Beazer Homes Reports Second Quarter Fiscal 2020 Results
“We generated strong second quarter results, highlighted by growth in revenue, margin and profitability, said
Beazer Homes Fiscal Second Quarter 2020 Highlights and Comparison to Fiscal Second Quarter 2019
-
Net income from continuing operations of
$10.6 million , compared to net loss from continuing operations of$100.8 million in fiscal second quarter 2019, which included an impairment charge of$147.6 million pre-tax -
Adjusted EBITDA of
$43.9 million , up 34.7% -
Homebuilding revenue of
$488.0 million , up 15.9% on a 12.6% increase in home closings to 1,277 and a 2.9% increase in average selling price to$382.1 thousand - Homebuilding gross margin was 16.1%. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 20.8%, up 100 basis points
- SG&A as a percentage of total revenue was 12.0%, down 70 basis points year-over-year
- Unit orders of 1,661, up 3.9% on an increase in average community count to 167 and a slight increase in orders/community/month to 3.3
-
Dollar value of backlog of
$895.0 million , up 14.3%
The following provides additional details on the Company's performance during the fiscal second quarter 2020:
Profitability. Second quarter net income from continuing operations was
Orders. Net new orders for the second quarter increased 3.9% year-over-year, to 1,661. The increase in net new orders was primarily driven by a 2.2% increase in average community count to 167. The cancellation rate for the quarter was 15.8%, up 130 basis points year-over-year.
Homebuilding Revenue. Second quarter closings rose 12.6% to 1,277 homes. Combined with a 2.9% increase in the average selling price to
Backlog. The dollar value of homes in backlog as of
Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 20.8% for the second quarter, up 100 basis points year-over-year.
SG&A Expenses. Selling, general and administrative expenses, as a percentage of total revenue, were 12.0% for the quarter, down 70 basis points year-over-year.
Liquidity Update. At the close of the second quarter, total liquidity was
As we stated in our
Summary results for the three and six months ended
|
Three Months Ended |
|||||||||||
|
2020 |
|
2019 |
|
Change* |
|||||||
New home orders, net of cancellations |
1,661 |
|
|
1,598 |
|
|
3.9 |
% |
||||
Orders per community per month |
3.3 |
|
|
3.3 |
|
|
1.7 |
% |
||||
Average active community count |
167 |
|
|
163 |
|
|
2.2 |
% |
||||
Actual community count at quarter-end |
166 |
|
|
166 |
|
|
— |
% |
||||
Cancellation rates |
15.8 |
% |
|
14.5 |
% |
|
130 bps |
|||||
|
|
|
|
|
|
|||||||
Total home closings |
1,277 |
|
|
1,134 |
|
|
12.6 |
% |
||||
Average selling price (ASP) from closings (in thousands) |
$ |
382.1 |
|
|
$ |
371.2 |
|
|
2.9 |
% |
||
Homebuilding revenue (in millions) |
$ |
488.0 |
|
|
$ |
420.9 |
|
|
15.9 |
% |
||
Homebuilding gross margin |
16.1 |
% |
|
(10.5 |
)% |
|
2660 bps |
|||||
Homebuilding gross margin, excluding impairments and abandonments (I&A) |
16.1 |
% |
|
15.4 |
% |
|
70 bps |
|||||
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
20.8 |
% |
|
19.8 |
% |
|
100 bps |
|||||
|
|
|
|
|
|
|||||||
Income (loss) from continuing operations before income taxes (in millions) |
$ |
14.8 |
|
|
$ |
(139.0 |
) |
|
$ |
153.8 |
|
|
Expense (benefit) from income taxes (in millions) |
$ |
4.2 |
|
|
$ |
(38.2 |
) |
|
$ |
42.3 |
|
|
Income (loss) from continuing operations (in millions) |
$ |
10.6 |
|
|
$ |
(100.8 |
) |
|
