Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2023 | Apr. 24, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-12822 | |
Entity Registrant Name | BEAZER HOMES USA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-2086934 | |
Entity Address, Address Line One | 2002 Summit Boulevard NE | |
Entity Address, Address Line Two | 15th Floor | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30319 | |
City Area Code | 770 | |
Local Phone Number | 829-3700 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | BZH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,347,050 | |
Entity Central Index Key | 0000915840 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Period Focus | Q2 | |
Former Address | ||
Document Information [Line Items] | ||
Entity Address, Address Line One | 1000 Abernathy Road | |
Entity Address, Address Line Two | Suite 260 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 240,829 | $ 214,594 |
Restricted cash | 38,321 | 37,234 |
Accounts receivable (net of allowance of $284 and $284, respectively) | 28,461 | 35,890 |
Income tax receivable | 307 | 9,606 |
Owned inventory | 1,741,956 | 1,737,865 |
Deferred tax assets, net | 147,598 | 156,358 |
Property and equipment, net | 25,540 | 24,566 |
Operating lease right-of-use assets | 15,101 | 9,795 |
Goodwill | 11,376 | 11,376 |
Other assets | 18,607 | 14,679 |
Total assets | 2,268,096 | 2,251,963 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade accounts payable | 125,240 | 143,641 |
Operating lease liabilities | 16,674 | 11,208 |
Other liabilities | 141,977 | 174,388 |
Total debt (net of debt issuance costs of $6,533 and $7,280, respectively) | 985,220 | 983,440 |
Total liabilities | 1,269,111 | 1,312,677 |
Stockholders’ equity: | ||
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued) | 0 | 0 |
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,347,050 issued and outstanding and 30,880,138 issued and outstanding, respectively) | 31 | 31 |
Paid-in capital | 860,517 | 859,856 |
Retained earnings | 138,437 | 79,399 |
Total stockholders’ equity | 998,985 | 939,286 |
Total liabilities and stockholders’ equity | $ 2,268,096 | $ 2,251,963 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
ASSETS | ||
Allowances for accounts receivable | $ 284 | $ 284 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Unamortized debt issuance expense | $ 6,533 | $ 7,280 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 63,000,000 | 63,000,000 |
Common stock issued (in shares) | 31,347,050 | 30,880,138 |
Common stock outstanding (in shares) | 31,347,050 | 30,880,138 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
Total revenue | $ 543,908 | $ 508,506 | $ 988,836 | $ 962,655 |
Home construction and land sales expenses | 440,901 | 387,821 | 799,871 | 744,570 |
Inventory impairments and abandonments | 111 | 935 | 301 | 935 |
Gross profit | 102,896 | 119,750 | 188,664 | 217,150 |
Commissions | 18,305 | 16,578 | 32,410 | 32,391 |
General and administrative expenses | 42,779 | 45,530 | 83,427 | 83,297 |
Depreciation and amortization | 3,020 | 3,031 | 5,533 | 5,912 |
Operating income | 38,792 | 54,611 | 67,294 | 95,550 |
Loss on extinguishment of debt, net | 0 | (164) | (515) | (164) |
Other income, net | 1,007 | 303 | 1,583 | 722 |
Income from continuing operations before income taxes | 39,799 | 54,750 | 68,362 | 96,108 |
Expense from income taxes | 5,092 | 10,072 | 9,247 | 16,535 |
Income from continuing operations | 34,707 | 44,678 | 59,115 | 79,573 |
Loss from discontinued operations, net of tax | 0 | (6) | (77) | (16) |
Net income | $ 34,707 | $ 44,672 | $ 59,038 | $ 79,557 |
Weighted-average number of shares: | ||||
Basic (in shares) | 30,394 | 30,594 | 30,464 | 30,464 |
Diluted (in shares) | 30,610 | 30,823 | 30,702 | 30,772 |
Basic income per share: | ||||
Continuing operations (in USD per share) | $ 1.14 | $ 1.46 | $ 1.94 | $ 2.61 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | 1.14 | 1.46 | 1.94 | 2.61 |
Diluted income per share: | ||||
Continuing operations (in USD per share) | 1.13 | 1.45 | 1.93 | 2.59 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | $ 1.13 | $ 1.45 | $ 1.93 | $ 2.59 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) |
Beginning balance (in shares) at Sep. 30, 2021 | 31,294 | |||
Beginning balance at Sep. 30, 2021 | $ 724,884 | $ 31 | $ 866,158 | $ (141,305) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 79,557 | 79,557 | ||
Net comprehensive income | 79,557 | 79,557 | ||
Stock-based compensation expense | 4,532 | 4,532 | ||
Stock option exercises (in shares) | 1 | |||
Stock option exercises | 4 | 4 | ||
Shares issued under employee stock plans, net (in shares) | 517 | |||
Forfeiture and other settlements of restricted stock (in shares) | (47) | |||
Common stock redeemed for tax liability (in shares) | (307) | |||
Common stock redeemed for tax liability | (6,620) | (6,620) | ||
Ending balance (in shares) at Mar. 31, 2022 | 31,458 | |||
Ending balance at Mar. 31, 2022 | 802,357 | $ 31 | 864,074 | (61,748) |
Beginning balance (in shares) at Dec. 31, 2021 | 31,460 | |||
Beginning balance at Dec. 31, 2021 | 755,259 | $ 31 | 861,648 | (106,420) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 44,672 | 44,672 | ||
Net comprehensive income | 44,672 | 44,672 | ||
Stock-based compensation expense | 2,424 | 2,424 | ||
Stock option exercises | $ 4 | 4 | ||
Shares issued under employee stock plans, net (in shares) | 1 | |||
Forfeiture and other settlements of restricted stock (in shares) | (3) | |||
Common stock redeemed for tax liability | $ (2) | (2) | ||
Ending balance (in shares) at Mar. 31, 2022 | 31,458 | |||
Ending balance at Mar. 31, 2022 | 802,357 | $ 31 | 864,074 | (61,748) |
Beginning balance (in shares) at Sep. 30, 2022 | 30,880 | |||
Beginning balance at Sep. 30, 2022 | 939,286 | $ 31 | 859,856 | 79,399 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 59,038 | 59,038 | ||
Net comprehensive income | 59,038 | 59,038 | ||
Stock-based compensation expense | 3,258 | 3,258 | ||
Shares issued under employee stock plans, net (in shares) | 675 | |||
Forfeiture and other settlements of restricted stock (in shares) | (3) | |||
Common stock redeemed for tax liability (in shares) | (205) | |||
Common stock redeemed for tax liability | (2,597) | (2,597) | ||
Ending balance (in shares) at Mar. 31, 2023 | 31,347 | |||
Ending balance at Mar. 31, 2023 | 998,985 | $ 31 | 860,517 | 138,437 |
Beginning balance (in shares) at Dec. 31, 2022 | 31,347 | |||
Beginning balance at Dec. 31, 2022 | 962,600 | $ 31 | 858,839 | 103,730 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 34,707 | 34,707 | ||
Net comprehensive income | 34,707 | 34,707 | ||
Stock-based compensation expense | 1,678 | 1,678 | ||
Shares issued under employee stock plans, net (in shares) | 3 | |||
Forfeiture and other settlements of restricted stock (in shares) | (3) | |||
Ending balance (in shares) at Mar. 31, 2023 | 31,347 | |||
Ending balance at Mar. 31, 2023 | $ 998,985 | $ 31 | $ 860,517 | $ 138,437 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 59,038 | $ 79,557 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,533 | 5,912 |
Stock-based compensation expense | 3,258 | 4,532 |
Inventory impairments and abandonments | 301 | 935 |
Deferred and other income tax expense | 9,225 | 16,531 |
Loss (gain) on disposal of fixed assets | 1,265 | (159) |
Loss on extinguishment of debt, net | 515 | 164 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 7,429 | 1,396 |
Decrease in income tax receivable | 9,667 | 0 |
Increase in inventory | (2,275) | (174,225) |
(Increase) decrease in other assets | (1,755) | 906 |
(Decrease) increase in trade accounts payable | (18,401) | 13,866 |
Decrease in other liabilities | (33,532) | (7,545) |
Net cash provided by (used in) operating activities | 40,268 | (58,130) |
Cash flows from investing activities: | ||
Capital expenditures | (7,824) | (6,195) |
Proceeds from sale of fixed assets | 52 | 159 |
Other | (2) | 0 |
Net cash used in investing activities | (7,774) | (6,036) |
Cash flows from financing activities: | ||
Repayment of debt | 0 | (6,113) |
Debt issuance costs | (2,575) | 0 |
Tax payments for stock-based compensation awards | (2,597) | (6,620) |
Stock option exercises | 0 | 4 |
Net cash used in financing activities | (5,172) | (12,729) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 27,322 | (76,895) |
Cash, cash equivalents, and restricted cash at beginning of period | 251,828 | 274,143 |
Cash, cash equivalents, and restricted cash at end of period | $ 279,150 | $ 197,248 |
Description of Business
