BZH Beazer Homes USA Inc New

Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2024.

"We generated strong fourth quarter and full year results, despite a challenging operating environment for much of the period," said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. "We ended the year with 162 active communities, up 20.9% year-over-year, which contributed to revenue growth for the quarter and the full year. Profitability during the fourth quarter amounted to $93.1 million of Adjusted EBITDA, $52.1 million of net income and $1.69 of earnings per diluted share. For the full year we generated $243.4 million of Adjusted EBITDA, $140.2 million of net income and $4.53 of earnings per diluted share."

Commenting on current market conditions, Mr. Merrill said, "Despite higher mortgage rates, our October sales grew more than 30% versus the prior year, as we benefited from our growing community count and an improvement in sales pace. For the full year fiscal 2025 we expect further expansion of our community count to lead to growth in revenue and double-digit return on capital employed."

Looking further out, Mr. Merrill concluded, "We remain highly confident in our ability to achieve our Multi-Year Goals with favorable long-term dynamics persisting in the new home industry. With our experienced operating team, growing lot position, healthy balance sheet, and industry-leading energy efficient homes, we are well-positioned to drive sustainable value for our shareholders in the years ahead."

Beazer Homes Fiscal 2024 Highlights and Comparison to Fiscal 2023

• Net income from continuing operations of $140.2 million, or $4.53 per diluted share, compared to net income from continuing operations of $158.7 million, or $5.16 per diluted share, in fiscal 2023
• Adjusted EBITDA of $243.4 million, down 10.5%
• Homebuilding revenue of $2.29 billion, up 4.3% on a 4.8% increase in home closings to 4,450, partially offset by a 0.5% decrease in average selling price (ASP) to $515.3 thousand
• Homebuilding gross margin was 18.0%, down 190 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 21.1%, down 200 basis points
• SG&A as a percentage of total revenue was 11.4%, down 10 basis points
• Net new orders of 4,221, up 9.2% on a 15.7% increase in average community count to 144, partially offset by a 5.6% decrease in orders per community per month to 2.4
• Land acquisition and land development spending was $776.5 million, up 35.5% from $573.1 million
• Refinanced $197.9 million of its 6.750% Senior Unsecured Notes due 2025 through the issuance of $250.0 million of 7.500% Senior Unsecured Notes due 2031
• Extended the maturity of its $300.0 million Senior Unsecured Revolving Credit Facility to March 2028
• Total debt to total capitalization ratio of 45.4% at fiscal year end compared to 47.0% a year ago. Net debt to net capitalization ratio of 40.0% at fiscal year end compared to 36.4% a year ago

Beazer Homes Fiscal Fourth Quarter 2024 Highlights and Comparison to Fiscal Fourth Quarter 2023

• Net income from continuing operations of $52.1 million, or $1.69 per diluted share, compared to net income from continuing operations of $55.8 million, or $1.80 per diluted share, in fiscal fourth quarter 2023
• Adjusted EBITDA of $93.1 million, up 3.5%
• Homebuilding revenue of $783.8 million, up 22.1% on a 21.3% increase in home closings to 1,496 and a 0.7% increase in ASP to $523.9 thousand
• Homebuilding gross margin was 17.2%, down 400 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 20.4%, down 390 basis points
• SG&A as a percentage of total revenue was 9.7%, down 140 basis points
• Net new orders of 1,029, up 2.6% on a 18.0% increase in average active community count to 153, partially offset by a 13.0% decrease in orders per community per month to 2.2
• Active community count at period-end of 162, up 20.9%
• Backlog dollar value of $797.2 million, down 10.1% on a 13.4% decrease in backlog units to 1,482, partially offset by a 3.8% increase in ASP of homes in backlog to $537.9 thousand
• Land acquisition and land development spending was $179.0 million, down 16.2% from $213.7 million
• Controlled lots of 28,538, up 9.0% from 26,189
• Unrestricted cash at quarter end was $203.9 million; total liquidity was $503.9 million

The following provides additional details on the Company’s performance during the fiscal fourth quarter 2024:

Profitability. Net income from continuing operations was $52.1 million, generating diluted earnings per share of $1.69. Fourth quarter Adjusted EBITDA of $93.1 million was up $3.2 million, or 3.5%, primarily due to higher revenue on higher closings, partially offset lower gross margin.