$ |
111.4 |
|
|
Basic income (loss) per share from continuing operations |
$ |
0.36 |
|
|
$ |
(3.28 |
) |
|
$ |
3.64 |
|
|
Diluted income (loss) per share from continuing operations |
$ |
0.35 |
|
|
$ |
(3.28 |
) |
|
$ |
3.63 |
|
|
|
|
|
|
|
|
|||||||
Income (loss) from continuing operations before income taxes (in millions) |
$ |
14.8 |
|
|
$ |
(139.0 |
) |
|
$ |
153.8 |
|
|
Gain on debt extinguishment (in millions) |
$ |
— |
|
|
$ |
0.2 |
|
|
$ |
0.2 |
|
|
Inventory impairments and abandonments (in millions) |
$ |
— |
|
|
$ |
(147.6 |
) |
|
$ |
(147.6 |
) |
|
Income from continuing operations excluding gain on debt extinguishment and inventory impairments and abandonments before income taxes (in millions) |
$ |
14.8 |
|
|
$ |
8.4 |
|
|
$ |
6.4 |
|
|
Income from continuing operations excluding gain on debt extinguishment and inventory impairments and abandonments after income taxes (in millions)+ |
$ |
10.6 |
|
|
$ |
6.2 |
|
|
$ |
4.4 |
|
|
|
|
|
|
|
|
|||||||
Net income (loss) |
$ |
10.6 |
|
|
$ |
(100.9 |
) |
|
$ |
111.5 |
|
|
|
|
|
|
|
|
|||||||
Land and land development spending (in millions) |
$ |
123.0 |
|
|
$ |
139.9 |
|
|
$ |
(16.9 |
) |
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA (in millions) |
$ |
43.9 |
|
|
$ |
32.6 |
|
|
$ |
11.3 |
|
|
LTM Adjusted EBITDA (in millions) |
$ |
194.0 |
|
|
$ |
196.2 |
|
|
$ |
(2.1 |
) |
* |
Change and totals are calculated using unrounded numbers. |
+ |
There were no debt extinguishment and inventory impairments and abandonments for the three months ended |
"LTM" indicates amounts for the trailing 12 months. |
|
Six Months Ended |
|||||||||||
|
2020 |
|
2019 |
|
Change* |
|||||||
New home orders, net of cancellations |
2,912 |
|
|
2,574 |
|
|
13.1 |
% |
||||
LTM orders per community per month |
2.9 |
|
|
2.8 |
|
|
3.6 |
% |
||||
Cancellation rates |
15.4 |
% |
|
16.6 |
% |
|
-120 bps |
|||||
|
|
|
|
|
|
|||||||
Total home closings |
2,389 |
|
|
2,217 |
|
|
7.8 |
% |
||||
ASP from closings (in thousands) |
$ |
379.0 |
|
|
$ |
370.7 |
|
|
2.2 |
% |
||
Homebuilding revenue (in millions) |
$ |
905.4 |
|
|
$ |
821.9 |
|
|
10.2 |
% |
||
Homebuilding gross margin |
15.7 |
% |
|
2.0 |
% |
|
1370 bps |
|||||
Homebuilding gross margin, excluding impairments and abandonments (I&A) |
15.7 |
% |
|
15.4 |
% |
|
30 bps |
|||||
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
20.3 |
% |
|
19.8 |
% |
|
50 bps |
|||||
|
|
|
|
|
|
|||||||
Income (loss) from continuing operations before income taxes (in millions) |
$ |
17.4 |
|
|
$ |
(135.6 |
) |
|
$ |
153.0 |
|
|
Expense (benefit) from income taxes (in millions) |
$ |
4.0 |
|
|
$ |
(42.1 |
) |
|
$ |
46.0 |
|
|
Income (loss) from continuing operations (in millions) |
$ |
13.4 |
|
|
$ |
(93.5 |
) |
|
$ |
106.9 |
|
|
Basic and diluted income (loss) per share from continuing operations |
$ |
0.45 |
|
|
$ |
(2.99 |
) |
|
$ |
3.44 |
|
|
|
|
|
|
|
|
|||||||
Income (loss) from continuing operations before income taxes (in millions) |
$ |
17.4 |
|
|
$ |
(135.6 |
) |
|
$ |
153.0 |
|
|
Gain on debt extinguishment (in millions) |
$ |
— |
|
|
$ |
0.2 |
|
|
$ |
(0.2 |
) |
|
Inventory impairments and abandonments (in millions) |
$ |
— |
|
|
$ |
(148.6 |
) |
|
$ |
(148.6 |
) |
|
Income from continuing operations excluding gain on debt extinguishment and inventory impairments and abandonments before income taxes (in millions) |
$ |
17.4 |
|
|
$ |
12.8 |
|
|
$ |
4.6 |
|
|
