Beazer Homes Reports Third Quarter Fiscal 2014 Results Including $6.6 Million Income from Continuing Operations Before Loss on

  Beazer Homes Reports Third Quarter Fiscal 2014 Results Including $6.6
  Million Income from Continuing Operations Before Loss on Debt Extinguishment

  *22.7% Homebuilding Gross Margins
  *Affirms Expectation of Net Income for Fiscal 2014

Business Wire

ATLANTA -- July 31, 2014

Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its
financial results for the quarter and nine months ended June30, 2014.

“For the third quarter, we recorded strong gross margins, higher average sales
prices and  a sales absorption rate that was among the highest in our peer
group,” said Allan Merrill, CEO of Beazer Homes. “This led to a substantial
improvement in Adjusted EBITDA and enabled us to report income from
homebuilding operations in our third quarter for the first time in nearly a
decade. We believe our improved operational and financial results will allow
us to report a full year of profitability for fiscal 2014 and further growth
in the years ahead.”

The Company reported $6.6 million in income from continuing operations,
excluding a $19.8 million loss on the extinguishment of debt related to the
Company’s successful refinancing transaction in April. At that time, the
Company refinanced its 9.125% Senior Notes due 2018 with 5.75% Senior Notes
due 2019, thereby reducing its annual interest expense obligations by
approximately $8 million. Including the debt extinguishment, the Company
reported a net loss from continuing operations of $13.2 million for the third
quarter.

Subsequent Events

On July 1, 2014, the Company received common stock in American Homes 4 Rent
(AMH), a publicly traded real estate investment trust in exchange for its
investment in Beazer Pre-Owned Rental Homes, LLC. The Company expects to
record a gain on the transaction of approximately $6 million during our fourth
quarter of fiscal 2014.

In July 2014, we settled an appeal with the Internal Revenue Service related
to prior year tax returns. As a result, the Company expects to receive
approximately $26 million in cash during the quarter ended September 30, 2014.
This will be recorded as a tax benefit during the Company’s fiscal fourth
quarter.

Summary results for the quarter and nine months ended June30, 2014 are as
follows:

Q3 Results from Continuing Operations (unless otherwise specified)
                                     
                                        Quarter Ended June 30,
                                        2014        2013        Change
New Home Orders                         1,290         1,381         (6.6    )%
Orders per month per community          3.1           3.2           (3.1    )%
Actual community count at month-end     142           144           (1.4    )%
Average active community count          140           144           (2.8    )%
Cancellation rates                      21.0    %     20.0    %     100 bps
                                                                            
Total Home Closings                     1,241         1,234         0.6     %
Average sales price from closings       $ 284.6       $ 253.8       12.1    %
(in thousands)
Homebuilding revenue (in millions)      $ 353.2       $ 313.1       12.8    %
Homebuilding gross profit margin,
excluding impairments and               20.0    %     17.1    %     290 bps
abandonments (I&A)
Homebuilding gross profit margin,
excluding I&A and interest              22.7    %     20.3    %     240 bps
amortized to cost of sales
                                                                            
Income (loss) from continuing
operations before loss on debt          $ 6.6         $ (5.4  )     $ 12.0
extinguishment (in millions)
Loss on debt extinguishment (in         $ (19.8 )     $ —           $ (19.8 )
millions)
Loss from continuing operations (in     $ (13.2 )     $ (5.4  )     $ (7.8  )
millions)
Basic Loss Per Share                    $ (0.50 )     $ (0.22 )     $ (0.28 )
                                                                            
Land and land development spending      $ 129.1       $ 161.8       $ (32.7 )
(in millions)
Total Company Adjusted EBITDA (in       $ 31.6        $ 21.8        $ 9.8
millions)
                                                                            
                                                                            
                                        Nine Months Ended June 30,
                                        2014          2013          Change
New Home Orders                         3,575         3,834         (6.8    )%
LTM orders per month per community      2.9           2.7           7.4     %
Cancellation rates                      20.6    %     21.1    %     -50 bps
                                                                            
Total Home Closings                     3,256         3,399         (4.2    )%
Average sales price from closings       $ 279.3       $ 248.0       12.6    %
(in thousands)
Homebuilding revenue (in millions)      $ 909.2       $ 843.0       7.9     %
Homebuilding gross profit margin,
excluding impairments and               19.5    %     16.0    %     350 bps
abandonments (I&A)
Homebuilding gross profit margin,
excluding I&A and interest              22.2    %     19.3    %     290 bps
amortized to cost of sales
                                                                            
Loss from continuing operations
before loss on debt extinguishment      $ (5.5  )     $ (39.9 )     $ 34.4
(in millions)
Loss on debt extinguishment (in         $ (19.9 )     $ (3.6  )     $ (16.3 )
millions)
Net loss from continuing operations     $ (25.4 )     $ (43.5 )     $ 18.1
(in millions)
Basic Loss Per Share                    $ (0.99 )     $ (1.77 )     $ 0.78
                                                                            
