Q2 2024 Beazer Homes USA Inc Earnings Call Transcript
Key Points
- New home orders increased by 10% compared to the previous year, driven by a 14% increase in average active community count.
- EBITDA reached over $58 million, supported by better-than-expected gross margins and effective overhead management.
- Community count grew to 145 active communities, up from 136 at the end of December and 121 a year ago.
- Successfully issued a senior note and extended the revolver, strengthening the balance sheet and supporting capital allocation flexibility.
- Progressed significantly towards the goal of having 100% of starts as zero energy ready homes by the end of calendar 2025, achieving 77% in the second quarter.
- Mortgage rates increased by about 20 basis points during the quarter, which could impact future affordability and sales pace.
- Anticipated short-term financial consequences in the third quarter due to aggressive pricing and incentives to accelerate the transition to Ready Series homes.
- Gross margins are expected to be lower sequentially in the third quarter due to a higher share of spec home sales and efforts to move through older series homes.
- Net debt to net cap ratio increased slightly to 43.4% from the previous year due to the timing of land spending.
- Orders in the Southeast region were down by 30%, potentially due to community sell-outs and phase timing issues.
Good afternoon, and welcome to the Beazer Homes earnings conference call for the second quarter ended March 31st, 2024. Today's call is being recorded, and a replay will be available on the company's website later today. In addition, PowerPoint slides intended to accompany this call are available in the Investor Relations section of the Company's website at www.beazer.com point,
I will turn the call over to David Goldberg, Senior Vice President and Chief Financial Officer.
Thank you. Good afternoon and welcome to the Beazer Homes conference call discussing our results for the second quarter of fiscal 2024.
Before we begin, you should be aware that during this call, we will be making forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors described in our SEC filings, which may cause actual results to differ materially from our projections.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