Income from continuing operations excluding gain on debt extinguishment and inventory impairments and abandonments (in millions)+ |
$ |
13.4 |
|
|
$ |
14.1 |
|
|
$ |
(0.7 |
) |
|
|
|
|
|
|
|
|||||||
Net income (loss) |
$ |
13.4 |
|
|
$ |
(93.6 |
) |
|
$ |
106.9 |
|
|
|
|
|
|
|
|
|||||||
Land and land development spending (in millions) |
$ |
269.0 |
|
|
$ |
260.9 |
|
|
$ |
8.1 |
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA (in millions) |
$ |
73.3 |
|
|
$ |
59.4 |
|
|
$ |
13.8 |
|
* |
Change and totals are calculated using unrounded numbers. |
+ |
There were no inventory impairments and abandonments for the six months ended |
“LTM” indicates amounts for the trailing 12 months. |
|
As of |
||||||||||||
|
2020 |
|
2019 |
|
Change |
||||||||
Backlog units |
2,231 |
|
|
1,989 |
|
|
12.2 |
% |
|||||
Dollar value of backlog (in millions) |
$ |
895.0 |
|
|
$ |
783.3 |
|
|
14.3 |
% |
|||
ASP in backlog (in thousands) |
$ |
401.2 |
|
|
$ |
393.8 |
|
|
1.9 |
% |
|||
Land and lots controlled |
19,654 |
|
|
22,383 |
|
|
(12.2 |
)% |
Conference Call
The Company will hold a conference call on
Headquartered in
This press release 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 differ materially from the results discussed in the forward-looking statements, including, among other things: (i) the potential negative impact of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed below, may include a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home, an inability to sell and build homes in a typical manner or at all, increased costs or decreased supply of building materials or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations, and recognizing charges in future periods, which may be material, for goodwill impairments, inventory impairments and/or land option contract abandonments; (ii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, which have worsened and may continue to worsen as a result of the COVID-19 pandemic, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; (iii) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (iv) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (v) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation or increases in the quantity and decreases in the price of new homes and resale homes on the market; (vi) shortages of or increased prices for labor, land or raw materials used in housing production, and the level of quality and craftsmanship provided by our subcontractors; (vii) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select
Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time-to-time, and it is not possible to predict all such factors.
-Tables Follow-
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
in thousands (except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Total revenue |
$ |
489,413 |
|
|
$ |
421,260 |
|
|
$ |
907,217 |
|
|
$ |
823,300 |
|
|
Home construction and land sales expenses |
410,568 |
|
|
356,329 |
|
|
765,235 |
|
|
696,707 |
|
|||||
Inventory impairments and abandonments |
— |
|
|
147,611 |
|
|
— |
|
|
148,618 |
|
|||||
Gross profit (loss) |
78,845 |
|
|
(82,680 |
) |
|
141,982 |
|
|
(22,025 |
) |
|||||
Commissions |
18,744 |
|
|
15,998 |
|
|
34,809 |
|
|
31,735 |
|
|||||
General and administrative expenses |
40,050 |
|
|
37,372 |
|
|
79,749 |
|
|
76,014 |
|
|||||
Depreciation and amortization |
3,627 |
|
|
2,900 |
|
|
7,054 |
|
|
5,670 |
|
|||||
Operating income (loss) |
16,424 |
|
|
(138,950 |
) |
|
20,370 |
|
|
(135,444 |
) |
|||||
Equity in income of unconsolidated entities |
