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8K cover - 3.31.13 Press Release


__________________________________________________________________________________________
UNITED STATES
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 (Date of earliest reported event): May 2, 2013 
 
BEAZER HOMES USA, INC.
(Exact name of registrant as specified in its charter)
  
 
 
 
 
 
 
DELAWARE
 
001-12822
 
54-2086934
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
1000 Abernathy Road, Suite 260
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)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
__________________________________________________________________________________________




Item 2.02.
Results of Operations and Financial Condition
On May 2, 2013, Beazer Homes USA, Inc. issued a press release announcing results of operations for the three and six months ended March 31, 2013. A copy of the press release is attached hereto as exhibit 99.1.

Item 9.01
Financial Statements and Exhibits
(d) Exhibits
 
99.1
Earnings Press Release dated May 2, 2013




SIGNATURES
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: May 2, 2013
 
 
 
By:
 
/s/ Kenneth F. Khoury
 
 
 
 
 
 
 
 
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel


Exhibit 99.1 - 3.31.13


  
Exhibit 99.1
PRESS RELEASE

Beazer Homes Reports Second Quarter Fiscal 2013 Results

ATLANTA, May 2, 2013 - Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and six months ended March 31, 2013.

"I'm pleased with our solid operational and financial performance this quarter,” said Allan Merrill, CEO of Beazer Homes.  “Improvements in closings, average sales price and gross margins enabled us to generate $15 million in adjusted EBITDA, the highest amount for our fiscal second quarter since 2007.  With a substantially higher backlog, improving margins and tight control of fixed costs, we expect to report positive net income for our fiscal fourth quarter, which should allow us to be profitable for the second half of fiscal 2013.” 

Summary results for the quarter and six months ended March 31, 2013 are as follows (all per share amounts are calculated after giving effect to a 1-for-5 reverse stock split completed on October 11, 2012):

Q2 Results from Continuing Operations (unless otherwise specified)
 
 
Quarter Ended March 31,
 
 
2013
 
2012
 
Change
New Home Orders
 
1,521

 
1,512

 
0.6
%
LTM orders per month per community
 
2.7

 
2.0

 
35.0
%
Cancellation rates
 
18.7
%
 
22.5
%
 
-380 bps

 
 
 
 
 
 
 
Total Home Closings
 
1,127

 
844

 
33.5
%
Average sales price from closings (in thousands)
 
$
253.3

 
$
224.7

 
12.7
%
Homebuilding revenue (in millions)
 
$
285.5

 
$
189.6

 
50.6
%
Homebuilding gross profit margin, excluding impairments and abandonments (I&A)
 
15.9
%
 
10.9
%
 
500 bps

Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales
 
19.1
%
 
17.5
%
 
160 bps

 
 
 
 
 
 
 
Loss from continuing operations before income taxes (in millions)
 
$
(19.5
)
 
$
(38.7
)
 
$
19.2

Benefit from income taxes
 
$
0.3

 
$
0.8

 
$
(0.5
)
Net loss from continuing operations (in millions)
 
$
(19.1
)
 
$
(37.9
)
 
$
18.8

Basic Per Share
 
$
(0.78
)
 
$
(2.41
)
 
$
1.63

Loss on debt extinguishment (in millions)
 
$
(3.6
)
 
$
(2.7
)
 
$
(0.9
)
Inventory impairments (in millions)
 
$
(2.0
)
 
$
(1.2
)
 
$
(0.8
)
Net loss from continuing operations excluding inventory impairments and loss on debt extinguishment (in millions)
 
$
(13.5
)
 
$
(34.0
)
 
$
20.5

Land and land development spending (in millions)
 
$
62.6

 
$
41.9

 
$
20.7

Total Company Adjusted EBITDA (in millions)
 
$
15.2

 
$
(1.0
)
 
$
16.2














Six Month Results from Continuing Operations (unless otherwise specified)

 
 
Six Months Ended March 31,
 
 
2013
 
2012
 
Change
New Home Orders
 
2,453

 
2,236

 
9.7
%
LTM orders per month per community
 
2.7

 
2.0

 
35.0
%
Cancellation rates
 
21.8
%
 
27.1
%
 
-530 bps

 
 
