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 May 1, 2014 |
BEAZER HOMES USA, INC. | ||||||||
Date: May 1, 2014 | By: | /s/ Kenneth F. Khoury | ||||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
Quarter Ended March 31, | ||||||||||||
2014 | 2013 | Change | ||||||||||
New Home Orders | 1,390 | 1,521 | (8.6 | )% | ||||||||
Orders per month per community | 3.3 | 3.4 | (2.9 | )% | ||||||||
LTM orders per month per community | 2.9 | 2.7 | 7.4 | % | ||||||||
Cancellation rates | 19.4 | % | 18.7 | % | 70 bps | |||||||
Total Home Closings | 977 | 1,127 | (13.3 | )% | ||||||||
Average sales price from closings (in thousands) | $ | 272.4 | $ | 253.3 | 7.5 | % | ||||||
Homebuilding revenue (in millions) | $ | 266.1 | $ | 285.5 | (6.8 | )% | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 19.7 | % | 15.9 | % | 380 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 22.5 | % | 19.1 | % | 340 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (8.3 | ) | $ | (19.5 | ) | $ | 11.2 | ||||
Benefit from income taxes (in millions) | $ | 0.1 | $ | 0.3 | $ | (0.2 | ) | |||||
Net loss from continuing operations (in millions) | $ | (8.2 | ) | $ | (19.1 | ) | $ | 10.9 | ||||
Basic Loss Per Share | $ | (0.32 | ) | $ | (0.78 | ) | $ | 0.46 | ||||
Land and land development spending (in millions) | $ | 128.6 | $ | 62.6 | $ | 66.0 | ||||||
Total Company Adjusted EBITDA (in millions) | $ | 18.5 | $ | 15.2 | $ | 3.3 |
Six Months Ended March 31, | ||||||||||||
2014 | 2013 | Change | ||||||||||
New Home Orders | 2,285 | 2,453 | (6.8 | )% | ||||||||
LTM orders per month per community | 2.9 | 2.7 | 7.4 | % | ||||||||
Cancellation rates | 20.4 | % | 21.8 | % | -140 bps | |||||||
Total Home Closings | 2,015 | 2,165 | (6.9 | )% | ||||||||
Average sales price from closings (in thousands) | $ | 276.0 | $ | 244.8 | 12.7 | % | ||||||
Homebuilding revenue (in millions) | $ | 556.1 | $ | 529.9 | 4.9 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 19.2 | % | 15.3 | % | 390 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 21.9 | % | 18.7 | % | 320 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (12.2 | ) | $ | (38.6 | ) | $ | 26.4 | ||||
Benefit from income taxes (in millions) | $ | — | $ | 0.6 | $ | (0.6 | ) | |||||
Net loss from continuing operations (in millions) | $ | (12.2 | ) | $ | (38.1 | ) | $ | 25.9 | ||||
Basic Loss Per Share | $ | (0.48 | ) | $ | (1.55 | ) | $ | 1.07 | ||||
Land and land development spending (in millions) | $ | 252.4 | $ | 152.6 | $ | 99.8 | ||||||
Total Company Adjusted EBITDA (in millions) | $ | 40.2 | $ | 23.0 | $ | 17.2 |
• | Total cash and cash equivalents: $350.4 million, including unrestricted cash of approximately $299.6 million |
• | Stockholders' equity: $230.8 million |
• | Total backlog from continuing operations: 2,163 homes with a sales value of $637.1 million, compared to 2,211 homes with a sales value of $584.2 million as of March 31, 2013 |
• | Land and lots controlled: 29,331 lots (80.9% owned), an increase of 18.8% from March 31, 2013 (includes 246 lots obtained through a non-cash distribution of our Las Vegas joint venture) |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total revenue | $ | 270,021 | $ | 287,902 | $ | 563,191 | $ | 534,804 | |||||||
Home construction and land sales expenses | 216,969 | 241,992 | 455,438 | 452,606 | |||||||||||
Inventory impairments and option contract abandonments | 880 | 2,025 | 911 | 2,229 | |||||||||||
Gross profit | 52,172 | 43,885 | 106,842 | 79,969 | |||||||||||
Commissions | 11,096 | 11,686 | 22,917 | 22,328 | |||||||||||
General and administrative expenses | 32,628 | 28,795 | 61,038 | 55,123 | |||||||||||
