[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part contains the unaudited financial statements and management's discussion and analysis of the company's performance [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited condensed consolidated financial statements and accompanying notes for the periods ended December 31, 2021, and 2020 [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's assets, liabilities, and stockholders' equity at the end of the reporting periods Condensed Consolidated Balance Sheets | in thousands | December 31, 2021 | September 30, 2021 | | :------------- | :------------------ | :------------------- | | Cash and cash equivalents | $157,701 | $246,715 | | Total assets | $2,060,191 | $2,078,810 | | Total liabilities | $1,304,932 | $1,353,926 | | Total stockholders' equity | $755,259 | $724,884 | - Total assets decreased slightly from **$2,078,810 thousand** as of September 30, 2021, to **$2,060,191 thousand** as of December 31, 2021, with a notable decrease in cash and cash equivalents from **$246,715 thousand** to **$157,701 thousand**[9](index=9&type=chunk) - Total liabilities decreased from **$1,353,926 thousand** to **$1,304,932 thousand**, while total stockholders' equity increased from **$724,884 thousand** to **$755,259 thousand**[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Summarizes revenues, costs, and expenses to report the company's net income over the reporting periods Condensed Consolidated Statements of Operations | in thousands (except per share data) | December 31, 2021 | December 31, 2020 | | :----------------------------------- | :------------------ | :------------------ | | Total revenue | $454,149 | $428,539 | | Gross profit | $97,400 | $75,293 | | Operating income | $40,939 | $17,688 | | Net income | $34,885 | $11,997 | | Basic income per share | $1.15 | $0.40 | | Diluted income per share | $1.14 | $0.40 | - Total revenue increased by **6.0%** to **$454,149 thousand** for the three months ended December 31, 2021, compared to $428,539 thousand in the prior year[11](index=11&type=chunk) - Net income significantly increased by **190.8%** to **$34,885 thousand** for the three months ended December 31, 2021, from $11,997 thousand in the same period last year[11](index=11&type=chunk) - Basic and diluted income per share both rose to **$1.15** and **$1.14**, respectively, in 2021, up from $0.40 in 2020[11](index=11&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Shows the changes in the company's equity accounts over the reporting period Condensed Consolidated Statements of Stockholders' Equity | in thousands | Balance as of September 30, 2021 | Net income and comprehensive income | Stock-based compensation expense | Common stock redeemed for tax liability | Balance as of December 31, 2021 | | :------------- | :------------------------------- | :---------------------------------- | :------------------------------- | :-------------------------------------- | :------------------------------ | | Total | $724,884 | $34,885 | $2,108 | $(6,618) | $755,259 | - Total stockholders' equity increased from **$724,884 thousand** as of September 30, 2021, to **$755,259 thousand** as of December 31, 2021, primarily due to net income and stock-based compensation[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports the cash generated and used by operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Net cash used in operating activities | $(77,817) | $(74,578) | | Net cash used in investing activities | $(2,811) | $(2,858) | | Net cash used in financing activities | $(6,618) | $(3,044) | | Net decrease in cash, cash equivalents, and restricted cash | $(87,246) | $(80,480) | | Cash, cash equivalents, and restricted cash at end of period | $186,897 | $262,048 | - Net cash used in operating activities increased to **$77,817 thousand** in 2021 from $74,578 thousand in 2020[15](index=15&type=chunk) - Net cash used in financing activities more than doubled to **$6,618 thousand** in 2021, primarily due to tax payments for stock-based compensation awards[15](index=15&type=chunk) - There was a net decrease in cash, cash equivalents, and restricted cash of **$87,246 thousand**, resulting in an end-of-period balance of **$186,897 thousand**[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures and explanations for the information presented in the financial statements [(1) Description of Business](index=7&type=section&id=(1)%20Description%20of%20Business) Outlines the company's core operations as a geographically diversified homebuilder in the United States - Beazer Homes USA, Inc is a geographically diversified homebuilder operating in **13 states** across three regions: West, East, and Southeast[18](index=18&type=chunk) - The company's objective is to provide homes with exceptional value and quality, while **maximizing return on invested capital**[19](index=19&type=chunk) [(2) Basis of Presentation and Summary of Significant Accounting Policies](index=7&type=section&id=(2)%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) Details the accounting principles and policies applied in the preparation of the financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with **GAAP** for interim financial information and Form 10-Q instructions[21](index=21&type=chunk) - Revenue is recognized upon transfer of title and possession of the home to the buyer at closing, net of discounts and incentives[28](index=28&type=chunk) - Customer deposits related to sold but undelivered homes totaled **$31.3 million** as of December 31, 2021, up from $28.5 million as of September 30, 2021[28](index=28&type=chunk) - The company is evaluating **ASU 2020-04** regarding reference rate reform, effective through December 31, 2022[30](index=30&type=chunk) Revenue by Type | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Homebuilding revenue | $446,729 | $424,229 | | Land sales and other revenue | $7,420 | $4,310 | | Total revenue | $454,149 | $428,539 | [(3) Supplemental Cash Flow Information](index=9&type=section&id=(3)%20Supplemental%20Cash%20Flow%20Information) Provides additional details on cash flow items, including interest and income tax payments - Interest payments decreased from **$27,048 thousand** in 2020 to **$25,081 thousand** in 2021[32](index=32&type=chunk) - Total cash, cash equivalents, and restricted cash at period end decreased to **$186,897 thousand** from $262,048 thousand year-over-year[32](index=32&type=chunk) Supplemental Cash Flow Data | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Interest payments | $25,081 | $27,048 | | Income tax payments | $53 | $0 | | Cash and cash equivalents | $157,701 | $244,628 | | Restricted cash | $29,196 | $17,420 | | Total cash, cash equivalents, and restricted cash | $186,897 | $262,048 | [(4) Investments in Unconsolidated Entities](index=10&type=section&id=(4)%20Investments%20in%20Unconsolidated%20Entities) Discloses the company's investments in joint ventures and other entities not fully consolidated - Equity in income from unconsolidated entities was **$288 thousand** for the three months ended December 31, 2021, a positive swing from a loss of $75 thousand in the prior year[34](index=34&type=chunk) - The company had **no outstanding guarantees** or other debt-related obligations related to investments in unconsolidated entities as of December 31, 2021[35](index=35&type=chunk) Unconsolidated Entity Financials | in thousands | December 31, 2021 | September 30, 2021 | | :------------- | :------------------ | :------------------- | | Investment in unconsolidated entities | $4,590 | $4,464 | | Total equity of unconsolidated entities | $7,326 | $7,316 | | Total outstanding borrowings of unconsolidated entities | $9,890 | $12,708 | [(5) Owned Inventory](index=11&type=section&id=(5)%20Owned%20Inventory) Details the composition of the company's inventory, including homes under construction and land - Total owned inventory increased to **$1,581,801 thousand** as of December 31, 2021, from $1,501,602 thousand as of September 30, 2021, driven by an increase in homes under construction[39](index=39&type=chunk) - The number of homes under construction increased to **3,196** (including 744 spec homes) as of December 31, 2021, from 2,912 (including 576 spec homes) as of September 30, 2021[39](index=39&type=chunk) - **No inventory impairments** were recognized for projects in progress or land held for sale during the three months ended December 31, 2021 and 2020[49](index=49&type=chunk)[51](index=51&type=chunk) - **No abandonment charges** were recognized in the three months ended