Beazer Homes Reports Strong Fourth Quarter and Full Fiscal 2022 Results

ATLANTA--()--Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2022.

“We generated very strong fourth quarter and full year financial results,” said Allan P. Merrill, the company’s Chairman and Chief Executive Officer. “Increases in both home prices and margins generated a significant improvement in profitability, with full year Adjusted EBITDA reaching $370 million and earnings per share above $7.00. This led to a meaningful increase in book value – which now exceeds $30.00 per share – and allowed us to reach our long-standing deleveraging goal.”

Commenting on current market conditions, Mr. Merrill said, “The environment for new home sales became significantly more challenging over the course of fiscal 2022, as higher mortgage rates worsened an already strained affordability equation for most buyers. In response, we have increased incentives and reduced base prices in most of our communities. In the quarters ahead we will continue to adjust the included features, size, and pricing of our homes to compete for sales. At the same time, we expect to benefit from lower construction costs and shorter cycle times, as lower new home construction activity relieves some of the commodity, building product and labor constraints that have contributed to a significant increase in the cost of new homes.”

Looking further out, Mr. Merrill concluded, “We remain confident in the multi-year growth of our business and the new home industry. The gap between the structural demand for homes and the likely supply of homes – which has given rise to a multi-million home deficit over the past decade – remains in place. With a seasoned operating team, an ample supply of lots and a more efficient and less leveraged balance sheet, we remain confident that we will be able to create durable value for our stakeholders in the years ahead.”

Beazer Homes Fiscal 2022 Highlights and Comparison to Fiscal 2021

  • Net income from continuing operations of $220.7 million, or $7.17 per diluted share, compared to net income from continuing operations of $122.2 million, or $4.01 per diluted share, in fiscal 2021
  • Adjusted EBITDA of $370.1 million, up 40.9%
  • Homebuilding revenue of $2.3 billion, up 8.2% on a 20.3% increase in average selling price to $484.1 thousand, partially offset by a 10.0% decrease in home closings to 4,756
  • Homebuilding gross margin was 23.1%, up 420 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 26.3%, up 330 basis points
  • SG&A as a percentage of total revenue was 10.9%, a decrease of 50 basis points
  • Net new orders of 4,061, down 27.0% on a 22.7% decrease in sales/community/month to 2.8 and a 5.6% decrease in average community count to 120
  • Land acquisition and land development spending was $573.6 million, down 3.7% from $595.5 million
  • Controlled lots of 25,170, up 14.5% from 21,987
  • Acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder in which the Company has held a one-third ownership stake for the past 16 years
  • Retired a total of $74.4 million of debt, achieving the Company's goal of reducing debt below $1.0 billion
  • Repurchased $8.2 million of shares through open market transactions

Beazer Homes Fiscal Fourth Quarter 2022 Highlights and Comparison to Fiscal Fourth Quarter 2021

  • Net income from continuing operations of $86.8 million, or $2.82 per diluted share, compared to net income from continuing operations of $48.4 million, or $1.57 per diluted share, in fiscal fourth quarter 2021
  • Adjusted EBITDA of $143.3 million, up 88.4%
  • Homebuilding revenue of $825.4 million, up 40.1% on a 14.9% increase in home closings to 1,616 and a 22.0% increase in average selling price to $510.7 thousand
  • Homebuilding gross margin was 22.8%, up 330 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 25.9%, up 270 basis points
  • SG&A as a percentage of total revenue was 8.9%, down 210 basis points
  • Net new orders of 704, down 34.1% on a 36.3% decrease in sales/community/month to 1.9, partially offset by a 3.4% increase in average community count to 123
  • Retired a total of $66.6 million of debt
  • Repurchased $5.6 million of shares through open market transactions
  • Unrestricted cash at quarter end was $214.6 million; total liquidity was $459.1 million

The following provides additional details on the Company’s performance during the fiscal fourth quarter 2022:

Profitability. Net income from continuing operations was $86.8 million, generating diluted earnings per share of $2.82. This included the impact of tax credits of $3.1 million, or $0.10 per share, a $2.0 million inventory impairment and abandonment charge and a $0.4 million gain on extinguishment of debt. Fourth quarter adjusted EBITDA of $143.3 million was up $67.3 million, or 88.4%, year-over-year. The increase in profitability was primarily driven by higher homebuilding gross margin.

