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 30, 2014 |
BEAZER HOMES USA, INC. | ||||||||
Date: January 30, 2014 | By: | /s/ Kenneth F. Khoury | ||||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
Quarter Ended December 31, | ||||||||||||
2013 | 2012 | Change | ||||||||||
New Home Orders | 895 | 932 | (4.0 | )% | ||||||||
Orders per month per community | 2.2 | 2.1 | 4.8 | % | ||||||||
LTM orders per month per community | 2.9 | 2.5 | 16.0 | % | ||||||||
Cancellation rates | 21.8 | % | 26.4 | % | -460 bps | |||||||
Total Home Closings | 1,038 | 1,038 | — | % | ||||||||
Average sales price from closings (in thousands) | $ | 279.3 | $ | 235.5 | 18.6 | % | ||||||
Homebuilding revenue (in millions) | $ | 290.0 | $ | 244.4 | 18.6 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 18.8 | % | 14.7 | % | 410 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 21.2 | % | 18.1 | % | 310 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (3.9 | ) | $ | (19.2 | ) | $ | 15.3 | ||||
Benefit from income taxes (in millions) | $ | — | $ | 0.3 | $ | (0.3 | ) | |||||
Net loss from continuing operations (in millions) | $ | (3.9 | ) | $ | (18.9 | ) | $ | 15.0 | ||||
Basic Loss Per Share | $ | (0.16 | ) | $ | (0.78 | ) | $ | 0.62 | ||||
Inventory impairments (in millions) | $ | — | $ | (0.2 | ) | $ | 0.2 | |||||
Net loss from continuing operations excluding inventory impairments (in millions) | $ | (3.9 | ) | $ | (18.7 | ) | $ | 14.8 | ||||
Land and land development spending (in millions) | $ | 123.8 | $ | 90.0 | $ | 33.8 | ||||||
Total Company Adjusted EBITDA (in millions) | $ | 21.6 | $ | 7.7 | $ | 13.9 |
• | Total cash and cash equivalents: $431.7 million, including unrestricted cash of approximately $382.6 million |
• | Stockholders' equity: $235.6 million |
• | Total backlog from continuing operations: 1,750 homes with a sales value of $500.0 million, compared to 1,817 homes with a sales value of $478.3 million as of December 31, 2012 |
• | Land and lots controlled: 28,978 lots (79.0% owned), an increase of 15.4% from December 31, 2012 |
Three Months Ended | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Total revenue | $ | 293,170 | $ | 246,902 | |||
Home construction and land sales expenses | 238,469 | 210,614 | |||||
Inventory impairments and option contract abandonments | 31 | 204 | |||||
Gross profit | 54,670 | 36,084 | |||||
Commissions | 11,821 | 10,642 | |||||
General and administrative expenses | 28,410 | 26,328 | |||||
Depreciation and amortization | 2,907 | 2,715 | |||||
Operating income (loss) | 11,532 | (3,601 | ) | ||||
Equity in income of unconsolidated entities | 319 | 36 | |||||
Other expense, net | (15,757 | ) | (15,627 | ) | |||
Loss from continuing operations before income taxes | (3,906 | ) | (19,192 | ) | |||
Provision for (benefit from) income taxes | 42 | (253 | ) | ||||
Loss from continuing operations | (3,948 | ) | (18,939 | ) | |||
Loss from discontinued operations, net of tax | (1,190 | ) | (1,449 | ) | |||
Net loss | $ | (5,138 | ) | $ | (20,388 | ) | |
Weighted average number of shares: | |||||||
Basic and Diluted | 25,009 | 24,294 | |||||
Basic and Diluted loss per share: | |||||||
Continuing Operations | $ | (0.16 | ) | $ | (0.78 | ) | |
Discontinued Operations | $ | (0.05 | ) | $ | (0.06 | ) | |
Total | $ | (0.21 | ) | $ | (0.84 | ) |
Three Months Ended | |||||||
December 31, | |||||||
2013 | 2012 | ||||||
Capitalized interest in inventory, beginning of period | $ | 52,562 | $ | 38,190 | |||
Interest incurred | 32,441 | 28,418 | |||||
Interest expense not qualified for capitalization and included as other expense | (16,032 | ) | (16,211 | ) | |||
Capitalized interest amortized to house construction and land sales expenses | (7,135 | ) | (8,475 | ) | |||
Capitalized interest in inventory, end of period | $ | 61,836 | $ | 41,922 |
December 31, 2013 | September 30, 2013 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 382,560 | $ | 504,459 | ||||
Restricted cash | 49,155 | 48,978 | ||||||
Accounts receivable (net of allowance of $1,495 and $1,651, respectively) | 21,074 | 22,342 | ||||||
