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 July 31, 2014 |
BEAZER HOMES USA, INC. | ||||||||
Date: July 31, 2014 | By: | /s/ Kenneth F. Khoury | ||||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
• | 22.7% Homebuilding Gross Margins |
• | Affirms Expectation of Net Income for Fiscal 2014 |
Quarter Ended June 30, | ||||||||||||
2014 | 2013 | Change | ||||||||||
New Home Orders | 1,290 | 1,381 | (6.6 | )% | ||||||||
Orders per month per community | 3.1 | 3.2 | (3.1 | )% | ||||||||
Actual community count at month-end | 142 | 144 | (1.4 | )% | ||||||||
Average active community count | 140 | 144 | (2.8 | )% | ||||||||
Cancellation rates | 21.0 | % | 20.0 | % | 100 bps | |||||||
Total Home Closings | 1,241 | 1,234 | 0.6 | % | ||||||||
Average sales price from closings (in thousands) | $ | 284.6 | $ | 253.8 | 12.1 | % | ||||||
Homebuilding revenue (in millions) | $ | 353.2 | $ | 313.1 | 12.8 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 20.0 | % | 17.1 | % | 290 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 22.7 | % | 20.3 | % | 240 bps | |||||||
Income (loss) from continuing operations before loss on debt extinguishment (in millions) | $ | 6.6 | $ | (5.4 | ) | $ | 12.0 | |||||
Loss on debt extinguishment (in millions) | $ | (19.8 | ) | $ | — | $ | (19.8 | ) | ||||
Loss from continuing operations (in millions) | $ | (13.2 | ) | $ | (5.4 | ) | $ | (7.8 | ) | |||
Basic Loss Per Share | $ | (0.50 | ) | $ | (0.22 | ) | $ | (0.28 | ) | |||
Land and land development spending (in millions) | $ | 129.1 | $ | 161.8 | $ | (32.7 | ) | |||||
Total Company Adjusted EBITDA (in millions) | $ | 31.6 | $ | 21.8 | $ | 9.8 |
Nine Months Ended June 30, | ||||||||||||
2014 | 2013 | Change | ||||||||||
New Home Orders | 3,575 | 3,834 | (6.8 | )% | ||||||||
LTM orders per month per community | 2.9 | 2.7 | 7.4 | % | ||||||||
Cancellation rates | 20.6 | % | 21.1 | % | -50 bps | |||||||
Total Home Closings | 3,256 | 3,399 | (4.2 | )% | ||||||||
Average sales price from closings (in thousands) | $ | 279.3 | $ | 248.0 | 12.6 | % | ||||||
Homebuilding revenue (in millions) | $ | 909.2 | $ | 843.0 | 7.9 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 19.5 | % | 16.0 | % | 350 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 22.2 | % | 19.3 | % | 290 bps | |||||||
Loss from continuing operations before loss on debt extinguishment (in millions) | $ | (5.5 | ) | $ | (39.9 | ) | $ | 34.4 | ||||
Loss on debt extinguishment (in millions) | $ | (19.9 | ) | $ | (3.6 | ) | $ | (16.3 | ) | |||
Net loss from continuing operations (in millions) | $ | (25.4 | ) | $ | (43.5 | ) | $ | 18.1 | ||||
Basic Loss Per Share | $ | (0.99 | ) | $ | (1.77 | ) | $ | 0.78 | ||||
Land and land development spending (in millions) | $ | 381.5 | $ | 314.4 | $ | 67.1 | ||||||
Total Company Adjusted EBITDA (in millions) | $ | 71.8 | $ | 44.7 | $ | 27.1 |
• | Total cash and cash equivalents: $264.4 million, including unrestricted cash of approximately $206.5 million |
• | Stockholders' equity: $219.0 million |
• | Total backlog from continuing operations: 2,212 homes with a sales value of $663.2 million, compared to 2,358 homes with a sales value of $646.1 million as of June 30, 2013 |
• | Land and lots controlled: 29,783 lots (79.4% owned), an increase of 10.4% from June 30, 2013 |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total revenue | $ | 354,671 | $ | 314,439 | $ | 917,862 | $ | 849,243 | |||||||
Home construction and land sales expenses | 283,857 | 260,324 | 739,295 | 712,930 | |||||||||||
Inventory impairments and option contract abandonments | 2,010 | — | 2,921 | 2,229 | |||||||||||
Gross profit | 68,804 | 54,115 | 175,646 | 134,084 | |||||||||||
Commissions | 14,322 | 13,078 | 37,239 | 35,406 | |||||||||||
General and administrative expenses | 35,994 | 29,612 | 97,032 | 84,735 | |||||||||||
Depreciation and amortization | 3,400 | 2,953 | 9,138 | 8,761 | |||||||||||
Operating income | 15,088 | 8,472 | 32,237 | 5,182 | |||||||||||
Equity in (loss) income of unconsolidated entities | (81 | ) | (310 | ) | 221 | (206 | ) | ||||||||
Loss on extinguishment of debt | (19,764 | ) | — | (19,917 | ) | (3,638 | ) | ||||||||
Other expense, net | (10,205 | ) | (14,036 | ) | (39,689 | ) | (45,858 | ) | |||||||
Loss from continuing operations before income taxes | (14,962 | ) | (5,874 | ) | (27,148 | ) | (44,520 | ) | |||||||
Benefit from income taxes | (1,769 | ) | (432 | ) | (1,783 | ) | (1,028 | ) | |||||||
Loss from continuing operations | (13,193 | ) | (5,442 | ) | (25,365 | ) | (43,492 | ) | |||||||
Income (loss) from discontinued operations, net of tax | 838 | (346 | ) | (99 | ) | (2,324 | ) | ||||||||
Net loss | $ | (12,355 | ) | $ | (5,788 | ) | $ | (25,464 | ) | $ | (45,816 | ) | |||
Weighted average number of shares: | |||||||||||||||
Basic and Diluted | 26,421 | 24,770 | 25,582 | 24,571 | |||||||||||
Basic and Diluted (loss) income per share: | |||||||||||||||
Continuing Operations | $ | (0.50 | ) | $ | (0.22 | ) | $ | (0.99 | ) | $ | (1.77 | ) | |||
Discontinued Operations | $ | 0.03 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.09 | ) | ||||
Total | $ | (0.47 | ) | $ | (0.23 | ) | $ | (1.00 | ) | $ | (1.86 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Capitalized interest in inventory, beginning of period | $ | 72,256 | $ | 45,501 | $ | 52,562 | $ | 38,190 | |||||||
Interest incurred | 31,678 | 28,766 | 96,577 | 86,361 | |||||||||||
Interest expense not qualified for capitalization and included as other expense | (10,421 | ) | (14,252 | ) | (41,112 | ) | (46,709 | ) | |||||||
Capitalized interest amortized to house construction and land sales expenses | (9,430 | ) | (9,996 | ) | (23,944 | ) | (27,823 | ) | |||||||
Capitalized interest in inventory, end of period | $ | 84,083 | $ | 50,019 | $ | 84,083 | $ | 50,019 |
June 30, 2014 | September 30, 2013 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 206,482 | $ | 504,459 | ||||
Restricted cash | 57,963 | 48,978 | ||||||
Accounts receivable (net of allowance of $1,278 and $1,651, respectively) | 28,999 | 22,342 | ||||||
Income tax receivable | 4,754 | 2,813 | ||||||
Inventory | ||||||||
Owned inventory | 1,587,954 | 1,304,694 | ||||||
Land not owned under option agreements | 7,588 | 9,124 | ||||||
Total inventory | 1,595,542 | 1,313,818 | ||||||
Investments in unconsolidated entities | 34,224 | 44,997 | ||||||
Deferred tax assets, net | 5,480 | 5,253 | ||||||
Property, plant and equipment, net | 17,183 | 17,000 | ||||||
Other assets | 26,767 | 27,129 | ||||||
Total assets | $ | 1,977,394 | $ | 1,986,789 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Trade accounts payable | $ | 84,435 | $ | 83,800 | ||||
Other liabilities | 133,698 | 145,623 | ||||||
Obligations related to land not owned under option agreements | 3,016 | 4,633 | ||||||
Total debt (net of discounts of $4,590 and $5,160 respectively) | 1,537,242 | 1,512,183 | ||||||
Total liabilities | $ | 1,758,391 | $ | 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, 26,768,714 and 25,245,945 issued and outstanding, respectively) | 27 | 25 | ||||||
Paid-in capital | 850,080 | 846,165 | ||||||
Accumulated deficit | (631,104 | ) | (605,640 | ) | ||||
Total stockholders’ equity | 219,003 | 240,550 | ||||||
Total liabilities and stockholders’ equity | $ | 1,977,394 | $ | 1,986,789 | ||||
Inventory Breakdown | ||||||||
Homes under construction | $ | 384,795 | $ | 262,476 | ||||
Development projects in progress | 690,557 | 578,453 | ||||||
Land held for future development | 309,516 | 341,986 | ||||||
Land held for sale | 74,365 | 31,331 | ||||||
Capitalized interest | 84,083 | 52,562 | ||||||
Model homes | 44,638 | 37,886 | ||||||
Land not owned under option agreements | 7,588 | 9,124 | ||||||
Total inventory | $ | 1,595,542 | $ | 1,313,818 |
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
SELECTED OPERATING DATA | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Closings: | ||||||||||||||||
West region | 514 | 550 | 1,402 | 1,553 | ||||||||||||
East region | 383 | 370 | 978 | 1,106 | ||||||||||||
Southeast region | 344 | 314 | 876 | 740 | ||||||||||||
Total closings | 1,241 | 1,234 | 3,256 | 3,399 | ||||||||||||
New orders, net of cancellations: | ||||||||||||||||
West region | 486 | 614 | 1,387 | 1,696 | ||||||||||||
East region | 418 | 389 | 1,150 | 1,140 | ||||||||||||
Southeast region | 386 | 378 | 1,038 | 998 | ||||||||||||
Total new orders | 1,290 | 1,381 | 3,575 | 3,834 | ||||||||||||
Backlog units at end of period: | ||||||||||||||||
West region | 723 | 982 | 723 | 982 | ||||||||||||
East region | 833 | 781 | 833 | 781 | ||||||||||||
Southeast region | 656 | 595 | 656 | 595 | ||||||||||||
Total backlog units | 2,212 | 2,358 | 2,212 | 2,358 | ||||||||||||
Dollar value of backlog at end of period (in millions) | $ | 663.2 | $ | 646.1 | $ | 663.2 | $ | 646.1 | ||||||||
Homebuilding Revenue: | ||||||||||||||||
West region | $ | 136,775 | $ | 132,803 | $ | 376,031 | $ | 360,052 | ||||||||
East region | 127,147 | 111,333 | 316,392 | 324,334 | ||||||||||||
Southeast region | 89,243 | 68,993 | 216,825 | 158,639 | ||||||||||||
Total homebuilding revenue | $ | 353,165 | $ | 313,129 | $ | 909,248 | $ | 843,025 |
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | ||||||||||||||||
Homebuilding | $ | 353,165 | $ | 313,129 | $ | 909,248 | $ | 843,025 | ||||||||
Land sales and other | 1,506 | 1,310 | 8,614 | 6,218 | ||||||||||||
Total | $ | 354,671 | $ | 314,439 | $ | 917,862 | $ | 849,243 | ||||||||
Gross profit: | ||||||||||||||||
Homebuilding | $ | 68,672 | $ | 53,588 | $ | 174,777 | $ | 132,471 | ||||||||
Land sales and other | 132 | 527 | 869 | 1,613 | ||||||||||||
Total | $ | 68,804 | $ | 54,115 | $ | 175,646 | $ | 134,084 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Homebuilding gross profit | $ | 68,672 | 19.4 | % | $ | 53,588 | 17.1 | % | $ | 174,777 | 19.2 | % | $ | 132,471 | 15.7 | % | |||||||
Inventory impairments and lot option abandonments (I&A) | 2,010 | — | 2,921 | 2,229 | |||||||||||||||||||
Homebuilding gross profit before I&A | 70,682 | 20.0 | % | 53,588 | 17.1 | % | 177,698 | 19.5 | % | 134,700 | 16.0 | % | |||||||||||
Interest amortized to cost of sales | 9,430 | 9,996 | 23,944 | 27,823 | |||||||||||||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | $ | 80,112 | 22.7 | % | $ | 63,584 | 20.3 | % | $ | 201,642 | 22.2 | % | $ | 162,523 | 19.3 | % |
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net loss | $ | (12,355 | ) | $ | (5,788 | ) | $ | (25,464 | ) | $ | (45,816 | ) | ||||
Benefit from income taxes | (1,661 | ) | (470 | ) | (1,665 | ) | (1,097 | ) | ||||||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization | 19,851 | 24,248 | 65,056 | 74,532 | ||||||||||||
Depreciation and amortization and stock compensation amortization | 4,013 | 3,590 | 11,017 | 11,036 | ||||||||||||
Inventory impairments and option contract abandonments | 2,010 | — | 2,921 | 2,246 | ||||||||||||
Loss on debt extinguishment | 19,764 | — | 19,917 | 3,638 | ||||||||||||
Joint venture impairment and abandonment charges | — | 181 | — | 181 | ||||||||||||
Adjusted EBITDA | $ | 31,622 | $ | 21,761 | $ | 71,782 | $ | 44,720 |