Beazer Homes Reports Third Quarter Fiscal 2023 Results
“Strong third quarter results were highlighted by an improved sales pace, higher backlog conversion and lower sales concessions,” said
Commenting on current market conditions,
Looking further out,
Beazer Homes Fiscal Third Quarter 2023 Highlights and Comparison to Fiscal Third Quarter 2022
-
Net income from continuing operations of
$43.8 million , or$1.42 per diluted share, compared to net income from continuing operations of$54.3 million , or$1.76 per diluted share, in fiscal third quarter 2022 -
Adjusted EBITDA of
$72.8 million , down 17.5% -
Homebuilding revenue of
$570.5 million , up 9.0% on a 7.1% increase in home closings to 1,117 and a 1.8% increase in average selling price to$510.8 thousand - Homebuilding gross margin was 20.2%, down 490 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 23.4%, down 470 basis points
- SG&A as a percentage of total revenue was 11.5%, down 30 basis points
- Net new orders of 1,200, up 29.7% on a 28.3% increase in orders per community per month to 3.2 and a 1.1% increase in average community count to 124
-
Backlog dollar value of
$1.0 billion , down 36.4% on a 35.4% decrease in backlog units to 1,941 and a 1.6% decrease in average selling price of homes in backlog to$520.3 thousand -
Unrestricted cash at quarter end was
$276.1 million ; total liquidity was$541.1 million
The following provides additional details on the Company's performance during the fiscal third quarter 2023:
Profitability. Net income from continuing operations was
Orders. Net new orders for the third quarter were 1,200, up 29.7% from 925 in the prior year quarter primarily driven by a 28.3% increase in sales pace to 3.2 orders per community per month, up from 2.5 in the prior year quarter. The cancellation rate for the quarter was 16.1%, down from 17.0% in the prior year quarter.
Backlog. The dollar value of homes in backlog as of
Homebuilding Revenue. Third quarter homebuilding revenue was
Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 23.4% for the third quarter, down from 28.1% in the prior year quarter. Although down versus the prior year quarter, homebuilding gross margin was strong by historical standards and exceeded expectations, in part due to higher than expected spec home margins, as well as reduced build costs and lower closing cost incentives.
SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.5% for the quarter, down 30 basis points year-over-year as a result of the Company's continued focus on overhead cost management while benefiting from higher revenue on higher closings.
Land Position. Controlled lots decreased 8.8% to 22,719, compared to 24,899 from the prior year quarter. Excluding land held for future development and land held for sale lots, active lots controlled were 22,061, down 8.6% year-over-year in part due to timing of home closings and new land deals. As of
Liquidity. At the close of the third quarter, the Company had
Debt Repurchases. During the quarter, the Company repurchased
Commitment to ESG Initiatives
The Company remains committed to ensuring that by the end of 2025 every new Beazer home will be Zero Energy Ready, which will meet the requirements of the
In April,
Summary results for the three and nine months ended
|
Three Months Ended |
|||||||||
|
2023 |
|
2022 |
|
Change* |
|||||
New home orders, net of cancellations |
|
1,200 |
|
|
|
925 |
|
|
29.7 |
% |
Orders per community per month |
|
3.2 |
|
|
|
2.5 |
|
|
28.3 |
% |
Average active community count |
|
124 |
|
|
|
123 |
|
|
1.1 |
% |
Active community count at quarter-end |
|
125 |