Orders. Net new orders for the fourth quarter increased to 1,029, up 2.6% from the prior year quarter, primarily driven by an 18.0% increase in average active community count to 153 from 130 a year ago, partially offset by a 13.0% decrease in sales pace to 2.2 orders per community per month, down from 2.6 in the previous year quarter. The cancellation rate for the quarter was 21.9%, up from 16.5% in the prior year quarter.

Backlog. The dollar value of homes in backlog as of September 30, 2024 was $797.2 million, representing 1,482 homes, compared to $886.4 million, representing 1,711 homes, at the same time last year. The average selling price of homes in backlog was $537.9 thousand, up 3.8% year-over-year.

Homebuilding Revenue. Fourth quarter homebuilding revenue was $783.8 million, up 22.1% year-over-year. The increase in homebuilding revenue was driven by a 21.3% increase in home closings to 1,496 homes and a 0.7% increase in ASP to $523.9 thousand. The increase in closings was primarily due to higher community count, higher volume of spec homes that sold and closed within the quarter as well as improved construction cycle times.

Homebuilding Gross Margin. Fourth quarter homebuilding gross margin was 18.0%, down 190 basis points year-over-year. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 20.4% for the fourth quarter, down 390 basis points year-over-year as a result of increased share of speculative home closings which generally have lower margins than "to be built" homes, changes in product and community mix, and an increase in closing cost incentives.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 9.7% for the quarter, down 140 basis points year-over-year primarily due to higher revenue on higher closings. The Company remains focused on overhead cost management while preparing for new community activations and future growth.

Land Position. For the current fiscal quarter, land acquisition and land development spending was $179.0 million, down 16.2% year-over-year. Controlled lots increased 9.0% to 28,538, compared to 26,189 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots were 27,904, up 9.1% year-over-year. As of September 30, 2024, the Company controlled 57.8% of its total active lots through option agreements compared to 56.7% as of September 30, 2023.

Liquidity. At the close of the fourth quarter, the Company had $503.9 million of available liquidity, including $203.9 million of unrestricted cash and $300.0 million of remaining capacity under the senior unsecured revolving credit facility, compared to total available liquidity of $610.6 million a year ago.

Total Debt to Total Capitalization Ratio. Total debt to total capitalization ratio was 45.4% at fiscal year end compared to 47.0% a year ago. Net debt to net capitalization ratio was 40.0% at fiscal year end, up 360 basis points from 36.4% a year ago due to land investment outpacing cash generation from closings. However, the Company remains on track to reduce its net debt to net capitalization ratio below 30% by the end of fiscal year 2026 with a significant reduction expected in fiscal 2025.

Commitment to ESG Initiatives

In October, Beazer Homes was honored with the Housing Innovation Grand Award for Most Certified Homes, recognizing the Company as the builder certifying the most Zero Energy Ready homes in the year. The Company remains dedicated to continually enhancing the energy efficiency of its homes in support of its industry-first pledge that, by the end of 2025, every new home the Company starts will be Zero Energy Ready, which means it will meet the requirements of the U.S. Department of Energy's (DOE) Zero Energy Ready Home program. During fiscal 2024, the Company accelerated its transition to Zero Energy Ready homes with 91% of its fiscal fourth quarter new home starts being built to Zero Energy Ready standards. Notably, Beazer Homes has now certified more Zero Energy Ready homes to the DOE's Single Family National Program requirements than any other home builder. For fiscal 2024, new Beazer homes had an average HERS® index score of 42, a seven point improvement from 49 for fiscal 2023.

Also in October and for the second year in a row, the Company was recognized as an Indoor AirPlus Leader of the Year by the EPA, meaning every Beazer home meets the Indoor AirPlus program criteria, featuring improved ventilation, low-emitting building materials, and moisture control measures. This annual award recognizes market-leading partners who design and promote safer, healthier, and more comfortable indoor environments by offering enhanced indoor air quality protections for new homebuyers.

