On August 1, 2024, Beazer Homes USA Inc (BZH, Financial) released its 8-K filing detailing the financial results for the third quarter of fiscal 2024. Beazer Homes USA Inc is a construction company specializing in residential construction, focusing on single-family housing and multi-unit building construction across over 13 states and 22 metro markets. The company targets first-time, move-up, and luxury homebuyers, with key markets including Atlanta, Las Vegas, Los Angeles, Orlando, and Tampa.
Performance Overview
Despite facing an affordability-challenged new home sales environment and shifting consumer sentiment, Beazer Homes USA Inc (BZH, Financial) reported healthy results for the third quarter of fiscal 2024. The company achieved revenue growth and maintained cost control, leading to $53.5 million in Adjusted EBITDA and $0.88 of earnings per diluted share, surpassing the analyst estimate of $0.84 per share. However, net income from continuing operations was $27.2 million, down from $43.8 million in the same quarter last year.
Financial Achievements and Challenges
Beazer Homes USA Inc (BZH, Financial) reported homebuilding revenue of $589.6 million, a 3.3% increase year-over-year, driven by a 4.5% increase in home closings to 1,167 homes. However, the average selling price (ASP) decreased by 1.1% to $505.3 thousand. The homebuilding gross margin was 17.3%, down 290 basis points from the previous year, primarily due to an increased share of speculative home closings and changes in product and community mix.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income from Continuing Operations | $27.2 million | $43.8 million | -37.9% |
| Adjusted EBITDA | $53.5 million | $72.8 million | -26.5% |
| Homebuilding Revenue | $589.6 million | $570.5 million | 3.3% |
| Homebuilding Gross Margin | 17.3% | 20.2% | -290 bps |
| SG&A as % of Revenue | 11.9% | 11.5% | 40 bps |
Operational Highlights
Beazer Homes USA Inc (BZH, Financial) saw a 10.8% decrease in net new orders to 1,070, primarily due to a 23.9% decrease in orders per community per month. The backlog dollar value increased by 3.6% to $1.05 billion, with the ASP of homes in backlog rising by 3.2% to $536.9 thousand. The company also increased its land acquisition and development spending by 52.7% to $201.1 million, enhancing its controlled lot position by 24.9% to 28,365 lots.
Liquidity and Share Repurchases
At the end of the third quarter, Beazer Homes USA Inc (BZH, Financial) had $328.2 million in total liquidity, including $73.2 million in unrestricted cash. The company repurchased approximately 450,000 shares of its common stock for $12.9 million during the quarter.
Commentary and Outlook
"Despite an affordability challenged new home sales environment and shifting consumer sentiment, we generated healthy results and continued to make progress towards our multi-year goals," said Allan P. Merrill, the Company’s Chairman and Chief Executive Officer.
"We're optimistic about the long-term prospects for the new home industry and Beazer in particular. With our experienced operating team, ample lot supply, healthy balance sheet, and industry-leading energy efficient homes, we're well-positioned to drive sustainable value for our shareholders in the years ahead," added Mr. Merrill.
For more detailed insights and financial data, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Beazer Homes USA Inc for further details.
