Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Beazer Homes Reports Strong Fourth Quarter and Full Fiscal 2021 Results


Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2021.

"We had a very successful fiscal year, driven by strong operational execution and continued strength in the housing market," said Allan P. Merrill, the Company's Chairman and Chief Executive Officer. "We generated significant gains in operating margin and adjusted EBITDA, leading to full year net income that was more than double the prior year. We also significantly grew our total active lot position and reduced leverage."

Commenting on market conditions and fiscal 2022 full-year expectations, Mr. Merrill said, "The new home market continues to be characterized by strong demand and limited supply, supported by growth in both employment and household income. While affordability and supply chain challenges are expected to persist, we believe our strong backlog and operational momentum will allow us to generate earnings per share above $5.00. We also expect further growth in our active lot position and to achieve our multi-year goal of reducing total debt below $1 billion."

Looking further out, Mr. Merrill concluded, "We believe we are positioned to continue growing book value and return on capital while expanding our ESG activities to create durable value for all of our stakeholders."

Beazer Homes Fiscal 2021 Highlights and Comparison to Fiscal 2020

Beazer Homes Fiscal Fourth Quarter 2021 Highlights and Comparison to Fiscal Fourth Quarter 2020

The following provides additional details on the Company's performance during the fiscal fourth quarter 2021:

Profitability. Net income from continuing operations was $48.4 million, generating diluted earnings per share of $1.57. This included the impact of energy efficiency tax credits of $12.0 million, a loss on debt extinguishment of $0.4 million and inventory abandonments of $0.2 million. Operating income of $46.9 million increased by $11.3 million, or 31.7%, compared to $35.6 million in the previous year primarily driven by increased homebuilding gross margin and improved SG&A leverage. Fourth quarter Adjusted EBITDA of $76.1 million was down $1.0 million compared to the same period last year, primarily driven by lower home closings, partially offset by an increase in homebuilding gross margin.

Orders. Net new orders for the fourth quarter decreased to 1,069, down 46.8% from the prior year. The decrease in net new orders was driven by a 21.6% decrease in average community count to 119 and a 32.1% decrease in sales pace to 3.0 orders per community per month, down from 4.4 in the previous year which was the highest fourth quarter level in more than a decade. The reduction in sales pace is partially driven by our actions to moderate sales to better align with our production capacity given ongoing supply chain and labor pressures. The cancellation rate for the quarter was 11.7%, down 50 basis points from the previous year.

Backlog. The dollar value of homes in backlog as of September 30, 2021 increased 29.0% to $1,284.0 million, or 2,786 homes, compared to $995.3 million, or 2,509 homes, at the same time last year. The average selling price of homes in backlog was $460.9 thousand, up 16.2% year-over-year.

Homebuilding Revenue. Fourth quarter homebuilding revenue was $589.1 million, down 13.2% year-over-year. The decline in homebuilding revenue was primarily driven by a 19.0% decrease in home closings to 1,407 homes as a result of longer construction cycle times due to supply chain disruptions.

Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments, and amortized interest) was 23.2% for the fourth quarter, up 150 basis points year-over-year, driven primarily by pricing increases and lower sales incentives.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.0% for the quarter, down 10 basis points year-over-year. SG&A on an absolute dollar basis was down 14.5%.

Land Position. Controlled lots increased 23.3% to 21,987, compared to 17,830 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots was 21,422, up 26.7% year-over-year. Through the expansion of lot option agreements, 46.6% of total active lots, or 9,992 lots, were under contract compared to 34.8% of total active lots, or 5,878 lots, as of September 30, 2020.

Liquidity. At the close of the fourth quarter, the Company had $496.7 million of available liquidity, including $246.7 million of unrestricted cash and a fully undrawn revolving credit facility capacity of $250.0 million.

Debt Repurchases. During the quarter, the Company reduced debt by $57.0 million, which consisted of a $50.0 million repayment of its Senior Unsecured Term Loan and $7.0 million of repurchases of the Company's 5.875% Unsecured Senior Notes due October 2027 at an average price of $104.96 per $100 principal amount.