|
|
|
124 |
|
|
0.8 |
% |
Cancellation rates |
|
16.1 |
% |
|
|
17.0 |
% |
|
(90) bps |
|
|
|
|
|
|
|
|||||
Total home closings |
|
1,117 |
|
|
|
1,043 |
|
|
7.1 |
% |
Average selling price (ASP) from closings (in thousands) |
$ |
510.8 |
|
|
$ |
501.7 |
|
|
1.8 |
% |
Homebuilding revenue (in millions) |
$ |
570.5 |
|
|
$ |
523.2 |
|
|
9.0 |
% |
Homebuilding gross margin |
|
20.2 |
% |
|
|
25.1 |
% |
|
(490) bps |
|
Homebuilding gross margin, excluding impairments and abandonments (I&A) |
|
20.3 |
% |
|
|
25.1 |
% |
|
(480) bps |
|
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
|
23.4 |
% |
|
|
28.1 |
% |
|
(470) bps |
|
|
|
|
|
|
|
|||||
Income from continuing operations before income taxes (in millions) |
$ |
50.1 |
|
|
$ |
67.5 |
|
|
(25.8 |
)% |
Expense from income taxes (in millions) |
$ |
6.2 |
|
|
$ |
13.2 |
|
|
(52.5 |
)% |
Income from continuing operations, net of tax (in millions) |
$ |
43.8 |
|
|
$ |
54.3 |
|
|
(19.3 |
)% |
Basic income per share from continuing operations |
$ |
1.44 |
|
|
$ |
1.78 |
|
|
(19.1 |
)% |
Diluted income per share from continuing operations |
$ |
1.42 |
|
|
$ |
1.76 |
|
|
(19.3 |
)% |
|
|
|
|
|
|
|||||
Net income (in millions) |
$ |
43.8 |
|
|
$ |
54.3 |
|
|
(19.3 |
)% |
|
|
|
|
|
|
|||||
Land acquisition and land development spending (in millions) |
$ |
131.6 |
|
|
$ |
159.5 |
|
|
(17.5 |
)% |
|
|
|
|
|
|
|||||
Adjusted EBITDA (in millions) |
$ |
72.8 |
|
|
$ |
88.2 |
|
|
(17.5 |
)% |
LTM Adjusted EBITDA (in millions) |
$ |
325.4 |
|
|
$ |
302.8 |
|
|
7.5 |
% |
* Change and totals are calculated using unrounded numbers. |
"LTM" indicates amounts for the trailing 12 months. |
|
Nine Months Ended |
|||||||||
|
2023 |
|
2022 |
|
Change* |
|||||
New home orders, net of cancellations |
|
2,863 |
|
|
|
3,357 |
|
|
(14.7 |
)% |
LTM orders per community per month |
|
2.4 |
|
|
|
3.1 |
|
|
(22.6 |
)% |
Cancellation rates |
|
21.5 |
% |
|
|
13.5 |
% |
|
800 bps |
|
|
|
|
|
|
|
|||||
Total home closings |
|
3,013 |
|
|
|
3,140 |
|
|
(4.0 |
)% |
ASP from closings (in thousands) |
$ |
516.6 |
|
|
$ |
470.4 |
|
|
9.8 |
% |
Homebuilding revenue (in millions) |
$ |
1,556.6 |
|
|
$ |
1,477.2 |
|
|
5.4 |
% |
Homebuilding gross margin |
|
19.4 |
% |
|
|
23.3 |
% |
|
(390) bps |
|
Homebuilding gross margin, excluding I&A |
|
19.5 |
% |
|
|
23.3 |
% |
|
(380) bps |
|
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales |
|
22.6 |
% |
|
|
26.5 |
% |
|
(390) bps |
|
|
|
|
|
|
|
|||||
Income from continuing operations before income taxes (in millions) |
$ |
118.4 |
|
|
$ |
163.6 |
|
|
(27.6 |
)% |
Expense from income taxes (in millions) |
$ |
15.5 |
|
|
$ |
29.7 |
|
|
(47.8 |
)% |
Income from continuing operations, net of tax (in millions) |
$ |
102.9 |
|
|
$ |
133.9 |
|
|
(23.1 |
)% |
Basic income per share from continuing operations |
$ |
3.39 |
|
|
$ |
4.39 |
|
|
(22.8 |
)% |
Diluted income per share from continuing operations |
$ |
3.36 |
|
|
$ |
4.35 |
|
|
(22.8 |
)% |
|
|
|
|
|
|
|||||
Net income (in millions) |
$ |
102.9 |
|
|
$ |
133.9 |
|
|
(23.2 |
)% |
|
|
|
|
|
|
|||||
Land acquisition and land development spending (in millions) |
$ |
359.3 |
|
|
$ |
422.8 |
|
|
(15.0 |
)% |
|
|
|
|
|
|
|||||
Adjusted EBITDA (in millions) |
$ |
182.1 |
|
|
$ |
226.7 |
|
|
(19.7 |
)% |
* Change and totals are calculated using unrounded numbers. |
"LTM" indicates amounts for the trailing 12 months. |
|
As of |
|||||||
|
|
2023 |
|
|
2022 |
|
Change |
|
Backlog units |
|
1,941 |
|
|
3,003 |
|
(35.4 |
)% |
Dollar value of backlog (in millions) |
$ |
1,009.8 |
|
$ |
1,588.0 |
|
(36.4 |
)% |
ASP in backlog (in thousands) |
$ |