December 31, 2021, compared to $0.5 million in the prior year[53](index=53&type=chunk) Owned Inventory Breakdown | in thousands | December 31, 2021 | September 30, 2021 | | :------------- | :------------------ | :------------------- | | Homes under construction | $726,379 | $648,283 | | Land under development | $646,161 | $648,404 | | Capitalized interest | $110,516 | $106,985 | | Total owned inventory | $1,581,801 | $1,501,602 | Unconsolidated Lot Option Agreements | in thousands | December 31, 2021 | September 30, 2021 | | :------------- | :------------------ | :------------------- | | Unconsolidated lot option agreements (Costs) | $121,581 | $114,688 | | Unconsolidated lot option agreements (Remaining Obligation, Net of Deposits) | $715,350 | $676,149 | [(6) Interest](index=13&type=section&id=(6)%20Interest) Provides a reconciliation of capitalized interest included in inventory - Capitalized interest in inventory increased to **$110,516 thousand** at December 31, 2021, from $106,985 thousand at the beginning of the period[56](index=56&type=chunk) - Interest incurred decreased to **$18,311 thousand** in 2021 from $19,902 thousand in 2020[56](index=56&type=chunk) Capitalized Interest Reconciliation | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Capitalized interest in inventory, beginning of period | $106,985 | $119,659 | | Interest incurred | $18,311 | $19,902 | | Capitalized interest amortized to home construction and land sales expenses | $(14,780) | $(18,813) | | Capitalized interest in inventory, end of period | $110,516 | $119,148 | [(7) Borrowings](index=14&type=section&id=(7)%20Borrowings) Details the company's outstanding debt obligations, including senior notes and credit facilities - Total debt, net, remained relatively stable at **$1,054,938 thousand** as of December 31, 2021[58](index=58&type=chunk) - The company had **$250.0 million** remaining capacity under its Secured Revolving Credit Facility, with no outstanding borrowings as of December 31, 2021[60](index=60&type=chunk) - The Senior Unsecured Term Loan of **$50.0 million** matures in September 2022 and bears a fixed interest rate of 4.875%[61](index=61&type=chunk) - Junior Subordinated Notes have an aggregate principal balance of **$100.8 million** and a weighted-average floating interest rate of 3.82% as of December 31, 2021[73](index=73&type=chunk) Debt Composition | in thousands | December 31, 2021 | September 30, 2021 | | :------------- | :------------------ | :------------------- | | Senior Unsecured Term Loan | $50,000 | $50,000 | | 6 3/4% Senior Notes (2025 Notes) | $229,555 | $229,555 | | 5 7/8% Senior Notes (2027 Notes) | $363,255 | $363,255 | | 7 1/4% Senior Notes (2029 Notes) | $350,000 | $350,000 | | Junior Subordinated Notes | $70,720 | $70,203 | | Total debt, net | $1,054,938 | $1,054,030 | [(8) Operating Leases](index=18&type=section&id=(8)%20Operating%20Leases) Discloses information about the company's operating lease liabilities and related expenses - Operating lease expense was **$1.0 million** for the three months ended December 31, 2021, down from $1.1 million in the prior year[76](index=76&type=chunk) - Cash payments on lease liabilities decreased to **$1.1 million** in 2021 from $1.4 million in 2020[76](index=76&type=chunk) Future Lease Payments | Fiscal Years Ending September 30, | in thousands | | :-------------------------------- | :------------- | | 2022 | $3,248 | | 2023 | $3,719 | | 2024 | $2,601 | | 2025 | $2,257 | | 2026 | $1,643 | | Thereafter | $1,928 | | Total lease payments | $15,396 | | Less: Imputed interest | $1,544 | | Total operating lease liabilities | $13,852 | [(9) Contingencies](index=20&type=section&id=(9)%20Contingencies) Describes potential liabilities from warranties, litigation, and other commitments - The company provides limited warranties for workmanship (1-2 years) and structural elements (up to 10 years)[81](index=81&type=chunk) - Litigation accruals were **$8.7 million** as of December 31, 2021, up from $8.3 million as of September 30, 2021[91](index=91&type=chunk) - Outstanding letters of credit and surety bonds totaled **$31.9 million** and **$281.8 million**, respectively, as of December 31, 2021[92](index=92&type=chunk) Warranty Reserve Activity | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Warranty reserve balance at beginning of period | $12,931 | $13,052 | | Accruals for warranties issued | $2,372 | $2,254 | | Payments made | $(3,094) | $(3,067) | | Warranty reserve balance at end of period | $12,743 | $12,616 | [(10) Fair Value Measurements](index=21&type=section&id=(10)%20Fair%20Value%20Measurements) Provides information on how the company measures the fair value of its financial assets and liabilities - The fair value of deferred compensation plan assets, measured using Level 2 inputs, was **$3.0 million** as of December 31, 2021[94](index=94&type=chunk) - **No impairments** were recognized on projects in process or land held for sale during the three months ended December 31, 2021 and 2020[95](index=95&type=chunk) Fair Value of Debt | in thousands | December 31, 2021 (Carrying Amount) | December 31, 2021 (Fair Value) | September 30, 2021 (Carrying Amount) | September 30, 2021 (Fair Value) | | :------------- | :---------------------------------- | :----------------------------- | :----------------------------------- | :------------------------------ | | Senior Notes and Term Loan | $984,218 | $1,058,740 | $983,827 | $1,046,965 | | Junior Subordinated Notes | $70,720 | $70,720 | $70,203 | $70,203 | | Total | $1,054,938 | $1,129,460 | $1,054,030 | $1,117,168 | [(11) Income Taxes](index=22&type=section&id=(11)%20Income%20Taxes) Details the components of income tax expense and deferred tax assets - Income tax expense from continuing operations increased to **$6.5 million** for the three months ended December 31, 2021, from $4.1 million in the prior year[101](index=101&type=chunk) - The 2021 tax expense was partially offset by **$3.2 million** in energy efficiency tax credits and discrete impacts from stock-based compensation[101](index=101&type=chunk) - Management concluded that a substantial portion of **deferred tax assets will be realized**, maintaining consistency with prior period determinations[102](index=102&type=chunk) [(12) Stock-based Compensation](index=23&type=section&id=(12)%20Stock-based%20Compensation) Discloses the expense and status of the company's stock-based compensation plans - Stock-based compensation expense decreased to **$2,108 thousand** for the three months ended December 31, 2021, from $3,511 thousand in the prior year[105](index=105&type=chunk) - Unrecognized compensation costs for unvested restricted stock awards were **$12.1 million** as of December 31, 2021, expected to be recognized over 2.05 years[109](index=109&type=chunk) Stock-based Compensation Expense | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Stock-based compensation expense | $2,108 | $3,511 | [(13) Earnings Per Share](index=24&type=section&id=(13)%20Earnings%20Per%20Share) Provides the calculation of basic and diluted earnings per share - Basic and diluted EPS significantly increased to **$1.15** and **$1.14**, respectively, in 2021, from $0.40 in 2020, reflecting higher net income[112](index=112&type=chunk) Earnings Per Share Calculation | in thousands (except per share data) | December 31, 2021 | December 31, 2020 | | :----------------------------------- | :------------------ | :------------------ | | Net income | $34,885 | $11,997 | | Basic weighted-average shares | 30,336 | 29,771 | | Diluted weighted-average shares | 30,724 | 30,086 | | Basic income per share (Total) | $1.15 | $0.40 | | Diluted income per share (Total) | $1.14 | $0.40 | [(14) Other Liabilities](index=25&type=section&id=(14)%20Other%20Liabilities) Presents a breakdown of other current and non-current liabilities - Total other liabilities decreased to **$121,441 thousand** as of December 31, 2021, from $152,351 thousand as of September 30, 2021, primarily due to a decrease in accrued compensations and benefits[114](index=114&type=chunk) Other Liabilities Breakdown | in thousands | December 31, 2021 | September 30, 2021 | | :------------- | :------------------ | :------------------- | | Customer deposits | $31,321 | $28,526 | | Accrued compensations and benefits | $27,286 | $54,606 | | Accrued interest | $15,029 | $22,835 | | Warranty reserve | $12,743 | $12,931 | | Litigation accruals | $8,654 | $8,325 | | Total | $121,441 | $152,351 | [(15) Segment Information](index=25&type=section&id=(15)%20Segment%20Information) Provides financial data for