Beazer Homes reports Q2 fiscal 2014 net loss of US$8.2M compared with loss of US$19.1M a year ago on homebuilding revenues down 6.8% year-over-year to US$266.1M; home closings down 13.3%
Aimee Bellah
ATLANTA
,
May 1, 2014
(press release)
–
Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and six months ended March 31, 2014.
Q2 Results from Continuing Operations (unless otherwise specified) ) % ) % 70 bps ) % ) % 380 bps 340 bps ) ) % -140 bps ) % 390 bps 320 bps 0.6 (0.6 )
"Despite inclement weather and a slower start to the spring selling season than anticipated, we made further progress on our operational and financial objectives during the quarter," said Allan Merrill, President and CEO of Beazer Homes. "We exceeded our expectations for sales per community, increased gross margins, improved Adjusted EBITDA and invested heavily for our long-term growth. These results allow us to reaffirm our confidence in delivering full year profitability in Fiscal 2014 and in making substantial progress on our multi-year "2B-10" target this year."
On its earnings conference call today, the Company intends to update its full year Fiscal 2014 expectations for several operational and financial metrics, including increasing the Company’s guidance for year-over-year growth in Adjusted EBITDA. The Company now expects growth in Adjusted EBITDA of at least $45 million compared to Fiscal Year 2013.
Summary results for the quarter and six months ended March 31, 2014 are as follows:
Quarter Ended March 31,
2014
2013
Change
New Home Orders
1,390
1,521
(8.6
Orders per month per community
3.3
3.4
(2.9
LTM orders per month per community
2.9
2.7
7.4
%
Cancellation rates
19.4
%
18.7
%
Total Home Closings
977
1,127
(13.3
Average sales price from closings (in thousands)
$
272.4
$
253.3
7.5
%
Homebuilding revenue (in millions)
$
266.1
$
285.5
(6.8
Homebuilding gross profit margin, excluding impairments and abandonments (I&A)
19.7
%
15.9
%
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales
22.5
%
19.1
%
Loss from continuing operations before income taxes (in millions)
$
(8.3
)
$
(19.5
)
$
11.2
Benefit from income taxes (in millions)
$
0.1
$
0.3
$
(0.2
Net loss from continuing operations (in millions)
$
(8.2
)
$
(19.1
)
$
10.9
Basic Loss Per Share
$
(0.32
)
$
(0.78
)
$
0.46
Land and land development spending (in millions)
$
128.6
$
62.6
$
66.0
Total Company Adjusted EBITDA (in millions)
$
18.5
$
15.2
$
3.3
Six Months Ended March 31,
2014
2013
Change
New Home Orders
2,285
2,453
(6.8
LTM orders per month per community
2.9
2.7
7.4
%
Cancellation rates
20.4
%
21.8
%
Total Home Closings
2,015
2,165
(6.9
Average sales price from closings (in thousands)
$
276.0
$
244.8
12.7
%
Homebuilding revenue (in millions)
$
556.1
$
529.9
4.9
%
Homebuilding gross profit margin, excluding impairments and abandonments (I&A)
19.2
%
15.3
%
Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales
21.9
%
18.7
%
Loss from continuing operations before income taxes (in millions)
$
(12.2
)
$
(38.6
)
$
26.4
Benefit from income taxes (in millions)
$
—
$
$
Net loss from continuing operations (in millions)
$
(12.2
)
$
(38.1
)
$
25.9
Basic Loss Per Share
$
(0.48
)
$
(1.55
)
$
1.07
Land and land development spending (in millions)
$
252.4
$
152.6
$
99.8
Total Company Adjusted EBITDA (in millions)
$
40.2
$
23.0
$
17.2
As of March 31, 2014
Conference Call
The Company will hold a conference call on May 1, 2014 at 10:00 am ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation over the Internet by visiting the “Investor Relations” section of the Company's website at www.beazer.com. To access the conference call by telephone, listeners should dial 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the passcode "BZH". A replay of the call will be available shortly after the conclusion of the live call. To directly access the replay, dial 888-662-6653 or 402-220-6417 and enter the passcode “3740” (available until 11 pm ET on May 8, 2014), or visit www.beazer.com. A replay of the webcast will be available at www.beazer.com for at least 30 days.
Headquartered in Atlanta, Beazer Homes is one of the country's 10 largest single-family homebuilders. The Company's homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with Choice Plans to meet the personal preferences and lifestyles of its buyers. In addition, the Company is committed to providing a range of preferred lender choices to facilitate transparent competition between lenders and enhanced customer service. The Company offers homes in 16 states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New York Stock Exchange under the ticker symbol “BZH.” For more info visit Beazer.com, or check out Beazer on Facebook and Twitter.
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