Beazer Homes Closes Out Fiscal 2013 with $11.9 Million of Net Income for the Fourth Quarter and 21.4% Homebuilding Gross

  Beazer Homes Closes Out Fiscal 2013 with $11.9 Million of Net Income for the
  Fourth Quarter and 21.4% Homebuilding Gross Margins

Business Wire

ATLANTA -- November 7, 2013

Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its
financial results for the quarter and fiscal year ended September30, 2013.

The Company closed out its fiscal year with improved fourth quarter results
highlighted by positive net income of $11.9 million and 21.4% homebuilding
gross margins. Adjusted EBITDA was $41.5 million for the quarter, up from
$15.1 million in the fourth quarter of fiscal 2012.

For the full year fiscal 2013, the Company made significant progress on its
objective to return to sustainable profitability. The Company’s net loss for
fiscal 2013 was $33.9 million, compared to a loss of $145.3 million for fiscal
2012. New home orders were up 2.6% despite an 18.5% reduction in average
community count, while full year homebuilding gross margins increased to
20.0%. And, adjusted EBITDA for the full year was significantly improved at
$86.3 million for fiscal 2013, up from $21.8 million last year.

“We finished 2013 with solidly improved operating and financial results,” said
Allan Merrill, CEO of Beazer Homes. “In the fourth quarter, we reported our
first net profit from operations in many years, realizing the benefits of our
path-to-profitability strategies and the impact of an improved homebuilding
market. For the full year, with continued improvements in average sales price,
sales per community per month and homebuilding gross margins, we achieved
adjusted EBITDA that was more than triple the amount reported for fiscal 2012.

“With this positive momentum heading into fiscal 2014 as well as our continued
belief that new home affordability and inventory levels will remain favorable,
we expect to report a full year of profitability for fiscal 2014.”

Q4 Results from Continuing Operations (unless otherwise specified)

                                           Quarter Ended September 30,
                                            2013       2012       Change
New Home Orders                             1,192       1,110       7.4     %
Average community count                     135         163         (17.2   )%
QTD orders per month per community          3.0         2.3         30.4    %
Cancellation rates                          23.9    %   31.1    %   -720 bps
                                                                    
Total Home Closings                         1,657       1,608       3.0     %
Average sales price from closings (in       $ 263.2     $ 228.6     15.1    %
thousands)
Homebuilding revenue (in millions)          $ 436.2     $ 367.5     18.7    %
Homebuilding gross profit margin,
excluding impairments and abandonments      18.3    %   11.8    %   650 bps
(I&A)
Homebuilding gross profit margin,
excluding I&A and interest amortized to     21.4    %   17.2    %   420 bps
cost of sales
                                                                    
Income (loss) from continuing operations    $ 8.9       $ (64.3 )   $ 73.2
before income taxes (in millions)
Benefit from income taxes (in millions)     $ 2.5       $ 3.9       $ (1.4  )
Net income (loss) from continuing           $ 11.3      $ (60.4 )   $ 71.7
operations (in millions)
Basic Income (Loss) Per Share               $ 0.46      $ (2.57 )   $ 3.03
Diluted Income (Loss) Per Share             $ 0.36      $ (2.57 )   $ 2.93
Loss on debt extinguishment (in millions)   $ (1.0  )   $ (42.4 )   $ 41.4
Inventory impairments (in millions)         $ (0.4  )   $ (1.7  )   $ 1.3
Net income (loss) from continuing
operations excluding loss on debt           $ 12.7      $ (16.3 )   $ 29.0
extinguishment and inventory impairments
(in millions)
Land and land development spending (in      $ 160.8     $ 45.0      $ 115.8
millions)
Total Company Adjusted EBITDA (in           $ 41.5      $ 15.1      $ 26.4
millions)
                                                                            

Full Year Results from Continuing Operations (unless otherwise specified)

                                        Year Ended September 30,
                                         2013         2012        Change
New Home Orders                          5,026         4,901        2.6     %
Average community count                  145           178          (18.5   )%
LTM orders per month per community       2.9           2.3          26.1    %
Cancellation rates                       21.8      %   27.2     %   -540 bps
                                                                    
