Document Exhibit 99.1
PRESS RELEASE
Beazer Homes Reports Strong First Quarter Fiscal 2021 Results
ATLANTA, January 28, 2021 - Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three months ended December 31, 2020.
“We finished the first quarter of our fiscal year with very strong operational and financial results,” said Allan P. Merrill, the company’s Chairman and Chief Executive Officer. “We generated a significantly higher sales pace relative to the same quarter last year, more than offsetting a temporary reduction in our community count. At the same time, we increased the number of lots we own or control as we position for enhanced growth in the coming years. On the financial side, profitability expanded meaningfully with notable improvements in both gross margin and overhead cost efficiency leading to higher Adjusted EBITDA and Net Income.”
Commenting on Fiscal 2021 full year expectations, Mr. Merrill said, “With the strong results we generated in the first quarter, a healthy demand environment and a dollar value of backlog of sold homes up nearly 60% compared to this time last year, we have confidence that we will generate substantial growth in book value while continuing to reduce leverage.”
Looking beyond Fiscal 2021, Mr. Merrill concluded, “Our pivot to growth this year, supported by our differentiated and comprehensive ESG program, has positioned us to create durable and growing value for our customers, employees, partners and shareholders in the years ahead.”
Beazer Homes Fiscal First Quarter 2021 Highlights and Comparison to Fiscal First Quarter 2020
•Net income from continuing operations of $12.0 million, compared to net income from continuing operations of $2.8 million in fiscal first quarter 2020
•Adjusted EBITDA of $43.6 million, up 48.5%
•Homebuilding revenue of $424.2 million, up 1.6% on a 1.4% increase in average selling price to $380.8 thousand and a 0.2% increase in home closings to 1,114
•Homebuilding gross margin was 17.6%, up 250 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 22.1%, up 230 basis points
•SG&A as a percentage of total revenue was 12.7%, down 60 basis points year-over-year
•Net new orders of 1,442, up 15.3% on a 42.4% increase in orders/community/month to 3.5 and a 19.0% decrease in average community count to 136
•Dollar value of backlog of $1,162.4 million, up 58.8%
•Unrestricted cash at quarter end was $244.6 million; total liquidity was $494.6 million
The following provides additional details on the Company's performance during the fiscal first quarter 2021:
Profitability. Net income from continuing operations was $12.0 million, generating diluted earnings per share of $0.40. First quarter adjusted EBITDA of $43.6 million was up $14.2 million year-over-year. The increase in profitability was primarily driven by higher homebuilding gross margin and improved SG&A leverage.
Orders. Net new orders for the first quarter increased to 1,442, up 15.3% from the prior year, achieving the highest first quarter level in more than a decade. The increase in net new orders was driven by a 42.4% increase in the absorption rate to 3.5 sales per community per month, up from 2.5 in the previous year, partially offset by a 19.0% decrease in average community count to 136. The cancellation rate for the quarter was 12.3%, down 260 basis points year-over-year.
Backlog. The dollar value of homes in backlog as of December 31, 2020 increased 58.8% to $1,162.4 million, representing 2,837 homes, compared to $732.1 million, representing 1,847 homes, at the same time last year. The average selling price of homes in backlog was $409.7 thousand, up 3.4% year-over-year.
Homebuilding Revenue. First quarter homebuilding revenue was $424.2 million, up 1.6% year-over-year. The increase in homebuilding revenue was driven by a 1.4% increase in the average selling price to $380.8 thousand and a 0.2% increase in home closings to 1,114 homes.
Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 22.1% for the first quarter, up 230 basis points year-over-year, driven primarily by lower sales incentives and pricing increases. Gross margin was up across each of our geographic segments.
SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 12.7% for the quarter, down 60 basis points year-over-year as a result of our continued focus on overhead cost management.
Liquidity. At the close of the first quarter, the Company had approximately $494.6 million of available liquidity, including $244.6 million of unrestricted cash and $250.0 million remaining capacity on its secured revolving credit facility.