520.3 |
|
$ |
528.8 |
|
(1.6 |
)% |
Land and lots controlled |
|
22,719 |
|
|
24,899 |
|
(8.8 |
)% |
Conference Call
The Company will hold a conference call on
About
Headquartered in
We build our homes 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:
- the cyclical nature of the homebuilding industry and deterioration in homebuilding industry conditions;
-
continued increases in mortgage interest rates and reduced availability of mortgage financing due to, among other factors, additional actions by the
Federal Reserve to address sharp increases in inflation; - other economic changes nationally and in local markets, including changes in consumer confidence, wage levels, declines in employment levels, and an increase in the number of foreclosures, each of which is outside our control and affects the affordability of, and demand for, the homes we sell;
- continued supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances;
- continued shortages of or increased costs for labor used in housing production, and the level of quality and craftsmanship provided by such labor;
- inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled;
- financial institution disruptions, such as recent bank failures;
- potential negative impacts of public health emergencies such as the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and 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, including lumber, 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 agreement abandonments;
- factors affecting margins, such as adjustments to home pricing, increased sales incentives and mortgage rate buy down programs in order to remain competitive; decreased revenues; decreased land values underlying land option agreements; increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our cycle times and production and overhead cost structures; not being able to pass on cost increases (including cost increases due to increasing the energy efficiency of our homes) through pricing increases;
-
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
California assets during the second quarter of fiscal 2019; - our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility), adverse credit market conditions and financial institution disruptions, 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;
- market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital);
- changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes;
- increased competition or delays in reacting to changing consumer preferences in home design;
- natural disasters or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas;
- the potential recoverability of our deferred tax assets;
- increases in corporate tax rates;
- potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment;
- the results of litigation or government proceedings and fulfillment of any related obligations;
- the impact of construction defect and home warranty claims;
- the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred;
- the impact of information technology failures, cybersecurity issues or data security breaches;
- the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water and electricity (including availability of electrical equipment such as transformers and meters);
- the success of our ESG initiatives, including our ability to meet our goal that by 2025 every home we build will be Net Zero Energy Ready, as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Net Zero future; and
- terrorist acts, protests and civil unrest, political uncertainty, acts of war or other factors over which the Company has no control.