In September, Beazer Homes was recognized by the U.S. Environmental Protection Agency (EPA) as a new WaterSense partner earning its first WaterSense Award for Excellence in New Builder Partnership. WaterSense, a voluntary partnership program, is both a label for water-efficient products and a resource for helping consumers save water. By the end of the fourth quarter, the Company had built WaterSense labeled homes in 4 divisions and is committed to further expansion to address the unique needs of each community while promoting sustainable living practices.

During fiscal 2024, Charity Title Agency made charitable contributions totaling $2.1 million 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 the local level aligns the Foundation's financial contributions with opportunities for Beazer's employees to have a positive impact on the communities the Company serves.

Summary results for the fiscal year ended September 30, 2024 and 2023 are as follows:

 

Fiscal Year Ended September 30,

 

2024

 

2023

 

Change*

New home orders, net of cancellations

 

4,221

 

 

 

3,866

 

 

9.2

%

Cancellation rates

 

17.7

%

 

 

20.3

%

 

(260) bps

Orders per community per month

 

2.4

 

 

 

2.6

 

 

(5.6

)%

Average active community count

 

144

 

 

 

125

 

 

15.7

%

Active community count at period-end

 

162

 

 

 

134

 

 

20.9

%

Land acquisition and land development spending (in millions)

$

776.5

 

 

$

573.1

 

 

35.5

%

 

 

 

 

 

 

Total home closings

 

4,450

 

 

 

4,246

 

 

4.8

%

ASP from closings (in thousands)

$

515.3

 

 

$

517.8

 

 

(0.5

)%

Homebuilding revenue (in millions)

$

2,293.0

 

 

$

2,198.4

 

 

4.3

%

Homebuilding gross margin

 

18.0

%

 

 

19.9

%

 

(190) bps

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

 

18.1

%

 

 

20.0

%

 

(190) bps

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

 

21.1

%

 

 

23.1

%

 

(200) bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

159.1

 

 

$

182.6

 

 

(12.9

)%

Expense from income taxes (in millions)

$

18.9

 

 

$

24.0

 

 

(21.1

)%

Income from continuing operations (in millions)

$

140.2

 

 

$

158.7

 

 

(11.7

)%

Basic income per share from continuing operations

$

4.59

 

 

$

5.23

 

 

(12.2

)%

Diluted income per share from continuing operations

$

4.53

 

 

$

5.16

 

 

(12.2

)%

 

 

 

 

 

 

Net income (in millions)

$

140.2

 

 

$

158.6

 

 

(11.6

)%

Adjusted EBITDA (in millions)

$

243.4

 

 

$

272.0

 

 

(10.5

)%

Total debt to total capitalization ratio

 

45.4

%

 

 

47.0

%

 

(160) bps

Net debt to net capitalization ratio

 

40.0

%

 

 

36.4

%

 

360 bps

* Change is calculated using unrounded numbers.

Summary results for the three months ended September 30, 2024 and 2023 are as follows:

 

Three Months Ended September 30,

 

2024

 

2023

 

Change*

New home orders, net of cancellations

 

1,029

 

 

 

1,003

 

 

2.6

%

Cancellation rates

 

21.9

%

 

 

16.5

%

 

540 bps

Orders per community per month

 

2.2

 

 

 

2.6

 

 

(13.0

)%

Average active community count

 

153

 

 

 

130

 

 

18.0

%

Land acquisition and land development spending (in millions)

$

179.0

 

 

$

213.7

 

 

(16.2

)%

 

 

 

 

 

 

Total home closings

 

1,496

 

 

 

1,233

 

 

21.3

%

ASP from closings (in thousands)

$

523.9

 

 

$

520.5

 

 

0.7

%

Homebuilding revenue (in millions)

$

783.8

 

 

$

641.8

 

 

22.1

%

Homebuilding gross margin

 

