Document


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): November 15, 2016
 
 
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 November 15, 2016, Beazer Homes USA, Inc. issued a press release announcing results of operations for the fiscal year ended September 30, 2016. 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 November 15, 2016








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:
November 15, 2016
 
 
 
 
By:
 
/s/ Kenneth F. Khoury
 
 
 
 
 
 
 
 
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel



Exhibit


Exhibit 99.1

PRESS RELEASE

Beazer Homes Reports Fiscal 2016 Results

ATLANTA, November 15, 2016 - Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2016.

“Our fiscal year 2016 results reflected our fifth consecutive year of growth in revenue and profitability, as well as material improvements to our balance sheet and credit ratings,” said Allan Merrill, CEO of Beazer Homes. “With improved orders and a sequential improvement in gross margin in the fourth quarter, we are poised to achieve even better operational results in 2017.”
Commenting on the Company’s longer-term growth objectives, Mr. Merrill continued, “Our balanced growth objectives remain in place, with expectations for continued progress toward our “2B-10” goals and further de-leveraging in the coming year. We also expect to substantially expand our investment in new communities, including age-restricted Gatherings condominium sites in many more of our divisions. With significant exposure to value-oriented first time and active adult buyers, we believe we are very well positioned for the coming years.”
Beazer Homes Fiscal 2016 Highlights and Comparison to Fiscal 2015
Net income from continuing operations of $5.2 million
Adjusted EBITDA of $156.3 million, up 8.5%
Homebuilding revenue of $1.8 billion, up 13.6%
5,419 new home deliveries, up 8.2%
Average selling price of $329.4 thousand, up 5.1%
Homebuilding gross margin was 16.5%. Excluding impairments, abandonments, amortized interest, unexpected warranty costs and additional insurance recoveries, homebuilding gross margin was 20.6%, down 90 basis points
SG&A as a percentage of total revenue was 12.3%, down 50 basis points
Unit orders of 5,297, down 1.1%. Average community count was 166, up 3.3%
Dollar value of backlog of $652.7 million, down 2.2%
Paid down nearly $157 million in debt

Beazer Homes Fiscal Fourth Quarter 2016 Highlights and Comparison to Fiscal Fourth Quarter 2015
Net loss from continuing operations of $789 thousand. Results included $11.4 million of losses related to the early extinguishment of debt and an elevated tax provision related to a legal entity restructuring undertaken to reduce state taxes
Adjusted EBITDA of $66.0 million, down 7.2%
Homebuilding revenue of $620.0 million, up 1.4%
1,856 new home deliveries, down 2.1%
Average selling price of $334.0 thousand, up 3.5%
Homebuilding gross margin was 16.2%. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 20.8%, down 50 basis points
SG&A as a percentage of total revenue was 10.6%, up 30 basis points
Unit orders of 1,346, up 15.0%. Average community count was 162, down 1.2%
Unrestricted cash at quarter end was $228.9 million





Orders. Net new orders for the fourth quarter increased 15.0% versus the prior year, driven by a 16.7% increase in the absorption rate to 2.8 sales per community per month. The Company’s average community count declined 1.2% to 162 communities. The cancellation rate was 20.4%, down 380 basis points relative to the fourth quarter of last year and in line with historical levels.
Homebuilding Revenue. Homebuilding revenue for the fourth quarter increased 1.4% over the prior year to $620 million, as the average selling price rose 3.5% to $334 thousand. Closings of 1,856 homes were 2.1% below the level achieved in the same period last year.
Backlog. The dollar value of homes in backlog as of September 30, 2016 declined 2.2% to $652.7 million, or 1,916 homes, which compared to $667.7 million, or 2,038 homes, for the same period last year. The decline, in part, reflected the improved backlog conversion ratio experienced during the quarter. The average selling price of homes in backlog was approximately $341 thousand.
Homebuilding Gross Margin. Homebuilding gross margin for the fourth quarter was 16.2%. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 20.8%, down approximately 50 basis points versus the prior year, but up sequentially.
SG&A Expenses. Selling, general and administrative expenses, as a percentage of total revenue, were 10.6%, up approximately 30 basis points versus the prior year.
Liquidity. The Company ended the quarter with approximately $335.7 million of available liquidity, including $228.9 million of unrestricted cash and $106.8 million available on its secured revolving credit facility. During the fourth quarter, the Company issued $500 million of Senior Notes due 2022. The proceeds, combined with cash on the balance sheet, were used to retire all of its outstanding 6.625% Senior Secured Notes due 2018 and 9.125% Senior Notes due 2019. In October, the Company announced it had increased the capacity of its secured revolving credit facility to $180 million from $145 million and extended the maturity to February 2019. Adjusted for this change, the Company would have had $370.7 million of total liquidity.
Taxes. The Company undertook a legal entity restructuring that will result in a significant reduction in its state taxes. The fourth quarter income tax provision included an $8.6 million one-time non-cash valuation allowance related to the restructuring.






