Losses appear to be widening for Beazer Homes, which filed quarterly financial reports for its first and second quarters of fiscal 2008.
In the first quarter, which ended Dec. 31, 2007, Beazer lost $138 million or $3.59 per diluted share, on $503 million in revenue. It also noted $169 million in write-downs for unsold inventory, land, and forfeited deposits on land options. Closings totaled 2,006 homes.
Beazer’s negative numbers grew in the second quarter, which ended March 31, with a net loss of $230 million or $5.96 per diluted share. Revenue declined to $405 million, a 51 percent slide compared to the same period a year ago.
Similarly, both net orders and deliveries decreased in the second quarter. Year-over-year, Beazer’s closings dropped 43 percent to 1,568. Net new orders fell 52 percent, to 1,956.
Beazer also recorded $268 million in impairments for the quarter, which includes inventory write-downs, abandoned land options, and joint venture investments.
The overdue reports have caused problems for the builder; one bank recently notified the company that Beazer was in default because it had not filed these required financial statements.
Beazer also remains under investigation by the Federal Bureau of Investigation and the Securities and Exchange Commission for financial irregularities and its mortgage origination business, which was closed earlier this year.
Alison Rice is senior editor, online, for BUILDER magazine.
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