Investors | News Releases | Beazer Homes Reports Strong Third Quarter Fiscal 2020 Results; Announces Succession Plan for Chief Financial Officer

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Beazer Homes Reports Strong Third Quarter Fiscal 2020 Results; Announces Succession Plan for Chief Financial Officer

July 30, 2020 at 4:15 PM EDT
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ATLANTA--(BUSINESS WIRE)--Jul. 30, 2020-- Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three and nine months ended June 30, 2020.

“We generated very strong results in the third quarter, as improvements in home closings and margins allowed us to substantially improve profitability,” said Allan P. Merrill, Chairman and Chief Executive Officer of Beazer Homes. “After weathering difficult sales conditions in April, we experienced much stronger demand in the second half of the quarter, culminating in our best June sales month in more than ten years. We also took steps to adjust to the new operating environment by enhancing our liquidity, re-underwriting proposed land acquisition transactions and improving our cost structure. Looking forward, we’re optimistic about the prospects for new home demand as well as our ability to execute on our Balanced Growth strategy.”

Beazer Homes Fiscal Third Quarter 2020 Highlights and Comparison to Fiscal Third Quarter 2019

  • Net income from continuing operations of $15.3 million, compared to net income from continuing operations of $11.6 million in fiscal third quarter 2019
  • Adjusted EBITDA of $54.0 million, up 39.6%
  • Homebuilding revenue of $532.5 million, up 10.4% on a 7.6% increase in home closings to 1,366 and a 2.6% increase in average selling price to $389.8 thousand
  • Homebuilding gross margin was 17.0%, up 210 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 21.2%, up 180 basis points
  • SG&A as a percentage of total revenue was 11.7%, down 50 basis points year-over-year
  • Unit orders of 1,372, down 11.1% on a decrease in orders/community/month to 2.7 and a decrease in average community count to 167
  • Dollar value of backlog of $884.9 million, which was essentially flat
  • Unrestricted cash at quarter end was $152.3 million; total liquidity was $402.3 million

The following provides additional details on the Company's performance during the fiscal third quarter 2020:

Profitability. Third quarter net income from continuing operations was $15.3 million, generating diluted earnings per share of $0.51. This included impairment charges of $2.3 million and restructuring and severance charges of $1.4 million. Adjusted EBITDA of $54.0 million was up $15.3 million year-over-year.

Orders. Net new orders for the third quarter decreased 11.1% year-over-year, to 1,372. The decrease in net new orders was driven by a decrease in the absorption rate to 2.7 sales per community per month, down from 3.0 in the previous year, and a decrease in average community count to 167, down from 174 in the previous year. Net orders improved sequentially each month with April orders down, May orders essentially flat, and June orders up more than 40% year-over-year. The cancellation rate for the quarter was 21.1%, up 590 basis points year-over-year. Early in the quarter, the cancellation rate spiked from a combination of declining orders and increasing cancellations. As conditions improved, the cancellation rate normalized, ending with a June cancellation rate of 13.9%.

Homebuilding Revenue. Third quarter closings rose 7.6% to 1,366 homes. Combined with a 2.6% increase in the average selling price to $389.8 thousand, homebuilding revenue was $532.5 million, up 10.4% year-over-year.

Backlog. The dollar value of homes in backlog as of June 30, 2020 was $884.9 million, or 2,237 homes, essentially flat compared to $881.6 million, or 2,264 homes, at the same time last year. The average selling price of homes in backlog was $395.6 thousand, up 1.6% year-over-year.

Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 21.2% for the third quarter, up 180 basis points year-over-year. The increase in homebuilding gross margin was primarily driven by margin improvement on spec homes and reduced incentives.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.7% for the quarter, down 50 basis points year-over-year.

Liquidity. At the close of the third quarter, the Company had approximately $402.3 million of available liquidity, including $152.3 million of unrestricted cash and $250.0 million available on its secured revolving credit facility.

Succession Plan for Chief Financial Officer

The Company also announced the retirement and succession plans for Robert L. Salomon, Executive Vice President and Chief Financial Officer. Mr. Salomon has decided to retire after a 28-year career in homebuilding following the filing of the Company’s 10-K for the fiscal year ending September 30, 2020 in November. Mr. Salomon joined the Company as Chief Accounting Officer in February 2008 and was promoted to Executive Vice President and Chief Financial Officer in June 2011. Upon Mr. Salomon’s retirement, the Company will be appointing David I. Goldberg to serve as Senior Vice President and Chief Financial Officer. Mr. Goldberg currently serves as the Company’s Vice President and Treasurer, positions he has held since joining the Company in March 2015.

“Bob has been an indispensable part of our management team from the day he joined the Company,” said Mr. Merrill. “He’s been my valued business partner as well as a mentor to operational and corporate leaders across the Company. Since joining us, he has successfully led or managed our financial reporting, internal audit, business planning, capital markets and treasury activities, and in recent years he has overseen crucial corporate functions including land acquisition and information technology. While we will miss his contributions after the end of our fiscal year, he has established a deep and talented finance team, led by David Goldberg. I am very confident that David, working closely with our experienced Senior Leadership Team, will allow us to complete a smooth and successful leadership transition in fiscal 2021.”

Summary results for the three and nine months ended June 30, 2020 are as follows:

 

Three Months Ended June 30,

 

2020

 

2019

 

Change*

New home orders, net of cancellations

1,372

 

 

1,544

 

 

(11.1)

%

Orders per community per month

2.7

 

 

3.0

 

 

(7.4)

%

Average active community count

167

 

 

174

 

 

(4.0)

%

Actual community count at quarter-end

164

 

 

173

 

 

(5.2)

%

Cancellation rates

21.1

%

 

15.2

%

 

590 bps

 

 

 

 

 

 

Total home closings

1,366

 

 

1,269

 

 

7.6

%

Average selling price (ASP) from closings (in thousands)

$

389.8

 

 

$

380.1

 

 

2.6

%

Homebuilding revenue (in millions)

$

532.5

 

 

$

482.3

 

 

10.4

%

Homebuilding gross margin

17.0

%

 

14.9

%

 

210 bps

Homebuilding gross margin, excluding impairments and abandonments (I&A)

17.1

%

 

14.9

%

 

220 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales

21.2

%

 

19.4

%

 

180 bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

20.3

 

 

$

9.4

 

 

$

10.8

 

Expense (benefit) from income taxes (in millions)

$

5.0

 

 

$

(2.2)

 

 

$

7.2

 

Income from continuing operations (in millions)

$

15.3

 

 

$

11.6

 

 

$

3.6

 

Basic income per share from continuing operations

$

0.51

 

 

$

0.38

 

 

$

0.13

 

Diluted income per share from continuing operations

$

0.51

 

 

$

0.38

 

 

$

0.13

 

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

20.3

 

 

$

9.4

 

 

$

10.8

 

Gain on debt extinguishment (in millions)

$

—

 

 

$

0.4

 

 

$

(0.4)

 

Inventory impairments and abandonments (in millions)

$

(2.3)

 

 

$

—

 

 

$

(2.3)

 

Restructuring and severance charges

$

(1.4)

 

 

$

—

 

 

$

(1.4)

 

Income from continuing operations excluding gain on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges before income taxes (in millions)

$

24.0

 

 

$

9.0

 

 

$

15.0

 

Income from continuing operations excluding gain on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges after income taxes (in millions)+

$

17.6

 

 

$

11.2

 

 

$

6.4

 

 

 

 

 

 

 

Net income

$

15.2

 

 

$

11.6

 

 

$

3.6

 

 

 

 

 

 

 

Land and land development spending (in millions)

$

55.7

 

 

$

102.8

 

 

$

(47.1)

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

54.0

 

 

$

38.7

 

 

$

15.3

 

LTM Adjusted EBITDA (in millions)

$

209.4

 

 

$

188.2

 

 

$

21.1

 

*

Change and totals are calculated using unrounded numbers.