the company's reportable operating segments - The company operates in 13 states, grouped into three homebuilding segments: **West**, **East**, and **Southeast**[115](index=115&type=chunk) - West and East segments showed revenue and operating income growth, while the Southeast segment experienced a decrease in both[117](index=117&type=chunk)[119](index=119&type=chunk) Revenue by Segment | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | West Revenue | $257,666 | $236,880 | | East Revenue | $118,169 | $97,964 | | Southeast Revenue | $78,314 | $93,695 | | Total revenue | $454,149 | $428,539 | Operating Income by Segment | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | West Operating income | $42,724 | $33,303 | | East Operating income | $19,859 | $11,368 | | Southeast Operating income | $8,200 | $10,308 | | Total operating income | $40,939 | $17,688 | [(16) Discontinued Operations](index=27&type=section&id=(16)%20Discontinued%20Operations) Reports the financial results of business operations that have been disposed of or are held for sale - The company continually reviews markets to optimize investment strategy, leading to the discontinuation of certain homebuilding operations[122](index=122&type=chunk) - Loss from discontinued operations, net of tax, decreased to **$10 thousand** in 2021 from $39 thousand in 2020[123](index=123&type=chunk) Discontinued Operations Results | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Total revenue | $0 | $0 | | Loss from discontinued operations, net of tax | $(10) | $(39) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial performance, market trends, operational results, and liquidity [Executive Overview and Outlook](index=28&type=section&id=Executive%20Overview%20and%20Outlook) Highlights strong housing demand, strategic priorities, and key performance metrics for the first quarter of fiscal 2022 - **Strong housing demand** continued in Q1 fiscal 2022, driven by low mortgage rates, housing shortages, and favorable demographics[125](index=125&type=chunk) - The company proactively managed sales pace to align with production capacity, improving margins and profitability[126](index=126&type=chunk) - Fiscal 2022 priorities include growing lot position, improving profitability, and **reducing total debt below $1.0 billion**[127](index=127&type=chunk) Key Performance Metrics | Metric | Q1 FY2022 (Dec 31, 2021) | Q1 FY2021 (Dec 31, 2020) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :----- | | Sales per community per month | 3.3 | 3.5 | -5.7% | | Net new orders | 1,141 | 1,442 | -20.9% | | Average active community count | 114 | 136 | -16.2% | | Controlled lots | 23,049 | 18,801 | +22.6% | | Homes in backlog (units) | 2,908 | 2,837 | +2.5% | | Aggregate dollar value of homes in backlog | $1,405.2 million | $1,162.4 million | +20.9% | | ASP in backlog | $483.2 thousand | $409.7 thousand | +17.9% | | ASP for homes closed | $438.4 thousand | $380.8 thousand | +15.1% | | Homebuilding gross margin | 20.9% | 17.6% | +330 bps | | Homebuilding gross margin (excl. impairments, abandonments, interest) | 24.2% | 22.1% | +210 bps | | SG&A as % of total revenue | 11.8% | 12.7% | -90 bps | [Seasonal and Quarterly Variability](index=29&type=section&id=Seasonal%20and%20Quarterly%20Variability) Discusses the typical seasonal patterns affecting the company's homebuilding operations - Homebuilding operations historically show escalating new order activity in Q2 and Q3, and increased closings in Q3 and Q4[136](index=136&type=chunk) [RESULTS OF CONTINUING OPERATIONS](index=30&type=section&id=RESULTS%20OF%20CONTINUING%20OPERATIONS) Provides a detailed analysis of the company's operating results for the quarter - Operating income more than doubled to **$40.9 million** (9.0% of revenue) in Q1 FY2022 from $17.7 million (4.1% of revenue) in Q1 FY2021[138](index=138&type=chunk) - The effective tax rate decreased to **15.6%** in Q1 FY2022 from 25.5% in Q1 FY2021, partly due to $3.2 million in energy efficiency tax credits[138](index=138&type=chunk) Summary of Operations | $ in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Total Revenue | $454,149 | $428,539 | | Total Gross Profit | $97,400 | $75,293 | | Homebuilding Gross Margin | 20.9% | 17.6% | | SG&A as a percentage of total revenue | 11.8% | 12.7% | | Operating Income | $40,939 | $17,688 | | Operating income as a percentage of total revenue | 9.0% | 4.1% | | Effective tax rate | 15.6% | 25.5% | [EBITDA: Reconciliation of Net Income to Adjusted EBITDA](index=31&type=section&id=EBITDA:%20Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Presents a reconciliation of the non-GAAP measure Adjusted EBITDA to net income - Adjusted EBITDA increased by **$17.5 million** to **$61.1 million** for the three months ended December 31, 2021, reflecting improved operating performance[142](index=142&type=chunk) Adjusted EBITDA Reconciliation | in thousands | Three Months Ended Dec 31, 2021 | Three Months Ended Dec 31, 2020 | Change | | :------------- | :------------------------------ | :------------------------------ | :----- | | Net income | $34,885 | $11,997 | $22,888 | | EBIT | $56,125 | $36,524 | $19,601 | | EBITDA | $59,006 | $39,646 | $19,360 | | Adjusted EBITDA | $61,114 | $43,612 | $17,502 | [Homebuilding Operations Data](index=32&type=section&id=Homebuilding%20Operations%20Data) Analyzes key operational metrics including new orders, backlog, and cancellation rates - Net new orders decreased by **20.9%** to 1,141 units, primarily due to a 16.2% decrease in active community count[144](index=144&type=chunk) - Aggregate dollar value of homes in backlog increased by **20.9%** to **$1,405.2 million**, driven by a 17.9% increase in Average Selling Price (ASP)[145](index=145&type=chunk) - Construction cycle times have extended by an average of **two to three months** due to supply chain disruptions[145](index=145&type=chunk) New Orders and Cancellation Rates by Segment | | New Orders, net (2021) | New Orders, net (2020) | Change | Cancellation Rates (2021) | Cancellation Rates (2020) | | :---------- | :--------------------- | :--------------------- | :----- | :------------------------ | :------------------------ | | West | 655 | 782 | (16.2)% | 12.8% | 14.6% | | East | 236 | 320 | (26.3)% | 13.9% | 8.6% | | Southeast | 250 | 340 | (26.5)% | 7.1% | 10.1% | | Total | 1,141 | 1,442 | (20.9)% | 11.8% | 12.3% | Backlog by Segment | | Backlog Units (2021) | Backlog Units (2020) | Change | | :---------- | :------------------- | :------------------- | :----- | | West | 1,705 | 1,505 | 13.3% | | East | 602 | 721 | (16.5)% | | Southeast | 601 | 611 | (1.6)% | | Total | 2,908 | 2,837 | 2.5% | | Aggregate dollar value of homes in backlog (in millions) | $1,405.2 | $1,162.4 | 20.9% | | ASP in backlog (in thousands) | $483.2 | $409.7 | 17.9% | [Homebuilding Revenue, Average Selling Price, and Closings](index=33&type=section&id=Homebuilding%20Revenue,%20Average%20Selling%20Price,%20and%20Closings) Breaks down homebuilding revenue, ASP, and closings by geographic segment - Total homebuilding revenue increased by **5.3%** to **$446.7 million**, driven by a 15.1% increase in ASP to $438.4 thousand, despite an 8.5% decrease in closings[147](index=147&type=chunk) - West and East segments saw revenue increases, while the Southeast segment experienced an **18.6% decrease** in revenue due to a significant drop in closings[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) Homebuilding Revenue, ASP, and Closings by Segment | $ in thousands | Homebuilding Revenue (2021) | Homebuilding Revenue (2020) | Change | Average Selling Price (2021) | Average Selling Price (2020) | Change | Closings (2021) | Closings (2020) | Change | | :------------- | :-------------------------- | :-------------------------- | :----- | :--------------------------- | :--------------------------- | :----- | :-------------- | :-------------- | :----- | | West | $256,492 | $232,940 | 10.1% | $425.4 | $362.8 | 17.3% | 603 | 642 | (6.1)% | | East | $114,287 | $97,964 | 16.7% | $466.5 | $439.3 | 6.2% | 245 | 223 | 9.9% | | Southeast | $75,950 | $93,325 | (18.6)% | $444.2 | $374.8 | 18.5% | 171 | 249 | (31.3)% | | Total | $446,729 | $424,229 | 5.3% | $438.4 | $380.8 | 15.1% | 1,019 | 1,114 | (8.5)% | [Homebuilding Gross Profit and Gross Margin](index=34&type=section&id=Homebuilding%20Gross%20Profit%20and%20Gross%20Margin) Analyzes the profitability of homebuilding operations by segment - Homebuilding gross profit increased by **$18.5 million** to $93.3 million, with gross margin improving by **330 basis points** to 20.9%[155](index=155&type=chunk) - Excluding