Summary results for the three and twelve months ended September 30, 2016 are as follows:
Q4 Results from Continuing Operations (unless otherwise specified)
 
 
Quarter Ended September 30,
 
 
2016
 
2015
 
Change
New Home Orders
 
1,346

 
1,170

 
15.0
 %
Orders per month per community
 
2.8

 
2.4

 
16.7
 %
Average active community count
 
162

 
164

 
(1.2
)%
Actual community count at quarter-end
 
161

 
166

 
(3.0
)%
Cancellation rates
 
20.4
%
 
24.2
%
 
-380 bps

 
 
 
 
 
 
 
Total Home Closings
 
1,856

 
1,896

 
(2.1
)%
Average selling price (ASP) from closings (in thousands)
 
$
334.0

 
$
322.6

 
3.5
 %
Homebuilding revenue (in millions)
 
$
620.0

 
$
611.7

 
1.4
 %
Homebuilding gross margin
 
16.2
%
 
17.2
%
 
-100 bps

Homebuilding gross margin, excluding impairments and abandonments (I&A)
 
16.2
%
 
17.5
%
 
-130 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales
 
20.8
%
 
21.3
%
 
-50 bps

 
 
 
 
 
 
 
Income from continuing operations before income taxes (in millions)
 
$
13.6

 
$
30.7

 
$
(17.1
)
Expense (benefit) from income taxes (in millions)
 
$
14.4

 
$
(323.8
)
 
$
338.2

Income (loss) from continuing operations (in millions)
 
$
(0.8
)
 
$
354.5

 
$
(355.3
)
Basic income (loss) per share from continuing operations
 
$
(0.03
)
 
$
11.42

 
$
(11.45
)
Diluted income (loss) per share from continuing operations
 
$
(0.03
)
 
$
11.16

 
$
(11.19
)
Loss on debt extinguishment (in millions)
 
$
11.4

 
$
0.1

 
$
11.3

Inventory impairments and abandonments (in millions)
 
$
0.2

 
$
2.9

 
$
(2.7
)
Net income from continuing operations excluding loss on debt extinguishment and inventory impairments and abandonments (in millions)
 
$
10.8

 
$
357.5

 
$
(346.7
)
 
 
 
 
 
 
 
Total Company land and land development spending (in millions)
 
$
69.0

 
$
99.8

 
$
(30.8
)
Total Company Adjusted EBITDA (in millions)
 
$
66.0

 
$
71.1

 
$
(5.1
)






















Fiscal Year Results from Continuing Operations (unless otherwise specified)
 
 
Year Ended September 30,
 
 
2016
 
2015
 
Change
New Home Orders
 
5,297

 
5,358

 
(1.1
)%
Orders per month per community
 
2.7

 
2.8

 
(3.6
)%
Cancellation rates
 
20.4
%
 
20.1
%
 
30 bps

 
 
 
 
 
 
 
Total Home Closings
 
5,419

 
5,010

 
8.2
 %
ASP from closings (in thousands)
 
$
329.4

 
$
313.5

 
5.1
 %
Homebuilding revenue (in millions)
 
