Beazer Homes USA, Inc.

Transcription

1 Beazer Homes USA, Inc. May 2016 Wells Fargo Presentation Trammel Ridge Atlanta, GA 1 Cypress, TX Hayden Lakes Community

2 2 nd Quarter Highlights Revenue $385.6 million in Total Revenue, up 28.8% Adjusted EBITDA* $26.2 million of Adjusted EBITDA*, up 32.5% 6.8% Adjusted EBITDA* Margin of Total Revenue, up 20 bps SG&A 13.9% of Total Revenue, down 100 bps Closings 1,150 Closings, up 22.9% Backlog Conversion rate of 60.1% Debt Repurchase 2016 Senior Notes retired $140 million 2-year Term Loan issued $18.4 million in open market debt reduction *Details are included on the Adjusted EBITDA Reconciliation slide in the appendix 2

3 2B-10 Plan Ranges "2B-10" Plan Ranges Revenue Sales / Community / Month Average Sales Price ("ASP") $330K - $340K Average Community Count $2 Billion Revenue Margins HB Gross Margin* % 21% - 22% SG&A (% of Revenue) 11% - 12% 10% EBITDA Margin 2B-10 is a multi-year plan to reach $2 billion in Revenue and 10% EBITDA Margins * Excludes impairments, abandonments and interest included in cost of sales 3

4 Increases in LTM Revenue and EBITDA Total Revenue LTM Adjusted EBITDA LTM* $ in millions $1,800 $1,792 $ in millions $180 $1,750 $1,700 $1,650 $1,627 $1,706 $170 $160 $150 $144.1 $153.7 $160.1 $1,600 $1,550 $1,540 $140 $130 $129.1 $134.4 $1,500 $1,450 $1,466 $120 $110 $1,400 $100 $1,350 $90 $1,300 $80 *Adjusted EBITDA excludes the impact of certain warranty items (net of expected insurance recoveries) and a litigation settlement recorded in discontinued operations; details are included on the Adjusted EBITDA Reconciliation slide in the appendix 4

5 Sales Pace Remains Near 2B-10 Goals Sales per Active Community per Month B-10 Range, LTM Sales per Active Community per Month, LTM Sales per Active Community per Month, Quarterly Note: An active community has achieved at least 2 initial sales and has at least 2 unsold units remaining 5

6 Backlog ASP Suggests Further Growth $ in thousands $350 $340 $340 "2B-10" Range, LTM Basis $330 $330 $328 $320 $318 $323 $321 $310 $300 $290 $280 $306 $295 $321 $304 $325 $314 $328 $318 $332 $322 $336 $270 Average Sales Price, LTM Backlog ASP at Quarter End Average Sales Price, Quarterly 6

7 Backlog Detail Q2 Q2 Quarter Ending Backlog (units) 2,533 2,300 Quarter Ending Backlog ($ in millions) $ $ ASP in Backlog ($ in thousands) $ $ Quarter Beginning Backlog 1,771 1,912 Scheduled to Close in Future Quarters (914) (953) Backlog Scheduled to Close in the Quarter Backlog Activity: Cancellations (91) (86) Pushed to Future Quarters (124) (105) Close Date Brought Forward Sold & Closed During the Quarter Total Closings in the Quarter 936 1,150 Backlog Conversion Rate 52.9% 60.1% 7

8 Community Count Approaching 2B-10 Target Active Communities Active Community Count "2B-10" Active Community Count, LTM Active Community Count, Quarterly Community Count Activity Active Communities 166 Communities Under Development 34 Communities Approved But Not Yet Closed 46 Near-Term Closeouts (next 6 months) 32 The information above is as of 03/31/16 Note: An active community has achieved at least 2 initial sales and has at least 2 unsold units remaining 8

9 Gross Margin Homebuilding Gross Margin* Homebuilding Gross Profit Dollars Per Closing* $ in thousands 23% 22% 21% 20% 19% 18% 21.7% 22.2% "2B-10" Range, LTM 21.3% 22% 21.3% 21% 20.4% 20.2% 21.8% 21.5% 21.2% 20.9% $68 $67 $66 $65 $64 $ % $62 16% $61 15% $60 HB Gross Margins, LTM HB Gross Margins, Quarterly HB Gross Profit per Closing, LTM *Excludes impairments, abandonments and interest included in cost of sales as well as certain warranty items; details are included on the Adjusted EBITDA Reconciliation slide in the appendix. 9

10 G&A Leverage as Revenue Grows 16% 14% 12% 14.9% 12.8% SG&A Leverage (% of Total Revenue) 10.4% 13.2% "2B-10" Range LTM 12% 11% 13.9% $ in thousands $70 $65 60 $60 $55 $50 LTM Homebuilding Gross Profit vs. SG&A per Closing % 8% 13.5% 13.1% 12.8% 12.3% 12.2% $45 $40 $ % $30 Q3 Q4 Q1 FY14 SG&A % - LTM HB Gross Profit per Closing, LTM SG&A Per Closing, LTM *Excludes impairments, abandonments and interest included in cost of sales as well as certain warranty items; details are included on the Adjusted EBITDA Reconciliation slide in the appendix 10

11 Managing Land Spend $ in millions $120 $100 $102.1 $105.9 $99.8 $111.7 $45.0 $83.6 $80 $56.7 $60.2 $54.9 $60 $41.3 $40 $66.7 $20 $45.4 $45.7 $44.9 $42.3 $0 Land Land Development 11

12 Attractive Supply of Lots $ in millions $1,800 $1,700 $1,600 $1,500 $1,400 $1,300 $1,200 $1,100 $1,000 $1,152 At March 31, 2016: 25,132 total controlled lots 19,958 active lots Total Inventory $1,488 $1,757 $1,751 Q2 Q2 Q2 Q2 FY13 FY14 Active Lots 18,439 22,736 22,271 19,958 % of Optioned 23% 25% 27% 30% Lot Position at March 31, ,591 4,469 4,886 5,994 6,487 Immediate Availability Near-Term Availability Homes Under Construction Owned Land Under Development Finished Lots Lots Under Option Long-Term and Non-Strategic Assets Land Held for Future Development Property Held for Sale 12

13 Improving Capital Efficiency 12.0% LTM EBITDA/Inventory Ratio 9.0% 9.1% 7.0% 7.3% 6.0% 3.6% 3.0% 0.0% Q2 FY13 Q2 FY14 Q2 Q2 EBITDA/Inventory 13

14 Maturity Schedule as of 3/31/2016 $ in millions $600 $400 Approximately $268 million of Liquidity $225.2 Retired all $148 million of outstanding 2016 Senior Notes, entered into a $140 million Two- Year Term Loan and repurchased various other debt for a Q2 net debt reduction of $18.4 million $17.5 $200 $116.1 $17.3 $300.0 $324.4 $- $200.0 $200.0 $134.9 $52.5 $70.0 3/31/ $58.8 Undrawn Revolver Restricted Cash - LC/Escrow Unrestricted Cash Secured Term Loan Senior Secured Debt Senior Unsecured Debt Junior Debt - Net of Accretion Notes: -Based on calendar years -There are an additional $16.5 million of Secured Notes on the balance sheet with various maturity dates 14

15 Goals & Achievements Generate Significant EBITDA Growth in Year over year EBITDA growth in Q2 of over 32% YTD EBITDA growth of over 44% Drive Greater Capital Efficiency Grew EBITDA at dramatically faster pace than Inventory Reduce Leverage & Lower Interest Expense Fully paid-off 2016 Notes Retired more than $41million of net debt YTD Interest run-rate savings greater than $6 million 15