Beazer Homes (BZH) closed the most recent trading day at $31.82, moving +0.03% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.36%.Prior to today's trading, shares of the homebuilder had lost 6.8% over the past month. This has lagged the Construction sector's loss of 1.36% and the S&P 500's gain of 3.05% in that time.The investment community will be c ...

ATLANTA--(BUSINESS WIRE)--Beazer Homes (NYSE: BZH) (www.beazer.com) has scheduled the release of its financial results for the quarter ended December 31, 2023 on Thursday, February 1, 2024 after the close of the market. Management will host a conference call on the same day at 5:00 PM ET to discuss the results. The public may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call wil ...

In the latest trading session, Beazer Homes (BZH) closed at $31.34, marking a -0.89% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.56%.The the stock of homebuilder has risen by 10.75% in the past month, leading the Construction sector's gain of 6.64% and the S&P 500's gain of 2.56%.Analysts and investors alike will be keeping a close eye on the performance of Beazer Homes in its upcomin ...

Company Participants Conference Call Participants In a rising rate environment, builder financing incentives typically increase, at least initially, and our experience confirms this. As the 30-year mortgage rate moved from about 7% at the end of June to just over 8% in October. Our contribution towards closing costs increased about 1 point on new sales. While the year ahead undoubtedly holds both opportunities and challenges, we continue to expect growth on many fronts. Our larger community count provides t ...

Beazer Homes USA, Inc. Q4 2023 Earnings Presentation Forward Looking Statements O BEARER ... • the cyclical nature of the homebuilding industry and deterioration in homebuilding industry conditions; • other economic changes nationally and in local markets, including declines in employment levels, increases in the number of foreclosures and wage levels, each of which are outside our control and may impact consumer confidence and affect the affordability of, and demand for, the homes we sell; • elevated mortg ...

We historically have experienced, and expect to continue to experience, variability in home sales and earnings on a quarterly basis. As a result of such variability, our historical performance may not be a meaningful indicator of future results. Our quarterly results of operations may continue to fluctuate in the future as a result of a variety of both national and local factors, including, among others: • the timing of home closings and land sales; • our ability to continue to acquire additional land or se ...

Consistently High Returns Profitable Growth From More Communities 30 80% © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 24 (a) Segment gross margin excludes impairments, abandonments, and interest amortized to cost of sales. Details are included on the "Homebuilding Gross Margin Reconciliation" slide in the appendix | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------|-------|----------------------------|------- ...

Company Participants Conference Call Participants Jay McCanless - Wedbush Operator Thank you. Good afternoon. And welcome to the Beazer Homes conference call discussing our results for the third quarter of fiscal 2023. Joining me is Allan Merrill, our Chairman and Chief Executive Officer. Today, Allan will discuss highlights from our third quarter, the current environment for new home sales and an update on our strategy and the goals we have for the future. IÂ'll provide details on the third quarter, expect ...

