
)
|
(8,092
|
)
|
|||
Unearned
compensation
|
—
|
(12,126
|
)
|
||||
Total
Stockholders’ Equity
|
1,701,923
|
1,504,688
|
|||||
Total
Liabilities and Stockholders’ Equity
|
$
|
4,559,431
|
$
|
3,770,516
|
|
|
Preferred Stock |
|
Common
Stock |
|
Paid
in Capital |
|
Retained Earnings |
|
Treasury Stock |
|
Unearned Compensation |
|
Accumulated
Other
|
|
Total
|
|||||||||
Balance,
September 30, 2003
|
$
|
—
|
$
|
53
|
$
|
572,192
|
$
|
511,349
|
$
|
(70,604
|
)
|
$
|
(15,852
|
)
|
$
|
(3,443
|
)
|
$
|
993,695
|
||||||
Comprehensive
income:
|
|||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
235,811
|
—
|
—
|
—
|
235,811
|
|||||||||||||||||
Unrealized
gain on interest rate swaps, net of tax of
$1,849
|
—
|
—
|
—
|
—
|
—
|
—
|
2,833
|
2,833
|
|||||||||||||||||
Total
comprehensive income
|
238,644
|
||||||||||||||||||||||||
Dividends
paid
|
—
|
—
|
—
|
(5,459
|
)
|
—
|
—
|
—
|
(5,459
|
)
|
|||||||||||||||
Amortization
of nonvested stock awards
|
—
|
—
|
—
|
—
|
—
|
7,381
|
—
|
7,381
|
|||||||||||||||||
Change
in fair value of unearned compensation
|
—
|
—
|
753
|
—
|
—
|
(753
|
)
|
—
|
—
|
||||||||||||||||
Exercises
of stock options (778,401 shares)
|
—
|
1
|
5,361
|
—
|
—
|
—
|
—
|
5,362
|
|||||||||||||||||
Tax
benefit from stock transactions
|
—
|
—
|
8,127
|
—
|
—
|
—
|
—
|
8,127
|
|||||||||||||||||
Issuance
of bonus stock (204,411 shares)
|
—
|
—
|
1,917
|
—
|
—
|
—
|
—
|
1,917
|
|||||||||||||||||
Issuance
of restricted stock (119,079 shares)
|
—
|
—
|
4,736
|
—
|
—
|
(4,736
|
)
|
—
|
—
|
||||||||||||||||
Purchase
of treasury stock (539,400 shares)
|
—
|
—
|
—
|
—
|
(17,546
|
)
|
—
|
—
|
(17,546
|
)
|
|||||||||||||||
Other
|
—
|
—
|
788
|
—
|
—
|
(788
|
)
|
—
|
—
|
||||||||||||||||
Balance,
September 30, 2004
|
—
|
54
|
593,874
|
741,701
|
(88,150
|
)
|
(14,748
|
)
|
(610
|
)
|
1,232,121
|
||||||||||||||
Comprehensive
income:
|
|||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
262,524
|
—
|
—
|
—
|
262,524
|
|||||||||||||||||
Unrealized
gain on interest rate swaps, net of tax of $354
|
—
|
—
|
—
|
—
|
—
|
—
|
610
|
610
|
|||||||||||||||||
Total
comprehensive income
|
263,134
|
||||||||||||||||||||||||
Dividends
paid
|
—
|
—
|
—
|
(13,884
|
)
|
—
|
—
|
—
|
(13,884
|
)
|
|||||||||||||||
Amortization
of nonvested stock awards
|
—
|
—
|
—
|
—
|
—
|
11,945
|
—
|
11,945
|
|||||||||||||||||
Change
in fair value of unearned compensation, net
of forfeitures (17,719 shares)
|
—
|
—
|
2,432
|
—
|
—
|
(2,432
|
)
|
—
|
—
|
||||||||||||||||
Exercises
of stock options (412,125 shares)
|
—
|
—
|
5,631
|
—
|
—
|
244
|
—
|
5,875
|
|||||||||||||||||
Tax
benefit from stock transactions
|
—
|
—
|
11,551
|
—
|
—
|
—
|
—
|
11,551
|
|||||||||||||||||
Issuance
of bonus stock (109,937 shares)
|
—
|
—
|
2,034
|
—
|
—
|
4
|
—
|
2,038
|
|||||||||||||||||
Issuance
of restricted stock, net of
|
|||||||||||||||||||||||||
forfeitures
(137,957 shares)
|
—
|
—
|
5,823
|
—
|
—
|
(5,823
|
)
|
—
|
—
|
||||||||||||||||
Use
of treasury stock for stock dividend
|
|||||||||||||||||||||||||
(12,413,628
shares)
|
—
|
(12
|
)
|
(88,138
|
)
|
—
|
88,150
|
—
|
—
|
—
|
|||||||||||||||
Common
stock redeemed (142,459 shares)
|
—
|
—
|
—
|
—
|
(8,092
|
)
|
—
|
—
|
(8,092
|
)
|
|||||||||||||||
Other
|
—
|
—
|
1,316
|
—
|
—
|
(1,316
|
)
|
—
|
—
|
||||||||||||||||
Balance,
September 30, 2005
|
—
|
42
|
534,523
|
990,341
|
(8,092
|
)
|
(12,126
|
)
|
—
|
1,504,688
|
|||||||||||||||
Net
income
|
—
|
—
|
—
|
388,761
|
—
|
—
|
—
|
388,761
|
|||||||||||||||||
Dividends
paid
|
—
|
—
|
—
|
(16,144
|
)
|
—
|
—
|
—
|
(16,144
|
)
|
|||||||||||||||
Purchase
of treasury stock (3,648,300 shares)
|
—
|
—
|
—
|
—
|
(205,416
|
)
|
—
|
—
|
(205,416
|
)
|
|||||||||||||||
Transfer
of unearned compensation to
|
|||||||||||||||||||||||||
paid
in capital
|
—
|
—
|
(12,126
|
)
|
—
|
—
|
12,126
|
—
|
—
|
||||||||||||||||
Amortization
of nonvested stock awards
|
—
|
—
|
8,669
|
—
|
—
|
—
|
—
|
8,669
|
|||||||||||||||||
Amortization
of stock option awards
|
—
|
—
|
7,084
|
—
|
—
|
—
|
—
|
7,084
|
|||||||||||||||||
Exercises
of stock options (415,938 shares)
|
—
|
—
|
7,298
|
—
|
—
|
—
|
—
|
7,298
|
|||||||||||||||||
Tax
benefit from stock transactions
|
—
|
—
|
8,205
|
—
|
—
|
—
|
—
|
8,205
|
|||||||||||||||||
Issuance
of bonus stock (62,121 shares)
|
—
|
—
|
1,402
|
—
|
—
|
—
|
—
|
1,402
|
|||||||||||||||||
Issuance
of restricted stock (409,759 shares)
|
—
|
—
|
(26,679
|
)
|
—
|
26,679
|
—
|
—
|
—
|
||||||||||||||||
Common
stock redeemed (47,544 shares)
|
—
|
—
|
—
|
—
|
(2,624
|
)
|
—
|
—
|
(2,624
|
)
|
|||||||||||||||
Balance,
September 30, 2006
|
$
|
—
|
$
|
42
|
$
|
528,376
|
$
|
1,362,958
|
$
|
(189,453
|
)
|
$
|
—
|
$
|
—
|
$
|
1,701,923
|
Year
Ended
September
30,
|
||||||||||
2006
|
|
2005
|
2004
|
|||||||
Cash
flows from operating activities:
|
||||||||||
Net
income
|
$
|
388,761
|
$
|
262,524
|
$
|
235,811
|
||||
Adjustments
to reconcile net income to net cash
|
||||||||||
used
in operating activities:
|
||||||||||
Depreciation
and amortization
|
10,304
|
9,229
|
8,374
|
|||||||
Stock-based
compensation expense
|
15,753
|
11,945
|
7,381
|
|||||||
Goodwill
impairment charge
|
—
|
130,235
|
—
|
|||||||
Impairment
and write-off of inventory-related assets
|
43,477
|
5,511
|
3,180
|
|||||||
Deferred
income tax provision (benefit)
|
41,487
|
(54,631
|
)
|
(22,740
|
)
|
|||||
Tax
benefit from stock transactions
|
—
|
11,551
|
8,127
|
|||||||
Equity
in loss (earnings) of unconsolidated joint ventures
|
772
|
(5,021
|
)
|
(1,561
|
)
|
|||||
Cash
distributions of income from unconsolidated joint ventures
|
352
|
5,844
|
—
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
Increase
in accounts receivable
|
(171,251
|
)
|
(91,306
|
)
|
(4,571
|
)
|
||||
Increase
in inventory
|
(430,345
|
)
|
(572,114
|
)
|
(413,705
|
)
|
||||
Increase
in residential mortgage loans available-for-sale
|
(92,157
|
)
|
—
|
—
|
||||||
Increase
in other assets
|
(19,462
|
)
|
(16,775
|
)
|
(16,828
|
)
|
||||
(Decrease)/increase
in trade accounts payable
|
(492
|
)
|
18,336
|
(2,234
|
)
|
|||||
(Decrease)/increase
in other liabilities
|
(92,342
|
)
|
199,076
|
123,210
|
||||||
Other
changes
|
680
|
1,333
|
1,837
|
|||||||
Net
cash used in operating activities
|
(304,463
|
)
|
(84,263
|
)
|
(73,719
|
)
|
||||
Cash