Description of Business | 6 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate extraordinary value at an affordable price, delivered through our three strategic pillars of Mortgage Choice, Choice Plans ® , and Surprising Performance, while seeking to maximize investment returns over the course of a housing cycle. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial state ments do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2022 Annual Report. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three and six months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal variations in our operations and other factors. Basis of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income. In the past, we have discontinued homebu ilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented. Our fiscal year 2023 began on October 1, 2022 and ends on September 30, 2023. Our fiscal year 2022 began on October 1, 2021 and ended on September 30, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. Share Repurchase Program In May 2022, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. This share repurchase program replaced the prior share repurchase program, authorized in the first quarter of fiscal 2019 of up to $50.0 million of common stock repurchases, pursuant to which $12.0 million of the capacity remained prior to the replacement of the program. All shares have been retired upon repurchase. No share repurchases were made during the three and six months ended March 31, 2023 and 2022 . As of March 31, 2023, the remaining availability of the new share repurchase program was $41.8 million. Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the process specified in ASC Topic 606, Revenue from Contracts with Customers . The following table presents our total revenue disaggregated by revenue stream: Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Homebuilding revenue $ 542,007 $ 507,208 $ 986,091 $ 953,937 Land sales and other revenue 1,901 1,298 2,745 8,718 Total revenue (a) $ 543,908 $ 508,506 $ 988,836 $ 962,655 (a) Please see Note 14 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home is transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and to taled $31.4 million and $34.3 million as of March 31, 2023 and September 30, 2022, respectively. Of the customer liabilities outstanding as of September 30, 2022, $10.1 million and $22.2 million was recognized in revenue during the three and six months ended March 31, 2023 upon closing of the related homes. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized when closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 , to extend the temporary accounting rules under Topic 848 from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact of these accounting standards updates but does not expect that the adoption of ASU 2020-04 and ASU 2022-06 will have a material impact on our consolidated financial statements and related disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Six Months Ended March 31, in thousands 2023 2022 Supplemental disclosure of non-cash activity: Increase in operating lease right-of-use assets (a) $ 7,034 $ 626 Increase in operating lease liabilities (a) 7,482 626 Supplemental disclosure of cash activity: Interest payments $ 33,406 $ 34,649 Income tax payments 378 2,578 Tax refunds received 9,667 — Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 240,829 $ 163,905 Restricted cash 38,321 33,343 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 279,150 $ 197,248 (a) Represents leases renewed or additional leases commenced during the six months ended March 31, 2023 and 2022. |
Owned Inventory
Owned Inventory | 6 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Owned Inventory | Owned Inventory The components of our owned inventory are as follows as of March 31, 2023 and September 30, 2022: in thousands March 31, 2023 September 30, 2022 Homes under construction $ 724,193 $ 785,742 Land under development 774,994 731,190 Land held for future development 19,879 19,879 Land held for sale 20,253 15,674 Capitalized interest 113,886 109,088 Model homes 88,751 76,292 Total owned inventory $ 1,741,956 $ 1,737,865 Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs . As of March 31, 2023, we had 2,381 homes under construction, including 787 spec homes totaling $222.0 million (629 in-process spec homes totaling $156.6 million, and 158 finished spec homes totaling $65.4 million). As of September 30, 2022 , we had 2,688 homes under construction, including 887 spec homes totaling $246.5 million (793 in-process spec units totaling $208.7 million, and 94 finished spec units totaling $37.8 million). Land under development consists principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2 to the audited consolidated financial statements within our 2022 Annual Report). These assets are recorded at the lower of the carrying value or fair value less costs to sell (net realizable value). The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 5 for additional information on capitalized interest). Total owned inventory by reportable segment is presented in the table below as of March 31, 2023 and September 30, 2022: in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned March 31, 2023 West $ 889,336 $ 3,483 $ 19,577 $ 912,396 East 333,355 10,888 — 344,243 Southeast 297,505 5,508 676 303,689 Corporate and unallocated (b) 181,628 — — 181,628 Total $ 1,701,824 $ 19,879 $ 20,253 $ 1,741,956 September 30, 2022 West $ 934,309 $ 3,483 $ 14,998 $ 952,790 East 313,613 10,888 — 324,501 Southeast 284,424 5,508 676 290,608 Corporate and unallocated (b) 169,966 — — 169,966 Total $ 1,702,312 $ 19,879 $ 15,674 $ 1,737,865 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Inventory Impairments Inventory assets are assessed for recoverability periodically in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2022 Annual Report. The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Land Held for Sale: West $ — $ 440 $ — $ 440 Total impairment charges on land held for sale $ — $ 440 $ — $ 440 Abandonments: West $ 111 $ 12 $ 147 $ 12 East — — 154 — Southeast — 483 — 483 Total abandonments charges $ 111 $ 495 $ 301 $ 495 Total impairments and abandonment charges $ 111 $ 935 $ 301 $ 935 Projects in Progress Impairments Projects in progress inventory includes homes under construction and land under development grouped together as communities. Projects in progress are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. No project in progress impairments were recognized during the three and six months ended March 31, 2023 and 2022, respectively. Land Held for Sale Impairments We evaluate the net realizable value (fair value less cost to sell) of a land held for sale asset when indicators of impairment are present. Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions, and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results. No land held for sale impairments were recognized during the three and six months ended March 31, 2023 and $0.4 million land held for sale impairments were recognized during the three and six months ended March 31, 2022. The fair value of land held for sale inventory is measured on a non-recurring basis and has been determined using unobservable inputs (Level 3). The impairment-date fair value of land held for sale assets that were impaired during the three and six months ended March 31, 2022 was $0.9 million. Refer to Note 9 for further discussion on fair value measurements and fair value hierarchy. Abandonments From time-to-time, we may determine to abandon lots or not exercise certain option agreements that are not projected to produce adequate results or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, or permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record an abandonment charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. We recognized $0.1 million and $0.3 million abandonment charges during the three and six months ended March 31, 2023, respectively. We recognized $0.5 million abandonment charges during the three and six months ended March 31, 2022. Lot Option Agreements In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit or surety bonds, and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option agreements. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of March 31, 2023 and September 30, 2022: March 31, 2023 September 30, 2022 in thousands Deposits and non-refundable pre-acquisition costs incurred (a) $ 152,008 $ 142,433 Remaining purchase price if lot option agreements are exercised $ 789,333 $ 827,600 |
Interest
Interest | 6 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Interest | Interest Interest capitalized during the three and six months ended March 31, 2023 and 2022 was based upon the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented: Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Capitalized interest in inventory, beginning of period $ 113,143 $ 110,516 $ 109,088 $ 106,985 Interest incurred 18,034 18,253 35,864 36,564 Interest expense not qualified for capitalization and included as other expense (a) — — — — Capitalized interest amortized to home construction and land sales expenses (b) (17,291) (16,083) (31,066) (30,863) Capitalized interest in inventory, end of period $ 113,886 $ 112,686 $ 113,886 $ 112,686 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Borrowings
