Beazer Homes USA(US:BZH)2025-01-30 21:27Financial Performance - The total revenue for the quarter was $468.953 million, up from $386.818 million in the prior year, representing a growth of 21.2%[111]. - Net income for Q4 2024 was $3,130, a decrease of 85.6% from $21,728 in Q4 2023[113]. - Adjusted EBITDA for Q4 2024 was $23,044, down 39.4% from $38,018 in Q4 2023[113]. - Homebuilding revenue for Q4 2024 was $460,422, an increase of 20.9% from $380,919 in Q4 2023[122]. - Operating income decreased by $18.1 million to $2.1 million for the three months ended December 31, 2024, compared to $20.3 million in the prior year quarter[138]. Homebuilding Metrics - For the quarter ended December 31, 2024, the average active community count increased by 17.8% to 161 from 137 in the prior year quarter[107]. - Net new orders increased by 13.2% to 932 from 823 in the prior year quarter, despite a slight decline in sales pace to 1.9 orders per community per month[107]. - The backlog units decreased by 15.9% to 1,507 as of December 31, 2024, compared to 1,791 in 2023[121]. - The Average Selling Price (ASP) for homes closed was $507.6 thousand, down 1.0% from $512.7 thousand in the prior year quarter[107]. - Average Selling Price (ASP) in backlog increased by 4.0% to $541.5 thousand in 2024 from $520.8 thousand in 2023[121]. Cost and Margin Analysis - Homebuilding gross margin decreased to 15.2% from 19.9% in the prior year quarter, while gross margin excluding impairments was 18.2%, down from 22.9%[110]. - Homebuilding gross profit decreased by $6.0 million to $70.0 million for the three months ended December 31, 2024, compared to $75.9 million in the prior year quarter, with a gross margin decrease of 470 basis points to 15.2%[130]. - SG&A expenses as a percentage of total revenue improved to 14.0% from 14.3% in the prior year quarter, indicating better overhead cost management[110]. - SG&A expense increased by 19.3% compared to the prior year quarter, while SG&A as a percentage of total revenue improved by 30 basis points to 14.0%[138]. Investment and Development - The company invested $211.3 million in land acquisition and development, a 6.3% increase compared to $198.7 million in the same quarter last year[107]. - The company controlled 28,874 lots as of December 31, 2024, a 9.5% increase from 26,374 lots in the prior year[107]. - The company aims to reach more than 200 active communities by the end of fiscal 2026 and achieve 100% Zero Energy Ready home starts by the end of calendar year 2025[106]. Debt and Liquidity - Total debt increased to $1,071,290 as of December 31, 2024, up 9.9% from $974,644 in 2023[115]. - As of December 31, 2024, the liquidity position included $80.4 million in cash and cash equivalents and $255.0 million of remaining capacity under the Unsecured Facility[153]. - The company had $45.0 million in borrowings under the Unsecured Facility as of December 31, 2024, with a remaining borrowing capacity of $255.0 million[156]. - A one percent increase in interest rates on variable rate debt of approximately $76.9 million would increase interest expense by about $1.0 million over the next twelve months[171]. Segment Performance - The West segment saw a 24.5% increase in homebuilding revenue, driven by a 28.0% increase in closings[123]. - The East segment experienced a 51.3% increase in homebuilding revenue, attributed to a 47.8% increase in closings[124]. - The Southeast segment's homebuilding revenue decreased by 19.7%, primarily due to an 18.3% decrease in closings[125]. - The West segment's homebuilding gross profit increased by $2.5 million, while gross margin decreased to 18.3%, down from 21.7% in the prior year quarter[131]. - The East segment's homebuilding gross profit increased by $3.7 million, with gross margin decreasing to 15.1%, down from 17.7% in the prior year quarter[132]. - The Southeast segment's homebuilding gross profit decreased by $7.1 million, with gross margin decreasing to 16.1%, down from 22.4% in the prior year quarter[133]. Cash Flow - Net cash used in operating activities was $159.4 million for the three months ended December 31, 2024, primarily driven by an increase in inventory of $122.3 million[148]. - Net cash used in operating activities was $225.6 million for the three months ended December 31, 2023, primarily driven by an increase in inventory of $196.3 million[149]. - Net cash used in investing activities was $12.8 million for the three months ended December 31, 2023, mainly due to capital expenditures for model homes and information systems infrastructure[150]. - Net cash provided by financing activities was $41.9 million for the three months ended December 31, 2024, primarily from net borrowings[151]. Other Financial Information - Corporate and unallocated net expenses increased by $11.0 million from the prior year quarter, primarily due to higher G&A expenses and higher amortization of capitalized interest[142]. - Land sales and other revenue increased by $2.6 million to $8.5 million, with land sales and other gross profit increasing by $0.3 million to $2.1 million compared to the prior year quarter[135]. - Outstanding letters of credit and surety bonds totaled $37.1 million and $320.6 million, respectively, as of December 31, 2024[169]. - No share repurchases were made during the three months ended December 31, 2024, with $28.9 million remaining in the share repurchase program[162].