+

For the three months ended June 30, 2020, inventory impairments and abandonments and restructuring and severance charges were tax-effected at the effective tax rate of 26.4%. For the three months ended June 20, 2019, gain on debt extinguishment was tax-effected at the effective tax rate of 25.7%.

"LTM" indicates amounts for the trailing 12 months.

 

Nine Months Ended June 30,

 

2020

 

2019

 

Change*

New home orders, net of cancellations

4,284

 

 

4,118

 

 

4.0

%

LTM orders per community per month

2.9

 

 

2.7

 

 

7.4

%

Cancellation rates

17.3

%

 

16.1

%

 

120 bps

 

 

 

 

 

 

Total home closings

3,755

 

 

3,486

 

 

7.7

%

ASP from closings (in thousands)

$

382.9

 

 

$

374.1

 

 

2.4

%

Homebuilding revenue (in millions)

$

1,437.9

 

 

$

1,304.2

 

 

10.2

%

Homebuilding gross margin

16.1

%

 

6.8

%

 

930 bps

Homebuilding gross margin, excluding impairments and abandonments (I&A)

16.2

%

 

15.2

%

 

100 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales

20.7

%

 

19.6

%

 

110 bps

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes (in millions)

$

37.6

 

 

$

(126.1)

 

 

$

163.8

 

Expense (benefit) from income taxes (in millions)

$

8.9

 

 

$

(44.3)

 

 

$

53.2

 

Income (loss) from continuing operations (in millions)

$

28.7

 

 

$

(81.9)

 

 

$

110.6

 

Basic income (loss) per share from continuing operations

$

0.96

 

 

$

(2.65)

 

 

$

3.61

 

Basic income (loss) per share from continuing operations

$

0.95

 

 

$

(2.65)

 

 

$

3.60

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes (in millions)

$

37.6

 

 

$

(126.1)

 

 

$

163.8

 

Gain on debt extinguishment (in millions)

$

—

 

 

$

0.6

 

 

$

(0.6)

 

Inventory impairments and abandonments (in millions)

$

(2.3)

 

 

$

(148.6)

 

 

$

146.4

 

Restructuring and severance charges

$

(1.4)

 

 

$

—

 

 

$

(1.4)

 

Income from continuing operations excluding gain on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges before income taxes (in millions)

$

41.3

 

 

$

21.9

 

 

$

19.4

 

Income from continuing operations excluding gain on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges after income taxes (in millions)+

$

31.4

 

 

$

25.5

 

 

$

5.9

 

 

 

 

 

 

 

Net income (loss)

$

28.5

 

 

$

(81.9)

 

 

$

110.5

 

 

 

 

 

 

 

Land and land development spending (in millions)

$

324.7

 

 

$

363.6

 

 

$

(38.9)

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

127.3

 

 

$

98.1

 

 

$

29.2

 

*

Change and totals are calculated using unrounded numbers.

+

For the nine months ended June 30, 2020, inventory impairments and abandonments and restructuring and severance charges were tax-effected at the effective tax rate of 26.4%. For the nine months ended June 30, 2019, gain on debt extinguishment and inventory impairments and abandonments were tax-effected at the effective tax rate of 25.7%.

“LTM” indicates amounts for the trailing 12 months.

 

As of June 30,

 

2020

 

2019

 

Change

Backlog units

2,237

 

 

2,264

 

 

(1.2)

%

Dollar value of backlog (in millions)

$

884.9

 

 

$

881.6

 

 

0.4

%

ASP in backlog (in thousands)

$

395.6

 

 

$

389.4

 

 

1.6

%

Land and lots controlled

18,093

 

 

21,717

 

 

(16.7)

%

Conference Call

The Company will hold a conference call on July 30, 2020 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the pass code “8571348". A replay of the conference call will be available, until 10:00 PM ET on August 7, 2020 at 886-463-2180 (for international callers, dial 203-369-1377) with pass code “3740”.

About Beazer Homes

Headquartered in Atlanta, Beazer Homes (NYSE: BZH) is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in – saving you money every month. With Beazer's Choice Plans™, you can personalize your primary living areas – giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, which will save you thousands over the life of your loan.

We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on Facebook, Instagram 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) the potential negative impact of the ongoing COVID-19 pandemic, which, in addition to exacerbating each of the risks listed below, may include a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home, an inability to sell and build homes in a typical manner or at all, increased costs or decreased supply of building materials or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations, and recognizing charges in future periods, which may be material, for goodwill impairments, inventory impairments and/or land option contract abandonments; (ii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, which have worsened and may continue to worsen as a result of the COVID-19 pandemic, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; (iii) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (iv) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (v) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market; (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) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select California assets during the second quarter of fiscal 2019; (viii) factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; (ix) 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; (x) increases in mortgage interest rates, increased disruption in the availability of mortgage financing, changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes or an increased number of foreclosures; (xi) increased competition or delays in reacting to changing consumer preferences in home design; (xii) natural disasters 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; (xiii) the potential recoverability of our deferred tax assets; (xiv) 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; (xv) the results of litigation or government proceedings and fulfillment of any related obligations; (xvi) the impact of construction defect and home warranty claims; (xvii) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xviii) the impact of information technology failures, cybersecurity issues 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, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time-to-time, and it is not possible to predict all such factors.

-Tables Follow-

BEAZER HOMES USA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Three Months Ended

 

Nine Months Ended

 

June 30,

 

June 30,

in thousands (except per share data)

2020

 

2019

 

2020

 

2019

Total revenue

$

533,112

 

 

$

482,738

 

 

$

1,440,329

 

 

$

1,306,038

 

Home construction and land sales expenses

441,788

 

 

410,974

 

 

1,207,023

 

 

1,107,681

 

Inventory impairments and abandonments

2,266

 

 

—

 

 

2,266

 

 

148,618

 

Gross profit

89,058

 

 

71,764

 

 

231,040

 

 

49,739

 

Commissions

20,851

 

 

18,230

 

 

55,660

 

 

49,965

 

General and administrative expenses

41,276

 

 

40,749

 

 

121,025

 

 

116,763

 

Depreciation and amortization

3,780

 

 

3,242

 

 

10,834

 

 

8,912

 

Operating income (loss)

23,151

 

 

9,543

 

 

43,521

 

 

(125,901)

 

Equity in income of unconsolidated entities

4

 

 

299

 

 

138

 

 

316

 

Gain on extinguishment of debt

—

 

 

358

 

 

—

 

 

574

 

Other expense, net

(2,904)

 

 

(755)

 

 

(6,030)

 

 

(1,134)

 

Income (loss) from continuing operations before income taxes

20,251

 

 

9,445

 

 

