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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Beazer Homes USA Inc New | NYSE:BZH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.99 | 3.67% | 28.00 | 28.90 | 27.59 | 27.60 | 255,601 | 19:48:50 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
DELAWARE
|
|
58-2086934
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. employer
Identification no.)
|
Large accelerated filer
|
¨
|
Accelerated filer
|
x
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
Class
|
|
Outstanding at February 3, 2017
|
Common Stock, $0.001 par value
|
|
33,544,628
|
•
|
economic changes nationally or in local markets, changes in consumer confidence, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market;
|
•
|
the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions;
|
•
|
factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs on communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure;
|
•
|
the availability and cost of land and the risks associated with the future value of our inventory, such as additional asset impairment charges or writedowns;
|
•
|
estimates related to homes to be delivered in the future (backlog) are imprecise, as they are subject to various cancellation risks that cannot be fully controlled;
|
•
|
shortages of or increased prices for labor, land or raw materials used in housing production and the level of quality and craftsmanship provided by our subcontractors;
|
•
|
our cost of and ability to access capital, due to factors such as limitations in the capital markets or adverse credit market conditions, and otherwise meet our ongoing liquidity needs, including the impact of any downgrades of our credit ratings or reductions in our tangible net worth or liquidity levels;
|
•
|
our ability to reduce our outstanding indebtedness and to comply with covenants in our debt agreements or satisfy such obligations through repayment or refinancing;
|
•
|
a substantial increase in mortgage interest rates, increased disruption in the availability of mortgage financing, a change in tax laws regarding the deductibility of mortgage interest for tax purposes or an increased number of foreclosures;
|
•
|
increased competition or delays in reacting to changing consumer preferences in home design;
|
•
|
continuing severe weather conditions 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;
|
•
|
estimates related to the potential recoverability of our deferred tax assets and a potential reduction in corporate tax rates that could reduce the usefulness of our existing deferred tax assets;
|
•
|
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, including water intrusion issues in Florida;
|
•
|
the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred;
|
•
|
the performance of our unconsolidated entities and our unconsolidated entity partners;
|
•
|
the impact of information technology failures or data security breaches;
|
•
|
terrorist acts, natural disasters, acts of war or other factors over which the Company has little or no control; or
|
•
|
the impact on homebuilding in key markets of governmental regulations limiting the availability of water.
|
|
December 31,
2016 |
|
September 30,
2016 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
158,623
|
|
|
$
|
228,871
|
|
Restricted cash
|
15,963
|
|
|
14,405
|
|
||
Accounts receivable (net of allowance of $350 and $354, respectively)
|
51,797
|
|
|
53,226
|
|
||
Income tax receivable
|
288
|
|
|
292
|
|
||
Owned inventory
|
1,618,544
|
|
|
1,569,279
|
|
||
Investments in unconsolidated entities
|
5,065
|
|
|
10,470
|
|
||
Deferred tax assets, net
|
312,666
|
|
|
309,955
|
|
||
Property and equipment, net
|
19,335
|
|
|
19,138
|
|
||
Other assets
|
5,862
|
|
|
7,522
|
|
||
Total assets
|
$
|
2,188,143
|
|
|
$
|
2,213,158
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Trade accounts payable
|
$
|
86,730
|
|
|
$
|
104,174
|
|
Other liabilities
|
121,711
|
|
|
134,253
|
|
||
Total debt (net of premium of $1,535 and $1,482, respectively, and debt issuance costs of $14,509 and $15,514, respectively)
|
1,336,483
|
|
|
1,331,878
|
|
||
Total liabilities
|
1,544,924
|
|
|
1,570,305
|
|
||
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, 33,545,721 issued and outstanding and 33,071,331 issued and outstanding, respectively)
|
34
|
|
|
33
|
|
||
Paid-in capital
|
867,084
|
|
|
865,290
|
|
||
Accumulated deficit
|
(223,899
|
)
|
|
(222,470
|
)
|
||
Total stockholders’ equity
|
643,219
|
|
|
642,853
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,188,143
|
|
|
$
|
2,213,158
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Total revenue
|
$
|
339,241
|
|
|
$
|
344,449
|
|
Home construction and land sales expenses
|
285,578
|
|
|
285,511
|
|
||
Inventory impairments and abandonments
|
—
|
|
|
1,356
|
|
||
Gross profit
|
53,663
|
|
|
57,582
|
|
||
Commissions
|
13,323
|
|
|
13,774
|
|
||
General and administrative expenses
|
36,388
|
|
|
31,669
|
|
||
Depreciation and amortization
|
2,677
|
|
|
2,991
|
|
||
Operating income
|
1,275
|
|
|
9,148
|
|
||
Equity in income of unconsolidated entities
|
22
|
|
|
60
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
(828
|
)
|
||
Other expense, net
|
(5,196
|
)
|
|
(6,565
|
)
|
||
Income (loss) from continuing operations before income taxes
|
(3,899
|
)
|
|
1,815
|
|
||
Expense (benefit) from income taxes
|
(2,540
|
)
|
|
616
|
|
||
Income (loss) from continuing operations
|
(1,359
|
)
|
|
1,199
|
|
||
Loss from discontinued operations, net of tax
|
(70
|
)
|
|
(200
|
)
|
||
Net income (loss) and comprehensive income (loss)
|
$
|
(1,429
|
)
|
|
$
|
999
|
|
Weighted average number of shares:
|
|
|
|
||||
Basic
|
31,893
|
|
|
31,757
|
|
||
Diluted
|
31,893
|
|
|
31,844
|
|
||
Basic income (loss) per share:
|
|
|
|
||||
Continuing operations
|
$
|
(0.04
|
)
|
|
$
|
0.04
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Total
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
Diluted income (loss) per share:
|
|
|
|
||||
Continuing operations
|
$
|
(0.04
|
)
|
|
$
|
0.04
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
Total
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income (loss)
|
$
|
(1,429
|
)
|
|
$
|
999
|
|
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
2,677
|
|
|
2,991
|
|
||
Stock-based compensation expense
|
2,176
|
|
|
1,756
|
|
||
Inventory impairments and abandonments
|
—
|
|
|
1,356
|
|
||
Deferred and other income tax expense (benefit)
|
(2,707
|
)
|
|
318
|
|
||
Write-off of deposit on legacy land investment
|
2,700
|
|
|
—
|
|
||
Gain on sale of fixed assets
|
(46
|
)
|
|
(771
|
)
|
||
Change in allowance for doubtful accounts
|
(4
|
)
|
|
(131
|
)
|
||
Equity in income of unconsolidated entities
|
(22
|
)
|
|
(60
|
)
|
||
Cash distributions of income from unconsolidated entities
|
6
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Decrease in accounts receivable
|
1,433
|
|
|
1,955
|
|
||
Decrease in income tax receivable
|
4
|
|
|
150
|
|
||
Increase in inventory
|
(39,543
|
)
|
|
(28,168
|
)
|
||
Decrease in other assets
|
1,906
|
|
|
1,660
|
|
||
Decrease in trade accounts payable
|
(17,444
|
)
|
|
(32,144
|
)
|
||
Decrease in other liabilities
|
(12,541
|
)
|
|
(27,760
|
)
|
||
Net cash used in operating activities
|
(62,834
|
)
|
|
(77,849
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(2,874
|
)
|
|
(2,663
|
)
|
||
Proceeds from sale of fixed assets
|
46
|
|
|
2,437
|
|
||
Investments in unconsolidated entities
|
(1,397
|
)
|
|
(1,779
|
)
|
||
Return of capital from unconsolidated entities
|
1,621
|
|
|
1,142
|
|
||
Increases in restricted cash
