[Press Release Summary](index=1&type=section&id=Press%20Release%20Summary) Overview of Q3 FY2024 performance, featuring CEO commentary and key financial highlights [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO highlighted healthy results, strategic progress in lot control and Zero Energy Ready homes, and an optimistic outlook despite market challenges - Despite challenges, the company generated **$53.5 million** in Adjusted EBITDA and **$0.88** EPS, and repurchased approximately **450,000** shares[1](index=1&type=chunk) - Strategic progress includes a significant increase in the controlled lot position, primarily through options, enhancing visibility for community count growth[1](index=1&type=chunk) - Over **90%** of quarterly starts met the Zero Energy Ready standard, with the company becoming the largest certifier of such homes under the DOE's national program[1](index=1&type=chunk) [Third Quarter Fiscal 2024 Highlights](index=1&type=section&id=Beazer%20Homes%20Fiscal%20Third%20Quarter%202024%20Highlights%20and%20Comparison%20to%20Fiscal%20Third%20Quarter%202023) Third-quarter fiscal 2024 saw homebuilding revenue increase by **3.3%** to **$589.6 million**, despite declines in net income and Adjusted EBITDA due to a **290 basis point** drop in gross margin Q3 FY2024 Key Financial Metrics vs. Q3 FY2023 | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Income from Continuing Operations | $27.2 million | $43.8 million | -37.9% | | Diluted EPS | $0.88 | $1.42 | -38.0% | | Adjusted EBITDA | $53.5 million | $72.8 million | -26.5% | | Homebuilding Revenue | $589.6 million | $570.5 million | +3.3% | | Home Closings | 1,167 | 1,117 | +4.5% | | Average Selling Price (ASP) | $505.3 thousand | $510.8 thousand | -1.1% | | Homebuilding Gross Margin | 17.3% | 20.2% | -290 bps | | Net New Orders | 1,070 | 1,200 | -10.8% | | Backlog Dollar Value | $1.05 billion | $1.01 billion | +3.6% | - The company repurchased **$12.9 million** of its common stock and increased land acquisition and development spending by **52.7%** to **$201.1 million**[1](index=1&type=chunk) [Detailed Financial and Operational Performance (Q3 FY2024)](index=1&type=section&id=Detailed%20Financial%20and%20Operational%20Performance) Detailed Q3 FY2024 financial and operational performance, covering profitability, orders, revenue, and capital management [Profitability](index=1&type=section&id=Profitability) Third-quarter profitability declined year-over-year, with net income from continuing operations at **$27.2 million**, or **$0.88** per diluted share, primarily due to a lower operating margin Q3 FY2024 Profitability vs. Q3 FY2023 | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net Income from Continuing Operations | $27.2 million | $43.8 million | -37.9% | | Diluted EPS | $0.88 | $1.42 | -38.0% | | Adjusted EBITDA | $53.5 million | $72.8 million | -26.5% | [Orders and Backlog](index=1&type=section&id=Orders%20and%20Backlog) Net new orders for Q3 decreased by **10.8%** to **1,070**, as a **17.2%** increase in average community count was offset by a **23.9%** decrease in sales pace - Net new orders fell to **1,070** from **1,200** in the prior year, with the sales pace dropping to **2.4** from **3.2** orders per community per month[2](index=2&type=chunk) - The cancellation rate increased to **18.6%** from **16.1%** in Q3 2023[2](index=2&type=chunk) - Backlog dollar value stood at **$1.05 billion** (**1,949** homes) with an ASP of **$536.9 thousand**, up from **$1.01 billion** (**1,941** homes) with an ASP of **$520.3 thousand** a year ago[2](index=2&type=chunk)[18](index=18&type=chunk) [Homebuilding Revenue and Gross Margin](index=2&type=section&id=Homebuilding%20Revenue%20and%20Gross%20Margin) Homebuilding revenue increased **3.3%** to **$589.6 million**, driven by a **4.5%** rise in home closings, though gross margin declined by **310 basis points** to **20.3%** - Homebuilding revenue rose to **$589.6 million**, driven by **1,167** home closings, up **4.5%** year-over-year[3](index=3&type=chunk) - Homebuilding gross margin, excluding