37,629

 

 

(126,145)

 

Expense (benefit) from income taxes

4,981

 

 

(2,180)

 

 

8,940

 

 

(44,260)

 

Income (loss) from continuing operations

15,270

 

 

11,625

 

 

28,689

 

 

(81,885)

 

Loss from discontinued operations, net of tax

(82)

 

 

(23)

 

 

(141)

 

 

(64)

 

Net income (loss)

$

15,188

 

 

$

11,602

 

 

$

28,548

 

 

$

(81,949)

 

Weighted average number of shares:

 

 

 

 

 

 

 

Basic

29,597

 

 

30,250

 

 

29,738

 

 

30,926

 

Diluted

29,674

 

 

30,489

 

 

30,014

 

 

30,926

 

 

 

 

 

 

 

 

 

Basic income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

0.51

 

 

$

0.38

 

 

$

0.96

 

 

$

(2.65)

 

Discontinued operations

—

 

 

—

 

 

—

 

 

—

 

Total

$

0.51

 

 

$

0.38

 

 

$

0.96

 

 

$

(2.65)

 

Diluted income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

0.51

 

 

$

0.38

 

 

$

0.95

 

 

$

(2.65)

 

Discontinued operations

—

 

 

—

 

 

—

 

 

—

 

Total

$

0.51

 

 

$

0.38

 

 

$

0.95

 

 

$

(2.65)

 

 

Three Months Ended

 

Nine Months Ended

 

June 30,

 

June 30,

Capitalized Interest in Inventory

2020

 

2019

 

2020

 

2019

Capitalized interest in inventory, beginning of period

$

134,693

 

 

$

144,756

 

 

$

136,565

 

 

$

144,645

 

Interest incurred

23,012

 

 

26,782

 

 

66,839

 

 

77,506

 

Capitalized interest impaired

(792)

 

 

—

 

 

(792)

 

 

(13,907)

 

Interest expense not qualified for capitalization and included as other expense

(3,003)

 

 

(961)

 

 

(6,373)

 

 

(1,800)

 

Capitalized interest amortized to home construction and land sales expenses

(21,814)

 

 

(21,752)

 

 

(64,143)

 

 

(57,619)

 

Capitalized interest in inventory, end of period

$

132,096

 

 

$

148,825

 

 

$

132,096

 

 

$

148,825

 

BEAZER HOMES USA, INC. 

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

in thousands (except share and per share data)

June 30, 2020

 

September 30, 2019

ASSETS

 

 

 

Cash and cash equivalents

$

152,266

 

 

$

106,741

 

Restricted cash

13,086

 

 

16,053

 

Accounts receivable (net of allowance of $298 and $304, respectively)

17,846

 

 

26,395

 

Income tax receivable

9,224

 

 

4,935

 

Owned inventory

1,511,560

 

 

1,504,248

 

Investments in unconsolidated entities

4,044

 

 

3,962

 

Deferred tax assets, net

233,986

 

 

246,957

 

Property and equipment, net

24,078

 

 

27,421

 

Operating lease right-of-use assets

14,060

 

 

—

 

Goodwill

11,376

 

 

11,376

 

Other assets

10,637

 

 

9,556

 

Total assets

$

2,002,163

 

 

$

1,957,644

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Trade accounts payable

$

131,200

 

 

$

131,152

 

Operating lease liabilities

16,292

 

 

—

 

Other liabilities

110,630

 

 

109,429

 

Obligations related to land not owned under option agreements

—

 

 

—

 

Total debt (net of debt issuance costs of $11,450 and $12,470, respectively)

1,179,725

 

 

1,178,309

 

Total liabilities

1,437,847

 

 

1,418,890

 

Stockholders’ equity:

 

 

 

Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)

—

 

 

—

 

Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,020,066 issued and outstanding and 30,933,110 issued and outstanding, respectively)

31

 

 

31

 

Paid-in capital

851,289

 

 

854,275

 

Accumulated deficit

(287,004)

 

 

(315,552)

 

Total stockholders’ equity

564,316

 

 

538,754

 

Total liabilities and stockholders’ equity

$

2,002,163

 

 

$

1,957,644

 

 

 

 

 

Inventory Breakdown

 

 

 

Homes under construction

$

607,731

 

 

$

507,542

 

Development projects in progress

647,583

 

 

738,201

 

Land held for future development

28,531

 

 

28,531

 

Land held for sale

16,863

 

 

12,662

 

Capitalized interest

132,096

 

 

136,565

 

Model homes

78,756

 

 

80,747

 

Total owned inventory

$

1,511,560

 

 

$

1,504,248

 

BEAZER HOMES USA, INC. 

CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

SELECTED OPERATING DATA

2020

 

2019

 

2020

 

2019

Closings:

 

 

 

 

 

 

 

West region

819

 

 

674

 

 

2,248

 

 

1,881

 

East region

220

 

 

246

 

 

647

 

 

647

 

Southeast region

327

 

 

349

 

 

860

 

 

958

 

Total closings

1,366

 

 

1,269

 

 

3,755

 

 

3,486

 

 

 

 

 

 

 

 

 

New orders, net of cancellations:

 

 

 

 

 

 

 

West region

775

 

 

850

 

 

2,465

 

 

2,175

 

East region

287

 

 

334

 

 

871

 

 

869

 

Southeast region

310

 

 

360

 

 

948

 

 

1,074

 

Total new orders, net

1,372

 

 

1,544

 

 

4,284

 

 

4,118

 

 

 

As of June 30,

Backlog units at end of period:

 

2020

 

2019

West region

 

1,199

 

 

1,152

 

East region

 

565

 

 

503

 

Southeast region

 

473

 

 

609

 

Total backlog units

 

2,237

 

 

2,264

 

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

 

$

884.9

 

 

$

881.6

 

in thousands

Three Months Ended June 30,

 

Nine Months Ended June 30,

SUPPLEMENTAL FINANCIAL DATA

2020

 

2019

 

2020

 

2019

Homebuilding revenue:

 

 

 

 

 

 

 

West region

$

303,500

 

 

$

238,723

 

 

$

825,129

 

 

$

658,097

 

East region

108,126

 

 

117,934

 

 

295,782

 

 

299,450

 

Southeast region

120,839

 

 

125,659

 

 

316,939

 

 

346,696

 

Total homebuilding revenue

$

532,465

 

 

$

482,316

 

 

$

1,437,850

 

 

$

1,304,243

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Homebuilding

$

532,465

 

 

$

482,316

 

 

$

1,437,850

 

 

$

1,304,243

 

Land sales and other

647

 

 

422

 

 

2,479

 

 

1,795

 

Total revenue

$

533,112

 

 

$

482,738

 

 

$

1,440,329

 

 

$

1,306,038

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

Homebuilding

$

90,282

 

 

$

71,719

 

 

$

232,134

 

 

$

88,190

 

Land sales and other

(1,224)

 

 

45

 

 

(1,094)

 

 

(38,451)

 

Total gross profit (loss)

$

89,058

 

 

$

71,764

 

 

$

231,040

 

 

$

49,739

 

Reconciliation of homebuilding gross profit and the related gross margin before impairments and abandonments and interest amortized to cost of sales 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.