Borrowings | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of March 31, 2023 and September 30, 2022: in thousands Maturity Date March 31, 2023 September 30, 2022 6.750% Senior Notes (2025 Notes) March 2025 $ 211,195 $ 211,195 5.875% Senior Notes (2027 Notes) October 2027 357,255 357,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (6,533) (7,280) Total Senior Notes, net 911,917 911,170 Junior Subordinated Notes (net of unamortized accretion of $27,470 and $28,503, respectively) July 2036 73,303 72,270 Secured Revolving Credit Facility February 2024 (a) N/A (c) — Senior Unsecured Revolving Credit Facility October 2026 (b) — N/A (c) Total debt, net $ 985,220 $ 983,440 (a) The Secured Revolving Credit Facility (Secured Facility) provided working capital and letter of credit capacity of $250.0 million and was scheduled to mature in February 2024; however, the Secured Facility was terminated early in October 2022 in conjunction with the Company entering into the Senior Unsecured Revolving Credit Facility. We recorded a loss on extinguishment of debt of $0.5 million during the six months ended March 31, 2023 due to write-off of debt issuance costs related to the early termination of the Secured Facility. As of September 30, 2022, no borrowings were outstanding and $5.5 million letters of credit were outstanding under the Secured Facility, resulting in a remaining capacity of $244.5 million. (b) The Senior Unsecured Revolving Credit Facility was entered into on October 13, 2022. Refer to below for further discussion. (c) N/A - not applicable Senior Unsecured Revolving Credit Facility On October 13, 2022, the Company entered into a Senior Unsecured Revolving Credit Facility (Unsecured Facility), which replaced the Secured Facility. The Unsecured Facility provides working capital and letter of credit capacity of $265.0 million . The Company also will have the right from time to time to request to increase the size of the commitments under the Unsecured Facility by up to $135.0 million for a maximum of $400.0 million. The Unsecured Facility terminates on October 13, 2026 (Termination Date), and the Company may borrow, repay, and reborrow amounts under the Unsecured Facility until the Termination Date. Obligations of the Company under the Unsecured Facility are jointly and severally guaranteed by certain of the Company’s existing and future direct and indirect subsidiaries, excluding, among others, certain specified unrestricted subsidiaries. For additional discussion of the Unsecured Facility, refer to Note 8 to the audited consolidated financial statements within our 2022 Annual Report. As of March 31, 2023, no borrowings and no letters of credit were outstanding under the Unsecured Facility, resulting in a remaining capacity of $265.0 million. The Unsecured Facility requires compliance with certain covenants, including affirmative covenants, negative covenants and financial covenants. As of March 31, 2023, the Company believes it was in compliance with all such covenants. Letter of Credit Facilities The Company has entered into stand-alone, cash-secured letter of credit agreements with banks to maintain pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Secured Facility and the Unsecured Facility). As of March 31, 2023 and September 30, 2022, the Company had letters of credit outstanding under these additional facilities of $33.1 million and $29.7 million, respectively . The Company may enter into additional arrangements to provide additional letter of credit capacity. Senior Notes The Company's senior notes (Senior Notes) are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Unsecured Facility. Each guarantor subsidiary is a wholly owned subsidiary of Beazer Homes. All unsecured Senior Notes rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of March 31, 2023. During the three and six months ended March 31, 2023, we made no repurchases of Senior Notes. Subsequently in April 2023, we repurchased $5.0 million of our outstanding 2025 Notes using cash on hand, resulting in a loss on extinguishment of debt of less than $0.1 million. During the three and six months ended March 31, 2022, we repurchased $6.0 million of our outstanding 2027 Notes using cash on hand, resulting in a loss on extinguishment of debt of $0.2 million. For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6.750% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 5.875% Senior Notes October 2017 October 2027 Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 7.250% Senior Notes September 2019 October 2029 Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. Junior Subordinated Notes The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of March 31, 2023. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, wh i ch was a weighted-average of 7.25% as of March 31, 2023. The obligations relating to these notes are subordinated to the Unsecured Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes (Restructured Notes) and recorded them at their then estimated fair value. Over the remaining life of the Restructured Notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of March 31, 2023, the unamortized accretion was $27.5 million and will be amortized over the remaining life of the Restructured Notes. The remaining $25.8 million of the Junior Subordinated Notes are subject to the terms of the original agreement, have a floating interest rate equal to three-month LIBOR plus 2.45% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million Restructured Notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value; beginning on June 1, 2022, the redemption price increased by 1.785% annually. As of March 31, 2023, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes. |
Operating Leases
Operating Leases | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expenses that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease right to use (ROU) assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. Sublease income and variable lease expenses are de minimis. For the three and six months ended March 31, 2023 and 2022 , operating lease expense and cash payments on lease liabilities were as follows: Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Operating lease expense $ 956 $ 979 $ 1,957 $ 1,978 Cash payments on lease liabilities $ 1,103 $ 1,090 $ 2,244 $ 2,176 At March 31, 2023 and 2022, the weighted-average remaining lease term and discount rate were as follows: As of March 31, 2023 2022 Weighted-average remaining lease term 7.3 years 4.6 years Weighted-average discount rate 5.79% 4.42% The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of March 31, 2023: Fiscal Years Ending September 30, in thousands 2023 (a) $ 2,005 2024 3,598 2025 3,233 2026 2,599 2027 1,683 Thereafter 8,220 Total lease payments (b) 21,338 Less: imputed interest 4,664 Total operating lease liabilities $ 16,674 (a) Remaining lease payments are for the period beginning April 1, 2023 through September 30, 2023 . (b) Lease payments excludes $3.7 million legally binding minimum lease payments for an office lease signed but not yet commenced. The related ROU asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of March 31, 2023. |
Contingencies
Contingencies | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from one Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. Warranty reserves are included in other liabilities within the condensed consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the condensed consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market-specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve. In addition, we maintain third-party insurance, subject to applicable self-insured retentions, for most construction defects that we encounter in the normal course of business. We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors. Changes in warranty reserves are as follows for the periods presented: Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Balance at beginning of period $ 13,159 $ 12,743 $ 13,926 $ 12,931 Accruals for warranties issued (a) 3,072 2,811 5,485 5,183 Changes in liability related to warranties existing in prior periods (737) (512) (1,547) 22 Payments made (2,421) (2,361) (4,791) (5,455) Balance at end of period $ 13,073 $ 12,681 $ 13,073 $ 12,681 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed, and the rates of accrual per home estimated as a percentage of the selling price of the home. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the condensed consolidated statements of operations as a reduction of home construction expenses. Amounts not yet received from our insurer are recorded on a gross basis, without any reduction for the associated warranty expense, within accounts receivable on our condensed consolidated balance sheets. Litigation In the normal course of business, we and certain of our subsidiaries are subject to various lawsuits and have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows. We have an accrual of $ 8.1 million and $9.8 million in other liabilities on our condensed consolidated balance sheets related to litigation matters as of March 31, 2023 and September 30, 2022, respectively. Surety Bonds and Letters of Credit We had outstanding letters of credit and surety bonds of $33.1 million and $271.1 million, r espectively, as of March 31, 2023, related principally to our obligations to local governments to construct roads and other improvements in various developments. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recoverable. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Note 4. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis. in thousands Level 1 Level 2 Level 3 Total As of March 31, 2023 Deferred compensation plan assets $ — $ 3,583 $ — $ 3,583 As of September 30, 2022 Deferred compensation plan assets $ — $ 3,179 $ — $ 3,179 The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Unsecured Facility (if outstanding) approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain other financial liabilities as of March 31, 2023 and September 30, 2022: March 31, 2023 September 30, 2022 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes (b) $ 911,917 $ 862,238 $ 911,170 $ 753,338 Junior Subordinated Notes (c) 73,303 73,303 72,270 72,270 Total $ 985,220 $ 935,541 $ 983,440 $ 825,608 (a) Carrying amounts are net of unamortized debt issuance costs o r accretion. (b) The estimated fair value for our publicly-held Senior Notes have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision The Company's income tax provision for quarterly interim periods is based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. We recognized income tax expense from continuing operations of $5.1 million and $9.2 million for the three and six months ended March 31, 2023, compared to $10.1 million and $16.5 million for the three and six months ended March 31, 2022. Income tax expense for the six months ended March 31, 2023 was primarily driven by income tax expense on earnings from continuing operations, permanent differences and the discrete tax expense related to stock-based compensation activity in the period, partially offset by the generation of additional federal tax credits and interest received with the refund of our alternative minimum tax credit. Income tax expense for the six months ended March 31, 2022 was primarily driven by income tax expense on earnings from continuing operations and permanent differences, partially offset by the generation of additional federal tax credits and the discrete tax benefit related to stock-based compensation activity in the period. Deferred Tax Assets and Liabilities The Company continues to evaluate its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of these deferred tax assets will not be realized. As of March 31, 2023, management concluded that it is more likely than not that all of our federal and certain state deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. At this time, our conclusions on the valuation allowance and Internal Revenue Code Section 382 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2022, and such conclusions are based on similar company specific and industry factors to those discussed in Note 13 to the audited consolidated financial statements within our 2022 Annual Report. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and six months ended March 31, 2023 and 2022, respectively. Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Stock-based compensation expense $ 1,678 $ 2,424 $ 3,258 $ 4,532 Stock Options Following is a summary of stock option activity for the six months ended March 31, 2023: Six Months Ended March 31, 2023 Shares Weighted Average Outstanding at beginning of period 27,507 $ 14.31 Outstanding at end of period 27,507 14.31 Exercisable at end of period 27,271 $ 14.29 As of both March 31, 2023 and September 30, 2022, there was less than $0.1 million of total unrecognized compensation costs related to unvested stock options. The costs remaining as of March 31, 2023 are expected to be recognized over a weighted-average period of 0.94 years . Restricted Stock Awards During the six months ended March 31, 2023, the Company issued time-based and performance-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over two Following is a summary of restricted stock activity for the six months ended March 31, 2023: Six Months Ended March 31, 2023 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 436,146 412,042 848,188 Granted (a) 249,534 425,398 674,932 Vested (334,736) (232,071) (566,807) Forfeited (1,958) (1,516) (3,474) End of period 348,986 603,853 952,839 (a) Each of our performance shares represent a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2022, we issued 92,104 shares earned above target level based on the performance level achieved under the fiscal 2020 performance-based award plan. As of March 31, 2023 and September 30, 2022, total unrecognized compensation costs related to unvested restricted stock awards w as $10.1 million and $7.3 million, respectively. The costs remaining as of March 31, 2023 are expected to be recognized over a weighted average period of 1.96 years . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income (loss) per share adjusts the basic income (loss) per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Following is a summary of the components of basic and diluted income per share for the periods presented: Three Months Ended March 31, Six Months Ended March 31, in thousands (except per share data) 2023 2022 2023 2022 Numerator: Income from continuing operations $ 34,707 $ 44,678 $ 59,115 $ 79,573 Loss from discontinued operations, net of tax — (6) (77) (16) Net income $ 34,707 $ 44,672 $ 59,038 $ 79,557 Denominator: Basic weighted-average shares 30,394 30,594 30,464 30,464 Dilutive effect of restricted stock awards 211 222 234 300 Dilutive effect of stock options 5 7 4 8 Diluted weighted-average shares (a) 30,610 30,823 30,702 30,772 Basic income per share: Continuing operations $ 1.14 $ 1.46 $ 1.94 $ 2.61 Discontinued operations — — — — Total $ 1.14 $ 1.46 $ 1.94 $ 2.61 Diluted income per share: Continuing operations $ 1.13 $ 1.45 $ 1.93 $ 2.59 Discontinued operations — — — — Total $ 1.13 $ 1.45 $ 1.93 $ 2.59 (a) The following potentially dilutive shares were excluded from the calculation of diluted income per share as a result of their anti-dilutive effect. Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Stock options 12 13 12 31 Time-based restricted stock 119 188 134 — |
Other Liabilities
Other Liabilities | 6 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following as of March 31, 2023 and September 30, 2022: in thousands March 31, 2023 September 30, 2022 Accrued compensations and benefits 32,013 $ 57,781 Customer deposits 31,432 34,270 Accrued interest 23,062 22,723 Warranty reserve 13,073 13,926 Litigation accruals 8,070 9,832 Income tax liabilities 775 320 Other 33,552 35,536 Total $ 141,977 $ 174,388 |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenues from our homebuilding segments are derived from the sale of homes that we construct and from land and lot sales. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. We have considered the applicable aggregation criteria and have combined our homebuilding operations into three reportable segments as follows: West : Arizona, California, Nevada, and Texas (a) East : Delaware, Indiana, Maryland, New Jersey (b) , Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina (a) On May 20, 2022, we acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder in which the Company held a one-third ownership stake for the previous 16 years. The results of our San Antonio operations are reported herein within our West reportable segment. (b) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey. Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development, and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2 to the consolidated financial statements within our 2022 Annual Report. The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Revenue West $ 330,413 $ 303,492 $ 605,228 $ 561,158 East 120,071 128,935 206,261 247,104 Southeast 93,424 76,079 177,347 154,393 Total revenue $ 543,908 $ 508,506 $ 988,836 $ 962,655 Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Operating income West $ 45,513 $ 58,103 $ 82,870 $ 100,827 East 16,244 24,072 25,506 43,931 Southeast 11,517 10,007 22,196 18,207 Segment total 73,274 92,182 130,572 162,965 Corporate and unallocated (a) (34,482) (37,571) (63,278) (67,415) Total operating income $ 38,792 $ 54,611 $ 67,294 $ 95,550 (a) Includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Depreciation and amortization West $ 1,939 $ 1,810 $ 3,544 $ 3,409 East 388 367 661 802 Southeast 398 374 728 773 Segment total 2,725 2,551 4,933 4,984 Corporate and unallocated (a) 295 480 600 928 Total depreciation and amortization $ 3,020 $ 3,031 $ 5,533 $ 5,912 (a) Represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Six Months Ended March 31, in thousands 2023 2022 Capital expenditures West $ 3,086 $ 3,275 East 1,239 253 Southeast 925 595 Corporate and unallocated 2,574 2,072 Total capital expenditures $ 7,824 $ 6,195 The following table presents assets by segment as of March 31, 2023 and September 30, 2022: in thousands March 31, 2023 September 30, 2022 Assets West $ 958,771 $ 995,339 East 355,234 334,323 Southeast 318,090 305,443 Corporate and unallocated (a) 636,001 616,858 Total assets $ 2,268,096 $ 2,251,963 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income. In the past, we have discontinued homebu ilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented. Our fiscal year 2023 began on October 1, 2022 and ends on September 30, 2023. Our fiscal year 2022 began on October 1, 2021 and ended on September 30, 2022. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. |