Depreciation and amortization | 2,831 | 3,093 | 5,738 | 5,808 | |||||||||||
Operating income (loss) | 5,617 | 311 | 17,149 | (3,290 | ) | ||||||||||
Equity in (loss) income of unconsolidated entities | (17 | ) | 68 | 302 | 104 | ||||||||||
Loss on extinguishment of debt | (153 | ) | (3,638 | ) | (153 | ) | (3,638 | ) | |||||||
Other expense, net | (13,727 | ) | (16,195 | ) | (29,484 | ) | (31,822 | ) | |||||||
Loss from continuing operations before income taxes | (8,280 | ) | (19,454 | ) | (12,186 | ) | (38,646 | ) | |||||||
Benefit from income taxes | (56 | ) | (343 | ) | (14 | ) | (596 | ) | |||||||
Loss from continuing operations | (8,224 | ) | (19,111 | ) | (12,172 | ) | (38,050 | ) | |||||||
Income (loss) from discontinued operations, net of tax | 253 | (529 | ) | (937 | ) | (1,978 | ) | ||||||||
Net loss | $ | (7,971 | ) | $ | (19,640 | ) | $ | (13,109 | ) | $ | (40,028 | ) | |||
Weighted average number of shares: | |||||||||||||||
Basic and Diluted | 25,320 | 24,654 | 25,163 | 24,472 | |||||||||||
Basic and Diluted (loss) income per share: | |||||||||||||||
Continuing Operations | $ | (0.32 | ) | $ | (0.78 | ) | $ | (0.48 | ) | $ | (1.55 | ) | |||
Discontinued Operations | $ | 0.01 | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.09 | ) | ||||
Total | $ | (0.31 | ) | $ | (0.80 | ) | $ | (0.52 | ) | $ | (1.64 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Capitalized interest in inventory, beginning of period | $ | 61,836 | $ | 41,922 | $ | 52,562 | $ | 38,190 | |||||||
Interest incurred | 32,458 | 29,177 | 64,899 | 57,595 | |||||||||||
Interest expense not qualified for capitalization and included as other expense | (14,659 | ) | (16,246 | ) | (30,691 | ) | (32,457 | ) | |||||||
Capitalized interest amortized to house construction and land sales expenses | (7,379 | ) | (9,352 | ) | (14,514 | ) | (17,827 | ) | |||||||
Capitalized interest in inventory, end of period | $ | 72,256 | $ | 45,501 | $ | 72,256 | $ | 45,501 |
March 31, 2014 | September 30, 2013 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 299,620 | $ | 504,459 | ||||
Restricted cash | 50,765 | 48,978 | ||||||
Accounts receivable (net of allowance of $1,278 and $1,651, respectively) | 28,911 | 22,342 | ||||||
Income tax receivable | 2,813 | 2,813 | ||||||
Inventory | ||||||||
Owned inventory | 1,480,360 | 1,304,694 | ||||||
Land not owned under option agreements | 7,751 | 9,124 | ||||||
Total inventory | 1,488,111 | 1,313,818 | ||||||
Investments in unconsolidated entities | 36,547 | 44,997 | ||||||
Deferred tax assets, net | 5,407 | 5,253 | ||||||
Property, plant and equipment, net | 18,142 | 17,000 | ||||||
Other assets | 21,068 | 27,129 | ||||||
Total assets | $ | 1,951,384 | $ | 1,986,789 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Trade accounts payable | $ | 71,891 | $ | 83,800 | ||||
Other liabilities | 133,675 | 145,623 | ||||||
Obligations related to land not owned under option agreements | 3,147 | 4,633 | ||||||
Total debt (net of discounts of $4,780 and $5,160 respectively) | 1,511,873 | 1,512,183 | ||||||
Total liabilities | $ | 1,720,586 | $ | 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, 26,721,886 and 25,245,945 issued and outstanding, respectively) | 27 | 25 | ||||||
Paid-in capital | 849,520 | 846,165 | ||||||
Accumulated deficit | (618,749 | ) | (605,640 | ) | ||||
Total stockholders’ equity | 230,798 | 240,550 | ||||||
Total liabilities and stockholders’ equity | $ | 1,951,384 | $ | 1,986,789 | ||||
Inventory Breakdown | ||||||||
Homes under construction | $ | 319,758 | $ | 262,476 | ||||
Development projects in progress | 681,665 | 578,453 | ||||||
Land held for future development | 306,119 | 341,986 | ||||||
Land held for sale | 57,537 | 31,331 | ||||||
Capitalized interest | 72,256 | 52,562 | ||||||
Model homes | 43,025 | 37,886 | ||||||
Land not owned under option agreements | 7,751 | 9,124 | ||||||
Total inventory | $ | 1,488,111 | $ | 1,313,818 |
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
SELECTED OPERATING DATA | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Closings: | ||||||||||||||||
West region | 453 | 504 | 888 | 1,003 | ||||||||||||
East region | 257 | 383 | 595 | 736 | ||||||||||||
Southeast region | 267 | 240 | 532 | 426 | ||||||||||||
Total closings | 977 | 1,127 | 2,015 | 2,165 | ||||||||||||
New orders, net of cancellations: | ||||||||||||||||
West region | 550 | 658 | 901 | 1,082 | ||||||||||||
East region | 424 | 442 | 732 | 751 | ||||||||||||
Southeast region | 416 | 421 | 652 | 620 | ||||||||||||
Total new orders | 1,390 | 1,521 | 2,285 | 2,453 | ||||||||||||
Backlog units at end of period: | ||||||||||||||||
West region | 751 | 918 | 751 | 918 | ||||||||||||
East region | 798 | 762 | 798 | 762 | ||||||||||||
Southeast region | 614 | 531 | 614 | 531 | ||||||||||||
Total backlog units | 2,163 | 2,211 | 2,163 | 2,211 | ||||||||||||
Dollar value of backlog at end of period (in millions) | $ | 637.1 | $ | 584.2 | $ | 637.1 | $ | 584.2 | ||||||||
Homebuilding Revenue: | ||||||||||||||||
West region | $ | 119,044 | $ | 117,496 | $ | 239,256 | $ | 227,249 | ||||||||
East region | 82,366 | 116,537 | 189,245 | 213,001 | ||||||||||||
Southeast region | 64,715 | 51,438 | 127,582 | 89,646 | ||||||||||||
Total homebuilding revenue | $ | 266,125 | $ | 285,471 | $ | 556,083 | $ | 529,896 |
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | ||||||||||||||||
Homebuilding | $ | 266,125 | $ | 285,471 | $ | 556,083 | $ | 529,896 | ||||||||
Land sales and other | 3,896 | 2,431 | 7,108 | 4,908 | ||||||||||||
Total | $ | 270,021 | $ | 287,902 | $ | 563,191 | $ | 534,804 | ||||||||
Gross profit: | ||||||||||||||||
Homebuilding | $ | 51,655 | $ | 43,253 | $ | 106,105 | $ | 78,883 | ||||||||
Land sales and other | 517 | 632 | 737 | 1,086 | ||||||||||||
Total | $ | 52,172 | $ | 43,885 | $ | 106,842 | $ | 79,969 |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Homebuilding gross profit | $ | 51,655 | 19.4 | % | $ | 43,253 | 15.2 | % | $ | 106,105 | 19.1 | % | $ | 78,883 | 14.9 | % | |||||||
Inventory impairments and lot option abandonments (I&A) | 880 | 2,025 | 911 | 2,229 | |||||||||||||||||||
Homebuilding gross profit before I&A | 52,535 | 19.7 | % | 45,278 | 15.9 | % | 107,016 | 19.2 | % | 81,112 | 15.3 | % | |||||||||||
Interest amortized to cost of sales | 7,379 | 9,352 | 14,514 | 17,827 | |||||||||||||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | $ | 59,914 | 22.5 | % | $ | 54,630 | 19.1 | % | $ | 121,530 | 21.9 | % | $ | 98,939 | 18.7 | % |
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net loss | $ | (7,971 | ) | $ | (19,640 | ) | $ | (13,109 | ) | $ | (40,028 | ) | ||||
Benefit from income taxes | (56 | ) | (352 | ) | (4 | ) | (627 | ) | ||||||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization | 22,038 | 25,598 | 45,205 | 50,284 | ||||||||||||
Depreciation and amortization and stock compensation amortization | 3,488 | 3,947 | 7,004 | 7,446 | ||||||||||||
Inventory impairments and option contract abandonments | 880 | 2,025 | 911 | 2,246 | ||||||||||||
Loss on debt extinguishment | 153 | 3,638 | 153 | 3,638 | ||||||||||||
Adjusted EBITDA | $ | 18,532 | $ | 15,216 | $ | 40,160 | $ | 22,959 |