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

in thousands

2020

 

2019

 

2020

 

2019

Homebuilding gross profit/margin

$

90,282

 

17.0

%

 

$

71,719

 

14.9

%

 

$

232,134

 

16.1

%

 

$

88,190

 

6.8

%

Inventory impairments and abandonments (I&A)

1,009

 

 

 

—

 

 

 

1,009

 

 

 

110,030

 

 

Homebuilding gross profit/margin before I&A

91,291

 

17.1

%

 

71,719

 

14.9

%

 

233,143

 

16.2

%

 

198,220

 

15.2

%

Interest amortized to cost of sales

21,814

 

 

 

21,752

 

 

 

64,143

 

 

 

57,619

 

 

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

$

113,105

 

21.2

%

 

$

93,471

 

19.4

%

 

$

297,286

 

20.7

%

 

$

255,839

 

19.6

%

Reconciliation of Adjusted EBITDA to total company net income (loss), 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. These EBITDA measures should not be considered alternatives to net income (loss) determined in accordance with GAAP as an indicator of operating performance.

The reconciliation of Adjusted EBITDA to total company net income (loss) below differs from prior year, as it reclassifies stock-based compensation expense from an adjustment within EBITDA to an adjustment within Adjusted EBITDA in order to accurately present EBITDA per its definition.

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

LTM Ended

in thousands

2020

 

2019

 

2020

 

2019

 

2020

 

2019

Net income (loss)

$

15,188

 

 

$

11,602

 

 

$

28,548

 

 

$

(81,949)

 

 

$

30,977

 

 

$

(21,344)

 

Expense (benefit) from income taxes

4,958

 

 

(2,187)

 

 

8,900

 

 

(44,279)

 

 

15,934

 

 

(63,139)

 

Interest amortized to home construction and land sales expenses and capitalized interest impaired

22,606

 

 

21,752

 

 

64,935

 

 

71,526

 

 

102,350

 

 

106,058

 

Interest expense not qualified for capitalization

3,003

 

 

961

 

 

6,373

 

 

1,800

 

 

7,682

 

 

1,835

 

EBIT

45,755

 

 

32,128

 

 

108,756

 

 

(52,902)

 

 

156,943

 

 

23,410

 

Depreciation and amortization

3,780

 

 

3,242

 

 

10,834

 

 

8,912

 

 

16,681

 

 

13,490

 

EBITDA

49,535

 

 

35,370

 

 

119,590

 

 

(43,990)

 

 

173,624

 

 

36,900

 

Stock-based compensation expense

1,659

 

 

3,699

 

 

4,869

 

 

7,993

 

 

7,402

 

 

10,559

 

(Gain) loss on extinguishment of debt

—

 

 

(358)

 

 

—

 

 

(574)

 

 

25,494

 

 

1,361

 

Inventory impairments and abandonments (b)

1,474

 

 

—

 

 

1,474

 

 

134,711

 

 

1,474

 

 

139,081

 

Restructuring and severance expenses

1,361

 

 

—

 

 

1,361

 

 

—

 

 

1,361

 

 

—

 

Adjusted EBITDA

$

54,029

 

 

$

38,711

 

 

$

127,294

 

 

$

98,140

 

 

$

209,355

 

 

$

188,242

 

(a)

“LTM” indicates amounts for the trailing 12 months.

(b)

In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled “Interest amortized to home construction and land sales expenses and capitalized interest impaired.”

 

Beazer Homes USA, Inc.
David I. Goldberg
Vice President of Treasury and Investor Relations
770-829-3700
investor.relations@beazer.com

Source: Beazer Homes USA, Inc.

 

Terms and Conditions

Last Updated July 1, 2020

These Terms and Conditions (“Terms”) apply to the Websites, online platforms, and mobile applications of Beazer Homes and its affiliates, including companies with Beazer in their name, such as Beazer Homes USA, Inc., Beazer Homes, LLC., Beazer Home Sales, Inc., Beazer Homes Holdings, LLC, Beazer Homes Texas, LP, Beazer Homes Indiana, LLP and Beazer General Services, Inc., and those without Beazer in their name, such as Charity Title Agency, LLC and Charity Title Group, LLC (collectively referred to as “Beazer Homes,” also, “we,” or “us,” or “our”), such as beazer.com, any mobile site and applications, the Mortgage Choice CompARE technology, and any of the features of the Websites (collectively, the “Websites”). Your use of the Websites constitutes your agreement to be bound by these Terms. If you do not wish to be bound by these Terms, you may not access or use this Websites. “You”, “Your” and “User” refers to the individual accessing the Websites.

1. Scope of Terms

This Websites and all content and information provided therein (“Beazer Homes Content”) may be used only under these Terms. User represents and warrants that it possesses the legal right and ability to enter into the Terms and use the Websites in accordance with the Terms.

Beazer Homes reserves the right to modify the Terms at any time, which shall become effective immediately upon posting, without further notice to User. It is your responsibility to review these Terms prior to each use of the Websites, and User's continued access or use of this Websites after modifications have become effective shall be deemed conclusive acceptance of the modified Terms.

Beazer Homes has the exclusive right to control accessibility, hours of use, features on the Websites, and any other information found on the Websites. Beazer Homes can restrict access to any or all portions of the Websites or remove any information or content from the Websites at any time. Beazer Homes reserves the right, but shall not be obligated, to monitor use of the Websites.

User is solely responsible for providing the equipment related to accessing the Websites, including but not limited to all computer, remote communications equipment, telephone, and other equipment.

2. User Account and Limitations

Certain features and areas of the Websites may be available only with registration and login. If you are required to register and select a login and password ("Login Information"), you must keep Your Login Information confidential. Your Login Information is personal to you, and you may not allow any third party to use it under any circumstances. Beazer Homes is not liable for any harm caused by or related to the theft, misappropriation, disclosure, or unauthorized use of Your Login Information. You will, at all times, provide true, accurate, current, authorized, and complete information when submitting information or materials on the Websites, including, without limitation, information required to be provided through a Websites registration or when accessing Websites content. If any false, inaccurate, untrue, unauthorized or incomplete information is submitted by You, Beazer Homes reserves the right to terminate your access and use of the Websites.

Beazer Homes is not responsible for and makes no warranties, express or implied, as to any information submitted by users through the Websites ("User Content"). User content may be edited, removed, modified, published, transmitted, and displayed by Beazer Homes and you waive any rights you may have in having the material altered or changed in a manner not agreeable to you. User Content may also be included in Beazer Homes’ RSS feeds, APIs and made available for republishing through other formats.

You grant Beazer Homes a perpetual, nonexclusive, world-wide, royalty free, sub-licensable license to the User Content, which includes without limitation the right for Beazer Homes or any third party it designates, to use, copy, transmit, excerpt, publish, distribute, publicly display, publicly perform, create derivative works of, host, index, cache, tag, encode, modify and adapt (including without limitation the right to adapt to streaming, downloading, broadcast, mobile, digital, thumbnail, scanning or other technologies) in any form or media now known or hereinafter developed, any User Content posted by You on or to the Websites, including any User Content posted on or to the Websites through a third party.

