DELAWARE | 001-12822 | 54-2086934 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits |
99.1 | Earnings Press Release dated January 28, 2013 |
BEAZER HOMES USA, INC. | ||||||||
Date: January 28, 2013 | By: | /s/ Kenneth F. Khoury | ||||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
Quarter Ended December 31, | ||||||||||||
2012 | 2011 | Change | ||||||||||
New Home Orders | 932 | 724 | 28.7 | % | ||||||||
LTM orders per month per community | 2.5 | 1.9 | 31.6 | % | ||||||||
Cancellation rates | 26.4 | % | 35.1 | % | -730 bps | |||||||
Total Home Closings | 1,038 | 867 | 19.7 | % | ||||||||
Average sales price from closings (in thousands) | $ | 235.5 | $ | 215.5 | 9.3 | % | ||||||
Homebuilding revenue (in millions) | $ | 244.4 | $ | 186.9 | 30.8 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) (a) | 14.7 | % | 13.3 | % | 140 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales (a) | 18.1 | % | 20.2 | % | -210 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (19.2 | ) | $ | (35.0 | ) | $ | 15.8 | ||||
Net (loss) income from continuing operations (in millions) | $ | (18.9 | ) | $ | 0.7 | $ | (19.6 | ) | ||||
Basic Per Share | $ | (0.78 | ) | $ | 0.05 | $ | (0.83 | ) | ||||
Inventory impairments (in millions) | $ | (0.2 | ) | $ | (3.5 | ) | $ | 3.3 | ||||
Net (loss) income from continuing operations excluding inventory impairments (in millions) | $ | (18.7 | ) | $ | 4.2 | $ | (22.9 | ) | ||||
Land and land development spending (in millions) | $ | 90.0 | $ | 58.2 | $ | 31.8 | ||||||
Adjusted EBITDA (in millions) | $ | 7.7 | $ | 3.8 | $ | 3.9 |
• | Total cash and cash equivalents: $648.2 million, including unrestricted cash of approximately $396.7 million |
• | Stockholders' equity: $242.6 million, not including $9.4 million of mandatory convertible subordinated notes, which converted to 408,790 shares of common stock at maturity on January 15, 2013 |
• | Total backlog from continuing operations: 1,817 homes with a sales value of $478.3 million, compared to 1,307 homes with a sales value of $315.8 million as of December 31, 2011 |
• | Land and lots controlled: 25,104 lots (82.0% owned), a decrease of 3.4% from December 31, 2011 |
Three Months Ended | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
Total revenue | $ | 246,902 | $ | 188,548 | |||
Home construction and land sales expenses | 210,614 | 162,776 | |||||
Inventory impairments and option contract abandonments | 204 | 3,503 | |||||
Gross profit | 36,084 | 22,269 | |||||
Commissions | 10,642 | 8,371 | |||||
General and administrative expenses | 26,328 | 28,194 | |||||
Depreciation and amortization | 2,715 | 2,403 | |||||
Operating loss | (3,601 | ) | (16,699 | ) | |||
Equity in income (loss) of unconsolidated entities | 36 | (77 | ) | ||||
Other expense, net | (15,627 | ) | (18,273 | ) | |||
Loss from continuing operations before income taxes | (19,192 | ) | (35,049 | ) | |||
Benefit from income taxes | (253 | ) | (35,747 | ) | |||
(Loss) income from continuing operations | (18,939 | ) | 698 | ||||
(Loss) income from discontinued operations, net of tax | (1,449 | ) | 41 | ||||
Net (loss) income | $ | (20,388 | ) | $ | 739 | ||
Weighted average number of shares: | |||||||
Basic | 24,294 | 14,833 | |||||
Diluted | 24,294 | 17,421 | |||||
(Loss) earnings per share: | |||||||
Basic (loss) earnings per share from continuing operations | $ | (0.78 | ) | $ | 0.05 | ||
Basic (loss) earnings per share from discontinued operations | $ | (0.06 | ) | $ | — | ||
Basic (loss) earnings per share | $ | (0.84 | ) | $ | 0.05 | ||
Diluted (loss) earnings per share from continuing operations | $ | (0.78 | ) | $ | 0.04 | ||
Diluted (loss) earnings per share from discontinued operations | $ | (0.06 | ) | $ | — | ||
Diluted (loss) earnings per share | $ | (0.84 | ) | $ | 0.04 |
Three Months Ended | |||||||
December 31, | |||||||
2012 | 2011 | ||||||
Capitalized interest in inventory, beginning of period | $ | 38,190 | $ | 45,973 | |||
Interest incurred | 28,418 | 32,525 | |||||
Capitalized interest impaired | — | (28 | ) | ||||
Interest expense not qualified for capitalization and included as other expense | (16,211 | ) | (19,117 | ) | |||
Capitalized interest amortized to house construction and land sales expenses | (8,475 | ) | (12,843 | ) | |||
Capitalized interest in inventory, end of period | $ | 41,922 | $ | 46,510 |
December 31, 2012 | September 30, 2012 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 396,696 | $ | 487,795 | ||||