impairments, abandonments, and interest, homebuilding gross margin increased by **210 basis points** to 24.2%, driven by lower sales incentives and pricing increases[155](index=155&type=chunk) - West and East segments saw increased gross profit and margin, while the Southeast segment's gross profit decreased[157](index=157&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) Homebuilding Gross Profit and Margin by Segment | $ in thousands | HB Gross Profit (2021) | HB Gross Margin (2021) | HB Gross Profit (2020) | HB Gross Margin (2020) | | :------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | West | $62,927 | 24.5% | $52,874 | 22.7% | | East | $25,534 | 22.3% | $19,865 | 20.3% | | Southeast | $16,035 | 21.1% | $19,822 | 21.2% | | Total homebuilding | $93,304 | 20.9% | $74,837 | 17.6% | [Land Sales and Other Revenue and Gross Profit](index=36&type=section&id=Land%20Sales%20and%20Other%20Revenue%20and%20Gross%20Profit) Details revenue and profit from land sales and other ancillary activities - Total land sales and other revenue increased by **$3.1 million** to $7.4 million, with gross profit increasing by **$3.6 million** to $4.1 million[166](index=166&type=chunk) - The increase was primarily driven by land sales in the East and Southeast segments as the company divested non-strategic land positions[167](index=167&type=chunk) Land Sales and Other Revenue by Segment | in thousands | Land Sales and Other Revenue (2021) | Land Sales and Other Revenue (2020) | Change | Land Sales and Other Gross Profit (2021) | Land Sales and Other Gross Profit (2020) | Change | | :------------- | :---------------------------------- | :---------------------------------- | :----- | :--------------------------------------- | :--------------------------------------- | :----- | | West | $1,174 | $3,940 | $(2,766) | $478 | $707 | $(229) | | East | $3,882 | $0 | $3,882 | $3,407 | $0 | $3,407 | | Southeast | $2,364 | $370 | $1,994 | $211 | $57 | $154 | | Total | $7,420 | $4,310 | $3,110 | $4,096 | $456 | $3,640 | [Operating Income](index=36&type=section&id=Operating%20Income) Analyzes operating income by segment and discusses corporate expenses - Operating income increased by **$23.3 million** to **$40.9 million**, primarily due to increased gross profit and a 90 basis point decrease in SG&A as a percentage of total revenue[169](index=169&type=chunk) - Corporate and unallocated net expenses decreased by **$7.4 million**, mainly due to lower amortization of capitalized interest and reduced G&A[174](index=174&type=chunk) Operating Income by Segment | in thousands | December 31, 2021 | December 31, 2020 | Change | | :------------- | :------------------ | :------------------ | :----- | | West | $42,724 | $33,303 | $9,421 | | East | $19,859 | $11,368 | $8,491 | | Southeast | $8,200 | $10,308 | $(2,108) | | Corporate and unallocated | $(29,844) | $(37,291) | $7,447 | | Operating income | $40,939 | $17,688 | $23,251 | [Income Taxes](index=37&type=section&id=Income%20Taxes) Discusses the factors affecting the company's income tax expense - Income tax expense from continuing operations was **$6.5 million** for Q1 FY2022, up from $4.1 million in Q1 FY2021[177](index=177&type=chunk) - The current period's tax expense was influenced by earnings, additional federal tax credits, and discrete tax benefits from stock-based compensation[177](index=177&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet its short-term and long-term obligations - Net cash used in operating activities increased to **$77.8 million**, primarily due to a $79.2 million increase in inventory spending[181](index=181&type=chunk) - Net cash used in financing activities increased to **$6.6 million**, mainly due to tax payments for stock-based compensation[184](index=184&type=chunk) - As of December 31, 2021, liquidity included **$157.7 million** in cash and **$250.0 million** available under the Secured Revolving Credit Facility[185](index=185&type=chunk)[188](index=188&type=chunk) - The company controlled **23,049 lots**, with 49.2% under option contracts, representing a remaining purchase price of $715.4 million[199](index=199&type=chunk) - Outstanding letters of credit and surety bonds totaled **$31.9 million** and **$281.8 million**, respectively[204](index=204&type=chunk) Summary of Cash Flows | in thousands | December 31, 2021 | December 31, 2020 | | :------------- | :------------------ | :------------------ | | Cash used in operating activities | $(77,817) | $(74,578) | | Cash used in investing activities | $(2,811) | $(2,858) | | Cash used in financing activities | $(6,618) | $(3,044) | | Net decrease in cash, cash equivalents, and restricted cash | $(87,246) | $(80,480) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to fluctuations in interest rates - As of December 31, 2021, the company had **$70.7 million** in variable-rate debt; a one percent interest rate increase would raise interest expense by approximately **$1.0 million** annually[212](index=212&type=chunk) - The estimated fair value of fixed-rate debt was **$1.06 billion**, compared to a carrying amount of $0.98 billion[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures with no material changes in internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2021[213](index=213&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended December 31, 2021[215](index=215&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - No other information is reported in this section[219](index=219&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes information on legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 9 of the financial statements for details on the company's legal proceedings - For details on legal proceedings, refer to **Note 9** of the condensed consolidated financial statements[220](index=220&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to risk factors from the latest Annual Report on Form 10-K - **No material changes** to risk factors were reported compared to the 2021 Annual Report on Form 10-K[221](index=221&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the Quarterly Report on Form 10-Q - Exhibits include Inline XBRL documents and certifications from the CEO and CFO as required by the **Sarbanes-Oxley Act of 2002**[218](index=218&type=chunk)[222](index=222&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) Contains the official sign-off by the company's authorized officer - The report was signed by David I Goldberg, Senior Vice President and Chief Financial Officer, on behalf of Beazer Homes USA, Inc on **January 27, 2022**[225](index=225&type=chunk)[228](index=228&type=chunk)

Beazer Homes USA, Inc. Q4 2021 Earnings Presentation Crossroads at Southport Indianapolis, IN 1 Forward Looking Statements This presentation 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 ...

Beazer Homes USA, Inc. (NYSE:BZH) Q4 2021 Results Earnings Conference Call November 10, 2021 5:00 PM ET Company Participants David Goldberg - Senior Vice President and Chief Financial Officer Allan Merrill - Chairman and Chief Executive Officer Conference Call Participants Julio Romero - Sidoti & Company Tyler Batory - Janney Alan Ratner - Zelman and Associates Alex Barron - Housing Research Center Jay McCandless - Wedbush Operator Good afternoon. And welcome to the Beazer Homes Earnings Conference Call for ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________ FORM 10-K _____________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-12822 | --- | --- | |------------------------------- ...

Beazer Homes USA, Inc. Q3 2021 Earnings Presentation Lochmar Cumming, GA 1 Forward Looking Statements This presentation 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 dif ...

Beazer Homes USA, Inc. (NYSE:BZH) Q3 2021 Results Conference Call July 29, 2021 5:00 PM ET Company Participants David Goldberg - Senior Vice President and Chief Financial Officer Allan Merrill - Chairman and Chief Executive Officer Conference Call Participants Alan Ratner - Zelman & Associates. Alex Barron - Housing Research Center Julio Romero - Sidoti & Company Operator Good afternoon, and welcome to the Beazer Earnings Conference Call for the Quarter Ended June 30, 2021. Today's call is being recorded a ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value BZH New York Stock Exchange _____________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1 ...

Beazer Homes USA, Inc. Q2 2021 Earnings Presentation Sienna Missouri City, Tx 1 Forward Looking Statements This presentation 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 t ...