|
(3,646
|
)
|
|
(1,119
|
)
|
||
Decreases in restricted cash
|
2,088
|
|
|
669
|
|
||
Net cash used in investing activities
|
(4,162
|
)
|
|
(1,313
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Repayment of debt
|
(2,525
|
)
|
|
(26,926
|
)
|
||
Debt issuance costs
|
(340
|
)
|
|
(413
|
)
|
||
Other financing activities
|
(387
|
)
|
|
(201
|
)
|
||
Net cash used in financing activities
|
(3,252
|
)
|
|
(27,540
|
)
|
||
Decrease in cash and cash equivalents
|
(70,248
|
)
|
|
(106,702
|
)
|
||
Cash and cash equivalents at beginning of period
|
228,871
|
|
|
251,583
|
|
||
Cash and cash equivalents at end of period
|
$
|
158,623
|
|
|
$
|
144,881
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Supplemental disclosure of non-cash activity:
|
|
|
|
||||
Non-cash land acquisitions
(a)
|
$
|
5,197
|
|
|
$
|
3,769
|
|
Land acquisitions for debt
|
5,555
|
|
|
—
|
|
||
Supplemental disclosure of cash activity:
|
|
|
|
||||
Interest payments
|
11,824
|
|
|
39,740
|
|
||
Income tax payments
|
178
|
|
|
146
|
|
||
Tax refunds received
|
4
|
|
|
150
|
|
(In thousands)
|
December 31, 2016
|
|
September 30, 2016
|
||||
Beazer’s investment in unconsolidated entities
|
$
|
5,065
|
|
|
$
|
10,470
|
|
Total equity of unconsolidated entities
|
14,585
|
|
|
31,615
|
|
||
Total outstanding borrowings of unconsolidated entities
|
17,725
|
|
|
14,702
|
|
|
|
|
|
(In thousands)
|
December 31, 2016
|
|
September 30, 2016
|
||||
Homes under construction
|
$
|
422,493
|
|
|
$
|
377,191
|
|
Development projects in progress
|
778,078
|
|
|
742,417
|
|
||
Land held for future development
|
172,824
|
|
|
213,006
|
|
||
Land held for sale
|
28,021
|
|
|
29,696
|
|
||
Capitalized interest
|
144,299
|
|
|
138,108
|
|
||
Model homes
|
72,829
|
|
|
68,861
|
|
||
Total owned inventory
|
$
|
1,618,544
|
|
|
$
|
1,569,279
|
|
(In thousands)
|
Projects in
Progress
(a)
|
|
Land Held for Future Development
|
|
Land Held
for Sale
|
|
Total Owned
Inventory
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
West Segment
|
$
|
619,044
|
|
|
$
|
147,861
|
|
|
$
|
7,699
|
|
|
$
|
774,604
|
|
East Segment
|
305,593
|
|
|
14,004
|
|
|
18,010
|
|
|
337,607
|
|
||||
Southeast Segment
|
297,336
|
|
|
10,959
|
|
|
1,212
|
|
|
309,507
|
|
||||
Corporate and unallocated
(b)
|
195,726
|
|
|
—
|
|
|
1,100
|
|
|
196,826
|
|
||||
Total
|
$
|
1,417,699
|
|
|
$
|
172,824
|
|
|
$
|
28,021
|
|
|
$
|
1,618,544
|
|
September 30, 2016
|
|
|
|
|
|
|
|
||||||||
West Segment
|
$
|
586,420
|
|
|
$
|
172,015
|
|
|
$
|
6,577
|
|
|
$
|
765,012
|
|
East Segment
|
276,785
|
|
|
30,036
|
|
|
20,930
|
|
|
327,751
|
|
||||
Southeast Segment
|
276,385
|
|
|
10,955
|
|
|
1,090
|
|
|
288,430
|
|
||||
Corporate and unallocated
(b)
|
186,987
|
|
|
—
|
|
|
1,099
|
|
|
188,086
|
|
||||
Total
|
$
|
1,326,577
|
|
|
$
|
213,006
|
|
|
$
|
29,696
|
|
|
$
|
1,569,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
||
(In thousands)
|
2015
|
||
Land Held for Sale:
|
|
||
East
|
$
|
197
|
|
Southeast
|
371
|
|
|
Total impairment charges on land held for sale
|
$
|
568
|
|
Abandonments:
|
|
||
Southeast
|
$
|
788
|
|
Total abandonments charges
|
$
|
788
|
|
Total impairment and abandonment charges
|
$
|
1,356
|
|
(In thousands)
|
Deposits &
Non-refundable
Pre-acquisition
Costs Incurred
|
|
Remaining
Obligation
|
||||
As of December 31, 2016
|
|
|
|
||||
Unconsolidated lot option agreements
|
$
|
78,001
|
|
|
$
|
412,881
|
|
As of September 30, 2016
|
|
|
|
||||
Unconsolidated lot option agreements
|
$
|
80,433
|
|
|
$
|
446,414
|
|
|
Three Months Ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Capitalized interest in inventory, beginning of period
|
$
|
138,108
|
|
|
$
|
123,457
|
|
Interest incurred
|
27,087
|
|
|
30,088
|
|
||
Interest expense not qualified for capitalization and included as other expense
(a)
|
(5,252
|
)
|
|
(7,432
|
)
|
||
Capitalized interest amortized to home construction and land sales expenses
(b)
|
(15,644
|
)
|
|
(13,651
|
)
|
||
Capitalized interest in inventory, end of period
|
$
|
144,299
|
|
|
$
|
132,462
|
|
(In thousands)
|
Maturity Date
|
|
December 31, 2016
|
|
September 30, 2016
|
||||
5 3/4% Senior Notes
|
June 2019
|
|
$
|
321,393
|
|
|
$
|
321,393
|
|
7 1/2% Senior Notes
|
September 2021
|
|
198,000
|
|
|
198,000
|
|
||
8 3/4% Senior Notes
|
March 2022
|
|
500,000
|
|
|
500,000
|
|
||
7 1/4% Senior Notes
|
February 2023
|
|
199,834
|
|
|
199,834
|
|
||
Unamortized debt premium, net
|
|
|
2,260
|
|
|
2,362
|
|
||
Unamortized debt issuance costs
|
|
|
(13,314
|
)
|
|
(14,063
|
)
|
||
Total Senior Notes, net
|
|
|
1,208,173
|
|
|
1,207,526
|
|
||
Term Loan (net of unamortized discount of $725 and $880, respectively, and unamortized debt issuance costs of $1,195 and $1,451, respectively)
|
March 2018
|
|
53,080
|
|
|
52,669
|
|
||
Junior Subordinated Notes (net of unamortized accretion of $40,387 and $40,903, respectively)
|
July 2036
|
|
60,387
|
|
|
59,870
|
|
||
Other Secured Notes payable
|
Various Dates
|
|
14,843
|
|
|
11,813
|
|
||
Total debt, net
|
|
|
$
|
1,336,483
|
|
|
$
|
1,331,878
|
|
Senior Note Description
|
|
Issuance Date
|
|
Maturity Date
|
|
Redemption Terms
|
5 3/4% Senior Notes
|
|
April 2014
|
|
June 2019
|
|
Callable at any time before March 15, 2019, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; on or after March 15, 2019, callable at 100% of the principal amount plus, in each case, accrued and unpaid interest
|
7 1/2% Senior Notes
|
|
September 2013
|
|
September 2021
|
|
Callable at a redemption price equal to 105.625% of the principal amount; on or after September 15, 2017, callable at a redemption price equal to 103.75% of the principal amount; on or after September 15, 2018, callable at a redemption price equal to 101.875% of the principal amount; on or after September 15, 2019, callable at 100% of the principal amount plus, in each case, accrued and unpaid interest
|
8 3/4% Senior Notes
|
|
September 2016
|
|
March 2022
|
|
Callable at any time prior to March 15, 2019, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; on or after March 15, 2019, callable at a redemption price equal to 104.375% of the principal amount; on or after March 15, 2020, callable at a redemption price equal to 102.188% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 100% of the principal amount plus, in each case, accrued and unpaid interest
|
7 1/4% Senior Notes
|
|
February 2013
|
|
February 2023
|
|
Callable at any time prior to February 1, 2018, in whole or in part, at a redemption price equal to 100% of the principal amount, plus a customary make-whole premium; on or after February 1, 2018, callable at a redemption price equal to 103.625% of the principal amount; on or after February 1, 2019, callable at a redemption price equal to 102.41% of the principal amount; on or after February 1, 2020, callable at a redemption price equal to 101.208% of the principal amount; on or after February 1, 2021, callable at 100% of the principal amount plus, in each case, accrued and unpaid interest
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Balance at beginning of period
|
$
|
39,131
|
|
|
$
|
27,681
|
|
Accruals for warranties issued
(a)
|
2,658
|
|
|
2,615
|
|
||
Changes in liability related to warranties existing in prior periods
(b)
|
5,392
|
|
|
10,600
|
|
||
Payments made
(b)
|
(14,872
|
)
|
|
(11,983
|
)
|
||
Balance at end of period
|
$
|
32,309
|
|
|
$
|
28,913
|
|
•
|
Level 1 – Quoted prices in active markets for identical assets or liabilities;
|
•
|
Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and
|
•
|
Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability.
