Beazer Homes Reports First Quarter Fiscal 2024 Results
- Net new orders increased by 70.7% from the prior year quarter.
- Homebuilding gross margin increased by 70 basis points to 19.9%.
- Controlled lots increased by 6.6% to 26,374 compared to the prior year quarter.
- The company remains committed to ensuring that every new Beazer home started by the end of 2025 will be Zero Energy Ready.
- During the quarter, the company repurchased $4.3 million of its outstanding 6.750% unsecured Senior Notes due March 2025.
- Adjusted EBITDA decreased by 19.4% primarily due to lower homebuilding revenue.
- Homebuilding revenue decreased by 14.2% year-over-year.
- The dollar value of homes in backlog decreased by 0.9% on a 3.7% decrease in ASP of homes in backlog.
Insights
The reported financial results from Beazer Homes USA, Inc. highlight several key metrics that are of interest to investors and market analysts. A noteworthy point is the net income from continuing operations which stands at $21.7 million, a decrease from the prior year's $24.4 million. This decline is significant as net income is a direct indicator of the company's profitability and can influence investor sentiment and stock valuation.
Another critical aspect is the adjusted EBITDA, which has seen a 19.4% decrease. EBITDA is often used as a proxy for the operating performance of a company and a decline could signal underlying issues in operational efficiency or cost management. Additionally, the homebuilding revenue has decreased by 14.2%, which could be attributed to both a decrease in home closings and average selling price (ASP). This contraction in revenue is a concern as it directly impacts the bottom line and could be a result of market conditions or internal challenges.
The gross margin improvement, however, is a positive indicator, suggesting the company has managed to control direct costs despite the revenue downturn. The increase in net new orders by 70.7% is also a strong sign of demand, which could bode well for future revenue. Yet, the increase in SG&A expenses as a percentage of total revenue is a potential red flag for cost control moving forward.
It is also important to consider the company's liquidity and debt ratios. A lower total debt to total capitalization ratio year-over-year indicates an improvement in the company's financial structure, which can reduce financial risk and possibly lead to lower costs of capital.
The significant increase in net new orders and a reduction in the cancellation rate from 37.1% to 19.0% suggest that Beazer Homes is experiencing a rebound in market demand. This is likely influenced by the declining mortgage rates mentioned, which typically spur homebuying activity. The increase in orders per community per month showcases the company's effective market penetration and sales strategies.
The backlog is an essential indicator of future revenue potential and while the dollar value is slightly down, the increase in backlog units points towards a healthy pipeline. However, the decrease in ASP within the backlog could potentially indicate a shift in the mix of homes being sold towards lower price points or increased use of incentives to maintain sales momentum.
Beazer Homes' commitment to building Zero Energy Ready homes and being recognized as an Indoor airPLUS Leader of the Year reflects a strategic focus on sustainability and health, which is increasingly important to consumers. This could enhance the brand's appeal and competitive positioning in the market, potentially leading to long-term growth.
Beazer Homes' strategic commitment to Zero Energy Ready homes aligns with a growing consumer and regulatory trend towards energy efficiency and sustainability. The U.S. Department of Energy's Zero Energy Ready Home program sets rigorous requirements for energy savings, which can result in lower utility bills for homeowners and contribute to overall sustainability goals.
The company's increase in Zero Energy Ready homes from 2% to 54% of new home starts within a year is a substantial shift towards sustainable building practices. This not only meets emerging consumer preferences but can also provide Beazer Homes with potential long-term cost savings through energy efficiency and possibly government incentives for sustainable construction.
The recognition by the U.S. Environmental Protection Agency as the Indoor airPLUS Leader of the Year adds to the company's reputation for quality and sustainability. Such accolades can strengthen brand differentiation and may lead to increased market share as consumers become more environmentally conscious.
“Against a backdrop of declining mortgage rates in late November and early December, we generated strong first quarter results,” said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. “Driven by a higher sales pace and greater community count, net new orders grew significantly versus the prior year. With a large backlog, improving cycle times and community count growth, we’re on track to meet our growth and profitability goals for the fiscal year.”