Share Repurchase Program | Share Repurchase Program In May 2022, the Company's Board of Directors approved a share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. This share repurchase program replaced the prior share repurchase program, authorized in the first quarter of fiscal 2019 of up to $50.0 million of common stock repurchases, pursuant to which $12.0 million of the capacity remained prior to the replacement of the program. All shares have been retired upon repurchase. No share repurchases were made during the three and six months ended March 31, 2023 and 2022 . As of March 31, 2023, the remaining availability of the new share repurchase program was $41.8 million. |
Revenue Recognition | Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the process specified in ASC Topic 606, Revenue from Contracts with Customers . Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home is transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and to taled $31.4 million and $34.3 million as of March 31, 2023 and September 30, 2022, respectively. Of the customer liabilities outstanding as of September 30, 2022, $10.1 million and $22.2 million was recognized in revenue during the three and six months ended March 31, 2023 upon closing of the related homes. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized when closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 , to extend the temporary accounting rules under Topic 848 from December 31, 2022 to December 31, 2024. The Company is currently evaluating the impact of these accounting standards updates but does not expect that the adoption of ASU 2020-04 and ASU 2022-06 will have a material impact on our consolidated financial statements and related disclosures. |
Fair Value Measurements | As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenue disaggregated by revenue stream: Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Homebuilding revenue $ 542,007 $ 507,208 $ 986,091 $ 953,937 Land sales and other revenue 1,901 1,298 2,745 8,718 Total revenue (a) $ 543,908 $ 508,506 $ 988,836 $ 962,655 (a) Please see Note 14 for total revenue disaggregated by reportable segment. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Six Months Ended March 31, in thousands 2023 2022 Supplemental disclosure of non-cash activity: Increase in operating lease right-of-use assets (a) $ 7,034 $ 626 Increase in operating lease liabilities (a) 7,482 626 Supplemental disclosure of cash activity: Interest payments $ 33,406 $ 34,649 Income tax payments 378 2,578 Tax refunds received 9,667 — Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 240,829 $ 163,905 Restricted cash 38,321 33,343 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 279,150 $ 197,248 (a) Represents leases renewed or additional leases commenced during the six months ended March 31, 2023 and 2022. |
Owned Inventory (Tables)
Owned Inventory (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The components of our owned inventory are as follows as of March 31, 2023 and September 30, 2022: in thousands March 31, 2023 September 30, 2022 Homes under construction $ 724,193 $ 785,742 Land under development 774,994 731,190 Land held for future development 19,879 19,879 Land held for sale 20,253 15,674 Capitalized interest 113,886 109,088 Model homes 88,751 76,292 Total owned inventory $ 1,741,956 $ 1,737,865 |
Schedule of total owned inventory, by segment | Total owned inventory by reportable segment is presented in the table below as of March 31, 2023 and September 30, 2022: in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned March 31, 2023 West $ 889,336 $ 3,483 $ 19,577 $ 912,396 East 333,355 10,888 — 344,243 Southeast 297,505 5,508 676 303,689 Corporate and unallocated (b) 181,628 — — 181,628 Total $ 1,701,824 $ 19,879 $ 20,253 $ 1,741,956 September 30, 2022 West $ 934,309 $ 3,483 $ 14,998 $ 952,790 East 313,613 10,888 — 324,501 Southeast 284,424 5,508 676 290,608 Corporate and unallocated (b) 169,966 — — 169,966 Total $ 1,702,312 $ 19,879 $ 15,674 $ 1,737,865 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. |
Schedule of inventory impairments and abandonment charges, by reportable segment | The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Land Held for Sale: West $ — $ 440 $ — $ 440 Total impairment charges on land held for sale $ — $ 440 $ — $ 440 Abandonments: West $ 111 $ 12 $ 147 $ 12 East — — 154 — Southeast — 483 — 483 Total abandonments charges $ 111 $ 495 $ 301 $ 495 Total impairments and abandonment charges $ 111 $ 935 $ 301 $ 935 |
Summary of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of March 31, 2023 and September 30, 2022: March 31, 2023 September 30, 2022 in thousands Deposits and non-refundable pre-acquisition costs incurred (a) $ 152,008 $ 142,433 Remaining purchase price if lot option agreements are exercised $ 789,333 $ 827,600 |
Interest (Tables)
Interest (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate Inventory, Capitalized Interest Costs | The following table presents certain information regarding interest for the periods presented: Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Capitalized interest in inventory, beginning of period $ 113,143 $ 110,516 $ 109,088 $ 106,985 Interest incurred 18,034 18,253 35,864 36,564 Interest expense not qualified for capitalization and included as other expense (a) — — — — Capitalized interest amortized to home construction and land sales expenses (b) (17,291) (16,083) (31,066) (30,863) Capitalized interest in inventory, end of period $ 113,886 $ 112,686 $ 113,886 $ 112,686 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company's debt, net of unamortized debt issuance costs consisted of the following as of March 31, 2023 and September 30, 2022: in thousands Maturity Date March 31, 2023 September 30, 2022 6.750% Senior Notes (2025 Notes) March 2025 $ 211,195 $ 211,195 5.875% Senior Notes (2027 Notes) October 2027 357,255 357,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (6,533) (7,280) Total Senior Notes, net 911,917 911,170 Junior Subordinated Notes (net of unamortized accretion of $27,470 and $28,503, respectively) July 2036 73,303 72,270 Secured Revolving Credit Facility February 2024 (a) N/A (c) — Senior Unsecured Revolving Credit Facility October 2026 (b) — N/A (c) Total debt, net $ 985,220 $ 983,440 (a) The Secured Revolving Credit Facility (Secured Facility) provided working capital and letter of credit capacity of $250.0 million and was scheduled to mature in February 2024; however, the Secured Facility was terminated early in October 2022 in conjunction with the Company entering into the Senior Unsecured Revolving Credit Facility. We recorded a loss on extinguishment of debt of $0.5 million during the six months ended March 31, 2023 due to write-off of debt issuance costs related to the early termination of the Secured Facility. As of September 30, 2022, no borrowings were outstanding and $5.5 million letters of credit were outstanding under the Secured Facility, resulting in a remaining capacity of $244.5 million. (b) The Senior Unsecured Revolving Credit Facility was entered into on October 13, 2022. Refer to below for further discussion. (c) N/A - not applicable |
Debt Instrument Redemption | For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6.750% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 5.875% Senior Notes October 2017 October 2027 Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 7.250% Senior Notes September 2019 October 2029 Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | For the three and six months ended March 31, 2023 and 2022 , operating lease expense and cash payments on lease liabilities were as follows: Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Operating lease expense $ 956 $ 979 $ 1,957 $ 1,978 Cash payments on lease liabilities $ 1,103 $ 1,090 $ 2,244 $ 2,176 At March 31, 2023 and 2022, the weighted-average remaining lease term and discount rate were as follows: As of March 31, 2023 2022 Weighted-average remaining lease term 7.3 years 4.6 years Weighted-average discount rate 5.79% 4.42% |
Lessee, Operating Lease, Liability, Maturity | The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of March 31, 2023: Fiscal Years Ending September 30, in thousands 2023 (a) $ 2,005 2024 3,598 2025 3,233 2026 2,599 2027 1,683 Thereafter 8,220 Total lease payments (b) 21,338 Less: imputed interest 4,664 Total operating lease liabilities $ 16,674 (a) Remaining lease payments are for the period beginning April 1, 2023 through September 30, 2023 . (b) Lease payments excludes $3.7 million legally binding minimum lease payments for an office lease signed but not yet commenced. The related ROU asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of March 31, 2023. |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty reserves | Changes in warranty reserves are as follows for the periods presented: Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Balance at beginning of period $ 13,159 $ 12,743 $ 13,926 $ 12,931 Accruals for warranties issued (a) 3,072 2,811 5,485 5,183 Changes in liability related to warranties existing in prior periods (737) (512) (1,547) 22 Payments made (2,421) (2,361) (4,791) (5,455) Balance at end of period $ 13,073 $ 12,681 $ 13,073 $ 12,681 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed, and the rates of accrual per home estimated as a percentage of the selling price of the home. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on a recurring and non-recurring basis | The following table presents the period-end balances of assets measured at fair value on a recurring basis. in thousands Level 1 Level 2 Level 3 Total As of March 31, 2023 Deferred compensation plan assets $ — $ 3,583 $ — $ 3,583 As of September 30, 2022 Deferred compensation plan assets $ — $ 3,179 $ — $ 3,179 |
Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain other financial liabilities as of March 31, 2023 and September 30, 2022: March 31, 2023 September 30, 2022 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes (b) $ 911,917 $ 862,238 $ 911,170 $ 753,338 Junior Subordinated Notes (c) 73,303 73,303 72,270 72,270 Total $ 985,220 $ 935,541 $ 983,440 $ 825,608 (a) Carrying amounts are net of unamortized debt issuance costs o r accretion. (b) The estimated fair value for our publicly-held Senior Notes have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of stock-based compensation expense | Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and six months ended March 31, 2023 and 2022, respectively. Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Stock-based compensation expense $ 1,678 $ 2,424 $ 3,258 $ 4,532 |
Schedule of stock options outstanding | Following is a summary of stock option activity for the six months ended March 31, 2023: Six Months Ended March 31, 2023 Shares Weighted Average Outstanding at beginning of period 27,507 $ 14.31 Outstanding at end of period 27,507 14.31 Exercisable at end of period 27,271 $ 14.29 |
Schedule of nonvested stock awards activity | Following is a summary of restricted stock activity for the six months ended March 31, 2023: Six Months Ended March 31, 2023 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 436,146 412,042 848,188 Granted (a) 249,534 425,398 674,932 Vested (334,736) (232,071) (566,807) Forfeited (1,958) (1,516) (3,474) End of period 348,986 603,853 952,839 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Following is a summary of the components of basic and diluted income per share for the periods presented: Three Months Ended March 31, Six Months Ended March 31, in thousands (except per share data) 2023 2022 2023 2022 Numerator: Income from continuing operations $ 34,707 $ 44,678 $ 59,115 $ 79,573 Loss from discontinued operations, net of tax — (6) (77) (16) Net income $ 34,707 $ 44,672 $ 59,038 $ 79,557 Denominator: Basic weighted-average shares 30,394 30,594 30,464 30,464 Dilutive effect of restricted stock awards 211 222 234 300 Dilutive effect of stock options 5 7 4 8 Diluted weighted-average shares (a) 30,610 30,823 30,702 30,772 Basic income per share: Continuing operations $ 1.14 $ 1.46 $ 1.94 $ 2.61 Discontinued operations — — — — Total $ 1.14 $ 1.46 $ 1.94 $ 2.61 Diluted income per share: Continuing operations $ 1.13 $ 1.45 $ 1.93 $ 2.59 Discontinued operations — — — — Total $ 1.13 $ 1.45 $ 1.93 $ 2.59 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended March 31, Six Months Ended March 31, in thousands 2023 2022 2023 2022 Stock options 12 13 12 31 Time-based restricted stock 119 188 134 — |
Other Liabilities (Tables)
Other Liabilities (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other liabilities | Other liabilities include the following as of March 31, 2023 and September 30, 2022: in thousands March 31, 2023 September 30, 2022 Accrued compensations and benefits 32,013 $ 57,781 Customer deposits 31,432 34,270 Accrued interest 23,062 22,723 Warranty reserve 13,073 13,926 Litigation accruals 8,070 9,832 Income tax liabilities 775 320 Other 33,552 35,536 Total $ 141,977 $ 174,388 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Revenue West $ 330,413 $ 303,492 $ 605,228 $ 561,158 East 120,071 128,935 206,261 247,104 Southeast 93,424 76,079 177,347 154,393 Total revenue $ 543,908 $ 508,506 $ 988,836 $ 962,655 Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Operating income West $ 45,513 $ 58,103 $ 82,870 $ 100,827 East 16,244 24,072 25,506 43,931 Southeast 11,517 10,007 22,196 18,207 Segment total 73,274 92,182 130,572 162,965 Corporate and unallocated (a) (34,482) (37,571) (63,278) (67,415) Total operating income $ 38,792 $ 54,611 $ 67,294 $ 95,550 (a) Includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Three Months Ended Six Months Ended March 31, March 31, in thousands 2023 2022 2023 2022 Depreciation and amortization West $ 1,939 $ 1,810 $ 3,544 $ 3,409 East 388 367 661 802 Southeast 398 374 728 773 Segment total 2,725 2,551 4,933 4,984 Corporate and unallocated (a) 295 480 600 928 Total depreciation and amortization $ 3,020 $ 3,031 $ 5,533 $ 5,912 (a) Represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Six Months Ended March 31, in thousands 2023 2022 Capital expenditures West $ 3,086 $ 3,275 East 1,239 253 Southeast 925 595 Corporate and unallocated 2,574 2,072 Total capital expenditures $ 7,824 $ 6,195 The following table presents assets by segment as of March 31, 2023 and September 30, 2022: in thousands March 31, 2023 September 30, 2022 Assets West $ 958,771 $ 995,339 East 355,234 334,323 Southeast 318,090 305,443 Corporate and unallocated (a) 636,001 616,858 Total assets $ 2,268,096 $ 2,251,963 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Description of Business (Detail
Description of Business (Details) | Mar. 31, 2023 state region |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ in Millions | Mar. 31, 2023 | May 31, 2022 | Apr. 30, 2022 |
Accounting Policies [Abstract] | |||
Authorized amount repurchase of common stock | $ 50 | ||
Remaining authorized repurchase amount | $ 41.8 | $ 12 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 543,908 | $ 508,506 | $ 988,836 | $ 962,655 | |
Customer deposits | 31,432 | 31,432 | $ 34,270 | ||
Contract with customer, liability, revenue recognized | 10,100 | 22,200 | |||
Homebuilding revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 542,007 | 507,208 | 986,091 | 953,937 | |
Land sales and other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 1,901 | $ 1,298 | $ 2,745 | $ 8,718 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |||
Increase in operating lease right-of-use assets | $ 7,034 | $ 626 | |
Increase in operating lease liabilities | 7,482 | 626 | |
Supplemental disclosure of cash activity: | |||
Interest payments | 33,406 | 34,649 | |
Income tax payments | 378 | 2,578 | |
Tax refunds received | 9,667 | 0 | |
Reconciliation of cash, cash equivalents, and restricted cash: | |||
Cash and cash equivalents | 240,829 | 163,905 | $ 214,594 |
Restricted cash | 38,321 | 33,343 | $ 37,234 |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 279,150 | $ 197,248 |
Owned Inventory - Schedule of I
Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||||||
Homes under construction | $ 724,193 | $ 785,742 | ||||
Land under development | 774,994 | 731,190 | ||||
Land held for future development | 19,879 | 19,879 | ||||
Land held for sale | 20,253 | 15,674 | ||||
Capitalized interest | 113,886 | $ 113,143 | 109,088 | $ 112,686 | $ 110,516 | $ 106,985 |
Model homes | 88,751 | 76,292 | ||||
Total owned inventory | $ 1,741,956 | $ 1,737,865 |
Owned Inventory - Narrative (De
Owned Inventory - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 USD ($) home | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) home | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) home | |
Inventory Disclosure [Abstract] | |||||
Number of homes under construction | home | 2,381 | 2,381 | 2,688 | ||
Number of homes under construction, spec homes | home | 787 | 787 | 887 | ||
Total, spec homes | $ 222,000,000 | $ 222,000,000 | $ 246,500,000 | ||
Number of homes under construction, in-process spec homes | home | 629 | 629 | 793 | ||
In-process spec homes | $ 156,600,000 | $ 156,600,000 | $ 208,700,000 | ||
Number of homes under construction, finished spec homes | home | 158 | 158 | 94 | ||
Finished spec homes | $ 65,400,000 | $ 65,400,000 | $ 37,800,000 | ||
Threshold number of homes below a minimum threshold of profitability | home | 10 | ||||
Impairment of projects in process | 0 | $ 0 | $ 0 | $ 0 | |
Total impairment charges on land held for sale | 0 | 440,000 | 0 | 440,000 | |
Fair value of impaired long-lived assets to be disposed of | 900,000 | 900,000 | |||
Total abandonments charges | $ 111,000 | $ 495,000 | $ 301,000 | $ 495,000 |
Owned Inventory - Total Owned I
Owned Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Projects in progress | $ 1,701,824 | $ 1,702,312 |
Land held for future development | 19,879 | 19,879 |
Land held for sale | 20,253 | 15,674 |
Total owned inventory | 1,741,956 | 1,737,865 |
Corporate and unallocated | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 181,628 | 169,966 |
