Beazer Homes Announces Preliminary Operating Results
April 06 2020 - 4:30PM
Business Wire
Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) (the “Company”) today reported
selected preliminary results for the second quarter of fiscal 2020.
These results are preliminary and unaudited and are being provided
in light of current volatility and the impact of the COVID-19
pandemic.
Beazer Homes Fiscal Second Quarter 2020
Highlights and Comparison to Fiscal Second Quarter 2019
(preliminary and unaudited)
- Net new orders of 1,661 vs. 1,598, up 3.9%
- Closings of 1,277 vs. 1,134, up 12.6%
- Ending backlog units of 2,231 vs. 1,989, up 12.2%
Beazer Homes March 2020 Highlights and
Comparison to March 2019 (preliminary and unaudited)
- Net new orders of 405 vs. 545, down 25.7%
- Cancellations as a percentage of gross new orders of 25.1% vs.
15.2%
- Cancellations as a percentage of homes in beginning backlog of
5.6% vs. 4.8%
- Closings of 589 vs. 592, down 0.5%
Beazer Homes March 31, 2020 Financial
Position Highlights (preliminary and unaudited)
- Total liquidity of $294 million including a fully drawn $250
million revolving credit facility. This compares to total liquidity
of $221 million at March 31, 2019, including cash of $86 million
and undrawn revolving credit facility capacity of $135
million.
- No senior note maturities until 2025. Current maturities are
limited to a $50 million amortizing term loan payment due in
September 2020.
Despite an increasingly challenging business environment as a
result of the COVID-19 pandemic, especially in the final weeks of
March, we generated strong fiscal second quarter results and ended
the quarter with substantially more liquidity than in the same
period in the prior year.
We are actively taking steps to navigate through this
extraordinary period by placing our highest priority on ensuring
the safety and health of our employees, customers, and trade
partners. We are also taking steps to maximize liquidity by
limiting cash expenditures, including temporarily reducing or
deferring land acquisition and development spending.
At the current time, the government is allowing construction and
sales of homes in the markets in which we operate. In response to
the pandemic, our sales teams have shifted to an appointment-only
home sales process and are leveraging virtual sales tools to
connect with our customers online. However, customer traffic and
sales have slowed significantly, and due to uncertainty surrounding
this ongoing public health crisis and its continued impact on the
U.S. economy, we cannot predict either the near-term or long-term
effects that the pandemic will have on our business.
We have scheduled the release of our financial results for the
quarter ended March 31, 2020 on Thursday, April 30, 2020 after the
close of the market. Management will host a conference call on the
same day at 5:00 PM ET to discuss the results and we will provide
further updates on the impact of the pandemic on our operations at
that time.
Forward Looking Statements
This press release contains forward-looking statements. These
forward-looking statements represent our expectations or beliefs
concerning future events, which 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. Included in these
risks, among other things, are the negative impact of the COVID-19
pandemic, which could include, among other things, 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; a significant reduction in our
access to additional capital to support and sustain our liquidity
needs during this period in which we may be unable to sell and
build homes (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); an increase in the cost
of, or decrease in the availability of, the supply of building
materials or the availability of subcontractors, housing
inspectors, and other third-parties we rely on to support our
operations; and a recognition of charges in future periods, which
may be material, for inventory impairments or land option contract
abandonments, or both. Furthermore, because the full magnitude and
duration of COVID-19 is uncertain, estimating the future
performance of our business and developing strategies upon which to
execute during this period is extremely challenging. COVID-19 also
has resulted in significant volatility in financial markets and a
sharp decrease in the value of equity and debt securities,
including our common stock and outstanding notes and, because we
can provide no assurance as to whether public health efforts
relating to COVID-19 will be intensified to such an extent that we
will not be able to conduct any business operations in our markets
at all or for an indefinite period, we can provide no assurance
that the value of our outstanding securities will regain their
former levels. We recommend you consider these risks as well as
those risks described in our Annual Report on Form 10-K for the
year ended September 30, 2019 and Current Report on Form 8-K filed
on April 6, 2020.
Any forward-looking statement contained in this press release,
including any statement expressing confidence regarding future
outcomes, speaks only as of the date of this press release and,
except as required by law, we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date hereof 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.
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. 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 Homes on
Facebook, Instagram and Twitter.
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version on businesswire.com: https://www.businesswire.com/news/home/20200406005762/en/
David I. Goldberg Vice President of Treasury and Investor
Relations 770-829-3700 investor.relations@beazer.com
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