ATLANTA--(BUSINESS WIRE)--Jan 30, 2020--
Beazer Homes USA, Inc. (NYSE: BZH) ( ) today announced its financial results for the three months ended December 31, 2019.
“We were very pleased with our first quarter results,” said Allan P. Merrill, Chairman and CEO of Beazer Homes. “Increases in both home sales and gross margins reflected improved consumer demand for new homes and our efforts to drive increases in profitability and returns. These results have enhanced our visibility and confidence in reaching our Fiscal 2020 goals of generating a return on assets above 10% and a double-digit growth rate in Adjusted EBITDA.
“Longer term, our focus on delivering ‘extraordinary value at an affordable price’, principally to first time and downsizing buyers, is ideally aligned with demographics and responsive to the challenge of providing affordable new homes. We remain confident in our ability to improve profitability and returns while reducing debt below $1 billion in the years ahead.”
Beazer Homes Fiscal First Quarter 2020 Highlights and Comparison to Fiscal First Quarter 2019
The following provides additional details on the Company's performance during the fiscal first quarter 2020:
. First quarter adjusted EBITDA of $29.4 million was up $2.5 million year-over-year. Net income from continuing operations was $2.8 million, generating diluted earnings per share of $0.09. Net income was down $4.5 million year-over-year with less income tax credits and incremental interest expense more than offsetting higher EBITDA .
. Net new orders for the first quarter increased 28.2% year-over-year, to 1,251. The increase in net new orders was primarily driven by a 21.8% increase in sales/community/month to 2.5. The cancellation rate for the quarter was 14.9%, down 490 basis points year-over-year.
. First quarter closings rose 2.7% to 1,112 homes. Combined with a 1.4% increase in the average selling price to $375.4 thousand, homebuilding revenue was $417.4 million, up 4.1% year-over-year.
. The dollar value of homes in backlog as of December 31, 2019 increased 23.4% to $732.1 million, or 1,847 homes, compared to $593.1 million, or 1,525 homes, at the same time last year. The average selling price of homes in backlog was $396.4 thousand, up 1.9% year-over-year.
. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 19.8% for the first quarter, up 10 basis points year-over-year.
. Selling, general and administrative expenses, as a percentage of total revenue, were 13.3% for the quarter, down 20 basis points year-over-year.
. At the close of the first quarter, the Company had approximately $261.3 million of available liquidity, including $41.3 million of unrestricted cash and $220.0 million available on its secured revolving credit facility after accounting for borrowings.
The first quarter of fiscal 2020 represented another step forward for our Gatherings business. Fiscal year-over-year, Gatherings experienced an increase in sales in both actively selling communities located in Dallas and Orlando. We anticipate selling efforts to begin in two new communities in Dallas and Nashville during early calendar 2020, adding to our selling opportunities. New communities are under various stages of entitlement and development in Atlanta, Charleston, Dallas, Houston, Maryland, and Orlando, positioning Gatherings for continued growth in fiscal 2020.
Summary results for the three months ended December 31, 2019 are as follows:
The Company will hold a conference call on January 30, 2020 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, . In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the pass code “8571348.” A replay of the conference call will be available, until 10:00 PM ET on February 6, 2020 at 800-324-4696 (for international callers, dial 402-220-3856) with pass code “3740.”
Reconciliation of homebuilding gross profit and the related gross margin before impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit and gross margin, the most directly comparable GAAP measure, 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.
Reconciliation of Adjusted EBITDA to total company net income (loss), the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective capitalization, tax position and level of impairments. These EBITDA measures should not be considered alternatives to net income (loss) determined in accordance with GAAP as an indicator of operating performance.
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CONTACT: Beazer Homes USA, Inc.
David I. Goldberg
Vice President of Treasury and Investor Relations
KEYWORD: UNITED STATES NORTH AMERICA GEORGIA
INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: Beazer Homes USA, Inc.
Copyright Business Wire 2020.
PUB: 01/30/2020 04:15 PM/DISC: 01/30/2020 04:15 PM