Total Home Closings                      5,056         4,428        14.2    %
Average sales price from closings (in    $ 253.0       $ 224.9      12.5    %
thousands)
Homebuilding revenue (in millions)       $ 1,279.2     $ 996.1      28.4    %
Homebuilding gross profit margin,        16.8      %   11.6     %   520 bps
excluding impairments and abandonments
Homebuilding gross profit margin,
excluding impairments, abandonments      20.0      %   17.7     %   230 bps
and interest amortized to cost of
sales
                                                                    
Loss from continuing operations before   $ (35.7   )   $ (176.0 )   $ 140.3
income taxes (in millions)
Benefit from income taxes (in            $ 3.5         $ 40.3       $ (36.8 )
millions)
Net loss from continuing operations      $ (32.2   )   $ (135.6 )   $ 103.4
(in millions)
Basic and Diluted Loss Per Share         $ (1.30   )   $ (7.34  )   $ 6.04
Loss on debt extinguishment (in          $ (4.6    )   $ (45.1  )   $ 40.5
millions)
Inventory impairments (in millions)      $ (2.6    )   $ (12.2  )   $ 9.6
Net loss from continuing operations
excluding loss on debt extinguishment    $ (25.0   )   $ (78.3  )   $ 53.3
and inventory impairments (in
millions)
Land and land development spending (in   $ 475.2       $ 185.5      $ 289.7
millions)
Adjusted EBITDA (in millions)            $ 86.3        $ 21.8       $ 64.5
                                                                            

As of September30, 2013

  *Total cash and cash equivalents: $553.4 million, including unrestricted
    cash of approximately $504.5 million
  *Stockholders' equity: $240.6 million
  *Total backlog from continuing operations: 1,893 homes with a sales value
    of $528.1 million, compared to 1,923 homes with a sales value of $479.1
    million as of September30, 2012
  *Land and lots controlled: 28,004 lots (79.4% owned), an increase of 16.0%
    from September30, 2012

Capital Markets Activity

During the year ended September30, 2013, we engaged in several capital
raising transactions designed to further strengthen our balance sheet and
provide additional capital for land acquisitions and development. In February
2013, we issued and sold $200 million aggregate principal amount of 7.25%
Senior Notes due 2023 through a private placement to qualified institutional
buyers. A portion of these proceeds were used to fund the redemption of all of
our outstanding 6.875% Senior Notes due 2015 and to repurchase $2 million of
our 9.125% Senior Notes due 2018. In September 2013, we issued and sold $200
million aggregate principal amount of 7.5% Senior Notes due 2021 through a
private placement to qualified institutional buyers. Proceeds from the 2021
Notes and the remaining funds from the 2023 Notes have been or will be used to
expand our new home community count in targeted markets and for general
corporate purposes.

Conference Call

The Company will hold a conference call on November 7, 2013 at 10:00 am ET to
discuss these results. Interested parties may listen to the conference call
and view the Company's slide presentation over the Internet by visiting the
“Investor Relations” section of the Company's website at www.beazer.com. To
access the conference call by telephone, listeners should dial 800-619-8639
(for international callers, dial 312-470-7002). To be admitted to the call,
verbally supply the passcode "BZH". A replay of the call will be available
shortly after the conclusion of the live call. To directly access the replay,
dial 800-839-1193 or 402-998-0566 and enter the passcode “3740” (available
until 11:00 pm ET on November 14, 2013), or visit www.beazer.com. A replay of
the webcast will be available at www.beazer.com for approximately 30 days.

Headquartered in Atlanta, Beazer Homes is one of the country’s 10 largest
single-family homebuilders. The Company’s homes meet or exceed the benchmark
for energy-efficient home construction as established by ENERGY STAR® and are
designed with flexible floorplan options to meet the personal preferences and
lifestyles of its buyers. In addition, the Company is committed to providing a
range of preferred lender choices to facilitate transparent competition
between lenders and enhanced customer service. The Company offers homes in 16
states, including Arizona, California, Delaware, Florida, Georgia, Indiana,
Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South
Carolina, Tennessee, Texas and Virginia. Beazer Homes is listed on the New
York Stock Exchange under the ticker symbol “BZH.” For more info visit
Beazer.com, or check out Beazer on Facebook and Twitter.