147 |
|
|
81 |
|
|
134 |
|
|
17 |
|
|||||
Gain on extinguishment of debt |
— |
|
|
216 |
|
|
— |
|
|
216 |
|
|||||
Other expense, net |
(1,786 |
) |
|
(337 |
) |
|
(3,126 |
) |
|
(379 |
) |
|||||
Income (loss) from continuing operations before income taxes |
14,785 |
|
|
(138,990 |
) |
|
17,378 |
|
|
(135,590 |
) |
|||||
Expense (benefit) from income taxes |
4,170 |
|
|
(38,158 |
) |
|
3,959 |
|
|
(42,080 |
) |
|||||
Income (loss) from continuing operations |
10,615 |
|
|
(100,832 |
) |
|
13,419 |
|
|
(93,510 |
) |
|||||
Loss from discontinued operations, net of tax |
(1 |
) |
|
(30 |
) |
|
(59 |
) |
|
(41 |
) |
|||||
Net income (loss) |
$ |
10,614 |
|
|
$ |
(100,862 |
) |
|
$ |
13,360 |
|
|
$ |
(93,551 |
) |
|
Weighted average number of shares: |
|
|
|
|
|
|
|
|||||||||
Basic |
29,868 |
|
|
30,714 |
|
|
29,808 |
|
|
31,263 |
|
|||||
Diluted |
29,975 |
|
|
30,714 |
|
|
30,078 |
|
|
31,263 |
|
|||||
|
|
|
|
|
|
|
|
|||||||||
Basic income (loss) per share: |
|
|
|
|
|
|
|
|||||||||
Continuing operations |
$ |
0.36 |
|
|
$ |
(3.28 |
) |
|
$ |
0.45 |
|
|
$ |
(2.99 |
) |
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Total |
$ |
0.36 |
|
|
$ |
(3.28 |
) |
|
$ |
0.45 |
|
|
$ |
(2.99 |
) |
|
Diluted income (loss) per share: |
|
|
|
|
|
|
|
|||||||||
Continuing operations |
$ |
0.35 |
|
|
$ |
(3.28 |
) |
|
$ |
0.45 |
|
|
$ |
(2.99 |
) |
|
Discontinued operations |
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Total |
$ |
0.35 |
|
|
$ |
(3.28 |
) |
|
$ |
0.45 |
|
|
$ |
(2.99 |
) |
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|||||||||||||
Capitalized Interest in Inventory |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Capitalized interest in inventory, beginning of period |
$ |
137,010 |
|
|
$ |
151,886 |
|
|
$ |
136,565 |
|
|
$ |
144,645 |
|
|
Interest incurred |
22,271 |
|
|
25,803 |
|
|
43,827 |
|
|
50,724 |
|
|||||
Capitalized interest impaired |
— |
|
|
(13,792 |
) |
|
— |
|
|
(13,907 |
) |
|||||
Interest expense not qualified for capitalization and included as other expense |
(1,928 |
) |
|
(597 |
) |
|
(3,370 |
) |
|
(839 |
) |
|||||
Capitalized interest amortized to home construction and land sales expenses |
(22,660 |
) |
|
(18,544 |
) |
|
(42,329 |
) |
|
(35,867 |
) |
|||||
Capitalized interest in inventory, end of period |
$ |
134,693 |
|
|
$ |
144,756 |
|
|
$ |
134,693 |
|
|
$ |
144,756 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
|
|
|
|
|
||||
in thousands (except share and per share data) |
|
|
|
|
||||
ASSETS |
|
|
|
|||||
Cash and cash equivalents |
$ |
294,265 |
|
|
$ |
106,741 |
|
|
Restricted cash |
18,282 |
|
|
16,053 |
|
|||
Accounts receivable (net of allowance of |
20,574 |
|
|
26,395 |
|
|||
Income tax receivable |
9,224 |
|
|
4,935 |
|
|||
Owned inventory |
1,595,300 |
|
|
1,504,248 |
|
|||
Investments in unconsolidated entities |
4,040 |
|
|
3,962 |
|
|||
Deferred tax assets, net |
238,766 |
|
|
246,957 |
|
|||
Property and equipment, net |
25,820 |
|
|
27,421 |
|
|||
Operating lease right-of-use assets |
15,109 |
|
|
— |
|
|||
|
11,376 |
|
|
11,376 |
|
|||
Other assets |
6,239 |
|
|
9,556 |
|
|||
Total assets |
$ |
2,238,995 |
|
|
$ |
1,957,644 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Trade accounts payable |
$ |
137,238 |
|
|
$ |
131,152 |
|
|
Operating lease liabilities |
$ |
17,147 |
|
|
$ |
— |
|
|
Other liabilities |
108,336 |
|
|
109,429 |
|
|||
Total debt (net of debt issuance costs of |
1,428,792 |
|
|
1,178,309 |