$
1,784.8

 
$
1,570.6

 
13.6
 %
Homebuilding gross margin
 
16.5
%
 
17.0
%
 
-50 bps

Homebuilding gross margin, excluding impairments and abandonments
(I&A)
 
17.3
%
 
17.1
%
 
20 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales
 
21.6
%
 
20.6
%
 
100 bps

Homebuilding gross margin, excluding I&A, interest amortized to cost of sales, unexpected warranty costs and additional insurance recoveries from a third-party insurer
 
20.6
%
 
21.5
%
 
-90 bps

 
 
 
 
 
 
 
Income from continuing operations before income taxes (in millions)
 
$
21.7

 
$
22.0

 
$
(0.3
)
Expense (benefit) from income taxes (in millions)
 
$
16.5

 
$
(324.6
)
 
$
341.1

Income from continuing operations (in millions)
 
$
5.2

 
$
346.6

 
$
(341.4
)
Basic income per share from continuing operations
 
$
0.16

 
$
12.54

 
$
(12.38
)
Diluted income per share from continuing operations
 
$
0.16

 
$
10.91

 
$
(10.75
)
Loss on debt extinguishment (in millions)
 
$
13.4

 
$
0.1

 
$
13.3

Inventory impairments and abandonments (in millions)
 
$
15.3

 
$
3.1

 
$
12.2

Net income from continuing operations excluding loss on debt extinguishment and inventory impairments and abandonments (in millions)
 
$
33.9

 
$
349.8

 
$
(315.9
)
 
 
 
 
 
 
 
Total Company land and land development spending (in millions)
 
$
336.9

 
$
453.3

 
$
(116.4
)
Total Company Adjusted EBITDA (in millions)
 
$
175.4

 
$
126.8

 
$
48.6

Total Company Adjusted EBITDA, excluding unexpected warranty costs, a litigation settlement in discontinued operations and additional insurance recoveries from a third-party insurer (in millions)
 
$
156.3

 
$
144.1

 
$
12.2


 
 
As of September 30,
 
 
2016
 
2015
 
Change
Backlog units
 
1,916

 
2,038

 
(6.0
)%
Dollar value of backlog (in millions)
 
$
652.7

 
$
667.7

 
(2.2
)%
ASP in backlog (in thousands)
 
$
340.6

 
$
327.6

 
4.0
 %
Land and lots controlled
 
23,356

 
25,720

 
(9.2
)%







Conference Call

The Company will hold a conference call on November 15, 2016 at 10:00 a.m. ET to discuss these results. Interested parties may listen to the conference call and view the Companys slide presentation over the Internet by visiting the “Investor Relations” section of the Companys website at www.beazer.com. To access the conference call by telephone, listeners should dial 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the passcode “BZH.” A replay of the call will be available shortly after the conclusion of the live call. To directly access the replay, dial 866-373-1984 or 203-369-0260 and enter the passcode “3740” (available until 10:59 p.m. ET on November 22, 2016), or visit www.beazer.com. A replay of the webcast will be available at www.beazer.com for at least 30 days.

Headquartered in Atlanta, Beazer Homes is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States. The Company's homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with Choice Plans 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's active operations are in the following states: Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, 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, changes in consumer confidence, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market; (ii) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (iii) factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs on communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; (iv) the availability and cost of land and the risks associated with the future value of our inventory, such as additional asset impairment charges or writedowns; (v) estimates related to homes to be delivered in the future (backlog) are imprecise, as they are subject to various cancellation risks that cannot be fully controlled; (vi) shortages of or increased prices for labor, land or raw materials used in housing production and the level of quality and craftsmanship provided by our subcontractors; (vii) our cost of and ability to access capital, due to factors such as limitations in the capital markets or adverse credit market conditions, 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 reduce our outstanding indebtedness and to comply with covenants in our debt agreements or satisfy such obligations through repayment or refinancing; (ix) a substantial increase in mortgage interest rates, increased disruption in the availability of mortgage financing, a change in tax laws regarding the deductibility of mortgage interest for tax purposes or an increased number of foreclosures; (x) increased competition or delays in reacting to changing consumer preferences in home design; (xi) continuing severe weather conditions or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; (xii) estimates related to the potential recoverability of our deferred tax assets; (xiii) 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 or governmental policies, including those related to the environment; (xiv) the results of litigation or government proceedings and fulfillment of any related obligations; (xv) the impact of construction defect and home warranty claims, including water intrusion issues in Florida; (xvi) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xvii) the performance of our unconsolidated entities and our unconsolidated entity partners; (xviii) the impact of information technology failures or data security breaches; (xix) terrorist acts, natural disasters, acts of war or other factors over which the Company has little or no control; or (xx) the impact on homebuilding in key markets of governmental regulations limiting the availability of water.