Forward Looking Statements

This press release contains forward-looking statements. These forward-looking
statements represent our expectations or beliefs concerning future events, and
it is possible that the results described in this press release will not be
achieved. These forward-looking statements are subject to risks, uncertainties
and other factors, many of which are outside of our control, that could cause
actual results to differ materially from the results discussed in the
forward-looking statements, including, among other things, (i) the
availability and cost of land and the risks associated with the future value
of our inventory such as additional asset impairment charges or writedowns;
(ii) economic changes nationally or in local markets, including changes in
consumer confidence, declines in employment levels, inflation and increases in
the quantity and decreases in the price of new homes and resale homes in the
market; (iii) the cyclical nature of the homebuilding industry and a potential
deterioration in homebuilding industry conditions; (iv) estimates related to
homes to be delivered in the future (backlog) are imprecise as they are
subject to various cancellation risks which cannot be fully controlled; (v)
shortages of or increased prices for labor, land or raw materials used in
housing production; (vi) our cost of and ability to access capital and
otherwise meet our ongoing liquidity needs including the impact of any
downgrades of our credit ratings or reductions in our tangible net worth or
liquidity levels; (vii) our ability to comply with covenants in our debt
agreements or satisfy such obligations through repayment or refinancing;
(viii) a substantial increase in mortgage interest rates, increased disruption
in the availability of mortgage financing, a change in tax laws regarding the
deductibility of mortgage interest, or an increased number of foreclosures;
(ix) increased competition or delays in reacting to changing consumer
preference in home design; (x) factors affecting margins such as decreased
land values underlying land option agreements, increased land development
costs on communities under development or delays or difficulties in
implementing initiatives to reduce production and overhead cost structure;
(xi) estimates related to the potential recoverability of our deferred tax
assets; (xii) potential delays or increased costs in obtaining necessary
permits as a result of changes to, or complying with, laws, regulations, or
governmental policies and possible penalties for failure to comply with such
laws, regulations and governmental policies; (xiii) the results of litigation
or government proceedings and fulfillment of the obligations in the Deferred
Prosecution Agreement and consent orders with governmental authorities and
other settlement agreements; (xiv) the impact of construction defect and home
warranty claims; (xv) the cost and availability of insurance and surety bonds;
(xvi) the performance of our unconsolidated entities and our unconsolidated
entity partners; (xvii) delays in land development or home construction
resulting from adverse weather conditions; (xviii) the impact of information
technology failures or data security breaches; (xix) effects of changes in
accounting policies, standards, guidelines or principles; or (xx) terrorist
acts, acts of war and other factors over which the Company has little or no
control.

Any forward-looking statement speaks only as of the date on which such
statement is made, and, except as required by law, we do not undertake any
obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise. New factors emerge from
time to time and it is not possible for management to predict all such
factors.

                               -Tables Follow-

BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                             
                   Three Months Ended              Fiscal Year Ended
                   September 30,                   September 30,
                   2013         2012              2013           2012
Total revenue      $ 438,334     $ 370,931         $ 1,287,577     $ 1,005,677
Home
construction       357,884       327,815           1,070,814       888,379
and land sales
expenses
Inventory
impairments
and option         404          1,718            2,633          12,210      
contract
abandonments
Gross profit       80,046        41,398            214,130         105,088
Commissions        17,516        16,063            52,922          43,585
General and
administrative     36,428        27,671            121,163         110,051
expenses
Depreciation
and                4,023        4,174            12,784         13,510      
amortization
Operating          22,079        (6,510    )       27,261          (62,058     )
income (loss)
Equity in
income (loss)
of                 93            329               (113        )   304
unconsolidated
entities
Loss on
extinguishment     (998      )   (42,350   )       (4,636      )   (45,097     )
of debt
Other expense,     (12,307   )   (15,777   )       (58,165     )   (69,119     )
net
Income (loss)
from
continuing         8,867         (64,308   )       (35,653     )   (175,970    )
operations
before income
taxes
Benefit from       (2,461    )   (3,909    )       (3,489      )   (40,347     )
income taxes
Income (loss)
from               11,328        (60,399   )       (32,164     )   (135,623    )
continuing
operations
Income (loss)
from
discontinued       620          (5,834    )       (1,704      )   (9,703      )
operations,
net of tax
Net income         $ 11,948     $ (66,233 )       $ (33,868   )   $ (145,326  )
(loss)
Weighted
average number
of shares:
Basic              24,888        23,528            24,651          18,474
Diluted            31,560        23,528            24,651          18,474
Income (loss)
per share:
Basic income
(loss) per
share from         $ 0.46        $ (2.57   )       $ (1.30     )   $ (7.34     )
continuing
operations
Basic income
(loss) per
share from         $ 0.02        $ (0.25   )       $ (0.07     )   $ (0.53     )
discontinued
operations
Basic income
(loss) per         $ 0.48        $ (2.82   )       $ (1.37     )   $ (7.87     )
share
Diluted income
(loss) per
share from         $ 0.36        $ (2.57   )       $ (1.30     )   $ (7.34     )
continuing
operations
Diluted income
(loss) per
share from         $ 0.02        $ (0.25   )       $ (0.07     )   $ (0.53     )
discontinued
operations
Diluted income
(loss) per         $ 0.38        $ (2.82   )       $ (1.37     )   $ (7.87     )
share
                                                                               

                       Three Months Ended         Fiscal Year Ended
                         September 30,                 September 30,
                         2013        2012             2013        2012
Capitalized interest
in inventory,            $ 50,019     $ 45,373         $ 38,190     $ 45,973
beginning of period
Interest incurred        28,715       28,968           115,076      124,918
Capitalized interest     —            —                —            (275     )
impaired
Interest expense not
qualified for
capitalization and       (12,749  )   (16,327  )       (59,458  )   (71,474  )
included as other
expense
Capitalized interest
amortized to house       (13,423  )   (19,824  )       (41,246  )   (60,952  )
construction and
land sales expenses
Capitalized interest
in inventory, end of     $ 52,562    $ 38,190        $ 52,562    $ 38,190 
period
                                                                             

BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
                                                        
                                     September 30, 2013     September 30, 2012
ASSETS
Cash and cash equivalents            $   504,459            $   487,795
Restricted cash                      48,978                 253,260
Accounts receivable (net of
allowance of $1,651 and $2,235,      22,342                 24,599
respectively)
Income tax receivable                2,813                  6,372
Inventory
Owned inventory                      1,304,694              1,099,132
Land not owned under option          9,124                 12,420          
agreements
Total inventory                      1,313,818              1,111,552
Investments in unconsolidated        44,997                 42,078
entities
Deferred tax assets, net             5,253                  6,848
Property, plant and equipment, net   17,000                 18,974
Other assets                         27,129                30,740          
Total assets                         $   1,986,789         $   1,982,218   
                                                                            
LIABILITIES AND STOCKHOLDERS’
EQUITY
Trade accounts payable               $   83,800             $   69,268
Other liabilities                    145,623                147,718
Obligations related to land not      4,633                  4,787
owned under option agreements
Total debt (net of discounts of      1,512,183             1,498,198       
$5,160 and $3,082, respectively)
Total liabilities                    $   1,746,239         $   1,719,971   
                                                                            
Stockholders’ equity:
Preferred stock (par value $.01
per share, 5,000,000 shares          $   —                  $   —
authorized, no shares issued)
Common stock (par value $0.001 per
share, 63,000,000 shares
authorized, 25,245,945 and           25                     25
24,601,830 issued and outstanding,
respectively)
Paid-in capital                      846,165                833,994
Accumulated deficit                  (605,640        )      (571,772        )
Total stockholders’ equity           240,550               262,247         
Total liabilities and                $   1,986,789         $   1,982,218   
stockholders’ equity
                                                                            
Inventory Breakdown
Homes under construction             $   262,476            $   251,828
Development projects in progress     578,453                391,019
Land held for future development     341,986                367,102
Land held for sale                   31,331                 10,149
Capitalized interest                 52,562                 38,190
Model homes                          37,886                 40,844
Land not owned under option          9,124                 12,420          
agreements
Total inventory                      $   1,313,818         $   1,111,552   
                                                                            

BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA– CONTINUING OPERATIONS
                                               
                  Quarter Ended September 30,       Fiscal Year Ended
                                                    September 30,
SELECTED          2013           2012              2013            2012
OPERATING DATA
Closings:
West region       724             689               2,277            1,883
East region       523             522               1,629            1,506
Southeast         410            397              1,150           1,039
region
Continuing        1,657           1,608             5,056            4,428
Operations
Discontinued      —              —                —               19
Operations
Total closings    1,657          1,608            5,056           4,447
                                                                     