“At the end of December, one of our title insurer providers experienced a cybersecurity incident, which delayed a number of closings in the quarter. Although the delayed closings led to slightly lower revenue and earnings in the quarter, I’m pleased to report that these delayed closings were all completed during the first two weeks of January and that the title insurance provider has returned to normal operations.”
Looking further out, Mr. Merrill concluded, “Our multi-year outlook and growth objectives remain on track, and we continue to have confidence in sustained demand for the homes we build. We have an ample lot supply to support our community count growth objectives, an accelerating number of Zero Energy Ready homes in our pipeline and a healthy balance sheet, all of which support our ability to create durable value for our stakeholders in the years ahead.”
Beazer Homes Fiscal First Quarter 2024 Highlights and Comparison to Fiscal First Quarter 2023
-
Net income from continuing operations of
$21.7 million $0.70 $24.4 million $0.80 -
Adjusted EBITDA of
$38.0 million 19.4% -
Homebuilding revenue of
$380.9 million 14.2% on a10.8% decrease in home closings to 743 and a3.8% decrease in average selling price (ASP) to$512.7 thousand -
Homebuilding gross margin was
19.9% , up 70 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was22.9% , up 60 basis points -
SG&A as a percentage of total revenue was
14.3% , up 200 basis points -
Net new orders of 823, up
70.7% on a50.4% increase in orders per community per month to 2.0 and a13.5% increase in average community count to 137 -
Backlog dollar value of
$932.8 million 0.9% on a3.7% decrease in ASP of homes in backlog to$520.8 thousand 2.9% increase in backlog units to 1,791 -
Unrestricted cash at quarter end was
$104.2 million $404.2 million -
Total debt to total capitalization ratio of
46.5% at quarter end compared to50.6% a year ago. Net debt to net capitalization ratio of43.7% at quarter end compared to47.3% a year ago.
The following provides additional details on the Company's performance during the fiscal first quarter 2024:
Profitability. Net income from continuing operations was
Orders. Net new orders for the first quarter increased to 823, up
Backlog. The dollar value of homes in backlog as of December 31, 2023 was
Homebuilding Revenue. First quarter homebuilding revenue was
Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was
SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was
Land Position. Controlled lots increased
Liquidity. At the close of the first quarter, the Company had
Debt Repurchases. During the quarter, the Company repurchased
Senior Unsecured Revolving Credit Facility. During October 2023, the Company increased the available borrowing capacity under the senior unsecured revolving credit facility from
Commitment to ESG Initiatives
The Company remains committed to ensuring that by the end of 2025 every new Beazer home that we start will be Zero Energy Ready, which means it will meet the requirements of the
During October, Beazer Homes was named the 2023 Indoor airPLUS Leader of the Year in the Builder category by the
Summary results for the three months ended December 31, 2023 are as follows:
|
Three Months Ended December 31, |
|||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change* |
|
New home orders, net of cancellations |
|
823 |
|
|
|
482 |
|
|
70.7 |
% |
Cancellation rates |
|
19.0 |
% |
|
|
37.1 |
% |
|
(1,810) bps |
|
Orders per community per month |
|
2.0 |
|
|
|
1.3 |
|
|
50.4 |
% |
Average active community count |
|
137 |
|
|
|
121 |
|
|
13.5 |
% |
Active community count at quarter-end |
|
136 |
|
|
|
119 |
|
|
14.3 |
% |
Land acquisition and land development spending (in millions) |
$ |
198.7 |
|
|
$ |
114.7 |
|
|
73.2 |
% |
|
|
|
|
|
|
|||||
Total home closings |
|
743 |
|
|
|
833 |
|
|
(10.8 |
) % |
ASP from closings (in thousands) |
$ |
512.7 |
|
|
$ |
533.1 |
|
|
(3.8 |
) % |
Homebuilding revenue (in millions) |
$ |
380.9 |
|
|
$ |
444.1 |
|
|
(14.2 |
) % |
Homebuilding gross margin |
|
19.9 |
% |
|
|
19.2 |
% |
|
70 bps |
|
Homebuilding gross margin, excluding impairments and abandonments (I&A) |
|
19.9 |
% |
|
|
19.2 |
% |
|
70 bps |
|
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
|
22.9 |
% |
|
|
22.3 |
% |
|
60 bps |
|
|
|
|
|
|
|
|||||
Income from continuing operations before income taxes (in millions) |
$ |
22.9 |
|
|
$ |
28.6 |
|
|
(19.8 |
) % |
Expense from income taxes (in millions) |
$ |
1.2 |
|
|
$ |
4.2 |
|
|
(71.6 |
) % |
Income from continuing operations, net of tax (in millions) |
$ |
21.7 |
|
|
$ |
24.4 |
|
|
(11.0 |
