Supplemental Guarantor Information

3 Months Ended

Dec. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor information

Supplemental Guarantor Information

As discussed in Note 7, the Company's obligations to pay principal, premium, if any, and interest under certain debt agreements are guaranteed on a joint and several basis by substantially all of the Company's subsidiaries. Some of the immaterial subsidiaries do not guarantee the Senior Notes or the Facility. The guarantees are full and unconditional and the guarantor subsidiaries are 100% owned by Beazer Homes USA, Inc. The following unaudited financial information presents the line items of the Company's unaudited condensed consolidated financial statements separated by amounts related to the parent issuer, guarantor subsidiaries, non-guarantor subsidiaries, and consolidating adjustments as of or for the periods presented.

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

December 31, 2018

(Unaudited)

in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	82,115	$	2,267		$	17	$	—		$	84,399
Restricted cash	11,897		740			—		—			12,637
Accounts receivable (net of allowance of $378)	—		19,349			—		—			19,349
Owned inventory	—		1,722,120			—		—			1,722,120
Investments in unconsolidated entities	773		2,877			—		—			3,650
Deferred tax assets, net	218,025		—			—		—			218,025
Property and equipment, net	—		24,408			—		—			24,408
Investments in subsidiaries	636,800		—			—		(636,800		)	—
Intercompany	963,614		(6,858		)	1,686		(958,442		)	—
Goodwill	—		10,605			—		—			10,605
Other assets	982		7,215			—		—			8,197
Total assets	$	1,914,206	$	1,782,723		$	1,703	$	(1,595,242	)	$	2,103,390
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	99,864		$	—	$	—		$	99,864
Other liabilities	24,261		88,359			13		—			112,633
Intercompany	1,686		956,756			—		(958,442		)	—
Total debt (net of premium and debt issuance costs)	1,253,150		2,634			—		—			1,255,784
Total liabilities	1,279,097		1,147,613			13		(958,442		)	1,468,281
Stockholders’ equity	635,109		635,110			1,690		(636,800		)	635,109
Total liabilities and stockholders’ equity	$	1,914,206	$	1,782,723		$	1,703	$	(1,595,242	)	$	2,103,390

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2018

(Unaudited)

in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	93,875	$	45,355	$	575	$	—		$	139,805
Restricted cash	10,921		2,522		—		—			13,443
Accounts receivable (net of allowance of $378)	—		24,647		—		—			24,647
Owned inventory	—		1,692,284		—		—			1,692,284
Investments in unconsolidated entities	773		3,262		—		—			4,035
Deferred tax assets, net	213,955		—		—		—			213,955
Property and equipment, net	—		20,843		—		—			20,843
Investments in subsidiaries	645,086		—		—		(645,086		)	—
Intercompany	922,525		—		2,304		(924,829		)	—
Goodwill	—		9,751		—		—			9,751
Other assets	694		8,626		19		—			9,339
Total assets	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	126,432	$	—	$	—		$	126,432
Other liabilities	14,357		111,906		126		—			126,389
Intercompany	2,304		922,525		—		(924,829		)	—
Total debt (net of premium and debt issuance costs)	1,227,141		4,113		—		—			1,231,254
Total liabilities	1,243,802		1,164,976		126		(924,829		)	1,484,075
Stockholders’ equity	644,027		642,314		2,772		(645,086		)	644,027
Total liabilities and stockholders’ equity	$	1,887,829	$	1,807,290	$	2,898	$	(1,569,915	)	$	2,128,102

Beazer Homes USA, Inc.

Consolidating Statements of Operations

(Unaudited)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Total revenue	$	—		$	402,040		$	115		$	(115	)	$	402,040
Home construction and land sales expenses	17,323			323,170			—			(115		)	340,378
Inventory impairments and abandonments	115			892			—			—			1,007
Gross (loss) profit	(17,438		)	77,978			115			—			60,655
Commissions	—			15,737			—			—			15,737
General and administrative expenses	—			38,646			(4		)	—			38,642
Depreciation and amortization	—			2,770			—			—			2,770
Operating (loss) income	(17,438		)	20,825			119			—			3,506
Equity in loss of unconsolidated entities	—			(64		)	—			—			(64		)
Other (expense) income, net	(242		)	204			(4		)	—			(42		)
(Loss) income from continuing operations before income taxes	(17,680		)	20,965			115			—			3,400
Expense (benefit) from income taxes	20,385			(24,336		)	29			—			(3,922		)
Equity in income of subsidiaries	45,387			—			—			(45,387		)	—
Income from continuing operations	7,322			45,301			86			(45,387		)	7,322
Loss from discontinued operations, net of tax	—			(7		)	(4		)	—			(11		)
Equity in loss of subsidiaries from discontinued operations	(11		)	—			—			11			—
Net income	$	7,311		$	45,294		$	82		$	(45,376	)	$	7,311
in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2017
Total revenue	$	—		$	372,489		$	14		$	(14	)	$	372,489
Home construction and land sales expenses	16,468			295,206			—			(14		)	311,660
Gross (loss) profit	(16,468		)	77,283			14			—			60,829
Commissions	—			14,356			—			—			14,356
General and administrative expenses	—			37,244			41			—			37,285
Depreciation and amortization	—			2,507			—			—			2,507
Operating (loss) income	(16,468		)	23,176			(27		)	—			6,681
Equity in loss of unconsolidated entities	—			(101		)	—			—			(101		)
Loss on extinguishment of debt	(25,904		)	—			—			—			(25,904		)
Other (expense) income, net	(3,435		)	296			(6		)	—			(3,145		)
(Loss) income from continuing operations before income taxes	(45,807		)	23,371			(33		)	—			(22,469		)
(Benefit) expense from income taxes	(12,185		)	120,303			(12		)	—			108,106
Equity in loss of subsidiaries	(96,953		)	—			—			96,953			—
Loss from continuing operations	(130,575		)	(96,932		)	(21		)	96,953			(130,575		)
Loss from discontinued operations	—			(369		)	(3		)	—			(372		)
Equity in loss of subsidiaries from discontinued operations	(372		)	—			—			372			—
Net loss	$	(130,947	)	$	(97,301	)	$	(24	)	$	97,325		$	(130,947	)

Beazer Homes USA, Inc.

Condensed Consolidating Statements of Cash Flow Information

(Unaudited)

in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2018
Net cash used in operating activities	$	(31,908	)	$	(22,756	)	$	(26	)	$	—		$	(54,690	)
Cash flows from investing activities:
Capital expenditures	—			(6,354		)	—			—			(6,354		)
Proceeds from sale of fixed assets	—			54			—			—			54
Return of capital from unconsolidated entities	532			—			(532		)	—			—
Advances to/from subsidiaries	21,204			—			—			(21,204		)	—
Net cash provided by (used in) investing activities	21,736			(6,300		)	(532		)	(21,204		)	(6,300		)
Cash flows from financing activities:
Repayment of debt	(11		)	(1,468		)	—			—			(1,479		)
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Borrowings from credit facility	100,000			—			—			—			100,000
Debt issuance costs	(400		)	—			—			—			(400		)
Repurchase of common stock	(16,500		)	—			—			—			(16,500		)
Tax payments for stock-based compensation awards	(1,850		)	—			—			—			(1,850		)
Advances to/from subsidiaries	—			(21,204		)	—			21,204			—
Other financing activities	7			—			—			—			7
Net cash provided by (used in) financing activities	6,246			(22,672		)	—			21,204			4,778
Decrease in cash, cash equivalents, and restricted cash	(3,926		)	(51,728		)	(558		)	—			(56,212		)
Cash, cash equivalents, and restricted cash at beginning of period	104,796			47,877			575			—			153,248
Cash, cash equivalents, and restricted cash at end of period	$	100,870		$	(3,851	)	$	17		$	—		$	97,036
in thousands	Beazer Homes USA, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
Three Months Ended December 31, 2017
Net cash provided by (used in) operating activities	$	91,465		$	(193,721	)	$	32		$	—		$	(102,224	)
Cash flows from investing activities:
Capital expenditures	—			(3,702		)	—			—			(3,702		)
Proceeds from sale of fixed assets	—			84			—			—			84
Investments in unconsolidated entities	—			(421		)	—			—			(421		)
Advances to/from subsidiaries	(187,451		)	—			(26		)	187,477			—
Net cash used in investing activities	(187,451		)	(4,039		)	(26		)	187,477			(4,039		)
Cash flows from financing activities:
Repayment of debt	(400,012		)	(1,469		)	—			—			(401,481		)
Proceeds from issuance of new debt	400,000			—			—			—			400,000
Debt issuance costs	(5,649		)	—			—			—			(5,649		)
Tax payments for stock-based compensation awards	(1,322		)	—			—			—			(1,322		)
Advances to/from subsidiaries	—			186,563			—			(186,563		)	—
Other financing activities	—			—			—			—			—
Net cash (used in) provided by financing activities	(6,983		)	185,094			—			(186,563		)	(8,452		)
(Decrease) increase in cash, cash equivalents, and restricted cash	(102,969		)	(12,666		)	6			914			(114,715		)
Cash, cash equivalents, and restricted cash at beginning of period	294,192			16,854			724			(7,161		)	304,609
Cash, cash equivalents, and restricted cash at end of period	$	191,223		$	4,188		$	730		$	(6,247	)	$	189,894