Land held for future development | 0 | 0 |
Land held for sale | 0 | 0 |
Total owned inventory | 181,628 | 169,966 |
West | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 889,336 | 934,309 |
Land held for future development | 3,483 | 3,483 |
Land held for sale | 19,577 | 14,998 |
Total owned inventory | 912,396 | 952,790 |
East | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 333,355 | 313,613 |
Land held for future development | 10,888 | 10,888 |
Land held for sale | 0 | 0 |
Total owned inventory | 344,243 | 324,501 |
Southeast | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 297,505 | 284,424 |
Land held for future development | 5,508 | 5,508 |
Land held for sale | 676 | 676 |
Total owned inventory | $ 303,689 | $ 290,608 |
Owned Inventory - Inventory Imp
Owned Inventory - Inventory Impairments and Abandonment Charges, by Reportable Segment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Real Estate Properties [Line Items] | ||||
Total impairment charges on land held for sale | $ 0 | $ 440,000 | $ 0 | $ 440,000 |
Total abandonments charges | 111,000 | 495,000 | 301,000 | 495,000 |
Total impairments and abandonment charges | 111,000 | 935,000 | 301,000 | 935,000 |
West | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total impairment charges on land held for sale | 0 | 440,000 | 0 | 440,000 |
Total abandonments charges | 111,000 | 12,000 | 147,000 | 12,000 |
East | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | 0 | 0 | 154,000 | 0 |
Southeast | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | $ 0 | $ 483,000 | $ 0 | $ 483,000 |
Owned Inventory - Summary of In
Owned Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated Entities - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Real Estate Properties [Line Items] | ||
Deposits and non-refundable pre-acquisition costs incurred | $ 152,008 | $ 142,433 |
Remaining purchase price if lot option agreements are exercised | $ 789,333 | $ 827,600 |
Interest - Schedule of Capitali
Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Capitalized interest in inventory, beginning of period | $ 113,143 | $ 110,516 | $ 109,088 | $ 106,985 |
Interest incurred | 18,034 | 18,253 | 35,864 | 36,564 |
Interest expense not qualified for capitalization and included as other expense | 0 | 0 | 0 | 0 |
Capitalized interest amortized to home construction and land sales expenses | (17,291) | (16,083) | (31,066) | (30,863) |
Capitalized interest in inventory, end of period | $ 113,886 | $ 112,686 | $ 113,886 | $ 112,686 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 31, 2022 | Oct. 13, 2022 | Sep. 30, 2022 | Sep. 30, 2019 | Oct. 31, 2017 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||||
Total outstanding borrowings of unconsolidated entities | $ 985,220,000 | $ 985,220,000 | $ 983,440,000 | |||||||
Unamortized debt issuance costs | (6,533,000) | (6,533,000) | (7,280,000) | |||||||
Loss on extinguishment of debt, net | $ 0 | $ 164,000 | $ 515,000 | $ 164,000 | ||||||
6.750% | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate on debt instrument | 6.75% | 6.75% | 6.75% | |||||||
5.875% | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate on debt instrument | 5.875% | 5.875% | 5.875% | |||||||
Loss on extinguishment of debt, net | $ 200,000 | $ 200,000 | ||||||||
7.250% | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate on debt instrument | 7.25% | 7.25% | 7.25% | |||||||
Secured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Secured Revolving Credit Facility | $ 0 | $ 0 | 0 | |||||||
Credit facility, maximum borrowing capacity | $ 250,000,000 | $ 265,000,000 | ||||||||
Loss on extinguishment of debt, net | 500,000 | |||||||||
Letters of credit secured using cash collateral | 0 | 0 | 5,500,000 | |||||||
Line of credit facility, remaining borrowing capacity | 265,000,000 | 265,000,000 | 244,500,000 | |||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total outstanding borrowings of unconsolidated entities | 911,917,000 | 911,917,000 | 911,170,000 | |||||||
Unamortized debt issuance costs | (6,533,000) | (6,533,000) | (7,280,000) | |||||||
Senior Notes | 6.750% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total outstanding borrowings of unconsolidated entities | 211,195,000 | 211,195,000 | 211,195,000 | |||||||
Senior Notes | 5.875% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total outstanding borrowings of unconsolidated entities | 357,255,000 | 357,255,000 | 357,255,000 | |||||||
Senior Notes | 7.250% | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total outstanding borrowings of unconsolidated entities | 350,000,000 | 350,000,000 | 350,000,000 | |||||||
Junior Subordinated Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total outstanding borrowings of unconsolidated entities | $ 73,303,000 | $ 73,303,000 | $ 72,270,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 01, 2022 | Jun. 01, 2012 | Apr. 27, 2023 | Jan. 31, 2010 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 31, 2022 | Oct. 13, 2022 | Sep. 30, 2022 | |
Line of Credit Facility [Abstract] | |||||||||||
Loss on extinguishment of debt, net | $ 0 | $ 164,000 | $ 515,000 | $ 164,000 | |||||||
Senior Notes | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Extinguishment of debt | 0 | 0 | |||||||||
Senior Notes | 5.875% | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Extinguishment of debt | 6,000,000 | 6,000,000 | |||||||||
Loss on extinguishment of debt, net | $ 200,000 | $ 200,000 | |||||||||
Senior Notes | Subsequent Event | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Extinguishment of debt | $ 5,000,000 | ||||||||||
Loss on extinguishment of debt, net | $ 100,000 | ||||||||||
Junior Subordinated Notes | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principle balance of notes | $ 100,800,000 | $ 100,800,000 | |||||||||
Weighted average fixed interest rate of debt | 7.25% | 7.25% | |||||||||
Unamortized accretion | $ 27,470,000 | $ 27,470,000 | $ 28,503,000 | ||||||||
Junior Subordinated Debt, Modified Terms | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principal amount of debt | $ 75,000,000 | ||||||||||
Redemption price percentage | 75% | ||||||||||
Annual increase of percentage of principal amount redeemable | 1.785% | ||||||||||
Junior Subordinated Debt, Modified Terms | LIBOR | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Variable rate floor | 4.25% | ||||||||||
Variable rate cap | 9.25% | ||||||||||
Junior Subordinated Debt, Original Terms | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principal amount of debt | 25,800,000 | 25,800,000 | |||||||||
Junior Subordinated Debt, Original Terms | LIBOR | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Basis spread on variable rate | 2.45% | ||||||||||
Secured Revolving Credit Facility | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Credit facility, maximum borrowing capacity | $ 250,000,000 | $ 265,000,000 | |||||||||
Credit facility, available increase in borrowing capacity | 135,000,000 | ||||||||||
Secured Revolving Credit Facility | 0 | 0 | 0 | ||||||||
Letters of credit secured using cash collateral | 0 | 0 | 5,500,000 | ||||||||
Amount of available borrowings under the secured revolving credit facility | 265,000,000 | 265,000,000 | 244,500,000 | ||||||||
Loss on extinguishment of debt, net | 500,000 | ||||||||||
Secured Revolving Credit Facility | Maximum | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||||||
Letter of Credit | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Letters of credit secured using cash collateral | $ 33,100,000 | $ 33,100,000 | $ 29,700,000 |
Borrowings - Debt Redemption (D
Borrowings - Debt Redemption (Details) - Senior Notes | 6 Months Ended | |||
Mar. 31, 2023 | Sep. 30, 2019 | Oct. 31, 2017 | Mar. 31, 2017 | |
6.750% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 6.75% | 6.75% | ||
6.750% | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
6.750% | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 105.063% | |||
6.750% | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 103.375% | |||
6.750% | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.688% | |||
6.750% | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
5.875% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 5.875% | 5.875% | ||
5.875% | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
5.875% | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 102.938% | |||
5.875% | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.958% | |||
5.875% | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100.979% | |||
5.875% | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
7.250% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 7.25% | 7.25% | ||
7.250% | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
7.250% | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 103.625% | |||
7.250% | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 102.417% | |||
7.250% | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.208% | |||
7.250% | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% |
Operating Leases - Lease Expens