Users may not do any of the following while using the Websites: Interfere with another user's use and enjoyment of the Websites; upload any message, information, data, text, software, graphic files, or other materials ("Content") that is unlawful, harmful, threatening, abusive, harassing, tortious, defamatory, vulgar, obscene, libelous, that may be invasive of another's privacy, hateful, racially, sexually, ethnically, or otherwise objectionable; upload Content that contains a virus, corrupted file, or other harmful component; impersonate any person or entity, including but not limited to Beazer Homes personnel, or falsely state or otherwise misrepresent any affiliation with any person or entity, or upload any Content under a fictitious name; intentionally or unintentionally violate or encourage or assist another to violate any law or regulation in connection with your use or another's use of the Websites; or upload any Content that violates or infringes any patent, trademark, trade secret, copyright, privacy or any right, of whatever nature, of anyone.

If you violate any of the terms of this Section, your permission to use the Websites automatically terminates.

3. Proprietary Rights

Copyright © 2020 Beazer Homes USA, Inc. All rights reserved. The information and material provided on this Websites is provided as a service to the public and are to be used for personal informational purposes only. No content from this Websites may be copied, uploaded, posted, transmitted, distributed or reproduced in any way, except that users, subject to any express restrictions relating to specific content, may display, download or print portions of the content solely for user's own non-commercial use. User agrees not to alter any proprietary notices from content downloaded from the Websites.

You are granted a personal, revocable, limited, non-exclusive, non-transferable license to access and use the Websites and the Beazer Homes Content, conditioned on your continued acceptance of, and compliance with the Terms.

Beazer Homes’ trademarks, service marks, logos, brands, and brand names, trade dress and trade names and other distinctive identification (collectively "Beazer Homes Marks") are exclusively owned by Beazer Homes and may not be used without the express prior written permission of Beazer Homes.

4. Equal Housing Opportunity

Beazer Homes and its affiliated companies are pledged to the letter and spirit of the U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support affirmative advertising and marketing programs in which there are no barriers to obtaining housing because of race, color, religion, gender, handicap, familial status, or national origin.

5. Equal Opportunity Employer

Beazer Homes is an equal opportunity employer, and considers all applicants without regard to race, color, sex, religion, disability, marital status, age, national origin, or any other legally protected status.

6. Mortgage Choice

Beazer Homes allows customers to seek information regarding financing for a home purchase by allowing customers to provide information to potential lenders and mortgage loan originators (“Lenders”) through the use of the Mortgage Choice program pages and the CompARE technology. Beazer Homes is not a Lender, mortgage broker, loan originator, loan processor, or underwriter. Beazer Homes does not aid or assist borrowers in obtaining loans, solicit borrowers or Lenders for loans, offer or negotiate terms of loans, or make loans or credit decisions in connection with loans. Beazer Homes does not take applications for credit or issue pre-approval letters. Any request for quotes or pre-approval submitted by a customer to a Lender through the CompARE technology is not an application for credit. Beazer Homes does not endorse or recommend the products of any particular lender. The “Choice Lenders” listed in the Mortgage Choice program and in the CompARE technology are independent entities and there is no affiliation between Beazer Homes and the Choice Lenders. Nothing contained in the Mortgage Choice program is an offer to lend or a commitment for a loan, and Beazer Homes does not guarantee any specific loan terms and conditions offered to you by a Lender will be granted, or that you will be offered any type of loan by any Lender. Beazer Homes is not an agent of either any customer or any Lender. Beazer Homes is only providing an administrative service to customers and participating lenders.

The CompARE technology is designed to assist home buyers in comparing loan estimates they receive from Lenders after home buyers submit loan applications to those Lenders. The CompARE technology analyzes those disclosures and provides comparison points to help the home buyer decipher which Lender is offering the best mortgage based on the home buyer’s preferences and costs to obtain the mortgage. Beazer Homes will not counsel home buyers in making loan estimate comparisons or selecting a Lender.

Beazer Homes does not require use of a Choice Lender in order to purchase a home, and home buyers are free to choose any lender. Beazer Homes does not (and will not) accept or receive compensation of any kind in connection with the Mortgage Choice program or the CompARE technology.

Lenders may elect to respond to your requests with non-binding proposals of the terms they would offer you, as well as their contact information. Beazer Homes also allows customers to request that Lenders pre-qualify them for home loans. Qualification for pre-approval does not constitute an offer to lend, a commitment for a loan, or a guarantee of specific rates or terms. If you, as a customer, choose to contact a Lender through the Mortgage Choice program, you authorize Beazer Homes to provide your name and contact information you provide to the Lender(s) you choose, along with your quote or pre-qualification request. You acknowledge that, by submitting your contact request form through Mortgage Choice, you may receive telemarketing calls from or on behalf of the Lender you choose at the telephone number(s) you provide.

Any loan or other business conducted is between you and the Lender. Lenders participating in Mortgage Choice are solely responsible for their services. Beazer Homes is not responsible for any errors or delays caused by customers or any Lenders in the loan process. When a Lender requests to participate in Mortgage Choice, Beazer Homes uses commercially reasonable efforts to confirm the Lender's license (in the states claimed in the Lenders profile) and/or employment with a lending institution. You are responsible, however, to confirm credentials if you choose to contact the Lender.

Beazer Homes assumes no responsibility for any result or consequence related directly or indirectly to any action or inaction that customers take based on use of Mortgage Choice and the CompARE technology. Beazer Homes shall not be liable for any damages or costs of any type arising out of or in any way connected with participation in the Mortgage Choice program and any use of the CompARE technology or the services offered by Lenders. Beazer Homes reserves the right, at any time and in its sole discretion, to discontinue, suspend, or terminate the Mortgage Choice program or the CompARE technology or participation of any Lender or other user from the Mortgage Choice program and the CompARE technology.

7. Charity Title Agency, LLC

Charity Title Agency, LLC is a wholly-owned subsidiary of Charity Title Group, LLC, which is ultimately owned by Beazer Homes. Charity Title Agency, LLC operates as a title insurance agency in the State of Texas. Beazer Homes does not require use of Charity Title Agency, LLC in order to purchase a home, and home buyers are free to choose any title insurance agency. For more information about Charity Title Agency, LLC’s charitable giving, please visit https://CharityTitleGroup.com.

8. Third Party Links and Content

As a convenience to our users, our Websites may include links to other web sites and third party content. Inclusion of any third party link or content does not imply an endorsement or recommendation by Beazer Homes. Any mention on the Websites of products or services provided by third parties is for informational purposes only and constitutes neither an endorsement nor a recommendation by Beazer Homes. Beazer Homes assumes no responsibility for those products or services. Any dealings among any User and any third parties mentioned on or found through the Websites are solely between the User and the third parties, and are subject to any terms, conditions, warranties, or representations associated with those dealings.

9. Notice Regarding Solicitation, Prices, Specifications and Related Information

The information contained on this Websites may contain products, specifications, services, and prices that are not available in your state or local market. This information does not constitute an offer to sell real property, and is not intended as a solicitation of users residing in states where Beazer Homes and its affiliates are not authorized to conduct business. This information is for informational purposes only, and does not constitute a warranty of any product or service provided by Beazer Homes.