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.

David I. Goldberg
Vice President of Treasury and Investor Relations
770-829-3700
investor.relations@beazer.com
-Tables Follow-






 BEAZER HOMES USA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
 
Three Months Ended
 
Fiscal Year Ended
 
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Total revenue
$
632,121

 
$
632,852

 
$
1,822,114

 
$
1,627,413

Home construction and land sales expenses
529,531

 
522,787

 
1,509,625

 
1,351,860

Inventory impairments and abandonments
184

 
2,860

 
15,282

 
3,109

Gross profit
102,406

 
107,205

 
297,207

 
272,444

Commissions
24,604

 
24,882

 
70,460

 
65,023

General and administrative expenses
42,604

 
40,659

 
153,628

 
142,496

Depreciation and amortization
4,360

 
4,719

 
13,794

 
13,338

Operating income
30,838

 
36,945

 
59,325

 
51,587

Equity in income of unconsolidated entities
60

 
159

 
131

 
536

Loss on extinguishment of debt
(11,393
)
 
(80
)
 
(13,423
)
 
(80
)
Other expense, net
(5,863
)
 
(6,343
)
 
(24,330
)
 
(30,013
)
Income from continuing operations before income taxes
13,642

 
30,681

 
21,703

 
22,030

Expense (benefit) from income taxes
14,431

 
(323,843
)
 
16,498

 
(324,569
)
Income (loss) from continuing operations
(789
)
 
354,524

 
5,205

 
346,599

Income (loss) from discontinued operations, net of tax
(65
)
 
1,731

 
(512
)
 
(2,505
)
Net income (loss)
$
(854
)
 
$
356,255

 
$
4,693

 
$
344,094

Weighted average number of shares:
 
 
 
 
 
 
 
Basic
31,815

 
31,055

 
31,798

 
27,628

Diluted
31,815

 
31,773

 
31,803

 
31,772

Basic income (loss) per share:
 
 
 
 
 
 
 
Continuing operations
$
(0.03
)
 
$
11.42

 
$
0.16

 
$
12.54

Discontinued operations
$

 
$
0.05

 
$
(0.01
)
 
$
(0.09
)
Total
$
(0.03
)
 
$
11.47

 
$
0.15

 
$
12.45

Diluted income (loss) per share:
 
 
 
 
 
 
 
Continuing operations
$
(0.03
)
 
$
11.16

 
$
0.16

 
$
10.91

Discontinued operations
$

 
$
0.05


$
(0.01
)
 
$
(0.08
)
Total
$
(0.03
)
 
$
11.21

 
$
0.15

 
$
10.83


 
 
Three Months Ended
 
Fiscal Year Ended
 
September 30,
 
September 30,
(In thousands)
2016
 
2015
 
2016
 
2015
Capitalized interest in inventory, beginning of period
$
142,398

 
$
123,657

 
$
123,457

 
$
87,619

Interest incurred
30,047

 
30,465

 
119,360

 
121,754

Capitalized interest impaired

 

 
(710
)
 

Interest expense not qualified for capitalization and included as other expense
(5,917
)
 
(6,356
)
 
(25,388
)
 
(29,752
)
Capitalized interest amortized to home construction and land sales expenses
(28,421
)
 
