BZH Beazer Homes USA Inc New

Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and six months ended March 31, 2013.

"I'm pleased with our solid operational and financial performance this quarter,” said Allan Merrill, CEO of Beazer Homes. “Improvements in closings, average sales price and gross margins enabled us to generate $15 million in adjusted EBITDA, the highest amount for our fiscal second quarter since 2007. With a substantially higher backlog, improving margins and tight control of fixed costs, we expect to report positive net income for our fiscal fourth quarter, which should allow us to be profitable for the second half of fiscal 2013.”

Summary results for the quarter and six months ended March 31, 2013 are as follows (all per share amounts are calculated after giving effect to a 1-for-5 reverse stock split completed on October 11, 2012):

Q2 Results from Continuing Operations (unless otherwise specified)

  Quarter Ended March 31, 2013     2012     Change New Home Orders 1,521 1,512 0.6 % LTM orders per month per community 2.7 2.0 35.0 % Cancellation rates 18.7 % 22.5 % -380 bps   Total Home Closings 1,127 844 33.5 % Average sales price from closings (in thousands) $ 253.3 $ 224.7 12.7 % Homebuilding revenue (in millions) $ 285.5 $ 189.6 50.6 % Homebuilding gross profit margin, excluding impairments and abandonments (I&A) 15.9 % 10.9 % 500 bps Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales 19.1 % 17.5 % 160 bps   Loss from continuing operations before income taxes (in millions) $ (19.5 ) $ (38.7 ) $ 19.2 Benefit from income taxes $ 0.3 $ 0.8 $ (0.5 ) Net loss from continuing operations (in millions) $ (19.1 ) $ (37.9 ) $ 18.8 Basic Per Share $ (0.78 ) $ (2.41 ) $ 1.63 Loss on debt extinguishment (in millions) $ (3.6 ) $ (2.7 ) $ (0.9 ) Inventory impairments (in millions) $ (2.0 ) $ (1.2 ) $ (0.8 )

Net loss from continuing operations excluding inventory impairments and loss ondebt extinguishment (in millions)

$ (13.5 ) $ (34.0 ) $ 20.5 Land and land development spending (in millions) $ 62.6 $ 41.9 $ 20.7 Total Company Adjusted EBITDA (in millions) $ 15.2 $ (1.0 ) $ 16.2    

Six Month Results from Continuing Operations (unless otherwise specified)

  Six Months Ended March 31, 2013     2012     Change New Home Orders 2,453 2,236 9.7 % LTM orders per month per community 2.7 2.0 35.0 % Cancellation rates 21.8 % 27.1 % -530 bps   Total Home Closings 2,165 1,711 26.5 % Average sales price from closings (in thousands) $ 244.8 $ 220.0 11.3 % Homebuilding revenue (in millions) $ 529.9 $ 376.5 40.8 % Homebuilding gross profit margin, excluding impairments and abandonments (I&A) (a) 15.3 % 12.1 % 320 bps Homebuilding gross profit margin, excluding I&A and interest amortized to cost of sales (a) 18.7 % 18.9 % -20 bps   Loss from continuing operations before income taxes (in millions) $ (38.6 ) $ (73.8 ) $ 35.2 Benefit from income taxes $ 0.6 $ 36.6 $ (36.0 ) Net loss from continuing operations (in millions) $ (38.1 ) $ (37.2 ) $ (0.9 ) Basic Per Share $ (1.55 ) $ (2.43 ) $ 0.88 Loss on debt extinguishment (in millions) $ (3.6 ) $ (2.7 ) $ (0.9 ) Inventory impairments (in millions) $ (2.2 ) $ (4.7 ) $ 2.5

Net loss from continuing operations excluding inventory impairments and loss ondebt extinguishment (in millions)

$ (32.3 ) $ (29.8 ) $ (2.5 ) Land and land development spending (in millions) $ 152.6 $ 100.1 $ 52.5 Total Company Adjusted EBITDA (in millions) $ 23.0 $ 2.8 $ 20.2    

(a) This homebuilding gross profit for the six months ended March 31, 2012 includes an $11.0 million warranty recovery which contributed 300 bps to this margin.

As of March 31, 2013

• Total cash and cash equivalents: $672.4 million, including unrestricted cash of approximately $425.7 million
• Stockholders' equity: $233.2 million
• Total backlog from continuing operations: 2,211 homes with a sales value of $584.2 million, compared to 1,975 homes with a sales value of $465.0 million as of March 31, 2012
• Land and lots controlled: 24,693 lots (83.1% owned), a decrease of 3.6% from March 31, 2012

Conference Call

The Company will hold a conference call on May 2, 2013 at 10:00 am ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation over the internet on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-619-8639 (for international callers, dial 312-470-7002). To be admitted to the call, verbally supply the pass code "BZH". A replay of the conference call will be available, until 11:00 PM ET on May 9, 2013, at 800-677-4960 (for international callers, dial 203-369-3932) with pass code “3740.” A replay of the webcast will be available at www.beazer.com for approximately 30 days.

Headquartered in Atlanta, Beazer Homes is one of the country's 10 largest single-family homebuilders. The Company's homes meet or exceed the benchmark for energy-efficient home construction as established by ENERGY STAR® and are designed with flexible floorplan options to meet the personal preferences and lifestyles of its buyers. In addition, the Company is committed to providing a range of preferred lender choices to facilitate transparent competition between lenders and enhanced customer service. The Company offers homes in 16 states, including Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New York Stock Exchange under the ticker symbol “BZH.” For more info visit Beazer.com, or check out Beazer on Facebook 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, (i) economic changes nationally or in local markets, including changes in consumer confidence, changes in the level of housing starts, declines in employment levels, inflation and changes in the demand and prices of new homes and resale homes in the market; (ii) a slower economic rebound than anticipated, coupled with persistently high unemployment and additional foreclosures; (iii) estimates related to homes to be delivered in the future (backlog) are imprecise as they are subject to various cancellation risks which cannot be fully controlled; (iv) a substantial increase in mortgage interest rates, increased disruption in the availability of mortgage financing or a change in tax laws regarding the deductibility of mortgage interest; (v) factors affecting margins such as decreased land values underlying lot option agreements, increased land development costs on communities under development or delays or difficulties in implementing initiatives to reduce production and overhead cost structure; (vi) the final outcome of various putative class action lawsuits, multi-party suits and similar proceedings as well as the results of any other litigation or government proceedings and fulfillment of the obligations in the Deferred Prosecution Agreement and consent orders with governmental authorities and other settlement agreements; (vii) our cost of and ability to access capital and otherwise meet our ongoing liquidity needs including the impact of any downgrades of our credit ratings or reductions in our tangible net worth or liquidity levels; (viii) our ability to comply with covenants in our debt agreements or satisfy such obligations through repayment or refinancing; (ix) estimates related to the potential recoverability of our deferred tax assets; (x) increased competition or delays in reacting to changing consumer preference in home design; (xi) shortages of or increased prices for labor, land or raw materials used in housing production; (xii) additional asset impairment charges or writedowns; (xiii) the impact of construction defect and home warranty claims; (xiv) the cost and availability of insurance and surety bonds; (xv) delays in land development or home construction resulting from adverse weather conditions; (xvi) potential delays or increased costs in obtaining necessary permits and possible penalties for failure to comply with laws, regulations and governmental policies; (xvii) the performance of our joint ventures and our joint venture partners; (xviii) potential exposure related to additional repurchase claims on mortgages and loans originated by Beazer Mortgage Corp.; (xix) effects of changes in accounting policies, standards, guidelines or principles; or (xx) terrorist acts, acts of war and other factors over which the Company has little or no control. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time and it is not possible for management to predict all such factors.

-Tables Follow-

BEAZER HOMES USA, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data)     Three Months Ended Six Months Ended March 31, March 31, 2013     2012 2013     2012 Total revenue $ 287,902 $ 191,643 $ 534,804 $ 380,191 Home construction and land sales expenses 241,992 170,283 452,606 333,059 Inventory impairments and option contract abandonments 2,025   1,170   2,229   4,673   Gross profit 43,885 20,190 79,969 42,459 Commissions 11,686 8,375 22,328 16,746 General and administrative expenses 28,795 26,319 55,123 54,513 Depreciation and amortization 3,093   3,190   5,808   5,593   Operating income (loss) 311 (17,694 ) (3,290 ) (34,393 ) Equity in income (loss) of unconsolidated entities 68 4 104 (73 ) Loss on extinguishment of debt (3,638 ) (2,747 ) (3,638 ) (2,747 ) Other expense, net (16,195 ) (18,265 ) (31,822 ) (36,538 ) Loss from continuing operations before income taxes (19,454 ) (38,702 ) (38,646 ) (73,751 ) Benefit from income taxes (343 ) (836 ) (596 ) (36,583 ) Loss from continuing operations (19,111 ) (37,866 ) (38,050 ) (37,168 ) Loss from discontinued operations, net of tax (529 ) (2,082 ) (1,978 ) (2,041 ) Net loss $ (19,640 ) $ (39,948 ) $ (40,028 ) $ (39,209 ) Weighted average number of shares: Basic 24,654 15,711 24,472 15,269 Diluted 24,654 15,711 24,472 15,269 (Loss) earnings per share: Basic loss per share from continuing operations $ (0.78 ) $ (2.41 ) $ (1.55 ) $ (2.43 ) Basic loss per share from discontinued operations $ (0.02 ) $ (0.13 ) $ (0.09 ) $ (0.14 ) Basic loss per share $ (0.80 ) $ (2.54 ) $ (1.64 ) $ (2.57 ) Diluted loss per share from continuing operations $ (0.78 ) $ (2.41 ) $ (1.55 ) $ (2.43 ) Diluted loss per share from discontinued operations $ (0.02 ) $ (0.13 ) $ (0.09 ) $ (0.14 ) Diluted loss per share $ (0.80 ) $ (2.54 ) $ (1.64 ) $ (2.57 )     Three Months Ended     Six Months Ended March 31,   March 31, 2013     2012 2013     2012 Capitalized interest in inventory, beginning of period $ 41,922 $ 46,510 $ 38,190 $ 45,973 Interest incurred 29,177 32,190 57,595 64,715 Capitalized interest impaired — (25 ) — (53 ) Interest expense not qualified for capitalization and included as other expense (16,246 ) (18,797 ) (32,457 ) (37,914 ) Capitalized interest amortized to house construction and land sales expenses (9,352 ) (12,636 ) (17,827 ) (25,479 ) Capitalized interest in inventory, end of period $ 45,501   $ 47,242   $ 45,501   $ 47,242       BEAZER HOMES USA, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands, except share and per share data)       March 31, 2013 September 30, 2012 ASSETS Cash and cash equivalents $ 425,660 $ 487,795 Restricted cash 246,742 253,260 Accounts receivable (net of allowance of $2,051 and $2,235, respectively) 25,070 24,599 Income tax receivable 2,513 6,372 Inventory Owned inventory 1,143,737 1,099,132 Land not owned under option agreements 8,375   12,420   Total inventory 1,152,112 1,111,552 Investments in unconsolidated entities 41,814 42,078 Deferred tax assets, net 7,000 6,848 Property, plant and equipment, net 16,928 18,974 Other assets 28,871   30,740   Total assets $ 1,946,710   $ 1,982,218     LIABILITIES AND STOCKHOLDERS’ EQUITY Trade accounts payable $ 62,235 $ 69,268 Other liabilities 140,802 147,718 Obligations related to land not owned under option agreements 3,286 4,787 Total debt (net of discounts of $2,440 and $3,082, respectively) 1,507,153   1,498,198   Total liabilities $ 1,713,476   $ 1,719,971     Stockholders’ equity: Preferred stock (par value $.01 per share, 5,000,000 shares authorized, no shares issued) $ — $ — Common stock (par value $0.001 per share, 63,000,000 shares authorized, 25,092,502 and 24,601,830 issued and outstanding, respectively) 25 25 Paid-in capital 845,009 833,994 Accumulated deficit (611,800 ) (571,772 ) Total stockholders’ equity 233,234   262,247   Total liabilities and stockholders’ equity $ 1,946,710   $ 1,982,218     Inventory Breakdown Homes under construction $ 271,882 $ 251,828 Development projects in progress 420,914 391,019 Land held for future development 355,613 367,102 Land held for sale 10,413 10,149 Capitalized interest 45,501 38,190 Model homes 39,414 40,844 Land not owned under option agreements 8,375   12,420   Total inventory $ 1,152,112   $ 1,111,552       BEAZER HOMES USA, INC. CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS ($ in thousands, except otherwise noted)       Quarter Ended March 31, Six Months Ended March 31, SELECTED OPERATING DATA 2013     2012 2013     2012 Closings: West region 504 369 1,003 739 East region 383 292 736 602 Southeast region 240   183   426   370 Total closings 1,127   844   2,165   1,711   New orders, net of cancellations: West region 658 655 1,082 958 East region 442 502 751 751 Southeast region 421   355   620   527 Total new orders 1,521   1,512   2,453   2,236   Backlog units at end of period: West region 918 789 918 789 East region 762 787 762 787 Southeast region 531   399   531   399 Total backlog units 2,211   1,975   2,211   1,975   Dollar value of backlog at end of period (in millions) $ 584.2   $ 465.0   $ 584.2   $ 465.0   Homebuilding Revenue: West region $ 117,496 $ 77,810 $ 227,249 $ 148,064 East region 116,537 74,902 213,001 156,669 Southeast region 51,438   36,905   89,646   71,736 Total homebuilding revenue $ 285,471   $ 189,617   $ 529,896   $ 376,469       Quarter Ended March 31,     Six Months Ended March 31, SUPPLEMENTAL FINANCIAL DATA 2013     2012 2013     2012 Revenues: Homebuilding $ 285,471 $ 189,617 $ 529,896 $ 376,469 Land sales and other 2,431   2,026   4,908   3,722 Total $ 287,902   $ 191,643   $ 534,804   $ 380,191   Gross profit: Homebuilding $ 43,253 $ 19,467 $ 78,883 $ 40,819 Land sales and other 632   723   1,086   1,640 Total $ 43,885   $ 20,190   $ 79,969   $ 42,459    

Reconciliation of homebuilding gross profit before impairments and abandonments and interest amortized to cost of sales and the related gross margins 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. Homebuilding gross profit for the six months ended March 31, 2012 included an $11.0 million warranty recovery which added 300 basis points to homebuilding gross profit before impairments and abandonments and interest amortized to cost of sales.

  Quarter Ended March 31,     Six Months Ended March 31, 2013     2012 2013     2012 Homebuilding gross profit $ 43,253     15.2 % $ 19,467     10.3 % $ 78,883     14.9 % $ 40,819   10.8 % Inventory impairments and lot option abandonments (I&A) 2,025   1,170   2,229   4,673   Homebuilding gross profit before I&A 45,278 15.9 % 20,637 10.9 % 81,112 15.3 % 45,492 12.1 % Interest amortized to cost of sales 9,352   12,636   17,827   25,479   Homebuilding gross profit before I&A and interest amortized to cost of sales $ 54,630   19.1 % $ 33,273   17.5 % $ 98,939   18.7 % $ 70,971   18.9 %    

Reconciliation of Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, debt extinguishment, impairments and abandonments) to total company net loss (including discontinued operations), 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.

  Quarter Ended March 31,   Six Months Ended March 31, 2013   2012 2013   2012 Net loss $ (19,640 ) $ (39,948 ) $ (40,028 ) $ (39,209 ) Benefit from income taxes (352 ) (850 ) (627 ) (36,996 ) Interest amortized to home construction and land sales expenses, capitalized interest impaired, and interest expense not qualified for capitalization 25,598 31,458 50,284 63,446 Depreciation and amortization and stock compensation amortization 3,947 4,423 7,446 8,126 Inventory impairments and option contract abandonments 2,025 1,147 2,246 4,654 Loss on debt extinguishment 3,638 2,747 3,638 2,747 Joint venture impairment and abandonment charges —   7   —   36   Adjusted EBITDA $ 15,216   $ (1,016 ) $ 22,959   $ 2,804