Cancellation Rate and Community Performance - Cancellation rate for the quarter ended June 30, 2023 was 16.1%, down from 17.0% in the prior year quarter and 18.6% in the prior fiscal quarter[157] - Average active community count for the quarter ended June 30, 2023 was 124, up 1.1% from 123 in the prior year quarter, ending the quarter with 125 active communities[158] - Sales per community per month for the quarter ended June 30, 2023 was 3.2, compared to 2.5 in the prior year quarter, with net new orders of 1,200, up 29.7% from 925 in the prior year quarter[176] Homebuilding Gross Margin and Profit - Homebuilding gross margin for the quarter ended June 30, 2023 was 20.2%, down from 25.1% in the prior year quarter, while excluding impairments, abandonments, and interest, it was 23.4%, down from 28.1%[177] - Homebuilding gross margin decreased to 20.2% for the three months ended June 30, 2023, down from 25.1% in the prior year period[180] - Homebuilding gross margin excluding impairments and abandonments decreased to 20.3% in Q2 2023 from 25.1% in Q2 2022[191] - Homebuilding gross profit decreased by $16.1 million to $115.5 million for Q2 2023, with gross margin declining by 490 basis points to 20.2%[221] - Homebuilding gross profit decreased by $42.1 million to $302.2 million for the nine months ended June 30, 2023, compared to $344.3 million in the prior year period, with a gross margin decrease of 390 basis points to 19.4%[251] - Total homebuilding gross profit was $344.3 million with a gross margin of 23.3%, and excluding impairments and abandonments, gross profit was $344.8 million with a gross margin of 26.5%[248] Revenue and Orders - Total revenue for the three months ended June 30, 2023 increased to $572.544 million, up 8.7% compared to $526.666 million in the same period of 2022[180] - Total homebuilding revenue for the quarter ended June 30, 2023 increased by 9.0% to $570.5 million compared to $523.2 million in the prior year quarter[189] - Net new orders for the nine months ended June 30, 2023 decreased by 14.7% to 2,863 units compared to 3,357 units in the same period of 2022[182] - Net new orders for Q2 2023 increased by 29.7% to 1,200 units, driven by a 28.3% increase in sales pace to 3.2 sales per community per month[211] Backlog and ASP - The aggregate dollar value of homes in backlog as of June 30, 2023 decreased 36.4% compared to June 30, 2022 due to a 35.4% decrease in backlog units and a 1.6% decrease in ASP[183] - Total backlog units decreased by 35.4% to 1,941 units as of June 30, 2023 compared to 3,003 units in the prior year period[212] - Average selling price (ASP) for homes closed increased by 1.8% to $510.8 thousand in Q2 2023 compared to $501.7 thousand in Q2 2022[200] Segment Performance - Southeast segment homebuilding revenue increased 27.5% for the three months ended June 30, 2023 compared to the prior year quarter, driven by a 39.4% increase in closings[186] - West segment homebuilding revenue increased 5.3% for the nine months ended June 30, 2023 compared to the prior year period, driven by a 14.7% increase in ASP[187] - The Southeast region saw the highest revenue growth at 27.5%, reaching $110.8 million in Q2 2023 compared to $86.9 million in Q2 2022[189] - East Segment homebuilding revenue increased by 18.4% for Q2 2023 compared to Q2 2022, driven by a 19.3% increase in closings, partially offset by a 0.8% decrease in ASP[215] - East Segment homebuilding revenue decreased by 4.6% for the nine months ended June 30, 2023, due to a 9.2% decrease in closings, partially offset by a 5.1% increase in ASP[216] - Southeast Segment homebuilding gross profit increased by $3.6 million in Q2 2023, driven by a 39.4% increase in closings, despite a decrease in gross margin to 23.5%[222] - East Segment homebuilding gross profit decreased by $20.2 million for the nine months ended June 30, 2023, with gross margin declining to 20.3% from 25.0%[224] - Southeast Segment homebuilding gross profit increased by $8.6 million due to a 19.5% increase in closings, but gross margin excluding impairments and abandonments decreased to 22.4% from 23.6%[252] - East Segment homebuilding gross profit decreased by $3.6 million compared to the prior year quarter, with gross margin excluding impairments and abandonments decreasing to 19.6% from 26.4%[250] Operating Income and Expenses - Operating income for the West segment for the nine months ended June 30, 2023 was $138.5 million, compared to $165.9 million in the prior year period[171] - Operating income as a percentage of total revenue decreased to 8.4% for the three months ended June 30, 2023, down from 12.8% in the prior year period[180] - Operating income decreased by $19.3 million to $47.9 million for Q2 2023, primarily due to lower gross profit and higher commissions and marketing costs[231] - West Segment operating income decreased by $27.4 million for the nine months ended June 30, 2023, driven by lower gross profit and higher