Commitment to Energy Efficiency

In December 2020, Beazer became the first national builder to publicly commit to ensuring that by the end of 2025 every home the Company builds will be Net Zero Energy Ready. Net Zero Energy Ready means that each home will have a gross HERS® index score (before any benefit of renewable energy production) of 45 or less, and homeowners will be able to achieve net zero energy consumption by attaching a properly sized renewable energy system.

Summary results for the fiscal year ended September 30, 2021 and 2020 are as follows:

 

Year Ended September 30,

 

2021

 

2020

 

Change*

New home orders, net of cancellations

 

5,564

 

 

 

6,293

 

 

 

(11.6

)%

Orders per community per month

 

3.7

 

 

 

3.2

 

 

 

13.8

%

Average active community count

 

127

 

 

 

163

 

 

 

(22.3

)%

Cancellation rates

 

11.1

%

 

 

15.8

%

 

-470 bps

 

 

 

 

 

 

Total home closings

 

5,287

 

 

 

5,492

 

 

 

(3.7

)%

Average selling price (ASP) from closings (in thousands)

$

402.4

 

 

$

385.5

 

 

 

4.4

%

Homebuilding revenue (in millions)

$

2,127.7

 

 

$

2,116.9

 

 

 

0.5

%

Homebuilding gross margin

 

18.9

%

 

 

16.4

%

 

250 bps

Homebuilding gross margin, excluding impairments and abandonments (I&A)

 

18.9

%

 

 

16.5

%

 

240 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales

 

23.0

%

 

 

21.0

%

 

200 bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

143.7

 

 

$

71.3

 

 

$

72.4

 

Expense from income taxes (in millions)

$

21.5

 

 

$

18.0

 

 

$

3.6

 

Income from continuing operations (in millions)

$

122.2

 

 

$

53.3

 

 

$

68.9

 

Basic income per share from continuing operations

$

4.08

 

 

$

1.80

 

 

$

2.28

 

Diluted income per share from continuing operations

$

4.01

 

 

$

1.78

 

 

$

2.23

 

 

 

 

 

 

 

Net income (in millions)

$

122.0

 

 

$

52.2

 

 

$

69.8

 

 

 

 

 

 

 

Land acquisition and land development spending (in millions)

$

595.5

 

 

$

440.8

 

 

$

154.7

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

262.7

 

 

$

204.4

 

 

$

58.3

 

* Change is calculated using unrounded numbers.

Summary results for the quarter ended September 30, 2021 and 2020 are as follows:

Quarter Ended September 30,

 

2021

 

2020

 

Change*

New home orders, net of cancellations

 

1,069

 

 

 

2,009

 

 

 

(46.8

)%

Orders per community per month

 

3.0

 

 

 

4.4

 

 

 

(32.1

)%

Average active community count

 

119

 

 

 

151

 

 

 

(21.6

)%

Actual community count at quarter-end

 

117

 

 

 

145

 

 

 

(19.3

)%

Cancellation rates

 

11.7

%

 

 

12.2

%

 

-50 bps

 

 

 

 

 

 

Total home closings

 

1,407

 

 

 

1,737

 

 

 

(19.0

)%

ASP from closings (in thousands)

$

418.7

 

 

$

390.9

 

 

 

7.1

%

Homebuilding revenue (in millions)

$

589.1

 

 

$

679.1

 

 

 

(13.2

)%

Homebuilding gross margin

 

19.5

%

 

 

17.1

%

 

 

240 bps

Homebuilding gross margin, excluding I&A

 

19.5

%

 

 

17.2

%

 

 

230 bps

Homebuilding gross margin, excluding I&A and interest amortized to cost of sales

 

23.2

%

 

 

21.7

%

 

 

150 bps

 

 

 

 

 

 

Income from continuing operations before income taxes (in millions)

$

47.3

 

 

$

33.7

 

 

$

13.6

 

(Benefit) expense from income taxes (in millions)

$

(1.1

)

 

$

9.0

 

 

$

(10.1

)

Income from continuing operations (in millions)

$

48.4

 

 

$

24.6

 

 

$

23.7

 