|
|||
Total liabilities |
1,691,513 |
|
|
1,418,890 |
|
|||
Stockholders’ equity: |
|
|
|
|||||
Preferred stock (par value |
— |
|
|
— |
|
|||
Common stock (par value |
31 |
|
|
31 |
|
|||
Paid-in capital |
849,643 |
|
|
854,275 |
|
|||
Accumulated deficit |
(302,192 |
) |
|
(315,552 |
) |
|||
Total stockholders’ equity |
547,482 |
|
|
538,754 |
|
|||
Total liabilities and stockholders’ equity |
$ |
2,238,995 |
|
|
$ |
1,957,644 |
|
|
|
|
|
|
|||||
Inventory Breakdown |
|
|
|
|||||
Homes under construction |
$ |
634,380 |
|
|
$ |
507,542 |
|
|
Development projects in progress |
706,691 |
|
|
738,201 |
|
|||
Land held for future development |
28,531 |
|
|
28,531 |
|
|||
Land held for sale |
10,716 |
|
|
12,662 |
|
|||
Capitalized interest |
134,693 |
|
|
136,565 |
|
|||
Model homes |
80,289 |
|
|
80,747 |
|
|||
Total owned inventory |
$ |
1,595,300 |
|
|
$ |
1,504,248 |
|
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
SELECTED OPERATING DATA |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Closings: |
|
|
|
|
|
|
|
|||||||||
West region |
735 |
|
|
606 |
|
|
1,429 |
|
|
1,207 |
|
|||||
East region |
235 |
|
|
213 |
|
|
427 |
|
|
401 |
|
|||||
Southeast region |
307 |
|
|
315 |
|
|
533 |
|
|
609 |
|
|||||
Total closings |
1,277 |
|
|
1,134 |
|
|
2,389 |
|
|
2,217 |
|
|||||
|
|
|
|
|
|
|
|
|||||||||
New orders, net of cancellations: |
|
|
|
|
|
|
|
|||||||||
West region |
953 |
|
|
806 |
|
|
1,690 |
|
|
1,325 |
|
|||||
East region |
351 |
|
|
334 |
|
|
584 |
|
|
535 |
|
|||||
Southeast region |
357 |
|
|
458 |
|
|
638 |
|
|
714 |
|
|||||
Total new orders, net |
1,661 |
|
|
1,598 |
|
|
2,912 |
|
|
2,574 |
|
|||||
|
|
As of |
||||||||||||||
Backlog units at end of period: |
|
2020 |
|
2019 |
||||||||||||
West region |
|
1,243 |
|
|
976 |
|
||||||||||
East region |
|
498 |
|
|
415 |
|
||||||||||
Southeast region |
|
490 |
|
|
598 |
|
||||||||||
Total backlog units |
|
2,231 |
|
|
1,989 |
|
||||||||||
Dollar value of backlog at end of period (in millions) |
|
$ |
895.0 |
|
|
$ |
783.3 |
|
||||||||
in thousands |
Three Months Ended |
|
Six Months Ended |
|||||||||||||
SUPPLEMENTAL FINANCIAL DATA |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Homebuilding revenue: |
|
|
|
|
|
|
|
|||||||||
West region |
$ |
267,231 |
|
|
$ |
210,430 |
|
|
$ |
521,629 |
|
|
$ |
419,374 |
|
|
East region |
110,011 |
|
|
93,751 |
|
|
187,656 |
|
|
181,516 |
|
|||||
Southeast region |
110,744 |
|
|
116,764 |
|
|
196,100 |
|
|
221,037 |
|
|||||
Total homebuilding revenue |
$ |
487,986 |
|
|
$ |
420,945 |
|
|
$ |
905,385 |
|
|
$ |
821,927 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||
Homebuilding |
$ |
487,986 |
|
|
$ |
420,945 |
|
|
$ |
905,385 |
|
|
$ |
821,927 |
|
|
Land sales and other |
1,427 |
|
|
315 |
|
|
1,832 |
|
|
1,373 |
|
|||||
Total revenue |
$ |
489,413 |
|
|
$ |
421,260 |
|
|
$ |
907,217 |
|
|
$ |
823,300 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit (loss): |
|
|
|
|
|
|
|
|||||||||
Homebuilding |
$ |
78,744 |
|
|
$ |
(44,148 |
) |
|
$ |
141,852 |
|
|
$ |
16,471 |
|
|
Land sales and other |
101 |
|
|
(38,532 |
) |
|
130 |
|
|
(38,496 |
) |
|||||
Total gross profit (loss) |
$ |
78,845 |
|
|
$ |
(82,680 |
) |
|
$ |
141,982 |
|
|
$ |
(22,025 |
) |
Reconciliation of homebuilding gross profit and the related gross margin before impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit (loss) and gross margin, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments and level of debt.