Commitment to Net Zero Energy Ready
During the quarter, we took an important step forward in our leadership position around energy efficiency. In December, we became the first national builder to publicly commit to ensuring every home we build is Net Zero Energy Ready by the end of 2025. We calculate the energy performance of our homes using the industry standard Home Energy Rating System (HERS), which measures energy efficiency on an easy to understand scale: the lower the number, the more energy efficient the home. Net Zero Energy Ready means that every home we build will have a gross HERS index score (before any benefit of renewable energy production) of 45 or less, and homeowners will be able to achieve net zero energy by attaching a properly sized renewable energy system. Reaching our Net Zero Energy Ready target represents a significant improvement in energy efficiency and will lead to a reduction in greenhouse gas emissions.
Summary results for the three months ended December 31, 2020 are as follows:
| | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, |
| 2020 | | 2019 | | Change* |
New home orders, net of cancellations | 1,442 | | | 1,251 | | | 15.3 | % |
Orders per community per month | 3.5 | | | 2.5 | | | 42.4 | % |
Average active community count | 136 | | | 168 | | | (19.0) | % |
Actual community count at quarter-end | 134 | | | 166 | | | (19.3) | % |
Cancellation rates | 12.3 | % | | 14.9 | % | | -260 bps |
| | | | | |
Total home closings | 1,114 | | | 1,112 | | | 0.2 | % |
Average selling price (ASP) from closings (in thousands) | $ | 380.8 | | | $ | 375.4 | | | 1.4 | % |
Homebuilding revenue (in millions) | $ | 424.2 | | | $ | 417.4 | | | 1.6 | % |
Homebuilding gross margin | 17.6 | % | | 15.1 | % | | 250 bps |
Homebuilding gross margin, excluding impairments and abandonments (I&A) | 17.8 | % | | 15.1 | % | | 270 bps |
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales | 22.1 | % | | 19.8 | % | | 230 bps |
| | | | | |
| | | | | |
Income from continuing operations before income taxes (in millions) | $ | 16.2 | | | $ | 2.6 | | | $ | 13.6 | |
Expense (benefit) from income taxes (in millions) | $ | 4.1 | | | $ | (0.2) | | | $ | 4.3 | |
Income from continuing operations (in millions) | $ | 12.0 | | | $ | 2.8 | | | $ | 9.2 | |
Basic income per share from continuing operations | $ | 0.40 | | | $ | 0.09 | | | $ | 0.31 | |
Diluted income per share from continuing operations | $ | 0.40 | | | $ | 0.09 | | | $ | 0.31 | |
| | | | | |
Income from continuing operations before income taxes (in millions) | $ | 16.2 | | | $ | 2.6 | | | $ | 13.6 | |
| | | | | |
Inventory impairments and abandonments (in millions) | $ | (0.5) | | | $ | — | | | $ | (0.5) | |
| | | | | |
Income from continuing operations excluding inventory impairments and abandonments before income taxes (in millions) | $ | 16.7 | | | $ | 2.6 | | | $ | 14.1 | |
Income from continuing operations excluding inventory impairments and abandonments after income taxes (in millions)+ | $ | 12.6 | | | $ | 2.8 | | | $ | 9.8 | |
| | | | | |
Net income | $ | 12.0 | | | $ | 2.7 | | | $ | 9.3 | |
| | | | | |
Land and land development spending (in millions) | $ | 109.6 | | | $ | 146.0 | | | $ | (36.3) | |
| | | | | |
Adjusted EBITDA (in millions) | $ | 43.6 | | | $ | 29.4 | | | $ | 14.2 | |
LTM Adjusted EBITDA (in millions) | $ | 218.6 | | | $ | 182.7 | | | $ | 35.9 | |
* Change and totals are calculated using unrounded numbers.
+ For the three months ended December 31, 2020, inventory impairments and abandonments were tax-effected at the effective tax rate of 24.7%. For the three months ended December 31, 2019, there were no inventory impairments and abandonments.
"LTM" indicates amounts for the trailing 12 months.
| | | | | | | | | | | | | | | | | |
| As of December 31, |
| 2020 | | 2019 | | Change |
Backlog units | 2,837 | | | 1,847 | | | 53.6 | % |
Dollar value of backlog (in millions) | $ | 1,162.4 | | | $ | 732.1 | | | 58.8 | % |
ASP in backlog (in thousands) | $ | 409.7 | | | $ | 396.4 | | | 3.4 | % |
Land and lots controlled | 18,801 | | | 19,742 | | | (4.8) | % |
Conference Call
The Company will hold a conference call on January 28, 2021 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the pass code “8571348". A replay of the conference call will be available, until 10:00 PM ET on February 5, 2021 at 800-879-6115 (for international callers, dial 402-220-4742) with pass code “3740.”