Income tax receivable | 2,813 | 2,813 | ||||||
Inventory | ||||||||
Owned inventory | 1,374,987 | 1,304,694 | ||||||
Land not owned under option agreements | 7,751 | 9,124 | ||||||
Total inventory | 1,382,738 | 1,313,818 | ||||||
Investments in unconsolidated entities | 47,424 | 44,997 | ||||||
Deferred tax assets, net | 5,333 | 5,253 | ||||||
Property, plant and equipment, net | 17,437 | 17,000 | ||||||
Other assets | 24,299 | 27,129 | ||||||
Total assets | $ | 1,932,833 | $ | 1,986,789 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Trade accounts payable | $ | 60,505 | $ | 83,800 | ||||
Other liabilities | 117,318 | 145,623 | ||||||
Obligations related to land not owned under option agreements | 3,147 | 4,633 | ||||||
Total debt (net of discounts of $4,970 and $5,160 respectively) | 1,516,255 | 1,512,183 | ||||||
Total liabilities | $ | 1,697,225 | $ | 1,746,239 | ||||
Stockholders’ equity: | ||||||||
Preferred stock (par value $.01 per share, 5,000,000 shares authorized, no shares issued) | $ | — | $ | — | ||||
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 25,358,835 and 25,245,945 issued and outstanding, respectively) | 25 | 25 | ||||||
Paid-in capital | 846,361 | 846,165 | ||||||
Accumulated deficit | (610,778 | ) | (605,640 | ) | ||||
Total stockholders’ equity | 235,608 | 240,550 | ||||||
Total liabilities and stockholders’ equity | $ | 1,932,833 | $ | 1,986,789 | ||||
Inventory Breakdown | ||||||||
Homes under construction | $ | 260,359 | $ | 262,476 | ||||
Development projects in progress | 611,736 | 578,453 | ||||||
Land held for future development | 338,512 | 341,986 | ||||||
Land held for sale | 59,924 | 31,331 | ||||||
Capitalized interest | 61,836 | 52,562 | ||||||
Model homes | 42,620 | 37,886 | ||||||
Land not owned under option agreements | 7,751 | 9,124 | ||||||
Total inventory | $ | 1,382,738 | $ | 1,313,818 |
Quarter Ended December 31, | ||||||||
SELECTED OPERATING DATA | 2013 | 2012 | ||||||
Closings: | ||||||||
West region | 435 | 499 | ||||||
East region | 338 | 353 | ||||||
Southeast region | 265 | 186 | ||||||
Total closings | 1,038 | 1,038 | ||||||
New orders, net of cancellations: | ||||||||
West region | 351 | 424 | ||||||
East region | 308 | 309 | ||||||
Southeast region | 236 | 199 | ||||||
Total new orders | 895 | 932 | ||||||
Backlog units at end of period: | ||||||||
West region | 654 | 764 | ||||||
East region | 631 | 703 | ||||||
Southeast region | 465 | 350 | ||||||
Total backlog units | 1,750 | 1,817 | ||||||
Dollar value of backlog at end of period (in millions) | $ | 500.0 | $ | 478.3 | ||||
Homebuilding Revenue: | ||||||||
West region | $ | 120,212 | $ | 109,753 | ||||
East region | 106,879 | 96,464 | ||||||
Southeast region | 62,867 | 38,208 | ||||||
Total homebuilding revenue | $ | 289,958 | $ | 244,425 |
Quarter Ended December 31, | ||||||||
SUPPLEMENTAL FINANCIAL DATA | 2013 | 2012 | ||||||
Revenues: | ||||||||
Homebuilding | $ | 289,958 | $ | 244,425 | ||||
Land sales and other | 3,212 | 2,477 | ||||||
Total | $ | 293,170 | $ | 246,902 | ||||
Gross profit: | ||||||||
Homebuilding | $ | 54,450 | $ | 35,630 | ||||
Land sales and other | 220 | 454 | ||||||
Total | $ | 54,670 | $ | 36,084 |
Quarter Ended December 31, | |||||||||||
2013 | 2012 | ||||||||||
Homebuilding gross profit | $ | 54,450 | 18.8 | % | $ | 35,630 | 14.6 | % | |||
Inventory impairments and lot option abandonments (I&A) | 31 | 204 | |||||||||
Homebuilding gross profit before I&A | 54,481 | 18.8 | % | 35,834 | 14.7 | % | |||||
Interest amortized to cost of sales | 7,135 | 8,475 | |||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | $ | 61,616 | 21.2 | % | $ | 44,309 | 18.1 | % |
Quarter Ended December 31, | ||||||||
2013 | 2012 | |||||||
Net loss | $ | (5,138 | ) | $ | (20,388 | ) | ||
Benefit from income taxes | 52 | (275 | ) | |||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization | 23,167 | 24,686 | ||||||
Depreciation and amortization and stock compensation amortization | 3,516 | 3,499 | ||||||
Inventory impairments and option contract abandonments | 31 | 221 | ||||||
Adjusted EBITDA | $ | 21,628 | $ | 7,743 |