Beazer Homes USA(US:BZH)2024-11-13 21:17Financial Performance - Net income for fiscal 2024 was $140.2 million, or $4.53 per diluted share, down from $158.7 million, or $5.16 per diluted share in fiscal 2023[3]. - Adjusted EBITDA for fiscal 2024 was $243.4 million, a decrease of 10.5% year-over-year[3]. - Income from continuing operations decreased to $52.1 million, down 6.6% from $55.8 million[18]. - Basic income per share from continuing operations was $1.72, a decrease of 6.0% from $1.83[18]. - The company reported net income of $52,066,000 for the three months ended September 30, 2024, down from $55,756,000 in the same period of 2023, a decrease of 5%[24]. - Net income for the fiscal year ended September 30, 2024, was $140,175, down from $158,611 in 2023[32]. - Adjusted EBITDA for the fiscal year ended September 30, 2024, was $243,418, compared to $272,031 in 2023[32]. Revenue and Sales - Homebuilding revenue reached $2.29 billion, up 4.3% due to a 4.8% increase in home closings to 4,450, despite a 0.5% decrease in average selling price (ASP) to $515.3 thousand[3]. - Homebuilding revenue grew to $783.8 million, a 22.1% increase from $641.8 million[18]. - Total revenue for the three months ended September 30, 2024, was $806,157,000, a 25% increase from $645,405,000 in the same period of 2023[24]. Orders and Backlog - Net new orders for fiscal 2024 were 4,221, up 9.2% from 3,866 in the previous year, with a cancellation rate of 21.9%[5][17]. - New home orders increased to 1,029 for the three months ended September 30, 2023, up 2.6% from 1,003[18]. - Cancellation rates rose to 21.9%, an increase of 540 basis points from 16.5%[18]. - Backlog units declined to 1,482, a decrease of 13.4% from 1,711[18]. - Dollar value of backlog decreased to $797.2 million, down 10.1% from $886.4 million[18]. - New orders, net of cancellations, totaled 1,029 for the three months ended September 30, 2024, compared to 1,003 in the same period of 2023, a 3% increase[27]. - The backlog units at the end of the period were 1,482, down from 1,711 in the previous year, reflecting a 13% decrease[28]. - The aggregate dollar value of the backlog was $797.2 million as of September 30, 2024, compared to $886.4 million a year earlier, a decrease of 10%[28]. Community and Closings - Active community count increased by 20.9% year-over-year to 162, contributing to a 30% growth in October sales compared to the prior year[3][4]. - Total home closings reached 1,496, representing a 21.3% increase from 1,233[18]. - Average active community count increased to 153, an 18.0% rise from 130[18]. Financial Position and Debt - Total debt to total capitalization ratio improved to 45.4% from 47.0% a year ago, while net debt to net capitalization ratio increased to 40.0% from 36.4%[12][17]. - Unrestricted cash at quarter end was $203.9 million, with total liquidity of $503.9 million, down from $610.6 million a year ago[11]. - The company aims to reduce its net debt to net capitalization ratio below 30% by the end of fiscal year 2026[12]. - The total debt as of September 30, 2024, was $1,025,349,000, compared to $978,028,000 in the previous year, indicating a 5% increase[25]. - Total debt increased to $1,025,349 for the fiscal year ended September 30, 2024, from $978,028 in 2023[34]. - The total debt to total capitalization ratio improved to 45.4% in 2024 from 47.0% in 2023[34]. - Net debt to net capitalization ratio increased to 40.0% in 2024 from 36.4% in 2023[34]. Land Acquisition and Development - Land acquisition and development spending was $776.5 million, an increase of 35.5% from $573.1 million[3][17]. - Land acquisition and development spending was $179.0 million, a decrease of 16.2% from $213.7 million[18]. Gross Profit and Margins - Homebuilding gross margin for the fourth quarter was 17.2%, down 400 basis points year-over-year, while excluding impairments, it was 20.4%, down 390 basis points[4][8]. - Homebuilding gross profit for the three months ended September 30, 2024, was $134,911, with a margin of 17.2%, compared to $135,925 and 21.2% for the same period in 2023[31]. - Homebuilding gross profit excluding inventory impairments and interest amortized to cost of sales was $159,837, representing a margin of 20.4% for the three months ended September 30, 2024[31]. Inventory and Expenses - Capitalized interest in inventory at the end of the period was $124,182,000, up from $112,580,000 in the previous year, representing a 10% increase[26]. - Inventory impairments and abandonments amounted to $1,796 for the three months ended September 30, 2024, compared to $25 in the same period of 2023[32]. - Interest amortized to home construction and land sales expenses was $23,705 for the three months ended September 30, 2024, compared to $19,919 in 2023[32]. - The company reported a decrease in expense from income taxes to $18,910 for the fiscal year ended September 30, 2024, down from $23,936 in 2023[32].