Financial Data and Key Metrics Changes - New home orders increased approximately 12% to 1,854, with sales pace up more than 40% to 4.7 sales per community per month [18] - Homebuilding revenue rose about 12% to $547 million on 9% higher closings [18] - Gross margin, excluding amortized interest, impairment, and abandonment, was 22.2%, up approximately 140 basis points [18] - Adjusted EBITDA was $64.2 million, up over 45%, with an EBITDA margin of 11.7%, the highest second quarter level in the past 10 years [19] - Net income from continuing operations was $24.6 million, yielding earnings per share of $0.81, more than double the same period last year [19] - Full-year earnings per share is now expected to be above $3, up from previous guidance of at least $2.50 [20] Business Line Data and Key Metrics Changes - The company successfully adapted to increased construction costs by raising prices, limiting sales paces, and extending delivery dates on sold homes [7] - The backlog of sold and already started homes is up more than 50%, indicating strong future performance [12] Market Data and Key Metrics Changes - The housing shortage is estimated to be closer to 4 million homes, significantly higher than previous estimates [10] - Strong demographic demand and limited supply are expected to sustain housing market strength [9] Company Strategy and Development Direction - The company aims to create value for stakeholders by delivering homes on time and at intended margins [7] - A balanced growth strategy is emphasized, focusing on generating shareholder value while managing risk [13] - The company is committed to having every home built Net Zero Energy Ready by 2025, with recent recognition as ENERGY STAR Partner of the Year for the sixth consecutive year [8][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of housing market strength due to demographic demand and a recovering economy [9][11] - The company anticipates a multimillion dollar reduction in GAAP interest expense based on actions already taken [17] - Management acknowledged challenges in production capacity but expects improvements over time [35] Other Important Information - The company ended the second quarter with over $600 million in liquidity, more than double the amount from the previous year [22] - Approximately $100 million was spent on land acquisition and development during the quarter, with expectations for total land spend to exceed $600 million for the year [23] Q&A Session Summary Question: How does the company approach the market with differing sales strategies? - The company is navigating between "to be built" and "started" sales strategies based on cost certainty and market conditions [31] Question: What is the current production pace and capacity? - Production capacity is expected to improve over time, but there are no immediate increases in throughput [34] Question: How much more pricing power exists in the current environment? - There is a breaking point related to affordability, and while there is current pricing power, it may not be sustainable long-term [39][40] Question: Are there changes in consumer preferences affecting product mix? - There is increased demand for home office and homeschooling spaces, influencing architectural designs [42][45] Question: What is the progress on the Net Zero Energy Ready commitment? - The commitment remains strong, with recognition as ENERGY STAR Partner of the Year, but changes in existing communities are limited [46][47] Question: What are the uses of cash and capital allocation strategy? - The focus is on investing in the business and reducing debt below $1 billion by the end of fiscal '22 [58][59]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, and specific financial line items for the periods ended March 31, 2021, and September 30, 2020 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets from $2,007,480 thousand as of September 30, 2020, to $2,055,571 thousand as of March 31, 2021, primarily driven by an increase in owned inventory and cash. Total liabilities also increased slightly, while total stockholders' equity improved Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2021 | September 30, 2020 | | :----------------- | :------------- | :----------------- | | Total Assets | $2,055,571 | $2,007,480 | | Cash & Equivalents | $355,533 | $327,693 | | Owned Inventory | $1,383,616 | $1,350,738 | | Total Liabilities | $1,421,804 | $1,414,309 | | Total Equity | $633,767 | $593,171 | - Total assets increased by **$48,091 thousand (2.4%)** from September 30, 2020, to March 31, 2021[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported significant increases in revenue and net income for both the three and six months ended March 31, 2021, compared to the same periods in 2020, indicating improved operational performance Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Total Revenue | $549,889 | $489,413 | $978,428 | $907,217 | | Net Income | $24,528 | $10,614 | $36,525 | $13,360 | | Basic Income Per Share (Continuing Ops) | $0.82 | $0.36 | $1.23 | $0.45 | | Diluted Income Per Share (Continuing Ops) | $0.81 | $0.35 | $1.22 | $0.45 | - Net income for the three months ended March 31, 2021, increased by **131.1%** year-over-year[11](index=11&type=chunk) - Diluted EPS from continuing operations for the six months ended March 31, 2021, increased by **171.1%** year-over-year[11](index=11&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased from $593,171 thousand as of September 30, 2020, to $633,767 thousand as of March 31, 2021, primarily due to net income and stock-based compensation expense, partially offset by common stock redemptions for tax liability Stockholders' Equity Changes (in thousands) | Metric | Six Months Ended March 31, 2021 | | :------------------------------------ | :------------------------------ | | Balance as of September 30, 2020 | $593,171 | | Net income and comprehensive income | $36,525 | | Stock-based compensation expense | $6,060 | | Common stock redeemed for tax liability | $(2,620) | | Balance as of March 31, 2021 | $633,767 | - Total stockholders' equity increased by **$40,596 thousand** from September 30, 2020, to March 31, 2021[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended March 31, 2021, the company generated significant cash from operating activities, a substantial improvement from cash used in the prior year, with cash used in investing activities remaining stable and financing activities increasing due to debt repurchases Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :------------------------------------------------ | :------------------------------ | :------------------------------ | | Net cash provided by (used in) operating activities | $50,139 | $(45,913) | | Net cash used in investing activities | $(6,344) | $(5,342) | | Net cash (used in) provided by financing activities | $(12,628) | $241,008 | | Net increase in cash, equivalents, and restricted cash | $31,167 | $189,753 | - Net cash provided by operating activities improved by **$96,052 thousand** year-over-year for the six months ended March 31, 2021[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering business description, accounting policies, specific balance sheet and income statement items, and other financial information [(1) Description of Business](index=9&type=section&id=(1)%20Description%20of%20Business) Beazer Homes USA, Inc. is a geographically diversified homebuilder operating in 13 states across three regions in the United States, focusing on providing value and quality homes at various price points - Beazer Homes USA, Inc. is a geographically diversified homebuilder with active operations in **13 states** within **three geographic regions**: the West, East, and Southeast[20](index=20&type=chunk) - The company's objective is to provide customers with homes that incorporate exceptional value and quality, while seeking to maximize return on invested capital[21](index=21&type=chunk) [(2) Basis of Presentation and Summary of Significant Accounting Policies](index=9&type=section&id=(2)%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information, and management's estimates are used. The company's fiscal year ends September 30, and results are not necessarily indicative of full-year performance due to seasonality and COVID-19 impacts - The unaudited condensed consolidated financial statements are prepared in accordance with **GAAP** for interim financial information and instructions to Form 10-Q[23](index=23&type=chunk) - The results for the three and six months ended March 31, 2021, are not necessarily indicative of full fiscal year results due to seasonal variations and the effects of the **COVID-19 pandemic**[23](index=23&type=chunk) Total Revenue Disaggregated by Revenue Stream (in thousands) | Revenue Stream | March 31, 2021 (3 Months) | March 31, 2020 (3 Months) | March 31, 2021 (6 Months) | March 31, 2020 (6 Months) | | :--------------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Homebuilding revenue | $547,417 | $487,986 | $971,646 | $905,385 | | Land sales and other | $2,472 | $1,427 | $6,782 | $1,832 | | **Total Revenue** | **$549,889** | **$489,413** | **$978,428** | **$907,217** | [(3) Supplemental Cash Flow Information](index=11&type=section&id=(3)%20Supplemental%20Cash%20Flow%20Information) This section provides supplemental non-cash and cash activity details, including interest and income tax payments, and a reconciliation of cash, cash equivalents, and restricted cash Supplemental Cash Flow Information (in thousands) | Metric | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :------------------------------------------------------------------- | :------------------------------ | :------------------------------ | | Interest payments | $37,412 | $28,731 | | Income tax payments | $143 | $2 | | Cash, cash equivalents, and restricted cash at end of period (reconciled) | $373,695 | $312,547 | - Interest payments increased by **$8,681 thousand (30.2%)** for the six months ended March 31, 2021, compared to the prior year[36](index=36&type=chunk) [(4) Investments in Unconsolidated Entities](index=12&type=section&id=(4)%20Investments%20in%20Unconsolidated%20Entities) The company holds investments in unconsolidated entities, primarily joint ventures, but had no outstanding guarantees or debt-related obligations for these entities as of March 31, 2021, and September 30, 2020 Investments in Unconsolidated Entities (in thousands) | Metric | March 31, 2021 | September 30, 2020 | | :-------------------------------------- | :------------- | :----------------- | | Investment in unconsolidated entities | $4,114 | $4,003 | | Total equity of unconsolidated entities | $7,009 | $7,079 | | Total outstanding borrowings | $13,497 | $8,807 | - The company had **no outstanding guarantees** or other debt-related obligations related to its investments in unconsolidated entities as of March 31, 2021, and September 30, 2020[38](index=38&type=chunk) [(5) Inventory](index=13&type=section&id=(5)%20Inventory) Total owned inventory increased to $1,383,616 thousand as of March 31, 2021, from $1,350,738 thousand as of September 30, 2020, with homes under construction seeing a significant rise. No inventory impairment charges were recognized during the three and six months ended March 31, 2021 or 2020 Components of Owned Inventory (in thousands) | Component | March 31, 2021 | September 30, 2020 | | :----------------------------- | :------------- | :----------------- | | Homes under construction | $653,137 | $525,021 | | Development projects in progress | $517,037 | $589,763 | | Land held for future development | $23,068 | $28,531 | | Land held for sale | $8,851 | $12,622 | | Capitalized interest | $113,414 | $119,659 | | Model homes | $68,109 | $75,142 | | **Total owned inventory** | **$1,383,616** | **$1,350,738** | - Homes under construction increased by **$128,116 thousand (24.4%)** from September 30, 2020, to March 31, 2021[42](index=42&type=chunk) - **No project in progress or land held for sale impairment charges** were recognized during the three and six months ended March 31, 2021 and 2020[50](index=50&type=chunk)[51](index=51&type=chunk) [(6) Interest](index=15&type=section&id=(6)%20Interest) Capitalized interest decreased from $119,659 thousand at September 30, 2020, to $113,414 thousand at March 31, 2021. Interest amortized to home construction and land sales expenses increased for both the three and six months ended March 31, 2021, compared to the prior year Interest Information (in thousands) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Capitalized interest at beginning of period | $119,148 | $137,010 | $119,659 | $136,565 | | Interest incurred and capitalized | $19,345 | $22,271 | $39,247 | $43,827 | | Interest amortized to COS | $(24,110) | $(22,660) | $(42,923) | $(42,329) | | Capitalized interest at end of period | $113,414 | $134,693 | $113,414 | $134,693 | - Interest amortized to home construction and land sales expenses increased by **$1,450 thousand (6.4%)** for the three months ended March 31, 2021, compared to the prior year[56](index=56&type=chunk) [(7) Borrowings](index=16&type=section&id=(7)%20Borrowings) Total debt, net, decreased slightly to $1,123,001 thousand as of March 31, 2021, from $1,130,801 thousand as of September 30, 2020. The company repurchased a portion of its 2027 Senior Notes, resulting in a loss on extinguishment of debt, and its Secured Revolving Credit Facility has $250.0 million remaining capacity with no outstanding borrowings Company's Debt, Net (in thousands) | Debt Type | March 31, 2021 | September 30, 2020 | | :------------------------------ | :------------- | :----------------- | | Senior Unsecured Term Loan | $100,000 | $100,000 | | 6 3/4% Senior Notes (2025) | $229,555 | $229,555 | | 5 7/8% Senior Notes (2027) | $384,255 | $394,000 | | 7 1/4% Senior Notes (2029) | $350,000 | $350,000 | | Junior Subordinated Notes | $69,170 | $68,137 | | **Total debt, net** | **$1,123,001** | **$1,130,801** | - During the three months ended March 31, 2021, the company repurchased **$9.7 million** of its outstanding 2027 Notes, resulting in a loss on extinguishment of debt of **$0.6 million**[69](index=69&type=chunk) - As of March 31, 2021, the Secured Revolving Credit Facility had **$250.0 million** remaining capacity with **no outstanding borrowings** or letters of credit[61](index=61&type=chunk) [(8) Operating Leases](index=19&type=section&id=(8)%20Operating%20Leases) The company leases office space and equipment, recognizing operating lease expense on a straight-line basis. Operating lease expense for the three and six months ended March 31, 2021, was $1.1 million and $2.2 million, respectively - Operating lease expense for the three months ended March 31, 2021, was **$1.1 million**, and for the six months ended March 31, 2021, was **$2.2 million**[78](index=78&type=chunk) Operating Lease Liabilities (in thousands) | Metric | March 31, 2021 | | :------------------------------------ | :------------- | | Total lease payments | $16,477 | | Less: Imputed interest | $1,874 | | **Total operating lease liabilities** | **$14,603** | - As of March 31, 2021, the weighted-average remaining lease term was **5.0 years**, and the weighted-average discount rate was **4.76%**[82](index=82&type=chunk) [(9) Contingencies](index=21&type=section&id=(9)%20Contingencies) The company is involved in various construction defect claims and legal actions. Warranty reserves decreased slightly to $12.4 million as of March 31, 2021, and litigation accruals decreased to $4.2 million. Management believes the ultimate resolution of these matters will not have a material adverse effect Warranty Reserve Activity (in thousands) | Metric | March 31, 2021 (3 Months) | March 31, 2020 (3 Months) | March 31, 2021 (6 Months) | March 31, 2020 (6 Months) | | :---------------------------------------------- | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Balance at beginning of period | $12,616 | $12,646 | $13,052 | $13,388 | | Accruals for warranties issued | $2,783 | $2,707 | $5,037 | $4,372 | | Changes in liability related to prior periods | $(57) | $(1,151) | $320 | $(1,084) | | Payments made | $(2,921) | $(2,144) | $(5,988) | $(4,618) | | **Balance at end of period** | **$12,421** | **$12,058** | **$12,421** | **$12,058** | - Litigation accruals were **$4.2 million** as of March 31, 2021, down from **$5.0 million** as of September 30, 2020[95](index=95&type=chunk)[120](index=120&type=chunk) - Outstanding letters of credit and surety bonds totaled approximately **$37.1 million** and **$249.9 million**, respectively, as of March 31, 2021[95](index=95&type=chunk) [(10) Fair Value Measurements](index=22&type=section&id=(10)%20Fair%20Value%20Measurements) The company uses a fair value hierarchy (Level 1, 2, 3) for asset and liability measurements. Deferred compensation plan assets are measured at Level 2, while impaired inventory and investments in unconsolidated entities are classified as Level 3 due to unobservable inputs. No impairments were recognized on projects in process or land held for sale during the reported periods Assets Measured at Fair Value (in thousands) | Asset | March 31, 2021 (Level 2) | September 30, 2020 (Level 2) | | :---------------------------------- | :----------------------- | :--------------------------- | | Deferred compensation plan assets | $2,610 | $2,339 | - **No impairments** were recognized on projects in process or land held for sale during the three and six months ended March 31, 2021 and 2020[100](index=100&type=chunk) Financial Liabilities Fair Value (in thousands) | Liability | March 31, 2021 Carrying Amount | March 31, 2021 Fair Value | September 30, 2020 Carrying Amount | September 30, 2020 Fair Value | | :------------------------------ | :----------------------------- | :------------------------ | :--------------------------------- | :---------------------------- | | Senior Notes and Term Loan | $1,053,831 | $1,127,303 | $1,062,664 | $1,098,117 | | Junior Subordinated Notes | $69,170 | $69,170 | $68,137 | $68,137 | [(11) Income Taxes](index=24&type=section&id=(11)%20Income%20Taxes) Income tax expense from continuing operations significantly increased for the three and six months ended March 31, 2021, primarily due to higher income and the discrete impact of stock-based compensation. The company continues to evaluate its deferred tax assets and believes a substantial portion will be realized Income Tax Expense from Continuing Operations (in thousands) | Period | March 31, 2021 (3 Months) | March 31, 2020 (3 Months) | March 31, 2021 (6 Months) | March 31, 2020 (6 Months) | | :------------------------------------ | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Expense from income taxes | $7,704 | $4,170 | $11,829 | $3,959 | - Income tax expense for the six months ended March 31, 2021, was substantially driven by income from continuing operations and the discrete impact related to **stock-based compensation expense**[106](index=106&type=chunk) - Management concluded that it is more likely than not that a **substantial portion** of the company's deferred tax assets will be realized as of March 31, 2021[107](index=107&type=chunk) [(12) Stock-based Compensation](index=25&type=section&id=(12)%20Stock-based%20Compensation) Stock-based compensation expense