10. Notice Regarding Floorplans, Diagrams, Graphical Depictions and Photographs

Photos of completed homes are provided for general reference only. Please see your New Home Counselor for renderings and photos of any home or model under construction. Floorplans are general depictions of similar plans. All measurements, dimensions, sizes and wall angles are approximate and vary for each plan type. Stated dimensions and square footages are approximate and should not be used a representation of the home's precise or actual size. Actual views may vary. Artist’s renderings are conceptual and all features are subject to change without notice. All amenities are subject to change without notice. These drawings and floor plans are conceptual only and for the convenience of reference. They should not be relied upon as representation express or implied, of the final detail, features or dimensions of any home. Beazer Homes expressly reserves the right to make any modifications, revisions, and changes it deems desirable in its sole and absolute discretion or as may be required by law or governmental bodies. All features, specifications, plans and decorator items are subject to change without notice. Beazer Homes reserves the right, in its sole discretion, to make modifications to the plans, features, and specifications. Beazer Homes may substitute items of equal or greater value or as provided in a purchase contract signed with a purchaser.

If gate(s) and gatehouse(s) are located in a community, they are not designed or intended to serve as a security system. Beazer Homes makes no representation, express or implied, concerning the operation, use, hours, method of operation, maintenance or any other decisions concerning the gate(s) and gatehouse(s) or the safety and security of a home and a community in which it is located. Any access gate(s) may be left open for extended periods of time for the convenience of Beazer Homes and its subcontractors during construction of the home and other residences in a community. Gates may not be routinely left in a closed position until such time as most construction within a community has been completed. Crime exists in every neighborhood and Beazer Homes is not a provider of security and makes no representations regarding crime or security. If you are concerned about crime or security, please consult a security expert.

11. Disclaimers and Limitation of Liability

Beazer Homes takes reasonable efforts to ensure the information contained on this Websites, including pricing and availability, is accurate. However, Beazer Homes does not warrant the completeness or accuracy of such information, which is subject to change without notice. Beazer Homes cannot accept responsibility or liability for actions taken as a result of the use of this Websites.

USER ACCESSES THIS WEBSITES AT HIS OR HER OWN RISK. THE WEBSITES IS PROVIDED ON AN “AS IS, AS AVAILABLE” BASIS WITHOUT WARRANTY OF ANY KIND AND ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OR ANY WARRANTIES ARISING OUT OF A COURSE OF DEALING, TRADE OR PERFORMANCE, ARE SPECIFICALLY DISCLAIMED. NEITHER BEAZER HOMES NOR ITS AFFILIATES, EMPLOYEES, AGENTS, OR THIRD-PARTY CONTENT PROVIDERS SHALL BE LIABLE FOR ANY LOSS RESULTING FROM USE OR UNAVAILABILITY OF INFORMATION OR CONTENT ON THIS WEBSITES, INCLUDING BUT NOT LIMITED TO ANY LOST PROFITS, LOSS OR DAMAGE TO DATA, OR ANY DIRECT, INDIRECT, SPECIAL, CONSEQUENTIAL, COMPENSATORY, OR INCIDENTAL DAMAGES, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

THE PROVISIONS IN THIS SECTION ARE APPLICABLE TO ANY DAMAGE OR INJURY RESULTING FROM NEGLIGENCE OR OMISSION OF BEAZER HOMES, COMPUTER VIRUS OR OTHER SIMILAR ITEM, TELECOMMUNICATIONS ERRORS, OR UNAUTHORIZED ACCESS TO, OR USE OF, USER INFORMATION THROUGH THEFT OR ANY OTHER MEANS. USER AGREES THAT BEAZER HOMES IS NOT LIABLE FOR CRIMINAL, TORTIOUS, OR NEGLIGENT ACTIONS OR OMISSIONS OF THIRD PARTIES THAT AFFECT THIS WEB SITE.

12. Dispute Resolution

Your use of this Websites, and any disputes arising out of such use, shall be governed by the laws of the State of Georgia, without regard to choice of law provisions. Any claims or disputes relating to the Websites shall be resolved exclusively by binding arbitration pursuant to the commercial arbitration rules of the American Arbitration Association (AAA) and the arbitration shall occur in the State of Georgia, County of Fulton, unless Beazer Homes expressly consents in writing to a different location. The arbitration shall be conducted by one arbitrator who is selected pursuant to the rules of the AAA. The award of the arbitrator shall be final and judgment upon the award may be entered in a court of competent jurisdiction in the State of Georgia, County of Fulton, unless Beazer Homes expressly consents to a court in different jurisdiction. No arbitration shall be consolidated or combined with any other arbitration, or proceed on a representative basis or capacity for other parties, except with our Beazer Homes’ express written consent. THESE TERMS AND CONDITIONS PROVIDE THAT ALL CLAIMS OR DISPUTES REGARDING THE WEBSITES SHALL BE RESOLVED BY BINDING ARBITRATION, WHICH MAY NOT BE CONSOLIDATED OR COMBINED WITH ANY OTHER ARBITRATION, OR PROCEED ON A REPRESENTATIVE BASIS OR CAPACITY FOR OTHER PARTIES, WITHOUT BEAZER HOMES EXPRESS WRITTEN CONSENT. THEREFORE, YOU GIVE UP YOUR RIGHT TO GO TO COURT TO ASSERT OR DEFEND YOUR RIGHTS. YOU ALSO GIVE UP YOUR RIGHT TO BRING OR PARTICIPATE IN CLASS ACTIONS BROUGHT IN COURT, AND TO ARBITRATE OR PARTICIPATE IN ARBITRATION ON A CLASS BASIS. YOUR RIGHTS WILL BE DETERMINED BY A NEUTRAL ARBITRATOR, AND NOT BY A JUDGE OR JURY. Any disputes regarding the arbitration provisions shall be resolved by the arbitrator. In the event that any issues not addressed by this arbitration provision will be entertained by a court, the court must be a court of competent jurisdiction in the State of Georgia, County of Fulton. Each party will bear their own costs in connection with the arbitration.

13. Representations and Warranties; Indemnification

User understands and agrees that he or she is personally responsible for his or her behavior on the Websites.

User represents, warrants and covenants (a) that no User Content of any kind submitted by You to the Websites will (i) violate, plagiarize, or infringe the rights of any third party, including, without limitation, copyright, trademark, privacy or other personal or proprietary rights; or (ii) contain libelous or otherwise unlawful material; and (b) that you are at least thirteen years old.

User hereby indemnifies, defends and holds harmless Beazer Homes, and all officers, directors, owners, agents, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable attorneys' fees and costs, incurred by the Indemnified Parties in connection with any claim arising out of your use of the Websites, and/or any breach by You or any user of your account of these Terms or the foregoing representations, warranties and covenants. You shall reasonably and fully cooperate as reasonably requested by Beazer Homes in the defense of any such claim. Beazer Homes reserves the right, at its own expense, but not the obligation, to assume the exclusive defense and control of any matter subject to indemnification by you.

14. User-Generated Content

Beazer Homes allows customers to post reviews, testimonials, comments, photos, videos, and other content; so long as the content is related to the purpose of the site and is not illegal, obscene, threatening, defamatory, or infringing of intellectual property rights (including copyright). All content that you submit may be used, in whole or in part, at Beazer Homes’ sole discretion. Beazer Homes reserves the right (but not the obligation) to remove or edit such content that, in Beazer Homes’ sole discretion, violates these terms and conditions. If you do post content or submit material, you represent and warrant that you own or otherwise control all of the rights to the content that you post; that the content is accurate; that use of the content you supply does not violate either the social media site or Beazer Homes’ Terms and Conditions.