(24,309
)
 
(78,611
)
 
(56,164
)
Capitalized interest in inventory, end of period
$
138,107

 
$
123,457

 
$
138,108

 
$
123,457







BEAZER HOMES USA, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
 
 
September 30, 2016
 
September 30, 2015
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
228,871

 
$
251,583

Restricted cash
 
14,405

 
38,901

Accounts receivable (net of allowance of $354 and $1,052, respectively)
 
53,226

 
52,379

Income tax receivable
 
292

 
419

Owned inventory
 
1,569,279

 
1,697,590

Investments in unconsolidated entities
 
10,470

 
13,734

Deferred tax assets, net
 
309,955

 
325,373

Property and equipment, net
 
19,138

 
22,230

Other assets
 
7,522

 
7,086

Total assets
 
$
2,213,158

 
$
2,409,295

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Trade accounts payable
 
$
104,174

 
$
113,539

Other liabilities
 
134,253

 
148,966

Total debt (net of premium and discount of $2,362 and $3,639, respectively, and debt issuance costs of $15,514 and $11,908, respectively)
 
1,331,878

 
1,516,367

Total liabilities
 
$
1,570,305

 
$
1,778,872

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, 33,071,331 issued and outstanding and 32,660,583 issued and outstanding, respectively)
 
33

 
33

Paid-in capital
 
865,290

 
857,553

Accumulated deficit
 
(222,470
)
 
(227,163
)
Total stockholders’ equity
 
642,853

 
630,423

Total liabilities and stockholders’ equity
 
$
2,213,158

 
$
2,409,295

 
 
 
 
 
Inventory Breakdown
 
 
 
 
Homes under construction
 
$
377,191

 
$
377,281

Development projects in progress
 
742,417

 
809,900

Land held for future development
 
213,006

 
270,990

Land held for sale
 
29,696

 
44,555

Capitalized interest
 
138,108

 
123,457

Model homes
 
68,861

 
71,407

Total owned inventory
 
$
1,569,279

 
$
1,697,590




 





BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

 
 
Quarter Ended September 30,
 
Fiscal Year Ended September 30,
SELECTED OPERATING DATA
 
2016
 
2015
 
2016
 
2015
Closings:
 
 
 
 
 
 
 
 
West region
 
842

 
779

 
2,508

 
1,954

East region
 
466

 
560

 
1,373

 
1,546

Southeast region
 
548

 
557

 
1,538

 
1,510

Total closings
 
1,856

 
1,896

 
5,419

 
5,010

 
 
 
 
 
 
 
 
 
New orders, net of cancellations:
 
 
 
 
 
 
 
 
West region
 
561

 
541

 
2,381

 
2,352

East region
 
348

 
269

 
1,330

 
1,433

Southeast region
 
437

 
360

 
1,586

 
1,573

Total new orders, net
 
1,346

 
1,170

 
5,297

 
5,358

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fiscal Year Ended September 30,
Backlog units at end of period:
 
 
 
 
 
2016
 
2015
West region
 
 
 
 
 
828

 
955

East region
 
 
 
 
 
444

 
487

Southeast region
 
 
 
 
 
644

 
596

Total backlog units
 
 
 
 
 
1,916

 
2,038

Dollar value of backlog at end of period (in millions)
 
 
 
 
 
$
652.7

 
$
667.7







 
 






BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
(In thousands)
 
 
Quarter Ended September 30,
 
Fiscal Year Ended September 30,
SUPPLEMENTAL FINANCIAL DATA
 
2016
 
2015
 
2016
 
2015
Homebuilding Revenue:
 
 
 
 
 
 
 
 
West region
 
$
281,987

 
$
245,790

 
$
817,971

 
$
584,202

East region
 
172,787

 
201,996

 
505,198

 
549,484

Southeast region
 
165,178

 
163,888

 
461,608

 
436,941

Total homebuilding revenue
 
$
619,952

 
$
611,674

 
$
1,784,777

 
$
1,570,627

 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
        Homebuilding
 
$
619,952

 
$
611,674

 
$
1,784,777

 
$
1,570,627

        Land sales and other
 
12,169

 
21,178

 
37,337

 
56,786

Total revenues
 
$
632,121

 
$
632,852

 
$
1,822,114

 
$
1,627,413

 
 