 
 
 
 
 
Total Home Closings
 
2,165

 
1,711

 
26.5
%
Average sales price from closings (in thousands)
 
$
244.8

 
$
220.0

 
11.3
%
Homebuilding revenue (in millions)
 
$
529.9

 
$
376.5

 
40.8
%
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) (a)
 
15.3
%
 
12.1
%
 
320 bps

Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales (a)
 
18.7
%
 
18.9
%
 
-20 bps

 
 
 
 
 
 
 
Loss from continuing operations before income taxes (in millions)
 
$
(38.6
)
 
$
(73.8
)
 
$
35.2

Benefit from income taxes
 
$
0.6

 
$
36.6

 
$
(36.0
)
Net loss from continuing operations (in millions)
 
$
(38.1
)
 
$
(37.2
)
 
$
(0.9
)
Basic Per Share
 
$
(1.55
)
 
$
(2.43
)
 
$
0.88

Loss on debt extinguishment (in millions)
 
$
(3.6
)
 
$
(2.7
)
 
$
(0.9
)
Inventory impairments (in millions)
 
$
(2.2
)
 
$
(4.7
)
 
$
2.5

Net loss from continuing operations excluding inventory impairments and loss on debt extinguishment (in millions)
 
$
(32.3
)
 
$
(29.8
)
 
$
(2.5
)
Land and land development spending (in millions)
 
$
152.6

 
$
100.1

 
$
52.5

Total Company Adjusted EBITDA (in millions)
 
$
23.0

 
$
2.8

 
$
20.2


(a) This homebuilding gross profit for the six months ended March 31, 2012 includes an $11.0 million warranty recovery which contributed 300 bps to this margin.

As of March 31, 2013

•
Total cash and cash equivalents: $672.4 million, including unrestricted cash of approximately $425.7 million
•
Stockholders' equity: $233.2 million
•
Total backlog from continuing operations: 2,211 homes with a sales value of $584.2 million, compared to 1,975 homes with a sales value of $465.0 million as of March 31, 2012
•
Land and lots controlled: 24,693 lots (83.1% owned), a decrease of 3.6% from March 31, 2012


Conference Call

The Company will hold a conference call on May 2, 2013 at 10:00 am ET to discuss these results.  Interested parties may listen to the conference call and view the Company's slide presentation over the internet on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the pass code "BZH". A replay of the conference call will be available, until 11:00 PM ET on May 9, 2013, at 800-677-4960 (for international callers, dial 203-369-3932) with pass code “3740.”  A replay of the webcast will be available at www.beazer.com for approximately 30 days.

Headquartered in Atlanta, Beazer Homes is one of the country's 10 largest single-family homebuilders. The Company's homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with flexible floorplan options to meet the personal preferences and lifestyles of its buyers. In addition, the Company is committed to providing a range of preferred lender choices to facilitate transparent competition between lenders and enhanced customer




service. The Company offers homes in 16 states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New York Stock Exchange under the ticker symbol “BZH.” For more info visit Beazer.com, or check out Beazer on Facebook and Twitter.

