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 April 30, 2015 |
BEAZER HOMES USA, INC. | ||||||||
Date: April 30, 2015 | By: | /s/ Kenneth F. Khoury | ||||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
Quarter Ended March 31, | ||||||||||||
2015 | 2014 | Change | ||||||||||
New Home Orders | 1,698 | 1,390 | 22.2 | % | ||||||||
Orders per month per community | 3.5 | 3.3 | 6.1 | % | ||||||||
Actual community count at month-end | 163 | 138 | 18.1 | % | ||||||||
Average active community count | 160 | 140 | 14.3 | % | ||||||||
Cancellation rates | 16.7 | % | 19.4 | % | 270 bps | |||||||
Total Home Closings | 936 | 977 | (4.2 | )% | ||||||||
Average sales price from closings (in thousands) | $ | 305.8 | $ | 272.4 | 12.3 | % | ||||||
Homebuilding revenue (in millions) | $ | 286.2 | $ | 266.1 | 7.6 | % | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 18.3 | % | 19.7 | % | -140 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 21.7 | % | 22.5 | % | -80 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (2.0 | ) | $ | (8.3 | ) | $ | 6.3 | ||||
Provision of (benefit from) income taxes (in millions) | $ | 0.1 | $ | (0.1 | ) | $ | 0.2 | |||||
Net loss from continuing operations (in millions) | $ | (2.1 | ) | $ | (8.2 | ) | $ | 6.1 | ||||
Basic Loss Per Share | $ | (0.08 | ) | $ | (0.32 | ) | $ | 0.24 | ||||
Total Company land and land development spending (in millions) | $ | 102.1 | $ | 128.6 | $ | (26.5 | ) | |||||
Total Company Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 19.7 | $ | 18.5 | $ | 1.2 | ||||||
LTM Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 129.1 | $ | 103.5 | 24.7 | % |
Six Months Ended March 31, | ||||||||||||
2015 | 2014 | Change | ||||||||||
New Home Orders | 2,664 | 2,285 | 16.6 | % | ||||||||
LTM orders per month per community | 2.8 | 2.9 | (3.4 | )% | ||||||||
Cancellation rates | 18.5 | % | 20.4 | % | 190 bps | |||||||
Total Home Closings | 1,821 | 2,015 | (9.6 | )% | ||||||||
Average sales price from closings (in thousands) | $ | 300.8 | $ | 276.0 | 9.0 | % | ||||||
Homebuilding revenue (in millions) | $ | 547.8 | $ | 556.1 | (1.5 | )% | ||||||
Homebuilding gross profit margin, excluding impairments and abandonments (I&A) | 16.0 | % | 19.2 | % | -320 bps | |||||||
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales | 19.3 | % | 21.9 | % | -260 bps | |||||||
Homebuilding gross profit margin, excluding I&A, interest amortized to cost of sales and unexpected warranty costs | 21.8 | % | 21.9 | % | -10 bps | |||||||
Loss from continuing operations before loss on debt extinguishment (in millions) | $ | (20.1 | ) | $ | (12.0 | ) | $ | (8.1 | ) | |||
Loss on debt extinguishment (in millions) | $ | — | $ | (0.2 | ) | $ | 0.2 | |||||
Net loss from continuing operations (in millions) | $ | (20.1 | ) | $ | (12.2 | ) | $ | (7.9 | ) | |||
Basic Loss Per Share | $ | (0.76 | ) | $ | (0.48 | ) | $ | (0.28 | ) | |||
Land and land development spending (in millions) | $ | 247.6 | $ | 252.4 | $ | (4.8 | ) | |||||
Total Company Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 36.0 | $ | 40.2 | (10.4 | )% |
As of March 31, | |||||||||||
2015 | 2014 | Change | |||||||||
Backlog | 2,533 | 2,163 | 17.1 | % | |||||||
Dollar value of backlog at end of period (in millions) | $ | 814.1 | $ | 637.1 | 27.8 | % | |||||
ASP in Backlog | $ | 321.4 | $ | 294.5 | 9.1 | % | |||||
Land and lots controlled | 27,794 | 29,331 | (5.2 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Total revenue | $ | 299,359 | $ | 270,021 | $ | 565,123 | $ | 563,191 | |||||||
Home construction and land sales expenses | 245,446 | 216,969 | 475,992 | 455,438 | |||||||||||
Inventory impairments and option contract abandonments | — | 880 | — | 911 | |||||||||||
Gross profit | 53,913 | 52,172 | 89,131 | 106,842 | |||||||||||
Commissions | 11,969 | 11,096 | 22,895 | 22,917 | |||||||||||
General and administrative expenses | 32,727 | 32,628 | 64,168 | 61,038 | |||||||||||
Depreciation and amortization | 2,781 | 2,831 | 5,122 | 5,738 | |||||||||||
Operating income (loss) | 6,436 | 5,617 | (3,054 | ) | 17,149 | ||||||||||
Equity in income (loss) of unconsolidated entities | 82 | (17 | ) | 224 | 302 | ||||||||||
Loss on extinguishment of debt | — | (153 | ) | — | (153 | ) | |||||||||
Other expense, net | (8,473 | ) | (13,727 | ) | (17,907 | ) | (29,484 | ) | |||||||
Loss from continuing operations before income taxes | (1,955 | ) | (8,280 | ) | (20,737 | ) | (12,186 | ) | |||||||
Provision for (benefit from) income taxes | 105 | (56 | ) | (591 | ) | (14 | ) | ||||||||
Loss from continuing operations | (2,060 | ) | (8,224 | ) | (20,146 | ) | (12,172 | ) | |||||||
Income (loss) from discontinued operations, net of tax | 64 | 253 | (4,190 | ) | (937 | ) | |||||||||
Net loss | $ | (1,996 | ) | $ | (7,971 | ) | $ | (24,336 | ) | $ | (13,109 | ) | |||
Weighted average number of shares: | |||||||||||||||
Basic and Diluted | 26,480 | 25,320 | 26,469 | 25,163 | |||||||||||
Basic and Diluted (loss) income per share: | |||||||||||||||
Continuing Operations | $ | (0.08 | ) | $ | (0.32 | ) | $ | (0.76 | ) | $ | (0.48 | ) | |||
Discontinued Operations | $ | — | $ | 0.01 | $ | (0.16 | ) | $ | (0.04 | ) | |||||
Total | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.92 | ) | $ | (0.52 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Capitalized interest in inventory, beginning of period | $ | 99,868 | $ | 61,836 | $ | 87,619 | $ | 52,562 | |||||||
Interest incurred | 30,259 | 32,458 | 60,542 | 64,899 | |||||||||||
Interest expense not qualified for capitalization and included as other expense | (7,695 | ) | (14,659 | ) | (17,442 | ) | (30,691 | ) | |||||||
Capitalized interest amortized to house construction and land sales expenses | (9,956 | ) | (7,379 | ) | (18,243 | ) | (14,514 | ) | |||||||
Capitalized interest in inventory, end of period | $ | 112,476 | $ | 72,256 | $ | 112,476 | $ | 72,256 |
March 31, 2015 | September 30, 2014 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 146,261 | $ | 324,154 | |||
Restricted cash | 43,169 | 62,941 | |||||
Accounts receivable (net of allowance of $1,305 and $1,245, respectively) | 35,880 | 34,429 | |||||
Income tax receivable | 46 | 46 | |||||
Inventory: | |||||||
Owned inventory | 1,757,036 | 1,557,496 | |||||
Land not owned under option agreements | — | 3,857 | |||||
Total inventory | 1,757,036 | 1,561,353 | |||||
Investments in marketable securities and unconsolidated entities | 10,372 | 38,341 | |||||
Deferred tax assets, net | 46 | 2,823 | |||||
Property, plant and equipment, net | 21,153 | 18,673 | |||||
Other assets | 18,290 | 23,460 | |||||
Total assets | $ | 2,032,253 | $ | 2,066,220 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Trade accounts payable | $ | 100,844 | $ | 106,237 | |||
Other liabilities | 137,435 | 142,516 | |||||
Obligations related to land not owned under option agreements | — | 2,916 | |||||
Total debt (net of discounts of $4,019 and $4,399, respectively) | 1,535,172 | 1,535,433 | |||||
Total liabilities | $ | 1,773,451 | $ | 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, 27,434,097 issued and outstanding and 27,173,421 issued and outstanding, respectively) | 27 | 27 | |||||
Paid-in capital | 854,368 | 851,624 | |||||
Accumulated deficit | (595,593 | ) | (571,257 | ) | |||
Accumulated other comprehensive loss | — | (1,276 | ) | ||||
Total stockholders’ equity | 258,802 | 279,118 | |||||
Total liabilities and stockholders’ equity | $ | 2,032,253 | $ | 2,066,220 | |||
Inventory Breakdown | |||||||
Homes under construction | $ | 395,726 | $ | 282,095 | |||
Development projects in progress | 849,644 | 786,768 | |||||
Land held for future development | 270,518 | 301,048 | |||||
Land held for sale | 64,929 | 51,672 | |||||
Capitalized interest | 112,476 | 87,619 | |||||
Model homes | 63,743 | 48,294 | |||||
Land not owned under option agreements | — | 3,857 | |||||
Total inventory | $ | 1,757,036 | $ | 1,561,353 |
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