Restricted cash | 251,455 | 253,260 | ||||||
Accounts receivable (net of allowance of $2,184 and $2,235, respectively) | 23,484 | 24,599 | ||||||
Income tax receivable | 2,513 | 6,372 | ||||||
Inventory | ||||||||
Owned inventory | 1,141,691 | 1,099,132 | ||||||
Land not owned under option agreements | 9,205 | 12,420 | ||||||
Total inventory | 1,150,896 | 1,111,552 | ||||||
Investments in unconsolidated entities | 42,029 | 42,078 | ||||||
Deferred tax assets, net | 6,924 | 6,848 | ||||||
Property, plant and equipment, net | 18,054 | 18,974 | ||||||
Other assets | 29,473 | 30,740 | ||||||
Total assets | $ | 1,921,524 | $ | 1,982,218 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Trade accounts payable | $ | 56,062 | $ | 69,268 | ||||
Other liabilities | 122,269 | 147,718 | ||||||
Obligations related to land not owned under option agreements | 3,625 | 4,787 | ||||||
Total debt (net of discounts of $2,944 and $3,082, respectively) | 1,496,951 | 1,498,198 | ||||||
Total liabilities | $ | 1,678,907 | $ | 1,719,971 | ||||
Stockholders’ equity: | ||||||||
Preferred stock (par value $.01 per share, 5,000,000 shares authorized, no shares issued) | $ | — | $ | — | ||||
Common stock (par value $0.001 per share, 100,000,000 shares authorized, 24,690,033 and 24,601,830 issued and outstanding, respectively) | 25 | 25 | ||||||
Paid-in capital | 834,752 | 833,994 | ||||||
Accumulated deficit | (592,160 | ) | (571,772 | ) | ||||
Total stockholders’ equity | 242,617 | 262,247 | ||||||
Total liabilities and stockholders’ equity | $ | 1,921,524 | $ | 1,982,218 | ||||
Inventory Breakdown | ||||||||
Homes under construction | $ | 261,062 | $ | 251,828 | ||||
Development projects in progress | 422,262 | 391,019 | ||||||
Land held for future development | 367,245 | 367,102 | ||||||
Land held for sale | 8,576 | 10,149 | ||||||
Capitalized interest | 41,922 | 38,190 | ||||||
Model homes | 40,624 | 40,844 | ||||||
Land not owned under option agreements | 9,205 | 12,420 | ||||||
Total inventory | $ | 1,150,896 | $ | 1,111,552 |
Quarter Ended December 31, | ||||||||
SELECTED OPERATING DATA | 2012 | 2011 | ||||||
Closings: | ||||||||
West region | 499 | 370 | ||||||
East region | 353 | 310 | ||||||
Southeast region | 186 | 187 | ||||||
Total closings | 1,038 | 867 | ||||||
New orders, net of cancellations: | ||||||||
West region | 424 | 303 | ||||||
East region | 309 | 249 | ||||||
Southeast region | 199 | 172 | ||||||
Total new orders | 932 | 724 | ||||||
Backlog units at end of period: | ||||||||
West region | 764 | 503 | ||||||
East region | 703 | 577 | ||||||
Southeast region | 350 | 227 | ||||||
Total backlog units | 1,817 | 1,307 | ||||||
Dollar value of backlog at end of period (in millions) | $ | 478.3 | $ | 315.8 | ||||
Homebuilding Revenue (in thousands): | ||||||||
West region | $ | 109,753 | $ | 70,254 | ||||
East region | 96,464 | 81,767 | ||||||
Southeast region | 38,208 | 34,831 | ||||||
Total homebuilding revenue | $ | 244,425 | $ | 186,852 |
Quarter Ended December 31, | ||||||||
SUPPLEMENTAL FINANCIAL DATA | 2012 | 2011 | ||||||
Revenues: | ||||||||
Homebuilding | $ | 244,425 | $ | 186,852 | ||||
Land sales and other | 2,477 | 1,696 | ||||||
Total | $ | 246,902 | $ | 188,548 | ||||
Gross profit: | ||||||||
Homebuilding | $ | 35,630 | $ | 21,352 | ||||
Land sales and other | 454 | 917 | ||||||
Total | $ | 36,084 | $ | 22,269 |
Quarter Ended December 31, | |||||||||||
2012 | 2011 | ||||||||||
Homebuilding gross profit | $ | 35,630 | 14.6 | % | $ | 21,352 | 11.4 | % | |||
Inventory impairments and lot option abandonments (I&A) | 204 | 3,503 | |||||||||
Homebuilding gross profit before I&A | 35,834 | 14.7 | % | 24,855 | 13.3 | % | |||||
Interest amortized to cost of sales | 8,475 | 12,843 | |||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | $ | 44,309 | 18.1 | % | $ | 37,698 | 20.2 | % |
Quarter Ended December 31, | ||||||||
2012 | 2011 | |||||||
Net (loss) income | $ | (20,388 | ) | $ | 739 | |||
Benefit from income taxes | (275 | ) | (36,146 | ) | ||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization | 24,686 | 31,988 | ||||||
Depreciation and amortization and stock compensation amortization | 3,499 | 3,703 | ||||||
Inventory impairments and option contract abandonments | 221 | 3,507 | ||||||
Joint venture impairment and abandonment charges | — | 29 | ||||||
Adjusted EBITDA | $ | 7,743 | $ | 3,820 |