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 |
|
Nine Months Ended |
|||||||||||
|
|
|
|
|||||||||||
in thousands (except per share data) |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Total revenue |
$ |
572,544 |
|
|
$ |
526,666 |
|
$ |
1,561,380 |
|
|
$ |
1,489,321 |
|
Home construction and land sales expenses |
|
455,485 |
|
|
|
394,201 |
|
|
1,255,356 |
|
|
|
1,138,771 |
|
Inventory impairments and abandonments |
|
315 |
|
|
|
— |
|
|
616 |
|
|
|
935 |
|
Gross profit |
|
116,744 |
|
|
|
132,465 |
|
|
305,408 |
|
|
|
349,615 |
|
Commissions |
|
19,473 |
|
|
|
16,277 |
|
|
51,883 |
|
|
|
48,668 |
|
General and administrative expenses |
|
46,464 |
|
|
|
45,760 |
|
|
129,891 |
|
|
|
129,057 |
|
Depreciation and amortization |
|
2,907 |
|
|
|
3,189 |
|
|
8,440 |
|
|
|
9,101 |
|
Operating income |
|
47,900 |
|
|
|
67,239 |
|
|
115,194 |
|
|
|
162,789 |
|
(Loss) gain on extinguishment of debt, net |
|
(18 |
) |
|
|
86 |
|
|
(533 |
) |
|
|
(78 |
) |
Other income, net |
|
2,176 |
|
|
|
137 |
|
|
3,759 |
|
|
|
859 |
|
Income from continuing operations before income taxes |
|
50,058 |
|
|
|
67,462 |
|
|
118,420 |
|
|
|
163,570 |
|
Expense from income taxes |
|
6,241 |
|
|
|
13,150 |
|
|
15,488 |
|
|
|
29,685 |
|
Income from continuing operations |
|
43,817 |
|
|
|
54,312 |
|
|
102,932 |
|
|
|
133,885 |
|
Gain (loss) from discontinued operations, net of tax |
|
— |
|
|
|
12 |
|
|
(77 |
) |
|
|
(4 |
) |
Net income |
$ |
43,817 |
|
|
$ |
54,324 |
|
$ |
102,855 |
|
|
$ |
133,881 |
|
Weighted-average number of shares: |
|
|
|
|
|
|
|
|||||||
Basic |
|
30,395 |
|
|
|
30,512 |
|
|
30,335 |
|
|
|
30,480 |
|
Diluted |
|
30,860 |
|
|
|
30,872 |
|
|
30,649 |
|
|
|
30,806 |
|
Basic income per share: |
|
|
|
|
|
|
|
|||||||
Continuing operations |
$ |
1.44 |
|
|
$ |
1.78 |
|
$ |
3.39 |
|
|
$ |
4.39 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Total |
$ |
1.44 |
|
|
$ |
1.78 |
|
$ |
3.39 |
|
|
$ |
4.39 |
|
Diluted income per share: |
|
|
|
|
|
|
|
|||||||
Continuing operations |
$ |
1.42 |
|
|
$ |
1.76 |
|
$ |
3.36 |
|
|
$ |
4.35 |
|
Discontinued operations |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Total |
$ |
1.42 |
|
|
$ |
1.76 |
|
$ |
3.36 |
|
|
$ |
4.35 |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
||||||||||||
Capitalized Interest in Inventory |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Capitalized interest in inventory, beginning of period |
$ |
113,886 |
|
|
$ |
112,686 |
|
|
$ |
109,088 |
|
|
$ |
106,985 |
|
Interest incurred |
|
18,027 |
|
|
|
18,728 |
|
|
|
53,891 |
|
|
|
55,292 |
|
Capitalized interest amortized to home construction and land sales expenses |
|
(17,504 |
) |
|
|
(15,679 |
) |
|
|
(48,570 |
) |
|
|
(46,542 |
) |
Capitalized interest in inventory, end of period |
$ |
114,409 |
|
|
$ |
115,735 |
|
|
$ |
114,409 |
|
|
$ |
115,735 |
|
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited) |
|||||
in thousands (except share and per share data) |
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
276,125 |
|
$ |
214,594 |
Restricted cash |
|
39,540 |
|
|
37,234 |
Accounts receivable (net of allowance of |
|
33,195 |
|
|
35,890 |
Income tax receivable |
|
— |
|
|
9,606 |
Owned inventory |
|
1,741,651 |
|
|
1,737,865 |
Deferred tax assets, net |
|
141,761 |
|
|
156,358 |
Property and equipment, net |
|
28,927 |
|
|
24,566 |
Operating lease right-of-use assets |
|
16,156 |
|
|
9,795 |
|
|
11,376 |
|
|
11,376 |
Other assets |
|
29,867 |
|
|
14,679 |
Total assets |