Land and land development spending      $ 381.5       $ 314.4       $ 67.1
(in millions)
Total Company Adjusted EBITDA (in       $ 71.8        $ 44.7        $ 27.1
millions)
                                                                            

As of June 30, 2014

  *Total cash and cash equivalents: $264.4 million, including unrestricted
    cash of approximately $206.5 million
  *Stockholders' equity: $219.0 million
  *Total backlog from continuing operations: 2,212 homes with a sales value
    of $663.2 million, compared to 2,358 homes with a sales value of $646.1
    million as of June30, 2013
  *Land and lots controlled: 29,783 lots (79.4% owned), an increase of 10.4%
    from June30, 2013

Conference Call

The Company will hold a conference call on July 31, 2014 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 888-296-6948 or 203-369-3028 and enter the passcode “3740” (available
until 10:59 pm ET on August 7, 2014), or visit www.beazer.com. A replay of the
webcast will be available at www.beazer.com for at least 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 Choice Plans 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.

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          Nine Months Ended
                         June 30,                    June 30,
                         2014          2013          2014          2013
Total revenue            $ 354,671     $ 314,439     $ 917,862     $ 849,243
Home construction
and land sales           283,857       260,324       739,295       712,930
expenses
Inventory
impairments and          2,010        —            2,921        2,229     
option contract
abandonments
Gross profit             68,804        54,115        175,646       134,084
Commissions              14,322        13,078        37,239        35,406
General and
administrative           35,994        29,612        97,032        84,735
expenses
Depreciation and         3,400        2,953        9,138        8,761     
amortization
Operating income         15,088        8,472         32,237        5,182
Equity in (loss)
income of                (81       )   (310      )   221           (206      )
unconsolidated
entities
Loss on
extinguishment of        (19,764   )   —             (19,917   )   (3,638    )
debt
Other expense, net       (10,205   )   (14,036   )   (39,689   )   (45,858   )
Loss from continuing
operations before        (14,962   )   (5,874    )   (27,148   )   (44,520   )
income taxes
Benefit from income      (1,769    )   (432      )   (1,783    )   (1,028    )
taxes
Loss from continuing     (13,193   )   (5,442    )   (25,365   )   (43,492   )
operations
Income (loss) from
discontinued             838          (346      )   (99       )   (2,324    )
operations, net of
tax
Net loss                 $ (12,355 )   $ (5,788  )   $ (25,464 )   $ (45,816 )
Weighted average
number of shares:
Basic and Diluted        26,421        24,770        25,582        24,571
Basic and Diluted
(loss) income per
share:
Continuing               $ (0.50   )   $ (0.22   )   $ (0.99   )   $ (1.77   )
Operations
Discontinued             $ 0.03        $ (0.01   )   $ (0.01   )   $ (0.09   )
Operations
Total                    $ (0.47   )   $ (0.23   )   $ (1.00   )   $ (1.86   )
                                                                             

                          Three Months Ended        Nine Months Ended
                           June 30,                  June 30,
                           2014        2013           2014        2013
Capitalized interest in
inventory, beginning of    $ 72,256     $ 45,501       $ 52,562     $ 38,190
period
Interest incurred          31,678       28,766         96,577       86,361
Interest expense not
qualified for
capitalization and         (10,421  )   (14,252  )     (41,112  )   (46,709  )
included as other
expense
Capitalized interest
amortized to house         (9,430   )   (9,996   )     (23,944  )   (27,823  )
construction and land
sales expenses
Capitalized interest in    $ 84,083    $ 50,019      $ 84,083    $ 50,019 
inventory, end of period
                                                                             

BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except share and per share data)
                                                         
                                            June 30, 2014   September 30, 2013
ASSETS
Cash and cash equivalents                   $ 206,482       $   504,459
Restricted cash                             57,963          48,978
Accounts receivable (net of allowance of    28,999          22,342
$1,278 and $1,651, respectively)
Income tax receivable                       4,754           2,813
Inventory
Owned inventory                             1,587,954       1,304,694
Land not owned under option agreements      7,588          9,124           
Total inventory                             1,595,542       1,313,818
Investments in unconsolidated entities      34,224          44,997
Deferred tax assets, net                    5,480           5,253
Property, plant and equipment, net          17,183          17,000
Other assets                                26,767         27,129          
Total assets                                $ 1,977,394    $   1,986,789   
                                                                            
LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade accounts payable                      $ 84,435        $   83,800
Other liabilities                           133,698         145,623
Obligations related to land not owned       3,016           4,633
under option agreements
Total debt (net of discounts of $4,590      1,537,242      1,512,183       
and $5,160 respectively)
Total liabilities                           $ 1,758,391    $   1,746,239   
                                                                            
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, 26,768,714    27              25
and 25,245,945 issued and outstanding,
respectively)
Paid-in capital                             850,080         846,165
Accumulated deficit                         (631,104    )   (605,640        )
Total stockholders’ equity                  219,003        240,550         
Total liabilities and stockholders’         $ 1,977,394    $   1,986,789   
equity
                                                                            
Inventory Breakdown
Homes under construction                    $ 384,795       $   262,476
Development projects in progress            690,557         578,453
Land held for future development            309,516         341,986
Land held for sale                          74,365          31,331
Capitalized interest                        84,083          52,562
Model homes                                 44,638          37,886
Land not owned under option agreements      7,588          9,124           
Total inventory                             $ 1,595,542    $   1,313,818   
                                                                            

BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA– CONTINUING OPERATIONS
($ in thousands, except otherwise noted)
                                                              
                      Quarter Ended June 30,        Nine Months Ended June 30,
SELECTED              2014          2013            2014             2013
OPERATING DATA
Closings:
West region           514           550             1,402            1,553
East region           383           370             978              1,106
Southeast region      344          314            876             740
Total closings        1,241        1,234          3,256           3,399
                                                                     
New orders, net
of cancellations:
West region           486           614             1,387            1,696
East region           418           389             1,150            1,140
Southeast region      386          378            1,038           998
Total new orders      1,290        1,381          3,575           3,834
                                                                     
Backlog units at
end of period:
West region           723           982             723              982
East region           833           781             833              781
Southeast region      656          595            656             595
Total backlog         2,212        2,358          2,212           2,358
units
                                                                     
Dollar value of
backlog at end of     $ 663.2      $ 646.1        $  663.2        $ 646.1
period (in
millions)
                                                                     
Homebuilding
Revenue:
West region           $ 136,775     $ 132,803       $  376,031       $ 360,052
East region           127,147       111,333         316,392          324,334
Southeast region      89,243       68,993         216,825         158,639
Total
homebuilding          $ 353,165    $ 313,129      $  909,248      $ 843,025
revenue
                                                                       

                    Quarter Ended June 30,      Nine Months Ended June 30,
SUPPLEMENTAL          2014         2013            2014            2013
FINANCIAL DATA
Revenues:
Homebuilding          $ 353,165     $ 313,129       $  909,248       $ 843,025
Land sales and        1,506        1,310          8,614           6,218
other
Total                 $ 354,671    $ 314,439      $  917,862      $ 849,243
                                                                     
Gross profit:
Homebuilding          $ 68,672      $ 53,588        $  174,777       $ 132,471
Land sales and        132          527            869             1,613
other
Total                 $ 68,804     $ 54,115       $  175,646      $ 134,084
                                                                       

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.
Management believes that this information assists investors in comparing the
operating characteristics of homebuilding activities by eliminating many of
the differences in companies' respective level of impairments and level of
debt.

               Quarter Ended June 30,                  Nine Months Ended June 30,
                 2014               2013                  2014                2013
Homebuilding     $ 68,672  19.4 %   $ 53,588  17.1 %     $ 174,777  19.2 %   $ 132,471  15.7 %
gross profit
Inventory
impairments
and lot          2,010              —                    2,921               2,229     
option
abandonments
(I&A)
Homebuilding
gross profit     70,682     20.0 %   53,588     17.1 %     177,698     19.5 %   134,700     16.0 %
before I&A
Interest
amortized to     9,430              9,996                23,944              27,823    
cost of
sales
Homebuilding
gross profit
before I&A
and interest     $ 80,112  22.7 %   $ 63,584  20.3 %     $ 201,642  22.2 %   $ 162,523  19.3 %
amortized to
cost of
sales

Reconciliation of Adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization, debt extinguishment, impairments and abandonments)
to total company net loss (including 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 June 30,    Nine Months Ended June 30,
                         2014         2013         2014          2013
Net loss                 $ (12,355 )   $ (5,788 )   $  (25,464 )   $ (45,816 )
Benefit from income      (1,661    )   (470     )   (1,665     )   (1,097    )
taxes
Interest amortized to
home construction and
land sales expenses,
capitalized interest     19,851        24,248       65,056         74,532
impaired, and interest
expense not qualified
for capitalization
Depreciation and
amortization and stock   4,013         3,590        11,017         11,036
compensation
amortization
Inventory impairments
and option contract      2,010         —            2,921          2,246
abandonments
Loss on debt             19,764        —            19,917         3,638
extinguishment
Joint venture
impairment and           —            181         —             181       
abandonment charges
Adjusted EBITDA          $ 31,622     $ 21,761    $  71,782     $ 44,720  

Contact:

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