Actionable news
0
All posts from Actionable news
Actionable news in BZH: BEAZER HOMES USA Inc NEW,

Beazer Homes Reports Second Quarter Fiscal 2016 Results

ATLANTA, Apr 28, 2016 (BUSINESS WIRE) -- Beazer Homes USA, Inc. BZH, -15.44% (www.beazer.com) today announced its financial results for the three and six months ended March 31, 2016.

The Company reported a net loss from continuing operations of $1.3 million for the quarter ended March 31, 2016, which included a $1.6 million loss on the extinguishment of debt and $1.8 million in impairment charges, compared with a net loss of $2.1 million for the quarter ended March 31, 2015.

Adjusted EBITDA rose 32.5% versus the prior year to $26.2 million, driven by substantially higher revenue. Home closings of 1,150 were up 22.9%, while ASP increased to $328.0 thousand.

The Company ended the quarter with nearly $135 million of unrestricted cash and total available liquidity of more than $250 million. During the quarter, the Company repurchased an additional $18.4 million of debt, bringing the year to date total to $41.3 million. The Company intends to reduce debt by a total of at least $100 million during Fiscal 2016.

Relative to the Company’s objective to achieve $2 billion in revenue with Adjusted EBITDA of at least $200 million, referred to as the “2B-10” Plan, for the trailing twelve months, revenue was $1.8 billion, up 22.3%, and Adjusted EBITDA of $160.1 million was up more than $31.0 million, or 24.0%, compared to last year.

“Our second quarter results demonstrated our ability to successfully grow EBITDA while reducing leverage. Although uncertainty in the broader economy contributed to an uneven start to the spring selling season, we were encouraged by more consistent new home orders as the quarter progressed,” said Allan Merrill, CEO of Beazer Homes.

Mr. Merrill continued, “We are pleased with our results for the quarter and so far this year and look forward to further progress on our joint “2B-10” and deleveraging objectives in the second half of the year.”

Summary results for the three and six months ended March 31, 2016 are as follows:

Q2 Results from Continuing Operations (unless otherwise specified)

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 %

* Change is calculated using unrounded numbers.

As of March 31, 2016

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 )%

The Company will hold a conference call on April 28, 2016 at 10:00 a.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company’s slide presentation over the Internet by visiting the “Investor Relations” section of the Company's website at www.beazer.com. To access the conference call by telephone, listeners should dial 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the passcode “BZH.” A replay of the call will be available shortly after the conclusion of the live call. To directly access the replay, dial 800-679-9644 or 203-369-3316 and enter the passcode “3740” (available until 11:59 p.m. ET on May 5)(available until 11:2016), or visit www.beazer.com. A replay of the webcast will be available at www.beazer.com for at least 30 days.

Headquartered in Atlanta, Beazer Homes is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States. The Company's homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with Choice Plans to meet the personal preferences and lifestyles of its buyers. In addition, the Company is committed to providing a range of preferred lender choices to facilitate...


More