$ |
2,318,598 |
|
$ |
2,251,963 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Trade accounts payable |
$ |
136,813 |
|
$ |
143,641 |
Operating lease liabilities |
|
17,665 |
|
|
11,208 |
Other liabilities |
|
138,207 |
|
|
174,388 |
Total debt (net of debt issuance costs of |
|
981,128 |
|
|
983,440 |
Total liabilities |
|
1,273,813 |
|
|
1,312,677 |
Stockholders’ equity: |
|
|
|
||
Preferred stock (par value |
|
— |
|
|
— |
Common stock (par value |
|
31 |
|
|
31 |
Paid-in capital |
|
862,500 |
|
|
859,856 |
Retained earnings |
|
182,254 |
|
|
79,399 |
Total stockholders’ equity |
|
1,044,785 |
|
|
939,286 |
Total liabilities and stockholders’ equity |
$ |
2,318,598 |
|
$ |
2,251,963 |
|
|
|
|
||
Inventory Breakdown |
|
|
|
||
Homes under construction |
$ |
719,231 |
|
$ |
785,742 |
Land under development |
|
785,752 |
|
|
731,190 |
Land held for future development |
|
19,879 |
|
|
19,879 |
Land held for sale |
|
16,764 |
|
|
15,674 |
Capitalized interest |
|
114,409 |
|
|
109,088 |
Model homes |
|
85,616 |
|
|
76,292 |
Total owned inventory |
$ |
1,741,651 |
|
$ |
1,737,865 |
|
|||||||
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS |
|||||||
|
Three Months Ended |
|
Nine Months Ended |
||||
SELECTED OPERATING DATA |
2023 |
|
2022 |
|
2023 |
|
2022 |
Closings: |
|
|
|
|
|
|
|
West region |
634 |
|
666 |
|
1,775 |
|
1,934 |
East region |
253 |
|
212 |
|
644 |
|
709 |
Southeast region |
230 |
|
165 |
|
594 |
|
497 |
Total closings |
1,117 |
|
1,043 |
|
3,013 |
|
3,140 |
|
|
|
|
|
|
|
|
New orders, net of cancellations: |
|
|
|
|
|
|
|
West region |
705 |
|
576 |
|
1,584 |
|
2,063 |
East region |
251 |
|
192 |
|
667 |
|
712 |
Southeast region |
244 |
|
157 |
|
612 |
|
582 |
Total new orders, net |
1,200 |
|
925 |
|
2,863 |
|
3,357 |
|
As of |
||||
Backlog units: |
2023 |
|
2022 |
||
West region |
|
1,066 |
|
|
1,782 |
East region |
|
433 |
|
|
614 |
Southeast region |
|
442 |
|
|
607 |
Total backlog units |
|
1,941 |
|
|
3,003 |
Aggregate dollar value of homes in backlog (in millions) |
$ |
1,009.8 |
|
$ |
1,588.0 |
ASP in backlog (in thousands) |
$ |
520.3 |
|
$ |
528.8 |
in thousands |
Three Months Ended |
|
Nine Months Ended |
||||||||
SUPPLEMENTAL FINANCIAL DATA |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Homebuilding revenue: |
|
|
|
|
|
|
|
||||
West region |
$ |
326,883 |
|
$ |
324,074 |
|
$ |
930,166 |
|
$ |
883,453 |
East region |
|
132,863 |
|
|
112,237 |
|
|
338,763 |
|
|
354,948 |
Southeast region |
|
110,789 |
|
|
86,918 |
|
|
287,697 |
|
|
238,765 |
Total homebuilding revenue |
$ |
570,535 |
|
$ |
523,229 |
|
$ |
1,556,626 |
|
$ |
1,477,166 |
|
|
|
|
|
|
|
|
||||
Revenue: |
|
|
|
|
|
|
|
||||
Homebuilding |
$ |
570,535 |
|
$ |
523,229 |
|
$ |
1,556,626 |
|
$ |
1,477,166 |
Land sales and other |
|
2,009 |
|
|
3,437 |
|
|
4,754 |
|
|
12,155 |
Total revenue |
$ |
572,544 |
|
$ |
526,666 |
|
$ |
1,561,380 |
|
$ |
1,489,321 |
|
|
|
|
|
|
|
|
||||
Gross profit: |
|
|
|
|
|
|
|
||||
Homebuilding |
$ |
115,493 |
|
$ |
131,549 |
|
$ |
302,195 |
|
$ |
344,255 |
Land sales and other |
|
1,251 |
|
|
916 |
|
|
3,213 |
|
|
5,360 |
Total gross profit |
$ |
116,744 |
|
$ |
132,465 |
|
$ |
305,408 |
|
$ |
349,615 |
Reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit 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. These measures should not be considered alternative to homebuilding gross profit and gross margin determined in accordance with GAAP as an indicator of operating performance.
