DELAWARE (State or other jurisdiction of incorporation) |
001-12822 (Commission File Number) |
54-2086934 (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 May 10, 2011. |
BEAZER HOMES USA, INC. |
||||
Date: May 10, 2011 | By: | /s/ Allan P. Merrill | ||
Allan P. Merrill | ||||
Executive Vice President and Chief Financial Officer |
||||
| Total new orders from continuing operations were: 1,194 homes, a 26.7% decrease from the prior year, but a 121.1% increase from the first quarter and a 9.0% increase from the second quarter of fiscal 2009. | |
| Total home closings from continuing operations were: 573 homes, a 31.1% decrease from the prior year, but an 8.7% increase from the first quarter. | |
| Revenue from continuing operations for the quarter was $127.5 million, compared to $192.5 million in the prior year and $110.3 million in the prior quarter. | |
| Including impairments and abandonments, homebuilding gross profit margin from continuing operations was -2.1%, compared to 12.2% in the prior year and 10.1% in the prior quarter. |
| Excluding impairments and abandonments, homebuilding gross profit margin from continuing operations was 12.3%, compared to 17.4% in the prior year, which had a higher revenue base and a significant non-recurring warranty recovery, and 10.7% in the prior quarter. | ||
| Excluding interest included in cost of sales as well as impairments and abandonments, homebuilding gross profit margin from continuing operations was 19.0%, compared to 22.6% in the prior year and 17.0% in the prior quarter. |
| The Company recorded a loss from continuing operations of $54.0 million, or a loss of $.73 per share, including $17.9 million of non-cash pre-tax charges for inventory impairments. For the prior year, the Company reported net income from continuing operations of $6.2 million, or $0.10 per diluted share, which included non-cash pre-tax charges of $10.0 million for inventory impairments and $8.8 million for the impairment of our investment in an unconsolidated joint venture, offset by a $52.9 million pre-tax gain related to the partial exchange of our junior subordinated notes. | |
| Net loss, including $0.3 million of net income from discontinued operations, was $53.7 million for the quarter. For the prior year, the net income of $5.3 million included a net loss from discontinued operations of $0.9 million. |
| Total cash and cash equivalents: $453.2 million, including restricted cash of $71.0 million. The restricted cash included $38.4 million primarily related to the Companys outstanding Letters of Credit, and $32.6 million related to the Companys Cash Secured Term Loan. | |
| Stockholders equity: $295.9 million not including $57.5 million of mandatory convertible subordinated notes, which automatically convert to common stock at maturity in 2013. | |
| Realizable net deferred tax assets after our Section 382 limitation are estimated between $308 million and $430 million. | |
| Total Backlog: 1,416 homes with a sales value of $339.6 million compared to 1,781 homes with a sales value of $394.5 million as of March 31, 2010. |
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Total revenue
|
$ | 127,503 | $ | 192,455 | $ | 237,802 | $ | 405,528 | ||||||||
Home construction and land sales expenses
|
110,891 | 157,591 | 209,116 | 343,735 | ||||||||||||
Inventory impairments and option contract abandonments
|
17,853 | 9,986 | 18,539 | 18,536 | ||||||||||||
Gross (loss) profit
|
(1,241 | ) | 24,878 | 10,147 | 43,257 | |||||||||||
Selling, general and administrative expenses
|
41,663 | 43,875 | 79,461 | 88,741 | ||||||||||||
Depreciation and amortization
|
2,075 | 2,681 | 3,988 | 5,957 | ||||||||||||
Operating loss
|
(44,979 | ) | (21,678 | ) | (73,302 | ) | (51,441 | ) | ||||||||
Equity in income (loss) of unconsolidated joint ventures
|
71 | (8,779 | ) | 309 | (8,809 | ) | ||||||||||
(Loss) gain on extinguishment of debt