17.2

%

 

 

21.2

%

 

(400) bps

Homebuilding gross margin, excluding I&A

 

17.4

%

 

 

21.2

%

 

(380) bps

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

 

20.4

%

 

 

24.3

%

 

(390) bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

60.6

 

 

$

64.2

 

 

(5.6

)%

Expense from income taxes (in millions)

$

8.5

 

 

$

8.5

 

 

0.8

%

Income from continuing operations (in millions)

$

52.1

 

 

$

55.8

 

 

(6.6

)%

Basic income per share from continuing operations

$

1.72

 

 

$

1.83

 

 

(6.0

)%

Diluted income per share from continuing operations

$

1.69

 

 

$

1.80

 

 

(6.1

)%

 

 

 

 

 

 

Net income (in millions)

$

52.1

 

 

$

55.8

 

 

(6.6

)%

Adjusted EBITDA (in millions)

$

93.1

 

 

$

90.0

 

 

3.5

%

* Change is calculated using unrounded numbers.

 

As of September 30,

 

2024

 

 

2023

 

Change

Backlog units

 

1,482

 

 

1,711

 

(13.4

)%

Dollar value of backlog (in millions)

$

797.2

 

$

886.4

 

(10.1

)%

ASP in backlog (in thousands)

$

537.9

 

$

518.0

 

3.8

%

Land position and lots controlled

 

28,538

 

 

26,189

 

9.0

%

Conference Call

The Company will hold a conference call on November 13, 2024 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 630-395-0227). To be admitted to the call, enter the passcode “8571348.” A replay of the conference call will be available, until 11:59 PM ET on November 22, 2024 at 800-839-2348 (for international callers, dial 203-369-3033) 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:

• the cyclical nature of the homebuilding industry and deterioration in homebuilding industry conditions;
• economic changes nationally and in local markets, including increases in the number of foreclosures and wage levels, both of which are outside our control and may impact consumer confidence and affect the affordability of, and demand for, the homes we sell;
• elevated mortgage interest rates for prolonged periods, as well as further increases to, and reduced availability of, mortgage financing due to, among other factors, additional actions by the Federal Reserve to address inflation;
• financial institution disruptions, such as the lingering effects of bank failures that spiked in 2023;
• supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances;
• our ability to meet or achieve our sustainability related goals, aspirations, initiatives, and our public statements and disclosures regarding them;
• 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;
• factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive;
• 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 cycle times and production and overhead cost structures;
• not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases;
• the availability and cost of land and the risks associated with the future value of our inventory;
• our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, 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;
• market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital);
• changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes, including those resulting from regulatory guidance and interpretations issued with respect thereto, such as the IRS's guidance regarding heightened qualification requirements for federal credits for building energy-efficient homes;
• increased competition or delays in reacting to changing consumer preferences in home design;
• 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;
• shortages of or increased costs for labor used in housing production, including as a result of federal or state legislation, and the level of quality and craftsmanship provided by such labor;
• terrorist acts, protests and civil unrest, political uncertainty (including as a result of the 2024 election cycle), acts of war or other factors over which the Company has no control, such as the conflict between Russia and Ukraine, the conflict in Gaza, and other conflicts in the Middle East;
• potential negative impacts of public health emergencies and lingering impacts of past pandemics;
• the potential recoverability of our deferred tax assets;
• increases in corporate tax rates;
• 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;
• the results of litigation or government proceedings and fulfillment of any related obligations;
• the impact of construction defect and home warranty claims;
• the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred;
• the impact of information technology failures, cybersecurity issues or data security breaches, including cybersecurity incidents deploying evolving artificial intelligence tools and incidents impacting third-party service providers that we depend on to conduct our business;
• the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water and electricity (including availability of electrical equipment such as transformers and meters); and
• the success of our ESG initiatives, including our ability to meet our goal that by the end of 2025 every home we start will be Zero Energy Ready, 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 Zero Energy Ready future.

