Posts profit of $7.1 million for fiscal third quarter.
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Beazer Homes USA, Inc., Atlanta (NYSE: BZH) after market close Tuesday reported net income of $7.1 million, or 22 cents a share, for its fiscal third quarter ended June 30, up $1.3 million versus the same period last year. Analysts were expecting a gain of 18 cents per share.
Shares of Beazer closed up 2.6% at $13.61 and added another 2% to $13.89 in after hours trading Tuesday.
Beazer Homes Fiscal Third Quarter 2017 Highlights and Comparison to Fiscal Third Quarter 2016:
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Adjusted EBITDA was $44.3 million. This was up $6.0 million, excluding the benefit from insurance recoveries in the prior year
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Homebuilding revenue was $472.4 million, higher by 4.7% due to a 1.7% increase in home closings and a 3.0% increase in average selling price
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Homebuilding gross margin, excluding interest, impairments and abandonments and additional insurance recoveries in the prior year, was 21.3%, up 60 basis points. The improvement was driven by higher margins on spec home closings and lower than anticipated warranty costs
Other Operational Highlights:
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Sales per community per month of 3.4, up 14.2%
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New home orders, net of 1,595, up 7.0%
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Dollar value of homes in backlog of $859.9 million, up 5.6%, driven by an increase in the average selling price of homes in backlog of $351.8 thousand, up $16 thousand
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Selling, general and administrative expenses (SG&A) as a percentage of total revenue was 12.4%, an improvement of 20 basis points
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Land and land development spending of $103.8 million, up 43.1%
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Total available liquidity at quarter end of $308.5 million, including $168.4 million of unrestricted cash and $140.1 million available on the Company’s revolving credit facility
During the third quarter, the Company started vertical construction at its first Orlando Gatherings community in the Lake Nona master-planned development, which will ultimately provide more than 200 homes. Further, two additional sites, representing more than 130 future sales, were approved for purchase in Dallas and Virginia. So far this fiscal year, the Company has approved four new communities representing nearly 300 future sales and is currently reviewing a pipeline of potential communities that exceeds 2,000 homes.
“We were very pleased with our third quarter results, as we generated growth in EBITDA and earnings per share, driven by operational improvements across our business,” “We increased both sales pace and gross margin during the quarter, improved our backlog conversion and demonstrated strong overhead cost discipline,” said Allan Merrill, Beazer’s president and CEO. “With a backlog dollar value of $860 million, we’re well positioned for a strong finish to Fiscal 2017. Beyond this year, we are poised for further earnings growth and reductions in leverage, driven by an improving return on capital and the continued rollout of our Gatherings business.”