New orders, net
of
cancellations:
West region       480             464               2,176            2,152
East region       403             378               1,543            1,615
Southeast         309            268              1,307           1,134
region
Continuing        1,192           1,110             5,026            4,901
Operations
Discontinued      —              —                —               2
Operations
Total new         1,192          1,110            5,026           4,903
orders
                                                                     
Backlog units
at end of
period:
West region       738             839               738              839
East region       661             747               661              747
Southeast         494            337              494             337
region
Continuing        1,893           1,923             1,893            1,923
Operations
Discontinued      —              —                —               —
Operations
Total backlog     1,893          1,923            1,893           1,923
units
                                                                     
Dollar value of
backlog at end    $  528.1       $ 479.1          $  528.1        $ 479.1
of period (in
millions)
                                                                     
Homebuilding
Revenue (in
thousands):
West region       $  183,472      $ 141,124         $  543,524       $ 386,544
East region       158,134         146,295           482,468          401,814
Southeast         94,581         80,100           253,220         207,701
region
Total
homebuilding      $  436,187     $ 367,519        $  1,279,212    $ 996,059
revenue
                                                                       

BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA– CONTINUING OPERATIONS
(Dollars in thousands)
                                             
                  Quarter Ended September          Fiscal Year Ended September
                  30,                              30,
SUPPLEMENTAL
FINANCIAL         2013          2012              2013           2012
DATA
Revenues:
Homebuilding      $  436,187     $ 367,519         $ 1,279,212     $ 996,059
Land sales        2,147         3,412            8,365          9,618
and other
Total             $  438,334    $ 370,931        $ 1,287,577    $ 1,005,677
                                                                   
Gross profit:
Homebuilding      $  79,583      $ 41,630          $ 212,054       $ 103,105
Land sales        463           (232      )       2,076          1,983
and other
Total             $  80,046     $ 41,398         $ 214,130      $ 105,088
                                                                     

Reconciliation of homebuilding gross profit before impairments and
abandonments and interest amortized to cost of sales and the related gross
margins to homebuilding gross profit and gross margin, the most directly
comparable GAAP measure, is provided for each period discussed below:

               Quarter Ended September 30,               Fiscal Year Ended September 30,
                 2013                2012                  2013                 2012
Homebuilding     $ 79,583  18.2 %     $ 41,630  11.3 %     $ 212,054  16.6 %     $ 103,105  10.4 %
gross profit
Inventory
impairments
and lot          404                  1,718                2,633                 12,210    
option
abandonments
(I&A)
Homebuilding
gross profit     79,987     18.3 %     43,348     11.8 %     214,687     16.8 %     115,315     11.6 %
before I&A
Interest
amortized to     13,423               19,824               41,246                60,952    
cost of
sales
Homebuilding
gross profit
before I&A
and interest     $ 93,410  21.4 %     $ 63,172  17.2 %     $ 255,933  20.0 %     $ 176,267  17.7 %
amortized to
cost of
sales
                                                                                                     

Reconciliation of Adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization, debt extinguishment, impairments and abandonments)
to total company net income (loss) (excluding discontinued operations), the
most directly comparable GAAP measure, is provided for each period discussed
below. Management believes that Adjusted EBITDA assists investors in
understanding and comparing the operating characteristics of homebuilding
activities by eliminating many of the differences in companies' respective
capitalization, tax position and level of impairments.

                      Quarter Ended              Fiscal Year Ended
                       September 30,                September 30,
                       2013        2012            2013         2012
Net income (loss)      $ 11,948     $ (66,233 )     $ (33,868 )   $ (145,326 )
Benefit from income    (2,587   )   (3,901    )     (3,684    )   (40,747    )
taxes
Interest amortized
to home construction
and land sales
expenses,
capitalized interest   26,172       36,151          100,704       132,701
impaired, and
interest expense not
qualified for
capitalization
Depreciation and
amortization and       4,606        4,991           15,642        17,573
stock compensation
amortization
Inventory
impairments and        404          1,718           2,650         12,514
option contract
abandonments
Loss on debt           998          42,350          4,636         45,097
extinguishment
Joint venture
impairment and         —           —              181          36         
abandonment charges
Adjusted EBITDA        $ 41,541    $ 15,076       $ 86,261     $ 21,848   

Contact:

Beazer Homes USA, Inc.
Carey Phelps, 770-829-3700
Director, Investor Relations & Corporate Communications
investor.relations@beazer.com