|
(In thousands)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Three Months Ended December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan assets
(a)
|
$
|
—
|
|
|
$
|
1,006
|
|
|
$
|
—
|
|
|
$
|
1,006
|
|
Three Months Ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan assets
(a)
|
—
|
|
|
747
|
|
|
—
|
|
|
747
|
|
||||
Land held for sale
(b)
|
—
|
|
|
—
|
|
|
16,213
|
|
(c)
|
16,213
|
|
||||
As of September 30, 2016
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plan assets
(a)
|
—
|
|
|
765
|
|
|
—
|
|
|
765
|
|
|
As of December 31, 2016
|
|
As of September 30, 2016
|
||||||||||||
(In thousands)
|
Carrying
Amount (a) |
|
Fair Value
|
|
Carrying
Amount (a) |
|
Fair Value
|
||||||||
Senior Notes
(b)
|
$
|
1,208,173
|
|
|
$
|
1,282,912
|
|
|
$
|
1,207,526
|
|
|
$
|
1,253,614
|
|
Term Loan
|
53,080
|
|
|
53,080
|
|
|
52,669
|
|
|
52,669
|
|
||||
Junior Subordinated Notes
|
60,387
|
|
|
60,387
|
|
|
59,870
|
|
|
59,870
|
|
||||
|
$
|
1,321,640
|
|
|
$
|
1,396,379
|
|
|
$
|
1,320,065
|
|
|
$
|
1,366,153
|
|
|
|
Three Months Ended December 31,
|
||||||
(In thousands)
|
|
2016
|
|
2015
|
||||
Stock options expense
|
|
$
|
107
|
|
|
$
|
148
|
|
Restricted stock awards expense
|
|
2,069
|
|
|
1,608
|
|
||
Before tax stock-based compensation expense
|
|
2,176
|
|
|
1,756
|
|
||
Tax benefit
|
|
(774
|
)
|
|
(597
|
)
|
||
After tax stock-based compensation expense
|
|
$
|
1,402
|
|
|
$
|
1,159
|
|
|
|
Three Months Ended
|
||
|
|
December 31, 2016
|
||
Expected life of options
|
|
5.4 years
|
|
|
Expected volatility
|
|
50.26
|
%
|
|
Expected dividends
|
|
—
|
|
|
Weighted average risk-free interest rate
|
|
1.83
|
%
|
|
Weighted average fair value
|
|
$
|
5.87
|
|
|
Three Months Ended
|
|||||
|
December 31, 2016
|
|||||
|
Shares
|
|
Weighted Average
Exercise Price |
|||
Outstanding at beginning of period
|
672,669
|
|
|
$
|
16.49
|
|
Granted
|
27,110
|
|
|
12.52
|
|
|
Forfeited
|
(1,334
|
)
|
|
8.37
|
|
|
Outstanding at end of period
|
698,445
|
|
|
$
|
16.35
|
|
Exercisable at end of period
|
567,599
|
|
|
$
|
17.79
|
|
Vested or expected to vest in the future
|
694,487
|
|
|
$
|
16.40
|
|
|
Three Months Ended December 31, 2016
|
|||||||||||||||||||
|
Performance-Based Restricted Stock
|
|
Time-Based Restricted Stock
|
|
Total Restricted Stock
|
|||||||||||||||
|
Shares
|
|
Weighted Average
Grant Date Fair Value |
|
Shares
|
|
Weighted Average
Grant Date Fair Value |
|
Shares
|
|
Weighted Average
Grant Date Fair Value |
|||||||||
Beginning of period
|
448,693
|
|
|
$
|
16.71
|
|
|
807,124
|
|
|
$
|
17.52
|
|
|
1,255,817
|
|
|
$
|
17.23
|
|
Granted
|
263,696
|
|
|
13.60
|
|
|
269,402
|
|
|
12.51
|
|
|
533,098
|
|
|
13.05
|
|
|||
Vested
|
—
|
|
|
—
|
|
|
(183,730
|
)
|
|
15.49
|
|
|
(183,730
|
)
|
|
15.49
|
|
|||
Forfeited
|
(28,690
|
)
|
|
11.65
|
|
|
—
|
|
|
—
|
|
|
(28,690
|
)
|
|
11.65
|
|
|||
End of period
|
683,699
|
|
|
$
|
15.72
|
|
|
892,796
|
|
|
$
|
16.43
|
|
|
1,576,495
|
|
|
$
|
16.12
|
|
|
|
Three Months Ended December 31,
|
||||
(In thousands)
|
|
2016
|
|
2015
|
||
Basic shares
|
|
31,893
|
|
|
31,757
|
|
Shares issuable upon vesting/exercise of stock awards/options
|
|
—
|
|
|
87
|
|
Diluted shares
|
|
31,893
|
|
|
31,844
|
|
(In thousands)
|
December 31, 2016
|
|
September 30, 2016
|
||||
Accrued warranty expense
|
$
|
32,309
|
|
|
$
|
39,131
|
|
Accrued interest
|
25,089
|
|
|
11,530
|
|
||
Accrued bonuses and deferred comp
|
14,464
|
|
|
30,466
|
|
||
Customer deposits
|
13,273
|
|
|
12,140
|
|
||
Litigation accrual
|
9,187
|
|
|
10,178
|
|
||
Income tax liabilities
|
1,772
|
|
|
1,718
|
|
||
Other
|
25,617
|
|
|
29,090
|
|
||
Total other liabilities
|
$
|
121,711
|
|
|
$
|
134,253
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Operating income
|
|
|
|
||||
West
|
$
|
21,015
|
|
|
$
|
16,786
|
|
East
(a)
|
1,557
|
|
|
4,147
|
|
||
Southeast
(b)
|
5,015
|
|
|
10,657
|
|
||
Segment total
|
27,587
|
|
|
31,590
|
|
||
Corporate and unallocated
(c)
|
(26,312
|
)
|
|
(22,442
|
)
|
||
Total operating income
|
$
|
1,275
|
|
|
$
|
9,148
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Depreciation and amortization
|
|
|
|
||||
West
|
$
|
1,248
|
|
|
$
|
1,218
|
|
East
|
529
|
|
|
797
|
|
||
Southeast
|
466
|
|
|
449
|
|
||
Segment total
|
2,243
|
|
|
2,464
|
|
||
Corporate and unallocated
(b)
|
434
|
|
|
527
|
|
||
Total depreciation and amortization
|
$
|
2,677
|
|
|
$
|
2,991
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Capital Expenditures
|
|
|
|
||||
West
|
$
|
1,184
|
|
|
$
|
1,133
|
|
East
|
771
|
|
|
467
|
|
||
Southeast
|
618
|
|
|
969
|
|
||
Corporate and unallocated
|
301
|
|
|
94
|
|
||
Total capital expenditures
|
$
|
2,874
|
|
|
$
|
2,663
|
|
(In thousands)
|
December 31, 2016
|
|
September 30, 2016
|
||||
Assets
|
|
|
|
||||
West
|
$
|
796,962
|
|
|
$
|
778,521
|
|
East
|
346,524
|
|
|
344,898
|
|
||
Southeast
|
344,074
|
|
|
333,501
|
|
||
Corporate and unallocated
(a)
|
700,583
|
|
|
756,238
|
|
||
Total assets
|
$
|
2,188,143
|
|
|
$
|
2,213,158
|
|
|
Beazer Homes
USA, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated
Beazer Homes USA, Inc. |
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
159,886
|
|
|
$
|
4,292
|
|
|
$
|
853
|
|
|
$
|
(6,408
|
)
|
|
$
|
158,623
|
|
Restricted cash
|
14,683
|
|
|
1,280
|
|
|
—
|
|
|
—
|
|
|
15,963
|
|
|||||
Accounts receivable (net of allowance of $350)
|
—
|
|
|
51,797
|
|
|
—
|
|
|
—
|
|
