ATLANTA-- Beazer Homes USA, Inc. (NYSE: BZH) on Thursday reported a net loss from continuing operations of $1.3 million, or ($0.04) per share for the fiscal second quarter ended March 31. Analysts were expecting a profit of $0.02 per share. The loss included a $1.6 million loss on the retirement of debt and $1.8 million in impairment charges as the company continued its efforts to shed debt, which at quarter's end totaled $1.46 billion. The loss fell from $2.1 million for the comparable quarter last year.
Shares of BZH were under heavy selling pressure during late afternoon trading Thursday, trading down 13.5% at $8.57.
Home building revenue rose 31.8% to $377.3 million as the average selling price climbed 7.3% to $328,000. Gross margin minus impairments fell 240 basis points to 15.9%.
New orders declined 9.4% to 1,538 while community count remained stable at 163. The cancellation rate as up 90 basis points to 17.6%.
Closings rose 22.9% to 1,150; compared to last year's quarter, backlog fell 9.2% in units to 2,300 with a dollar value of $773 million, down 5.1%. Land and lots controlled fell 9.6% to 25,132.
Beazer ended the quarter with nearly $135 million of unrestricted cash and total available liquidity of more than $250 million. During the quarter, the company repurchased an additional $18.4 million of debt, bringing the year to date total to $41.3 million. The company said it intends to reduce debt by a total of at least $100 million during Fiscal 2016.
The company has set an objective to achieve $2 billion in revenue with adjusted EBITDA of at least $200 million, referred to as the “2B-10” Plan. It reported that, for the trailing twelve months, revenue was $1.8 billion, up 22.3%, and adjusted EBITDA of $160.1 million was up more than $31.0 million, or 24.0%, compared to last year.
“Our second-quarter results demonstrated our ability to successfully grow EBITDA while reducing leverage. Although uncertainty in the broader economy contributed to an uneven start to the spring selling season, we were encouraged by more consistent new home orders as the quarter progressed,” said Allan Merrill, CEO of Beazer Homes.
Merrill continued, “We are pleased with our results for the quarter and so far this year and look forward to further progress on our joint '2B-10' and deleveraging objectives in the second half of the year.”