|
(102 | ) | 52,946 | (3,004 | ) | 52,946 | ||||||||||
Other expense, net
|
(11,465 | ) | (18,033 | ) | (29,531 | ) | (37,559 | ) | ||||||||
Loss from continuing operations before income taxes
|
(56,475 | ) | 4,456 | (105,528 | ) | (44,863 | ) | |||||||||
Benefit from income taxes
|
(2,426 | ) | (1,699 | ) | (3,019 | ) | (95,525 | ) | ||||||||
(Loss) income from continuing operations
|
(54,049 | ) | 6,155 | (102,509 | ) | 50,662 | ||||||||||
Income (loss) from discontinued operations, net of tax
|
294 | (857 | ) | (54 | ) | 2,635 | ||||||||||
Net (loss) income
|
$ | (53,755 | ) | $ | 5,298 | $ | (102,563 | ) | $ | 53,297 | ||||||
Weighted average number of shares: |
||||||||||||||||
Basic
|
73,930 | 58,314 | 73,904 | 48,463 | ||||||||||||
Diluted
|
73,930 | 69,147 | 73,904 | 56,933 | ||||||||||||
(Loss) earnings per share: |
||||||||||||||||
Basic (loss) earnings per share from continuing operations
|
$ | (0.73 | ) | $ | 0.11 | $ | (1.39 | ) | $ | 1.05 | ||||||
Basic earnings (loss) per share from discontinued operations
|
$ | | $ | (0.02 | ) | $ | | $ | 0.05 | |||||||
Basic (loss) earnings per share
|
$ | (0.73 | ) | $ | 0.09 | $ | (1.39 | ) | $ | 1.10 | ||||||
Diluted (loss) earnings per share from continuing operations
|
$ | (0.73 | ) | $ | 0.10 | $ | (1.39 | ) | $ | 0.94 | ||||||
Diluted earnings (loss) per share from discontinued operations
|
$ | | $ | (0.01 | ) | $ | | $ | 0.05 | |||||||
Diluted (loss) earnings per share
|
$ | (0.73 | ) | $ | 0.09 | $ | (1.39 | ) | $ | 0.99 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Capitalized interest in inventory, beginning of period
|
$ | 43,433 | $ | 38,970 | $ | 36,884 | $ | 38,338 | ||||||||
Interest incurred
|
32,937 | 32,236 | 65,303 | 65,416 | ||||||||||||
Capitalized interest impaired
|
(1,409 | ) | (464 | ) | (1,409 | ) | (1,096 | ) | ||||||||
Interest expense not qualified for capitalization
and included as other expense
|
(19,058 | ) | (19,565 | ) | (37,981 | ) | (40,097 | ) | ||||||||
Capitalized interest amortized to house
construction and land sales expenses
|
(8,279 | ) | (10,070 | ) | (15,173 | ) | (21,454 | ) | ||||||||
Capitalized interest in inventory, end of period
|
$ | 47,624 | $ | 41,107 | $ | 47,624 | $ | 41,107 | ||||||||
March 31, | September 30, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents
|
$ | 382,196 | $ | 537,121 | ||||
Restricted cash
|
71,018 | 39,200 | ||||||
Accounts receivable (net of allowance of $3,550 and $3,567, respectively)
|
34,236 | 32,647 | ||||||
Income tax receivable
|
2,823 | 7,684 | ||||||
Inventory |
||||||||
Owned inventory
|
1,233,428 | 1,153,703 | ||||||
Land not owned under option agreements
|
35,458 | 49,958 | ||||||
Total inventory
|
1,268,886 | 1,203,661 | ||||||
Investments in unconsolidated joint ventures
|
9,305 | 8,721 | ||||||
Deferred tax assets, net
|
7,864 | 7,779 | ||||||
Property, plant and equipment, net
|
25,010 | 23,995 | ||||||
Other assets
|
52,020 | 42,094 | ||||||
Total assets
|
$ | 1,853,358 | $ | 1,902,902 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Trade accounts payable
|
$ | 39,199 | $ | 53,418 | ||||
Other liabilities
|
211,878 | 210,170 | ||||||
Obligations related to land not owned under option agreements
|
19,693 | 30,666 | ||||||
Total debt (net of discounts of $25,220 and $23,617, respectively)
|
1,286,696 | 1,211,547 | ||||||
Total liabilities
|
1,557,466 | 1,505,801 | ||||||
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, 180,000,000 shares authorized,76,261,416 and 75,669,381 issued and outstanding, respectively) |
76 | 76 | ||||||
Paid-in capital
|
619,966 | 618,612 | ||||||
Accumulated deficit
|
(324,150 | ) | (221,587 | ) | ||||
Total stockholders equity
|
295,892 | 397,101 | ||||||
Total liabilities and stockholders equity
|
$ | 1,853,358 | $ | 1,902,902 | ||||
Inventory Breakdown |
||||||||
Homes under construction
|
$ | 246,964 | $ | 210,104 | ||||
Development projects in progress
|
478,303 | 444,062 | ||||||
Land held for future development
|
376,949 | 382,889 | ||||||
Land held for sale
|
37,496 | 36,259 | ||||||
Capitalized interest
|
47,624 | 36,884 | ||||||
Pre-owned homes and deposits
|
372 | | ||||||
Model homes
|
45,720 | 43,505 | ||||||
Land not owned under option agreements
|
35,458 | 49,958 | ||||||
Total inventory
|
$ | 1,268,886 | $ | 1,203,661 | ||||
Quarter Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
SELECTED OPERATING DATA | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Closings: |
||||||||||||||||
West region
|
181 | 369 | 397 | 765 | ||||||||||||
East region
|
219 | 308 | 421 | 651 | ||||||||||||
Southeast region
|
173 | 155 | 282 | 351 | ||||||||||||
Continuing Operations
|
573 | 832 | 1,100 | 1,767 | ||||||||||||
Discontinued Operations
|
10 | 20 | 32 | 46 | ||||||||||||
Total closings
|
583 | 852 | 1,132 | 1,813 | ||||||||||||
New orders, net of cancellations: |
||||||||||||||||
West region
|
417 | 646 | 591 | 999 | ||||||||||||
East region
|
480 | 624 | 737 | 852 | ||||||||||||
Southeast region
|
297 | 359 | 406 | 488 | ||||||||||||
Continuing Operations
|
1,194 | 1,629 | 1,734 | 2,339 | ||||||||||||
Discontinued Operations
|
5 | 44 | 18 | 62 | ||||||||||||
Total new orders
|
1,199 | 1,673 | 1,752 | 2,401 | ||||||||||||
Backlog units at end of period: |
||||||||||||||||
West region
|
463 | 665 | 463 | 665 | ||||||||||||
East region
|
682 | 733 | 682 | 733 | ||||||||||||
Southeast region
|
269 | 345 | 269 | 345 | ||||||||||||
Continuing Operations
|
1,414 | 1,743 | 1,414 | 1,743 | ||||||||||||
Discontinued Operations
|
2 | 38 | 2 | 38 | ||||||||||||
Total backlog units
|
1,416 | 1,781 | 1,416 | 1,781 | ||||||||||||
Dollar value of backlog at end of period (in millions)
|
$ | 339.6 | $ | 394.5 | $ | 339.6 | $ | 394.5 | ||||||||
Revenue (in thousands): |
||||||||||||||||
West region
|
$ | 36,791 | $ | 80,770 | $ | 76,339 | $ | 166,563 | ||||||||
East region
|
58,418 | 80,165 | 108,632 | 168,968 | ||||||||||||
Southeast region
|
32,294 | 31,520 | 52,831 | 69,997 | ||||||||||||
Total revenue
|
$ | 127,503 | $ | 192,455 | $ | 237,802 | $ | 405,528 | ||||||||
Quarter Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenues |
||||||||||||||||
Homebuilding operations
|
$ | 123,591 | $ | 192,066 | $ | 233,577 | $ | 400,659 | ||||||||
Land sales and other
|
3,912 | 389 | 4,225 | 4,869 | ||||||||||||
Total revenues
|
$ | 127,503 | $ | 192,455 | $ | 237,802 | $ | 405,528 | ||||||||
Gross profit |
||||||||||||||||
Homebuilding operations
|
$ | (2,606 | ) | $ | 23,412 | $ | 8,471 | $ | 41,021 | |||||||
Land sales and other
|
1,365 | 1,466 | 1,676 | 2,236 | ||||||||||||
Total gross profit
|
$ | (1,241 | ) | $ | 24,878 | $ | 10,147 | $ | 43,257 | |||||||
Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
Homebuilding gross profit
|
$ | (2,606 | ) | -2.1 | % | $ | 23,412 | 12.2 | % | $ | 8,471 | 3.6 | % | $ | 41,021 | 10.2 | % | |||||||||||||||
Inventory impairments and lot option
abandonments (I&A)
|
17,853 | 9,986 | 18,539 | 18,536 | ||||||||||||||||||||||||||||
Homebuilding Gross Profit before I&A
|
15,247 | 12.3 | % | 33,398 | 17.4 | % | 27,010 | 11.6 | % | 59,557 | 14.9 | % | ||||||||||||||||||||
Interest amortized to cost of sales
|
8,279 | 10,070 | 15,173 | 21,454 | ||||||||||||||||||||||||||||
Homebuilding gross profit before I&A
and interest amortized to cost of sales
|
$ | 23,526 | 19.0 | % | $ | 43,468 | 22.6 | % | $ | 42,183 | 18.1 | % | $ | 81,011 | 20.2 | % | ||||||||||||||||
'B4C(RPM+2LJ*C$P,#(Y.38T-#@V-3HX.#E!
M03\\/$-!04)'1T%-2T934DA%1$E'1$I*2D]-3%)/35)24E)24E)<7%1@85=5
M55IA86([-5M:6F-B8F-J:F-K:VEG96QL;&QO<&IR 'B4C(RPM
M+2LJ*C$P,#(Y.38T-#@V-3HX.#E!03\\/$-!04)'1T%-2T934DA%1$E'1$I*
M2D]-3%)/35)24E)24E)<7%1@85=555IA86([-5M:6F-B8F-J:F-K:VEG96QL
M;&QO<&IR "=,U^!QI2E6Z4I:V]*$E%>1)B3E1@%JEI@RH:4!Q"@"$9:LF9J7"4/
MW^7&^0H4@P7^P[NI8