|
51,797
|
|
|||||
Income tax receivable
|
288
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
288
|
|
|||||
Owned inventory
|
—
|
|
|
1,618,544
|
|
|
—
|
|
|
—
|
|
|
1,618,544
|
|
|||||
Investments in unconsolidated entities
|
773
|
|
|
4,292
|
|
|
—
|
|
|
—
|
|
|
5,065
|
|
|||||
Deferred tax assets, net
|
312,666
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312,666
|
|
|||||
Property and equipment, net
|
—
|
|
|
19,335
|
|
|
—
|
|
|
—
|
|
|
19,335
|
|
|||||
Investments in subsidiaries
|
713,629
|
|
|
—
|
|
|
—
|
|
|
(713,629
|
)
|
|
—
|
|
|||||
Intercompany
|
789,502
|
|
|
—
|
|
|
2,376
|
|
|
(791,878
|
)
|
|
—
|
|
|||||
Other assets
|
822
|
|
|
5,040
|
|
|
—
|
|
|
—
|
|
|
5,862
|
|
|||||
Total assets
|
$
|
1,992,249
|
|
|
$
|
1,704,580
|
|
|
$
|
3,229
|
|
|
$
|
(1,511,915
|
)
|
|
$
|
2,188,143
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Trade accounts payable
|
$
|
—
|
|
|
$
|
86,730
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
86,730
|
|
Other liabilities
|
25,014
|
|
|
96,345
|
|
|
352
|
|
|
—
|
|
|
121,711
|
|
|||||
Intercompany
|
2,376
|
|
|
795,910
|
|
|
—
|
|
|
(798,286
|
)
|
|
—
|
|
|||||
Total debt (net of premium and debt issuance costs)
|
1,321,640
|
|
|
14,843
|
|
|
—
|
|
|
—
|
|
|
1,336,483
|
|
|||||
Total liabilities
|
1,349,030
|
|
|
993,828
|
|
|
352
|
|
|
(798,286
|
)
|
|
1,544,924
|
|
|||||
Stockholders’ equity
|
643,219
|
|
|
710,752
|
|
|
2,877
|
|
|
(713,629
|
)
|
|
643,219
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
1,992,249
|
|
|
$
|
1,704,580
|
|
|
$
|
3,229
|
|
|
$
|
(1,511,915
|
)
|
|
$
|
2,188,143
|
|
|
Beazer Homes
USA, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated
Beazer Homes USA, Inc. |
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
215,646
|
|
|
$
|
16,866
|
|
|
$
|
859
|
|
|
$
|
(4,500
|
)
|
|
$
|
228,871
|
|
Restricted cash
|
12,867
|
|
|
1,538
|
|
|
—
|
|
|
—
|
|
|
14,405
|
|
|||||
Accounts receivable (net of allowance of $354)
|
—
|
|
|
53,225
|
|
|
1
|
|
|
—
|
|
|
53,226
|
|
|||||
Income tax receivable
|
292
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|||||
Owned inventory
|
—
|
|
|
1,569,279
|
|
|
—
|
|
|
—
|
|
|
1,569,279
|
|
|||||
Investments in unconsolidated entities
|
773
|
|
|
9,697
|
|
|
—
|
|
|
—
|
|
|
10,470
|
|
|||||
Deferred tax assets, net
|
309,955
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
309,955
|
|
|||||
Property and equipment, net
|
—
|
|
|
19,138
|
|
|
—
|
|
|
—
|
|
|
19,138
|
|
|||||
Investments in subsidiaries
|
701,931
|
|
|
—
|
|
|
—
|
|
|
(701,931
|
)
|
|
—
|
|
|||||
Intercompany
|
734,766
|
|
|
—
|
|
|
2,574
|
|
|
(737,340
|
)
|
|
—
|
|
|||||
Other assets
|
577
|
|
|
6,930
|
|
|
15
|
|
|
—
|
|
|
7,522
|
|
|||||
Total assets
|
$
|
1,976,807
|
|
|
$
|
1,676,673
|
|
|
$
|
3,449
|
|
|
$
|
(1,443,771
|
)
|
|
$
|
2,213,158
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Trade accounts payable
|
$
|
—
|
|
|
$
|
104,174
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
104,174
|
|
Other liabilities
|
11,315
|
|
|
122,561
|
|
|
377
|
|
|
—
|
|
|
134,253
|
|
|||||
Intercompany
|
2,574
|
|
|
739,266
|
|
|
—
|
|
|
(741,840
|
)
|
|
—
|
|
|||||
Total debt (net of premium and debt issuance costs)
|
1,320,065
|
|
|
11,813
|
|
|
—
|
|
|
—
|
|
|
1,331,878
|
|
|||||
Total liabilities
|
1,333,954
|
|
|
977,814
|
|
|
377
|
|
|
(741,840
|
)
|
|
1,570,305
|
|
|||||
Stockholders’ equity
|
642,853
|
|
|
698,859
|
|
|
3,072
|
|
|
(701,931
|
)
|
|
642,853
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
1,976,807
|
|
|
$
|
1,676,673
|
|
|
$
|
3,449
|
|
|
$
|
(1,443,771
|
)
|
|
$
|
2,213,158
|
|
|
Beazer Homes
USA, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated
Beazer Homes USA, Inc. |
||||||||||
Three Months Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
$
|
—
|
|
|
$
|
339,241
|
|
|
$
|
36
|
|
|
$
|
(36
|
)
|
|
$
|
339,241
|
|
Home construction and land sales expenses
|
15,644
|
|
|
269,970
|
|
|
—
|
|
|
(36
|
)
|
|
285,578
|
|
|||||
Gross profit (loss)
|
(15,644
|
)
|
|
69,271
|
|
|
36
|
|
|
—
|
|
|
53,663
|
|
|||||
Commissions
|
—
|
|
|
13,323
|
|
|
—
|
|
|
—
|
|
|
13,323
|
|
|||||
General and administrative expenses
|
—
|
|
|
36,365
|
|
|
23
|
|
|
—
|
|
|
36,388
|
|
|||||
Depreciation and amortization
|
—
|
|
|
2,677
|
|
|
—
|
|
|
—
|
|
|
2,677
|
|
|||||
Operating income (loss)
|
(15,644
|
)
|
|
16,906
|
|
|
13
|
|
|
—
|
|
|
1,275
|
|
|||||
Equity in income of unconsolidated entities
|
—
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Other (expense) income, net
|
(5,252
|
)
|
|
57
|
|
|
(1
|
)
|
|
—
|
|
|
(5,196
|
)
|
|||||
Income (loss) before income taxes
|
(20,896
|
)
|
|
16,985
|
|
|
12
|
|
|
—
|
|
|
(3,899
|
)
|
|||||
Expense (benefit) from income taxes
|
(7,569
|
)
|
|
5,025
|
|
|
4
|
|
|
—
|
|
|
(2,540
|
)
|
|||||
Equity in income of subsidiaries
|
11,968
|
|
|
—
|
|
|
—
|
|
|
(11,968
|
)
|
|
—
|
|
|||||
Income (loss) from continuing operations
|
(1,359
|
)
|
|
11,960
|
|
|
8
|
|
|
(11,968
|
)
|
|
(1,359
|
)
|
|||||
Loss from discontinued operations
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70
|
)
|
|||||
Equity in loss of subsidiaries from discontinued operations
|
—
|
|
|
(67
|
)
|
|
(3
|
)
|
|
70
|
|
|
—
|
|
|||||
Net income (loss) and comprehensive income (loss)
|
$
|
(1,429
|
)
|
|
$
|
11,893
|
|
|
$
|
5
|
|
|
$
|
(11,898
|
)
|
|
$
|
(1,429
|
)
|
|
Beazer Homes
USA, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated
Beazer Homes USA, Inc. |
||||||||||
Three Months Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue
|
$
|
—
|
|
|
$
|
344,449
|
|
|
$
|
73
|
|
|
$
|
(73
|
)
|
|
$
|
344,449
|
|
Home construction and land sales expenses
|
13,367
|
|
|
272,217
|
|
|
—
|
|
|
(73
|
)
|
|
285,511
|
|
|||||
Inventory impairments and abandonments
|
—
|
|
|
1,356
|
|
|
—
|
|
|
—
|
|
|
1,356
|
|
|||||
Gross profit (loss)
|
(13,367
|
)
|
|
70,876
|
|
|
73
|
|
|
—
|
|
|
57,582
|
|
|||||
Commissions
|
—
|
|
|
13,774
|
|
|
—
|
|
|
—
|
|
|
13,774
|
|
|||||
General and administrative expenses
|
—
|
|
|
31,642
|
|
|
27
|
|
|
|
|
|
31,669
|
|
|||||
Depreciation and amortization
|
—
|
|
|
2,991
|
|
|
—
|
|
|
—
|
|
|
2,991
|
|
|||||
Operating income (loss)
|
(13,367
|
)
|
|
22,469
|
|
|
46
|
|
|
—
|
|
|
9,148
|
|
|||||
Equity in income of unconsolidated entities
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|||||
Loss on extinguishment of debt
|
(828
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(828
|
)
|
|||||
Other (expense) income, net
|
(7,432
|
)
|
|
868
|
|
|
(1
|
)
|
|
—
|
|
|
(6,565
|
)
|
|||||
Income (loss) before income taxes
|
(21,627
|
)
|
|
23,397
|
|
|
45
|
|
|
—
|
|
|
1,815
|
|
|||||
Expense (benefit) from income taxes
|
(10,143
|
)
|
|
10,742
|
|
|
17
|
|
|
—
|
|
|
616
|
|
|||||
Equity in income of subsidiaries
|
12,683
|
|
|
—
|
|
|
—
|
|
|
(12,683
|
)
|
|
—
|
|
|||||
Income from continuing operations
|
1,199
|
|
|
12,655
|
|
|
28
|
|
|
(12,683
|
)
|
|
1,199
|
|
|||||
Loss from discontinued operations
|
—
|
|
|
(197
|
)
|
|
(3
|
)
|
|
—
|
|
|
(200
|
)
|
|||||
Equity in loss of subsidiaries from discontinued operations
|
(200
|
)
|
|
—
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|||||
Net income and comprehensive income
|
$
|
999
|
|
|
$
|
12,458
|
|
|
$
|
25
|
|
|
$
|
(12,483
|
)
|
|
$
|
999
|
|
|
|
|
|
|
|
|
|
|
|
|
Beazer Homes
USA, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated
Beazer Homes USA, Inc. |
||||||||||
Three Months Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in operating activities
|
$
|
(2,902
|
)
|
|
$
|
(59,928
|
)
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
$
|
(62,834
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(2,874
|
)
|
|
—
|
|
|
—
|
|
|
(2,874
|
)
|
|||||
Proceeds from sale of fixed assets
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
Investments in unconsolidated entities
|
—
|
|
|
(1,397
|
)
|
|
—
|
|
|
—
|
|
|
(1,397
|
)
|
|||||
Return of capital from unconsolidated entities
|
—
|
|
|
1,621
|
|
|
—
|
|
|
—
|
|
|
1,621
|
|
|||||
Increases in restricted cash
|
(1,817
|
)
|
|
(1,829
|
)
|
|
—
|
|
|
—
|
|
|
(3,646
|
)
|
|||||
Decreases in restricted cash
|
—
|
|
|
2,088
|
|
|
—
|
|
|
—
|
|
|
2,088
|
|
|||||
Advances to/from subsidiaries
|
(50,314
|
)
|
|
—
|
|
|
—
|
|
|
50,314
|
|
|
—
|
|
|||||
Net cash used in investing activities
|
(52,131
|
)
|
|
(2,345
|
)
|
|
—
|
|
|
50,314
|
|
|
(4,162
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of debt
|
—
|
|
|
(2,525
|
)
|
|
—
|
|
|
—
|
|
|
(2,525
|
)
|
|||||
Debt issuance costs
|
(340
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
|||||
Advances to/from subsidiaries
|
—
|
|
|
52,224
|
|
|
(2
|
)
|
|
(52,222
|
)
|
|
—
|
|
|||||
Other financing activities
|
(387
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(387
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(727
|
)
|
|
49,699
|
|
|
(2
|
)
|
|
(52,222
|
)
|
|
(3,252
|
)
|
|||||
Decrease in cash and cash equivalents
|
(55,760
|
)
|
|
(12,574
|
)
|
|
(6
|
)
|
|
(1,908
|
)
|
|
(70,248
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
215,646
|
|
|
16,866
|
|
|
859
|
|
|
(4,500
|
)
|
|
228,871
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
159,886
|
|
|
$
|
4,292
|
|
|
$
|
853
|
|
|
$
|
(6,408
|
)
|
|
$
|
158,623
|
|
|
Beazer Homes
USA, Inc. |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Consolidating
Adjustments |
|
Consolidated
Beazer Homes USA, Inc. |
||||||||||
Three Months Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in operating activities
|
$
|
(22,794
|
)
|
|
$
|
(55,038
|
)
|
|
$
|
(17
|
)
|
|
$
|
—
|
|
|
$
|
(77,849
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
—
|
|
|
(2,663
|
)
|
|
—
|
|
|
—
|
|
|
(2,663
|
)
|
|||||
Proceeds from sale of fixed assets
|
—
|
|
|
2,437
|
|
|
—
|
|
|
—
|
|
|
2,437
|
|
|||||
Investments in unconsolidated entities
|
—
|
|
|
(1,779
|
)
|
|
—
|
|
|
—
|
|
|
(1,779
|
)
|
|||||
Return of capital from unconsolidated entities
|
—
|
|
|
1,142
|
|
|
—
|
|
|
—
|
|
|
1,142
|
|
|||||
Increases in restricted cash
|
—
|
|
|
(1,119
|
)
|
|
—
|
|
|
—
|
|
|
(1,119
|
)
|
|||||
Decreases in restricted cash
|
—
|
|
|
669
|
|
|
—
|
|
|
—
|
|
|
669
|
|
|||||
Advances to/from subsidiaries
|
(33,119
|
)
|
|
—
|
|
|
—
|
|
|
33,119
|
|
|
—
|
|
|||||
Net cash used in investing activities
|
(33,119
|
)
|
|
(1,313
|
)
|
|
—
|
|
|
33,119
|
|
|
(1,313
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayment of debt
|
(22,875
|
)
|
|
(4,051
|
)
|
|
—
|
|
|
—
|
|
|
(26,926
|
)
|
|||||
Debt issuance costs
|
(413
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(413
|
)
|
|||||
Advances to/from subsidiaries
|
—
|
|
|
38,312
|
|
|
(1
|
)
|
|
(38,311
|
)
|
|
—
|
|
|||||
Other financing activities
|
(201
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(201
|
)
|
|||||
Net cash (used in) provided by financing activities
|
(23,489
|
)
|
|
34,261
|
|
|
(1
|
)
|
|
(38,311
|
)
|
|
(27,540
|
)
|
|||||
Decrease in cash and cash equivalents
|
(79,402
|
)
|
|
(22,090
|
)
|
|
(18
|
)
|
|
(5,192
|
)
|
|
(106,702
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
232,226
|
|
|
21,543
|
|
|
1,006
|
|
|
(3,192
|
)
|
|
251,583
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
152,824
|
|
|
$
|
(547
|
)
|
|
$
|
988
|
|
|
$
|
(8,384
|
)
|
|
$
|
144,881
|
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Total revenue
|
$
|
—
|
|
|
$
|
—
|
|
Home construction and land sales expenses
|
78
|
|
|
308
|
|
||
Gross loss
|
(78
|
)
|
|
(308
|
)
|
||
General and administrative expenses
|
31
|
|
|
2
|
|
||
Loss from discontinued operations before income taxes
|
(109
|
)
|
|
(310
|
)
|
||
Benefit from income taxes
|
(39
|
)
|
|
(110
|
)
|
||
Loss from discontinued operations, net of tax
|
$
|
(70
|
)
|
|
$
|
(200
|
)
|
•
|
Sales per community per month was
2.2
and
1.8
for the quarters ended
December 31, 2016
and
December 31, 2015
, respectively. Our strong emphasis on sales absorptions within our lower active community count allowed us to achieve a significant year-over-year increase in this metric and to rebuild our backlog unit levels. Sales per community per month increased to
2.8
for the trailing 12 months ended
December 31, 2016
versus
2.7
a year ago, and is within the range established in our “2B-10” plan of
2.8
to
3.2
. We continue to believe that we are among the industry leaders in sales absorption rates, and are focused on maintaining our strong sales momentum through the remainder of our fiscal 2017.
|
•
|
Our ASP for closings during the trailing 12 months ended
December 31, 2016
was
$332.6 thousand
, up
4.6%
year-over-year, and our ASP in backlog as of
December 31, 2016
has risen
4.2%
versus the prior year quarter to
$345.8 thousand
. Our targeted metric for ASP established in November 2015 was a range of $330.0 thousand to $340.0 thousand, which we have achieved and believe we can maintain based on the gradual increase in our ASP on closed homes, our ASP on homes in backlog as of
December 31, 2016
and our current mix of communities available for sale. As such, we are increasing our targeted metric for ASP to a range of
$340.0 thousand
to
$350.0 thousand
.
|
•
|
During the current quarter, we had an average active community count of
156
, down
7.9%
from the prior year quarter, and ended the quarter with
154
active communities. This decline in community count was anticipated, as we focused during our fiscal 2016 on balancing our community count with our goal of reducing our outstanding debt balance. However, we expect higher spend on land and land development activities during the current fiscal year, and a corresponding growth in community count in fiscal 2018 and beyond. We invested another
$103.2 million
in land and land development during the current quarter, bringing our total spending for the trailing 12-month period to
$328.2 million
. Additionally, we have (1) increasingly focused on the use of option contracts and developed lot deals to maximize the efficiency of our capital, and (2) continued to activate certain parcels of land held for future development so that these assets can begin to generate revenue. We continue to strategically evaluate opportunities to purchase land within our geographic footprint, balancing our desire to reduce our leverage with land acquisition strategies that minimize our capital employed. Our “2B-10” target metric is an active community count range between
170
and
175
.
|
•
|
Homebuilding gross margin excluding impairments, abandonments and interest for the trailing 12 months ended
December 31, 2016
was
21.5%
, which is within our “2B-10” target metric range of between
21.0%
and
22.0%
. However, excluding the $15.5 million reduction in cost of sales recorded during the third quarter of our fiscal 2016 resulting from an agreement entered into with our third-party insurer to resolve certain issues related to the extent of our insurance coverage for multiple policy years, our homebuilding gross margin for the trailing 12 months ended
December 31, 2016
would have been 20.6%, just below our target metric range. Our homebuilding gross margin has been impacted by a number of headwinds, including the increasing cost of land, driven by both market conditions and the structure of our land deals, and labor, as well as geographic, product and community mix (including an increasing number of closings from recently activated assets formerly classified as land held for future development, which generally have lower margins). While we anticipate these headwinds to continue, we expect our homebuilding margin, as it has in the current quarter, to stabilize and modestly improve in the coming quarters.
|
•
|
SG&A for the trailing 12 months ended
December 31, 2016
was
12.6%
of total revenue, an
increase
of
30
basis points from the prior year. However, excluding the
$2.7 million
charge to write off a deposit on a legacy investment in a development site that we deemed noncollectible, SG&A for the trailing 12 months ended
December 31, 2016
was 12.4% of total revenue. Although it is slightly above our “2B-10” target range of between
11.0%
and
12.0%
, we believe that as we grow revenue from our larger base of communities expected during our fiscal 2018 and beyond, as well as higher ASPs, we will demonstrate improved SG&A cost leverage.
|
|
Three Months Ended
|
||||||
|
December 31,
|
||||||
($ in thousands)
|
2016
|
|
2015
|
||||
Revenues:
|
|
|
|
||||
Homebuilding
|
$
|
336,126
|
|
|
$
|
336,593
|
|
Land sales and other
|
3,115
|
|
|
7,856
|
|
||
Total
|
$
|
339,241
|
|
|
$
|
344,449
|
|
Gross profit:
|
|
|
|
||||
Homebuilding
|
$
|
53,204
|
|
|
$
|
58,063
|
|
Land sales and other
|
459
|
|
|
(481
|
)
|
||
Total
|
$
|
53,663
|
|
|
$
|
57,582
|
|
Gross margin:
|
|
|
|
||||
Homebuilding
(a)
|
15.8
|
%
|
|
17.3
|
%
|
||
Land sales and other
|
14.7
|
%
|
|
(6.1
|
)%
|
||
Total
|
15.8
|
%
|
|
16.7
|
%
|
||
Commissions
|
$
|
13,323
|
|
|
$
|
13,774
|
|
General and administrative expenses (G&A)
|
36,388
|
|
|
31,669
|
|
||
SG&A (commissions plus G&A) as a percentage of total revenue
|
14.7
|
%
|
|
13.2
|
%
|
||
G&A as a percentage of total revenue
|
10.7
|
%
|
|
9.2
|
%
|
||
Depreciation and amortization
|
$
|
2,677
|
|
|
$
|
2,991
|
|
Operating income
|
$
|
1,275
|
|
|
$
|
9,148
|
|
Operating income as a percentage of total revenue
|
0.4
|
%
|
|
2.7
|
%
|
||
Effective Tax Rate
(c)
|
65.1
|
%
|
|
33.9
|
%
|
||
Equity in income of unconsolidated entities
|
$
|
22
|
|
|
$
|
60
|
|
Loss on extinguishment of debt
|
—
|
|
|
828
|
|
|
|
Three Months Ended December 31,
|
|
LTM Ended December 31,
(a)
|
||||||||||||||||||||
(In thousands)
|
|
2016
|
|
2015
|
|
16 vs 15
|
|
2016
|
|
2015
|
|
16 vs 15
|
||||||||||||
Net income (loss)
|
|
$
|
(1,429
|
)
|
|
$
|
999
|
|
|
$
|
(2,428
|
)
|
|
$
|
2,265
|
|
|
$
|
367,433
|
|
|
$
|
(365,168
|
)
|
Expense (benefit) from income taxes
|
|
(2,579
|
)
|
|
506
|
|
|
(3,085
|
)
|
|
13,139
|
|
|
(324,724
|
)
|
|
337,863
|
|
||||||
Interest amortized to home construction and land sales expenses, capitalized interest impaired and interest expense not qualified for capitalization
|
|
20,896
|
|
|
21,083
|
|
|
(187
|
)
|
|
104,523
|
|
|
89,035
|
|
|
15,488
|
|
||||||
Depreciation and amortization and stock-based compensation amortization
|
|
4,859
|
|
|
4,747
|
|
|
112
|
|
|
21,864
|
|
|
20,505
|
|
|
1,359
|
|
||||||
Inventory impairments and abandonments
(b)
|
|
—
|
|
|
1,356
|
|
|
(1,356
|
)
|
|
13,216
|
|
|
4,465
|
|
|
8,751
|
|
||||||
Loss on debt extinguishment
|
|
—
|
|
|
828
|
|
|
(828
|
)
|
|
12,595
|
|
|
908
|
|
|
11,687
|
|
||||||
Adjusted EBITDA
|
|
$
|
21,747
|
|
|
$
|
29,519
|
|
|
$
|
(7,772
|
)
|
|
$
|
167,602
|
|
|
$
|
157,622
|
|
|
$
|
9,980
|
|
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries)
|
|
—
|
|
|
(3,612
|
)
|
|
3,612
|
|
|
—
|
|
|
(3,612
|
)
|
|
3,612
|
|
||||||
Additional insurance recoveries from third-party insurer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,500
|
)
|
|
—
|
|
|
(15,500
|
)
|
||||||
Litigation settlement in discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
|
340
|
|
||||||
Write-off of deposit on legacy land investment
|
|
2,700
|
|
|
—
|
|
|
2,700
|
|
|
2,700
|
|
|
—
|
|
|
2,700
|
|
||||||
Adjusted EBITDA excluding unexpected warranty costs (net of recoveries), additional insurance recoveries, litigation settlement and write-off of deposit
|
|
$
|
24,447
|
|
|
$
|
25,907
|
|
|
$
|
(1,460
|
)
|
|
$
|
154,802
|
|
|
$
|
153,670
|
|
|
$
|
1,132
|
|
|
Three Months Ended December 31,
|
|||||||||||||
|
New Orders, net
|
|
Cancellation Rates
|
|||||||||||
|
2016
|
|
2015
|
|
16 vs 15
|
|
2016
|
|
2015
|
|||||
West
|
467
|
|
|
422
|
|
|
10.7
|
%
|
|
20.2
|
%
|
|
24.1
|
%
|
East
|
228
|
|
|
248
|
|
|
(8.1
|
)%
|
|
22.7
|
%
|
|
25.7
|
%
|
Southeast
|
310
|
|
|
253
|
|
|
22.5
|
%
|
|
21.5
|
%
|
|
28.5
|
%
|
Total
|
1,005
|
|
|
923
|
|
|
8.9
|
%
|
|
21.2
|
%
|
|
25.8
|
%
|
|
As of December 31,
|
|||||||||
|
2016
|
|
2015
|
|
16 vs 15
|
|||||
Backlog Units:
|
|
|
|
|
|
|||||
West
|
785
|
|
|
885
|
|
|
(11.3
|
)%
|
||
East
|
455
|
|
|
478
|
|
|
(4.8
|
)%
|
||
Southeast
|
686
|
|
|
549
|
|
|
25.0
|
%
|
||
Total
|
1,926
|
|
|
1,912
|
|
|
0.7
|
%
|
||
Aggregate dollar value of homes in backlog (in millions)
|
$
|
666.1
|
|
|
$
|
634.6
|
|
|
5.0
|
%
|
ASP in backlog (in thousands)
|
$
|
345.8
|
|
|
$
|
331.9
|
|
|
4.2
|
%
|
|
Three Months Ended December 31,
|
|||||||||||||||||||||||||||||
|
Homebuilding Revenue
|
|
Average Selling Price
|
|
Closings
|
|||||||||||||||||||||||||
($ in thousands)
|
2016
|
|
2015
|
|
16 vs 15
|
|
2016
|
|
2015
|
|
16 vs 15
|
|
2016
|
|
2015
|
|
16 vs 15
|
|||||||||||||
West
|
$
|
171,749
|
|
|
$
|
157,196
|
|
|
9.3
|
%
|
|
$
|
336.8
|
|
|
$
|
319.5
|
|
|
5.4
|
%
|
|
510
|
|
|
492
|
|
|
3.7
|
%
|
East
|
81,250
|
|
|
94,345
|
|
|
(13.9
|
)%
|
|
374.4
|
|
|
367.1
|
|
|
2.0
|
%
|
|
217
|
|
|
257
|
|
|
(15.6
|
)%
|
||||
Southeast
|
83,127
|
|
|
85,052
|
|
|
(2.3
|
)%
|
|
310.2
|
|
|
283.5
|
|
|
9.4
|
%
|
|
268
|
|
|
300
|
|
|
(10.7
|
)%
|
||||
Total
|
$
|
336,126
|
|
|
$
|
336,593
|
|
|
(0.1
|
)%
|
|
$
|
337.8
|
|
|
$
|
320.9
|
|
|
5.3
|
%
|
|
995
|
|
|
1,049
|
|
|
(5.1
|
)%
|
|
Three Months Ended December 31, 2016
|
|||||||||||||||||||||||||||
($ in thousands)
|
HB Gross
Profit (Loss)
|
|
HB Gross
Margin
|
|
Impairments &
Abandonments
(I&A)
|
|
HB Gross
Profit (Loss)w/o
I&A
|
|
HB Gross
Margin w/o
I&A
|
|
Interest
Amortized to
COS
|
|
HB Gross Profit
w/o I&A and
Interest
|
|
HB Gross Margin
w/o I&A and
Interest
|
|||||||||||||
West
|
$
|
36,817
|
|
|
21.4
|
%
|
|
$
|
—
|
|
|
$
|
36,817
|
|
|
21.4
|
%
|
|
$
|
—
|
|
|
$
|
36,817
|
|
|
21.4
|
%
|
East
|
13,428
|
|
|
16.5
|
%
|
|
—
|
|
|
13,428
|
|
|
16.5
|
%
|
|
—
|
|
|
13,428
|
|
|
16.5
|
%
|
|||||
Southeast
|
14,577
|
|
|
17.5
|
%
|
|
—
|
|
|
14,577
|
|
|
17.5
|
%
|
|
—
|
|
|
14,577
|
|
|
17.5
|
%
|
|||||
Corporate & unallocated
|
(11,618
|
)
|
|
|
|
—
|
|
|
(11,618
|
)
|
|
|
|
15,644
|
|
|
4,026
|
|
|
|
||||||||
Total homebuilding
|
$
|
53,204
|
|
|
15.8
|
%
|
|
$
|
—
|
|
|
$
|
53,204
|
|
|
15.8
|
%
|
|
$
|
15,644
|
|
|
$
|
68,848
|
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended December 31, 2015
|
|||||||||||||||||||||||||||
($ in thousands)
|
HB Gross
Profit (Loss)
|
|
HB Gross
Margin
|
|
Impairments &
Abandonments
(I&A)
|
|
HB Gross
Profit (Loss) w/o
I&A
|
|
HB Gross
Margin w/o
I&A
|
|
Interest
Amortized to
COS
|
|
HB Gross Profit
w/o I&A and
Interest
|
|
HB Gross Margin
w/o I&A and
Interest
|
|||||||||||||
West
|
$
|
32,213
|
|
|
20.5
|
%
|
|
$
|
—
|
|
|
$
|
32,213
|
|
|
20.5
|
%
|
|
$
|
—
|
|
|
$
|
32,213
|
|
|
20.5
|
%
|
East
|
14,598
|
|
|
15.5
|
%
|
|
—
|
|
|
14,598
|
|
|
15.5
|
%
|
|
—
|
|
|
14,598
|
|
|
15.5
|
%
|
|||||
Southeast
|
19,649
|
|
|
23.1
|
%
|
|
788
|
|
|
20,437
|
|
|
24.0
|
%
|
|
—
|
|
|
20,437
|
|
|
24.0
|
%
|
|||||
Corporate & unallocated
|
(8,397
|
)
|
|
|
|
—
|
|
|
(8,397
|
)
|
|
|
|
13,367
|
|
|
4,970
|
|
|
|
||||||||
Total homebuilding
|
$
|
58,063
|
|
|
17.3
|
%
|
|
$
|
788
|
|
|
$
|
58,851
|
|
|
17.5
|
%
|
|
$
|
13,367
|
|
|
$
|
72,218
|
|
|
21.5
|
%
|
Unexpected warranty costs related to Florida stucco issues (net of expected insurance recoveries)
|
(3,612
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(3,612
|
)
|
|
|
|||||||||||
Adjusted homebuilding
|
54,451
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
68,606
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Sales and Other Revenues
|
|
Land Sales and Other Gross Profit (Loss)
|
||||||||||||||||||||
|
Three Months Ended December 31,
|
|
Three Months Ended December 31,
|
||||||||||||||||||||
(In thousands)
|
2016
|
|
2015
|
|
16 vs 15
|
|
2016
|
|
2015
|
|
16 vs 15
|
||||||||||||
West
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
278
|
|
|
$
|
351
|
|
|
$
|
(73
|
)
|
East
|
2,909
|
|
|
6,212
|
|
|
(3,303
|
)
|
|
131
|
|
|
(246
|
)
|
|
377
|
|
||||||
Southeast
|
206
|
|
|
1,644
|
|
|
(1,438
|
)
|
|
50
|
|
|
(214
|
)
|
|
264
|
|
||||||
Corporate and unallocated
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(372
|
)
|
|
372
|
|
||||||
Total
|
$
|
3,115
|
|
|
$
|
7,856
|
|
|
$
|
(4,741
|
)
|
|
$
|
459
|
|
|
$
|
(481
|
)
|
|
$
|
940
|
|
|
Three Months Ended December 31,
|
||||||||||
(In thousands)
|
2016
|
|
2015
|
|
16 vs 15
|
||||||
West
|
$
|
21,015
|
|
|
$
|
16,786
|
|
|
$
|
4,229
|
|
East
(a)
|
1,557
|
|
|
4,147
|
|
|
(2,590
|
)
|
|||
Southeast
(b)
|
5,015
|
|
|
10,657
|
|
|
(5,642
|
)
|
|||
Corporate and Unallocated
(c)
|
(26,312
|
)
|
|
(22,442
|
)
|
|
(3,870
|
)
|
|||
Operating income
|
$
|
1,275
|
|
|
$
|
9,148
|
|
|
$
|
(7,873
|
)
|
|
Three Months Ended December 31,
|
||||||
(In thousands)
|
2016
|
|
2015
|
||||
Cash used in operating activities
|
$
|
(62,834
|
)
|
|
$
|
(77,849
|
)
|
Cash used in investing activities
|
(4,162
|
)
|
|
(1,313
|
)
|
||
Cash used in financing activities
|
(3,252
|
)
|
|
(27,540
|
)
|
||
Net decrease in cash and cash equivalents
|
$
|
(70,248
|
)
|
|
$
|
(106,702
|
)
|
•
|
$158.6 million
in cash and cash equivalents;
|
•
|
$142.5 million
of remaining capacity under the Facility (due to the use of the Facility to secure
$37.5 million
in letters of credit); and
|
•
|
$16.0 million
of restricted cash, the majority of which is used to secure certain stand-alone letters of credit.
|
10.1*
|
Form of 2014 Long-Term Incentive Plan Award Agreement for Performance Shares (Named Executive Officers).
|
|
|
31.1
|
Certification of Chief Executive Officer pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of Chief Financial Officer pursuant to 17 CFR 240.13a-14 promulgated under Section 302 of the Sarbanes-Oxley Act of 2002.
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32.1
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Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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32.2
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Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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101
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The following financial statements from Beazer Homes USA, Inc.'s Quarterly Report on Form 10-Q for the period ended December 31, 2016, filed on February 9, 2017,
formatted in XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Balance Sheets, (ii) Unaudited Condensed Consolidated Statements of Income, (iii) Unaudited Condensed Consolidated Statements of Cash Flows and (iv) Notes to Unaudited Condensed Consolidated Financial Statements.
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Date:
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February 9, 2017
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Beazer Homes USA, Inc.
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By:
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/s/ Robert L. Salomon
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Name:
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Robert L. Salomon
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Executive Vice President and
Chief Financial Officer
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1 Year Beazer Homes USA Chart |
1 Month Beazer Homes USA Chart |
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