impairments, abandonments, and amortized interest, decreased to **20.3%** from **23.4%** year-over-year[3](index=3&type=chunk) - The margin decline was caused by a higher share of speculative home closings, changes in product/community mix, and an increase in closing cost incentives[3](index=3&type=chunk) [SG&A Expenses](index=2&type=section&id=SG%26A%20Expenses) Selling, general, and administrative (SG&A) expenses as a percentage of total revenue increased by **40 basis points** year-over-year to **11.9%**, primarily due to higher commissions and marketing costs - SG&A as a percentage of total revenue was **11.9%**, up **40 basis points** from the prior year[4](index=4&type=chunk) - The increase was driven by higher commissions and sales and marketing costs for new community activations[4](index=4&type=chunk) [Land Position and Investment](index=2&type=section&id=Land%20Position%20and%20Investment) The company significantly increased its investment in future growth, with land acquisition and development spending rising **52.7%** year-over-year to **$201.1 million** - Land acquisition and development spending was **$201.1 million**, a **52.7%** increase year-over-year[4](index=4&type=chunk) - Total controlled lots grew **24.9%** to **28,365**, with **55.5%** controlled via option agreements, up from **52.2%** a year ago[4](index=4&type=chunk) [Capital Management and Liquidity](index=2&type=section&id=Capital%20Management%20and%20Liquidity) During the quarter, the company repurchased **$12.9 million** of its common stock, with total available liquidity at quarter-end standing at **$328.2 million** - Repurchased **$12.9 million** of common stock at an average price of **$28.41** per share[4](index=4&type=chunk) - Total liquidity at quarter-end was **$328.2 million**, consisting of **$73.2 million** in unrestricted cash and **$255.0 million** in credit facility capacity[5](index=5&type=chunk) Debt Ratios | Ratio | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Total debt to total capitalization | 47.6% | 48.4% | | Net debt to net capitalization | 45.8% | 40.3% | [Corporate Developments](index=2&type=section&id=Corporate%20Developments) Recent corporate developments, including management and board changes, and ongoing ESG commitments [Management and Board Changes](index=2&type=section&id=Management%20and%20Board%20Changes) The company announced key leadership changes, promoting Michael Dunn to Senior Vice President, General Counsel, and Corporate Secretary, and appointing John J. Kelley III to the Board of Directors - Michael Dunn was appointed SVP, General Counsel, and Corporate Secretary, succeeding Keith L. Belknap, who is retiring[5](index=5&type=chunk)[6](index=6&type=chunk) - John J. Kelley III, Chief Legal Officer of Equifax Inc., was appointed to the Board of Directors[7](index=7&type=chunk)[8](index=8&type=chunk) [Commitment to ESG Initiatives](index=3&type=section&id=Commitment%20to%20ESG%20Initiatives) Beazer Homes reaffirmed its commitment to ESG, highlighting its industry-first pledge to make every new home start Zero Energy Ready by the end of 2025 - The company is on track for its goal that by the end of **2025**, every new home started will be Zero Energy Ready, with **93%** of new home starts in Q3 meeting this standard[9](index=9&type=chunk) - Beazer Homes has certified more homes to the DOE's Single Family National Program requirements than any other home builder[9](index=9&type=chunk) - Key achievements from the **2023** Sustainability Report include being an **8-time** EPA ENERGY STAR Partner of the Year, achieving **100%** Indoor airPLUS qualification, completing its first GHG inventory, and receiving a **95%** customer recommendation rating[10](index=10&type=chunk) [Financial Statements and Supplemental Data](index=4&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) Detailed financial statements and supplemental data, including summary tables, balance sheets, regional data, and non-GAAP adjustments [Summary Financial Data Tables (Q3 & 9M FY2024)](index=4&type=section&id=Summary%20Financial%20Data%20Tables%20%28Q3%20%26%209M%20FY2024%29) This section provides detailed comparative financial and operational data for the three and nine months ended June 30, 2024, versus the same periods in 2023 Q3 FY2024 vs Q3 FY2023 Summary | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | New home orders, net | 1,070 | 1,200 | -10.8% | | Total home closings | 1,167 | 1,117 | +4.5% | | Homebuilding revenue | $589.6 million | $570.5 million | +3.3% | | Homebuilding gross margin | 17.3% | 20.2% | -290 bps | | Diluted EPS from cont. ops | $0.88 | $1.42 | -38.0% | | Adjusted EBITDA | $53.5 million | $72.8 million | -26.5% | Nine Months FY2024 vs FY2023 Summary | Metric | 9M 2024 | 9M 2023 | Change | | :--- | :--- | :--- | :--- | | New home orders, net | 3,192 | 2,863 | +11.5% | | Total home closings | 2,954 | 3,013 | -2.0% | | Homebuilding revenue | $1,509.2 million | $1,556.6 million | -3.0% | | Homebuilding gross margin | 18.5% | 19.4% | -90 bps | | Diluted EPS from cont. ops | $2.84 | $3.36 | -15.5% | | Adjusted EBITDA | $150.3 million | $182.1 million | -17.5% | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations shows a total revenue of **$595.7 million** for Q3 2024, a slight increase from **$572.5 million** in Q3 2023, though net income decreased to **$27.2 million** Statement of Operations Highlights (in thousands) | Account | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $595,682 | $572,544 | $1,524,040 | $1,561,380 | | Gross profit | $103,304 | $116,744 | $282,887 | $305,408 | | Operating income | $28,524 | $47,900 | $84,780 | $115,194 | | Net income | $27,210 | $43,817 | $88,109 | $102,855 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, the company's balance sheet shows total assets of **$2.59 billion**, an increase from **$2.41 billion** at September 30, 2023, driven by a significant increase in owned inventory Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $73,212 | $345,590 | | Owned inventory | $2,171,924 | $1,756,203 | | Total assets | $2,594,546 | $2,411,033 | | Total debt | $1,069,408 | $978,028 | | Total liabilities | $1,416,231 | $1,308,214 | | Total stockholders' equity | $1,178,315 | $1,102,819 | [Selected Operating and Financial Data by Region](index=10&type=section&id=Selected%20Operating%20and%20Financial%20Data%20by%20Region) Regional data for Q3 2024 shows the West region as the primary driver of performance, with the highest number of net new orders and closings, while the Southeast saw declines Q3 2024 Net New Orders by Region | Region | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | West | 715 | 705 | | East | 250 | 251 | | Southeast | 105 | 244 | | **Total** | **1,070** | **1,200** | Q3 2024 Closings by Region | Region | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | West | 728 | 634 | | East | 240 | 253 | | Southeast | 199 | 230 | | **Total** | **1,167** | **1,117** | Backlog Units by Region (as of June 30) | Region | 2024 | 2023 | | :--- | :--- | :--- | | West | 1,292 | 1,066 | | East | 417 | 433 | | Southeast | 240 | 442 | | **Total** | **1,949** | **1,941** | [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of non-GAAP financial measures to their most comparable GAAP counterparts, including adjustments for homebuilding gross margin, EBIT, EBITDA, Adjusted EBITDA, and net debt to net capitalization Reconciliation of Homebuilding Gross Margin (Q3) (in thousands) | (in thousands) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Homebuilding gross profit (GAAP) | $101,983 (17.3%) | $115,493 (20.2%) | | Homebuilding gross profit excluding I&A and interest (Non-GAAP) | $119,450 (20.3%) | $133,312 (23.4%) | Reconciliation of Net Income to Adjusted EBITDA (Q3) (in thousands) | (in thousands) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $27,210 | $43,817 | | Adjusted EBITDA (Non-GAAP) | $53,496 | $72,791 | Reconciliation of Debt to Capitalization Ratio | (as of June 30) | 2024 | 2023 | | :--- | :--- | :--- | | Total debt to total capitalization ratio (GAAP) | 47.6% | 48.4% | | Net debt to net capitalization ratio (Non-GAAP) | 45.8% | 40.3% |

vary from 5.99% to 34.99% APR for terms ranging from 3 to 48 months, depending on a consumer's creditworthiness. The fintech firm has been on the upswing, more than quadrupling in value so far this year. The stock has a market cap of roughly $500 million and a P/E ratio approaching 40. Sezzle is growing at a robust pace, and the Q1 2024 earnings report highlights the company's acceleration. Large-cap stocks regularly capture headlines. These corporations have delivered exceptional returns for many years and ...

Beazer Homes (BZH) shares soared 5.1% in the last trading session to close at $30.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.7% gain over the past four weeks. Beazer Homes has been benefiting from healthy demand characterized by sustained low levels of resale inventory and favorable demographic trends. Also, BZH's three strategic pillars and long-term strategic business objectives bode well. This homebuilder is expecte ...

Kirpal Kooner Nearly two years ago, in July of 2022, I wrote an article discussing the investment worthiness of homebuilder Beazer Homes USA (NYSE:BZH). At that time, I acknowledged that investors were right to be wary of the housing market. Rising interest rates and high inflation do not bode well for housing demand. But even in spite of that, shares of the company looked attractively priced, so much so that I could not help but to rate the company a 'buy'. This was in spite of the fact that the firm was a ...

Beazer Homes USA, Inc. (NYSE:BZH), the homebuilder based in the United States, has reported three quarters worth of financials after my previous article on the stock. The performance has mainly continued to perform in line with my prior expectations. In the previous article, titled "Beazer Homes: Better Resilience Than I Expected", I upgraded my rating on Beazer Homes into Buy as the company demonstrated better earnings resilience than I previously anticipated, making the valuation attractive. Since the art ...

Lake City, Colo., June 13, 2024 (GLOBE NEWSWIRE) -- The VISION House® Las Vegas project will provide a behind-the-scenes look at how Beazer Homes is meeting its industry-leading commitment to deliver 100% U.S. DOE Zero Energy Ready Homes by the end of 2025. The project will be built in the 61-unit Aria Crossing Neighborhood at Cadence in Las Vegas and will be open for tours during Design & Construction Week in February 2025. The project will feature one baseline model, one upgrade model, and one "deconstruc ...

Beazer Homes USA, Inc. (NYSE:BZH) Q2 2024 Earnings Conference Call May 1, 2024 5:00 PM ET Company Participants David Goldberg – Senior Vice President and Chief Financial Officer Allan Merrill – President and Chief Executive Officer Conference Call Participants Julio Romero – Sidoti & Company Alex Rygiel – B. Riley Alan Ratner – Zelman & Associates Alex Barron – Housing Research Center Jay McCanless – Wedbush Operator Good afternoon and welcome to the Beazer Homes Earnings Conference Call for the Second Quar ...

For the quarter ended March 2024, Beazer Homes (BZH) reported revenue of $541.54 million, down 0.4% over the same period last year. EPS came in at $1.26, compared to $1.13 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $572.07 million, representing a surprise of -5.34%. The company delivered an EPS surprise of +38.46%, with the consensus EPS estimate being $0.91.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Beazer Homes (BZH) came out with quarterly earnings of $1.26 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 38.46%. A quarter ago, it was expected that this homebuilder would post earnings of $0.71 per share when it actually produced earnings of $0.70, delivering a surprise of -1.41%.Over the last four quarters, the company ...

Q2 2024 Performance - New home orders increased by 10% to 1,299 units[24] - The average selling price increased by 1.2% to $515,900[24] - Homebuilding gross margin was 21.7%, a decrease of 30 basis points[24] - Adjusted EBITDA was $58.8 million, a decrease of 5.4%[24] - Net income from continuing operations increased by 12.9% to $39.2 million[24] Fiscal Year 2024 Expectations - The company anticipates community count to increase by approximately 15%[41] - The company expects to close over 4,750 homes[41] - The average sales price is expected to be around $510,000[41] - The company anticipates adjusted EBITDA to be greater than $260 million[41] Balance Sheet and Debt - As of March 31, 2024, the valuation allowance on state attributes was $30.4 million[9] - Net debt to net capitalization ratio was 43.4%[44]