increased for both the three and six months ended March 31, 2021. Unrecognized compensation costs for restricted stock awards increased to $10.4 million, expected to be recognized over 1.70 years Stock-based Compensation Expense (in thousands) | Period | March 31, 2021 (3 Months) | March 31, 2020 (3 Months) | March 31, 2021 (6 Months) | March 31, 2020 (6 Months) | | :------------------------------------ | :------------------------ | :------------------------ | :------------------------ | :------------------------ | | Stock-based compensation expense | $2,549 | $899 | $6,060 | $3,210 | - Total unrecognized compensation costs related to unvested restricted stock awards was **$10.4 million** as of March 31, 2021, up from **$9.0 million** as of September 30, 2020[114](index=114&type=chunk) - The remaining costs for restricted stock awards are expected to be recognized over a weighted-average period of **1.70 years**[114](index=114&type=chunk) [(13) Earnings Per Share](index=26&type=section&id=(13)%20Earnings%20Per%20Share) Basic and diluted EPS from continuing operations significantly increased for both the three and six months ended March 31, 2021, reflecting higher net income Earnings Per Share (except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Basic Income Per Share (Continuing Ops) | $0.82 | $0.36 | $1.23 | $0.45 | | Diluted Income Per Share (Continuing Ops) | $0.81 | $0.35 | $1.22 | $0.45 | - Diluted weighted-average shares increased to **30,215 thousand** for the three months ended March 31, 2021, from **29,975 thousand** in the prior year[118](index=118&type=chunk) [(14) Other Liabilities](index=27&type=section&id=(14)%20Other%20Liabilities) Total other liabilities decreased slightly to $133,568 thousand as of March 31, 2021, from $135,983 thousand as of September 30, 2020. Accrued compensations and benefits saw a notable decrease, while customer deposits increased Other Liabilities (in thousands) | Liability | March 31, 2021 | September 30, 2020 | | :------------------------------ | :------------- | :----------------- | | Accrued compensations and benefits | $35,775 | $50,246 | | Customer deposits | $27,316 | $18,937 | | Accrued interest | $23,539 | $23,870 | | Warranty reserve | $12,421 | $13,052 | | Litigation accruals | $4,169 | $4,981 | | Income tax liabilities | $717 | $584 | | Other | $29,631 | $24,313 | | **Total** | **$133,568** | **$135,983** | - Accrued compensations and benefits decreased by **$14,471 thousand (28.8%)** from September 30, 2020, to March 31, 2021[120](index=120&type=chunk) - Customer deposits increased by **$8,379 thousand (44.2%)** from September 30, 2020, to March 31, 2021[120](index=120&type=chunk) [(15) Segment Information](index=27&type=section&id=(15)%20Segment%20Information) The company operates in three homebuilding segments: West, East, and Southeast. All segments reported increased revenue and operating income for the three and six months ended March 31, 2021, compared to the prior year, with the East segment showing the most significant revenue growth Revenue by Reportable Segment (in thousands) | Segment | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :-------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | West | $278,720 | $267,731 | $515,600 | $522,129 | | East | $153,571 | $110,941 | $251,535 | $188,981 | | Southeast | $117,598 | $110,741 | $211,293 | $196,107 | | **Total** | **$549,889** | **$489,413** | **$978,428** | **$907,217** | Operating Income by Reportable Segment (in thousands) | Segment | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :-------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | West | $42,488 | $33,223 | $75,791 | $63,554 | | East | $22,449 | $11,513 | $33,817 | $16,834 | | Southeast | $15,074 | $8,814 | $25,382 | $11,970 | | **Total** | **$33,618** | **$16,424** | **$51,306** | **$20,370** | - East segment revenue increased by **38.4%** for the three months ended March 31, 2021, compared to the prior year[123](index=123&type=chunk) [(16) Discontinued Operations](index=29&type=section&id=(16)%20Discontinued%20Operations) The company has classified results from certain exited markets as discontinued operations. For the three and six months ended March 31, 2021, discontinued operations reported losses of $115 thousand and $154 thousand, respectively Loss from Discontinued Operations, Net of Tax (in thousands) | Period | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Loss from discontinued operations, net of tax | $(115) | $(1) | $(154) | $(59) | - There were **no material assets or liabilities** related to discontinued operations as of March 31, 2021, or September 30, 2020[129](index=129&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting market conditions, operational performance, profitability drivers, liquidity, and capital resources for the periods presented [Executive Overview and Outlook](index=30&type=section&id=Executive%20Overview%20and%20Outlook) Demand for new homes remains strong due to low interest rates and short supply, despite COVID-19 volatility. The company improved net new orders, sales pace, backlog, gross margin, and net income in Q2 fiscal 2021. It continues to execute a balanced growth strategy, expanding earnings faster than revenue and growing its total lot position - Net income from continuing operations for Q2 fiscal 2021 was **$24.6 million**, or diluted EPS of **$0.81**, compared to **$10.6 million**, or diluted EPS of **$0.35**, in Q2 fiscal 2020[135](index=135&type=chunk) - Sales per community per month increased to **4.7** for Q2 fiscal 2021, up from **3.3** in the prior year quarter[136](index=136&type=chunk) - The company committed to ensuring each home built is **Net Zero Energy Ready** (HERS index score of **45 or less**) by the end of **2025**[143](index=143&type=chunk) [Homebuilding Operations Data](index=34&type=section&id=Homebuilding%20Operations%20Data) Net new orders increased significantly for both the three and six months ended March 31, 2021, driven by higher absorption rates and lower cancellation rates across all segments, despite a decrease in average active community count. Backlog units and aggregate dollar value also saw substantial increases Net New Orders and Cancellation Rates | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Net New Orders, net | 1,854 | 1,661 | 3,296 | 2,912 | | Cancellation Rates | 10.0% | 15.8% | 11.0% | 15.4% | Backlog Data (as of March 31) | Metric | 2021 | 2020 | Change (%) | | :------------------------------------ | :------------ | :------------ | :--------- | | Backlog Units | 3,303 | 2,231 | 48.1% | | Aggregate dollar value of homes in backlog (in millions) | $1,386.4 | $895.0 | 54.9% | | ASP in backlog (in thousands) | $419.7 | $401.2 | 4.6% | - The increase in net new orders was driven primarily by an increase in absorption rate from **3.3 sales per community per month** in the prior year quarter to **4.7**, and a decrease in cancellation rates[152](index=152&type=chunk) [Homebuilding Revenue, Average Selling Price, and Closings](index=35&type=section&id=Homebuilding%20Revenue,%20Average%20Selling%20Price,%20and%20Closings) Homebuilding revenue increased for both the three and six months ended March 31, 2021, primarily due to higher average selling prices (ASP) and increased closings. The East segment showed the most significant growth in closings Homebuilding Revenue, ASP, and Closings | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Homebuilding Revenue (in thousands) | $547,417 | $487,986 | $971,646 | $905,385 | | Average Selling Price (in thousands) | $394.4 | $382.1 | $388.3 | $379.0 | | Closings | 1,388 | 1,277 | 2,502 | 2,389 | - Homebuilding revenue increased by **12.2%** for the three months ended March 31, 2021, compared to the prior year[155](index=155&type=chunk) - Closings in the East segment increased by **36.6%** for the three months ended March 31, 2021, compared to the prior year[155](index=155&type=chunk) [Homebuilding Gross Profit and Gross Margin](index=36&type=section&id=Homebuilding%20Gross%20Profit%20and%20Gross%20Margin) Homebuilding gross profit and gross margin significantly improved for both the three and six months ended March 31, 2021, driven by increased revenue, lower sales incentives, and pricing increases. Excluding impairments and interest, gross margin also saw substantial growth Homebuilding Gross Profit and Gross Margin (in thousands) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :---------------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Homebuilding Gross Profit | $97,456 | $78,744 | $172,293 | $141,852 | | Homebuilding Gross Margin | 17.8% | 16.1% | 17.7% | 15.7% | | HB Gross Profit w/o I&A and Interest | $121,566 | $101,404 | $215,428 | $184,181 | | HB Gross Margin w/o I&A and Interest | 22.2% | 20.8% | 22.2% | 20.3% | - Homebuilding gross margin increased by **170 basis points** to **17.8%** for the three months ended March 31, 2021, primarily due to lower sales incentives and pricing increases[163](index=163&type=chunk)[165](index=165&type=chunk) - Homebuilding gross margin, excluding impairments and abandonments and interest, increased by **190 basis points** to **22.2%** for the six months ended March 31, 2021[164](index=164&type=chunk) [Land Sales and Other Revenue and Gross Profit](index=38&type=section&id=Land%20Sales%20and%20Other%20Revenue%20and%20Gross%20Profit) Land sales and other revenue and gross profit increased substantially for both the three and six months ended March 31, 2021, as the company focused on selling land positions that did not align with its strategic plans to reduce leverage Land Sales and Other Revenue and Gross Profit (in