About Beazer Homes
Headquartered in Atlanta, Beazer Homes (NYSE: BZH) is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in – saving you money every month. With Beazer's Choice Plans™, you can personalize your primary living areas – giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, which will save you thousands over the life of your loan.
We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on Facebook, Instagram and Twitter.
This press release contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things: (i) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (ii) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market; (iii) the potential negative impact of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and below, may include a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home, an inability to sell and build homes in a typical manner or at all, increased costs or decreased supply of building materials, including lumber, or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations, and recognizing charges in future periods, which may be material, for goodwill impairments, inventory impairments and/or land option contract abandonments; (iv) shortages of or increased prices for labor, land or raw materials used in housing production, and the level of quality and craftsmanship provided by our subcontractors; (v) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select California assets during the second quarter of fiscal 2019; (vi) factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; (vii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; (viii) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (ix) terrorist acts, protests and civil unrest, political uncertainty, natural disasters, acts of war or other factors over which the Company has little or no control; (x) estimates related to homes to be delivered in the future (backlog) are imprecise, as they are subject to various cancellation risks that cannot be fully controlled; (xi) increases in mortgage interest rates, increased disruption in the availability of mortgage financing, changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes or an increased number of foreclosures; (xii) increased competition or delays in reacting to changing consumer preferences in home design; (xiii) natural disasters or other related events that could result in delays in land development or home construction,
increase our costs or decrease demand in the impacted areas; (xiv) the potential recoverability of our deferred tax assets; (xv) potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment; (xvi) the results of litigation or government proceedings and fulfillment of any related obligations; (xvii) the impact of construction defect and home warranty claims; (xviii) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xix) the impact of information technology failures, cybersecurity issues or data security breaches; or (xx) the impact on homebuilding in key markets of governmental regulations limiting the availability of water.
Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time-to-time, and it is not possible to predict all such factors.
CONTACT: Beazer Homes USA, Inc.
David I. Goldberg
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com
-Tables Follow-
BEAZER HOMES USA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| | | | | | | | | | | | | | | |
| Three Months Ended | | |
| December 31, | | |
in thousands (except per share data) | 2020 | | 2019 | | | | |
Total revenue | $ | 428,539 | | | $ | 417,804 | | | | | |
Home construction and land sales expenses | 352,781 | | | 354,667 | | | | | |
Inventory impairments and abandonments | 465 | | | — | | | | | |
Gross profit | 75,293 | | | 63,137 | | | | | |
Commissions | 16,507 | | | 16,065 | | | | | |
General and administrative expenses | 37,976 | | | 39,699 | | | | | |
Depreciation and amortization | 3,122 | | | 3,427 | | | | | |
Operating income | 17,688 | | | 3,946 | | | | | |
Equity in loss of unconsolidated entities | (75) | | | (13) | | | | | |
| | | | | | | |
Other expense, net | (1,452) | | | (1,340) | | | | | |
Income from continuing operations before income taxes | 16,161 | | | 2,593 | | | | | |
Expense (benefit) from income taxes | 4,125 | | | (211) | | | | | |
Income from continuing operations | 12,036 | | | 2,804 | | | | | |
Loss from discontinued operations, net of tax | (39) | | | (58) | | | | | |
Net income | $ | 11,997 | | | $ | 2,746 | | | | | |
Weighted average number of shares: | | | | | | | |
Basic | 29,771 | | | 29,746 | | | | | |
Diluted | 30,086 | | | 30,138 | | | | | |
| | | | | | | |
Basic income (loss) per share: | | | | | | | |
Continuing operations | $ | 0.40 | | | $ | 0.09 | | | | | |
Discontinued operations | — | | | — | | | | | |
Total | $ | 0.40 | | | $ | 0.09 | | | | | |
Diluted income (loss) per share: | | | | | | | |
Continuing operations | $ | 0.40 | | | $ | 0.09 | | | | | |
