Beazer Homes USA, Inc. (NYSE: BZH) after market close Monday reported selected preliminary results for the second quarter of fiscal 2020.
The results are preliminary and unaudited and were provided in light of current volatility and the impact of the COVID-19 pandemic, the company said.
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.
The company provided the following commentary: “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.
The statement continued, “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.”
BZH is scheduled to report financial results for the quarter ended March 31, 2020 on Thursday, April 30, 2020 after the close of the market.
