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Dec 31, 2021
Beazer Homes Q1 2022 Earnings Report
Reported strong first quarter results driven by significant gains in operating margin and adjusted EBITDA.
Key Takeaways
Beazer Homes reported a strong first quarter with net income more than doubling compared to the prior year. The company's performance was driven by gains in operating margin and adjusted EBITDA. They expect full-year results to exceed the previously communicated target of $5.00 EPS.
Net income from continuing operations was $34.9 million, or $1.14 per diluted share, compared to $12.0 million, or $0.40 per diluted share, in fiscal first quarter 2021.
Adjusted EBITDA of $61.1 million, up 40.1%.
Homebuilding revenue of $446.7 million, up 5.3% on a 15.1% increase in average selling price to $438.4 thousand, partially offset by a 8.5% decrease in home closings to 1,019.
Homebuilding gross margin was 20.9%, up 330 basis points.
Beazer Homes
Beazer Homes
Beazer Homes Revenue by Segment
Beazer Homes Revenue by Geographic Location
Revenue by Segment
Homebuilding Revenue
CapyFin.comLand Sales and Other Revenue
CapyFin.comRevenue by Geographic Location
West Region Revenue
CapyFin.comEast Region Revenue
CapyFin.comSoutheast Region Revenue
CapyFin.com Forward Guidance
The new home market continues to be characterized by strong demand and limited supply, supported by growth in both employment and wages. Given this backdrop, the strength in our first quarter results and the visibility we have into our backlog, we are confident our full-year results will exceed our previously communicated target of $5.00 despite continuing industry-wide challenges in labor and material availability. Incrementally, we plan to realize full-year energy efficiency tax credits which should add about $0.40 to earnings. We also expect further growth in our active lot position as we achieve our multi-year goal of reducing total debt below $1 billion during the fiscal year.
Positive Outlook
- Strong demand in the new home market.
- Limited supply supporting market conditions.
- Growth in employment and wages boosting demand.
- Expect full-year results to exceed the previously communicated target of $5.00 EPS.
- Plan to realize full-year energy efficiency tax credits, adding about $0.40 to earnings.
Challenges Ahead
- Continuing industry-wide challenges in labor availability.
- Continuing industry-wide challenges in material availability.
- Potential negative impacts of the COVID-19 pandemic
- Increases in mortgage interest rates
- Increased competition or delays in reacting to changing consumer preferences in home design
Revenue & Expenses
Visualization of income flow from segment revenue to net income