) % |
Basic income per share from continuing operations |
$ |
0.71 |
|
|
$ |
0.81 |
|
|
(12.3 |
) % |
Diluted income per share from continuing operations |
$ |
0.70 |
|
|
$ |
0.80 |
|
|
(12.5 |
) % |
|
|
|
|
|
|
|||||
Net income (in millions) |
$ |
21.7 |
|
|
$ |
24.3 |
|
|
(10.7 |
) % |
Adjusted EBITDA (in millions) |
$ |
38.0 |
|
|
$ |
47.1 |
|
|
(19.4 |
) % |
LTM Adjusted EBITDA (in millions) |
$ |
262.9 |
|
|
$ |
356.1 |
|
|
(26.2 |
) % |
Total debt to total capitalization ratio |
|
46.5 |
% |
|
|
50.6 |
% |
|
(410) bps |
|
Net debt to net capitalization ratio |
|
43.7 |
% |
|
|
47.3 |
% |
|
(360) bps |
|
* Change and totals are calculated using unrounded numbers. |
"LTM" indicates amounts for the trailing 12 months. |
|
As of December 31, |
|||||||
|
|
2023 |
|
|
2022 |
|
Change |
|
Backlog units |
|
1,791 |
|
|
1,740 |
|
2.9 |
% |
Dollar value of backlog (in millions) |
$ |
932.8 |
|
$ |
940.9 |
|
(0.9 |
) % |
ASP in backlog (in thousands) |
$ |
520.8 |
|
$ |
540.8 |
|
(3.7 |
) % |
Land and lots controlled |
|
26,374 |
|
|
24,735 |
|
6.6 |
% |
Conference Call
The Company will hold a conference call on February 1, 2024 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 630-395-0227). To be admitted to the call, enter the pass code “8571348". A replay of the conference call will be available, until 11:59 PM ET on February 7, 2024 at 800-234-4804 (for international callers, dial 203-369-3686) with pass code “3740”.
About Beazer Homes
Headquartered in
We build our homes in
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:
- the cyclical nature of the homebuilding industry and deterioration in homebuilding industry conditions;
- other economic changes nationally and in local markets, including declines in employment levels, increases in the number of foreclosures and wage levels, each of which are outside our control and may impact consumer confidence and affect the affordability of, and demand for, the homes we sell;
- elevated mortgage interest rates for prolonged periods, as well as further increases and reduced availability of mortgage financing due to, among other factors, additional actions by the Federal Reserve to address sharp increases in inflation;
- financial institution disruptions, such as the bank failures that occurred in 2023;
- continued supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances;
- continued shortages of or increased costs for labor used in housing production, and the level of quality and craftsmanship provided by such labor;
- inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled;
- factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive;
- decreased revenues;
- 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 cycle times and production and overhead cost structures;
- not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases;
- the availability and cost of land and the risks associated with the future value of our inventory;
- our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, 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;
- market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital);
- changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes;
- increased competition or delays in reacting to changing consumer preferences in home design;
- 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;
-
terrorist acts, protests and civil unrest, political uncertainty, acts of war or other factors over which the Company has no control, such as the conflict between
Russia andUkraine and the conflict in theGaza strip; - potential negative impacts of public health emergencies such as the COVID-19 pandemic;
- the potential recoverability of our deferred tax assets;
- increases in corporate tax rates;
- 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;
- the results of litigation or government proceedings and fulfillment of any related obligations;
- the impact of construction defect and home warranty claims;
- the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred;
- the impact of information technology failures, cybersecurity issues or data security breaches, including cybersecurity incidents impacting third-party service providers that we depend on to conduct our business;
- the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water and electricity (including availability of electrical equipment such as transformers and meters); and
- the success of our ESG initiatives, including our ability to meet our goal that by the end of 2025 every home we start will be Zero Energy Ready, as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Zero Energy Ready future.
