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 August 4, 2015 |
BEAZER HOMES USA, INC. | ||||||||
Date: | August 4, 2015 | By: | /s/ Kenneth F. Khoury | |||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
Quarter Ended June 30, | ||||||||||||
2015 | 2014 | Change | ||||||||||
New Home Orders | 1,524 | 1,290 | 18.1 | % | ||||||||
Orders per month per community | 3.1 | 3.1 | — | % | ||||||||
Actual community count at month-end | 168 | 142 | 18.3 | % | ||||||||
Average active community count | 164 | 140 | 17.1 | % | ||||||||
Cancellation rates | 19.6 | % | 21.0 | % | -140 bps | |||||||
Total Home Closings | 1,293 | 1,241 | 4.2 | % | ||||||||
Average sales price from closings (in thousands) | $ | 318.0 | $ | 284.6 | 11.7 | % | ||||||
Homebuilding revenue (in millions) | $ | 411.1 | $ | 353.2 | 16.4 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 18.1 | % | 20.0 | % | -190 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 21.3 | % | 22.7 | % | -140 bps | |||||||
Income (loss) from continuing operations before income taxes (in millions) | $ | 12.1 | $ | (15.0 | ) | $ | 27.1 | |||||
Provision for (benefit from) income taxes (in millions) | $ | (0.1 | ) | $ | (1.8 | ) | $ | 1.7 | ||||
Net income (loss) from continuing operations (in millions) | $ | 12.2 | $ | (13.2 | ) | $ | 25.4 | |||||
Basic Income (Loss) Per Share | $ | 0.46 | $ | (0.50 | ) | $ | 0.96 | |||||
Diluted Income (Loss) Per Share | $ | 0.38 | $ | (0.50 | ) | $ | 0.88 | |||||
Total Company land and land development spending (in millions) | $ | 105.9 | $ | 129.1 | $ | (23.2 | ) | |||||
Total Company Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 36.9 | $ | 31.6 | 16.8 | % | ||||||
LTM Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 134.4 | $ | 113.3 | 18.6 | % |
Nine Months Ended June 30, | ||||||||||||
2015 | 2014 | Change | ||||||||||
New Home Orders | 4,188 | 3,575 | 17.1 | % | ||||||||
LTM orders per month per community | 2.8 | 2.9 | (3.4 | )% | ||||||||
Cancellation rates | 18.9 | % | 20.6 | % | -170 bps | |||||||
Total Home Closings | 3,114 | 3,256 | (4.4 | )% | ||||||||
Average sales price from closings (in thousands) | $ | 307.9 | $ | 279.3 | 10.2 | % | ||||||
Homebuilding revenue (in millions) | $ | 959.0 | $ | 909.2 | 5.5 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 16.9 | % | 19.5 | % | -260 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 20.2 | % | 22.2 | % | -200 bps | |||||||
Homebuilding gross profit margin, excluding I&A, interest amortized to cost of sales and unexpected warranty costs | 21.6 | % | 22.2 | % | -60 bps | |||||||
Loss from continuing operations before loss on debt extinguishment (in millions) | $ | (7.9 | ) | $ | (5.5 | ) | $ | (2.4 | ) | |||
Loss on debt extinguishment (in millions) | $ | — | $ | (19.9 | ) | $ | 19.9 | |||||
Net loss from continuing operations (in millions) | $ | (7.9 | ) | $ | (25.4 | ) | $ | 17.5 | ||||
Basic and Diluted Loss Per Share | $ | (0.30 | ) | $ | (0.99 | ) | $ | 0.69 | ||||
Total Company land and land development spending (in millions) | $ | 353.5 | $ | 381.5 | $ | (28.0 | ) | |||||
Total Company Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 73.0 | $ | 71.8 | 1.7 | % |
As of June 30, | |||||||||||
2015 | 2014 | Change | |||||||||
Backlog | 2,764 | 2,212 | 25.0 | % | |||||||
Dollar value of backlog at end of period (in millions) | $ | 899.2 | $ | 663.2 | 35.6 | % | |||||
ASP in backlog | $ | 325.3 | $ | 299.8 | 8.5 | % | |||||
Land and lots controlled | 27,183 | 29,783 | (8.7 | )% |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Total revenue | $ | 429,438 | $ | 354,671 | $ | 994,561 | $ | 917,862 | |||||||
Home construction and land sales expenses | 353,081 | 283,857 | 829,073 | 739,295 | |||||||||||
Inventory impairments and option contract abandonments | 249 | 2,010 | 249 | 2,921 | |||||||||||
Gross profit | 76,108 | 68,804 | 165,239 | 175,646 | |||||||||||
Commissions | 17,246 | 14,322 | 40,141 | 37,239 | |||||||||||
General and administrative expenses | 37,669 | 35,994 | 101,837 | 97,032 | |||||||||||
Depreciation and amortization | 3,497 | 3,400 | 8,619 | 9,138 | |||||||||||
Operating income | 17,696 | 15,088 | 14,642 | 32,237 | |||||||||||
Equity in income (loss) of unconsolidated entities | 153 | (81 | ) | 377 | 221 | ||||||||||
Loss on extinguishment of debt | — | (19,764 | ) | — | (19,917 | ) | |||||||||
Other expense, net | (5,763 | ) | (10,205 | ) | (23,670 | ) | (39,689 | ) | |||||||
Income (loss) from continuing operations before income taxes | 12,086 | (14,962 | ) | (8,651 | ) | (27,148 | ) | ||||||||
Benefit from income taxes | (135 | ) | (1,769 | ) | (726 | ) | (1,783 | ) | |||||||
Income (loss) from continuing operations | 12,221 | (13,193 | ) | (7,925 | ) | (25,365 | ) | ||||||||
Income (loss) from discontinued operations, net of tax | (46 | ) | 838 | (4,236 | ) | (99 | ) | ||||||||
Net income (loss) | $ | 12,175 | $ | (12,355 | ) | $ | (12,161 | ) | $ | (25,464 | ) | ||||
Weighted average number of shares: | |||||||||||||||
Basic | 26,482 | 26,421 | 26,473 | 25,582 | |||||||||||
Diluted | 31,800 | 26,421 | 26,473 | 25,582 | |||||||||||
Basic income (loss) per share: | |||||||||||||||
Continuing operations | $ | 0.46 | $ | (0.50 | ) | $ | (0.30 | ) | $ | (0.99 | ) | ||||
Discontinued operations | $ | — | $ | 0.03 | $ | (0.16 | ) | $ | (0.01 | ) | |||||
Total | $ | 0.46 | $ | (0.47 | ) | $ | (0.46 | ) | $ | (1.00 | ) | ||||
Diluted income (loss) per share | |||||||||||||||
Continuing operations | $ | 0.38 | $ | (0.50 | ) | $ | (0.30 | ) | $ | (0.99 | ) | ||||
Discontinued operations | $ | — | $ | 0.03 | $ | (0.16 | ) | $ | (0.01 | ) | |||||
Total | $ | 0.38 | $ | (0.47 | ) | $ | (0.46 | ) | $ | (1.00 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Capitalized interest in inventory, beginning of period | $ | 112,476 | $ | 72,256 | $ | 87,619 | $ | 52,562 | |||||||
Interest incurred | 30,748 | 31,678 | 91,290 | 96,577 | |||||||||||
Interest expense not qualified for capitalization and included as other expense | (5,954 | ) | (10,421 | ) | (23,396 | ) | (41,112 | ) | |||||||
Capitalized interest amortized to house construction and land sales expenses | (13,558 | ) | (9,430 | ) | (31,801 | ) | (23,944 | ) | |||||||
Capitalized interest in inventory, end of period | $ | 123,712 | $ | 84,083 | $ | 123,712 | $ | 84,083 |
June 30, 2015 | September 30, 2014 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 128,752 | $ | 324,154 | |||
Restricted cash | 37,811 | 62,941 | |||||
Accounts receivable (net of allowance of $1,292 and $1,245, respectively) | 44,882 | 34,429 | |||||
Income tax receivable | 262 | 46 | |||||
Inventory: | |||||||
Owned inventory | 1,822,090 | 1,557,496 | |||||
Land not owned under option agreements | — | 3,857 | |||||
Total inventory | 1,822,090 | 1,561,353 | |||||
Investments in unconsolidated entities and marketable securities | 11,407 | 38,341 | |||||
Deferred tax assets, net | 46 | 2,823 | |||||
Property, plant and equipment, net | 22,683 | 18,673 | |||||
Other assets | 22,239 | 23,460 | |||||
Total assets | $ | 2,090,172 | $ | 2,066,220 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Trade accounts payable | $ | 127,063 | $ | 106,237 | |||
Other liabilities | 136,292 | 142,516 | |||||
Obligations related to land not owned under option agreements | — | 2,916 | |||||
Total debt (net of discounts of $3,829 and $4,399, respectively) | 1,554,207 | 1,535,433 | |||||
Total liabilities | $ | 1,817,562 | $ | 1,787,102 | |||
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, 27,449,806 issued and outstanding and 27,173,421 issued and outstanding, respectively) | 27 | 27 | |||||
Paid-in capital | 856,001 | 851,624 | |||||
Accumulated deficit | (583,418 | ) | (571,257 | ) | |||
Accumulated other comprehensive loss | — | (1,276 | ) | ||||
Total stockholders’ equity | 272,610 | 279,118 | |||||
Total liabilities and stockholders’ equity | $ | 2,090,172 | $ | 2,066,220 | |||
Inventory Breakdown | |||||||
Homes under construction | $ | 508,853 | $ | 282,095 | |||
Development projects in progress | 792,662 | 786,768 | |||||
Land held for future development | 270,619 | 301,048 | |||||
Land held for sale | 56,203 | 51,672 | |||||
Capitalized interest | 123,712 | 87,619 | |||||
Model homes | 70,041 | 48,294 | |||||
Land not owned under option agreements | — | 3,857 | |||||
Total inventory | $ | 1,822,090 | $ | 1,561,353 |
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
SELECTED OPERATING DATA | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Closings: | ||||||||||||||||
West region | 473 | 514 | 1,175 | 1,402 | ||||||||||||
East region | 412 | 383 | 986 | 978 | ||||||||||||
Southeast region | 408 | 344 | 953 | 876 | ||||||||||||
Total closings | 1,293 | 1,241 | 3,114 | 3,256 | ||||||||||||
New orders, net of cancellations: | ||||||||||||||||
West region | 691 | 486 | 1,811 | 1,387 | ||||||||||||
East region | 390 | 418 | 1,164 | 1,150 | ||||||||||||
Southeast region | 443 | 386 | 1,213 | 1,038 | ||||||||||||
Total new orders, net | 1,524 | 1,290 | 4,188 | 3,575 | ||||||||||||
Backlog units at end of period: | ||||||||||||||||
West region | 1,193 | 723 | 1,193 | 723 | ||||||||||||
East region | 778 | 833 | 778 | 833 | ||||||||||||
Southeast region | 793 | 656 | 793 | 656 | ||||||||||||
Total backlog units | 2,764 | 2,212 | 2,764 | 2,212 | ||||||||||||
Dollar value of backlog at end of period (in millions) | $ | 899.2 | $ | 663.2 | $ | 899.2 | $ | 663.2 | ||||||||
Homebuilding revenue: | ||||||||||||||||
West region | $ | 143,328 | $ | 136,775 | $ | 338,412 | $ | 376,031 | ||||||||
East region | 148,898 | 127,147 | 347,488 | 316,392 | ||||||||||||
Southeast region | 118,923 | 89,243 | 273,053 | 216,825 | ||||||||||||
Total homebuilding revenue | $ | 411,149 | $ | 353,165 | $ | 958,953 | $ | 909,248 |
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | ||||||||||||||||
Homebuilding | $ | 411,149 | $ | 353,165 | $ | 958,953 | $ | 909,248 | ||||||||
Land sales and other | 18,289 | 1,506 | 35,608 | 8,614 | ||||||||||||
Total | $ | 429,438 | $ | 354,671 | $ | 994,561 | $ | 917,862 | ||||||||
Gross profit: | ||||||||||||||||
Homebuilding | $ | 74,221 | $ | 68,672 | $ | 161,877 | $ | 174,777 | ||||||||
Land sales and other | 1,887 | 132 | 3,362 | 869 | ||||||||||||
Total | $ | 76,108 | $ | 68,804 | $ | 165,239 | $ | 175,646 |
Quarter Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Homebuilding gross profit | $ | 74,221 | 18.1 | % | $ | 68,672 | 19.4 | % | $ | 161,877 | 16.9 | % | $ | 174,777 | 19.2 | % | |||||||
Inventory impairments and lot option abandonments (I&A) | — | 2,010 | — | 2,921 | |||||||||||||||||||
Homebuilding gross profit before I&A | 74,221 | 18.1 | % | 70,682 | 20.0 | % | 161,877 | 16.9 | % | 177,698 | 19.5 | % | |||||||||||
Interest amortized to cost of sales | 13,548 | 9,430 | 31,524 | 23,944 | |||||||||||||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | 87,769 | 21.3 | % | 80,112 | 22.7 | % | 193,401 | 20.2 | % | 201,642 | 22.2 | % | |||||||||||
Unexpected warranty costs related to Florida stucco issues | — | — | 13,582 | — | |||||||||||||||||||
Homebuilding gross profit before I&A, interest amortized to cost of sales and unexpected warranty costs | $ | 87,769 | 21.3 | % | $ | 80,112 | 22.7 | % | $ | 206,983 | 21.6 | % | $ | 201,642 | 22.2 | % |
Three Months Ended June 30, | Nine Months Ended June 30, | LTM Ended June 30, (a) | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Net income (loss) | $ | 12,175 | $ | (12,355 | ) | $ | (12,161 | ) | $ | (25,464 | ) | $ | 47,686 | $ | (13,516 | ) | ||||||||
Benefit from income taxes | (137 | ) | (1,661 | ) | (731 | ) | (1,665 | ) | (40,868 | ) | (4,252 | ) | ||||||||||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired and interest expense not qualified for capitalization | 19,512 | 19,851 | 55,197 | 65,056 | 81,989 | 91,228 | ||||||||||||||||||
Depreciation and amortization and stock compensation amortization | 5,128 | 4,013 | 13,165 | 11,017 | 18,014 | 15,623 | ||||||||||||||||||
Inventory impairments and option contract abandonments | 249 | 2,010 | 249 | 2,921 | 5,390 | 3,325 | ||||||||||||||||||
Loss on debt extinguishment | — | 19,764 | — | 19,917 | — | 20,915 | ||||||||||||||||||
Adjusted EBITDA | $ | 36,927 | $ | 31,622 | $ | 55,719 | $ | 71,782 | $ | 112,211 | $ | 113,323 | ||||||||||||
Unexpected warranty costs related to stucco issues in Florida | — | — | 13,582 | — | 17,872 | — | ||||||||||||||||||
Unexpected warranty costs related to water intrusion issues in New Jersey | — | — | — | — | 648 | — | ||||||||||||||||||
Litigation settlement in discontinued operations | — | — | 3,660 | — | 3,660 | — | ||||||||||||||||||
Adjusted EBITDA excluding unexpected warranty costs and a litigation settlement in discontinued operations | $ | 36,927 | $ | 31,622 | $ | 72,961 | $ | 71,782 | $ | 134,391 | $ | 113,323 |