flows from investing activities:
|
||||||||||
Capital
expenditures
|
(11,542
|
)
|
(13,448
|
)
|
(10,271
|
)
|
||||
Investments
in unconsolidated joint ventures
|
(49,458
|
)
|
(40,619
|
)
|
(25,844
|
)
|
||||
Changes
in restricted cash
|
(9,873
|
)
|
—
|
—
|
||||||
Distributions
from and proceeds from sale
|
||||||||||
of
unconsolidated joint ventures
|
4,655
|
5,597
|
5,639
|
|||||||
Net
cash used in investing activities
|
(66,218
|
)
|
(48,470
|
)
|
(30,476
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from term loan
|
—
|
—
|
200,000
|
|||||||
Repayment
of term loan
|
—
|
(200,000
|
)
|
(200,000
|
)
|
|||||
Borrowings
under credit facilities
|
1,937,528
|
439,700
|
—
|
|||||||
Repayment
of credit facilities
|
(1,842,647
|
)
|
(439,700
|
)
|
—
|
|||||
Repayment
of other notes payable
|
(20,934
|
)
|
(16,776
|
)
|
—
|
|||||
Borrowings
under senior and junior notes payable
|
378,093
|
346,786
|
380,000
|
|||||||
Debt
issuance costs
|
(7,206
|
)
|
(4,958
|
)
|
(10,654
|
)
|
||||
Proceeds
from stock option exercises
|
7,298
|
5,875
|
5,362
|
|||||||
Common
stock redeemed
|
(2,624
|
)
|
(8,092
|
)
|
—
|
|||||
Treasury
stock purchases
|
(205,416
|
)
|
—
|
(17,546
|
)
|
|||||
Tax
benefit from stock transactions
|
8,205
|
—
|
—
|
|||||||
Dividends
paid
|
(16,144
|
)
|
(13,884
|
)
|
(5,459
|
)
|
||||
Net
cash provided by financing activities
|
236,153
|
108,951
|
351,703
|
|||||||
(Decrease)/increase
in cash and cash equivalents
|
(134,528
|
)
|
(23,782
|
)
|
247,508
|
|||||
Cash
and cash equivalents at beginning of year
|
297,098
|
320,880
|
73,372
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
162,570
|
$
|
297,098
|
$
|
320,880
|
||||
Supplemental
cash flow information:
|
||||||||||
Interest
paid
|
$
|
111,501
|
$
|
79,088
|
$
|
65,237
|
||||
Income
taxes paid
|
$
|
228,181
|
$
|
233,965
|
$
|
170,475
|
||||
Supplemental
disclosure of non-cash activity:
|
||||||||||
Increase
in consolidated inventory not owned
|
$
|
164,540
|
$
|
—
|
$
|
188,585
|
||||
Land
acquired through issuance of notes payable
|
$
|
64,144
|
$
|
40,608
|
$
|
21,502
|
Buildings
|
15
–
30
years
|
Machinery
and equipment
|
3 –
10 years
|
Information
systems
|
5
years
|
Furniture
and fixtures
|
3 –
7 years
|
Leasehold
improvements
|
Lesser
of the lease term or the
estimated
useful life of the asset
|
Year
Ended September 30,
|
|||||||
2005
|
2004
|
||||||
Net
income, as reported
|
$
|
262,524
|
$
|
235,811
|
|||
Add:
Stock-based employee compensation expense
included in reported net income, net of
related tax effects
|
7,376
|
4,503
|
|||||
Deduct:
Total stock-based employee compensation
expense determined under fair value
based method for all awards, net of related
tax effects
|
(10,341
|
)
|
(7,521
|
)
|
|||
Pro
forma net income
|
$
|
259,559
|
$
|
232,793
|
|||
Earnings
per share:
|
|||||||
Basic
- as reported
|
$
|
6.49
|
$
|
5.91
|
|||
Basic
- pro forma
|
$
|
6.41
|
$
|
5.84
|
|||
|
|||||||
Diluted
- as reported
|
$
|
5.87
|
$
|
5.59
|
|||
Diluted
- pro forma
|
$
|
5.85
|
$
|
5.55
|
September
30,
|
|||||||
2006
|
2005
|
||||||
Homes
under construction
|
$
|
1,368,056
|
$
|
1,040,193
|
|||
Development
projects in progress
|
1,623,819
|
1,519,554
|
|||||
Unimproved
land held for future development
|
12,213
|
44,809
|
|||||
Model
homes
|
44,803
|
66,526
|
|||||
Consolidated
inventory not owned
|
471,441
|
230,083
|
|||||
$
|
3,520,332
|
$
|
2,901,165
|
Year
Ended September 30,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Capitalized
interest in inventory, beginning
of year
|
$
|
51,411
|
$
|
44,121
|
$
|
34,285
|
||||
Interest
incurred and capitalized
|
120,965
|
89,678
|
76,035
|
|||||||
Capitalized
interest amortized to
cost of sales
|
(96,242
|
)
|
(82,388
|
)
|
(66,199
|
)
|
||||
Capitalized
interest in inventory, end
of year
|
$
|
76,134
|
$
|
51,411
|
$
|
44,121
|
September
30,
|
|||||||
2006
|
2005
|
||||||
Land
and buildings
|
$
|
5,572
|
$
|
5,502
|
|||
Leasehold
improvements
|
11,260
|
8,157
|
|||||
Machinery
and equipment
|
26,122
|
25,708
|
|||||
Information
systems
|
21,088
|
19,441
|
|||||
Furniture
and fixtures
|
14,260
|
13,884
|
|||||
78,302
|
72,692
|
||||||
Less:
Accumulated depreciation
|
(48,837
|
)
|
(44,325
|
)
|
|||
Property,
plant and equipment, net
|
$
|
29,465
|
$
|
28,367
|
|||
Debt
|
Due
|
2006
|
2005
|
|||||||
Warehouse
Line
|
January
2007
|
$
|
94,881
|
$
|
—
|
|||||
Revolving
Credit Facility
|
August
2009
|
—
|
—
|
|||||||
8
5/8% Senior Notes*
|
May
2011
|
200,000
|
200,000
|
|||||||
8
3/8% Senior Notes*
|
April
2012
|
350,000
|
350,000
|
|||||||
6
1/2% Senior Notes*
|
November
2013
|
200,000
|
200,000
|
|||||||
6
7/8% Senior Notes*
|
July
2015
|
350,000
|
350,000
|
|||||||
8
1/8% Senior Notes*
|
June
2016
|
275,000
|
—
|
|||||||
4
5/8% Convertible Senior Notes*
|
June
2024
|
180,000
|
180,000
|
|||||||
Junior
subordinated notes
|
July
2036
|
103,093
|
—
|
|||||||
Other
Notes Payable
|
Various
Dates
|
89,264
|
46,054
|
|||||||
Unamortized
debt discounts
|
(3,578
|
)
|
(4,118
|
)
|
||||||
Total
|
$
|
1,838,660
|
$
|
1,321,936
|
||||||
*
Collectively, the “Senior
Notes”
|
Year
Ending September 30,
|
||||
2007
|
$
|
112,533
|
||
2008
|
52,421
|
|||
2009
|
10,629
|
|||
2010
|
8,562
|
|||
2011
|
200,000
|
|||
Thereafter
|
1,458,093
|
|||
Total
|
$
|
1,842,238
|
Year
Ended September 30,
|
|
|||||||||
|
|
2006
|
|
2005
|
|
2004
|
||||
Current:
|
||||||||||
Federal
|
$
|
168,622
|
$
|
254,765
|
$
|
153,228
|
||||
State
|
18,901
|
31,682
|
22,427
|
|||||||
Deferred
|
36,930
|
(49,637
|
)
|
(24,891
|
)
|
|||||
Total
|
$
|
224,453
|
$
|
236,810
|
$
|
150,764
|
Year
Ended September 30,
|
|
|||||||||
|
|
2006
|
|
2005
|
|
2004
|
||||
Income
tax computed at statutory rate
|
$
|
214,625
|
$
|
174,767
|
$
|
135,298
|
||||
State
income taxes, net of federal
|
||||||||||
benefit
|
19,133
|
15,904
|
16,226
|
|||||||
Impairment
of non-deductible goodwill
|
—
|
45,582
|
—
|
|||||||
Section
199 tax benefit (1)
|
(5,866
|
)
|
—
|
—
|
||||||
Other
|
(3,439
|
)
|
557
|
(760
|
)
|
|||||
Total
|
$
|
224,453
|
$
|
236,810
|
$
|
150,764
|
September
30,
|
|
||||||
|
|
2006
|
|
2005
|
|||
Deferred
tax assets:
|
|||||||
Warranty
and other reserves
|
$
|
64,658
|
$
|
82,328
|
|||
Incentive
compensation
|
11,548
|
14,725
|
|||||
Property,
equipment and other assets
|
