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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest reported event): April 27, 2023
 
BEAZER HOMES USA, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-12822 58-2086934
(State or other jurisdiction
of incorporation)
 (Commission
File Number)
 (IRS Employer
Identification No.)
2002 Summit Boulevard, 15th Floor
Atlanta, Georgia 30319
(Address of Principal Executive Offices)
(770) 829-3700
(Registrant’s telephone number, including area code)
1000 Abernathy Road, Suite 260, Atlanta, Georgia, 30328
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par valueBZHNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Item 2.02Results of Operations and Financial Condition
On April 27, 2023, Beazer Homes USA, Inc. issued a press release announcing results of operations for the three months ended March 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1.
The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is "furnished" and shall not be deemed to be "filed" with the Securities and Exchange Commission or incorporated by reference in any filing under the Securities and Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filings.
Item 9.01Financial Statements and Exhibits
(d) Exhibits
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  BEAZER HOMES USA, Inc.
Date:
April 27, 2023  By:/s/ David I. Goldberg
    David I. Goldberg
Senior Vice President and Chief Financial Officer

Document

Exhibit 99.1
PRESS RELEASE

Beazer Homes Reports Second Quarter Fiscal 2023 Results
ATLANTA, April 27, 2023 - Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the three months ended March 31, 2023.
“Against a backdrop of improving homebuyer confidence and stabilizing interest rates, we generated strong second quarter results,” said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer. “Revenue growth and careful management of overheads led to $62 million in Adjusted EBITDA and $1.13 of earnings per share.”
Commenting on current market conditions, Mr. Merrill said, “While home affordability remains quite challenging, homebuyers appear to be adjusting to a higher interest rate environment aided by both wage growth and moderating home prices. From a production perspective, supply chain issues are greatly improved, allowing us to decrease cycle times and pursue direct cost savings.”
Looking further out, Mr. Merrill concluded, “We remain confident in the multi-year growth of our business and the new home industry. The gap between the structural demand for homes and the likely supply of homes – which has given rise to a multimillion home deficit over the past decade – remains in place. With a seasoned operating team, an ample supply of lots and a more efficient and less leveraged balance sheet, we remain confident that we will be able to create durable value for our stakeholders in the years ahead.”
Beazer Homes Fiscal Second Quarter 2023 Highlights and Comparison to Fiscal Second Quarter 2022
Net income from continuing operations of $34.7 million, or $1.13 per diluted share, compared to net income from continuing operations of $44.7 million, or $1.45 per diluted share, in fiscal second quarter 2022
Adjusted EBITDA of $62.1 million, down 19.7%
Homebuilding revenue of $542.0 million, up 6.9% on a 8.4% increase in average selling price to $509.9 thousand, partially offset by a 1.4% decrease in home closings to 1,063
Homebuilding gross margin was 18.7%, down 480 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 22.0%, down 480 basis points
SG&A as a percentage of total revenue was 11.2%, down 100 basis points
Net new orders of 1,181, down 8.5% on a 11.7% decrease in orders per community per month to 3.2, partially offset by a 3.6% increase in average community count to 123
Backlog dollar value of $987.2 million, down 37.7% on a 40.5% decrease in backlog units to 1,858, partially offset by a 4.7% increase in average selling price of homes in backlog to $531.3 thousand
Controlled lots of 23,820, up 1.3% from 23,516
Land acquisition and land development spending was $113.0 million, down 14.8% from $132.6 million
Unrestricted cash at quarter end was $240.8 million; total liquidity was $505.8 million
The following provides additional details on the Company's performance during the fiscal second quarter 2023:
Profitability. Net income from continuing operations was $34.7 million, generating diluted earnings per share of $1.13. This included the impact of energy efficiency tax credits of $5.6 million or $0.18 per share compared to $3.0 million of such credits or $0.10 per share in the prior year quarter. Second quarter adjusted EBITDA of $62.1 million was down $15.3 million, or 19.7%, primarily due to lower gross margin.
Orders. Net new orders for the second quarter were 1,181, down 8.5% from 1,291 in the prior year quarter, driven by a 11.7% decrease in sales pace to 3.2 orders per community per month, down from 3.6 in the prior year quarter.
Cancellations. The cancellation rate for the quarter was 18.6%, up from 12.2% in the prior year quarter. Although up year-over-year, the cancellation rate was well within our historical normal range and down sequentially from 37.1% in fiscal first quarter 2023, reflecting an improved sales environment.



Backlog. The dollar value of homes in backlog as of March 31, 2023 was $987.2 million, representing 1,858 homes, compared to $1.6 billion, representing 3,121 homes, at the same time last year. The average selling price of homes in backlog was $531.3 thousand, up 4.7% versus the prior year quarter.
Homebuilding Revenue. Second quarter homebuilding revenue was $542.0 million, up 6.9% year-over-year. The increase in homebuilding revenue was driven by an 8.4% increase in the average selling price to $509.9 thousand, which was offset by a 1.4% decrease in home closings to 1,063 homes.
Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 22.0% for the second quarter, down from 26.8% in the prior year quarter. Although down versus the prior year quarter, homebuilding gross margin was above second quarter historical averages and in line with expectations.
SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.2% for the quarter, down 100 basis points year-over-year as a result of the Company's continued focus on overhead cost management while benefiting from higher revenue driven by growth in average selling price. SG&A on an absolute dollar basis decreased by $1.0 million, or 1.6% year-over-year.
Land Position. Controlled lots increased 1.3% to 23,820, compared to 23,516 from the prior year quarter. Excluding land held for future development and land held for sale lots, active lots controlled were 23,091, up 1.6% year-over-year. Through the expansion of lot option agreements, 54.0% of total active lots, or 12,460 lots, were under option agreements compared to 50.8% of total active lots, or 11,551 lots, as of March 31, 2022.
Liquidity. At the close of the second quarter, the Company had $505.8 million of available liquidity, including $240.8 million of unrestricted cash and $265.0 million of remaining capacity under the unsecured revolving credit facility.
Debt Repurchases. Subsequent to the end of the quarter, the Company repurchased $5.0 million of its outstanding 6.750% unsecured Senior Notes due March 2025.

Commitment to ESG Initiatives

During the quarter, the Company was recognized for its continued leadership and commitment to advancing ESG.

In February, Beazer Homes earned the 2023 Top Workplaces USA award, issued by Energage, powered by 16 years of surveying data from more than 27 million employees across 70,000 organizations. Participating companies are measured on anonymous employee feedback comparing the survey’s research-based statements, including 15 Culture Drivers that are proven to predict high performance against industry benchmarks.

In March, the Company received the 2023 ENERGY STAR Partner of the Year Award with Sustained Excellence for the eighth consecutive year. This award highlights the Company’s dedication to continually enhancing the energy efficiency of its homes in support of its industry-first pledge that, by the end of 2025, every home the Company builds will be Net Zero Energy Ready with a gross HERS® index score of 45 or less.

Also in March, Beazer Homes was recognized on Newsweek’s list of America’s Most Trustworthy Companies 2023. This award identified companies based on an independent survey of approximately 25,000 U.S. residents who rated companies they knew from the perspective of customers, investors and employees.



Summary results for the three and six months ended March 31, 2023 are as follows:
Three Months Ended March 31,
20232022Change*
New home orders, net of cancellations1,181 1,291 (8.5)%
Orders per community per month 3.2 3.6 (11.7)%
Average active community count123 119 3.6 %
Active community count at quarter-end121 119 1.7 %
Cancellation rates18.6 %12.2 %640  bps
Total home closings1,063 1,078 (1.4)%
Average selling price (ASP) from closings (in thousands)$509.9 $470.5 8.4 %
Homebuilding revenue (in millions)$542.0 $507.2 6.9 %
Homebuilding gross margin18.7 %23.5 %(480) bps
Homebuilding gross margin, excluding impairments and abandonments (I&A)18.8 %23.6 %(480) bps
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales22.0 %26.8 %(480) bps
Income from continuing operations before income taxes (in millions)$39.8 $54.8 (27.3)%
Expense from income taxes (in millions)$5.1 $10.1 (49.4)%
Income from continuing operations, net of tax (in millions)$34.7 $44.7 (22.3)%
Basic income per share from continuing operations$1.14 $1.46 (21.9)%
Diluted income per share from continuing operations$1.13 $1.45 (22.1)%
Net income (in millions)$34.7 $44.7 (22.3)%
Land acquisition and land development spending (in millions)$113.0 $132.6 (14.8)%
Adjusted EBITDA (in millions)$62.1 $77.4 (19.7)%
LTM Adjusted EBITDA (in millions)$340.9 $293.4 16.2 %
* Change and totals are calculated using unrounded numbers.
"LTM" indicates amounts for the trailing 12 months.



Six Months Ended March 31,
20232022Change*
New home orders, net of cancellations1,663 2,432 (31.6)%
LTM orders per community per month2.2 3.3 (33.3)%
Cancellation rates25.0 %12.0 %1,300  bps
Total home closings1,896 2,097 (9.6)%
ASP from closings (in thousands)$520.1 $454.9 14.3 %
Homebuilding revenue (in millions)$986.1 $953.9 3.4 %
Homebuilding gross margin18.9 %22.3 %(340) bps
Homebuilding gross margin, excluding I&A19.0 %22.3 %(330) bps
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales22.1 %25.6 %(350) bps
Income from continuing operations before income taxes (in millions)$68.4 $96.1 (28.9)%
Expense from income taxes (in millions)$9.2 $16.5 (44.1)%
Income from continuing operations, net of tax (in millions)$59.1 $79.6 (25.7)%
Basic income per share from continuing operations$1.94 $2.61 (25.7)%
Diluted income per share from continuing operations$1.93 $2.59 (25.5)%
Net income (in millions)$59.0 $79.6 (25.8)%
Land acquisition and land development spending (in millions)$227.7 $263.3 (13.5)%
Adjusted EBITDA (in millions)$109.3 $138.5 (21.1)%
* Change and totals are calculated using unrounded numbers.
"LTM" indicates amounts for the trailing 12 months.















As of March 31,
20232022Change
Backlog units1,858 3,121 (40.5)%
Dollar value of backlog (in millions)$987.2 $1,583.5 (37.7)%
ASP in backlog (in thousands)$531.3 $507.4 4.7 %
Land and lots controlled23,820 23,516 1.3 %
Conference Call
The Company will hold a conference call on April 27, 2023 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 630-395-0227). To be admitted to the call, enter the pass code “8571348". A replay of the conference call will be available, until 10:00 PM ET on May 4, 2023 at 866-378-0632 (for international callers, dial 203-369-0313) with pass code “3740.”
About Beazer Homes
Headquartered in Atlanta, Beazer Homes (NYSE: BZH) is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in – saving you money every month. With Beazer's Choice Plans™, you can personalize your primary living areas – giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands over the life of your loan.
We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on FacebookInstagram and Twitter.
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 further deterioration in homebuilding industry conditions;
continued increases in mortgage interest rates and reduced availability of mortgage financing due to, among other factors, recent and likely continued 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 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.

CONTACT: Beazer Homes USA, Inc.

David I. Goldberg
Sr. Vice President & Chief Financial Officer
770-829-3700
investor.relations@beazer.com

-Tables Follow-



BEAZER HOMES USA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months EndedSix Months Ended
 March 31,March 31,
 in thousands (except per share data)2023202220232022
Total revenue$543,908 $508,506 $988,836 $962,655 
Home construction and land sales expenses440,901 387,821 799,871 744,570 
Inventory impairments and abandonments111 935 301 935 
Gross profit102,896 119,750 188,664 217,150 
Commissions18,305 16,578 32,410 32,391 
General and administrative expenses42,779 45,530 83,427 83,297 
Depreciation and amortization3,020 3,031 5,533 5,912 
Operating income38,792 54,611 67,294 95,550 
Loss on extinguishment of debt, net (164)(515)(164)
Other income, net1,007 303 1,583 722 
Income from continuing operations before income taxes39,799 54,750 68,362 96,108 
Expense from income taxes5,092 10,072 9,247 16,535 
Income from continuing operations34,707 44,678 59,115 79,573 
Loss from discontinued operations, net of tax (6)(77)(16)
Net income$34,707 $44,672 $59,038 $79,557 
Weighted-average number of shares:
Basic30,394 30,594 30,464 30,464 
Diluted30,610 30,823 30,702 30,772 
Basic income per share:
Continuing operations$1.14 $1.46 $1.94 $2.61 
Discontinued operations —  — 
Total$1.14 $1.46 $1.94 $2.61 
Diluted income per share:
Continuing operations$1.13 $1.45 $1.93 $2.59 
Discontinued operations —  — 
Total$1.13 $1.45 $1.93 $2.59 
Three Months EndedSix Months Ended
 March 31,March 31,
Capitalized Interest in Inventory2023202220232022
Capitalized interest in inventory, beginning of period$113,143 $110,516 $109,088 $106,985 
Interest incurred18,034 18,253 35,864 36,564 
Interest expense not qualified for capitalization and included as other expense —  — 
Capitalized interest amortized to home construction and land sales expenses(17,291)(16,083)(31,066)(30,863)
Capitalized interest in inventory, end of period$113,886 $112,686 $113,886 $112,686 












BEAZER HOMES USA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
in thousands (except share and per share data)March 31, 2023September 30, 2022
ASSETS
Cash and cash equivalents$240,829 $214,594 
Restricted cash38,321 37,234 
Accounts receivable (net of allowance of $284 and $284, respectively)
28,461 35,890 
Income tax receivable307 9,606 
Owned inventory1,741,956 1,737,865 
Deferred tax assets, net147,598 156,358 
Property and equipment, net25,540 24,566 
Operating lease right-of-use assets15,101 9,795 
Goodwill11,376 11,376 
Other assets18,607 14,679 
Total assets$2,268,096 $2,251,963 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable$125,240 $143,641 
Operating lease liabilities16,674 11,208 
Other liabilities141,977 174,388 
Total debt (net of debt issuance costs of $6,533 and $7,280, respectively)
985,220 983,440 
Total liabilities1,269,111 1,312,677 
Stockholders’ equity:
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued) — 
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,347,050 issued and outstanding and 30,880,138 issued and outstanding, respectively)
31 31 
Paid-in capital860,517 859,856 
Retained earnings138,437 79,399 
Total stockholders’ equity998,985 939,286 
Total liabilities and stockholders’ equity$2,268,096 $2,251,963 
Inventory Breakdown
Homes under construction$724,193 $785,742 
Land under development774,994 731,190 
Land held for future development19,879 19,879 
Land held for sale20,253 15,674 
Capitalized interest113,886 109,088 
Model homes88,751 76,292 
Total owned inventory$1,741,956 $1,737,865 


 



BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS
Three Months Ended March 31,Six Months Ended March 31,
SELECTED OPERATING DATA2023202220232022
Closings:
West region631 665 1,141 1,268 
East region236 252 391 497 
Southeast region196 161 364 332 
Total closings1,063 1,078 1,896 2,097 
New orders, net of cancellations:
West region631 832 879 1,487 
East region296 284 416 520 
Southeast region254 175 368 425 
Total new orders, net1,181 1,291 1,663 2,432 
As of March 31,
Backlog units:20232022
West region995 1,872 
East region435 634 
Southeast region428 615 
Total backlog units1,858 3,121 
Aggregate dollar value of homes in backlog (in millions)$987.2 $1,583.5 
ASP in backlog (in thousands)$531.3 $507.4 

in thousandsThree Months Ended March 31,Six Months Ended March 31,
SUPPLEMENTAL FINANCIAL DATA2023202220232022
Homebuilding revenue:
West region$328,961 $302,887 $603,283 $559,379 
East region119,869 128,424 205,900 242,711 
Southeast region93,177 75,897 176,908 151,847 
Total homebuilding revenue$542,007 $507,208 $986,091 $953,937 
Revenue:
Homebuilding$542,007 $507,208 $986,091 $953,937 
Land sales and other1,901 1,298 2,745 8,718 
Total revenue$543,908 $508,506 $988,836 $962,655 
Gross profit:
Homebuilding$101,588 $119,402 $186,702 $212,706 
Land sales and other1,308 348 1,962 4,444 
Total gross profit$102,896 $119,750 $188,664 $217,150 




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 March 31,Six Months Ended March 31,
in thousands2023202220232022
Homebuilding gross profit/margin$101,588 18.7 %$119,402 23.5 %$186,702 18.9 %$212,706 22.3 %
Inventory impairments and abandonments (I&A)111 495 301 495 
Homebuilding gross profit/margin excluding I&A101,699 18.8 %119,897 23.6 %187,003 19.0 %213,201 22.3 %
Interest amortized to cost of sales17,291 16,083 31,066 30,863 
Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales$118,990 22.0 %$135,980 26.8 %$218,069 22.1 %$244,064 25.6 %
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 March 31,Six Months Ended March 31,
LTM Ended March 31, (a)
in thousands202320222023202220232022
Net income $34,707 $44,672 $59,038 $79,557 $200,185 $165,053 
Expense from income taxes5,092 10,071 9,225 16,531 45,961 26,246 
Interest amortized to home construction and land sales expenses and capitalized interest impaired17,291 16,083 31,066 30,863 72,261 75,230 
Interest expense not qualified for capitalization —  —  212 
EBIT57,090 70,826 99,329 126,951 318,407 266,741 
Depreciation and amortization3,020 3,031 5,533 5,912 12,981 13,083 
EBITDA60,110 73,857 104,862 132,863 331,388 279,824 
Stock-based compensation expense1,678 2,424 3,258 4,532 7,204 10,639 
Loss on extinguishment of debt 164 515 164 42 1,626 
Inventory impairments and abandonments(b)
111 935 301 935 1,890 1,323 
Severance expenses224 — 335 — 335 — 
Adjusted EBITDA$62,123 $77,380 $109,271 $138,494 $340,859 $293,412 
(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."