thousands) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Land Sales and Other Revenue | $2,472 | $1,427 | $6,782 | $1,832 | | Land Sales and Other Gross Profit | $470 | $101 | $926 | $130 | - Land sales and other revenue increased by **$4,950 thousand (270.2%)** for the six months ended March 31, 2021, compared to the prior year[171](index=171&type=chunk) - The company focused on closing land sales for land positions that did not fit within its strategic plans to **reduce leverage**[172](index=172&type=chunk) [Operating Income](index=39&type=section&id=Operating%20Income) Operating income significantly increased for both the three and six months ended March 31, 2021, primarily driven by higher gross profit and improved SG&A leverage Operating Income (in thousands) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Operating Income | $33,618 | $16,424 | $51,306 | $20,370 | | SG&A as a percentage of total revenue | 11.0% | 12.0% | 11.8% | 12.6% | - Operating income increased by **$17.2 million (104.7%)** for the three months ended March 31, 2021, compared to the prior year[175](index=175&type=chunk) - SG&A as a percentage of total revenue decreased by **100 basis points** year-over-year for the three months ended March 31, 2021[175](index=175&type=chunk) [Income Taxes](index=40&type=section&id=Income%20Taxes) Income tax expense for the six months ended March 31, 2021, was primarily driven by income from continuing operations and the discrete impact of stock-based compensation. The company uses an annualized effective tax rate for interim periods - Current fiscal year-to-date income tax expense was primarily driven by income tax expense on earnings from **continuing operations**[188](index=188&type=chunk) - The company began using an **annualized effective tax rate** in interim periods starting fiscal 2016[187](index=187&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position as of March 31, 2021, included $355.5 million in cash and cash equivalents and $250.0 million in available capacity under its Secured Revolving Credit Facility. Net cash provided by operating activities significantly improved, while financing activities used cash due to debt repurchases - As of March 31, 2021, liquidity consisted of **$355.5 million** in cash and cash equivalents and **$250.0 million** of remaining capacity under the Secured Revolving Credit Facility[197](index=197&type=chunk) - Net cash provided by operating activities was **$50.1 million** for the six months ended March 31, 2021, a significant improvement from cash used in the prior year[192](index=192&type=chunk) - Net cash used in financing activities was **$12.6 million** for the six months ended March 31, 2021, primarily due to the repurchase of 2027 Senior Notes and tax payments for stock-based compensation awards[195](index=195&type=chunk) [Supplemental Guarantor Information](index=43&type=section&id=Supplemental%20Guarantor%20Information) Substantially all of the company's subsidiaries jointly and severally guarantee its obligations under certain debt agreements, including Senior Notes - The company's obligations to pay principal and interest under certain debt agreements are guaranteed on a **joint and several basis** by substantially all of its subsidiaries[206](index=206&type=chunk) Guarantor Subsidiaries Financial Information (in thousands) | Metric | March 31, 2021 | September 30, 2020 | | :------------------------------------ | :------------- | :----------------- | | Total assets | $2,053,259 | $2,006,611 | | Total liabilities | $1,415,446 | $1,414,105 | [Credit Ratings](index=43&type=section&id=Credit%20Ratings) Moody's reaffirmed the company's B3 rating and revised its outlook to positive in March 2021. S&P also revised its outlook to positive and reaffirmed its B- rating in October 2020, indicating improved credit perception - Moody's reaffirmed the company's issuer corporate family rating of **B3** and revised the outlook to **positive** in March 2021[208](index=208&type=chunk) - S&P revised the company's outlook to **positive** and reaffirmed its corporate credit rating of **B-** in October 2020[208](index=208&type=chunk) [Stock Repurchases and Dividends Paid](index=43&type=section&id=Stock%20Repurchases%20and%20Dividends%20Paid) No share repurchases were made during the three and six months ended March 31, 2021, with $12.0 million remaining under the repurchase program. No dividends were paid during these periods - **No share repurchases** were made during the three and six months ended March 31, 2021[209](index=209&type=chunk) - As of March 31, 2021, the remaining availability of the share repurchase program was **$12.0 million**[209](index=209&type=chunk) - **No dividends** were paid during the three and six months ended March 31, 2021 or 2020[210](index=210&type=chunk) [Off-Balance Sheet Arrangements and Aggregate Contractual Commitments](index=44&type=section&id=Off-Balance%20Sheet%20Arrangements%20and%20Aggregate%20Contractual%20Commitments) The company controls a significant portion of its land supply through lot option contracts, with $93.3 million in non-refundable deposits and $567.4 million in remaining purchase price obligations as of March 31, 2021. It also has outstanding letters of credit and surety bonds totaling $37.1 million and $249.9 million, respectively, related to development obligations - As of March 31, 2021, the company controlled **18,851 lots**, with **8,381 lots (46.0% of total active lots)** under option contracts[212](index=212&type=chunk) - Non-refundable deposits and other non-refundable amounts incurred under lot option contracts totaled approximately **$93.3 million** as of March 31, 2021[212](index=212&type=chunk) - Outstanding letters of credit and surety bonds were approximately **$37.1 million** and **$249.9 million**, respectively, as of March 31, 2021, primarily for obligations to local governments for development improvements[217](index=217&type=chunk) [Critical Accounting Policies and Estimates](index=45&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies, including inventory valuation, revenue recognition, warranty reserves, and income tax valuation allowances, remain consistent with those described in its 2020 Annual Report - There have been **no significant changes** to the company's critical accounting policies and estimates during the six months ended March 31, 2021, compared to those described in its 2020 Annual Report on Form 10-K[220](index=220&type=chunk) - Critical accounting policies relate to **inventory valuation** (projects in progress, land held for future development, and land held for sale), **revenue recognition**, **warranty reserves**, and **income tax valuation allowances** and ownership changes[220](index=220&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate fluctuations. As of March 31, 2021, it had $69.2 million in variable rate debt, and a one percent increase in interest rates would increase interest expense by approximately $1.0 million over the next twelve months - The company's primary market risk exposure relates to fluctuations in **interest rates**[227](index=227&type=chunk) - As of March 31, 2021, the company had approximately **$69.2 million** in variable rate debt outstanding[227](index=227&type=chunk) - A **one percent increase** in the interest rate for variable notes would result in an increase of interest expense by approximately **$1.0 million** over the next twelve-month period[227](index=227&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2021. There have been no material changes in internal control over financial reporting during the quarter, despite most employees working remotely due to COVID-19 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2021, at a reasonable assurance level[228](index=228&type=chunk) - There have been **no material changes** in the company's internal control over financial reporting during the quarter ended March 31, 2021[230](index=230&type=chunk) - The company has not experienced any material impact to its internal control over financial reporting despite most employees working remotely due to the **COVID-19 pandemic**[230](index=230&type=chunk) PART II. OTHER INFORMATION [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - **No other information** is reported in this section[234](index=234&type=chunk) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 of the condensed consolidated financial statements for a discussion of the company's legal proceedings - For a discussion of legal proceedings, refer to **Note 9** of the notes to the condensed consolidated financial statements[235](index=235&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended September 30, 2020 - There have been **no material changes** to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended September 30, 2020[236](index=236&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Inline XBRL documents and certifications from the CEO and CFO - The exhibits include various **Inline XBRL documents** (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents)[233](index=233&type=chunk) - Certifications of the Chief Executive Officer and Chief Financial Officer pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002** are included[237](index=237&type=chunk) [SIGNATURES](index=49&type=section&id=SIGNATURES) The report was signed on behalf of Beazer Homes USA, Inc. by David I. Goldberg, Senior Vice President and Chief Financial Officer, on April 29, 2021 - The report was signed by **David I. Goldberg, Senior Vice President and Chief Financial Officer**[240](index=240&type=chunk) - The signing date of the report was **April 29, 2021**[243](index=243&type=chunk)