Business Wire | Nov 10, 2021 04:15PM EST

Beazer Homes Reports Strong Fourth Quarter and Full Fiscal 2021 Results

Nov. 10, 2021

ATLANTA--(BUSINESS WIRE)--Nov. 10, 2021--Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) today announced its financial results for the quarter and fiscal year ended September 30, 2021.

"We had a very successful fiscal year, driven by strong operational execution and continued strength in the housing market," said Allan P. Merrill, the Company's Chairman and Chief Executive Officer. "We generated significant gains in operating margin and adjusted EBITDA, leading to full year net income that was more than double the prior year. We also significantly grew our total active lot position and reduced leverage."

Commenting on market conditions and fiscal 2022 full-year expectations, Mr. Merrill said, "The new home market continues to be characterized by strong demand and limited supply, supported by growth in both employment and household income. While affordability and supply chain challenges are expected to persist, we believe our strong backlog and operational momentum will allow us to generate earnings per share above $5.00. We also expect further growth in our active lot position and to achieve our multi-year goal of reducing total debt below $1 billion."

Looking further out, Mr. Merrill concluded, "We believe we are positioned to continue growing book value and return on capital while expanding our ESG activities to create durable value for all of our stakeholders."

Beazer Homes Fiscal 2021 Highlights and Comparison to Fiscal 2020

* Net income from continuing operations of $122.2 million, or $4.01 per diluted share, compared to net income from continuing operations of $53.3 million, or $1.78 per diluted share, in fiscal 2020 * Adjusted EBITDA of $262.7 million, up 28.5% * Homebuilding revenue of $2.1 billion, up 0.5% on a 4.4% increase in average selling price to $402.4 thousand, partially offset by a 3.7% decrease in home closings to 5,287 * Homebuilding gross margin was 18.9%, up 250 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 23.0%, up 200 basis points * SG&A as a percentage of total revenue was 11.4%, down 50 basis points * Net new orders of 5,564, down 11.6% on a 22.3% decrease in average community count to 127, partially offset by a 13.8% increase in sales/community/month to 3.7 * Backlog dollar value of $1,284.0 million, up 29.0% on a 11.0% increase in backlog units to 2,786 and a 16.2% increase in average selling price of homes in backlog to $460.9 thousand * Land acquisition and land development spending was $595.5 million, up 35.1% from $440.8 million * Repurchased a total of $80.7 million of debt, which consisted of a $50.0 million repayment of the Senior Unsecured Term Loan and $30.7 million of repurchases of the 5.875% Unsecured Senior Notes due October 2027

Beazer Homes Fiscal Fourth Quarter 2021 Highlights and Comparison to Fiscal Fourth Quarter 2020

* Net income from continuing operations of $48.4 million, or $1.57 per diluted share, compared to net income from continuing operations of $24.6 million, or $0.82 per diluted share, in fiscal fourth quarter 2020 * Adjusted EBITDA of $76.1 million, down 1.3% * Homebuilding revenue of $589.1 million, down 13.2% on a 19.0% decrease in home closings to 1,407, partially offset by a 7.1% increase in average selling price to $418.7 thousand * Homebuilding gross margin was 19.5%, up 240 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 23.2%, up 150 basis points * SG&A as a percentage of total revenue was 11.0%, down 10 basis points * Net new orders of 1,069, down 46.8% on a 32.1% decrease in sales/community/month to 3.0 and a 21.6% decrease in average community count to 119 * Controlled lots of 21,987, up 23.3% from 17,830 * Repurchased a total of $57.0 million of debt * Unrestricted cash at quarter end was $246.7 million; total liquidity was $496.7 million

The following provides additional details on the Company's performance during the fiscal fourth quarter 2021:

Profitability. Net income from continuing operations was $48.4 million, generating diluted earnings per share of $1.57. This included the impact of energy efficiency tax credits of $12.0 million, a loss on debt extinguishment of $0.4 million and inventory abandonments of $0.2 million. Operating income of $46.9 million increased by $11.3 million, or 31.7%, compared to $35.6 million in the previous year primarily driven by increased homebuilding gross margin and improved SG&A leverage. Fourth quarter Adjusted EBITDA of $76.1 million was down $1.0 million compared to the same period last year, primarily driven by lower home closings, partially offset by an increase in homebuilding gross margin.

Orders. Net new orders for the fourth quarter decreased to 1,069, down 46.8% from the prior year. The decrease in net new orders was driven by a 21.6% decrease in average community count to 119 and a 32.1% decrease in sales pace to 3.0 orders per community per month, down from 4.4 in the previous year which was the highest fourth quarter level in more than a decade. The reduction in sales pace is partially driven by our actions to moderate sales to better align with our production capacity given ongoing supply chain and labor pressures. The cancellation rate for the quarter was 11.7%, down 50 basis points from the previous year.

Backlog. The dollar value of homes in backlog as of September 30, 2021 increased 29.0% to $1,284.0 million, or 2,786 homes, compared to $995.3 million, or 2,509 homes, at the same time last year. The average selling price of homes in backlog was $460.9 thousand, up 16.2% year-over-year.

Homebuilding Revenue. Fourth quarter homebuilding revenue was $589.1 million, down 13.2% year-over-year. The decline in homebuilding revenue was primarily driven by a 19.0% decrease in home closings to 1,407 homes as a result of longer construction cycle times due to supply chain disruptions.

Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments, and amortized interest) was 23.2% for the fourth quarter, up 150 basis points year-over-year, driven primarily by pricing increases and lower sales incentives.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.0% for the quarter, down 10 basis points year-over-year. SG&A on an absolute dollar basis was down 14.5%.

Land Position. Controlled lots increased 23.3% to 21,987, compared to 17,830 from the prior year. Excluding land held for future development and land held for sale lots, active controlled lots was 21,422, up 26.7% year-over-year. Through the expansion of lot option agreements, 46.6% of total active lots, or 9,992 lots, were under contract compared to 34.8% of total active lots, or 5,878 lots, as of September 30, 2020.

Liquidity. At the close of the fourth quarter, the Company had $496.7 million of available liquidity, including $246.7 million of unrestricted cash and a fully undrawn revolving credit facility capacity of $250.0 million.

Debt Repurchases. During the quarter, the Company reduced debt by $57.0 million, which consisted of a $50.0 million repayment of its Senior Unsecured Term Loan and $7.0 million of repurchases of the Company's 5.875% Unsecured Senior Notes due October 2027 at an average price of $104.96 per $100 principal amount.

Commitment to Energy Efficiency

In December 2020, Beazer became the first national builder to publicly commit to ensuring that by the end of 2025 every home the Company builds will be Net Zero Energy Ready. Net Zero Energy Ready means that each home will have a gross HERS(r) index score (before any benefit of renewable energy production) of 45 or less, and homeowners will be able to achieve net zero energy consumption by attaching a properly sized renewable energy system.

Summary results for the fiscal year ended September 30, 2021 and 2020 are as follows:

Year Ended September 30,

2021 2020 Change*

New home orders, net of cancellations 5,564 6,293 (11.6 ) %

Orders per community per month 3.7 3.2 13.8 %

Average active community count 127 163 (22.3 ) %

Cancellation rates 11.1 % 15.8 % -470 bps



Total home closings 5,287 5,492 (3.7 ) %

Average selling price (ASP) from closings $ 402.4 $ 385.5 4.4 %(in thousands)

Homebuilding revenue (in millions) $ 2,127.7 $ 2,116.9 0.5 %

Homebuilding gross margin 18.9 % 16.4 % 250 bps

Homebuilding gross margin, excluding 18.9 % 16.5 % 240 bpsimpairments and abandonments (I&A)

Homebuilding gross margin, excluding I&A 23.0 % 21.0 % 200 bpsand interest amortized to cost of sales



Income from continuing operations before $ 143.7 $ 71.3 $ 72.4 income taxes (in millions)

Expense from income taxes (in millions) $ 21.5 $ 18.0 $ 3.6

Income from continuing operations (in $ 122.2 $ 53.3 $ 68.9 millions)

Basic income per share from continuing $ 4.08 $ 1.80 $ 2.28 operations

Diluted income per share from continuing $ 4.01 $ 1.78 $ 2.23 operations



Net income (in millions) $ 122.0 $ 52.2 $ 69.8



Land acquisition and land development $ 595.5 $ 440.8 $ 154.7 spending (in millions)



Adjusted EBITDA (in millions) $ 262.7 $ 204.4 $ 58.3

* Change is calculated using unrounded numbers.

Summary results for the quarter ended September 30, 2021 and 2020 are as follows:

Quarter Ended September 30,

2021 2020 Change*

New home orders, net of cancellations 1,069 2,009 (46.8 ) %

Orders per community per month 3.0 4.4 (32.1 ) %

Average active community count 119 151 (21.6 ) %

Actual community count at quarter-end 117 145 (19.3 ) %

Cancellation rates 11.7 % 12.2 % -50 bps



Total home closings 1,407 1,737 (19.0 ) %

ASP from closings (in thousands) $ 418.7 $ 390.9 7.1 %

Homebuilding revenue (in millions) $ 589.1 $ 679.1 (13.2 ) %

Homebuilding gross margin 19.5 % 17.1 % 240 bps

Homebuilding gross margin, excluding I&A 19.5 % 17.2 % 230 bps

Homebuilding gross margin, excluding I&A 23.2 % 21.7 % 150 bpsand interest amortized to cost of sales



Income from continuing operations before $ 47.3 $ 33.7 $ 13.6 income taxes (in millions)

(Benefit) expense from income taxes (in $ (1.1 ) $ 9.0 $ (10.1 )millions)

Income from continuing operations (in $ 48.4 $ 24.6 $ 23.7 millions)

Basic income per share from continuing $ 1.61 $ 0.83 $ 0.78 operations

Diluted income per share from continuing $ 1.57 $ 0.82 $ 0.75 operations



Net income (in millions) $ 48.4 $ 23.7 $ 24.7



Land acquisition and land development $ 245.5 $ 116.1 $ 129.5 spending (in millions)



Adjusted EBITDA (in millions) $ 76.1 $ 77.1 $ (1.0 )

* Change is calculated using unroundednumbers.

As of September 30,

2021 2020 Change

Backlog units 2,786 2,509 11.0 %

Dollar value of backlog (in millions) $ 1,284.0 $ 995.3 29.0 %

ASP in backlog (in thousands) $ 460.9 $ 396.7 16.2 %

Land position and lots controlled 21,987 17,830 23.3 %

Conference Call

The Company will hold a conference call on November 10, 2021 at 5:00 p.m. ET to discuss these results. The public may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website at www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the passcode "8571348." A replay of the conference call will be available, until 10:00 PM ET on November 17, 2021 at 866-359-6498 (for international callers, dial 203-369-0155) with pass code "3740."

About Beazer Homes

Headquartered in Atlanta, Beazer Homes (NYSE: BZH) is one of the country's largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in - saving you money every month. With Beazer's Choice Plans(tm), you can personalize your primary living areas - giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands over the life of your loan.

We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on Facebook, Instagram 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 cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (ii) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation and governmental actions, each of which is outside our control and affects the affordability of, and demand for, the homes we sell; (iii) potential negative impacts of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and below, may include a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home, an inability to sell and build homes in a typical manner or at all, increased costs or decreased supply of building materials, including lumber, or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations, and recognizing charges in future periods, which may be material, for goodwill impairments, inventory impairments and/or land option contract abandonments; (iv) supply chain challenges negatively impacting our homebuilding production, including shortages of raw materials and other critical components such as windows, doors, and appliances; (v) shortages of or increased costs for labor used in housing production, and the level of quality and craftsmanship provided by such labor; (vi) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select California assets during the second quarter of fiscal 2019; (vii) factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; (viii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; (ix) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (x) terrorist acts, protests and civil unrest, political uncertainty, natural disasters, acts of war or other factors over which the Company has no control; (xi) inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled; (xii) increases in mortgage interest rates, increased disruption in the availability of mortgage financing, changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes or an increased number of foreclosures; (xiii) increased competition or delays in reacting to changing consumer preferences in home design; (xiv) natural disasters or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; (xv) the potential recoverability of our deferred tax assets; (xvi) increases in corporate tax rates; (xvii) 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 or governmental policies, including those related to the environment; (xviii) the results of litigation or government proceedings and fulfillment of any related obligations; (xix) the impact of construction defect and home warranty claims; (xx) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xxi) the impact of information technology failures, cybersecurity issues or data security breaches; (xxii) the impact of governmental regulations on homebuilding in key markets, such as regulations limiting the availability of water; and (xxiii) the success of our ESG initiatives, including our ability to meet our goal that every home we build will be Net Zero Energy Ready by 2025 as well as the success of any other related partnerships or pilot programs we may enter into in order to increase the energy efficiency of our homes and prepare for a Net Zero future.

Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all such factors.

-Tables Follow-

BEAZER HOMES USA, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Fiscal Year Ended

September 30, September 30,

in thousands (except 2021 2020 2021 2020per share data)

Total revenue $ 590,943 $ 686,748 $ 2,140,303 $ 2,127,077

Home construction and 475,273 569,511 1,735,195 1,776,534 land sales expenses

Inventory impairments 157 637 853 2,903 and abandonments

Gross profit 115,513 116,600 404,255 347,640

Commissions 21,779 26,847 80,125 82,507

General andadministrative 43,382 49,361 163,285 170,386 expenses

Depreciation and 3,482 4,806 13,976 15,640 amortization

Operating income 46,870 35,586 146,869 79,107

Equity in income ofunconsolidated 170 209 594 347 entities

Loss onextinguishment of (412 ) - (2,025 ) - debt, net

Other income 644 (2,135 ) (1,712 ) (8,165 )(expense), net

Income fromcontinuing operations 47,272 33,660 143,726 71,289 before income taxes

(Benefit) expense (1,087 ) 9,033 21,546 17,973 from income taxes

Income from 48,359 24,627 122,180 53,316 continuing operations

Income (loss) fromdiscontinued 2 (949 ) (159 ) (1,090 )operations, net oftax

Net income $ 48,361 $ 23,678 $ 122,021 $ 52,226

Weighted-average number of shares:

Basic 30,069 29,603 29,954 29,704

Diluted 30,867 30,005 30,437 29,948

Basic income (loss) per share:

Continuing operations $ 1.61 $ 0.83 $ 4.08 $ 1.80

Discontinued - (0.03 ) (0.01 ) (0.04 )operations

Total $ 1.61 $ 0.80 $ 4.07 $ 1.76

Diluted income (loss) per share:

Continuing operations $ 1.57 $ 0.82 $ 4.01 $ 1.78

Discontinued - (0.03 ) - (0.04 )operations

Total $ 1.57 $ 0.79 $ 4.01 $ 1.74



Three Months Ended Fiscal Year Ended

September 30, September 30,

Capitalized Interest 2021 2020 2021 2020in Inventory

Capitalized interestin inventory, $ 109,943 $ 132,096 $ 119,659 $ 136,565 beginning of period

Interest incurred 18,880 20,385 77,397 87,224

Capitalized interest - - - (792 )impaired

Interest expense notqualified forcapitalization and - (2,095 ) (2,781 ) (8,468 )included as otherexpense

Capitalized interestamortized to home (21,838 ) (30,727 ) (87,290 ) (94,870 )construction and landsales expenses

Capitalized interestin inventory, end of $ 106,985 $ 119,659 $ 106,985 $ 119,659period

BEAZER HOMES USA, INC.

CONSOLIDATED BALANCE SHEETS

in thousands (except share and per share data)

September 30, 2021

September 30, 2020

ASSETS

Cash and cash equivalents

$

246,715

$

327,693

Restricted cash

27,428

14,835

Accounts receivable (net of allowance of $290 and $358, respectively)

25,685

19,817

Income tax receivable

9,929

9,252

Owned inventory

1,501,602

1,350,738

Investments in unconsolidated entities

4,464

4,003

Deferred tax assets, net

204,766

225,143

Property and equipment, net

22,885

22,280

Operating lease right-of-use assets

12,344

13,103

Goodwill

11,376

11,376

Other assets

11,616

9,240

Total assets

$

2,078,810

$

2,007,480

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable

$

133,391

$

132,192

Operating lease liabilities

14,154

15,333

Other liabilities

152,351

135,983

Total debt (net of debt issuance costs of $8,983 and $10,891, respectively)

1,054,030

1,130,801

Total liabilities

1,353,926

1,414,309

Stockholders' equity:

Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)

-

-

Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,294,198 issued and outstanding and 31,012,326 issued and outstanding, respectively)

31

31

Paid-in capital

866,158

856,466

Accumulated deficit

(141,305

)

(263,326

)

Total stockholders' equity

724,884

593,171

Total liabilities and stockholders' equity

$

2,078,810

$

2,007,480

Inventory Breakdown

Homes under construction

$

648,283

$

525,021

Land under development

648,404

589,763

Land held for future development

19,879

28,531

Land held for sale

9,179

12,622

Capitalized interest

106,985

119,659

Model homes

68,872

75,142

Total owned inventory

$

1,501,602

$

1,350,738

BEAZER HOMES USA, INC.

CONSOLIDATED BALANCE SHEETS

in thousands (except share and per share data) September 30, September 30, 2021 2020

ASSETS

Cash and cash equivalents $ 246,715 $ 327,693

Restricted cash 27,428 14,835

Accounts receivable (net of allowance of $290 and 25,685 19,817 $358, respectively)

Income tax receivable 9,929 9,252

Owned inventory 1,501,602 1,350,738

Investments in unconsolidated entities 4,464 4,003

Deferred tax assets, net 204,766 225,143

Property and equipment, net 22,885 22,280

Operating lease right-of-use assets 12,344 13,103

Goodwill 11,376 11,376

Other assets 11,616 9,240

Total assets $ 2,078,810 $ 2,007,480

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable $ 133,391 $ 132,192

Operating lease liabilities 14,154 15,333

Other liabilities 152,351 135,983

Total debt (net of debt issuance costs of $8,983 1,054,030 1,130,801 and $10,891, respectively)

Total liabilities 1,353,926 1,414,309

Stockholders' equity:

Preferred stock (par value $0.01 per share, - - 5,000,000 shares authorized, no shares issued)

Common stock (par value $0.001 per share,63,000,000 shares authorized, 31,294,198 issued 31 31 and outstanding and 31,012,326 issued andoutstanding, respectively)

Paid-in capital 866,158 856,466

Accumulated deficit (141,305 ) (263,326 )

Total stockholders' equity 724,884 593,171

Total liabilities and stockholders' equity $ 2,078,810 $ 2,007,480



Inventory Breakdown

Homes under construction $ 648,283 $ 525,021

Land under development 648,404 589,763

Land held for future development 19,879 28,531

Land held for sale 9,179 12,622

Capitalized interest 106,985 119,659

Model homes 68,872 75,142

Total owned inventory $ 1,501,602 $ 1,350,738

BEAZER HOMES USA, INC.

CONSOLIDATED OPERATING AND FINANCIAL DATA - CONTINUING OPERATIONS

Quarter Ended September 30,

Fiscal Year Ended September 30,

SELECTED OPERATING DATA

2021

2020

2021

2020

Closings:

West region

781

958

2,945

3,206

East region

311

398

1,185

1,045

Southeast region

315

381

1,157

1,241

Total closings

1,407

1,737

5,287

5,492

New orders, net of cancellations:

West region

620

1,124

3,233

3,589

East region

232

457

1,172

1,328

Southeast region

217

428

1,159

1,376

Total new orders, net

1,069

2,009

5,564

6,293

Fiscal Year Ended September 30,

Backlog units at end of period:

2021

2020

West region

1,653

1,365

East region

611

624

Southeast region

522

520

Total backlog units

2,786

2,509

Dollar value of backlog at end of period (in millions)

$

1,284.0

$

995.3

Quarter Ended September 30,

Fiscal Year Ended September 30,

SUPPLEMENTAL FINANCIAL DATA

2021

2020

2021

2020

Homebuilding revenue:

West region

$

304,591

$

355,448

$

1,110,208

$

1,180,577

East region

155,639

180,385

565,989

476,167

Southeast region

128,894

143,227

451,503

460,166

Total homebuilding revenue

$

589,124

$

679,060

$

2,127,700

$

2,116,910

Revenues:

Homebuilding

$

589,124

$

679,060

$

2,127,700

$

2,116,910

Land sales and other

1,819

7,688

12,603

10,167

Total revenues

$

590,943

$

686,748

$

2,140,303

$

2,127,077

Gross profit:

Homebuilding

$

114,717

$

115,976

$

401,720

$

348,110

Land sales and other

796

624

2,535

(470

)

Total gross profit

$

115,513

$

116,600

$

404,255

$

347,640

Reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales 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. These measures should not be considered alternatives to homebuilding gross profit and gross margin determined in accordance with GAAP as an indicator of operating performance.

BEAZER HOMES USA, INC.

CONSOLIDATED OPERATING AND FINANCIAL DATA - CONTINUING OPERATIONS

Quarter Ended Fiscal Year Ended September September 30, 30,

SELECTED OPERATING DATA 2021 2020 2021 2020

Closings:

West region 781 958 2,945 3,206

East region 311 398 1,185 1,045

Southeast region 315 381 1,157 1,241

Total closings 1,407 1,737 5,287 5,492



New orders, net of cancellations:

West region 620 1,124 3,233 3,589

East region 232 457 1,172 1,328

Southeast region 217 428 1,159 1,376

Total new orders, net 1,069 2,009 5,564 6,293



Fiscal Year Ended September 30,

Backlog units at end of 2021 2020period:

West region 1,653 1,365

East region 611 624

Southeast region 522 520

Total backlog units 2,786 2,509

Dollar value of backlog at $ 1,284.0 $ 995.3 end of period (in millions)

Quarter Ended Fiscal Year Ended September September 30, 30,

SUPPLEMENTAL FINANCIAL DATA 2021 2020 2021 2020

Homebuilding revenue:

West region $ 304,591 $ 355,448 $ 1,110,208 $ 1,180,577

East region 155,639 180,385 565,989 476,167

Southeast region 128,894 143,227 451,503 460,166

Total homebuilding revenue $ 589,124 $ 679,060 $ 2,127,700 $ 2,116,910



Revenues:

Homebuilding $ 589,124 $ 679,060 $ 2,127,700 $ 2,116,910

Land sales and other 1,819 7,688 12,603 10,167

Total revenues $ 590,943 $ 686,748 $ 2,140,303 $ 2,127,077



Gross profit:

Homebuilding $ 114,717 $ 115,976 $ 401,720 $ 348,110

Land sales and other 796 624 2,535 (470 )

Total gross profit $ 115,513 $ 116,600 $ 404,255 $ 347,640

Reconciliation of homebuilding gross profit and the related gross margin excluding impairments and abandonments and interest amortized to cost of sales 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. These measures should not be considered alternatives to homebuilding gross profit and gross margin determined in accordance with GAAP as an indicator of operating performance.

Quarter Ended September 30, Fiscal Year Ended September 30,

2021 2020 2021 2020

Homebuildinggross profit $ 114,717 19.5 % $ 115,976 17.1 % $ 401,720 18.9 % $ 348,110 16.4 %/margin

Inventoryimpairmentsand 157 637 853 1,646 abandonments(I&A)

Homebuildinggross profit/margin 114,874 19.5 % 116,613 17.2 % 402,573 18.9 % 349,756 16.5 %excluding I&A

Interestamortized to 21,838 30,701 87,037 94,844 cost ofsales

Homebuildinggross profit/marginexcluding I&A and $ 136,712 23.2 % $ 147,314 21.7 % $ 489,610 23.0 % $ 444,600 21.0 %interestamortized tocost ofsales

Reconciliation of Adjusted EBITDA to total company net income, 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. These EBITDA measures should not be considered alternatives to net income determined in accordance with GAAP as an indicator of operating performance.

Quarter Ended September Fiscal Year Ended 30, September 30,

2021 2020 2021 2020

Net income $ 48,361 $ 23,678 $ 122,021 $ 52,226

(Benefit) expense from income (1,086 ) 8,764 21,501 17,664taxes

Interest amortized to homeconstruction and land sales 21,838 30,727 87,290 95,662expenses and capitalizedinterest impaired

Interest expense not - 2,095 2,781 8,468qualified for capitalization

EBIT 69,113 65,264 233,593 174,020

Depreciation and amortization 3,482 4,806 13,976 15,640

EBITDA 72,595 70,070 247,569 189,660

Stock-based compensation 2,913 5,167 12,167 10,036expense

Loss on extinguishment of 412 - 2,025 -debt

Inventory impairments and 157 637 853 2,111abandonments ^(a)

Restructuring and severance - (44 ) (10 ) 1,317expenses

Litigation settlement in - 1,260 120 1,260discontinued operations

Adjusted EBITDA $ 76,077 $ 77,090 $ 262,724 $ 204,384

(a)

In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled "Interest amortized to home construction and land sales expenses and capitalized interest impaired."

View source version on businesswire.com: https://www.businesswire.com/news/home/20211110006201/en/

CONTACT: Beazer Homes USA, Inc. David I. Goldberg Sr. Vice President & Chief Financial Officer 770-829-3700 investor.relations@beazer.com