This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things, (i) economic changes nationally or in local markets, including changes in consumer confidence, changes in the level of housing starts, declines in employment levels, inflation and changes in the demand and prices of new homes and resale homes in the market; (ii) a slower economic rebound than anticipated, coupled with persistently high unemployment and additional foreclosures; (iii) estimates related to homes to be delivered in the future (backlog) are imprecise as they are subject to various cancellation risks which cannot be fully controlled; (iv) a substantial increase in mortgage interest rates, increased disruption in the availability of mortgage financing or a change in tax laws regarding the deductibility of mortgage interest; (v) factors affecting margins such as decreased land values underlying lot option agreements, increased land development costs on communities under development or delays or difficulties in implementing initiatives to reduce production and overhead cost structure; (vi) the final outcome of various putative class action lawsuits, multi-party suits and similar proceedings as well as the results of any other litigation or government proceedings and fulfillment of the obligations in the Deferred Prosecution Agreement and consent orders with governmental authorities and other settlement agreements; (vii) our cost of and ability to access capital and otherwise meet our ongoing liquidity needs including the impact of any downgrades of our credit ratings or reductions in our tangible net worth or liquidity levels; (viii) our ability to comply with covenants in our debt agreements or satisfy such obligations through repayment or refinancing; (ix) estimates related to the potential recoverability of our deferred tax assets; (x) increased competition or delays in reacting to changing consumer preference in home design; (xi) shortages of or increased prices for labor, land or raw materials used in housing production; (xii) additional asset impairment charges or writedowns; (xiii) the impact of construction defect and home warranty claims; (xiv) the cost and availability of insurance and surety bonds; (xv) delays in land development or home construction resulting from adverse weather conditions; (xvi) potential delays or increased costs in obtaining necessary permits and possible penalties for failure to comply with laws, regulations and governmental policies; (xvii) the performance of our joint ventures and our joint venture partners; (xviii) potential exposure related to additional repurchase claims on mortgages and loans originated by Beazer Mortgage Corp.; (xix) effects of changes in accounting policies, standards, guidelines or principles; or (xx) terrorist acts, acts of war and other factors over which the Company has little or no control. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time and it is not possible for management to predict all such factors.



CONTACT: Beazer Homes USA, Inc.
Carey Phelps
Director, Investor Relations & Corporate Communications
770-829-3700
investor.relations@beazer.com


-Tables Follow-








                    
BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share data)
 
Three Months Ended
 
Six Months Ended
 
March 31,
 
March 31,
 
2013
 
2012
 
2013
 
2012
Total revenue
$
287,902

 
$
191,643

 
$
534,804

 
$
380,191

Home construction and land sales expenses
241,992

 
170,283

 
452,606

 
333,059

Inventory impairments and option contract abandonments
2,025

 
1,170

 
2,229

 
4,673

Gross profit
43,885

 
20,190

 
79,969

 
42,459

Commissions
11,686

 
8,375

 
22,328

 
16,746

General and administrative expenses
28,795

 
26,319

 
55,123

 
54,513

Depreciation and amortization
3,093

 
3,190

 
5,808

 
5,593

Operating income (loss)
311

 
(17,694
)
 
(3,290
)
 
(34,393
)
Equity in income (loss) of unconsolidated entities
68

 
4

 
104

 
(73
)
Loss on extinguishment of debt
(3,638
)
 
(2,747
)
 
(3,638
)
 
(2,747
)
Other expense, net
(16,195
)
 
(18,265
)
 
(31,822
)
 
(36,538
)
Loss from continuing operations before income taxes
(19,454
)
 
(38,702
)
 
(38,646
)
 
(73,751
)
Benefit from income taxes
(343
)
 
(836
)
 
(596
)
 
(36,583
)
Loss from continuing operations
(19,111
)
 
(37,866
)
 
(38,050
)
 
(37,168
)
Loss from discontinued operations, net of tax
(529
)
 
(2,082
)
 
(1,978
)
 
(2,041
)
Net loss
$
(19,640
)
 
$
(39,948
)
 
$
(40,028
)
 
$
(39,209
)
Weighted average number of shares:
 
 
 
 
 
 
 
Basic
24,654

 
15,711

 
24,472

 
15,269

Diluted
24,654

 
15,711

 
24,472

 
15,269

(Loss) earnings per share:
 
 
 
 
 
 
 
Basic loss per share from continuing operations
$
(0.78
)
 
$
(2.41
)
 
$
(1.55
)
 
$
(2.43
)
Basic loss per share from discontinued operations
$
(0.02
)
 
$
(0.13
)
 
$
(0.09
)
 
$
(0.14
)
Basic loss per share
$
(0.80
)
 
$
(2.54
)
 
$
(1.64
)
 
$
(2.57
)
Diluted loss per share from continuing operations
$
(0.78
)
 
$
(2.41
)
 
$
(1.55
)
 
$
(2.43
)
Diluted loss per share from discontinued operations
$
(0.02
)
 
$
(0.13
)
 
$
(0.09
)
 
$
(0.14
)
Diluted loss per share
$
(0.80
)
 
$
(2.54
)
 
$
(1.64
)
 
$
(2.57
)

 
 
Three Months Ended
 
Six Months Ended
 
March 31,
 
March 31,
 
2013
 
2012
 
2013
 
2012
Capitalized interest in inventory, beginning of period
$
41,922

 
$
46,510

 
$
38,190

 
$
45,973

Interest incurred
29,177

 
32,190

 
57,595

 
64,715

Capitalized interest impaired
—

 
(25
)
 
—

 
(53
)
Interest expense not qualified for capitalization and included as other expense
(16,246
)
 
(18,797
)
 
(32,457
)
 
(37,914
)
Capitalized interest amortized to house construction and land sales expenses
(9,352
)
 
(12,636
)
 
(17,827
)
 
(25,479
)
Capitalized interest in inventory, end of period
$
45,501

 
$
47,242

 
$
45,501

 
$
47,242






BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except share and per share data)
 
 
March 31, 2013
 
September 30, 2012
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
425,660

 
$
487,795

Restricted cash
 
246,742

 
253,260

Accounts receivable (net of allowance of $2,051 and $2,235, respectively)
 
25,070

 
24,599

Income tax receivable
 
2,513

 
6,372

Inventory
 
 
 
 
Owned inventory
 
1,143,737

 
1,099,132

Land not owned under option agreements
 
8,375

 
12,420

Total inventory
 
1,152,112

 
1,111,552

Investments in unconsolidated entities
 
41,814

 
42,078

Deferred tax assets, net
 
7,000

 
6,848

Property, plant and equipment, net
 
16,928

 
18,974

Other assets
 
28,871

 
30,740

Total assets
 
$
1,946,710

 
$
1,982,218

 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Trade accounts payable
 
$
62,235

 
$
69,268

Other liabilities
 
140,802

 
147,718

Obligations related to land not owned under option agreements
 
3,286

 
4,787

Total debt (net of discounts of $2,440 and $3,082, respectively)
 
1,507,153

 
1,498,198

Total liabilities
 
$
1,713,476

 
$
1,719,971

 
 
 
 
 
Stockholders’ equity:
 
 
 
 
Preferred stock (par value $.01 per share, 5,000,000 shares authorized, no shares issued)
 
$
—

 
$
—

Common stock (par value $0.001 per share, 63,000,000 shares authorized, 25,092,502 and 24,601,830 issued and outstanding, respectively)
 
25

 
25

Paid-in capital
 
845,009

 
833,994

Accumulated deficit
 
(611,800
)
 
(571,772
)
Total stockholders’ equity
 
233,234

 
262,247

Total liabilities and stockholders’ equity
 
$
1,946,710

 
$
1,982,218

 
 
 
 
 
Inventory Breakdown
 
 
 
 
Homes under construction
 
$
271,882

 
$
251,828

Development projects in progress
 
420,914

 
391,019

Land held for future development
 
355,613

 
367,102

Land held for sale
 
10,413

 
10,149

Capitalized interest
 
45,501

 
38,190

Model homes
 
39,414

 
40,844

Land not owned under option agreements
 
8,375

 
12,420

Total inventory
 
$
1,152,112

 
$
1,111,552




 




BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
($ in thousands, except otherwise noted)
 
 
Quarter Ended March 31,
 
Six Months Ended March 31,
SELECTED OPERATING DATA
 
2013
 
2012
 
2013
 
2012
Closings:
 
 
 
 
 
 
 
 
West region
 
504

 
369

 
1,003

 
739

East region
 
383

 
292

 
736

 
602

Southeast region
 
240

 
183

 
426

 
370

Total closings
 
1,127

 
844

 
2,165

 
1,711

 
 
 
 
 
 
 
 
 
New orders, net of cancellations:
 
 
 
 
 
 
 
 
West region
 
658

 
655

 
1,082

 
958

East region
 
442

 
502

 
751

 
751

Southeast region
 
421

 
355

 
620

 
527

Total new orders
 
1,521

 
1,512

 
2,453

 
2,236

 
 
 
 
 
 
 
 
 
Backlog units at end of period:
 
 
 
 
 
 
 
 
West region
 
918

 
789

 
918

 
789

East region
 
762

 
787

 
762

 
787

Southeast region
 
531

 
399

 
531

 
399

Total backlog units
 
2,211

 
1,975

 
2,211

 
1,975

 
 
 
 
 
 
 
 
 
Dollar value of backlog at end of period (in millions)
 
$
584.2

 
$
465.0

 
$
584.2

 
$
465.0

 
 
 
 
 
 
 
 
 
Homebuilding Revenue:
 
 
 
 
 
 
 
 
West region
 
$
117,496

 
$
77,810

 
$
227,249

 
$
148,064

East region
 
116,537

 
74,902

 
213,001

 
156,669

Southeast region
 
51,438

 
36,905

 
89,646

 
71,736

Total homebuilding revenue
 
$
285,471

 
$
189,617

 
$
529,896

 
$
376,469



 
 
Quarter Ended March 31,
 
Six Months Ended March 31,
SUPPLEMENTAL FINANCIAL DATA
 
2013
 
2012
 
2013
 
2012
Revenues:
 
 
 
 
 
 
 
 
Homebuilding
 
$
285,471

 
$
189,617

 
$
529,896

 
$
376,469

Land sales and other
 
2,431

 
2,026

 
4,908

 
3,722

Total
 
$
287,902

 
$
191,643

 
$
534,804

 
$
380,191

 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
Homebuilding
 
$
43,253

 
$
19,467

 
$
78,883

 
$
40,819

Land sales and other
 
632

 
723

 
1,086

 
1,640

Total
 
$
43,885

 
$
20,190

 
$
79,969

 
$
42,459





Reconciliation of homebuilding gross profit before impairments and abandonments and interest amortized to cost of sales and the related gross margins to homebuilding gross profit and gross margin, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt. Homebuilding gross profit for the six months ended March 31, 2012 included an $11.0 million warranty recovery which added 300 basis points to homebuilding gross profit before impairments and abandonments and interest amortized to cost of sales.
 
Quarter Ended March 31,
 
Six Months Ended March 31,
 
2013
 
2012
 
2013
 
2012
Homebuilding gross profit
$
43,253

15.2
%
 
$
19,467

10.3
%
 
$
78,883

14.9
%
 
$
40,819

10.8
%
Inventory impairments and lot option abandonments (I&A)
2,025

 
 
1,170

 
 
2,229

 
 
4,673

 
Homebuilding gross profit before I&A
45,278

15.9
%
 
20,637

10.9
%
 
81,112

15.3
%
 
45,492

12.1
%
Interest amortized to cost of sales
9,352

 
 
12,636

 
 
17,827

 
 
25,479

 
Homebuilding gross profit before I&A and interest amortized to cost of sales
$
54,630

19.1
%
 
$
33,273

17.5
%
 
$
98,939

18.7
%
 
$
70,971

18.9
%
Reconciliation of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, debt extinguishment, impairments and abandonments) to total company net loss (including discontinued operations), the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective capitalization, tax position and level of impairments.  
 
 
Quarter Ended March 31,
 
Six Months Ended March 31,
 
 
2013
 
2012
 
2013
 
2012
Net loss
 
$
(19,640
)
 
$
(39,948
)
 
$
(40,028
)
 
$
(39,209
)
Benefit from income taxes
 
(352
)
 
(850
)
 
(627
)
 
(36,996
)
Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization
 
25,598

 
31,458

 
50,284

 
63,446

Depreciation and amortization and stock compensation amortization
 
3,947

 
4,423

 
7,446

 
8,126

Inventory impairments and option contract abandonments
 
2,025

 
1,147

 
2,246

 
4,654

Loss on debt extinguishment
 
3,638

 
2,747

 
3,638

 
2,747

Joint venture impairment and abandonment charges
 
—

 
7

 
—

 
36

Adjusted EBITDA
 
$
15,216

 
$
(1,016
)
 
$
22,959

 
$
2,804