By posting on any Beazer Homes site, you grant Beazer Homes a nonexclusive, royalty-free, perpetual, irrevocable, and fully sub-licensable right to use, reproduce, distribute, and display such content throughout the world in any media and display the name provided with the post.

DMCA Notification Process

If you believe that your work has been copied in a way that constitutes copyright infringement, please notify Beazer Homes in writing with the following information:

• A full description of the copyrighted work that you claim has been infringed upon;

• A detailed description of where the material that you claim is infringing is located on the site;

• Your address, telephone number, and e-mail address;

• A statement by you that you have a good-faith belief that the disputed use is not authorized by the copyright owner, its agent, or the law;

• A statement by you, made under penalty of perjury, that the above information in your notice is accurate and that you are the copyright owner or authorized to act on the copyright owner's behalf.

• An electronic signature of the person authorized to act on behalf of the owner of the copyright interest

The notice should include the follow in the RE line: Copyright Infringement Notice and should be sent to:

  Marketing
  1000 Abernathy Road, Suite 260
  Atlanta, GA 30328
  phone: 770.829.3700
  fax: 770.390.3048
  e-mail: customerservice@beazer.com

Please note that this procedure is exclusively for notifying Beazer Homes that your copyrighted material has been infringed.

15. Termination

Beazer Homes may terminate access to this Websites or cancel any service that Beazer Homes provides on the Websites, for any reason in its sole discretion, including without limitation, if User breaches these Terms in any way or engages in conduct that Beazer Homes deems inappropriate.

16. Miscellaneous

These Terms and the policies incorporated by reference herein constitutes the entire agreement between Beazer Homes and User regarding the subject matter hereof. Any previous agreement, whether oral or written, between Beazer Homes and User dealing with the subject matter hereof is superseded.

Upon User's breach of the Terms, Beazer Homes may pursue any legal or equitable remedy available, including but not limited to, direct, consequential, and punitive damages as well as injunctive relief. Beazer Homes' remedies are cumulative and not exclusive. Failure of Beazer Homes to exercise any remedy or enforce any portion of the Terms at any time shall not operate as a waiver of any remedy or of the right to enforce any portion of the Agreement at any time thereafter.

User agrees that, regardless of any statute or law to the contrary, any claim or action arising out of or regarding the Terms must be filed within one (1) year after such claim or cause of action arose or be forever barred.

17. Privacy

Beazer Homes respects your privacy and is committed to handling information about you in a safe and responsible manner. To see our Privacy Notice, which describes the types of information we collect from you, how we collect it, and how we use it, please visit our Privacy Notice page and our Financial Privacy Notice page. For residents of California, effective January 1, 2020, please refer to our California Privacy Policy for additional information concerning your rights regarding the personal information we collect, use, and disclose. If you have any questions concerning our privacy practices, you may contact us at 888-623-2937 or homeinfo@beazer.com.

Privacy Policy

Last Updated April 26, 2018

Your use of beazer.com, any mobile site and applications, and any of the features of the website (collectively, the “Website”) constitutes your agreement to be bound by these Terms and Conditions (“Terms”). If you do not wish to be bound by these Terms, you may not access or use this Website. “You”, “Your” and “User” refers to the individual accessing the Website.

Beazer Homes’ Privacy Commitment.  Beazer Homes respects the privacy of our customers and protection of your personal information is important to us. Beazer Homes believes in communicating clearly with our customers.

This Privacy Policy (“Policy”) describes our policies with respect to information that Beazer Homes collects through the website at www.beazer.com ("Website"). By visiting the Website you are acknowledging that you have read, accept, and agree to the terms of this Policy.

Privacy Policy Support.  If you have an inquiry or concern about our Policy, please contact us using the contact information below.

Changes in this Policy.  Beazer Homes may amend this Policy at any time, but we will communicate with you, as required by law, when any changes are made. Please visit our Website to obtain current information about our Policy. This Policy replaces all previous notices or statements with respect to this subject, and cannot be modified orally by any of our representatives, employees or officers.

1. Information Beazer Homes Collects

Beazer Homes and its Affiliates, as defined below, collect personal information for permissible business purposes to assist in meeting our customers’ needs. We do not require anyone to divulge any personally identifiable information to use the Website. Certain types of information available to you on the Website (for example, pricing information) may only be accessible after you provide us with requested personally identifiable information. Beazer Homes will not collect personal information about you through the Website unless the information is provided voluntarily by you.

The information we collect generally includes: (1) personal information and (2) tracking information collected as you navigate through the Website.

Personal Information.  We collect personal information about you for many reasons and at a variety of different times. The type of personal information we collect depends on the community you’re looking at or live in, or the services you’ve requested. Our computer servers automatically log your IP address, the pages you click on and how long you spend there, and the web page you came from and go to next; we also save the data you type in if you want us to send you brochures or applications.

The personally identifiable information we request from you may include your: (i) first, middle, and last name; (ii) home or office phone and fax numbers; (iii) home or office address; (iv) home or office e-mail address; and (v) any other information you provide to us via our contact form.

Beazer Homes also collects personal information for market research and product development so we can understand your needs as a home buyer. We may also collect personal information about you from third- parties or other sources, such as information we receive from a credit reporting agency, information about your payment history, or the status of a loan application.

MCOT Program.  If you choose to participate in the Mortgage Choices On-Line Tool (MCOT), you may be asked to provide information such as your monthly income and debt levels. Please visit our Financial Privacy Notice found at Financial Privacy Notice for the privacy terms governing the collection of financial information through MCOT, which are incorporated herein by reference. Our MCOT privacy policy differs in several important respects from this Policy.

Information Collected Through Technology.  Primarily to tailor the Website to your needs, Beazer Homes collects information using technology, such as IP addresses and cookies. For example, your IP address provides Beazer Homes with non-personally identifiable information about how you entered the Internet, namely through your Internet service provider, your company, or some other source, and can permit Beazer Homes to identify the frequency with which you visit the Website. Standard features in Internet browser software such as "cookies" allow Websites to track certain user activities by assigning each of our visitors a unique number that resides on your computer. Beazer Homes uses cookies to make the Website more interesting and useful, including, in the following ways: (a) to personalize our services, such as remembering your information so that you will not have to re-enter it during your visit or the next time you visit the Website; (b) provide customized third party advertisements, content, and information; (c) monitor and analyze the effectiveness of the Website and third party marketing activities; (d) monitor aggregate site usage metrics such as total number of visitors and pages viewed; and (e) track your entries, submissions, and status in any promotions or other activities.

Beazer Homes cookies are limited to our Websites only. In addition to Beazer Homes cookies, various third parties may also place cookies on your computer's hard drive when visiting this website. While Beazer Homes does not track its customers across other websites, we do use advertising companies to serve ads after you visit our Website while you are visiting other websites. These companies may collect information about your visits to our Website and other websites and/or apps in order to provide advertisements about goods and services of interest to you. Beazer Homes is not responsible for the technological capabilities or practices employed by third parties in connection with third party cookies.

If you would prefer not to have the benefits of cookies, your internet browser or other third party software on your workstation can be adjusted to treat cookies in different ways. Depending upon the type of browser you are using, you may be able to configure your browser so that: (i) you are prompted to accept or reject cookies on an individual basis; or (ii) you may be able to prevent your browser from accepting any cookies at all. You should refer to the supplier or manufacturer of your web browser for specific details about cookie security. However, you should also understand that rejecting cookies might affect your ability to perform certain transactions on our Website and our ability to recognize your browser from one visit to the next.