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)

2024

 

2023

 

2024

 

2023

Total revenue

$

806,157

 

 

$

645,405

 

 

$

2,330,197

 

 

$

2,206,785

 

Home construction and land sales expenses

 

662,954

 

 

 

508,093

 

 

 

1,903,907

 

 

 

1,763,449

 

Inventory impairments and abandonments

 

1,796

 

 

 

25

 

 

 

1,996

 

 

 

641

 

Gross profit

 

141,407

 

 

 

137,287

 

 

 

424,294

 

 

 

442,695

 

Commissions

 

27,292

 

 

 

21,567

 

 

 

80,056

 

 

 

73,450

 

General and administrative expenses

 

50,700

 

 

 

49,903

 

 

 

186,345

 

 

 

179,794

 

Depreciation and amortization

 

5,169

 

 

 

3,758

 

 

 

14,867

 

 

 

12,198

 

Operating income

 

58,246

 

 

 

62,059

 

 

 

143,026

 

 

 

177,253

 

Loss on extinguishment of debt, net

 

—

 

 

 

(13

)

 

 

(437

)

 

 

(546

)

Other income, net

 

2,360

 

 

 

2,180

 

 

 

16,496

 

 

 

5,939

 

Income from continuing operations before income taxes

 

60,606

 

 

 

64,226

 

 

 

159,085

 

 

 

182,646

 

Expense from income taxes

 

8,538

 

 

 

8,470

 

 

 

18,910

 

 

 

23,958

 

Income from continuing operations

 

52,068

 

 

 

55,756

 

 

 

140,175

 

 

 

158,688

 

Loss from discontinued operations, net of tax

 

(2

)

 

 

—

 

 

 

—

 

 

 

(77

)

Net income

$

52,066

 

 

$

55,756

 

 

$

140,175

 

 

$

158,611

 

Weighted-average number of shares:

 

 

 

 

 

 

 

Basic

 

30,316

 

 

 

30,405

 

 

 

30,548

 

 

 

30,353

 

Diluted

 

30,765

 

 

 

31,040

 

 

 

30,953

 

 

 

30,747

 

Basic income per share:

 

 

 

 

 

 

 

Continuing operations

$

1.72

 

 

$

1.83

 

 

$

4.59

 

 

$

5.23

 

Discontinued operations

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

$

1.72

 

 

$

1.83

 

 

$

4.59

 

 

$

5.23

 

Diluted income per share:

 

 

 

 

 

 

 

Continuing operations

$

1.69

 

 

$

1.80

 

 

$

4.53

 

 

$

5.16

 

Discontinued operations

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

$

1.69

 

 

$

1.80

 

 

$

4.53

 

 

$

5.16

 

 

Three Months Ended

 

Fiscal Year Ended

 

September 30,

 

September 30,

Capitalized Interest in Inventory

2024

 

2023

 

2024

 

2023

Capitalized interest in inventory, beginning of period

$

126,562

 

 

$

114,409

 

 

$

112,580

 

 

$

109,088

 

Interest incurred

 

21,326

 

 

 

18,090

 

 

 

79,835

 

 

 

71,981

 

Capitalized interest amortized to home construction and land sales expenses

 

(23,706

)

 

 

(19,919

)

 

 

(68,233

)

 

 

(68,489

)

Capitalized interest in inventory, end of period

$

124,182

 

 

$

112,580

 

 

$

124,182

 

 

$

112,580

 

   

BEAZER HOMES USA, INC.

CONSOLIDATED BALANCE SHEETS

 

in thousands (except share and per share data)

September 30, 2024

 

September 30, 2023

ASSETS

 

 

 

Cash and cash equivalents

$

203,907

 

$

345,590

Restricted cash

 

38,703

 

 

40,699

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

 

65,423

 

 

45,598

Owned inventory

 

2,040,640

 

 

1,756,203

Deferred tax assets, net

 

128,525

 

 

133,949

Property and equipment, net

 

38,628

 

 

31,144

Operating lease right-of-use assets

 

18,356

 

 

17,398

Goodwill

 

11,376

 

 

11,376

Other assets

 

45,969

 