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.
-Tables Follow-
BEAZER HOMES USA, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(Unaudited) |
|||||||
|
Three Months Ended |
||||||
|
December 31, |
||||||
in thousands (except per share data) |
|
2023 |
|
|
|
2022 |
|
Total revenue |
$ |
386,818 |
|
|
$ |
444,928 |
|
Home construction and land sales expenses |
|
309,088 |
|
|
|
358,970 |
|
Inventory impairments and abandonments |
|
— |
|
|
|
190 |
|
Gross profit |
|
77,730 |
|
|
|
85,768 |
|
Commissions |
|
13,246 |
|
|
|
14,105 |
|
General and administrative expenses |
|
41,986 |
|
|
|
40,648 |
|
Depreciation and amortization |
|
2,233 |
|
|
|
2,513 |
|
Operating income |
|
20,265 |
|
|
|
28,502 |
|
Loss on extinguishment of debt, net |
|
(13 |
) |
|
|
(515 |
) |
Other income, net |
|
2,657 |
|
|
|
576 |
|
Income from continuing operations before income taxes |
|
22,909 |
|
|
|
28,563 |
|
Expense from income taxes |
|
1,181 |
|
|
|
4,155 |
|
Income from continuing operations |
|
21,728 |
|
|
|
24,408 |
|
Loss from discontinued operations, net of tax |
|
— |
|
|
|
(77 |
) |
Net income |
$ |
21,728 |
|
|
$ |
24,331 |
|
Weighted-average number of shares: |
|
|
|
||||
Basic |
|
30,595 |
|
|
|
30,219 |
|
Diluted |
|
30,982 |
|
|
|
30,480 |
|
Basic income per share: |
|
|
|
||||
Continuing operations |
$ |
0.71 |
|
|
$ |
0.81 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
Total |
$ |
0.71 |
|
|
$ |
0.81 |
|
Diluted income per share: |
|
|
|
||||
Continuing operations |
$ |
0.70 |
|
|
$ |
0.80 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
Total |
$ |
0.70 |
|
|
$ |
0.80 |
|
|
Three Months Ended |
||||||
|
December 31, |
||||||
Capitalized Interest in Inventory |
|
2023 |
|
|
|
2022 |
|
Capitalized interest in inventory, beginning of period |
$ |
112,580 |
|
|
$ |
109,088 |
|
Interest incurred |
|
18,206 |
|
|
|
17,830 |
|
Capitalized interest amortized to home construction and land sales expenses |
|
(11,190 |
) |
|
|
(13,775 |
) |
Capitalized interest in inventory, end of period |
$ |
119,596 |
|
|
$ |
113,143 |
|
BEAZER HOMES USA, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited) |
|||||
in thousands (except share and per share data) |
December 31, 2023 |
|
September 30, 2023 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
104,226 |
|
$ |
345,590 |
Restricted cash |
|
34,098 |
|
|
40,699 |
Accounts receivable (net of allowance of |
|
65,302 |
|
|
45,598 |
Income tax receivable |
|
— |
|
|
— |
Owned inventory |
|
1,953,598 |
|
|
1,756,203 |
Deferred tax assets, net |
|
135,581 |
|
|
133,949 |
Property and equipment, net |
|
34,455 |
|
|
31,144 |
Operating lease right-of-use assets |
|
16,608 |
|
|
17,398 |
Goodwill |
|
11,376 |
|
|
11,376 |
Other assets |
|
34,207 |
|
|
29,076 |
Total assets |
$ |
2,389,451 |
|
$ |
2,411,033 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Trade accounts payable |
$ |
154,635 |
|
$ |
154,256 |
Operating lease liabilities |
|
18,291 |
|
|
18,969 |
Other liabilities |
|
120,870 |
|
|
156,961 |
Total debt (net of debt issuance costs of |
|
974,644 |
|
|
978,028 |
Total liabilities |
|
1,268,440 |
|
|
1,308,214 |
Stockholders’ equity: |
|
|
|
||
Preferred stock (par value |
|
— |
|
|
— |
Common stock (par value |
|
32 |
|
|
31 |
Paid-in capital |
|
861,241 |
|
|
864,778 |
Retained earnings |
|
259,738 |
|
|
238,010 |
Total stockholders’ equity |
|
1,121,011 |
|
|
1,102,819 |
Total liabilities and stockholders’ equity |
$ |
2,389,451 |
|
$ |
2,411,033 |
|
|
|
|
||
Inventory Breakdown |
|
|
|
||
Homes under construction |
$ |
766,090 |
|
$ |
644,363 |
Land under development |
|
940,022 |
|
|
870,740 |
Land held for future development |
|
19,879 |
|
|
19,879 |
Land held for sale |
|
17,461 |
|
|
18,579 |
Capitalized interest |
|
119,596 |
|
|
112,580 |
Model homes |
|
90,550 |
|
|
90,062 |
Total owned inventory |
$ |
1,953,598 |
|
$ |
1,756,203 |
BEAZER HOMES USA, INC. |
|||
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS |
|||
|
Three Months Ended December 31, |
||
SELECTED OPERATING DATA |
2023 |
|
2022 |
Closings: |
|
|
|
West region |
454 |
|
510 |
East region |
136 |
|
155 |
Southeast region |
153 |
|
168 |
Total closings |
743 |
|
833 |
|
|
|
|
New orders, net of cancellations: |
|
|
|
West region |
533 |
|
248 |
East region |
172 |
|
120 |
Southeast region |
118 |
|
114 |
Total new orders, net |
823 |
|
482 |
|
As of December 31, |
||||
Backlog units: |
|
2023 |
|
|
2022 |
West region |
|
1,112 |
|
|
995 |
East region |
|
359 |
|
|
375 |
Southeast region |
|
320 |
|
|
370 |
Total backlog units |
|
1,791 |
|
|
1,740 |
Aggregate dollar value of homes in backlog (in millions) |
$ |
932.8 |
|
$ |
940.9 |
ASP in backlog (in thousands) |
$ |
520.8 |
|
$ |
540.8 |
in thousands |
Three Months Ended December 31, |
||||
SUPPLEMENTAL FINANCIAL DATA |
|
2023 |
|
|
2022 |
Homebuilding revenue: |
|
|
|
||
West region |
$ |
234,409 |
|
$ |
274,322 |
East region |
|
71,753 |
|
|
86,031 |
Southeast region |
|
74,757 |
|
|
83,731 |
Total homebuilding revenue |
$ |
380,919 |
|
$ |
444,084 |
|
|
|
|
||
Revenue: |
|
|
|
||
Homebuilding |
$ |
380,919 |
|
$ |
444,084 |
Land sales and other |
|
5,899 |
|
|
844 |
Total revenue |
$ |
386,818 |
|
$ |
444,928 |
|
|
|
|
||
Gross profit: |
|
|
|
||
Homebuilding |
$ |
75,943 |
|
$ |
85,114 |
Land sales and other |
|
1,787 |
|
|
654 |
Total gross profit |
$ |
77,730 |
|
$ |
85,768 |
Reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales (each a non-GAAP financial measure) to their most directly comparable GAAP measures 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. These non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
|
Three Months Ended December 31, |
||||||||
in thousands |
2023 |
|
2022 |
||||||
Homebuilding gross profit/margin |
$ |
75,943 |
19.9 |
% |
|
$ |
85,114 |
19.2 |
% |
Inventory impairments and abandonments (I&A) |
|
— |
|
|
|
190 |
|
||
Homebuilding gross profit/margin excluding I&A |
|
75,943 |
19.9 |
% |
|
|
85,304 |
19.2 |
% |
