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 28, 2016 |
BEAZER HOMES USA, INC. | ||||||||
Date: | April 28, 2016 | By: | /s/ Kenneth F. Khoury | |||||
Kenneth F. Khoury Executive Vice President, Chief Administrative Officer and General Counsel |
Three Months Ended March 31, | ||||||||||||
2016 | 2015 | Change* | ||||||||||
New Home Orders | 1,538 | 1,698 | (9.4 | )% | ||||||||
Orders per community per month | 3.1 | 3.5 | (11.4 | )% | ||||||||
Average active community count | 166 | 160 | 3.8 | % | ||||||||
Actual community count at month-end | 163 | 163 | — | % | ||||||||
Cancellation rates | 17.6 | % | 16.7 | % | 90 bps | |||||||
Total Home Closings | 1,150 | 936 | 22.9 | % | ||||||||
Average selling price from closings (in thousands) | $ | 328.0 | $ | 305.8 | 7.3 | % | ||||||
Homebuilding revenue (in millions) | $ | 377.3 | $ | 286.2 | 31.8 | % | ||||||
Homebuilding gross margin, excluding impairments and abandonments (I&A) | 15.9 | % | 18.3 | % | -240 bps | |||||||
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales | 20.2 | % | 21.7 | % | -150 bps | |||||||
Homebuilding gross margin, excluding I&A, interest amortized to cost of sales and unexpected warranty costs | 20.2 | % | 21.7 | % | -150 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (5.2 | ) | $ | (2.0 | ) | $ | (3.2 | ) | |||
(Benefit from) provision for income taxes (in millions) | $ | (3.9 | ) | $ | 0.1 | $ | (4.0 | ) | ||||
Loss from continuing operations (in millions) | $ | (1.3 | ) | $ | (2.1 | ) | $ | 0.7 | ||||
Basic and diluted loss per share from continuing operations | $ | (0.04 | ) | $ | (0.08 | ) | $ | 0.04 | ||||
Total Company land and land development spending (in millions) | $ | 83.6 | $ | 102.1 | $ | (18.5 | ) | |||||
Total Company Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 26.2 | $ | 19.7 | 32.5 | % | ||||||
LTM Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 160.1 | $ | 129.1 | 24.0 | % |
Six Months Ended March 31, | ||||||||||||
2016 | 2015 | Change* | ||||||||||
New Home Orders | 2,461 | 2,664 | (7.6 | )% | ||||||||
LTM orders per month per community | 2.6 | 2.8 | (7.1 | )% | ||||||||
Cancellation rates | 20.9 | % | 18.5 | % | 240 bps | |||||||
Total Home Closings | 2,199 | 1,821 | 20.8 | % | ||||||||
Average sales price from closings (in thousands) | $ | 324.6 | $ | 300.8 | 7.9 | % | ||||||
Homebuilding revenue (in millions) | $ | 713.8 | $ | 547.8 | 30.3 | % | ||||||
Homebuilding gross margin, excluding impairments and abandonments (I&A) | 16.7 | % | 16.0 | % | 70 bps | |||||||
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales | 20.8 | % | 19.3 | % | 150 bps | |||||||
Homebuilding gross margin, excluding I&A, interest amortized to cost of sales and unexpected warranty costs | 20.3 | % | 21.8 | % | -150 bps | |||||||
Loss from continuing operations before income taxes (in millions) | $ | (3.4 | ) | $ | (20.7 | ) | $ | 17.3 | ||||
Benefit from income taxes (in millions) | $ | (3.3 | ) | $ | (0.6 | ) | $ | (2.7 | ) | |||
Loss from continuing operations (in millions) | $ | (0.1 | ) | $ | (20.1 | ) | $ | 20.0 | ||||
Basic and diluted loss per share from continuing operations | $ | (0.01 | ) | $ | (0.76 | ) | $ | 0.75 | ||||
Total Company land and land development spending (in millions) | $ | 195.3 | $ | 247.6 | $ | (52.3 | ) | |||||
Total Company Adjusted EBITDA, excluding unexpected warranty costs and a litigation settlement in discontinued operations (in millions) | $ | 52.1 | $ | 36.0 | 44.5 | % |
As of March 31, | |||||||||||
2016 | 2015 | Change | |||||||||
Backlog units | 2,300 | 2,533 | (9.2 | )% | |||||||
Dollar value of backlog (in millions) | $ | 773.0 | $ | 814.1 | (5.1 | )% | |||||
ASP in backlog (in thousands) | $ | 336.1 | $ | 321.4 | 4.6 | % | |||||
Land and lots controlled | 25,132 | 27,794 | (9.6 | )% |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenue | $ | 385,607 | $ | 299,359 | $ | 730,056 | $ | 565,123 | |||||||
Home construction and land sales expenses | 324,216 | 245,446 | 609,727 | 475,992 | |||||||||||
Inventory impairments and abandonments | 1,825 | — | 3,181 | — | |||||||||||
Gross profit | 59,566 | 53,913 | 117,148 | 89,131 | |||||||||||
Commissions | 14,582 | 11,969 | 28,356 | 22,895 | |||||||||||
General and administrative expenses | 38,898 | 32,727 | 70,567 | 64,168 | |||||||||||