Basic income per share from continuing operations

$

1.61

 

 

$

0.83

 

 

$

0.78

 

Diluted income per share from continuing operations

$

1.57

 

 

$

0.82

 

 

$

0.75

 

 

 

 

 

 

 

Net income (in millions)

$

48.4

 

 

$

23.7

 

 

$

24.7

 

 

 

 

 

 

 

Land acquisition and land development spending (in millions)

$

245.5

 

 

$

116.1

 

 

$

129.5

 

 

 

 

 

 

 

Adjusted EBITDA (in millions)

$

76.1

 

 

$

77.1

 

 

$

(1.0

)

* Change is calculated using unrounded numbers.

 

As of September 30,

 

2021

2020

 

Change

Backlog units

 

2,786

 

 

 

2,509

 

 

 

11.0

%

Dollar value of backlog (in millions)

$

1,284.0

 

 

$

995.3

 

 

 

29.0

%

ASP in backlog (in thousands)

$

460.9

 

 

$

396.7

 

 

 

16.2

%

Land position and lots controlled

 

21,987

 

 

 

17,830

 

 

 

23.3

%

Conference Call

The Company will hold a conference call on November 10, 2021 at 5:00 p.m. ET to discuss these results. The public may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website at www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the passcode "8571348." A replay of the conference call will be available, until 10:00 PM ET on November 17, 2021 at 866-359-6498 (for international callers, dial 203-369-0155) 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 Planstm, 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 Facebook, Instagram 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) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (ii) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation and governmental actions, each of which is outside our control and affects the affordability of, and demand for, the homes we sell; (iii) 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 contract abandonments; (iv) supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances; (v) shortages of or increased costs for labor used in housing production, and the level of quality and craftsmanship provided by such labor; (vi) 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; (vii) factors affecting margins, such as 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 production and overhead cost structure; (viii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, 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; (ix) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (x) terrorist acts, protests and civil unrest, political uncertainty, natural disasters, acts of war or other factors over which the Company has no control; (xi) 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; (xii) increases in mortgage interest rates, increased disruption in the availability of mortgage financing, changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes or an increased number of foreclosures; (xiii) increased competition or delays in reacting to changing consumer preferences in home design; (xiv) 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; (xv) the potential recoverability of our deferred tax assets; (xvi) increases in corporate tax rates; (xvii) 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; (xviii) the results of litigation or government proceedings and fulfillment of any related obligations; (xix) the impact of construction defect and home warranty claims; (xx) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xxi) the impact of information technology failures, cybersecurity issues or data security breaches; (xxii) the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water; and (xxiii) the success of our ESG initiatives, including our ability to meet our goal that every home we build will be Net Zero Energy Ready by 2025 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.

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-

BEAZER HOMES USA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

Three Months Ended

 

Fiscal Year Ended

 

September 30,

 

September 30,

in thousands (except per share data)

2021

 

2020

 

2021

 

2020

Total revenue

$

590,943

 

 

$

686,748

 

 

$

2,140,303

 

 

$

2,127,077

 

Home construction and land sales expenses

 

475,273

 

 

 

569,511

 

 

 

1,735,195

 

 

 

1,776,534

 

Inventory impairments and abandonments

 

157

 

 

 

637

 

 

 

853

 

 

 

2,903

 

Gross profit

 

115,513

 

 

 

116,600

 

 

 

404,255

 

 

 

347,640

 

Commissions

 

21,779

 

 

 

26,847

 

 

 

80,125

 

 

 

82,507

 

General and administrative expenses

 

43,382

 

 

 

49,361

 

 

 

163,285

 

 

 

170,386

 

Depreciation and amortization

 

3,482

 

 

 

4,806

 

 

 

13,976

 

 

 

15,640

 

Operating income

 

46,870

 

 

 

35,586

 

 

 

146,869

 

 

 

79,107

 

Equity in income of unconsolidated entities

 

170

 

 

 

209

 

 

 

594

 

 

 

347

 

Loss on extinguishment of debt, net

 

(412

)

 

 

?

 

 

 

(2,025

)

 

 

?

 

Other income (expense), net

 

644

 

 

 

(2,135

)

 

 

(1,712

)

 

 

(8,165

)

Income from continuing operations before income taxes

 

47,272

 

 

 

33,660

 

 

 

143,726

 

 

 

71,289

 

(Benefit) expense from income taxes

 

(1,087

)

 

 

9,033

 

 

 

21,546

 

 

 

17,973

 

Income from continuing operations

 

48,359

 

 

 

24,627

 

 

 

122,180

 

 

 

53,316

 

Income (loss) from discontinued operations, net of tax

 

2

 

 

 

(949

)

 

 

(159

)

 

 

(1,090

)

Net income

$

48,361

 

 

$

23,678

 

 

$

122,021

 

 

$

52,226

 

Weighted-average number of shares:

 

 

 

 

 

 

 

Basic

 

30,069

 

 

 

29,603

 

 

 

29,954

 

 

 

29,704

 

Diluted

 

30,867

 

 

 

30,005

 

 

 

30,437

 

 

 

29,948

 

Basic income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

1.61

 

 

$

0.83

 

 

$

4.08

 

 

$

1.80

 

Discontinued operations

 

?

 

 

 

(0.03

)

 

 

(0.01

)

 

 

(0.04

)

Total

$

1.61

 

 

$

0.80

 

 

$

4.07

 

 

$

1.76

 

Diluted income (loss) per share:

 

 

 

 

 

 

 

Continuing operations

$

1.57

 

 

$

0.82

 

 

$

4.01

 

 

$

1.78

 

Discontinued operations

 

?

 

 

 

(0.03

)

 

 

?

 

 

 

(0.04

)

Total

$

1.57

 

 

$

0.79

 

 

$

4.01

 

 

$

1.74

 

 

 

 

 

Three Months Ended

 

Fiscal Year Ended

 

September 30,

 

September 30,

Capitalized Interest in Inventory

2021

 

2020

 

2021

 

2020

Capitalized interest in inventory, beginning of period

$

109,943

 

 

$

132,096

 

 

$

119,659

 

 

$

136,565

 

Interest incurred

 

18,880

 

 

 

20,385

 

 

 

77,397

 

 

 

87,224

 

Capitalized interest impaired

 

?

 

 

 

?

 

 

 

?

 

 

 

(792

)

Interest expense not qualified for capitalization and included as other expense

 

?

 

 

 

(2,095

)

 

 

(2,781

)

 

 

(8,468

)

Capitalized interest amortized to home construction and land sales expenses

 

(21,838

)

 

 

(30,727

)

 

 

(87,290

)

 

 

(94,870

)

Capitalized interest in inventory, end of period

$

106,985

 

 

$

119,659

 

 

$

106,985

 

 

$

119,659

BEAZER HOMES USA, INC.

CONSOLIDATED BALANCE SHEETS

 

in thousands (except share and per share data)

September 30, 2021

 

September 30, 2020

ASSETS

 

 

 

Cash and cash equivalents

$

246,715

 

 

$

327,693

 

Restricted cash

 

27,428

 

 

 

14,835

 

Accounts receivable (net of allowance of $290 and $358, respectively)

 

25,685

 

 

 

19,817

 

Income tax receivable

 

9,929

 

 

 

9,252

 

Owned inventory

 

1,501,602

 

 

 

1,350,738

 

Investments in unconsolidated entities

 

4,464

 

 

 

4,003

 

Deferred tax assets, net

 

204,766

 

 

 

225,143

 

Property and equipment, net

 

22,885

 

 

 

22,280

 

Operating lease right-of-use assets

 

12,344

 

 

 

13,103

 

Goodwill

 

11,376

 

 

 

11,376

 

Other assets

 

11,616

 

 

 

9,240

 

Total assets

$

2,078,810

 

 

$

2,007,480

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Trade accounts payable

$

133,391

 

 

$

132,192

 

Operating lease liabilities

 

14,154

 

 

 

15,333

 

Other liabilities

 

152,351

 

 

 

135,983

 

Total debt (net of debt issuance costs of $8,983 and $10,891, respectively)

 

1,054,030

 

 

 

1,130,801

 

Total liabilities

 

1,353,926

 

 

 

1,414,309

 

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, 31,294,198 issued and outstanding and 31,012,326 issued and outstanding, respectively)

 

31

 

 

 

31

 

Paid-in capital

 

866,158

 

 

 

856,466

 

Accumulated deficit

 

(141,305

)

 

 

(263,326

)

Total stockholders' equity

 

724,884

 

 

 

593,171

 

Total liabilities and stockholders' equity

$

2,078,810

 

 

$

2,007,480

 

 

 

 

 

Inventory Breakdown

 

 

 

Homes under construction

$

648,283

 

 

$

525,021

 

Land under development

 

648,404

 

 

 

589,763

 

Land held for future development

 

19,879

 

 

 

28,531

 

Land held for sale

 

9,179

 

 

 

12,622

 

Capitalized interest

 

106,985

 

 

 

119,659

 

Model homes

 

68,872

 

 

 

75,142

 

Total owned inventory

$

1,501,602

 

 

$

1,350,738

 

BEAZER HOMES USA, INC.

CONSOLIDATED OPERATING AND FINANCIAL DATA ? CONTINUING OPERATIONS

 

 

Quarter Ended September 30,

 

Fiscal Year Ended September 30,

SELECTED OPERATING DATA

2021

 

2020

 

2021

 

2020

Closings:

 

 

 

 

 

 

 

West region

 

781

 

 

958

 

 

2,945

 

 

3,206

 

East region

 

311

 

 

398

 

 

1,185

 

 

1,045

 

Southeast region

 

315

 

 

381

 

 

1,157

 

 

1,241

 

Total closings

 

1,407

 

 

1,737

 

 

5,287

 

 

5,492

 

 

 

 

 

 

 

 

 

New orders, net of cancellations:

 

 

 

 

 

 

 

West region

 

620

 

 

1,124

 

 

3,233

 

 

3,589

 

East region

 

232

 

 

457

 

 

1,172

 

 

1,328

 

Southeast region

 

217

 

 

428

 

 

1,159

 

 

1,376

 

Total new orders, net

 

1,069

 

 

2,009

 

 

5,564

 

 

6,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year Ended September 30,

Backlog units at end of period:

 

 

 

 

2021

 

2020

West region

 

 

 

 

 

1,653

 

 

1,365

 

East region

 

 

 

 

 

611

 

 

624

 

Southeast region

 

 

 

 

 

522

 

 

520

 

Total backlog units

 

 

 

 

 

2,786

 

 

2,509

 

Dollar value of backlog at end of period (in millions)

 

 

 

 

$

1,284.0

 

$

995.3

 

 

 

Quarter Ended September 30,

 

Fiscal Year Ended September 30,

SUPPLEMENTAL FINANCIAL DATA

2021

 

2020

 

2021

 

2020

Homebuilding revenue:

 

 

 

 

 

 

 

West region

$

304,591

 

$

355,448

 

$

1,110,208

 

$

1,180,577

 

East region

 

155,639

 

 

180,385

 

 

565,989

 

 

476,167

 

Southeast region

 

128,894

 

 

143,227

 

 

451,503

 

 

460,166

 

Total homebuilding revenue

$

589,124

 

$

679,060

 

$

2,127,700

 

$

2,116,910

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Homebuilding

$

589,124

 

$

679,060

 

$

2,127,700

 

$

2,116,910

 

Land sales and other

 

1,819

 

 

7,688

 

 

12,603

 

 

10,167

 

Total revenues

$

590,943

 

$

686,748

 

$

2,140,303

 

$

2,127,077

 

 

 

 

 

 

 

 

 

Gross profit:

 

 

 

 

 

 

 

Homebuilding

$

114,717

 

$

115,976

 

$

401,720

 

$

348,110

 

Land sales and other

 

796

 

 

624

 

 

2,535

 

 

(470

)

Total gross profit

$

115,513

 

$

116,600

 

$

404,255

 

$

347,640

 

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 alternatives to homebuilding gross profit and gross margin determined in accordance with GAAP as an indicator of operating performance.

 

Quarter Ended September 30,

 

Fiscal Year Ended September 30,

 

2021

 

2020

 

2021

 

2020

Homebuilding gross profit/margin

$

114,717

 

19.5

%

 

$

115,976

 

17.1

%

 

$

401,720

 

18.9

%

 

$

348,110

 

16.4

%

Inventory impairments and abandonments (I&A)

 

157

 

 

 

 

637

 

 

 

 

853

 

 

 

 

1,646

 

 

Homebuilding gross profit/margin excluding I&A

 

114,874

 

19.5

%

 

 

116,613

 

17.2

%

 

 

402,573

 

18.9

%

 

 

349,756

 

16.5

%

Interest amortized to cost of sales

 

21,838

 

 

 

 

30,701

 

 

 

 

87,037

 

 

 

 

94,844

 

 

Homebuilding gross profit/margin excluding I&A and interest amortized to cost of sales

$

136,712

 

23.2

%

 

$

147,314

 

21.7

%

 

$

489,610

 

23.0

%

 

$

444,600

 

21.0

%

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.

 

Quarter Ended September 30,

 

Fiscal Year Ended September 30,

 

2021

 

2020

 

2021

 

2020

Net income

$

48,361

 

 

$

23,678

 

 

$

122,021

 

 

$

52,226

(Benefit) expense from income taxes

 

(1,086

)

 

 

8,764

 

 

 

21,501

 

 

 

17,664

Interest amortized to home construction and land sales expenses and capitalized interest impaired

 

21,838

 

 

 

30,727

 

 

 

87,290

 

 

 

95,662

Interest expense not qualified for capitalization

 

?

 

 

 

2,095

 

 

 

2,781

 

 

 

8,468

EBIT

 

69,113

 

 

 

65,264

 

 

 

233,593

 

 

 

174,020

Depreciation and amortization

 

3,482

 

 

 

4,806

 

 

 

13,976

 

 

 

15,640

EBITDA

 

72,595

 

 

 

70,070

 

 

 

247,569

 

 

 

189,660

Stock-based compensation expense

 

2,913

 

 

 

5,167

 

 

 

12,167

 

 

 

10,036

Loss on extinguishment of debt

 

412

 

 

 

?

 

 

 

2,025

 

 

 

?

Inventory impairments and abandonments (a)

 

157

 

 

 

637

 

 

 

853

 

 

 

2,111

Restructuring and severance expenses

 

?

 

 

 

(44

)

 

 

(10

)

 

 

1,317

Litigation settlement in discontinued operations

 

?

 

 

 

1,260

 

 

 

120

 

 

 

1,260

Adjusted EBITDA

$

76,077

 

 

$

77,090

 

 

$

262,724

 

 

$

204,384

(a)

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."

 


These press releases may also interest you

at 04:55
Eros Media World Plc ("Eros", the "Company") today announced that the New York Stock Exchange (the "NYSE") has granted the Company an extension through August 1, 2022, subject to reassessment on an ongoing basis, to complete and file with the...

28 mai 2022
The Canadian Association of Journalists (CAJ) is pleased to announce the recipients of the 2021 CAJ Awards for outstanding investigative journalism....

28 mai 2022
Blender Bites Ltd. (the "Company", "Blender Bites" or "Blender"), , a Canadian company involved in the development and marketing of a line of premium, organic and plant-based pre-portioned frozen functional foods, is pleased to announce that the...

28 mai 2022
Today, the Greater Toronto Airports Authority (GTAA) held its first in-person security exercise since the pandemic began. The...

28 mai 2022
After two years, Le Bal Rouge was back with a vengeance. This year's fiery edition raised funds in support of MI4, the McGill Interdisciplinary Initiative in Infection and Immunity. The glamourous event, attended by 520 guests and held on Friday, May...

28 mai 2022
The Network Equipment market size is expected to grow by USD 29.77 Billion by 2026, at a Compound Annual Growth Rate (CAGR) of 7.58% during the forecast period. To know more about this market....



News published on 10 november 2021 at 16:25 and distributed by: