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 JuneÂ30, 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.â€

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 JuneÂ30, 2014 are as
follows:

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

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 JuneÂ30, 2013
  *Land and lots controlled: 29,783 lots (79.4% owned), an increase of 10.4%
    from JuneÂ30, 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)
               Â Â              Â              Â              Â
                     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         283,857         260,324         739,295         712,930
and land sales
expenses
Inventory
impairments
and option           2,010         —           2,921         2,229     Â
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     Â    2,953     Â    9,138     Â    8,761     Â
amortization
Operating            15,088          8,472           32,237          5,182
income
Equity in
(loss) income
of                   (81       )     (310      )     221             (206      )
unconsolidated
entities
Loss on
extinguishment       (19,764   )     —             (19,917   )     (3,638    )
of debt
Other expense,       (10,205   )     (14,036   )     (39,689   )     (45,858   )
net
Loss from
continuing
operations           (14,962   )     (5,874    )     (27,148   )     (44,520   )
before income
taxes
Benefit from         (1,769    )     (432      )     (1,783    )     (1,028    )
income taxes
Loss from
continuing           (13,193   )     (5,442    )     (25,365   )     (43,492   )
operations
Income (loss)
from
discontinued         838       Â    (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            26,421          24,770          25,582          24,571
Diluted
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   )
                                                                               Â

                Â Three Months Ended         Â Â Nine Months Ended
                   June 30,                   Â Â June 30,
                   2014        Â 2013              2014        Â 2013
Capitalized
interest in
inventory,         $ 72,256       $ 45,501          $ 52,562       $ 38,190
beginning of
period
Interest           31,678         28,766            96,577         86,361
incurred
Interest
expense not
qualified for      (10,421  )     (14,252  )        (41,112  )     (46,709  )
capitalization
and 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 Â    $ 50,019 Â       $ 84,083 Â    $ 50,019 Â
inventory, end
of period
                                                                            Â

BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands, except share and per share data)
                                       Â                Â
                                          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     28,999            22,342
of $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       Â    9,124          Â
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      Â    27,129         Â
Total assets                              $ 1,977,394 Â    $   1,986,789  Â
                                                                           Â
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   Â    1,512,183      Â
and $5,160 respectively)
Total liabilities                         $ 1,758,391 Â    $   1,746,239  Â
                                                                           Â
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,      27                25
26,768,714 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        Â
Total liabilities and stockholders’     $ 1,977,394     $   1,986,789  Â
equity
                                                                           Â
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       Â    9,124          Â
Total inventory                           $ 1,595,542 Â    $   1,313,818  Â
                                                                           Â

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

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

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.

             Â Â Quarter Ended June 30,                   Â Â Nine Months Ended June 30,
                   2014               Â 2013                     2014                Â 2013
Homebuilding       $ 68,672 Â 19.4 %    $ 53,588 Â 17.1 %       $ 174,777 Â 19.2 %    $ 132,471 Â 15.7 %
gross profit
Inventory
impairments
and lot            2,010               —                    2,921                2,229     Â
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    Â           9,996    Â              23,944    Â           27,823    Â
cost of
sales
Homebuilding
gross profit
before I&A
and interest       $ 80,112 Â 22.7 %    $ 63,584 Â 20.3 %       $ 201,642 Â 22.2 %    $ 162,523 Â 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.

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

Contact:

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