DOW JONES NEWSWIRES
Beazer Homes USA Inc. (BZH) reported strong growth in fiscal
first-quarter orders, led by a resurgence in the western U.S.
Striking while the news is good, the homebuilder also said it is
offering 18 million common shares and $50 million of notes to raise
funds that will be used to replenish funds after it redeemed its 8
5/8% senior notes due 2011 and for other purposes.
However, those offerings chilled Wall Street sentiment, sending
Beazer's shares down 7.6% to $5.01 in after-hours trade.
Signals about the housing market have been mixed in recent
months as the building sector continues to limp toward recovery and
high unemployment persists, but the market has benefited from
extended and expanded federal tax credits aimed at propping up
sales.
Beazer, the nation's ninth-largest builder by annual closings,
wasn't immediately available for comment.
For the quarter ended Dec. 31, the company said orders rose 41%
to 357 units in the West, while the East rose 36% to 274. The
Southeast lagged but still rose 23% to 97.
Orders are an indicator of future sales but aren't necessarily
done deals. Buyers can drop out of purchases if the housing market
weakens.
On closings, the East led with a 43% increase to 388 units. The
other two regions reported declines, with the West falling 7.5% to
406 and the Southeast down 7.2% to 167. Overall, closings were up
8%.
In the fiscal fourth quarter, closings shrank 24% from 2008,
while new orders rose 2.4%.
With the stock offering, Beazer's shares outstanding will rise
at least 45%.
The debt sold will be in the form of mandatory convertible
subordinated notes due 2013. Both offerings have 15% over-allotment
options.
-By Jay Miller, Dow Jones Newswires; 212-416-2355;
jay.miller@dowjones.com
(Dawn Wotapka contributed to this report.)