Orders. Net new orders for the fourth quarter decreased to 704, down 34.1% from the prior year period. The decrease in net new orders was driven by a 36.3% decrease in sales pace to 1.9 orders per community per month, down from 3.0 in the previous year period, partially offset by a 3.4% increase in average community count to 123. The cancellation rate for the quarter was 32.8%, up from 11.7% in the previous year, reflecting the weakening in housing demand as a result of the sharp increase in mortgage rates.

Backlog. The dollar value of homes in backlog as of September 30, 2022 was $1.1 billion, representing 2,091 homes, compared to $1.3 billion, representing 2,786 homes, at the same time last year. The average selling price of homes in backlog was $547.5 thousand, up 18.8% year-over-year.

Homebuilding Revenue. Fourth quarter homebuilding revenue was $825.4 million, up 40.1% year-over-year. The increase in homebuilding revenue was driven by a 14.9% increase in home closings to 1,616 homes and a 22.0% increase in average selling price to $510.7 thousand.

Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments, and amortized interest) was 25.9% for the fourth quarter, up 270 basis points year-over-year, driven primarily by pricing increases and lower sales incentives.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 8.9% for the quarter, down 210 basis points year-over-year primarily due to increases in closings and revenue.

Land Position. Controlled lots increased 14.5% to 25,170, compared to 21,987 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots were 24,397, up 13.9% year-over-year. Through the expansion of lot option agreements, 54.6% of total active lots, or 13,312 lots, were under contract compared to 46.6% of total active lots, or 9,992 lots, as of September 30, 2021.

Debt and Share Repurchases. During the quarter, the Company reduced debt by $66.6 million, which consisted of a $50.0 million repayment of its Senior Unsecured Term Loan and $16.6 million of repurchases of its 6.750% unsecured Senior Notes due March 2025 at an average price of $97.13 per $100 principal amount. In addition, the Company repurchased $5.6 million of shares through open market transactions during the quarter.

Liquidity. At the close of the fourth quarter, the Company had $459.1 million of available liquidity, including $214.6 million of unrestricted cash and $244.5 million of remaining capacity under the secured revolving credit facility.

New Senior Unsecured Revolving Credit Facility. On October 13, 2022, the Company entered into a senior unsecured revolving credit facility with committed borrowing capacity of $265.0 million, which replaced our existing $250.0 million secured revolving credit facility.

Commitment to ESG Initiatives

The Company is pleased to have received the ENERGY STAR Partner of the Year - Sustained Excellence Award for the seventh consecutive year. Beazer continues to make improvements in energy efficiency in support of its industry-first pledge that, by the end of 2025, every home the Company builds will be Net Zero Energy Ready with a gross HERS® index score of 45 or less. Beazer's Net Zero Energy Ready homes will meet the requirements of both the Environmental Protection Agency’s ENERGY STAR program and the U.S. Department of Energy’s Zero Energy Ready Home program. For fiscal 2022, the average new Beazer home has a gross HERS® index score of 54.

During fiscal 2022, Charity Title Agency made $1.5 million of charitable contributions to Beazer Charity Foundation, the Company's philanthropic arm. Beazer Charity Foundation is a nonprofit entity that provides donations to unrelated national and local nonprofits. Partnering with charitable organizations at national and local levels aligns the Foundation's financial contributions with opportunities for our employees to have a positive impact on the communities we serve.

In April 2022, Beazer Homes was ranked first among construction companies in Newsweek's inaugural list of America's Most Trusted Companies 2022, which were identified based on an independent survey of approximately 50,000 U.S. residents who rated companies they knew from the perspective of customers, investors and employees. This award demonstrated recognition for our efforts to create and sustain a strong reputation among employees, shareholders, customers and other partners.

Summary results for the fiscal year ended September 30, 2022 and 2021 are as follows:

 

Fiscal Year Ended September 30,

 

2022

 

2021

 

Change*

New home orders, net of cancellations

 

4,061

 

 

 

5,564

 

 

(27.0

)%

Orders per community per month

 

2.8

 

 

 

3.7

 

 

(22.7

)%

Average active community count

 

120

 

 

 

127

 

 

(5.6

)%

Cancellation rates

 

17.6

%

 

 

11.1

%

 

650 bps

 

 

 

 

 

 

Total home closings

 

4,756

 

 

 

5,287

 

 

(10.0

)%

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

$

484.1

 

 

$

402.4

 

 

20.3

%

Homebuilding revenue (in millions)

$

2,302.5

 

 

$

2,127.7

 

 

8.2

%

Homebuilding gross margin

 

23.1

%

 

 

18.9

%

 

420 bps

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

 

23.2

%

 

 

18.9

%

 

430 bps

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

 

26.3

%

 

 

23.0

%

 

330 bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

274.0

 

 

$

143.7

 

 

90.6

%

Expense from income taxes (in millions)

$

53.3

 

 

$

21.5

 

 

147.2

%

Income from continuing operations (in millions)

$

220.7

 

 

$

122.2

 

 

80.6

%

Basic income per share from continuing operations

$

7.25

 

 

$

4.08

 

 

77.7

%

Diluted income per share from continuing operations

$

7.17

 

 

$

4.01

 

 

78.8

%

 

 

 

 

 

 

Net income (in millions)

$

220.7

 

 

$

122.0

 

 

80.9

%

 

 

 

 

 

 

Land acquisition and land development spending (in millions)

$

573.6

 

 

$

595.5

 

 

(3.7

)%

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

370.1

 

 

$

262.7

 

 

40.9

%

* Change is calculated using unrounded numbers.

Summary results for the three months ended September 30, 2022 and 2021 are as follows:

 

Three Months Ended September 30,

 

2022

 

2021

 

Change*

New home orders, net of cancellations

 

704

 

 

 

1,069

 

 

(34.1

)%

Orders per community per month

 

1.9

 

 

 

3.0

 

 

(36.3

)%

Average active community count

 

123

 

 

 

119

 

 

3.4

%

Actual community count at quarter-end

 

123

 

 

 

117

 

 

5.1

%

Cancellation rates

 

32.8

%

 

 

11.7

%

 

2110 bps

 

 

 

 

 

 

Total home closings

 

1,616

 

 

 

1,407

 

 

14.9

%

ASP from closings (in thousands)

$

510.7

 

 

$

418.7

 

 

22.0

%

Homebuilding revenue (in millions)

$

825.4

 

 

$

589.1

 

 

40.1

%

Homebuilding gross margin

 

22.8

%

 

 

19.5

%

 

330 bps

Homebuilding gross margin, excluding I&A

 

22.8

%

 

 

19.5

%

 

330 bps

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

 

25.9

%

 

 

23.2

%

 

270 bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

110.4

 

 

$

47.3

 

 

133.6

%

Expense (benefit) from income taxes (in millions)

$

23.6

 

 

$

(1.1

)

 

(2,269.8

)%

Income from continuing operations (in millions)

$

86.8

 

 

$

48.4

 

 

79.6

%

Basic income per share from continuing operations

$

2.87

 

 

$

1.61

 

 

78.3

%

Diluted income per share from continuing operations

$

2.82

 

 

$

1.57

 

 

79.6

%

 

 

 

 

 

 

Net income (in millions)

$

86.8

 

 

$

48.4

 

 

79.5

%

 

 

 

 

 

 

Land acquisition and land development spending (in millions)

$

150.8

 

 

$

245.5

 

 

(38.6

)%

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

143.3

 

 

$

76.1

 

 

88.4

%

* Change is calculated using unrounded numbers.

 

As of September 30,

 

2022

 

2021

 

Change

Backlog units

 

2,091

 

 

2,786

 

(24.9

)%

Dollar value of backlog (in millions)

$

1,144.9

 

 

$

1,284.0

 

 

(10.8

)%

ASP in backlog (in thousands)

$

547.5

 

 

$

460.9

 

 

18.8

%

Land position and lots controlled

 

25,170

 

 

 

21,987

 

 

14.5

%

Conference Call

The Company will hold a conference call on November 10, 2022 at 5:00 p.m. ET to discuss these results. The public may listen to the conference call and view the Company’s slide presentation on the “Investor Relations” page of the Company’s website at 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 passcode “8571348.” A replay of the conference call will be available, until 10:00 PM ET on November 18, 2022 at 866-566-0411 (for international callers, dial 203-369-3041) 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, saving 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 cyclical nature of the homebuilding industry and further deterioration in homebuilding industry conditions; (ii) continued increases in mortgage interest rates and reduced availability of mortgage financing due to, among other factors, recent and likely continued actions by the Federal Reserve to address sharp increases in inflation; (iii) other economic changes nationally and in local markets, including changes in consumer confidence, wage levels, declines in employment levels, and an increase in the number of foreclosures, each of which is outside our control and affects the affordability of, and demand for, the homes we sell; (iv) continued supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances; (v) continued shortages of or increased costs for labor used in housing production, and the level of quality and craftsmanship provided by such labor; (vi) inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled; (vii) potential negative impacts of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and 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, including lumber, 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 agreement abandonments; (viii) factors affecting margins, such as increased sales incentives and mortgage rate buy down programs; decreased revenues; 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; not being able to pass on cost increases through pricing increases; (ix) 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; (x) 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, 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; (xi) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (xii) changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes; (xiii) increased competition or delays in reacting to changing consumer preferences in home design; (xiv) 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; (xv) the potential recoverability of our deferred tax assets; (xvi) increases in corporate tax rates; (xvii) 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; (xviii) the results of litigation or government proceedings and fulfillment of any related obligations; (xix) the impact of construction defect and home warranty claims; (xx) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xxi) the impact of information technology failures, cybersecurity issues or data security breaches; (xxii) the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water; (xxiii) the success of our ESG initiatives, including our ability to meet our goal that every home we build will be Net Zero Energy Ready by 2025 as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Net Zero future; and (xxiv) terrorist acts, protests and civil unrest, political uncertainty, acts of war or other factors over which the Company has no control.

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.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Three Months Ended

 

Fiscal Year Ended

 

September 30,

 

September 30,

in thousands (except per share data)

2022

 

2021

 

2022

 

2021

Total revenue

$

827,667

 

 

$

590,943

 

 

$

2,316,988

 

 

$

2,140,303

 

Home construction and land sales expenses

 

637,747

 

 

 

475,273

 

 

 

1,776,518

 

 

 

1,735,195

 

Inventory impairments and abandonments

 

2,028

 

 

 

157

 

 

 

2,963

 

 

 

853

 

Gross profit

 

187,892

 

 

 

115,513

 

 

 

537,507

 

 

 

404,255

 

Commissions

 

25,668

 

 

 

21,779

 

 

 

74,336

 

 

 

80,125

 

General and administrative expenses

 

48,263

 

 

 

43,382

 

 

 

177,320

 

 

 

163,285

 

Depreciation and amortization

 

4,259

 

 

 

3,482

 

 

 

13,360

 

 

 

13,976

 

Operating income

 

109,702

 

 

 

46,870

 

 

 

272,491

 

 

 

146,869

 

Equity in income of unconsolidated entities

 

67

 

 

 

170

 

 

 

521

 

 

 

594

 

Gain (loss) on extinguishment of debt, net

 

387

 

 

 

(412

)

 

 

309

 

 

 

(2,025

)

Other income (expense), net

 

263

 

 

 

644

 

 

 

668

 

 

 

(1,712

)

Income from continuing operations before income taxes

 

110,419

 

 

 

47,272

 

 

 

273,989

 

 

 

143,726

 

Expense (benefit) from income taxes

 

23,586

 

 

 

(1,087

)

 

 

53,271

 

 

 

21,546

 

Income from continuing operations

 

86,833

 

 

 

48,359

 

 

 

220,718

 

 

 

122,180

 

(Loss) income from discontinued operations, net of tax

 

(10

)

 

 

2

 

 

 

(14

)

 

 

(159

)

Net income

$

86,823

 

 

$

48,361

 

 

$

220,704

 

 

$

122,021

 

Weighted-average number of shares:

 

 

 

 

 

 

 

Basic

 

30,291

 

 

 

30,069

 

 

 

30,432

 

 

 

29,954

 

Diluted

 

30,770

 

 

 

30,867

 

 

 

30,796

 

 

 

30,437

 

Basic income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

2.87

 

 

$

1.61

 

 

$

7.25

 

 

$

4.08

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

(0.01

)

Total

$

2.87

 

 

$

1.61

 

 

$

7.25

 

 

$

4.07

 

Diluted income per share:

 

 

 

 

 

 

 

Continuing operations

$

2.82

 

 

$

1.57

 

 

$

7.17

 

 

$

4.01

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Total

$

2.82

 

 

$

1.57

 

 

$

7.17

 

 

$

4.01

 

 

Three Months Ended

 

Year Ended

 

September 30,

 