 
 
 
 
 
 
 
Gross profit:
 
 
 
 
 
 
 
 
       Homebuilding
 
$
100,719

 
$
105,392

 
$
293,860

 
$
267,269

       Land sales and other
 
1,687

 
1,813

 
3,347

 
5,175

Total gross profit
 
$
102,406

 
$
107,205

 
$
297,207

 
$
272,444






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.
In addition, given the unusual size and nature of the charges recorded related to the Florida stucco issues, as well as additional insurance recoveries from a third-party insurer, homebuilding gross profit and gross margin is also shown excluding these charges. Management believes that this representation best reflects the operating characteristics of the Company.
 
Quarter Ended September 30,
 
Fiscal Year Ended September 30,
 
2016
 
2015
 
2016
 
2015
Homebuilding gross profit/margin
$
100,719

16.2
%
 
$
105,392

17.2
%
 
$
293,860

16.5
%
 
$
267,269

17.0
%
Inventory impairments and abandonments (I&A)

 
 
1,676

 
 
14,512

 
 
1,676

 
Homebuilding gross profit/margin before I&A
100,719

16.2
%
 
107,068

17.5
%
 
308,372

17.3
%
 
268,945

17.1
%
Interest amortized to cost of sales
28,421

 
 
23,482

 
 
77,941

 
 
55,006

 
Homebuilding gross profit/margin before I&A and interest amortized to cost of sales
129,140

20.8
%
 
130,550

21.3
%
 
386,313

21.6
%
 
323,951

20.6
%
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries)

 
 

 
 
(3,612
)
 
 
13,582

 
Additional insurance recoveries from a third-party insurer

 
 

 
 
(15,500
)
 
 

 
Homebuilding gross profit/margin before I&A, interest amortized to cost of sales, unexpected warranty costs and additional insurance recoveries from a third-party insurer
$
129,140

20.8
%
 
$
130,550

21.3
%
 
$
367,201

20.6
%
 
$
337,533

21.5
%





Reconciliation of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, debt extinguishment, impairments and abandonments) to total Company net income, 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.
In addition, given the unusual size and nature of certain charges recorded during the periods presented, Adjusted EBITDA is also shown excluding these charges. Management believes that this representation best reflects the operating characteristics of the Company.
 
 
 
Quarter Ended
September 30,
 
Fiscal Year Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Net income (loss)
 
$
(854
)
 
$
356,255

 
$
4,693

 
$
344,094

Expense (benefit) from income taxes
 
14,415

 
(325,196
)
 
16,224

 
(325,927
)
Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization
 
34,338

 
30,790

 
104,710

 
85,986

Depreciation and amortization and stock compensation amortization
 
6,474

 
6,307

 
21,752

 
19,473

Inventory impairments and abandonments (a)
 
184

 
2,860

 
14,572

 
3,109

Loss on extinguishment of debt
 
11,393

 
80

 
13,423

 
80

Adjusted EBITDA
 
$
65,950

 
$
71,096

 
$
175,374

 
$
126,815

Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries)
 

 

 
(3,612
)
 
13,582

Additional insurance recoveries from third-party insurer
 

 

 
(15,500
)
 

Litigation settlement in discontinued operations
 

 

 

 
3,660

Adjusted EBITDA excluding unexpected warranty costs, additional insurance recoveries from a third-party insurer and a litigation settlement in discontinued operations
 
$
65,950

 
$
71,096

 
$
156,262

 
$
144,057

 
(a) Amount for the year ended September 30, 2016 excludes $0.7 million in capitalized interest impaired during the current period. This amount is included in the line above titled “Interest amortized to home construction and land sales expenses, capitalized interest impaired and interest expense not qualified for capitalization.”