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
in thousands |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||||||||
Homebuilding gross
|
$ |
115,493 |
20.2 |
% |
|
$ |
131,549 |
25.1 |
% |
|
$ |
302,195 |
19.4 |
% |
|
$ |
344,255 |
23.3 |
% |
||||
Inventory impairments and
|
|
315 |
|
|
|
— |
|
|
|
616 |
|
|
|
495 |
|
||||||||
Homebuilding gross
|
|
115,808 |
20.3 |
% |
|
|
131,549 |
25.1 |
% |
|
|
302,811 |
19.5 |
% |
|
|
344,750 |
23.3 |
% |
||||
Interest amortized to cost of
|
|
17,504 |
|
|
|
15,679 |
|
|
|
48,570 |
|
|
|
46,542 |
|
||||||||
Homebuilding gross profit/margin excluding I&A
|
$ |
133,312 |
23.4 |
% |
|
$ |
147,228 |
28.1 |
% |
|
$ |
351,381 |
22.6 |
% |
|
$ |
391,292 |
26.5 |
% |
Reconciliation of Adjusted EBITDA to total company net income, 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 determined in accordance with GAAP as an indicator of operating performance.
|
Three Months Ended |
|
Nine Months Ended |
|
LTM Ended |
|||||||||||||
in thousands |
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income |
$ |
43,817 |
|
$ |
54,324 |
|
|
$ |
102,855 |
|
$ |
133,881 |
|
$ |
189,678 |
|
$ |
182,242 |
Expense from income taxes |
|
6,241 |
|
|
13,152 |
|
|
|
15,466 |
|
|
29,683 |
|
|
39,050 |
|
|
28,597 |
Interest amortized to home construction and land sales expenses and capitalized interest impaired |
|
17,504 |
|
|
15,679 |
|
|
|
48,570 |
|
|
46,542 |
|
|
74,086 |
|
|
68,380 |
EBIT |
|
67,562 |
|
|
83,155 |
|
|
|
166,891 |
|
|
210,106 |
|
|
302,814 |
|
|
279,219 |
Depreciation and amortization |
|
2,907 |
|
|
3,189 |
|
|
|
8,440 |
|
|
9,101 |
|
|
12,699 |
|
|
12,583 |
EBITDA |
|
70,469 |
|
|
86,344 |
|
|
|
175,331 |
|
|
219,207 |
|
|
315,513 |
|
|
291,802 |
Stock-based compensation expense |
|
1,989 |
|
|
1,983 |
|
|
|
5,247 |
|
|
6,515 |
|
|
7,210 |
|
|
9,428 |
Loss (gain) on extinguishment of debt |
|
18 |
|
|
(86 |
) |
|
|
533 |
|
|
78 |
|
|
146 |
|
|
490 |
Inventory impairments and abandonments(b) |
|
315 |
|
|
— |
|
|
|
616 |
|
|
935 |
|
|
2,205 |
|
|
1,092 |
Severance expenses |
|
— |
|
|
— |
|
|
|
335 |
|
|
— |
|
|
335 |
|
|
— |
Adjusted EBITDA |
$ |
72,791 |
|
$ |
88,241 |
|
|
$ |
182,062 |
|
$ |
226,735 |
|
$ |
325,409 |
|
$ |
302,812 |
(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/20230727695229/en/
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com
Source: