<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: January 25, 2000
BEAZER HOMES USA, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 001-12822 54-2086934
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
5775 Peachtree Dunwoody Road, Suite B-200
Atlanta Georgia 30342
(Address of Principal
Executive Offices)
(404) 250-3420
(Registrant's telephone number, including area code)
None
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
On January 25, 2000, Beazer Homes USA, Inc. issued the press release
attached as an exhibit hereto and made a part hereof.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99. Press release issued January 25, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
BEAZER HOMES USA, INC.
Date: January 31, 2000 By: /S/ DAVID S. WEISS
----------------------------------
David S. Weiss
Executive Vice President
and Chief Financial Officer
<PAGE>
PRESS RELEASE
FOR IMMEDIATE RELEASE
BEAZER HOMES ANNOUNCES RECORD FIRST QUARTER EPS OF $.85,
UP 60% OVER PRIOR YEAR; NEW ORDERS UP 12%
ATLANTA, GEORGIA, JANUARY 25, 2000 - Beazer Homes USA, Inc. (NYSE: BZH;
WWW.BEAZER.COM) today announced results for the quarter ended December 31, 1999,
the first quarter of its 2000 fiscal year. Highlights of the quarter, compared
to the same period of the prior year, are as follows:
- DILUTED EPS: $.85 (UP 60% VS. $.53 IN PRIOR YEAR'S DECEMBER QUARTER)
- Home closings: 1,611 (up 15%); total revenues $309 million (up 28%)
- Earnings before interest, taxes, depreciation and amortization (EBITDA)
$19.6 million (up 44%)
- EBITDA Margin: 6.4% (up 80 basis points)
- Net income: $7.5 million (up 61%)
- New orders: 1,505 (up 12%)
- Dollar Backlog: $472 million (up 1%)
RECORD FIRST QUARTER RESULTS
Ian McCarthy, President and Chief Executive Officer of Beazer Homes, said, "We
are extremely pleased to report record results for the first quarter of our 2000
fiscal year. Closings, net income, new orders and dollar backlog were all
December quarter Company records."
Mr. McCarthy continued, "Our earnings per share were up 60% on a 15% increase in
homes closed, reflecting both a higher average sales price and our improved
profit margin. We are particularly proud of the 80 basis point improvement in
our EBITDA margin, driven by a 60 basis point reduction in selling, general and
administrative expenses as a percentage of revenues during the quarter. This
improvement demonstrates the operating efficiency gains that we have achieved
over the past year. We expect to report reductions in SG&A as a percentage of
revenues throughout fiscal 2000."
RECORD DECEMBER QUARTER NEW ORDERS, DESPITE DELAYS IN OPENING NEW SUBDIVISIONS
Mr. McCarthy also said, "We are pleased to report a 12% increase in new orders
during the quarter despite a decline in our number of active subdivisions at
December 31. New orders of 1,505 homes represent a December quarter Company
record. The increase in new orders reflects the continued strength of the
homebuilding market in many of the areas we serve, especially California, Texas
and the Mid-Atlantic. The US homebuilding market remains strong despite recent
increases in interest rates. This strength reflects the positive impact of
demographics, particularly population growth driven by immigration, that we
believe will continue to fuel the homebuilding market over the coming decade."
-- More --
<PAGE>
-- 2 --
Mr. McCarthy continued, "The decrease in our number of active subdivisions at
December 31, 1999 resulted from delays in opening new subdivisions. These delays
have been caused by the lengthening time needed to get permits and approvals in
many areas. During the March 2000 quarter, however, we anticipate opening a
number of new subdivisions just in time for the traditional home selling season
and we expect our subdivision count to increase during the quarter ending March
31, 2000."
BEAZER BUYS BACK SHARES AT A DISCOUNT TO BOOK VALUE
The Company also announced that it has repurchased 182,150 shares of its common
stock at an average price of $18.89 per share. These repurchases were made
pursuant to the Company's plan, that it announced in November 1999, to
repurchase up to 500,000 shares of its common stock.
David S. Weiss, Executive Vice President and Chief Financial Officer of Beazer
Homes, said, "Our repurchases of common stock during the quarter were made at a
30% discount to book value of $27.12 per share at December 31, 1999 and at 4.2
times our last twelve months' earnings of $4.47 per share. At these levels, we
believe that our stock is significantly undervalued and represents an excellent
investment opportunity."
Mr. Weiss also said, "Even with the repurchases of our common stock, we continue
to maintain one of the strongest balance sheets in the homebuilding industry. We
have reduced our debt by $11 million and our debt to total capitalization ratio
from 58% to 53%, since last year's December quarter."
OUR FUTURE IN BLACK AND WHITE
Mr. McCarthy said, "In our recently issued 1999 Annual Report, 'Our Future In
Black and White', we describe our optimism for the future of both Beazer Homes
and the homebuilding industry. The US homebuilding market continues to drive
forward, fueled by a healthy economy and strong demographics. We expect the
number of US households to continue to increase dramatically over the coming
decade. With our strong position in the growth markets of the US and our
aggressive e-business initiatives, led by BEAZER.COM, we believe that we are
uniquely qualified to take advantage of that growth."
Mr. McCarthy concluded, " Americans' number one dream continues to be 'Own my
own home' and Beazer is well positioned to make the home-owning dream of these
millions come true."
-- More --
<PAGE>
-- 3 --
Beazer Homes USA, Inc., based in Atlanta, Georgia, is one of the country's ten
largest single-family homebuilders with operations in Arizona, California,
Florida, Georgia, Maryland, Nevada, New Jersey, North Carolina, South Carolina,
Tennessee, Texas and Virginia.
Contact: David S. Weiss
Executive Vice President and Chief Financial Officer
(404) 250-3420
[email protected]
NOTE: CERTAIN STATEMENTS IN THIS PRESS RELEASE ARE "FORWARD-LOOKING
STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
ACT OF 1995. SUCH STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY. SUCH RISKS, UNCERTAINTIES AND OTHER FACTORS
INCLUDE, BUT ARE NOT LIMITED TO, CHANGES IN GENERAL ECONOMIC
CONDITIONS, FLUCTUATIONS IN INTEREST RATES, INCREASES IN RAW
MATERIALS AND LABOR COSTS, LEVELS OF COMPETITION AND OTHER FACTORS
DESCRIBED IN THE COMPANY'S ANNUAL REPORT FOR THE YEAR ENDED SEPTEMBER
30, 1999.
-- Table Follows --
<PAGE>
BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA
(Dollars in thousands, except per share amounts)
FINANCIAL DATA
<TABLE>
<CAPTION>
Quarter Ended
DECEMBER 31,
--------------------------------------
1999 1998
----- ----
<S> <C> <C>
INCOME STATEMENT
Revenues $ 308,745 $ 242,110
Costs and expenses:
Home construction and land sales 255,748 201,167
Interest 5,523 5,035
Selling, general and administrative expense 34,273 28,246
---------------- -----------------
Operating income 13,201 7,662
Other income (expense) (878) (48)
---------------- -----------------
Income before income taxes 12,323 7,614
Income taxes 4,806 2,931
---------------- -----------------
Net income $ 7,517 $ 4,683
================ =================
Dividends and other payments to preferred shareholders $ - $ 1,000
Net income to common shareholders:
Basic $ 7,517 $ 3,683
Diluted $ 7,517 $ 4,683
Net income per share:
Basic $0.88 $0.62
================ =================
Diluted $0.85 $0.53
================ =================
Weighted average shares outstanding, in thousands:
Basic 8,530 5,896
Diluted 8,825 8,868
Interest incurred $ 6,631 $ 5,939
Depreciation and amortization $ 1,763 $ 1,008
</TABLE>
<TABLE>
<CAPTION>
SELECTED BALANCE SHEET DATA DECEMBER 31,
--------------------------------------
1999 1998
---------------- -----------------
<S> <C> <C>
Inventory $ 575,700 $ 540,233
Total assets 628,075 589,405
Total debt 273,500 285,000
Stockholders' equity 239,375 203,129
</TABLE>
<PAGE>
BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA (Continued)
(Dollars in thousands)
OPERATING DATA
<TABLE>
<CAPTION>
QUARTER ENDED
DECEMBER 31,
--------------------------------------
SELECTED OPERATING DATA 1999 1998
----- ----
<S> <C> <C>
Closings:
Southeast region 551 535
Southwest region 685 595
Central region 122 136
Mid-Atlantic region 253 130
---------------- -----------------
Total closings 1,611 1,396
================ =================
New orders, net of cancellations (A):
Southeast region 537 597
Southwest region 620 610
Central region 88 78
Mid-Atlantic region 260 64
---------------- -----------------
Total new orders 1,505 1,349
================ =================
Backlog at end of period 2,452 2,565
================ =================
Dollar value of backlog at end of period $ 471,856 $ 468,780
================ =================
Active subdivisions:
Southeast region 111 113
Southwest region 59 61
Central region 30 30
Mid-Atlantic region 42 46
---------------- -----------------
Total active subdivisions 242 250
================ =================
</TABLE>
<TABLE>
<CAPTION>
QUARTER ENDED
DECEMBER 31,
--------------------------------------
SUPPLEMENTAL FINANCIAL DATA: 1999 1998
----- ----
<S> <C> <C>
Revenues
Home sales $ 303,584 $ 239,797
Land and lot sales 3,305 639
Mortgage origination revenue 3,107 2,536
Intercompany elimination - mortgage (1,251) (862)
---------------- -----------------
Total revenues $ 308,745 $ 242,110
================ =================
Cost of home construction and land sales
Home sales $ 253,849 $ 201,575
Land and lot sales 3,150 454
Intercompany elimination - mortgage (1,251) (862)
---------------- -----------------
Total costs of home construction and land sales $ 255,748 $ 201,167
================ =================
Selling, general and administrative
Homebuilding operations $ 32,117 $ 26,512
Mortgage origination operations 2,156 1,734
---------------- -----------------
Total selling, general and administrative $ 34,273 $ 28,246
================ =================
</TABLE>
(A) New orders for the quarter ended December 31, 1998 does not include 555
homes in backlog acquired in a business acquisition.