Discontinued operations | — | | | — | | | | | |
Total | $ | 0.40 | | | $ | 0.09 | | | | | |
| | | | | | | | | | | | | | | |
| Three Months Ended | | |
| December 31, | | |
Capitalized Interest in Inventory | 2020 | | 2019 | | | | |
Capitalized interest in inventory, beginning of period | $ | 119,659 | | | $ | 136,565 | | | | | |
Interest incurred | 19,902 | | | 21,556 | | | | | |
| | | | | | | |
Interest expense not qualified for capitalization and included as other expense | (1,600) | | | (1,442) | | | | | |
Capitalized interest amortized to home construction and land sales expenses | (18,813) | | | (19,669) | | | | | |
Capitalized interest in inventory, end of period | $ | 119,148 | | | $ | 137,010 | | | | | |
BEAZER HOMES USA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | | | | |
in thousands (except share and per share data) | December 31, 2020 | | September 30, 2020 |
ASSETS | | | |
Cash and cash equivalents | $ | 244,628 | | | $ | 327,693 | |
Restricted cash | 17,420 | | | 14,835 | |
Accounts receivable (net of allowance of $348 and $358, respectively) | 18,599 | | | 19,817 | |
Income tax receivable | 9,203 | | | 9,252 | |
| | | |
Owned inventory | 1,413,990 | | | 1,350,738 | |
| | | |
| | | |
Investments in unconsolidated entities | 3,928 | | | 4,003 | |
Deferred tax assets, net | 221,168 | | | 225,143 | |
Property and equipment, net | 22,111 | | | 22,280 | |
Operating lease right-of-use assets | 13,592 | | | 13,103 | |
Goodwill | 11,376 | | | 11,376 | |
Other assets | 8,459 | | | 9,240 | |
Total assets | $ | 1,984,474 | | | $ | 2,007,480 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
Trade accounts payable | $ | 120,863 | | | $ | 132,192 | |
Operating lease liabilities | 15,560 | | | 15,333 | |
Other liabilities | 110,264 | | | 135,983 | |
| | | |
Total debt (net of debt issuance costs of $10,483 and $10,891, respectively) | 1,131,725 | | | 1,130,801 | |
Total liabilities | 1,378,412 | | | 1,414,309 | |
Stockholders’ equity: | | | |
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued) | — | | | — | |
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,253,816 issued and outstanding and 31,012,326 issued and outstanding, respectively) | 31 | | | 31 | |
Paid-in capital | 857,360 | | | 856,466 | |
Accumulated deficit | (251,329) | | | (263,326) | |
| | | |
Total stockholders’ equity | 606,062 | | | 593,171 | |
Total liabilities and stockholders’ equity | $ | 1,984,474 | | | $ | 2,007,480 | |
| | | |
Inventory Breakdown | | | |
Homes under construction | $ | 625,296 | | | $ | 525,021 | |
Development projects in progress | 563,285 | | | 589,763 | |
Land held for future development | 23,068 | | | 28,531 | |
Land held for sale | 10,045 | | | 12,622 | |
Capitalized interest | 119,148 | | | 119,659 | |
Model homes | 73,148 | | | 75,142 | |
| | | |
Total owned inventory | $ | 1,413,990 | | | $ | 1,350,738 | |
BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
| | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | |
SELECTED OPERATING DATA | 2020 | | 2019 | | | | |
Closings: | | | | | | | |
West region | 642 | | | 694 | | | | | |
East region | 223 | | | 192 | | | | | |
Southeast region | 249 | | | 226 | | | | | |
Total closings | 1,114 | | | 1,112 | | | | | |
| | | | | | | |
New orders, net of cancellations: | | | | | | | |
West region | 782 | | | 737 | | | | | |
East region | 320 | | | 233 | | | | | |
Southeast region | 340 | | | 281 | | | | | |
Total new orders, net | 1,442 | | | 1,251 | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | As of December 31, |
Backlog units at end of period: | | | | | 2020 | | 2019 |
West region | | | | | 1,505 | | | 1,025 | |
East region | | | | | 721 | | | 382 | |
Southeast region | | | | | 611 | | | 440 | |
Total backlog units | | | | | 2,837 | | | 1,847 | |
Dollar value of backlog at end of period (in millions) | | | | | $ | 1,162.4 | | | $ | 732.1 | |
| | | | | | | | | | | | | | | |
| | | | | | | |
in thousands | Three Months Ended December 31, | | |
SUPPLEMENTAL FINANCIAL DATA | 2020 | | 2019 | | | | |
Homebuilding revenue: | | | | | | | |
West region | $ | 232,940 | | | $ | 254,398 | | | | | |
East region | 97,964 | | | 77,645 | | | | | |
Southeast region | 93,325 | | | 85,356 | | | | | |
Total homebuilding revenue | $ | 424,229 | | | $ | 417,399 | | | | | |
| | | | | | | |
Revenue: | | | | | | | |
Homebuilding | $ | 424,229 | | | $ | 417,399 | | | | | |
Land sales and other | 4,310 | | | 405 | | | | | |
Total revenue | $ | 428,539 | | | $ | 417,804 | | | | | |
| | | | | | | |
Gross profit: | | | | | | | |
Homebuilding | $ | 74,837 | | | $ | 63,108 | | | | | |
Land sales and other | 456 | | | 29 | | | | | |
Total gross profit | $ | 75,293 | | | $ | 63,137 | | | | | |
Reconciliation of homebuilding gross profit and the related gross margin before impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit and gross margin, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt.
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | |
in thousands | 2020 | | 2019 | | | | |
Homebuilding gross profit/margin | $ | 74,837 | | 17.6 | % | | $ | 63,108 | | 15.1 | % | | | | | | |
Inventory impairments and abandonments (I&A) | 465 | | | | — | | | | | | | | |
Homebuilding gross profit/margin before I&A | 75,302 | | 17.8 | % | | 63,108 | | 15.1 | % | | | | | | |
Interest amortized to cost of sales | 18,560 | | | | 19,669 | | | | | | | | |
Homebuilding gross profit/margin before I&A and interest amortized to cost of sales | $ | 93,862 | | 22.1 | % | | $ | 82,777 | | 19.8 | % | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Reconciliation of Adjusted EBITDA to total company net income (loss), the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective capitalization, tax position and level of impairments. These EBITDA measures should not be considered alternatives to net income (loss) determined in accordance with GAAP as an indicator of operating performance.
The reconciliation of Adjusted EBITDA to total company net income (loss) below differs from prior year, as it reclassifies stock-based compensation expense from an adjustment within EBITDA to an adjustment within Adjusted EBITDA in order to accurately present EBITDA per its definition.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | | | LTM Ended |
in thousands | 2020 | | 2019 | | | | | | 2020 | | 2019 |
Net income (loss) | $ | 11,997 | | | $ | 2,746 | | | | | | | $ | 61,477 | | | $ | (84,085) | |
Expense (benefit) from income taxes | 4,114 | | | (228) | | | | | | | 22,006 | | | (33,549) | |
Interest amortized to home construction and land sales expenses and capitalized interest impaired | 18,813 | | | 19,669 | | | | | | | 94,806 | | | 111,172 | |
Interest expense not qualified for capitalization | 1,600 | | | 1,442 | | | | | | | 8,626 | | | 4,309 | |
EBIT | 36,524 | | | 23,629 | | | | | | | 186,915 | | | (2,153) | |
Depreciation and amortization | 3,122 | | | 3,427 | | | | | | | 15,335 | | | 15,416 | |
EBITDA | 39,646 | | | 27,056 | | | | | | | 202,250 | | | 13,263 | |
Stock-based compensation expense | 3,511 | | | 2,311 | | | | | | | 11,236 | | | 10,723 | |
Loss on extinguishment of debt | — | | | — | | | | | | | — | | | 24,920 | |
Inventory impairments and abandonments (b) | 465 | | | — | | | | | | | 2,576 | | | 133,819 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Restructuring and severance expenses | (10) | | | — | | | | | | | 1,307 | | | — | |
Litigation settlement in discontinued operations | — | | | — | | | | | | | 1,260 | | | — | |
Adjusted EBITDA | $ | 43,612 | | | $ | 29,367 | | | | | | | $ | 218,629 | | | $ | 182,725 | |
(a) “LTM” indicates amounts for the trailing 12 months.
(b) In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled “Interest amortized to home construction and land sales expenses and capitalized interest impaired.”