SELECTED OPERATING DATA | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Closings: | ||||||||||||||||
West region | 386 | 453 | 702 | 888 | ||||||||||||
East region | 269 | 257 | 574 | 595 | ||||||||||||
Southeast region | 281 | 267 | 545 | 532 | ||||||||||||
Total closings | 936 | 977 | 1,821 | 2,015 | ||||||||||||
New orders, net of cancellations: | ||||||||||||||||
West region | 715 | 550 | 1,120 | 901 | ||||||||||||
East region | 488 | 424 | 774 | 732 | ||||||||||||
Southeast region | 495 | 416 | 770 | 652 | ||||||||||||
Total new orders | 1,698 | 1,390 | 2,664 | 2,285 | ||||||||||||
Backlog units at end of period: | ||||||||||||||||
West region | 975 | 751 | 975 | 751 | ||||||||||||
East region | 800 | 798 | 800 | 798 | ||||||||||||
Southeast region | 758 | 614 | 758 | 614 | ||||||||||||
Total backlog units | 2,533 | 2,163 | 2,533 | 2,163 | ||||||||||||
Dollar value of backlog at end of period (in millions) | $ | 814.1 | $ | 637.1 | $ | 814.1 | $ | 637.1 | ||||||||
Homebuilding Revenue: | ||||||||||||||||
West region | $ | 108,766 | $ | 119,044 | $ | 195,084 | $ | 239,256 | ||||||||
East region | 96,758 | 82,366 | 198,590 | 189,245 | ||||||||||||
Southeast region | 80,698 | 64,715 | 154,130 | 127,582 | ||||||||||||
Total homebuilding revenue | $ | 286,222 | $ | 266,125 | $ | 547,804 | $ | 556,083 |
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | ||||||||||||||||
Homebuilding | $ | 286,222 | $ | 266,125 | $ | 547,804 | $ | 556,083 | ||||||||
Land sales and other | 13,137 | 3,896 | 17,319 | 7,108 | ||||||||||||
Total | $ | 299,359 | $ | 270,021 | $ | 565,123 | $ | 563,191 | ||||||||
Gross profit: | ||||||||||||||||
Homebuilding | $ | 52,379 | $ | 51,655 | $ | 87,656 | $ | 106,105 | ||||||||
Land sales and other | 1,534 | 517 | 1,475 | 737 | ||||||||||||
Total | $ | 53,913 | $ | 52,172 | $ | 89,131 | $ | 106,842 |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Homebuilding gross profit | $ | 52,379 | 18.3 | % | $ | 51,655 | 19.4 | % | $ | 87,656 | 16.0 | % | $ | 106,105 | 19.1 | % | |||||||
Inventory impairments and lot option abandonments (I&A) | — | 880 | — | 911 | |||||||||||||||||||
Homebuilding gross profit before I&A | 52,379 | 18.3 | % | 52,535 | 19.7 | % | 87,656 | 16.0 | % | 107,016 | 19.2 | % | |||||||||||
Interest amortized to cost of sales | 9,782 | 7,379 | 17,976 | 14,514 | |||||||||||||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | 62,161 | 21.7 | % | 59,914 | 22.5 | % | 105,632 | 19.3 | % | 121,530 | 21.9 | % | |||||||||||
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 | $ | 62,161 | 21.7 | % | $ | 59,914 | 22.5 | % | $ | 119,214 | 21.8 | % | $ | 121,530 | 21.9 | % |
Quarter Ended March 31, | Six Months Ended March 31, | LTM Ended March 31, (a) | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Net loss | $ | (1,996 | ) | $ | (7,971 | ) | $ | (24,336 | ) | $ | (13,109 | ) | $ | 23,156 | $ | (6,949 | ) | |||||||
(Benefit from) provision for income taxes | 103 | (56 | ) | (594 | ) | (4 | ) | (42,392 | ) | (3,061 | ) | |||||||||||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired and interest expense not qualified for capitalization | 17,651 | 22,038 | 35,685 | 45,205 | 82,328 | 95,625 | ||||||||||||||||||
Depreciation and amortization and stock compensation amortization | 4,322 | 3,488 | 8,037 | 7,004 | 16,899 | 15,200 | ||||||||||||||||||
Inventory impairments and option contract abandonments | — | 880 | — | 911 | 7,151 | 1,315 | ||||||||||||||||||
Loss on debt extinguishment | — | 153 | — | 153 | 19,764 | 1,151 | ||||||||||||||||||
Joint venture impairment and abandonment charges | — | — | — | — | — | 181 | ||||||||||||||||||
Adjusted EBITDA | $ | 20,080 | $ | 18,532 | $ | 18,792 | $ | 40,160 | $ | 106,906 | $ | 103,462 | ||||||||||||
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 | (340 | ) | — | 3,660 | — | 3,660 | — | |||||||||||||||||
Adjusted EBITDA excluding unexpected warranty costs and a litigation settlement in discontinued operations | $ | 19,740 | $ | 18,532 | $ | 36,034 | $ | 40,160 | $ | 129,086 | $ | 103,462 |