428
|
2,227
|
|||||
State
loss carryforwards
|
2,682
|
3,639
|
|||||
Other
|
3,781
|
3,570
|
|||||
Total
deferred tax assets
|
83,097
|
106,489
|
|||||
Deferred
tax liabilities:
|
|||||||
Inventory
adjustments
|
(20,188
|
)
|
(3,745
|
)
|
|||
Other
|
(3,067
|
)
|
(1,415
|
)
|
|||
Total
deferred tax liabilities
|
(23,255
|
)
|
(5,160
|
)
|
|||
Net
deferred tax assets
|
$
|
59,842
|
$
|
101,329
|
Year
Ending September 30,
|
||||
2007
|
$
|
25,692
|
||
2008
|
18,977
|
|||
2009
|
14,042
|
|||
2010
|
9,722
|
|||
2011
|
7,608
|
|||
Thereafter
|
9,038
|
|||
Total
|
$
|
85,079
|
Year
Ended September 30,
|
|
|||||||||
|
|
2006
|
|
2005
|
|
2004
|
||||
Basic:
|
||||||||||
Net
income
|
$
|
388,761
|
$
|
262,524
|
$
|
235,811
|
||||
Weighted
average number of common shares outstanding
|
39,812
|
40,468
|
39,879
|
|||||||
Basic
earnings per share
|
$
|
9.76
|
$
|
6.49
|
$
|
5.91
|
||||
Diluted:
|
||||||||||
Net
income
|
$
|
388,761
|
$
|
262,524
|
$
|
235,811
|
||||
Interest
on convertible debt –
net of taxes
|
5,367
|
5,325
|
1,616
|
|||||||
Net
income applicable to common stockholders
|
$
|
394,128
|
$
|
267,849
|
$
|
237,427
|
||||
Weighted
average number of common shares outstanding
|
39,812
|
40,468
|
39,879
|
|||||||
Effect
of dilutive securities:
|
||||||||||
Shares
issuable upon conversion of convertible debt
|
3,503
|
3,499
|
1,083
|
|||||||
Options
to acquire common stock
|
504
|
621
|
729
|
|||||||
Contingent
shares (performance based stock)
|
35
|
—
|
—
|
|||||||
Nonvested
restricted stock
|
491
|
1,046
|
794
|
|||||||
Diluted
weighted average number of common
|
||||||||||
shares
outstanding
|
44,345
|
45,634
|
42,485
|
|||||||
Diluted
earnings per share
|
$
|
8.89
|
$
|
5.87
|
$
|
5.59
|
Year
Ended September 30,
|
2006
|
|
2005
|
|
2004
|
|
|||||||||||||
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|||||||
Options
outstanding at beginning
of year
|
1,654,751
|
$
|
23.91
|
1,821,804
|
$
|
19.59
|
2,378,145
|
$
|
13.83
|
||||||||||
Granted
|
945,500
|
67.03
|
289,250
|
38.54
|
310,164
|
32.91
|
|||||||||||||
Exercised
|
(415,938
|
)
|
17.55
|
(412,125
|
)
|
14.26
|
(778,401
|
)
|
6.89
|
||||||||||
Forfeited
|
(48,741
|
)
|
42.06
|
(44,178
|
)
|
32.05
|
(88,104
|
)
|
23.07
|
||||||||||
Options
outstanding at end
of year
|
2,135,572
|
43.82
|
1,654,751
|
23.91
|
1,821,804
|
19.59
|
|||||||||||||
Options
exercisable at end
of year
|
681,753
|
$
|
18.19
|
577,050
|
$
|
15.45
|
598,860
|
$
|
7.25
|
Range
of
Exercise
Prices
|
|
Number
Outstanding
|
|
Weighted
Average
Contractual
Remaining
Life
(Years)
|
|
Weighted
Average
Exercise
Price
|
|
Number
Exercisable
|
|
Weighted
Average
Contractual
Remaining
Life
(Years)
|
|
Weighted
Average
Exercise
Price
|
|||||||
$6
- $9
|
225,093
|
3.86
|
$
|
7.89
|
225,093
|
3.86
|
$
|
7.89
|
|||||||||||
$18
- $21
|
263,406
|
6.16
|
20.60
|
263,406
|
6.16
|
20.60
|
|||||||||||||
$24
- $29
|
193,254
|
5.54
|
26.90
|
193,254
|
5.54
|
26.90
|
|||||||||||||
$30
- $39
|
515,118
|
4.71
|
35.37
|
—
|
—
|
—
|
|||||||||||||
$65
- $66
|
214,928
|
6.12
|
62.10
|
—
|
—
|
—
|
|||||||||||||
$68
- $69
|
723,773
|
6.35
|
68.56
|
—
|
—
|
—
|
|||||||||||||
$6
- $69
|
2,135,572
|
5.57
|
$
|
43.82
|
681,753
|
5.22
|
$
|
18.19
|
Shares
|
|
Weighted
Average
Fair
Value
|
|||||
Beginning
of year
|
739,137
|
$
|
36.79
|
||||
Granted
|
409,759
|
66.19
|
|||||
Vested
|
(161,851
|
)
|
27.36
|
||||
Forfeited
|
(12,588
|
)
|
40.91
|
||||
End
of year
|
974,457
|
$
|
50.66
|
Fiscal
Year Ended September 30,
|
|
|||||||||
|
|
2006
|
|
2005
|
|
2004
|
||||
Balance
at beginning of year
|
$
|
80,708
|
$
|
42,173
|
9,200
|
|||||
(Reductions)
provisions
|
(21,700
|
)
|
55,000
|
43,858
|
||||||
Payments
|
(11,304
|
)
|
(16,465
|
)
|
(10,885
|
)
|
||||
Balance
at end of year
|
$
|
47,704
|
$
|
80,708
|
42,173
|
|
|
Fiscal
Year Ended September 30, |
|
|||||||
|
|
2006
|
|
2005
|
|
2004
|
||||
Balance
at beginning of year
|
$
|
138,033
|
$
|
86,163
|
$
|
40,473
|
||||
Provisions
(1)
|
17,395 |
98,307
|
80,291
|
|||||||
Payments
|
(54,395 | ) |
(46,437
|
)
|
(34,601
|
)
|
||||
Balance
at end of year
|
$
|
101,033
|
$
|
138,033
|
$
|
86,163
|
Year
Ended September 30,
|
|
|||||||||
|
|
2006
|
|
2005
|
|
2004
|
||||
Revenue
|
||||||||||
West
|
$
|
1,874,118
|
$
|
1,946,822
|
$
|
1,553,870
|
||||
Mid-Atlantic
|
965,874
|
848,083
|
559,746
|
|||||||
Florida
|
694,803
|
598,950
|
390,380
|
|||||||
Southeast
|
900,663
|
761,030
|
646,235
|
|||||||
Other
homebuilding
|
980,347
|
802,435
|
718,613
|
|||||||
Financial
Services
|
65,808
|
54,310
|
51,140
|
|||||||
Intercompany
elimination
|
(19,610
|
)
|
(16,277
|
)
|
(12,875
|
)
|
||||
Consolidated
total
|
$
|
5,462,003
|
$
|
4,995,353
|
$
|
3,907,109
|
||||
Operating
income (loss)
|
||||||||||
West
|
$
|
280,731
|
$
|
421,968
|
$
|
280,898
|
||||
Mid-Atlantic
|
213,279
|
206,627
|
111,763
|
|||||||
Florida
|
143,380
|
97,263
|
51,105
|
|||||||
Southeast
|
86,451
|
49,098
|
45,952
|
|||||||
Other
homebuilding
|
(4,301
|
)
|
5,902
|
29,425
|
||||||
Financial
Services
|
17,226
|
15,627
|
19,299
|
|||||||
Segment
operating income
|
736,766
|
796,485
|
538,442
|
|||||||
Corporate
and unallocated (a)
|
(125,091
|
)
|
(309,567
|
)
|
(160,507
|
)
|
||||
Total
operating income
|
611,675
|
486,918
|
377,935
|
|||||||
Equity
in (loss) earnings of unconsolidated
joint ventures
|
(772
|
)
|
5,021
|
1,561
|
||||||
Other
income, net
|
2,311
|
7,395
|
7,079
|
|||||||
Income
before income taxes
|
$
|
613,214
|
$
|
499,334
|
$
|
386,575
|
September
30,
|
|
||||||
|
|
2006
|
|
2005
|
|||
Assets
(c)
|
|||||||
West
|
$
|
1,392,660
|
$
|
992,959
|
|||
Mid-Atlantic
|
562,332
|
520,787
|
|||||
Florida
|
418,915
|
308,102
|
|||||
Southeast
|
433,922
|
376,417
|
|||||
Other
homebuilding
|
632,437
|
626,032
|
|||||
Financial
Services
|
205,684
|
92,730
|
|||||
Corporate
and unallocated (b)
|
913,481
|
853,489
|
|||||
Consolidated
total
|
$
|
4,559,431
|
$
|
3,770,516
|
(a)
|
Corporate
and unallocated includes the amortization of capitalized interest
and
numerous shared services functions that benefit all segments, the
costs of
which are not allocated to the operating segments reported above
including
information technology, national sourcing and purchasing, treasury,
corporate finance, legal, branding and other national marketing costs.
Fiscal 2006 includes a reduction of $21.7 million in the accrual
and costs
related to construction defect claims for water intrusion in Indiana
(See
Note 13). Fiscal 2005 and 2004 include $55.0 million and $43.9 million,
respectively, of warranty expenses associated with construction defect
claims for water intrusion in Indiana. Fiscal 2005 also includes
a $130.2
million non-cash, non-tax deductible goodwill impairment charge to
write-off substantially all of the goodwill allocated to certain
underperforming markets in Indiana, Ohio and Kentucky in our Other
homebuilding segment ($116.6 million) and Charlotte, North Carolina
in our
Southeast segment ($13.6 million).
|
(b)
|
Primarily
consists of cash and cash equivalents, consolidated inventory not
owned,
deferred taxes, and capitalized interest and other corporate items
that
are not allocated to the
segments.
|
(c)
|
Segment
assets as of both September 30, 2006 and 2005 include goodwill
assigned
from prior acquisitions as follows: $55.5 million in the West,
$23.3
million in the Mid-Atlantic, $13.7 million in Florida, $17.6
million in
the Southeast and $11.2 million in Other homebuilding. There
was no change
in goodwill from September 30, 2005 to September 30,
2006.
|
|
Beazer
Homes
USA,
Inc.
|
|
Guarantor Subsidiaries |
|
Beazer
Mortgage
Corp.
|
|
Other
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments |
|
Consolidated
Beazer
Homes
USA,
Inc.
|
||||||||
ASSETS | |||||||||||||||||||
Cash
and cash equivalents
|
$
|
254,915
|
$
|
(105,158
|
)
|
$
|
5,664
|
$
|
7,149
|
$
|
—
|
$
|
162,570
|
||||||
Restricted
cash
|
—
|
4,873
|
5,000
|
—
|
—
|
9,873
|
|||||||||||||
Accounts
receivable
|
—
|
328,740
|
4,329
|
502
|
—
|
333,571
|
|||||||||||||
Owned
inventory
|
—
|
3,048,891
|
—
|
—
|
—
|
3,048,891
|
|||||||||||||
Consolidated
inventory not owned
|
—
|
471,441
|
—
|
—
|
—
|
471,441
|
|||||||||||||
Residential
mortgage loans available-for-sale
|
—
|
—
|
92,157
|
—
|
—
|
92,157
|
|||||||||||||
Investment
in and advances to unconsolidated joint ventures
|
3,093
|
119,706
|
—
|
—
|
—
|
122,799
|
|||||||||||||
Deferred
tax assets
|
59,345
|
—
|
497
|
—
|
—
|
59,842
|
|||||||||||||
Property,
plant and equipment, net
|
—
|
28,454
|
954
|
57
|
—
|
29,465
|
|||||||||||||
Goodwill
|
—
|
121,368
|
—
|
—
|
—
|
121,368
|
|||||||||||||
Investments
in subsidiaries
|
1,829,969
|
—
|
—
|
—
|
(1,829,969
|
)
|
—
|
||||||||||||
Intercompany
|
1,250,702
|
(1,328,310
|
)
|
52,397
|
25,211
|
—
|
—
|
||||||||||||
Other
assets
|
22,751
|
74,751
|
2,419
|
7,533
|
—
|
107,454
|
|||||||||||||
Total
Assets
|
$
|
3,420,775
|
$
|
2,764,756
|
$
|
163,417
|
$
|
40,452
|
$
|
(1,829,969
|
)
|
$
|
4,559,431
|
||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||
Trade
accounts payable
|
$
|
—
|
$
|
140,902
|
$
|
132
|
$
|
97
|
$
|
—
|
$
|
141,131
|
|||||||
Other
liabilities
|
66,296
|
456,706
|
9,166
|
14,846
|
—
|
547,014
|
|||||||||||||
Intercompany
|
(1,959
|
)
|
—
|
—
|
1,959
|
—
|
—
|
||||||||||||
Obligations
related to consolidated inventory not owned
|
—
|
330,703
|
—
|
—
|
—
|
330,703
|
|||||||||||||
Senior
notes (net of discounts of $3,578)
|
1,551,422
|
—
|
—
|
—
|
—
|
1,551,422
|
|||||||||||||
Junior
subordinated notes
|
103,093
|
—
|
—
|
—
|
—
|
103,093
|
|||||||||||||
Warehouse
line
|
—
|
—
|
94,881
|
—
|
—
|
94,881
|
|||||||||||||
Other
notes payable
|
—
|
89,264
|
—
|
—
|
—
|
89,264
|
|||||||||||||
Total
Liabilities
|
1,718,852
|
1,017,575
|
104,179
|
16,902
|
—
|
2,857,508
|
|||||||||||||
Stockholders’
Equity
|
1,701,923
|
1,747,181
|
59,238
|
23,550
|
(1,829,969
|
)
|
1,701,923
|
||||||||||||
Total
Liabilities and Stockholders’ Equity
|
$
|
3,420,775
|
$
|
2,764,756
|
$
|
163,417
|
$
|
40,452
|
$
|
(1,829,969
|
)
|
$
|
4,559,431
|
Beazer
Homes
USA,
Inc.
|
Guarantor Subsidiaries |
Beazer
Mortgage
Corp.
|
Other
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments |
Consolidated
Beazer
Homes
USA,
Inc.
|
||||||||||||||
ASSETS
|
|||||||||||||||||||
Cash
and cash equivalents
|
$
|
386,423
|
$
|
(90,238
|
)
|
$
|
230
|
$
|
683
|
$
|
—
|
$
|
297,098
|
||||||
Accounts
receivable
|
—
|
157,523
|
2,775
|
1,582
|
—
|
161,880
|
|||||||||||||
Owned
inventory
|
—
|
2,663,792
|
—
|
—
|
7,290
|
2,671,082
|
|||||||||||||
Consolidated
inventory not owned
|
—
|
230,083
|
—
|
—
|
—
|
230,083
|
|||||||||||||
Investment
in and advances to unconsolidated joint
ventures
|
—
|
78,571
|
—
|
—
|
—
|
78,571
|
|||||||||||||
Deferred
tax assets
|
101,329
|
—
|
—
|
—
|
—
|
101,329
|
|||||||||||||
Property,
plant and equipment, net
|
—
|
27,550
|
817
|
—
|
—
|
28,367
|
|||||||||||||
Goodwill
|
—
|
12
1,368
|
—
|
—
|
—
|
121,368
|
|||||||||||||
Investments
in subsidiaries
|
1,639,405
|
—
|
—
|
—
|
(1,639,405
|
)
|
—
|
||||||||||||
Intercompany
|
745,018
|
(820,519
|
)
|
53,074
|
22,427
|
—
|
—
|
||||||||||||
Other
assets
|
20,123
|
49,473
|
293
|
10,849
|
—
|
80,738
|
|||||||||||||
Total
Assets
|
$
|
2,892,298
|
$
|
2,417,603
|
$
|
57,189
|
$
|
35,541
|
$
|
(1,632,115
|
)
|
$
|
3,770,516
|
||||||
LIABILITIES
AND STOCKHOLDERS’
EQUITY
|
|||||||||||||||||||
Trade
accounts payable
|
$
|
—
|
$
|
141,312
|
$
|
242
|
$
|
69
|
$
|
—
|
$
|
141,623
|
|||||||
Other
liabilities
|
115,023
|
503,352
|
2,162
|
12,827
|
2,742
|
636,106
|
|||||||||||||
Intercompany
|
(3,295
|
)
|
—
|
—
|
3,295
|
—
|
—
|
||||||||||||
Obligations
related to consolidated inventory not
owned
|
—
|
166,163
|
—
|
—
|
—
|
166,163
|
|||||||||||||
Senior
notes (net of discounts of $4,118)
|
1,275,882
|
—
|
—
|
—
|
—
|
1,275,882
|
|||||||||||||
Other
notes payable
|
—
|
46,054
|
—
|
—
|
—
|
46,054
|
|||||||||||||
Total
Liabilities
|
1,387,610
|
856,881
|
2,404
|
16,191
|
2,742
|
2,265,828
|
|||||||||||||
|
|
|
|
|
|
||||||||||||||
Stockholders’
Equity
|
1,504,688
|
1,560,722
|
54,785
|
19,350
|
(1,634,857
|
)
|
1,504,688
|
||||||||||||
Total
Liabilities and Stockholders’ Equity
|
$
|
2,892,298
|
$
|
2,417,603
|
$
|
57,189
|
$
|
35,541
|
$
|
(1,632,115
|
)
|
$
|
3,770,516
|
Beazer
Homes
USA,
Inc.
|
Guarantor Subsidiaries |
Beazer
Mortgage
Corp.
|
Other
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments |
Consolidated
Beazer
Homes
USA,
Inc.
|
||||||||||||||
For
the fiscal year ended September 30, 2006
|
|||||||||||||||||||
Total
revenue
|
$
|
—
|
$
|
5,418,189
|
$
|
54,344
|
$
|
9,080
|
$
|
(19,610
|
)
|
$
|
5,462,003
|
||||||
Home
construction and land sales
expenses
|
96,242
|
4,124,686
|
—
|
—
|
(19,610
|
)
|
4,201,318
|
||||||||||||
Gross
profit
|
(96,242
|
)
|
1,293,503
|
54,344
|
9,080
|
—
|
1,260,685
|
||||||||||||
Selling,
general and administrative
expenses
|
—
|
602,578
|
44,093
|
2,339
|
—
|
649,010
|
|||||||||||||
Operating
income
|
(96,242
|
)
|
690,925
|
10,251
|
6,741
|
—
|
611,675
|
||||||||||||
Equity
in loss of unconsolidated joint
ventures
|
—
|
(772
|
)
|
—
|
—
|
—
|
(772
|
)
|
|||||||||||
Royalty
and management fee
expenses
|
—
|
3,098
|
(3,098
|
)
|
—
|
—
|
—
|
||||||||||||
Other
income, net
|
—
|
2,311
|
—
|
—
|
—
|
2,311
|
|||||||||||||
Income
before income taxes
|
(96,242
|
)
|
695,562
|
7,153
|
6,741
|
—
|
613,214
|
||||||||||||
Provision
for income taxes
|
(36,332
|
)
|
255,544
|
2,700
|
2,541
|
—
|
224,453
|
||||||||||||
Equity
in income of subsidiaries
|
448,671
|
—
|
—
|
—
|
(448,671
|
)
|
—
|
||||||||||||
Net
income
|
$
|
388,761
|
$
|
440,018
|
$
|
4,453
|
$
|
4,200
|
$
|
(448,671
|
)
|
$
|
388,761
|
||||||
For
the fiscal year ended September 30, 2005
|
|||||||||||||||||||
Total
revenue
|
$
|
—
|
$
|
4,949,699
|
$
|
54,310
|
$
|
7,621
|
$
|
(16,277
|
)
|
$
|
4,995,353
|
||||||
Home
construction and land sales
expenses
|
89,678
|
3,749,899
|
—
|
—
|
(16,277
|
)
|
3,823,300
|
||||||||||||
Gross
profit
|
(89,678
|
)
|
1,199,800
|
54,310
|
7,621
|
—
|
1,172,053
|
||||||||||||
Selling,
general and administrative
expenses
|
—
|
521,639
|
38,683
|
1,868
|
(7,290
|
)
|
554,900
|
||||||||||||
Goodwill
impairment
|
—
|
130,235
|
—
|
—
|
—
|
130,235
|
|||||||||||||
Operating
income
|
(89,678
|
)
|
547,926
|
15,627
|
5,753
|
7,290
|
486,918
|
||||||||||||
Income
before income taxes
|
—
|
5,021
|
—
|
—
|
—
|
5,021
|
|||||||||||||
Other
income, net
|
—
|
7,395
|
—
|
—
|
—
|
7,395
|
|||||||||||||
Income
before income taxes
|
(89,678
|
)
|
560,342
|
15,627
|
5,753
|
7,290
|
499,334
|
||||||||||||
Provision
for income taxes
|
(33,732
|
)
|
259,758
|
5,878
|
2,164
|
2,742
|
236,810
|
||||||||||||
Equity
in income of subsidiaries
|
318,470
|
—
|
—
|
—
|
(318,470
|
)
|
—
|
||||||||||||
Net
income
|
$
|
262,524
|
$
|
300,584
|
$
|
9,749
|
$
|
3,589
|
$
|
(313,922
|
)
|
$
|
262,524
|
||||||
For
the fiscal year ended September 30, 2004
|
|||||||||||||||||||
Total
revenue
|
$
|
—
|
$
|
3,899,971
|
$
|
—
|
$
|
7,138
|
$
|
—
|
$
|
3,907,109
|
|||||||
Home
construction and land sales
expenses
|
76,035
|
3,023,697
|
—
|
—
|
—
|
3,099,732
|
|||||||||||||
Gross
profit
|
(76,035
|
)
|
876,274
|
—
|
7,138
|
—
|
807,377
|
||||||||||||
Selling,
general and administrative
expenses
|
—
|
436,726
|
|
2,552
|
(9,836
|
)
|
429,442
|
||||||||||||
Operating
income
|
(76,035
|
)
|
439,548
|
—
|
4,586
|
9,836
|
377,935
|
||||||||||||
Equity
in income of unconsolidated joint
ventures
|
—
|
1,561
|
—
|
—
|
—
|
1,561
|
|||||||||||||
Other
income, net
|
—
|
7,079
|
—
|
—
|
—
|
7,079
|
|||||||||||||
Income
before income taxes
|
(76,035
|
)
|
448,188
|
—
|
4,586
|
9,836
|
386,575
|
||||||||||||
Provision
for income taxes
|
(29,654
|
)
|
174,794
|
—
|
1,788
|
3,836
|
150,764
|
||||||||||||
Equity
in income of subsidiaries
|
282,192
|
—
|
—
|
—
|
(282,192
|
)
|
—
|
||||||||||||
Net income | $ | 235,811 |
$
|
273,394
|
$
|
2,798
|
$
|
(276,192
|
)
|
$
|
235,811
|
Beazer
Homes
USA,
Inc.
|
Guarantor Subsidiaries |
Beazer
Mortgage
Corp.
(a)
|
Other
Non-Guarantor
Subsidiaries
|
Consolidating
Adjustments |
Consolidated
Beazer
Homes
USA,
Inc.
|
||||||||||||||
Fot
the fiscal year ended September 30, 2006
|
|||||||||||||||||||
Net
cash (used)/provided by operating
activities
|
$
|
(62,959
|
)
|
$
|
(168,562
|
)
|
$
|
(83,562
|
)
|
$
|
10,620
|
$
|
—
|
$
|
(304,463
|
)
|
|||
Cash
flows from investing
activities:
|
|
|
|
|
|
|
|||||||||||||
Capital
expenditures
|
—
|
(10,880
|
)
|
(630
|
)
|
(32
|
)
|
—
|
(11,542
|
)
|
|||||||||
Investments
in unconsolidated joint
ventures
|
(3,093
|
)
|
(46,365
|
)
|
—
|
—
|
—
|
(49,458
|
)
|
||||||||||
Changes
in restricted cash
|
—
|
(4,873
|
)
|
(5,000
|
)
|
—
|
—
|
(9,873
|
)
|
||||||||||
Distributions
from and proceeds from sale of
|
|
|
|
|
|
|
|||||||||||||
unconsolidated
joint ventures
|
—
|
4,655
|
—
|
—
|
—
|
4,655
|
|||||||||||||
Net
cash used in investing
activities
|
(3,093
|
)
|
(57,463
|
)
|
(5,630
|
)
|
(32
|
)
|
—
|
(66,218
|
)
|
||||||||
Cash
flows from financing
activities:
|
|
|
|
|
|
|
|||||||||||||
Borrowings
under credit facilities
|
1,634,100
|
—
|
303,428
|
—
|
—
|
1,937,528
|
|||||||||||||
Repayment
of credit facilities
|
(1,634,100
|
)
|
—
|
(208,547
|
)
|
—
|
—
|
(1,842,647
|
)
|
||||||||||
Borrowings
under senior and junior notes
payable
|
378,093
|
—
|
—
|
—
|
—
|
378,093
|
|||||||||||||
Repayment
of other notes payable
|
—
|
(20,934
|
)
|
—
|
—
|
—
|
(20,934
|
)
|
|||||||||||
Advances
(to) from subsidiaries
|
(228,594
|
)
|
232,039
|
677
|
(4,122
|
)
|
—
|
—
|
|||||||||||
Debt
issuance costs
|
(6,274
|
)
|
—
|
(932
|
)
|
—
|
—
|
(7,206
|
)
|
||||||||||
Proceeds
from stock option
exercises
|
7,298
|
—
|
—
|
—
|
—
|
7,298
|
|||||||||||||
Common
stock redeemed
|
(2,624
|
)
|
—
|
—
|
—
|
—
|
(2,624
|
)
|
|||||||||||
Treasury
stock purchases
|
(205,416
|
)
|
—
|
—
|
—
|
—
|
(205,416
|
)
|
|||||||||||
Tax
benefit from stock
transactions
|
8,205
|
—
|
—
|
—
|
—
|
8,205
|
|||||||||||||
Dividends
paid
|
(16,144
|
)
|
—
|
—
|
—
|
—
|
(16,144
|
)
|
|||||||||||
Net
cash provided/(used) by financing
activities
|
(65,456
|
)
|
211,105
|
94,626
|
(4,122
|
)
|
—
|
236,153
|
|||||||||||
(Decrease)/increase
in cash and cash
equivalents
|
(131,508
|
)
|
(14,920
|
)
|
5,434
|
6,466
|
—
|
(134,528
|
)
|
||||||||||
Cash
and cash equivalents at beginning of
year
|
386,423
|
(90,238
|
)
|
230
|
683
|
—
|
297,098
|
||||||||||||
Cash
and cash equivalents at end of
year
|
$
|
254,915
|
$
|
(105,158
|
)
|
$
|
5,664
|
$
|
7,149
|
$
|
—
|
$
|
162,570
|
||||||
For
the fiscal year ended September 30, 2005
|
|||||||||||||||||||
Net
cash (used)/provided by operating
activities
|
$
|
(124,650
|
)
|
$
|
29,390
|
$
|
6,783
|
$
|
4,214
|
$
|
—
|
$
|
(84,263
|
)
|
|||||
Cash
flows from investing
activities:
|
|
|
|
|
|
|
|||||||||||||
Capital
expenditures
|
—
|
(13,089
|
)
|
(359
|
)
|
—
|
—
|
(13,448
|
)
|
||||||||||
Investments
in unconsolidated joint
ventures
|
—
|
(40,619
|
)
|
—
|
—
|
—
|
(40,619
|
)
|
|||||||||||
Distributions
from and proceeds from sale of
|
|
|
|
|
|
|
|||||||||||||
unconsolidated
joint ventures
|
—
|
5,597
|
—
|
—
|
—
|
5,597
|
|||||||||||||
Net
cash used in investing
activities
|
—
|
(48,111
|
)
|
(359
|
)
|
—
|
—
|
(48,470
|
)
|
||||||||||
Cash
flows from financing
activities:
|
|
|
|
|
|
|
|||||||||||||
Repayment
of term loan
|
(200,000
|
)
|
—
|
—
|
—
|
—
|
(200,000
|
)
|
|||||||||||
Borrowings
under credit facility
|
439,700
|
—
|
—
|
—
|
—
|
439,700
|
|||||||||||||
Repayment
of credit facility
|
(439,700
|
)
|
—
|
—
|
—
|
—
|
(439,700
|
)
|
|||||||||||
Borrowings
under senior and junior notes
payable
|
346,786
|
—
|
—
|
—
|
—
|
346,786
|
|||||||||||||
Repayment
of other notes payable
|
—
|
(16,776
|
)
|
—
|
—
|
—
|
(16,776
|
)
|
|||||||||||
Advances
(to) from subsidiaries
|
(6,764
|
)
|
17,521
|
(6,887
|
)
|
(3,870
|
)
|
—
|
—
|
||||||||||
Debt
issuance costs
|
(4,958
|
)
|
—
|
—
|
—
|
—
|
(4,958
|
)
|
|||||||||||
Proceeds
from stock option
exercises
|
5,875
|
—
|
—
|
—
|
—
|
5,875
|
|||||||||||||
Common
stock redeemed
|
(8,092
|
)
|
—
|
—
|
—
|
—
|
(8,092
|
)
|
|||||||||||
Dividends
paid
|
(13,884
|
)
|
—
|
—
|
—
|
—
|
(13,884
|
)
|
|||||||||||
Net
cash provided/(used) by financing
activities
|
118,963
|
745
|
(6,887
|
)
|
(3,870
|
)
|
—
|
108,951
|
|||||||||||
(Decrease)/increase
in cash and cash
equivalents
|
(5,687
|
)
|
(17,976
|
)
|
(463
|
)
|
344
|
—
|
(23,782
|
)
|
|||||||||
Cash
and cash equivalents at beginning of
year
|
392,110
|
(72,262
|
)
|
693
|
339
|
—
|
320,880
|
||||||||||||
Cash
and cash equivalents at end of
year
|
$
|
386,423
|
$
|
(90,238
|
)
|
$
|
230
|
$
|
683
|
$
|
—
|
$
|
297,098
|
Beazer Homes |
Guarantor Subsidiaries |
Non-Guarantor Subsidiaries |
Consolidating
Adjustments |
Consolidated Beazer |
||||||||||||
For
the fiscal year ended September 30,
2004
|
||||||||||||||||
Net
cash provided/(used) by operating activities
|
$
|
12,169
|
$
|
(88,774
|
)
|
$
|
2,886
|
$
|
—
|
$
|
(73,719
|
)
|
||||
Cash
flows from investing activities:
|
||||||||||||||||
Capital
expenditures
|
—
|
(10,271
|
)
|
—
|
—
|
(10,271
|
)
|
|||||||||
Investments
in unconsolidated joint ventures
|
—
|
(25,844
|
)
|
—
|
—
|
(25,844
|
)
|
|||||||||
Distributions
from and proceeds from sale of
|
||||||||||||||||
unconsolidated
joint ventures
|
—
|
5,639
|
—
|
—
|
5,639
|
|||||||||||
Net
cash used in investing activities
|
—
|
(30,476
|
)
|
—
|
—
|
(30,476
|
)
|
|||||||||
Cash
flows from financing activities:
|
||||||||||||||||
Proceeds
of term loan
|
200,000
|
—
|
—
|
—
|
200,000
|
|||||||||||
Repayment
of term loan
|
(200,000
|
)
|
—
|
—
|
—
|
(200,000
|
)
|
|||||||||
Borrowings
under senior and junior notes payable
|
380,000
|
—
|
—
|
—
|
380,000
|
|||||||||||
Advances
(to) from subsidiaries
|
(82,516
|
)
|
87,760
|
(5,244
|
)
|
—
|
—
|
|||||||||
Debt
issuance costs
|
(10,654
|
)
|
—
|
—
|
—
|
(10,654
|
)
|
|||||||||
Proceeds
from stock option exercises
|
5,362
|
—
|
—
|
—
|
5,362
|
|||||||||||
Treasury
stock purchases
|
(17,546
|
)
|
—
|
—
|
—
|
(17,546
|
)
|
|||||||||
Dividends
paid
|
(5,459
|
)
|
—
|
—
|
—
|
(5,459
|
)
|
|||||||||
Net
cash provided/(used) by financing activities
|
269,187
|
87,760
|
(5,244
|
)
|
—
|
351,703
|
||||||||||
Increase
(decrease) in cash and cash equivalents
|
281,356
|
(31,490
|
)
|
(2,358
|
)
|
—
|
247,508
|
|||||||||
Cash
and cash equivalents at beginning of year
|
110,754
|
(40,079
|
)
|
2,697
|
—
|
73,372
|
||||||||||
Cash
and cash equivalents at end of year
|
$
|
392,110
|
$
|
(71,569
|
)
|
$
|
339
|
$
|
—
|
$
|
320,880
|
/s/ Deloitte & Touche LLP | |||
Atlanta,
Georgia
December
8, 2006
|
|
•
|
Pertain
to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions
of the
assets of the Company;
|
||
|
||||
|
•
|
Provide
reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance
with
generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance
with
authorizations of management and directors of the Company;
and
|
||
|
||||
|
•
|
Provide
reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of
the Company’s
assets that could have a material effect on the financial
statements.
|
/s/ Ian J. McCarthy | /s/ James O’Leary | ||
Ian
J. McCarthy
President
and Chief Executive Officer
December
8, 2006
|
James
O’Leary
Executive
Vice President and Chief Financial Officer
December
8, 2006
|
||
/s/ Deloitte & Touche | |||
Atlanta,
Georgia
December
8, 2006
|
|||
Quarter
Ended
|
|||||||||||||||
(in
thousands, except per share data)
|
December
31
|
|
March
31
|
|
June
30
|
|
September
30
|
||||||||
Fiscal
2006:
|
|||||||||||||||
Total
revenue
|
$
|
1,105,616
|
$
|
1,269,091
|
$
|
1,203,538
|
$
|
1,883,758
|
|||||||
Gross
profit
|
272,830
|
314,495
|
309,307
|
364,053
|
|||||||||||
Operating
income
|
139,752
|
164,702
|
155,895
|
151,326
|
|||||||||||
Net
income
|
89,913
|
104,351
|
102,624
|
91,873
|
|||||||||||
Net
income per common share:
|
|||||||||||||||
Basic
|
$
|
2.20
|
$
|
2.58
|
$
|
2.60
|
$
|
2.39
|
|||||||
Diluted
|
$
|
2.00
|
$
|
2.35
|
$
|
2.37
|
$
|
2.19
|
|||||||
Fiscal
2005:
|
|||||||||||||||
Total
revenue
|
$
|
911,827
|
$
|
976,248
|
$
|
1,293,227
|
$
|
1,814,051
|
|||||||
Gross
profit
|
215,472
|
180,191
|
329,528
|
446,862
|
|||||||||||
Operating
income before goodwill impairment
|
110,878
|
72,121
|
178,637
|
255,517
|
|||||||||||
Goodwill
impairment
|
—
|
130,235
|
(a)
|
—
|
—
|
||||||||||
Operating
income (loss)
|
110,878
|
(58,114
|
) |
(a)
|
178,637
|
255,517
|
|||||||||
Net
income (loss)
|
69,704
|
(84,344
|
) |
(a)
|
112,740
|
164,424
|
|||||||||
Net
income (loss) per common share:
|
|||||||||||||||
Basic
|
$
|
1.73
|
(b)
|
$
|
(2.09
|
) |
(a)
|
$
|
2.78
|
$
|
4.04
|
||||
Diluted
|
$
|
1.57
|
(b)
|
$
|
(2.09
|
) |
(a)
|
$
|
2.50
|
$
|
3.61
|
(a) |
In
March 2005, the Company recognized a $130.2 million non-cash,
non-tax-deductible goodwill impairment charge to write off substantially
all of the goodwill allocated to certain underperforming markets
in
Indiana, Ohio, Kentucky and North Carolina. In addition to the
operating
income reported above in accordance with GAAP, the Company has
provided
operating income before goodwill impairment, a non-GAAP financial
measure.
Management believes that this non-GAAP measure is useful to both
management and investors in the analysis of the Company’s financial
performance when comparing it to prior and subsequent periods and
that it
provides investors with an important perspective on the current
underlying
core operating performance of the business by isolating the impact
of the
goodwill impairment charge related to a prior
acquisition.
|
(b) |
Per
share information has been adjusted to give retrospective application
to
the March 2005 three-for-one stock split and for the inclusion
of shares
issuable upon conversion of our Co-Co’s in accordance with EITF 04-08, as
applicable.
|
(a) |
1.
Financial Statements
|
Page
herein
|
|
Consolidated
Statements of Income for the years ended September 30, 2006, 2005
and
2004.
|
37
|
Consolidated
Balance Sheets as of September 30, 2006 and 2005.
|
38
|
Consolidated
Statements of Stockholders’ Equity for the years ended September 30, 2006,
2005 and 2004.
|
39
|
Consolidated
Statements of Cash Flows for the years ended September 30, 2006,
2005 and
2004.
|
40
|
Notes
to Consolidated Financial Statements.
|
41
|
Exhibit
Number
|
Exhibit
Description
|
||||||
3.1
|
—
|
Amended
and Restated Certificate of Incorporation of the Company - incorporated
herein by reference to Exhibit 3.1 of the Company’s Registration Statement
on Form S-4/A filed on March 12, 2002
|
|||||
3.2
|
—
|
Second
Amended and Restated Bylaws of the Company - incorporated herein
by
reference to Exhibit 3.2 of the Company’s Form 10-K for the year ended
September 30, 2004 (File No. 001-12822)
|
|||||
4.1
|
—
|
Indenture
dated as of May 21, 2001 among the Company and U.S. Bank Trust
National
Association, as trustee, related to the Company’s 8 ⅝% Senior Notes due
2011 - incorporated herein by reference to Exhibit 4.4 of the Company’s
Form 10-K for the year ended September 30, 2001 (File No.
001-12822)
|
|||||
4.2
|
—
|
Supplemental
Indenture (8 ⅝% Notes) dated as of May 21, 2001 among the Company, its
subsidiaries party thereto and U.S. Bank Trust National Association,
as
trustee - incorporated herein by reference to Exhibit 4.5 of the
Company’s
Form 10-K for the year ended September 30, 2001 (File No.
001-12822)
|
|||||
4.3
|
—
|
Form
of 8 ⅝% Senior Notes due 2011 - incorporated herein by reference to
Exhibit 4.6 of the Company’s Form 10-K for the year ended September 30,
2001 (File No. 001-12822)
|
|||||
4.4
|
—
|
Specimen
of Common Stock Certificate - incorporated herein by reference
to Exhibit
4.1 of the Company’s Registration Statement on Form S-1 initially filed on
December 6, 1993
|
|||||
4.5
|
—
|
Indenture
dated as of April 17, 2002 among Beazer, the Guarantors party thereto
and
U.S. Bank Trust National Association, as trustee, related to the
Company’s
8 ⅜% Senior Notes due 2012 - incorporated herein by reference to Exhibit
4.11 of the Company’s Registration Statement on Form S-4 filed on July 16,
2002
|
|||||
4.6
|
—
|
First
Supplemental Indenture dated as of April 17, 2002 among Beazer,
the
Guarantors party thereto and U.S. Bank Trust National Association,
as
trustee, related to the Company’s 8 ⅜% Senior Notes due 2012 -
incorporated herein by reference to Exhibit 4.12 of the Company’s
Registration Statement on Form S-4 filed on July 16,
2002
|
4.7
|
—
|
Form
of 8 ⅜% Senior Notes due 2012 - incorporated herein by reference to
Exhibit 4.14 of the Company’s Registration Statement on Form S-4 filed on
July 16, 2002
|
|||||
4.8
|
—
|
Second
Supplemental Indenture dated as of November 13, 2003 among Beazer,
the
Guarantors party thereto and U.S. Bank Trust National Association,
as
trustee, related to the Company’s 6 ½% Senior Notes due 2013 -
incorporated herein by reference to Exhibit 4.11 of the Company’s Form
10-K for the year ended September 30, 2003 (File No.
001-12822)
|
|||||
4.9
|
—
|
Form
of 6 ½% Senior Notes due 2013 - incorporated herein by reference to
Exhibit 4.12 of the Company’s Form 10-K for the year ended September 30,
2003 (File No. 001-12822)
|
|||||
4.10
|
—
|
|
Indenture
dated as of June 8, 2004 among Beazer, the Guarantors party thereto
and
SunTrust Bank, as trustee, related to the 4 ⅝% Convertible Senior Notes
due 2024 - incorporated herein by reference to Exhibit 4.1 of the
Company’s Form 10-Q for the quarter ended June 30, 2004 (File No.
001-12822)
|
||||
4.11
|
—
|
Form
of 4 ⅝% Convertible Senior Notes due 2024 - incorporated herein by
reference to Exhibit 4.2 of the Company’s Form 10-Q for the quarter ended
June 30, 2004 (File No. 001-12822)
|
|||||
4.12
|
—
|
Form
of 6 ⅞% Senior Notes due 2015 - incorporated herein by reference to
Exhibit 4.1 of the Company’s Form 8-K filed on June 13,
2005
|
|||||
4.13
|
—
|
Form
of Fifth Supplemental Indenture, dated as of June 8, 2005, by and
among
Beazer, the Subsidiary Guarantors party thereto and U.S. Bank National
Association, as trustee - incorporated herein by reference to Exhibit
4.11
of the Company’s Form 8-K filed on June 13, 2005
|
|||||
4.14
|
—
|
Credit
Agreement dated as of January 11, 2006 by and among Beazer Mortgage
Corporation as Borrower, the Lenders party thereto, Guaranty Bank
as
Agent, JPMorgan Chase Bank, N.A. as Syndication Agent and U.S.
Bank
National Association as Documentation Agent - incorporated herein
by
reference to Exhibit 10.1 of the Company’s Form 8-K filed on January 17,
2006 (File No. 001-12822)
|
|||||
4.15
|
—
|
Sixth
Supplemental Indenture, dated as of January 9, 2006, to the Trust
Indenture dated as of May 21, 2001 - incorporated herein by reference
to
Exhibit 99.1 of the Company’s Form 8-K filed on January 17, 2006 (File No.
001-12822)
|
|||||
4.16
|
—
|
Seventh
Supplement Indenture, dated as of January 9, 2006, to the Trust
Indenture
dated as of April 17, 2002 - incorporated herein by reference to
Exhibit
99.2 of the Company’s Form 8-K filed on January 17, 2006 (File No.
001-12822)
|
|||||
4.17
|
—
|
First
Amendment to Credit Agreement dated as of March 22, 2006, among
Beazer
Homes USA, Inc., as Borrower, the Lenders Parties Thereto and JPMorgan
Chase Bank, N.A. as Administrative Agent - incorporated herein
by
reference to Exhibit 10.1 of the Company’s Form 8-K filed on March 28,
2006 (File No. 001-12822)
|
|||||
4.18
|
—
|
Form
of Senior Note due 2016 - incorporated herein by reference to Exhibit
4.2
of the Company’s Form 8-K filed on June 8, 2006 (File No.
001-12822)
|
|||||
4.19
|
—
|
Form
of Eighth Supplemental Indenture, dated June 6, 2006, by and among
Beazer
Homes USA, Inc., the guarantors named therein and UBS Securities
LLC,
Citigroup Global Markets Inc., J.P. Morgan Securities, Inc., Wachovia
Capital Markets, LLC, Deutsche Bank Securities Inc., BNP Paribas
Securities Corp. and Greenwich Capital Markets - incorporated herein
by
reference to Exhibit 10.1 of the Company’s Form 8-K filed on June 8, 2006
(File No. 001-12822)
|
|||||
4.20
|
—
|
Form
of Junior Subordinated indenture between Beazer Homes USA, Inc.,
JPMorgan
Chase Bank, National Association, dated June 15, 2006 - incorporated
herein by reference to Exhibit 4.1 of the Company’s Form 8-K filed on June
21, 2006 (File No. 001-12822)
|
|||||
4.21
|
—
|
Form
of the Amended and Restated Trust Agreement among Beazer Homes
USA, Inc.,
JPMorgan Chase Bank, National Association, Chase Bank USA, National
Association and certain individuals named therein as Administrative
Trustees, dated June 15, 2006 - incorporated herein by reference
to
Exhibit 4.2 of the Company’s Form 8-K filed on June 21, 2006 (File No.
001-12822)
|
|||||
10.1*
|
—
|
Amended
and Restated 1994 Stock Incentive Plan - incorporated herein by
reference
to Exhibit 10.1 of the Company’s Form 10-K for the year ended September
30, 2005 (File No. 001-12822)
|
|||||
10.2*
|
—
|
Non-Employee
Director Stock Option Plan - incorporated herein by reference to
Exhibit
10.2 of the Company’s Form 10-K for the year ended September 30, 2001
(File No. 001-12822)
|
|||||
10.3*
|
—
|
Amended
and Restated 1999 Stock Incentive Plan - incorporated herein by
reference
to Exhibit 4.2 of the Company’s Form S-8 filed on June 17,
2004
|
|||||
10.4*
|
—
|
2005
Value Created Incentive Plan - incorporated herein by reference
to Exhibit
10.4 of the Company’s Form 10-K for the year ended September 30, 2004
(File No. 001-12822)
|
|||||
10.5*
|
—
|
Amended
and Restated Corporate Management Stock Purchase Program - incorporated
herein by reference to Exhibit 10.5 of the Company’s Form 10-K for the
year ended September 30, 2004 (File No.
001-12822)
|
10.6*
|
—
|
Customer
Survey Incentive Plan - incorporated herein by reference to Exhibit
10.6
of the Company’s Form 10-K for the year ended September 30, 2004 (File No.
001-12822)
|
|||||
10.7*
|
—
|
Director
Stock Purchase Program - incorporated herein by reference to Exhibit
10.7
of the Company’s Form 10-K for the year ended September 30, 2004 (File No.
001-12822)
|
|||||
10.8*
|
—
|
Form
of Stock Option and Restricted Stock Award Agreement - incorporated
herein
by reference to Exhibit 10.8 of the Company’s Form 10-K for the year ended
September 30, 2004 (File No. 001-12822)
|
|||||
10.9*
|
—
|
Form
of Stock Option Award Agreement - incorporated herein by reference
to
Exhibit 10.9 of the Company’s Form 10-K for the year ended September 30,
2004 (File No. 001-12822)
|
|||||
10.10-13
|
|
Amended
and Restated Employment Agreements dated as of September 1, 2004
-
incorporated herein by reference to Exhibits 10.01-10.03 and 10.05
of the
Company’s Form 8-K filed on September 1, 2004 (File No. 001-12822),
respectively:
|
|||||
10.10*
|
—
|
Ian
J. McCarthy
|
|||||
10.11*
|
—
|
Michael
H. Furlow
|
|||||
10.12*
|
—
|
James
O’Leary
|
|||||
10.13*
|
—
|
Michael
T. Rand
|
|||||
10.14-19
|
|
Amended
and Restated Supplemental Employment Agreements dated as of February
3,
2006 - incorporated herein by reference to Exhibits 10.1-10.4 ,
10.6 and
10.8 of the Company’s Form 10-Q for the quarter ended March 31, 2006 (File
No. 001-12822), respectively:
|
|||||
10.14*
|
—
|
Ian
J. McCarthy
|
|||||
10.15*
|
—
|
Michael
H. Furlow
|
|||||
10.16*
|
—
|
James
O’Leary
|
|||||
10.17*
|
—
|
Kenneth
J. Gary
|
|||||
10.18*
|
—
|
Cory
J. Boydston
|
|||||
10.19*
|
—
|
Michael
T. Rand
|
|||||
10.20-24
|
|
First
Amendment to Amended and Restated Employment Agreements dated as
of
February 3, 2006 - incorporated herein by reference to Exhibits
10.11-10.14 and 10.16 of the Company’s Form 10-Q for the quarter ended
March 31, 2006 (File No. 001-12822), respectively:
|
|||||
10.20*
|
—
|
Ian
J. McCarthy
|
|||||
10.21*
|
—
|
Michael
H. Furlow
|
|||||
10.22*
|
—
|
James
O’Leary
|
|||||
10.23*
|
—
|
Kenneth
J. Gary
|
|||||
10.24*
|
—
|
Michael
T. Rand
|
|||||
10.25*
|
—
|
Form
of Performance Shares Award Agreement dated as of February 2, 2006
-
incorporated herein by reference to Exhibit 10.18 of the Company’s Form
10-Q for the quarter ended March 31, 2006 (File No.
001-12822)
|
|||||
10.26*
|
—
|
Form
of Award Agreement dated as of February 2, 2006 - incorporated
herein by
reference to Exhibit 10.19 of the Company’s Form 10-Q for the quarter
ended March 31, 2006 (File No. 001-12822)
|
|||||
10.27*
|
—
|
2005
Executive Value Created Incentive Plan - incorporated herein by
reference
to Exhibit 10.1 of the Company’s Form 8-K filed on February 9, 2005 (File
No. 001-12822)
|
|||||
10.28
|
—
|
Purchase
Agreement for Sanford Homes of Colorado LLLP - incorporated herein
by
reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 10,
2001 (File No. 001-12822)
|
|||||
10.29
|
—
|
Credit
Agreement dated as of August 22, 2005 between the Company and JPMorgan
Chase Bank, NA, as Agent, Guaranty Bank, BNP Paribas and Wachovia
Bank,
National Association as Syndication Agents, The Royal Bank of Scotland
plc
as Documentation Agent, SunTrust Bank, Citicorp North America,
Inc. and
Washington Mutual Bank, FA, as Managing Agents, Comerica Bank,
PNC Bank,
National Association and UBS Loan Finance LLC as Co-Agents, and
J.P.
Morgan Securities Inc., as Lead Arranger and Sole Bookrunner -
incorporated herein by reference to Exhibit 10.1 of the Company’s Form 8-K
filed on August 24, 2005 (File No. 001-12822)
|
|||||
10.30*
|
—
|
Employment
Agreement dated as of March 14, 2005 for Kenneth J. Gary - incorporated
herein by reference to Exhibit 10.1 of the Company’s Form 8-K filed on
March 18, 2005 (File No. 001-12822)
|
|||||
21
|
—
|
Subsidiaries
of the Company
|
|||||
23
|
—
|
Consent
of Deloitte & Touche LLP
|
|||||
31.1
|
—
|
Certification
pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of
the
Sarbanes-Oxley Act of 2002
|
|||||
31.2
|
—
|
Certification
pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of
the
Sarbanes-Oxley Act of 2002
|
32.1
|
—
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
|||||
32.2
|
—
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
|
*
Represents a management contract or compensatory plan or
arrangement
|
(c) |
Exhibits
|
21
|
—
|
Subsidiaries
of the Company
|
23
|
—
|
Consent
of Deloitte & Touche LLP
|
31.1
|
—
|
Certification
pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of
the
Sarbanes-Oxley Act of 2002
|
31.2
|
—
|
Certification
pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of
the
Sarbanes-Oxley Act of 2002
|
32.1
|
—
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
32.2
|
—
|
Certification
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
(d) |
Financial
Statement Schedules
|
Beazer Homes USA, Inc.
|
||
|
|
|
By: | /s/ Ian J. McCarthy | |
Name:
Ian J. McCarthy
Title:
President and Chief Executive Officer
Date:
December 8, 2006
|
December 8, 2006 | By: | /s/ Brian C. Beazer |
Date | Brian C. Beazer, Director and Non-Executive Chairman of the Board |
December 8, 2006 | By: | /s/ Ian J. McCarthy |
Date |
Ian J. McCarthy, Director, President and Chief
Executive
Officer
(Principal Executive
Officer)
|
December 8, 2006 | By: | /s/ Laurent Alpert |
Date | Laurent Alpert, Director* |
December 8, 2006 | By: | /s/ Katie J. Bayne |
Date | Katie J. Bayne, Director |
December 8, 2006 | By: | /s/ Peter G. Leemputte |
Date | Peter G. Leemputte, Director* |
December 8, 2006 | By: | /s/ Maureen E. O’Connell |
Date | Maureen E. O’Connell, Director* |
December 8, 2006 | By: | /s/ Larry T. Solari |
Date | Larry T. Solari, Director |
December 8, 2006 | By: | /s/ Stephen P. Zelnak |
Date | Stephen P. Zelnak, Jr., Director |
December 8, 2006 | By: | /s/ James O’Leary |
Date |
James
O’Leary, Executive Vice President and Chief Financial Officer
(Principal
Financial Officer)
|
December 8, 2006 | By: | /s/ Michael T. Rand |
Date |
Michael
T. Rand, Senior Vice President, Chief Accounting Officer
(Principal
Accounting Officer)
|
Name
|
Jurisdiction
of
Incorporation
|
April
Corporation
|
Colorado
|
Arden
Park Ventures, LLC
|
Florida
|
Beazer
Allied Companies Holdings, Inc.
|
Delaware
|
Beazer
Clarksburg, LLC
|
Maryland
|
Beazer
Commercial Holdings, LLC
|
Delaware
|
Beazer
General Services, Inc.
|
Delaware
|
Beazer
Homes Capital Trust
|
Delaware
|
Beazer
Homes Corp.
|
Tennessee
|
Beazer
Homes Holdings Corp.
|
Delaware
|
Beazer
Homes Indiana, LLP
|
Indiana
|
Beazer
Homes Indiana Holding Corp.
|
Indiana
|
Beazer
Homes Investments, LLC
|
Delaware
|
Beazer
Homes Michigan, LLC
|
Delaware
|
Beazer
Homes Sales, Inc.
|
Delaware
|
Beazer
Homes Texas Holdings, Inc.
|
Delaware
|
Beazer
Homes Texas, LP
|
Texas
|
Beazer
Mortgage Corporation
|
Delaware
|
Beazer
Realty Corp.
|
Georgia
|
Beazer
Realty, Inc.
|
New
Jersey
|
Beazer
Realty Los Angeles, Inc.
|
Delaware
|
Beazer
Realty Sacramento, Inc.
|
Delaware
|
Beazer
Realty Services, LLC
|
Delaware
|
Beazer
Title Agency of Arizona, LLC
|
Arizona
|
Beazer
Title Agency, LLC
|
Nevada
|
Beazer
SPE, LLC
|
Georgia
|
Beazer/Squires
Realty, Inc.
|
North
Carolina
|
BH
Building Products, LP
|
Delaware
|
BH
Procurement Services, LLC
|
Delaware
|
Homebuilders
Title Services of Virginia, Inc.
|
Virginia
|
Homebuilders
Title Services, Inc.
|
Delaware
|
Paragon
Title, LLC
|
Indiana
|
Security
Title Insurance Company
|
Vermont
|
Texas
Lone Star Title, LP
|
Texas
|
Trinity
Homes, LLC
|
Indiana
|
United
Home Insurance Company, A
Risk Retention Group
|
Vermont
|
1. |
I
have reviewed this annual report on Form 10-K of Beazer Homes USA,
Inc.;
|
2. |
Based
on my knowledge, this annual report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to
make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
annual report;
|
3. |
Based
on my knowledge, the financial statements, and other financial information
included in this annual report, fairly present in all material respects
the financial condition, results of operations and cash flows of
the
registrant as of, and for, the periods presented in this annual report;
|
4. |
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and we
have:
|
(a) |
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including
its
consolidated subsidiaries, is made known to us by others within
those
entities, particularly during the period in which this report is
being
prepared;
|
(b) |
designed
such internal control over financial reporting, or caused such
internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the
period
covered by this report based on such evaluation; and
|
(d) |
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s fourth quarter
of fiscal year 2006 that has materially affected, or
is reasonably likely
to materially affect, the registrant’s internal control over financial
reporting; and
|
5. |
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of the registrant’s
board of directors:
|
(a) |
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b) |
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
1. |
I
have reviewed this annual report on Form 10-K of Beazer Homes USA,
Inc.;
|
2. |
Based
on my knowledge, this annual report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to
make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
annual report;
|
3. |
Based
on my knowledge, the financial statements, and other financial information
included in this annual report, fairly present in all material respects
the financial condition, results of operations and cash flows of
the
registrant as of, and for, the periods presented in this annual report;
|
4. |
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and we
have:
|
(a) |
designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to
ensure
that material information relating to the registrant, including
its
consolidated subsidiaries, is made known to us by others within
those
entities, particularly during the period in which this report is
being
prepared;
|
(b) |
designed
such internal control over financial
reporting, or caused such internal control over financial reporting
to be
designed under our supervision, to provide reasonable assurance
regarding
the reliability of financial reporting and the preparation of
financial
statements for external purposes in accordance with generally
accepted
accounting principles;
|
(c) |
evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the
period
covered by this report based on such evaluation; and
|
(d) |
disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s fourth quarter
of fiscal year 2006 that has materially affected, or is
reasonably likely
to materially affect, the registrant’s internal control over financial
reporting; and
|
5. |
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of the registrant’s
board of directors:
|
(a) |
all
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
(b) |
any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|