September 30,

Capitalized Interest in Inventory

2022

 

2021

 

2022

 

2021

Capitalized interest in inventory, beginning of period

$

115,735

 

 

$

109,943

 

 

$

106,985

 

 

$

119,659

 

Interest incurred

 

18,869

 

 

 

18,880

 

 

 

74,161

 

 

 

77,397

 

Capitalized interest impaired

 

(439

)

 

 

 

 

 

(439

)

 

 

 

Interest expense not qualified for capitalization and included as other expense

 

 

 

 

 

 

 

 

 

 

(2,781

)

Capitalized interest amortized to home construction and land sales expenses

 

(25,077

)

 

 

(21,838

)

 

 

(71,619

)

 

 

(87,290

)

Capitalized interest in inventory, end of period

$

109,088

 

 

$

106,985

 

 

$

109,088

 

 

$

106,985

 

BEAZER HOMES USA, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

in thousands (except share and per share data)

September 30, 2022

 

September 30, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

214,594

 

$

246,715

 

Restricted cash

 

37,234

 

 

 

27,428

 

Accounts receivable (net of allowance of $284 and $290, respectively)

 

35,890

 

 

 

25,685

 

Income tax receivable

 

9,606

 

 

 

9,929

 

Owned inventory

 

1,737,865

 

 

 

1,501,602

 

Investments in unconsolidated entities

 

964

 

 

 

4,464

 

Deferred tax assets, net

 

156,358

 

 

 

204,766

 

Property and equipment, net

 

24,566

 

 

 

22,885

 

Operating lease right-of-use assets

 

9,795

 

 

 

12,344

 

Goodwill

 

11,376

 

 

 

11,376

 

Other assets

 

13,715

 

 

 

11,616

 

Total assets

$

2,251,963

 

 

$

2,078,810

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Trade accounts payable

$

143,641

 

 

$

133,391

 

Operating lease liabilities

 

11,208

 

 

 

14,154

 

Other liabilities

 

174,388

 

 

 

152,351

 

Total debt (net of debt issuance costs of $7,280 and $8,983, respectively)

 

983,440

 

 

 

1,054,030

 

Total liabilities

 

1,312,677

 

 

 

1,353,926

 

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, 30,880,138 issued and outstanding and 31,294,198 issued and outstanding, respectively)

 

31

 

 

 

31

 

Paid-in capital

 

859,856

 

 

 

866,158

 

Retained earnings (accumulated deficit)

 

79,399

 

 

 

(141,305

)

Total stockholders’ equity

 

939,286

 

 

 

724,884

 

Total liabilities and stockholders’ equity

$

2,251,963

 

 

$

2,078,810

 

 

 

 

 

Inventory Breakdown

 

 

 

Homes under construction

$

785,742

 

 

$

648,283

 

Land under development

 

731,190

 

 

 

648,404

 

Land held for future development

 

19,879

 

 

 

19,879

 

Land held for sale

 

15,674

 

 

 

9,179

 

Capitalized interest

 

109,088

 

 

 

106,985

 

Model homes

 

76,292

 

 

 

68,872

 

Total owned inventory

$

1,737,865

 

 

$

1,501,602

 

BEAZER HOMES USA, INC.

CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

 

 

 

 

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

SELECTED OPERATING DATA

2022

 

2021

 

2022

 

2021

Closings:

 

 

 

 

 

 

 

West region

899

 

781

 

 

2,833

 

 

2,945

East region

371

 

 

311

 

 

 

1,080

 

 

 

1,185

 

Southeast region

346

 

 

315

 

 

 

843

 

 

 

1,157

 

Total closings

1,616

 

 

1,407

 

 

 

4,756

 

 

 

5,287

 

 

 

 

 

 

 

 

 

New orders, net of cancellations:

 

 

 

 

 

 

 

West region

374

 

 

620

 

 

 

2,437

 

 

 

3,233

 

East region

167

 

 

232

 

 

 

879

 

 

 

1,172

 

Southeast region

163

 

 

217

 

 

 

745

 

 

 

1,159

 

Total new orders, net

704

 

 

1,069

 

 

 

4,061

 

 

 

5,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended September 30,

Backlog units at end of period:

 

 

 

 

2022

 

2021

West region

 

 

 

 

 

1,257

 

 

 

1,653

 

East region

 

 

 

 

 

410

 

 

 

611

 

Southeast region

 