Operating Leases - Lease Expense and Cash Payments & Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 956 | $ 979 | $ 1,957 | $ 1,978 |
Cash payments on lease liabilities | $ 1,103 | $ 1,090 | $ 2,244 | $ 2,176 |
Weighted-average remaining lease term | 7 years 3 months 18 days | 4 years 7 months 6 days | 7 years 3 months 18 days | 4 years 7 months 6 days |
Weighted-average discount rate | 5.79% | 4.42% | 5.79% | 4.42% |
Operating Leases - Maturity Ana
Operating Leases - Maturity Analysis of the Annual Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 2,005 | |
2024 | 3,598 | |
2025 | 3,233 | |
2026 | 2,599 | |
2027 | 1,683 | |
Thereafter | 8,220 | |
Total lease payments | 21,338 | |
Less: imputed interest | 4,664 | |
Total operating lease liabilities | 16,674 | $ 11,208 |
Liabilities for leases that have not yet commenced | $ 3,700 |
Contingencies - Warranty (Detai
Contingencies - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Standard product warranty length, minimum | 1 year | |||
Standard product warranty length, maximum | 2 years | |||
Limited product warranty length (up to) | 10 years | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 13,159 | $ 12,743 | $ 13,926 | $ 12,931 |
Accruals for warranties issued | 3,072 | 2,811 | 5,485 | 5,183 |
Changes in liability related to warranties existing in prior periods | (737) | (512) | (1,547) | 22 |
Payments made | (2,421) | (2,361) | (4,791) | (5,455) |
Balance at end of period | $ 13,073 | $ 12,681 | $ 13,073 | $ 12,681 |
Contingencies - Litigation and
Contingencies - Litigation and Other Matters (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Sep. 30, 2022 |
Loss Contingencies [Line Items] | ||
Accrued amounts for litigation and other contingent liabilities | $ 8.1 | $ 9.8 |
Performance Bonds | ||
Loss Contingencies [Line Items] | ||
Letters of credit secured using cash collateral | 33.1 | |
Outstanding performance bonds | $ 271.1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 3,583 | $ 3,179 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 3,583 | 3,179 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Sep. 30, 2022 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 985,220 | $ 983,440 |
Carrying Amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 911,917 | 911,170 |
Carrying Amount | Junior Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 73,303 | 72,270 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 935,541 | 825,608 |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 862,238 | 753,338 |
Fair Value | Junior Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 73,303 | $ 72,270 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Expense from income taxes | $ 5,092 | $ 10,072 | $ 9,247 | $ 16,535 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 1,678 | $ 2,424 | $ 3,258 | $ 4,532 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options Outstanding (Details) - Stock options | Mar. 31, 2023 $ / shares shares |
Shares | |
Exercisable at end of period (shares) | shares | 27,271 |
Weighted Average Exercise Price | |
Exercisable at end of period (in USD per share) | $ / shares | $ 14.29 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2022 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs related to non-vested stock options award | $ 0.1 | $ 0.1 |
Weighted average period to recognize remaining cost | 11 months 8 days | |
Time-based restricted stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
Time-based restricted stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance-Based Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Nonvested Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period to recognize remaining cost | 1 year 11 months 15 days | |
Unrecognized compensation costs related to non-vested stock awards | $ 10.1 | $ 7.3 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Awards (Details) - shares | 1 Months Ended | 6 Months Ended |
Nov. 30, 2022 | Mar. 31, 2023 | |
Total Restricted Shares | ||
Shares | ||
Beginning of period (in shares) | 848,188 | |
Granted (in shares) | 674,932 | |
Vested (in shares) | (566,807) | |
Forfeited (in shares) | (3,474) | |
End of period (in shares) | 952,839 | |
Performance-Based Restricted Shares | ||
Shares | ||
Beginning of period (in shares) | 436,146 | |
Granted (in shares) | 249,534 | |
Vested (in shares) | (334,736) | |
Forfeited (in shares) | (1,958) | |
End of period (in shares) | 348,986 | |
Award vesting period | 3 years | |
Performance based restricted stock settled in cash payment (in shares) | 92,104 | |
Time-based restricted stock | ||
Shares | ||
Beginning of period (in shares) | 412,042 | |
Granted (in shares) | 425,398 | |
Vested (in shares) | (232,071) | |
Forfeited (in shares) | (1,516) | |
End of period (in shares) | 603,853 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share. Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||||
Income from continuing operations | $ 34,707 | $ 44,678 | $ 59,115 | $ 79,573 |
Loss from discontinued operations, net of tax | 0 | (6) | (77) | (16) |
Net income | $ 34,707 | $ 44,672 | $ 59,038 | $ 79,557 |
Denominator: | ||||
Basic weighted-average shares (in shares) | 30,394 | 30,594 | 30,464 | 30,464 |
Dilutive effect of restricted stock awards (in shares) | 211 | 222 | 234 | 300 |
Dilutive effect of stock options (in shares) | 5 | 7 | 4 | 8 |
Dilutive weighted-average shares (in shares) | 30,610 | 30,823 | 30,702 | 30,772 |
Basic income per share: | ||||
Continuing operations (in USD per share) | $ 1.14 | $ 1.46 | $ 1.94 | $ 2.61 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | 1.14 | 1.46 | 1.94 | 2.61 |
Diluted income per share: | ||||
Continuing operations (in USD per share) | 1.13 | 1.45 | 1.93 | 2.59 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | $ 1.13 | $ 1.45 | $ 1.93 | $ 2.59 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options (in shares) | 12 | 13 | 12 | 31 |
Time-based restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options (in shares) | 119 | 188 | 134 | 0 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Other Liabilities Disclosure [Abstract] | ||||||
Accrued compensations and benefits | $ 32,013 | $ 57,781 | ||||
Customer deposits | 31,432 | 34,270 | ||||
Accrued interest | 23,062 | 22,723 | ||||
Warranty reserve | 13,073 | $ 13,159 | 13,926 | $ 12,681 | $ 12,743 | $ 12,931 |
Litigation accruals | 8,070 | 9,832 | ||||
Income tax liabilities | 775 | 320 | ||||
Other | 33,552 | 35,536 | ||||
Total | $ 141,977 | $ 174,388 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 USD ($) state region | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) state segment region | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | May 19, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Number of states in which home building segments operate | state | 13 | 13 | ||||
Number of regions in which entity operates | region | 3 | 3 | ||||
Number of reportable segments | segment | 3 | |||||
Revenue | $ 543,908 | $ 508,506 | $ 988,836 | $ 962,655 | ||
Operating income | 38,792 | 54,611 | 67,294 | 95,550 | ||
Depreciation and amortization | 3,020 | 3,031 | 5,533 | 5,912 | ||
Capital expenditures | 7,824 | 6,195 | ||||
Assets | 2,268,096 | 2,268,096 | $ 2,251,963 | |||
Imagine Homes | ||||||
Segment Reporting Information [Line Items] | ||||||
Equity method investment, ownership percentage | 33% | |||||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income | 73,274 | 92,182 | 130,572 | 162,965 | ||
Depreciation and amortization | 2,725 | 2,551 | 4,933 | 4,984 | ||
Corporate and unallocated | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income | (34,482) | (37,571) | (63,278) | (67,415) | ||
Depreciation and amortization | 295 | 480 | 600 | 928 | ||
Capital expenditures | 2,574 | 2,072 | ||||
Assets | 636,001 | 636,001 | 616,858 | |||
West | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 330,413 | 303,492 | 605,228 | 561,158 | ||
West | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income | 45,513 | 58,103 | 82,870 | 100,827 | ||
Depreciation and amortization | 1,939 | 1,810 | 3,544 | 3,409 | ||
Capital expenditures | 3,086 | 3,275 | ||||
Assets | 958,771 | 958,771 | 995,339 | |||
East | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 120,071 | 128,935 | 206,261 | 247,104 | ||
East | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income | 16,244 | 24,072 | 25,506 | 43,931 | ||
Depreciation and amortization | 388 | 367 | 661 | 802 | ||
Capital expenditures | 1,239 | 253 | ||||
Assets | 355,234 | 355,234 | 334,323 | |||
Southeast | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 93,424 | 76,079 | 177,347 | 154,393 | ||
Southeast | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income | 11,517 | 10,007 | 22,196 | 18,207 | ||
Depreciation and amortization | 398 | $ 374 | 728 | 773 | ||
Capital expenditures | 925 | $ 595 | ||||
Assets | $ 318,090 | $ 318,090 | $ 305,443 |
Uncategorized Items - bzh-20230
Label | Element | Value |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 14.31 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice | $ 14.31 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 27,507 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber | 27,507 |