 

29,076

Total assets

$

2,591,527

 

$

2,411,033

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Trade accounts payable

$

164,389

 

$

154,256

Operating lease liabilities

 

19,778

 

 

18,969

Other liabilities

 

149,900

 

 

156,961

Total debt (net of debt issuance costs of $8,310 and $5,759, respectively)

 

1,025,349

 

 

978,028

Total liabilities

 

1,359,416

 

 

1,308,214

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, 31,047,510 issued and outstanding and 31,351,434 issued and outstanding, respectively)

 

31

 

 

31

Paid-in capital

 

853,895

 

 

864,778

Retained earnings

 

378,185

 

 

238,010

Total stockholders’ equity

 

1,232,111

 

 

1,102,819

Total liabilities and stockholders’ equity

$

2,591,527

 

$

2,411,033

 

 

 

 

Inventory Breakdown

 

 

 

Homes under construction

$

754,705

 

$

644,363

Land under development

 

1,023,188

 

 

870,740

Land held for future development

 

19,879

 

 

19,879

Land held for sale

 

19,086

 

 

18,579

Capitalized interest

 

124,182

 

 

112,580

Model homes

 

99,600

 

 

90,062

Total owned inventory

$

2,040,640

 

$

1,756,203

 

BEAZER HOMES USA, INC.

SUPPLEMENTAL OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

 

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

SELECTED OPERATING DATA

2024

 

2023

 

 

2024

 

 

2023

Closings:

 

 

 

 

 

 

 

West region

972

 

693

 

 

2,821

 

 

2,468

East region

329

 

302

 

 

920

 

 

946

Southeast region

195

 

238

 

 

709

 

 

832

Total closings

1,496

 

1,233

 

 

4,450

 

 

4,246

 

 

 

 

 

 

 

 

New orders, net of cancellations:

 

 

 

 

 

 

 

West region

645

 

660

 

 

2,753

 

 

2,244

East region

227

 

192

 

 

912

 

 

859

Southeast region

157

 

151

 

 

556

 

 

763

Total new orders, net

1,029

 

1,003

 

 

4,221

 

 

3,866

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended September 30,

Backlog units at end of period:

 

 

 

 

 

2024

 

 

2023

West region

 

 

 

 

 

965

 

 

1,033

East region

 

 

 

 

 

315

 

 

323

Southeast region

 

 

 

 

 

202

 

 

355

Total backlog units

 

 

 

 

 

1,482

 

 

1,711

Aggregate dollar value of backlog (in millions)

 

 

 

 

$

797.2

 

$

886.4

ASP in backlog (in thousands)

 

 

 

 

$

537.9

 

$

518.0

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

SUPPLEMENTAL FINANCIAL DATA

2024

 

2023

 

2024

 

2023

Homebuilding revenue:

 

 

 

 

 

 

 

West region

$

503,428

 

$

361,894

 

$

1,448,607

 

$

1,292,060

East region

 

178,988

 

 

164,716

 

 

483,611

 

 

503,479

Southeast region

 

101,370

 

 

115,164

 

 

360,766

 

 

402,861

Total homebuilding revenue

$

783,786

 

$

641,774

 

$

2,292,984

 

$

2,198,400

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Homebuilding

$

783,786

 

$

641,774

 

$

2,292,984

 

$

2,198,400

Land sales and other

 

22,371

 

 

3,631

 

 

37,213

 

 

8,385

Total revenues

$

806,157

 

$

645,405

 

$

2,330,197

 

$

2,206,785

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

Homebuilding

$

134,911

 

$

135,925

 

$

413,611

 

$

438,120

Land sales and other

 

6,496

 

 

1,362

 

 

10,683

 

 

4,575

Total gross profit

$

141,407

 

$

137,287

 

$

424,294

 

$

442,695

Reconciliation of homebuilding gross profit and homebuilding gross margin (GAAP measures) to homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales (non-GAAP measures) 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 non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

2024

 

2023

 

2024

 

2023

Homebuilding gross profit/margin (GAAP)

