Supplemental Guarantor Information

3 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

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, 2019

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	35,258	$	6,007	$	12	$	—		$	41,277
Restricted cash	17,847		912		—		—			18,759
Accounts receivable (net of allowance of $313)	—		19,439		—		—			19,439
Income tax receivable	4,612		—		—		—			4,612
Owned inventory	—		1,574,280		—		—			1,574,280
Investments in unconsolidated entities	773		3,157		—		—			3,930
Deferred tax assets, net	247,382		—		—		—			247,382
Property and equipment, net	—		26,623		—		—			26,623
Operating lease right-of-use assets	—		12,975		—		—			12,975
Investments in subsidiaries	711,246		—		—		(711,246		)	—
Intercompany	748,246		—		1,676		(749,922		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	1,098		6,353		—		—			7,451
Total assets	$	1,766,462	$	1,661,122	$	1,688	$	(1,461,168	)	$	1,968,104
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	110,153	$	—	$	—		$	110,153
Operating lease liabilities	—		15,158		$	—	$	—		$	15,158
Other liabilities	17,444		77,991		16		—			95,451
Intercompany	1,676		748,246		—		(749,922		)	—
Total debt (net of premium and debt issuance costs)	1,208,062		—		—		—			1,208,062
Total liabilities	1,227,182		951,548		16		(749,922		)	1,428,824
Stockholders’ equity	539,280		709,574		1,672		(711,246		)	539,280
Total liabilities and stockholders’ equity	$	1,766,462	$	1,661,122	$	1,688	$	(1,461,168	)	$	1,968,104

Beazer Homes USA, Inc.

Condensed Consolidating Balance Sheet Information

September 30, 2019

(Unaudited)



in thousands	Beazer Homes USA, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated Beazer Homes USA, Inc.
ASSETS
Cash and cash equivalents	$	70,617	$	36,115	$	9	$	—		$	106,741
Restricted cash	14,847		1,206		—		—			16,053
Accounts receivable (net of allowance of $304)	—		26,394		1		—			26,395
Income tax receivable	4,935		—		—		—			4,935
Owned inventory	—		1,504,248		—		—			1,504,248
Investments in unconsolidated entities	773		3,189		—		—			3,962
Deferred tax assets, net	246,957		—		—		—			246,957
Property and equipment, net	—		27,421		—		—			27,421
Investments in subsidiaries	636,791		—		—		(636,791		)	—
Intercompany	753,769		—		1,680		(755,449		)	—
Goodwill	—		11,376		—		—			11,376
Other assets	1,235		8,317		4		—			9,556
Total assets	$	1,729,924	$	1,618,266	$	1,694	$	(1,392,240	)	$	1,957,644
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable	$	—	$	131,152	$	—	$	—		$	131,152
Other liabilities	12,335		97,081		13		—			109,429
Intercompany	1,680		753,769		—		(755,449		)	—
Total debt (net of premium and debt issuance costs)	1,177,155		1,154		—		—			1,178,309
Total liabilities	1,191,170		983,156		13		(755,449		)	1,418,890
Stockholders’ equity	538,754		635,110		1,681		(636,791		)	538,754
Total liabilities and stockholders’ equity	$	1,729,924	$	1,618,266	$	1,694	$	(1,392,240	)	$	1,957,644

Beazer Homes USA, Inc.

Condensed 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, 2019
Total revenue	$	—		$	417,804		$	—		$	—		$	417,804
Home construction and land sales expenses	19,669			334,998			—			—			354,667
Gross (loss) profit	(19,669		)	82,806			—			—			63,137
Commissions	—			16,065			—			—			16,065
General and administrative expenses	—			39,699			—			—			39,699
Depreciation and amortization	—			3,427			—			—			3,427
Operating (loss) income	(19,669		)	23,615			—			—			3,946
Equity in income of unconsolidated entities	—			(13		)	—			—			(13		)
Other (expense) income, net	(1,442		)	102			—			—			(1,340		)
(Loss) income from continuing operations before income taxes	(21,111		)	23,704			—			—			2,593
(Benefit) expense from income taxes	(1,900		)	1,689			—			—			(211		)
Equity in income of subsidiaries	22,015			—			—			(22,015		)	—
Income from continuing operations	2,804			22,015			—			(22,015		)	2,804
Loss from discontinued operations, net of tax	—			(49		)	(9		)	—			(58		)
Equity in loss of subsidiaries from discontinued operations	(58		)	—			—			58			—
Net income (loss)	$	2,746		$	21,966		$	(9	)	$	(21,957	)	$	2,746

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 income 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

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, 2019
Net cash used in operating activities	$	(35,926	)	$	(48,490	)	$	(114	)	$	—		$	(84,530	)
Cash flows from investing activities:
Capital expenditures	—			(2,632		)	—			—			(2,632		)
Proceeds from sale of fixed assets	—			66			—			—			66
Return of capital from unconsolidated entities	—			19			—			—			19
Advances to/from subsidiaries	(21,906		)	—			117			21,789			—
Net cash (used in) provided by investing activities	(21,906		)	(2,547		)	117			21,789			(2,547		)
Cash flows from financing activities:
Repayment of debt	—			(1,150		)	—			—			(1,150		)
Repayment of borrowings from credit facility	(95,000		)	—			—			—			(95,000		)
Borrowings from credit facility	125,000			—			—			—			125,000
Tax payments for stock-based compensation awards	(2,646		)	—			—			—			(2,646		)
Stock option exercises and other financing activities	(1,885		)	—			—			—			(1,885		)
Advances to/from subsidiaries	—			21,789			—			(21,789		)	—
Net cash provided by financing activities	25,469			20,639			—			(21,789		)	24,319
Decrease in cash, cash equivalents, and restricted cash	(32,363		)	(30,398		)	3			—			(62,758		)
Cash, cash equivalents, and restricted cash at beginning of period	85,464			37,321			9			—			122,794
Cash, cash equivalents, and restricted cash at end of period	$	53,101		$	6,923		$	12		$	—		$	60,036

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		)
Proceeds from issuance of new debt	—			—			—			—			—
Borrowings from credit facility	100,000			—			—			—			100,000
Repurchase of common stock	(16,500		)	—			—			—			(16,500		)
Repayment of borrowings from credit facility	(75,000		)	—			—			—			(75,000		)
Debt issuance costs	(400		)	—			—			—			(400		)
Tax payments for stock-based compensation awards	(1,850		)	—			—			—			(1,850		)
Stock option exercises and other financing activities	7			—			—			—			7
Advances to/from subsidiaries	—			(21,204		)	—			21,204			—
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