Beazer Homes does not respond to Do Not Track (“DNT”) signals. Some third party sites, including third-party advertising companies that Beazer Homes has a relationship with, however, do keep track of your browsing activities when they serve you content, which enables them to tailor what they present to you.

For more information about your choices with regard to interest based advertising, you may wish to visit the Digital Advertising Alliance’s Consumer information page: http://www.aboutads.info/consumers/

Information Is Not Collected Online from Children Under 13.  Beazer Homes does not knowingly collect any personally identifiable information online from children under the age of 13. If you are under the age of thirteen (13), we ask that you do not use the Website. Beazer Homes does not seek to obtain, nor does it wish to receive personally identifiable information directly from minors; however, we cannot always determine the age of persons who access and use our Websites. If we do learn that personally identifiable information has been collected on the Website from a minor and without verifiable parental consent, then we will take the appropriate steps to delete this information. If you are a parent or guardian and discover that your minor child has obtained an account on the Website or has otherwise provided personally identifiable information, you may alert us at 888-623-2937 or homeinfo@beazer.com, and request that we delete that child’s personally identifiable information from the Website.

2. How Beazer Homes Uses That Information

Beazer Homes uses your personally identifiable information for the purposes for which it was submitted. For example, we collect this personal information so we can provide you with the services you want, make it possible for you to build, buy and insure your home and help you settle into and enjoy your new home and your community.

Beazer Homes may also contact you with information on promotional offers or incentives based on information you have provided. However, you may at any time "opt-out" by following the opt-out procedures below.

We may also use your personal information as required by law, in response to governmental orders or requests, to enforce the Terms and Conditions applicable to the Website, and as we deem reasonably necessary to investigate, prevent or take other appropriate measures in connection with fraudulent or illegal activities.

Beazer Homes may use information about use of the Website and aggregated information about you and other visitors to our Website in order to improve our Website and develop content and services that may be of interest to you and for its other business purposes.

3. Security Measures Taken to Protect Personally Identifiable Information

Beazer Homes uses firewalls, vulnerability scans, and secure network encryption technology to protect personally identifiable information. Beazer Homes also employs internal physical and technologic security measures to detect and block unauthorized intrusions to its computer systems. However, while we employ reasonable security measures to protect your personal information, please be aware that no method of electronic transmission is completely infallible, and we cannot guarantee its absolute safety.

4. Information Sharing

Sharing of personal information between Affiliates.  Beazer Homes is made up of a number of companies (“Affiliates”). Beazer Homes may share with and between its Affiliates personal information you provide to Beazer Homes or any of its Affiliates.

Non-Affiliates/Associates/Joint Marketing.  We also share personal information with our “Associates” - third parties that we have partnered with to share in the development or management of a community. Our Associates are third parties that are not affiliated with us and who perform services or functions on behalf of Beazer Homes or its Affiliates (such as accountants, attorneys, management companies, credit bureaus and banks). They are required to hold the personal information we provide to them in confidence, and use the personal information only to provide the services we’ve hired them to perform for us or for you. We may provide personal information about you to trusted companies pursuant to a written agreement with them when we jointly market our services to you. An example of this would be if a company wanted to offer insurance services in your community. The written agreement requires that they use your personal information only for the purposes of the joint marketing and that they not share it with others.

We do not sell any customer lists that contain your personal information.

Marketing.  We also share personal information with third parties that we have partnered with to market Beazer Homes. They are not affiliated with us and perform services or functions on behalf of Beazer Homes. They are required to hold the personal information we provide to them in confidence, and use the personal information only to provide the services we’ve hired them to perform for us pursuant to a written agreement. An example of this would be to perform a marketing match back to gauge success of a direct mail marketing campaign.

Other Circumstances.  We may disclose your personal information as you consent or direct. We may disclose your personal information to third parties as required by law. For example, we may disclose your personal information in connection with a subpoena or other legal process, in an audit, or when we record your mortgage or deed in public records. We reserve the right to report to law enforcement agencies any activities that we, in good faith, believe to be unlawful, or in the interest of national security, law enforcement activities, or other issues of health and safety as reasonably necessary or appropriate under the circumstances. We may share information to prevent illegal uses of the Website, or defend ourselves against third-party claims. We may also share information with companies assisting in fraud protection or investigation. We do not provide information to these agencies or companies for marketing or commercial purposes.

We may also transfer user or customer information, including personally identifiable information, in connection with a corporate transaction, such as a divestiture, merger, consolidation, or asset sale.

5. Updating Contact Information and Opt-Out Choices

We give customers control over their personal information.

We provide you with access to your personal information in various ways, including statements and community mailings, and want you to make sure that the personal information we have about you is accurate and current. Beazer Homes enables users of its Website to update contact information and to opt out of the collection of personally identifiable information or particular communications or services. You may do so by going to this opt-out link, or by contacting us at 888-623-2937 or homeinfo@beazer.com. Due to production, mailing, and system timelines, it may take some time to process your request. In addition, we may still use your information to communicate with you for other purposes, such as for customer service.

6. Questions or Comments

If you have any questions or comments about this Policy, please contact us at: 888-623-2937 or homeinfo@beazer.com.

7. Miscellaneous

Terms and Conditions.  This Policy is subject to, a part of, and incorporated into the Terms and Conditions which can be found at Beazer Homes Terms and Conditions.

Changes and Updates to this Policy.  Please revisit this page periodically to stay aware of any changes to this Policy, which may be revised periodically at our sole discretion. If we modify this Policy, we will make it available through the Website, and indicate the date of the latest revision. In the event that the modifications materially alter your rights or obligations hereunder, we will make reasonable efforts to notify you of the change. For example, we may send a message to your e-mail address, if we have one on file, or generate a pop-up or similar notification when you sign-in to the Website for the first time after such material changes are made. Our amended Policy will automatically take effect 30 days after it is made available through the Website, except that (i) we generally only use your personally identifiable information in the manner described in the Policy in effect when we received that information and (ii) if you do not agree with any changes to the Policy, you may terminate your account. Your continued use of the Website after the revised Policy has become effective indicates that you have read, understood and agreed to the current version of the Policy.

International Users.  This Website is operated, in whole or in part, from the United States. By using this Website, regardless of where you live in the world, you consent to have your personal data transferred to and processed in the United States, and allow Beazer Homes to use and collect your personal information in accordance with this Policy.

Third Party Links.  The Website may also contain links to other third party websites that are not under our control. These websites may have their own policies or no policies at all, regarding privacy. You should seek and review these policies before providing information to these websites. Beazer Homes has no responsibility for linked websites and provides these links solely for the convenience and information of our visitors. Beazer Homes also maintains a strict "no-spam" policy and fully complies with CAN-SPAM Act regulations.

If you end your customer relationship with us, this Policy will apply to personal information we collected while this Policy was in effect. This Policy does not apply to personal information relating to partnerships, trusts or corporations.

1000 Abernathy Road
Suite 260
Atlanta, GA 30328

 

Effective Date

This Policy is effective with respect to all data that we have collected since the date we commenced data collection, April 26, 2018.