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
in thousands |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||||||||
Homebuilding gross profit (loss)/margin |
$ |
78,744 |
|
16.1 |
% |
|
$ |
(44,148 |
) |
(10.5 |
)% |
|
$ |
141,852 |
|
15.7 |
% |
|
$ |
16,471 |
|
2.0 |
% |
|
Inventory impairments and abandonments (I&A) |
— |
|
|
|
109,023 |
|
|
|
— |
|
|
|
110,030 |
|
|
|||||||||
Homebuilding gross profit/margin before I&A |
78,744 |
|
16.1 |
% |
|
64,875 |
|
15.4 |
% |
|
141,852 |
|
15.7 |
% |
|
126,501 |
|
15.4 |
% |
|||||
Interest amortized to cost of sales |
22,660 |
|
|
|
18,544 |
|
|
|
42,329 |
|
|
|
35,867 |
|
|
|||||||||
Homebuilding gross profit/margin before I&A and interest amortized to cost of sales |
$ |
101,404 |
|
20.8 |
% |
|
$ |
83,419 |
|
19.8 |
% |
|
$ |
184,181 |
|
20.3 |
% |
|
$ |
162,368 |
|
19.8 |
% |
Reconciliation of Adjusted EBITDA to total company net income (loss), the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective capitalization, tax position and level of impairments. These EBITDA measures should not be considered alternatives to net income (loss) determined in accordance with GAAP as an indicator of operating performance.
The reconciliation of Adjusted EBITDA to total company net income (loss) below differs from prior year, as it reclassifies stock-based compensation expense from an adjustment within EBITDA to an adjustment within Adjusted EBITDA in order to accurately present EBITDA per its definition.
|
Three Months Ended |
|
Six Months Ended |
|
LTM Ended |
|||||||||||||||||||
in thousands |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||||||
Net income (loss) |
$ |
10,614 |
|
|
$ |
(100,862 |
) |
|
$ |
13,360 |
|
|
$ |
(93,551 |
) |
|
$ |
27,391 |
|
|
$ |
(19,537 |
) |
|
Expense (benefit) from income taxes |
4,170 |
|
|
(38,168 |
) |
|
3,942 |
|
|
(42,092 |
) |
|
8,789 |
|
|
(56,691 |
) |
|||||||
Interest amortized to home construction and land sales expenses and capitalized interest impaired |
22,660 |
|
|
32,336 |
|
|
42,329 |
|
|
49,774 |
|
|
101,496 |
|
|
106,756 |
|
|||||||
Interest expense not qualified for capitalization |
1,928 |
|
|
597 |
|
|
3,370 |
|
|
839 |
|
|
5,640 |
|
|
1,079 |
|
|||||||
EBIT |
39,372 |
|
|
(106,097 |
) |
|
63,001 |
|
|
(85,030 |
) |
|
143,316 |
|
|
31,607 |
|
|||||||
Depreciation and amortization |
3,627 |
|
|
2,900 |
|
|
7,054 |
|
|
5,670 |
|
|
16,143 |
|
|
13,904 |
|
|||||||
EBITDA |
42,999 |
|
|
(103,197 |
) |
|
70,055 |
|
|
(79,360 |
) |
|
159,459 |
|
|
45,511 |
|
|||||||
Stock-based compensation expense |
899 |
|
|
2,180 |
|
|
3,210 |
|
|
4,294 |
|
|
9,442 |
|
|
9,344 |
|
|||||||
(Gain) loss on extinguishment of debt |
— |
|
|
(216 |
) |
|
— |
|
|
(216 |
) |
|
25,136 |
|
|
1,719 |
|
|||||||
Inventory impairments and abandonments (b) |
— |
|
|
133,819 |
|
|
— |
|
|
134,711 |
|
|
— |
|
|
139,249 |
|
|||||||
Joint venture impairment and abandonment charges |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
341 |
|
|||||||
Adjusted EBITDA |
$ |
43,898 |
|
|
$ |
32,586 |
|
|
$ |
73,265 |
|
|
$ |
59,429 |
|
|
$ |
194,037 |
|
|
$ |
196,164 |
|
(a) |
“LTM” indicates amounts for the trailing 12 months. |
|
(b) |
In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled “Interest amortized to home construction and land sales expenses and capitalized interest impaired.” |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200430005804/en/
Vice President of
770-829-3700
investor.relations@beazer.com
Source: