Beazer Homes Updates Fiscal Fourth Quarter Guidance Following Recent Weather Events
September 13 2017 - 4:30PM
Business Wire
In advance of upcoming investor meetings, Beazer Homes USA, Inc.
(NYSE: BZH) (www.beazer.com) is providing additional information
for its fourth quarter of Fiscal 2017.
“In responding to severe weather, our highest priority is to
ensure the safety of our employees, their families, our partners
and our customers,” said Allan Merrill, President and CEO of Beazer
Homes. “In the case of both Hurricane Harvey and Hurricane Irma, we
took aggressive precautionary steps, including closing sales
centers, securing our construction sites and evacuating personnel.
I’m happy to report that despite the devastation wrought by these
storms, all members of our teams in the affected areas are safe and
on the road to recovery. Importantly, our customers also fared
well. In Houston, only four homes located within a single community
experienced water intrusion from flooding. As it relates to Irma,
across the five impacted Divisions, we have fewer than 10 homes
with unusual storm-related damage.
“Relative to the recent storms' impact on operations, for our
fourth quarter ending September 30, 2017, we continue to expect an
improvement in Adjusted EBITDA versus the prior year, although new
home sales and closings may be lower than the same period last
year. The storm-related impacts on new home sales and closings are
the result of temporary conditions and do not diminish our
confidence in substantial profitability gains in Fiscal 2018.”
Mr. Merrill continued, “I’m incredibly proud of the way our
employees have responded to the unprecedented damage caused by
these storms. As a Company, we’ve committed to donating up to
$500,000 to employee and community relief efforts. The funds for
these donations will come from the Company, our Board members and
our employees.”
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 Choice Plans 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 Arizona, California, Delaware, Florida, Georgia, Indiana,
Maryland, Nevada, North Carolina, 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,
including our expectations regarding fourth quarter results and
Fiscal 2018 results in light of the recent storms’ impact on
operations. 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. We are
still in the initial stages of evaluating the impact of the storms
on our business and our customers. Factors beyond our control could
affect our new home sales and closings during the remainder of
Fiscal 2017 and into Fiscal 2018. Risks also include various
factors that could impact our business, including, among other
things: (i) economic changes nationally or in local markets,
changes in consumer confidence, declines in employment levels,
inflation or increases in the quantity and decreases in the price
of new homes and resale homes on the market; (ii) the cyclical
nature of the homebuilding industry and a potential deterioration
in homebuilding industry conditions; (iii) factors affecting
margins, such as decreased land values underlying land option
agreements, increased land development costs on communities under
development or delays or difficulties in implementing initiatives
to reduce our production and overhead cost structure; (iv) the
availability and cost of land and the risks associated with the
future value of our inventory, such as additional asset impairment
charges or writedowns; (v) 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;
(vi) estimates related to homes to be delivered in the future
(backlog) are imprecise, as they are subject to various
cancellation risks that cannot be fully controlled; (vii) a
substantial increase in mortgage interest rates, increased
disruption in the availability of mortgage financing, a change in
tax laws regarding the deductibility of mortgage interest for tax
purposes or an increased number of foreclosures; (viii) our cost of
and ability to access capital, due to factors such as limitations
in the capital markets or adverse credit market conditions, 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; (ix) our ability to reduce our
outstanding indebtedness and to comply with covenants in our debt
agreements or satisfy such obligations through repayment or
refinancing; (x) increased competition or delays in reacting to
changing consumer preferences in home design; (xi) continuing
severe weather conditions 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; (xii) estimates
related to the potential recoverability of our deferred tax assets,
and a potential reduction in corporate tax rates that could reduce
the usefulness of our existing deferred tax assets; (xiii)
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; (xiv) the results of litigation
or government proceedings and fulfillment of any related
obligations; (xv) the impact of construction defect and home
warranty claims, including water intrusion issues in Florida; (xvi)
the cost and availability of insurance and surety bonds, as well as
the sufficiency of these instruments to cover potential losses
incurred; (xvii) the performance of our unconsolidated entities and
our unconsolidated entity partners; (xviii) the impact of
information technology failures or data security breaches; (xix)
terrorist acts, natural disasters, acts of war or other factors
over which the Company has little or no control; or (xx) the impact
on homebuilding in key markets of governmental regulations limiting
the availability of water. Any forward-looking statement 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 for management to predict all
such factors.
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version on businesswire.com: http://www.businesswire.com/news/home/20170913006405/en/
Beazer Homes USA, Inc.David Goldberg, 770-829-3700Vice
President, Treasurer and Investor
Relationsinvestor.relations@beazer.com
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