\nBeazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com<\/a>) today announced its financial results for the three months ended December 31, 2022.\n<\/p>\n
\n\u201cDespite a challenging new home sales environment, we generated strong first quarter financial results,\u201d said Allan P. Merrill, the company\u2019s Chairman and Chief Executive Officer. \u201cYear-over-year increases in home prices, healthy gross margins and careful management of overhead costs led to $24 million of net income, $47 million in Adjusted EBITDA and $0.80 of earnings per share.\u201d\n<\/p>\n
\nCommenting on current market conditions, Mr. Merrill said, \u201cThe environment for new home sales was extraordinarily challenging early in the first quarter as 30-year mortgage rates moved above 7%, worsening an already difficult affordability equation for most home buyers. Toward the end of the quarter, as mortgage rates fell modestly, we experienced improved online and in-person visits, which led to a meaningful acceleration in our new home orders in January. We will continue to make necessary adjustments to home pricing, incentives and included features to remain competitive, while pursuing our efforts to reduce cycle times and construction costs.\u201d\n<\/p>\n
\nLooking further out, Mr. Merrill concluded, \u201cWe remain confident in the multi-year growth of our business and the underlying strength of the new home industry. The gap between the structural demand for homes and the likely supply of homes – which has given rise to a multimillion home deficit over the past decade – remains in place. With a seasoned operating team, an ample supply of lots and a more efficient and less leveraged balance sheet, we remain confident that we will be able to create durable value for our stakeholders in the years ahead.\u201d\n<\/p>\n
Beazer Homes Fiscal First Quarter 2023 Highlights and Comparison to Fiscal First Quarter 2022<\/span><\/p>\n \nThe following provides additional details on the Company’s performance during the fiscal first quarter 2023:\n<\/p>\n Profitability<\/i>. Net income from continuing operations was $24.4 million, generating diluted earnings per share of $0.80. This included the impact of energy efficiency tax credits of $3.0 million or $0.10 per share compared to $3.2 million of such credits or $0.10 per share in the prior year quarter. First quarter adjusted EBITDA of $47.1 million was down $14.0 million, or 22.9%, primarily due to lower gross margin.\n<\/p>\n Orders<\/i>. Net new orders for the first quarter decreased to 482, down 57.8% from 1,141 in the prior year period. The decrease in net new orders was driven by a 60.1% decrease in sales pace to 1.3 orders per community per month, down from 3.3 in the prior year period. The cancellation rate for the quarter was 37.1%, up from 11.8% in the previous year, reflecting the weakening in housing demand as a result of elevated mortgage rates. Our cancellations as a percentage of fiscal 2023 first quarter beginning backlog was 13.6%.\n<\/p>\n Backlog<\/i>. The dollar value of homes in backlog as of December 31, 2022 was $940.9 million, representing 1,740 homes, compared to $1.4 billion, representing 2,908 homes, at the same time last year. The average selling price of homes in backlog was $540.8 thousand, up 11.9% versus the previous year.\n<\/p>\n Homebuilding Revenue<\/i>. First quarter homebuilding revenue was $444.1 million, relatively flat year-over-year on a 21.6% increase in the average selling price to $533.1 thousand, which was more than offset by an 18.3% decrease in home closings to 833 homes.\n<\/p>\n Homebuilding Gross Margin<\/i>. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 22.3% for the first quarter, down 190 basis points year-over-year. The reduction in gross margin reflected an increase in price concessions as demand weakened.\n<\/p>\n SG&A Expenses<\/i>. Selling, general and administrative expenses as a percentage of total revenue was 12.3% for the quarter, up 50 basis points year-over-year primarily due to decreases in closings and revenue, while SG&A on an absolute dollar basis increased by $1.2 million, or 2.2%, year-over-year.\n<\/p>\n Land Position<\/i>. <\/i>Controlled lots increased 7.3% to 24,735, compared to 23,049 from the prior year. Excluding land held for future development and land held for sale lots, active lots controlled were 23,962, up 6.8% year-over-year. Compared to prior fiscal quarter, active controlled lots were down 435 lots, or 1.8%, as the Company continued to re-underwrite and re-negotiate land deals to reflect the current environment. As of December 31, 2022, the Company controlled 54.4% of its total active lots through option contracts compared to 54.6% a quarter ago and 49.2% a year ago. For the current fiscal quarter, land acquisition and land development spending was $114.7 million, down 12.2% year-over-year and down 24.0% sequentially from the prior fiscal quarter.\n<\/p>\n Liquidity<\/i>. At the close of the first quarter, the Company had $385.7 million of available liquidity, including $120.7 million of unrestricted cash and $265.0 million of remaining capacity under the unsecured revolving credit facility.\n<\/p>\n Senior Unsecured Revolving Credit Facility<\/i>. On October 13, 2022, the Company entered into a senior unsecured revolving credit facility with committed borrowing capacity of $265.0 million, which replaced a $250.0 million secured revolving credit facility.\n<\/p>\n \nSummary results for the three months ended December 31, 2022 are as follows:\n<\/p>\n\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230202005612\/en\/1704009\/3\/BZR_Full-Color_CMYK_Vertical_Print.pdf_%283%29.jpg\")
<\/td>\n<\/tr>\n