Depreciation and amortization | 3,056 | 2,781 | 6,047 | 5,122 | |||||||||||
Operating income (loss) | 3,030 | 6,436 | 12,178 | (3,054 | ) | ||||||||||
Equity in income (loss) of unconsolidated entities | (51 | ) | 82 | 9 | 224 | ||||||||||
Loss on extinguishment of debt | (1,631 | ) | — | (2,459 | ) | — | |||||||||
Other expense, net | (6,558 | ) | (8,473 | ) | (13,123 | ) | (17,907 | ) | |||||||
Loss from continuing operations before income taxes | (5,210 | ) | (1,955 | ) | (3,395 | ) | (20,737 | ) | |||||||
Expense (benefit) from income taxes | (3,898 | ) | 105 | (3,282 | ) | (591 | ) | ||||||||
Loss from continuing operations | (1,312 | ) | (2,060 | ) | (113 | ) | (20,146 | ) | |||||||
Income (loss) from discontinued operations, net of tax | 78 | 64 | (122 | ) | (4,190 | ) | |||||||||
Net income (loss) | $ | (1,234 | ) | $ | (1,996 | ) | $ | (235 | ) | $ | (24,336 | ) | |||
Weighted average number of shares: | |||||||||||||||
Basic | 31,808 | 26,480 | 31,783 | 26,469 | |||||||||||
Diluted | 31,808 | 26,480 | 31,783 | 26,469 | |||||||||||
Basic income (loss) per share: | |||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.76 | ) | |||
Discontinued operations | $ | — | $ | — | $ | — | $ | (0.16 | ) | ||||||
Total | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.92 | ) | |||
Diluted income (loss) per share: | |||||||||||||||
Continuing operations | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.76 | ) | |||
Discontinued operations | $ | — | $ | — | $ | — | $ | (0.16 | ) | ||||||
Total | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.01 | ) | $ | (0.92 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Capitalized interest in inventory, beginning of period | $ | 132,462 | $ | 99,868 | $ | 123,457 | $ | 87,619 | |||||||
Interest incurred | 30,467 | 30,259 | 60,555 | 60,542 | |||||||||||
Capitalized interest impaired | (84 | ) | — | (84 | ) | — | |||||||||
Interest expense not qualified for capitalization and included as other expense | (6,633 | ) | (7,695 | ) | (14,065 | ) | (17,442 | ) | |||||||
Capitalized interest amortized to house construction and land sales expenses | (16,073 | ) | (9,956 | ) | (29,724 | ) | (18,243 | ) | |||||||
Capitalized interest in inventory, end of period | $ | 140,139 | $ | 112,476 | $ | 140,139 | $ | 112,476 |
March 31, 2016 | September 30, 2015 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 134,933 | $ | 251,583 | |||
Restricted cash | 17,279 | 38,901 | |||||
Accounts receivable (net of allowance of $872 and $1,052, respectively) | 55,603 | 52,379 | |||||
Income tax receivable | 221 | 419 | |||||
Owned Inventory | 1,750,652 | 1,697,590 | |||||
Investments in unconsolidated entities | 9,015 | 13,734 | |||||
Deferred tax assets, net | 329,644 | 325,373 | |||||
Property and equipment, net | 20,699 | 22,230 | |||||
Other assets | 15,695 | 18,994 | |||||
Total assets | $ | 2,333,741 | $ | 2,421,203 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Trade accounts payable | $ | 98,556 | $ | 113,539 | |||
Other liabilities | 142,028 | 148,966 | |||||
Total debt (net of discounts of $5,272 and $3,639, respectively) | 1,459,605 | 1,528,275 | |||||
Total liabilities | $ | 1,700,189 | $ | 1,790,780 | |||
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, 33,092,278 issued and outstanding and 32,660,583 issued and outstanding, respectively) | 33 | 33 | |||||
Paid-in capital | 860,917 | 857,553 | |||||
Accumulated deficit | (227,398 | ) | (227,163 | ) | |||
Total stockholders’ equity | 633,552 | 630,423 | |||||
Total liabilities and stockholders’ equity | $ | 2,333,741 | $ | 2,421,203 | |||
Inventory Breakdown | |||||||
Homes under construction | $ | 446,698 | $ | 377,281 | |||
Development projects in progress | 777,369 | 809,900 | |||||
Land held for future development | 260,222 | 270,990 | |||||
Land held for sale | 49,500 | 44,555 | |||||
Capitalized interest | 140,139 | 123,457 | |||||
Model homes | 76,724 | 71,407 | |||||
Total owned inventory | $ | 1,750,652 | $ | 1,697,590 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||
SELECTED OPERATING DATA | 2016 | 2015 | 2016 | 2015 | ||||||||||
Closings: | ||||||||||||||
West region | 554 | 386 | 1,046 | 702 | ||||||||||
East region | 277 | 269 | 534 | 574 | ||||||||||
