Single family home-builder Beazer Homes USA, Inc. (BZH) reported Friday a narrower loss for the third quarter, as revenues grew from higher home sales and improved prices. The loss was, however, wider than analysts' estimates.
Allan Merrill, CEO of the company said, "We generated improvement in new home orders, home closings and backlog, recording our fourth consecutive quarter of year-over-year increases in these metrics. This improvement reflects both the continuing operational benefits of our path-to-profitability strategies and gradually improving conditions in the housing market."
During the quarter, total home closings increased 40.2 percent to 1,109 homes. Average sales price from closings improved to $227.3 thousand from $213 thousand in the prior year.
New orders were up 28 percent to 1,555 homes. Cancellation rates were 24.5 percent, compared with 24.3 percent a year earlier.
As of June 30, total backlog was 2,421 homes with a sales value of $572.8 million, higher than 1,820 homes with a sales value of $431.2 million last year.
Beazer Homes' quarterly net loss narrowed to $39.88 million or $0.40 per share from $59.12 million or $0.80 per share in the prior-year quarter. Net loss from continuing operations was $0.38 per share, compared to $0.75 per share a year ago.
On average, 10 analysts polled by Thomson Reuters expected loss of $0.33 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenues for the quarter grew to $254.56 million from $172.83 million in the preceding year, but came below analysts' estimate of $263.89 million. Home construction and land sales expenses were higher for the current quarter.
Gross profit margin improved to 8.3 percent from 8 percent in the year 2011.
Beazer Homes noted that subsequent to the third-quarter end, it completed underwritten public offerings of 22 million shares of its common stock at $2.90 per share and 4.6 million 7.5 percent tangible equity units and a private placement $300 million of 6.625 percent senior secured notes due 2018, generating net proceeds of about $466 million.
Merrill added that the company expects these actions to help accelerate its return to profitability.
BZH closed Thursday's regular trading at $2.31 on the NYSE. In the pre-market activity, the shares are up 3.03 percent.
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