 

 

 

 

424

 

 

 

522

 

Total backlog units

 

 

 

 

 

2,091

 

 

 

2,786

 

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

 

 

 

 

$

1,144.9

 

 

$

1,284.0

 

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

SUPPLEMENTAL FINANCIAL DATA

2022

 

2021

 

2022

 

2021

Homebuilding revenue:

 

 

 

 

 

 

 

West region

$

444,317

 

 

$

304,591

 

$

1,327,770

 

$

1,110,208

East region

 

200,650

 

 

 

155,639

 

 

 

555,598

 

 

 

565,989

 

Southeast region

 

180,387

 

 

 

128,894

 

 

 

419,152

 

 

 

451,503

 

Total homebuilding revenue

$

825,354

 

 

$

589,124

 

 

$

2,302,520

 

 

$

2,127,700

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Homebuilding

$

825,354

 

 

$

589,124

 

 

$

2,302,520

 

 

$

2,127,700

 

Land sales and other

 

2,313

 

 

 

1,819

 

 

 

14,468

 

 

 

12,603

 

Total revenues

$

827,667

 

 

$

590,943

 

 

$

2,316,988

 

 

$

2,140,303

 

 

 

 

 

 

 

 

 

Gross profit (loss):

 

 

 

 

 

 

 

Homebuilding

$

187,894

 

 

$

114,717

 

 

$

532,149

 

 

$

401,720

 

Land sales and other

 

(2

)

 

 

796

 

 

 

5,358

 

 

 

2,535

 

Total gross profit

$

187,892

 

 

$

115,513

 

 

$

537,507

 

 

$

404,255

 

Reconciliation of homebuilding gross profit and the related gross margin excluding 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. These measures should not be considered alternatives to homebuilding gross profit and gross margin determined in accordance with GAAP as an indicator of operating performance.

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

2022

 

2021

 

2022

 

2021

Homebuilding gross profit/margin

$

187,894

22.8

%

 

$

114,717

19.5

%

 

$

532,149

23.1

%

 

$

401,720

18.9

%

Inventory impairments and abandonments (I&A)

 

600

 

 

 

 

157

 

 

 

 

1,095

 

 

 

 

853

 

 

Homebuilding gross profit/margin excluding I&A

 

188,494

 

22.8

%

 

 

114,874

 

19.5

%

 

 

533,244

 

23.2

%

 

 

402,573

 

18.9

%

Interest amortized to cost of sales

 

25,077

 

 

 

 

21,838

 

 

 

 

71,619

 

 

 

 

87,037

 

 

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

$

213,571

 

25.9

%

 

$

136,712

 

23.2

%

 

$

604,863

 

26.3

%

 

$

489,610

 

23.0

%

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

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

2022

 

2021

 

2022

 

2021

Net income

$

86,823

 

 

$

48,361

 

 

$

220,704

 

 

$

122,021

 

Expense (benefit) from income taxes

 

23,584

 

 

 

(1,086

)

 

 

53,267

 

 

 

21,501

 

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

 

25,516

 

 

 

21,838

 

 

 

72,058

 

 

 

87,290

 

Interest expense not qualified for capitalization

 

 

 

 

 

 

 

 

 

 

2,781

 

EBIT

 

135,923

 

 

 

69,113

 

 

 

346,029

 

 

 

233,593

 

Depreciation and amortization

 

4,259

 

 

 

3,482

 

 

 

13,360

 

 

 

13,976

 

EBITDA

 

140,182

 

 

 

72,595

 

 

 

359,389

 

 

 

247,569

 

Stock-based compensation expense

 

1,963

 

 

 

2,913

 

 

 

8,478

 

 

 

12,167

 

(Gain) loss on extinguishment of debt

 

(387

)

 

 

412

 

 

 

(309

)

 

 

2,025

 

Inventory impairments and abandonments (a)

 

1,589

 

 

 

157

 

 

 

2,524

 

 

 

853

 

Restructuring and severance expenses

 

 

 

 

 

 

 

 

 

 

(10

)

Litigation settlement in discontinued operations

 

 

 

 

 

 

 

 

 

 

120

 

Adjusted EBITDA

$

143,347

 

 

$

76,077

 

 

$

370,082

 

 

$

262,724

 

(a)

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."

 

Contacts

David I. Goldberg
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com

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Contacts

David I. Goldberg
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com