Interest amortized to cost of sales |
|
11,190 |
|
|
|
13,775 |
|
||
Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales |
$ |
87,133 |
22.9 |
% |
|
$ |
99,079 |
22.3 |
% |
Reconciliation of Adjusted EBITDA (a non-GAAP financial measure) to total company net income, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing core operating results and underlying business trends by eliminating many of the differences in companies' respective capitalization, tax position, level of impairments, and other non-recurring items. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
|
Three Months Ended December 31, |
|
LTM Ended December 31,(a) |
||||||||
in thousands |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income |
$ |
21,728 |
|
$ |
24,331 |
|
$ |
156,008 |
|
$ |
210,150 |
Expense from income taxes |
|
1,181 |
|
|
4,133 |
|
|
20,984 |
|
|
50,940 |
Interest amortized to home construction and land sales expenses and capitalized interest impaired |
|
11,190 |
|
|
13,775 |
|
|
65,904 |
|
|
71,053 |
EBIT |
|
34,099 |
|
|
42,239 |
|
|
242,896 |
|
|
332,143 |
Depreciation and amortization |
|
2,233 |
|
|
2,513 |
|
|
11,918 |
|
|
12,992 |
EBITDA |
|
36,332 |
|
|
44,752 |
|
|
254,814 |
|
|
345,135 |
Stock-based compensation expense |
|
1,673 |
|
|
1,580 |
|
|
7,368 |
|
|
7,950 |
Loss on extinguishment of debt |
|
13 |
|
|
515 |
|
|
44 |
|
|
206 |
Inventory impairments and abandonments(b) |
|
— |
|
|
190 |
|
|
451 |
|
|
2,714 |
Severance expenses |
|
— |
|
|
111 |
|
|
224 |
|
|
111 |
Adjusted EBITDA |
$ |
38,018 |
|
$ |
47,148 |
|
$ |
262,901 |
|
$ |
356,116 |
(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." |
Reconciliation of net debt to net capitalization ratio (a non-GAAP financial measure) to total debt to total capitalization ratio, the most directly comparable GAAP measure, is provided for each period below. Management believes that net debt to net capitalization ratio is useful in understanding the leverage employed in our operations and as an indicator of our ability to obtain financing. This non-GAAP financial measure may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
in thousands |
As of December 31,
|
|
As of December 31,
|
||||
Total debt |
$ |
974,644 |
|
|
$ |
984,330 |
|
Stockholders' equity |
|
1,121,011 |
|
|
|
962,600 |
|
Total capitalization |
$ |
2,095,655 |
|
|
$ |
1,946,930 |
|
Total debt to total capitalization ratio |
|
46.5 |
% |
|
|
50.6 |
% |
|
|
|
|
||||
Total debt |
$ |
974,644 |
|
|
$ |
984,330 |
|
Less: cash and cash equivalents |
|
104,226 |
|
|
|
120,746 |
|
Net debt |
|
870,418 |
|
|
|
863,584 |
|
Stockholders' equity |
|
1,121,011 |
|
|
|
962,600 |
|
Net capitalization |
$ |
1,991,429 |
|
|
$ |
1,826,184 |
|
Net debt to net capitalization ratio |
|
43.7 |
% |
|
|
47.3 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240201473041/en/
Beazer Homes USA, Inc.
David I. Goldberg
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com
Source: Beazer Homes
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