Beazer Homes USA, Inc. May 2016 Wells Fargo Presentation Trammel Ridge Atlanta, GA 1 Cypress, TX Hayden Lakes Community
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
2B-10 Plan Ranges "2B-10" Plan Ranges Revenue Sales / Community / Month 2.8-3.2 Average Sales Price ("ASP") $330K - $340K Average Community Count 170-175 $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
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
Sales Pace Remains Near 2B-10 Goals Sales per Active Community per Month 4.0 3.5 3.0 3.5 3.2 2.8 2B-10 Range, LTM 3.1 3.1 2.5 2.4 2.0 1.8 1.5 1.0 2.8 2.8 2.8 2.7 2.6 0.5 0.0 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
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 $270 Average Sales Price, LTM Backlog ASP at Quarter End Average Sales Price, Quarterly 6
Backlog Detail Q2 Q2 Quarter Ending Backlog (units) 2,533 2,300 Quarter Ending Backlog ($ in millions) $ 814.5 $ 772.7 ASP in Backlog ($ in thousands) $ 321.6 $ 336.0 Quarter Beginning Backlog 1,771 1,912 Scheduled to Close in Future Quarters (914) (953) Backlog Scheduled to Close in the Quarter 857 959 Backlog Activity: Cancellations (91) (86) Pushed to Future Quarters (124) (105) Close Date Brought Forward 33 97 Sold & Closed During the Quarter 261 285 Total Closings in the Quarter 936 1,150 Backlog Conversion Rate 52.9% 60.1% 7
Community Count Approaching 2B-10 Target Active Communities 180 175 170 165 160 155 150 145 140 135 130 175 170 160 151 Active Community Count "2B-10" 164 164 157 161 169 166 165 166 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
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 $63 65.4 66.3 67.4 67.5 67.4 17% $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
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 67 67 67 63 64 65 66 10% 8% 13.5% 13.1% 12.8% 12.3% 12.2% $45 $40 $35 38 39 41 42 42 41 41 41 6% $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
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
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, 2016 705 2,591 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
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
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 3/31/2016 2016 2017 2018 2019 2020 2021 2022 2023 2036 $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
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