expenses[234] - Southeast Segment operating income increased by $6.4 million for the nine months ended June 30, 2023, primarily due to higher gross profit[236] - Operating income decreased by $47.6 million to $115.2 million for the nine months ended June 30, 2023, primarily due to the decrease in gross profit[260] - West Segment operating income decreased by $9.5 million compared to the prior year quarter, primarily due to lower gross profit and higher commissions and marketing costs[261] - Southeast Segment operating income increased by $2.5 million compared to the prior year quarter, primarily due to higher gross profit[262] Financial Position and Cash Flow - Total assets as of June 30, 2023 were $2.32 billion, compared to $2.25 billion as of September 30, 2022[174] - Total depreciation and amortization for the nine months ended June 30, 2023 was $8.44 million, compared to $9.10 million in the prior year period[173] - Deferred compensation plan assets as of June 30, 2023 were $6.64 million, compared to $3.18 million as of September 30, 2022[161] - Net cash provided by operating activities was $95.8 million for Q2 2023, compared to a net cash used of $164.5 million in Q2 2022[241] - Net cash used in operating activities was $164.5 million for the nine months ended June 30, 2022, driven by a $351.4 million increase in inventory[266] - The company has an Unsecured Facility with a remaining capacity of $265.0 million as of June 30, 2023, with no borrowings or letters of credit outstanding[270] - Non-refundable deposits and other amounts related to property options totaled approximately $144.7 million as of June 30, 2023[276] - The total remaining purchase price under all options, net of cash deposits, was $747.9 million as of June 30, 2023[276] - Outstanding letters of credit and surety bonds amounted to $32.1 million and $283.6 million, respectively, as of June 30, 2023[278] - Variable rate debt outstanding totaled approximately $73.8 million as of June 30, 2023[283] - A 1% increase in interest rates would increase interest expense by approximately $1.0 million over the next 12 months[283] - The estimated fair value of fixed-rate debt was $887.2 million, compared to a carrying amount of $907.3 million as of June 30, 2023[283] - A hypothetical 1% decrease in discount rates would increase the estimated fair value of fixed-rate debt to $920.9 million as of June 30, 2023[283] - The company plans to expand the use of option agreements to supplement owned inventory supply, subject to market conditions and liquidity[276] - The company expects operating cash flows to be adequate to fund future option exercises without materially affecting liquidity[277] Taxes and Compensation - Income tax expense for the three and nine months ended June 30, 2023 was $6.2 million and $15.5 million, compared to $13.2 million and $29.7 million for the same periods in 2022[162] - Total unrecognized compensation costs related to unvested restricted stock awards as of June 30, 2023 was $8.4 million, expected to be recognized over a weighted average period of 1.79 years[166] - The effective tax rate decreased to 12.5% for the three months ended June 30, 2023, down from 19.5% in the prior year period[180] - Income tax expense for the nine months ended June 30, 2023, was $15.5 million, compared to $29.7 million in the prior year period[265] SG&A and Other Expenses - Total SG&A expenses as a percentage of revenue decreased to 11.5% for the three months ended June 30, 2023, down from 11.8% in the prior year period[180] - SG&A as a percentage of total revenue improved to 11.5% in Q2 2023 from 11.8% in Q2 2022, primarily due to higher revenues[201] - Land sales and other revenue decreased by $1.4 million to $2.0 million for Q2 2023, while gross profit increased by $0.3 million to $1.3 million[230] Adjusted EBITDA and Capital Expenditures - Adjusted EBITDA for the nine months ended June 30, 2023 decreased to $182.062 million, down 19.7% from $226.735 million in the same period of 2022[181] - Capital expenditures increased by 26.2% to $14.1 million for the nine months ended June 30, 2023 compared to $11.2 million in the prior year period[197] Market Outlook and Accounting Policies - The company remains positive on the long-term housing market outlook, citing demographic shifts and a multi-million unit housing deficit[199] - No significant changes to critical accounting policies were reported during the nine months ended June 30, 2023[279]

© Beazer Homes – Confidential and Proprietary – Distribution Prohibited 1 Allan P. Merrill © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 3 Shareholders' equity exceeds outstanding debt for the first time since 2005 Book value in excess of $32 per share | --- | --- | |-----------------------|------------------------------------------| | | Sustained | | | Excellence | | 8th Consecutive Year! | AWARD WINNER | | | | | | ENERGY STAR AWARD 2023 | | | PARTNER OF THE YEAR Sustained Excelle ...