Beazer Homes USA Inc.'s (BZH) fiscal third-quarter loss widened
as the homebuilder saw closings fall in each of its three regions
and revenue nearly halve from the year earlier period.
The results continue a sluggish earnings season as homebuilders
continue to struggle in the fifth year of the industry downturn.
Last month, NVR Inc. (NVR), long the sector's top performer because
it made money during the downturn, said it saw profits slashed by
nearly half when compared with a year earlier.
Beazer faced a series of challenges during the quarter,
including the June exit of former Chief Executive Ian McCarthy just
months after he agreed to repay $6.5 million and return company
stock as a settlement with the Securities and Exchange Commission.
McCarthy's replacement, Allan Merrill, will likely seek to shake up
the troubled company.
For the quarter ended June 30, Beazer posted a loss of $59.1
million, or 80 cents a share, compared with a year-earlier loss of
$27.8 million, or 41 cents a share. The current period included a
net loss of $3.4 million from discontinued operations, while the
prior period included a net loss from discontinued operations of
$4.4 million.
Revenue slid 46% to $172.8 million. Analysts polled by Thomson
Reuters expected a per-share loss of 42 cents on $232 million in
revenue.
Homebuilding gross margin, excluding writedowns and
abandonments, slipped to 11.1% from 12.9% on a continuing
operations basis. The builder's cancellation rate fell to 24.3%
from 29.3%.
Closings tumbled in each of the company's three regions, yet
total new orders rose 20% from a year earlier.
Shares closed Monday at $1.94 and were inactive in recent
premarket trading. Through the latest close, the stock is down 64%
since the start of the year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com