Southeast region | 319 | 281 | 619 | 545 | ||||||||||
Total closings | 1,150 | 936 | 2,199 | 1,821 | ||||||||||
New orders, net of cancellations: | ||||||||||||||
West region | 737 | 715 | 1,159 | 1,120 | ||||||||||
East region | 391 | 488 | 639 | 774 | ||||||||||
Southeast region | 410 | 495 | 663 | 770 | ||||||||||
Total new orders, net | 1,538 | 1,698 | 2,461 | 2,664 | ||||||||||
As of March 31, | ||||||||||||||
2016 | 2015 | |||||||||||||
Backlog units at end of period: | ||||||||||||||
West region | 1,068 | 975 | ||||||||||||
East region | 592 | 800 | ||||||||||||
Southeast region | 640 | 758 | ||||||||||||
Total backlog units | 2,300 | 2,533 | ||||||||||||
Dollar value of backlog at end of period (in millions) | $ | 773.0 | $ | 814.1 | ||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Homebuilding revenue: | ||||||||||||||||
West region | $ | 176,940 | $ | 108,766 | $ | 334,136 | $ | 195,084 | ||||||||
East region | 101,862 | 96,758 | 196,207 | 198,590 | ||||||||||||
Southeast region | 98,453 | 80,698 | 183,505 | 154,130 | ||||||||||||
Total homebuilding revenue | $ | 377,255 | $ | 286,222 | $ | 713,848 | $ | 547,804 | ||||||||
Revenues: | ||||||||||||||||
Homebuilding | $ | 377,255 | $ | 286,222 | $ | 713,848 | $ | 547,804 | ||||||||
Land sales and other | 8,352 | 13,137 | 16,208 | 17,319 | ||||||||||||
Total revenues | $ | 385,607 | $ | 299,359 | $ | 730,056 | $ | 565,123 | ||||||||
Gross profit: | ||||||||||||||||
Homebuilding | $ | 58,275 | $ | 52,379 | $ | 116,338 | $ | 87,656 | ||||||||
Land sales and other | 1,291 | 1,534 | 810 | 1,475 | ||||||||||||
Total gross profit | $ | 59,566 | $ | 53,913 | $ | 117,148 | $ | 89,131 |
Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
Homebuilding gross profit | $ | 58,275 | 15.4 | % | $ | 52,379 | 18.3 | % | $ | 116,338 | 16.3 | % | $ | 87,656 | 16.0 | % | |||||||
Inventory impairments and abandonments (I&A) | 1,825 | — | 2,613 | — | |||||||||||||||||||
Homebuilding gross profit before I&A | 60,100 | 15.9 | % | 52,379 | 18.3 | % | 118,951 | 16.7 | % | 87,656 | 16.0 | % | |||||||||||
Interest amortized to cost of sales | 16,073 | 9,782 | 29,440 | 17,976 | |||||||||||||||||||
Homebuilding gross profit before I&A and interest amortized to cost of sales | 76,173 | 20.2 | % | 62,161 | 21.7 | % | 148,391 | 20.8 | % | 105,632 | 19.3 | % | |||||||||||
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries) | — | — | (3,612 | ) | 13,582 | ||||||||||||||||||
Homebuilding gross profit before I&A, interest amortized to cost of sales and unexpected warranty costs | $ | 76,173 | 20.2 | % | $ | 62,161 | 21.7 | % | $ | 144,779 | 20.3 | % | $ | 119,214 | 21.8 | % |
Three Months Ended March 31, | Six Months Ended March 31, | LTM Ended March 31, (a) | ||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Net income (loss) | $ | (1,234 | ) | $ | (1,996 | ) | $ | (235 | ) | $ | (24,336 | ) | $ | 368,195 | $ | 23,156 | ||||||||
Provision (benefit) from income taxes | (3,865 | ) | 103 | (3,359 | ) | (594 | ) | (328,692 | ) | (42,392 | ) | |||||||||||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired and interest expense not qualified for capitalization | 22,790 | 17,651 | 43,873 | 35,685 | 94,174 | 82,328 | ||||||||||||||||||
Depreciation and amortization and stock compensation amortization | 5,087 | 4,322 | 9,834 | 8,037 | 21,270 | 16,899 | ||||||||||||||||||
Inventory impairments and abandonments (b) | 1,741 | — | 3,097 | — | 6,206 | 7,151 | ||||||||||||||||||
Loss on debt extinguishment | 1,631 | — | 2,459 | — | 2,539 | 19,764 | ||||||||||||||||||
Adjusted EBITDA | $ | 26,150 | $ | 20,080 | $ | 55,669 | $ | 18,792 | $ | 163,692 | $ | 106,906 | ||||||||||||
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries) | — | — | (3,612 | ) | 13,582 | (3,612 | ) | 17,872 | ||||||||||||||||
Unexpected warranty costs related to water intrusion issues in New Jersey (net of expected insurance recoveries) | — | — | — | — | — | 648 | ||||||||||||||||||
Litigation settlement in discontinued operations | — | (340 | ) | — | 3,660 | — | 3,660 | |||||||||||||||||
Adjusted EBITDA excluding unexpected warranty costs and a litigation settlement in discontinued operations | $ | 26,150 | $ | 19,740 | $ | 52,057 | $ | 36,034 | $ | 160,080 | $ | 129,086 |