$

134,911

17.2

%

 

$

135,925

21.2

%

 

$

413,611

18.0

%

 

$

438,120

19.9

%

Inventory impairments and abandonments (I&A)

 

1,796

 

 

 

25

 

 

 

1,996

 

 

 

641

 

Homebuilding gross profit/margin excluding I&A (Non-GAAP)

 

136,707

17.4

%

 

 

135,950

21.2

%

 

 

415,607

18.1

%

 

 

438,761

20.0

%

Interest amortized to cost of sales

 

23,130

 

 

 

19,919

 

 

 

67,658

 

 

 

68,489

 

Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales (Non-GAAP)

$

159,837

20.4

%

 

$

155,869

24.3

%

 

$

483,265

21.1

%

 

$

507,250

23.1

%

Reconciliation of Net Income (GAAP measure) to Adjusted EBITDA (Non-GAAP measure) is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing core operating results and underlying business trends by eliminating many of the differences in companies' respective capitalization, tax position, level of impairments, and other non-recurring items. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

 

Three Months Ended September 30,

 

Fiscal Year Ended September 30,

 

2024

 

2023

 

2024

 

2023

Net income (GAAP)

$

52,066

 

$

55,756

 

$

140,175

 

 

$

158,611

Expense from income taxes

 

8,537

 

 

8,470

 

 

18,910

 

 

 

23,936

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

 

23,705

 

 

19,919

 

 

68,233

 

 

 

68,489

EBIT (Non-GAAP)

 

84,308

 

 

84,145

 

 

227,318

 

 

 

251,036

Depreciation and amortization

 

5,169

 

 

3,758

 

 

14,867

 

 

 

12,198

EBITDA (Non-GAAP)

 

89,477

 

 

87,903

 

 

242,185

 

 

 

263,234

Stock-based compensation expense

 

1,855

 

 

2,028

 

 

7,391

 

 

 

7,275

Loss on extinguishment of debt

 

—

 

 

13

 

 

437

 

 

 

546

Inventory impairments and abandonments(a)

 

1,796

 

 

25

 

 

1,996

 

 

 

641

Gain on sale of investment(b)

 

—

 

 

—

 

 

(8,591

)

 

 

—

Restructuring and severance expenses

 

—

 

 

—

 

 

—

 

 

 

335

Adjusted EBITDA (Non-GAAP)

$

93,128

 

$

89,969

 

$

243,418

 

 

$

272,031

(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."

(b)

We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold during the quarter ended March 31, 2024. In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other assets in our consolidated balance sheets. The resulting gain of $8.6 million from this transaction was recognized in other income, net on our consolidated statement of operations. The Company believes excluding this one-time gain from Adjusted EBITDA provides a better reflection of the Company's performance as this item is not representative of our core operations.

Reconciliation of total debt to total capitalization ratio (GAAP measure) to net debt to net capitalization ratio (non-GAAP measure) is provided for each period below. Management believes that net debt to net capitalization ratio is useful in understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

 

Fiscal Year Ended September 30,

in thousands

2024

 

2023

Total debt (GAAP)

$

1,025,349

 

 

$

978,028

 

Stockholders' equity (GAAP)

 

1,232,111

 

 

 

1,102,819

 

Total capitalization (GAAP)

$

2,257,460

 

 

$

2,080,847

 

Total debt to total capitalization ratio (GAAP)

 

45.4

%

 

 

47.0

%

 

 

 

 

Total debt (GAAP)

$

1,025,349

 

 

$

978,028

 

Less: cash and cash equivalents (GAAP)

 

203,907

 

 

 

345,590

 

Net debt (Non-GAAP)

 

821,442

 

 

 

632,438

 

Stockholders' equity (GAAP)

 

1,232,111

 

 

 

1,102,819

 

Net capitalization (Non-GAAP)

$

2,053,553

 

 

$

1,735,257

 

Net debt to net capitalization ratio (Non-GAAP)

 

40.0

%

 

 

36.4

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113224291/en/

Beazer Homes USA, Inc.

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