Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, $0.001 par value | |
Trading Symbol | BZH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,081,948 | |
Entity Central Index Key | 0000915840 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 73,212 | $ 345,590 |
Restricted cash | 35,224 | 40,699 |
Accounts receivable (net of allowance of $284 and $284, respectively) | 64,566 | 45,598 |
Income tax receivable | 1,675 | 0 |
Owned inventory | 2,171,924 | 1,756,203 |
Deferred tax assets, net | 131,951 | 133,949 |
Property and equipment, net | 38,135 | 31,144 |
Operating lease right-of-use assets | 19,175 | 17,398 |
Goodwill | 11,376 | 11,376 |
Other assets | 47,308 | 29,076 |
Total assets | 2,594,546 | 2,411,033 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade accounts payable | 188,872 | 154,256 |
Operating lease liabilities | 20,560 | 18,969 |
Other liabilities | 137,391 | 156,961 |
Total debt (net of debt issuance costs of $8,734 and $5,759, respectively) | 1,069,408 | 978,028 |
Total liabilities | 1,416,231 | 1,308,214 |
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, 31,082,264 issued and outstanding and 31,351,434 issued and outstanding, respectively) | 31 | 31 |
Paid-in capital | 852,165 | 864,778 |
Retained earnings | 326,119 | 238,010 |
Total stockholders’ equity | 1,178,315 | 1,102,819 |
Total liabilities and stockholders’ equity | $ 2,594,546 | $ 2,411,033 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
ASSETS | ||
Allowances for accounts receivable | $ 284 | $ 284 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Unamortized debt issuance expense | $ 8,734 | $ 5,759 |
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) | 31,082,264 | 31,351,434 |
Common stock outstanding (in shares) | 31,082,264 | 31,351,434 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Total revenue | $ 595,682 | $ 572,544 | $ 1,524,040 | $ 1,561,380 |
Home construction and land sales expenses | 492,178 | 455,485 | 1,240,953 | 1,255,356 |
Inventory impairments and abandonments | 200 | 315 | 200 | 616 |
Gross profit | 103,304 | 116,744 | 282,887 | 305,408 |
Commissions | 21,233 | 19,473 | 52,764 | 51,883 |
General and administrative expenses | 49,655 | 46,464 | 135,645 | 129,891 |
Depreciation and amortization | 3,892 | 2,907 | 9,698 | 8,440 |
Operating income | 28,524 | 47,900 | 84,780 | 115,194 |
Loss on extinguishment of debt, net | 0 | (18) | (437) | (533) |
Other income, net | 1,136 | 2,176 | 14,136 | 3,759 |
Income from continuing operations before income taxes | 29,660 | 50,058 | 98,479 | 118,420 |
Expense from income taxes | 2,452 | 6,241 | 10,372 | 15,488 |
Income from continuing operations | 27,208 | 43,817 | 88,107 | 102,932 |
Income (loss) from discontinued operations, net of tax | 2 | 0 | 2 | (77) |
Net income | $ 27,210 | $ 43,817 | $ 88,109 | $ 102,855 |
Weighted-average number of shares: | ||||
Basic (in shares) | 30,513 | 30,395 | 30,625 | 30,335 |
Diluted (in shares) | 30,935 | 30,860 | 31,017 | 30,649 |
Basic income per share: | ||||
Continuing operations (in USD per share) | $ 0.89 | $ 1.44 | $ 2.88 | $ 3.39 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | 0.89 | 1.44 | 2.88 | 3.39 |
Diluted income per share: | ||||
Continuing operations (in USD per share) | 0.88 | 1.42 | 2.84 | 3.36 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | $ 0.88 | $ 1.42 | $ 2.84 | $ 3.36 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings |
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 and comprehensive income | 102,855 | 102,855 | ||
Stock-based compensation expense | 5,247 | 5,247 | ||
Stock option exercises (in shares) | 2 | |||
Stock option exercises | 12 | 12 | ||
Shares issued under employee stock plans, net (in shares) | 675 | |||
Forfeiture and other settlements of restricted stock (in shares) | (12) | |||
Common stock redeemed for tax liability (in shares) | (206) | |||
Common stock redeemed for tax liability | (2,615) | (2,615) | ||
Ending balance (in shares) at Jun. 30, 2023 | 31,339 | |||
Ending balance at Jun. 30, 2023 | 1,044,785 | $ 31 | 862,500 | 182,254 |
Beginning balance (in shares) at Mar. 31, 2023 | 31,347 | |||
Beginning balance at Mar. 31, 2023 | 998,985 | $ 31 | 860,517 | 138,437 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income and comprehensive income | 43,817 | 43,817 | ||
Stock-based compensation expense | 1,989 | 1,989 | ||
Stock option exercises (in shares) | 2 | |||
Stock option exercises | 12 | 12 | ||
Forfeiture and other settlements of restricted stock (in shares) | (9) | |||
Common stock redeemed for tax liability (in shares) | (1) | |||
Common stock redeemed for tax liability | (18) | (18) | ||
Ending balance (in shares) at Jun. 30, 2023 | 31,339 | |||
Ending balance at Jun. 30, 2023 | 1,044,785 | $ 31 | 862,500 | 182,254 |
Beginning balance (in shares) at Sep. 30, 2023 | 31,351 | |||
Beginning balance at Sep. 30, 2023 | 1,102,819 | $ 31 | 864,778 | 238,010 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income and comprehensive income | 88,109 | 88,109 | ||
Stock-based compensation expense | 5,536 | 5,536 | ||
Stock option exercises (in shares) | 2 | |||
Stock option exercises | 16 | 16 | ||
Shares issued under employee stock plans, net (in shares) | 383 | |||
Shares issued under employee stock plans, net | 1 | $ 1 | ||
Forfeiture and other settlements of restricted stock (in shares) | (26) | |||
Common stock redeemed for tax liability (in shares) | (173) | |||
Common stock redeemed for tax liability | $ (5,237) | (5,237) | ||
Share repurchases (in shares) | (455) | (455) | ||
Share repurchases | $ (12,929) | $ (1) | (12,928) | |
Ending balance (in shares) at Jun. 30, 2024 | 31,082 | |||
Ending balance at Jun. 30, 2024 | 1,178,315 | $ 31 | 852,165 | 326,119 |
Beginning balance (in shares) at Mar. 31, 2024 | 31,547 | |||
Beginning balance at Mar. 31, 2024 | 1,161,577 | $ 32 | 862,636 | 298,909 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income and comprehensive income | 27,210 | 27,210 | ||
Stock-based compensation expense | 2,474 | 2,474 | ||
Shares issued under employee stock plans, net (in shares) | 7 | |||
Forfeiture and other settlements of restricted stock (in shares) | (16) | |||
Common stock redeemed for tax liability (in shares) | (1) | |||
Common stock redeemed for tax liability | $ (17) | (17) | ||
Share repurchases (in shares) | (455) | (455) | ||
Share repurchases | $ (12,929) | $ (1) | (12,928) | |
Ending balance (in shares) at Jun. 30, 2024 | 31,082 | |||
Ending balance at Jun. 30, 2024 | $ 1,178,315 | $ 31 | $ 852,165 | $ 326,119 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 88,109 | $ 102,855 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 9,698 | 8,440 |
Stock-based compensation expense | 5,536 | 5,247 |
Inventory impairments and abandonments | 200 | 616 |
Deferred and other income tax expense | 10,373 | 15,466 |
(Gain) loss on disposal of fixed assets | (350) | 1,178 |
Gain on sale of investment | (8,591) | 0 |
Loss on extinguishment of debt, net | 437 | 533 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (18,968) | 2,695 |
(Increase) decrease in income tax receivable | (1,675) | 9,987 |
Increase in inventory | (412,665) | (1,228) |
Increase in other assets | (1,374) | (5,346) |
Increase (decrease) in trade accounts payable | 34,616 | (6,828) |
Decrease in other liabilities | (28,327) | (37,783) |
Net cash (used in) provided by operating activities | (322,981) | 95,832 |
Cash flows from investing activities: | ||
Capital expenditures | (16,691) | (14,122) |
Proceeds from sale of fixed assets | 352 | 143 |
Purchases of investment securities | (7,536) | (7,838) |
Other | 0 | (2) |
Net cash used in investing activities | (23,875) | (21,819) |
Cash flows from financing activities: | ||
Repayment of debt | (202,195) | (4,998) |
Proceeds from issuance of debt | 250,000 | 0 |
Repayment of borrowings from credit facility | (150,000) | 0 |
Borrowings from credit facility | 195,000 | 0 |
Debt issuance costs | (5,653) | (2,575) |
Repurchase of common stock | (12,928) | 0 |
Tax payments for stock-based compensation awards | (5,237) | (2,615) |
Stock option exercises | 16 | 12 |
Net cash provided by (used in) financing activities | 69,003 | (10,176) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (277,853) | 63,837 |
Cash, cash equivalents, and restricted cash at beginning of period | 386,289 | 251,828 |
Cash, cash equivalents, and restricted cash at end of period | $ 108,436 | $ 315,665 |
Description of Business
Description of Business | 9 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” or 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 differentiators of Mortgage Choice, Choice Plans ® , and Surprising Performance, while seeking to maximize our investment returns over the course of a housing cycle. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2024 | |
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 2023 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 nine months ended June 30, 2024 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 2024 began on October 1, 2023 and ends on September 30, 2024. Our fiscal year 2023 began on October 1, 2022 and ended on September 30, 2023. 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. The repurchase program has no expiration date. The Company repurchased 455 thousand shares of its common stock for $12.9 million at an average price per share of $28.41 during the three and nine months ended June 30, 2024 through open market transactions. No share repurchases were made during fiscal year 2023. All shares have been retired upon repurchase. The aggregate reduction to stockholders' equity related to share repurchases during the three and nine months ended June 30, 2024 was $12.9 million . As of June 30, 2024, the remaining availability of the share repurchase program was $28.9 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 Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers . The following table presents our total revenue disaggregated by revenue stream for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Homebuilding revenue $ 589,643 $ 570,535 $ 1,509,198 $ 1,556,626 Land sales and other revenue 6,039 2,009 14,842 4,754 Total revenue (a) $ 595,682 $ 572,544 $ 1,524,040 $ 1,561,380 (a) Please see Note 14 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of price concessions, including discounts on home prices, discounts on homebuilding options and option upgrades. Closing cost incentives, such as seller-paid financing or closing costs, including rate buydowns, are recognized as a cost of selling the home and are included in home construction expenses. Homebuilding revenue 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 totaled $26.6 million and $27.6 million as of June 30, 2024 and September 30, 2023, respectively. Of the customer liabilities outstanding as of September 30, 2023, $3.5 million and $25.4 million was recognized in revenue during the three and nine months ended June 30, 2024 upon closing of the related homes. Land sales and oth er revenue Land sales revenue relates to land that does not fit within our homebuilding programs or 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 Segment Reporting. In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 will be effective for our fiscal year ending September 30, 2025 and for our interim periods starting in our first quarter of fiscal 2026. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact that the adoption of ASU 2023-07 may have on our consolidated financial statements and disclosures. Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 will be effective for our fiscal year ending September 30, 2026. Early adoption is permitted and the amendments in this update should be applied on a prospective basis. The Company is currently evaluating the impact that the adoption of ASU 2023-09 may have on our consolidated financial statements and disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Jun. 30, 2024 | |
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: Nine Months Ended June 30, in thousands 2024 2023 Supplemental disclosure of non-cash activity: Increase in operating lease right-of-use assets (a) $ 4,114 $ 8,814 Increase in operating lease liabilities (a) $ 4,114 $ 9,262 Supplemental disclosure of cash activity: Interest payments $ 60,715 $ 58,405 Income tax payments $ 10,321 $ 1,450 Tax refunds received $ — $ 9,987 Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 73,212 $ 276,125 Restricted cash 35,224 39,540 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 108,436 $ 315,665 (a) Represents leases renewed or additional leases that commenced during the nine months ended June 30, 2024 and 2023. |
Owned Inventory
Owned Inventory | 9 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Owned Inventory | Owned Inventory The components of our owned inventory are as follows as of June 30, 2024 and September 30, 2023: in thousands As of June 30, 2024 As of September 30, 2023 Homes under construction $ 914,549 $ 644,363 Land under development 1,002,720 870,740 Land held for future development 19,879 19,879 Land held for sale 14,724 18,579 Capitalized interest 126,562 112,580 Model homes 93,490 90,062 Total owned inventory $ 2,171,924 $ 1,756,203 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 June 30, 2024, we had 2,783 homes under construction, including 1,135 spec homes totaling $353.3 million (899 in-process spec homes totaling $261.1 million, and 236 finished spec homes totaling $92.2 million). As of September 30, 2023 , we had 2,163 homes under construction, including 779 spec homes totaling $218.0 million (645 in-process spec homes totaling $162.0 million, and 134 finished spec units totaling $56.0 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 or strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2 to the consolidated financial statements within our 2023 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 June 30, 2024 and September 30, 2023: in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned June 30, 2024 West $ 1,124,780 $ 3,483 $ 11,423 $ 1,139,686 East 437,586 10,888 2,625 451,099 Southeast 369,549 5,508 676 375,733 Corporate and unallocated (b) 205,406 — — 205,406 Total $ 2,137,321 $ 19,879 $ 14,724 $ 2,171,924 September 30, 2023 West $ 914,908 $ 3,483 $ 14,702 $ 933,093 East 325,395 10,888 3,201 339,484 Southeast 297,142 5,508 676 303,326 Corporate and unallocated (b) 180,300 — — 180,300 Total $ 1,717,745 $ 19,879 $ 18,579 $ 1,756,203 (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 4 to the consolidated financial statements within our 2023 Annual Report. The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Abandonments: West $ 9 $ 315 $ 9 $ 462 East 91 — 91 154 Southeast 100 — 100 — Total abandonments charges $ 200 $ 315 $ 200 $ 616 Total impairment and abandonment charges $ 200 $ 315 $ 200 $ 616 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 nine months ended June 30, 2024 and 2023. 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 nine months ended June 30, 2024 and 2023. 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, 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 non-refundable deposit amount and any related capitalized costs in the period such decision is made. We recognized $0.2 million of abandonment charges during the three and nine months ended June 30, 2024. We recognized $0.3 million and $0.6 million of abandonment charges during the three and nine months ended June 30, 2023, respectively. As we grow our business in the years ahead, the dollar value of abandonment charges may also grow. 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 issuance of an irrevocable letter of credit or surety bond 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, the cancellation 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 June 30, 2024 and September 30, 2023: As of June 30, 2024 As of September 30, 2023 in thousands Deposits and non-refundable pre-acquisition costs incurred (a) $ 206,431 $ 165,371 Remaining purchase price if lot option agreements are exercised $ 1,201,852 $ 949,447 (a) |
Interest
Interest | 9 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Interest | Interest Interest capitalized during the three and nine months ended June 30, 2024 and 2023 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 June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Capitalized interest in inventory, beginning of period $ 123,214 $ 113,886 $ 112,580 $ 109,088 Interest incurred 20,615 18,027 58,510 53,891 Capitalized interest amortized to home construction and land sales expenses (a) (17,267) (17,504) (44,528) (48,570) Capitalized interest in inventory, end of period $ 126,562 $ 114,409 $ 126,562 $ 114,409 (a) 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 | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2024 and September 30, 2023: in thousands Maturity Date June 30, 2024 September 30, 2023 6.750% Senior Notes (2025 Notes) March 2025 $ — $ 202,195 5.875% Senior Notes (2027 Notes) October 2027 357,255 357,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 7.500% Senior Notes (2031 Notes) March 2031 250,000 — Unamortized debt issuance costs (8,734) (5,759) Total Senior Notes, net 948,521 903,691 Junior Subordinated Notes (net of unamortized accretion of $24,886 and $26,436, respectively) July 2036 75,887 74,337 Senior Unsecured Revolving Credit Facility March 2028 45,000 — Total debt, net $ 1,069,408 $ 978,028 Senior Unsecured Revolving Credit Facility The Senior Unsecured Revolving Credit Facility (Unsecured Facility) provides working capital and letter of credit borrowing capacity of $300.0 million. The $300.0 million capacity includes a letter of credit facility of up to $100.0 million. The Company has the right from time to time to request to i ncrease the size of the commitments under the Unsecured Facility by up to $100.0 million for a maximum of $400.0 million. In March 2024, the Company executed an amendment to extend the termination date (Termination Date) from October 13, 2026 to March 15, 2028. The Company may borrow, repay, and reborrow amounts under the Unsecured Facility until the Termination Date. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Unsecured Facility and are jointly and severally liable for obligations under the Unsecured Facility. For additional discussion of the Unsecured Facility, refer to Note 7 to the consolidated financial statements within our 2023 Annual Report. As of June 30, 2024, we had $45.0 million in borrow ings and no letters of credit outstanding under the Unsecured Facility, resulting in a remaining capacity of $255.0 million. The Unsecured Facility requires compliance with certain covenants, including affirmative covenants, negative covenants and financial covenants. As of June 30, 2024, the Company believes it was in compliance with all such covenants. Letter of Credit Facilities The Company has entered into stand-alone letter of credit agreements with banks, secured with cash or certificates of deposit, 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 Unsecured Facility). As of June 30, 2024 and September 30, 2023, the Company had letters of credit outstanding under these additional facilities of $34.9 million and $31.2 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 that 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 future secured indebtedness, to the extent of the value of the assets securing such 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. Each guarantor subsidiary is a wholly owned subsidiary of Beazer Homes. The 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. The Company's Senior Notes are issued under indentures that contain certai n 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 June 30, 2024. In March 2024, we issued and sold $250.0 million aggregate principal amount of the 2031 Notes at par (before underwriting and other issuance costs) through a private placement to qualified institutional buyers. Interest on the 2031 Notes is payable semiannually, beginning in September 2024. The 2031 Notes will mature in March 2031. The covenants related to the 2031 Notes are substantially consistent with our other Senior Notes. In March 2024 we also redeemed $197.9 million of our outstanding 2025 Notes using proceeds from the issuance of the 2031 Notes, resulting in a loss on extinguishment of debt of $0.4 million. The Company terminated, cancelled, and discharged all of its obligations under the 2025 Notes as of March 31, 2024. No debt repurchases were made during the three months ended June 30, 2024. For the nine months ended June 30, 2024, we repurchased $202.2 million of our outstanding 2025 Notes using proceeds from the issuance of the 2031 Notes and cash on hand, resulting in a loss on extinguishment of debt of $0.4 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 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. 7.500% Senior Notes March 2024 March 2031 On or prior to March 15, 2027, we may redeem up to 35% of the aggregate principal amount of the 2031 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.500% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2031 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to March 15, 2027, 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, 2027, callable at a redemption price equal to 103.750% of the principal amount; on or after March 15, 2028, callable at a redemption price equal to 101.875% of the principal amount; on or after March 15, 2029, 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 June 30, 2024. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, wh i ch was a weighted-average of 8.04% as of June 30, 2024. 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 June 30, 2024, the unamortized accretion was $24.9 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 a three-month LIBOR (on and prior to June 30, 2023) plus 2.45% per annum, or three-month SOFR (on and after July 1, 2023) plus 2.71% 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 June 30, 2024, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes. |
Operating Leases
Operating Leases | 9 Months Ended |
Jun. 30, 2024 | |
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. Some 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. The following table presents operating lease expense and cash payments on lease liabilities for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Operating lease expense $ 1,108 $ 963 $ 3,207 $ 2,920 Cash payments on lease liabilities $ 1,399 $ 1,027 $ 3,393 $ 3,271 At June 30, 2024 and 2023, the weighted-average remaining lease term and discount rate were as follows: As of June 30, 2024 2023 Weighted-average remaining lease term 6.7 years 7.2 years Weighted-average discount rate 6.26% 5.95% The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2024: Fiscal Years Ending September 30, in thousands 2024 (a) $ 1,100 2025 4,572 2026 4,117 2027 3,215 2028 2,982 Thereafter 9,989 Total lease payments 25,975 Less: imputed interest 5,415 Total operating lease liabilities $ 20,560 (a) Remaining lease payments are for the period beginning July 1, 2024 through September 30, 2024. |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2024 | |
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, which 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. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review in cludes 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 selling 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 Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Balance at beginning of period $ 12,129 $ 13,073 $ 13,046 $ 13,926 Warranty provision 2,387 3,164 6,499 7,102 Warranty expenditures (2,681) (2,971) (7,710) (7,762) Balance at end of period $ 11,835 $ 13,266 $ 11,835 $ 13,266 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, if applicable. 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, if applicable. 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 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 $ 8.8 million and $9.4 million in other liabilities on our condensed consolidated balance sheets related to litigation matters as of June 30, 2024 and September 30, 2023, respectively. Surety Bonds and Letters of Credit We had outstanding letters of credit and surety bonds of $34.9 million and $265.9 million, r espectively, as of June 30, 2024, related principally to our obligations to local governments to construct roads and other improvements in various developments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2024 | |
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. The fair value of assets deemed to be impaired is determined based upon the type of asset being evaluated. The 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 for each hierarchy level: in thousands Level 1 Level 2 Level 3 Total As of June 30, 2024 Deferred compensation plan assets (a) $ 7,616 $ — $ — $ 7,616 As of September 30, 2023 Deferred compensation plan assets (a) $ 6,495 $ — $ — $ 6,495 (a) Amount is measured at fair value on a recurring basis and included in other assets within the condensed consolidated balance sheets. 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 assets and liabilities as of June 30, 2024 and September 30, 2023: As of June 30, 2024 As of September 30, 2023 in thousands Carrying Fair Value Carrying Fair Value Financial assets Certificates of deposit (a) $ 9,362 $ 9,582 $ 1,951 $ 1,986 Total financial assets $ 9,362 $ 9,582 $ 1,951 $ 1,986 Financial liabilities (b) Senior Notes (c) $ 948,521 $ 957,907 $ 903,691 $ 858,528 Junior Subordinated Notes (d) 75,887 75,887 74,337 74,337 Total financial liabilities $ 1,024,408 $ 1,033,794 $ 978,028 $ 932,865 (a) Certificates of deposit held for investment with an original maturity greater than three months are carried at original cost plus accrued interest and reported as other assets on the condensed consolidated balance sheets. The type of certificates of deposit that the Company invests in are not considered debt securities under ASC Topic 320, Investments - Debt Securities . The estimated fair value of our certificates of deposit has been determined using quoted market rates (Level 2). (b) Carrying amounts for financial liabilities are net of unamortized debt issuance costs o r accretion. (c) The estimated fair value of our publicly-held Senior Notes has been determined using quoted market rates (Level 2). (d) 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 | 9 Months Ended |
Jun. 30, 2024 | |
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 $2.5 million and $10.4 million for the three and nine months ended June 30, 2024, respectively, compared to $6.2 million and $15.5 million for the three and nine months ended June 30, 2023, respectively. Income tax expense for the nine months ended June 30, 2024 was primarily driven by income tax expense on earnings from continuing operations and permanent differences, partially offset by energy efficiency tax credits generated from expected closings during the current year, the discrete tax benefits related to the generation of additional energy efficiency tax credits from homes closed in prior periods, and stock-based compensation activity in the period. Income tax expense for the nine months ended June 30, 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 discrete tax benefits related to the generation of additional energy efficiency tax credits for homes closed in prior periods and interest received with the refund of our alternative minimum tax credit. 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 June 30, 2024, 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, 2023, and such conclusions are based on similar company specific and industry factors to those discussed in Note 12 to the consolidated financial statements within our 2023 Annual Report. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock-based compensation expense is included in general and administrative expenses in our condensed consolidated statements of operations. The f ollowing table presents a summary of stock-based compensation expense related to stock options and restricted stock awards for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Stock-based compensation expense $ 2,474 $ 1,989 $ 5,536 $ 5,247 Stock Options Following is a summary of stock option activity for the nine months ended June 30, 2024: Nine Months Ended June 30, 2024 Shares Weighted Average Outstanding at beginning of period 13,575 $ 9.61 Granted 50 27.73 Exercised (2,110) 7.56 Outstanding at end of period 11,515 10.07 Exercisable at end of period 11,365 $ 9.83 As of June 30, 2024 and September 30, 2023, there was less than $0.1 million of total unrecognized compensation costs related to unvested stock options, respectively. Restricted Stock Awards During the nine months ended June 30, 2024, 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 nine months ended June 30, 2024: Nine Months Ended June 30, 2024 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 348,223 593,834 942,057 Granted (a) 183,396 197,831 381,227 Vested (210,176) (321,330) (531,506) Forfeited (791) (24,661) (25,452) End of period 320,652 445,674 766,326 (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 2023, we issued 108,108 shares earned above target level based on the performance level achieved under the fiscal 2021 performance-based award plan. As of June 30, 2024 and September 30, 2023, total unrecognized compensation costs related to unvested restricted stock awards were $9.3 million and $6.9 million, respectively. The costs remaining as of June 30, 2024 are expected to be recognized over a weighted average period of 1.80 years . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income per share is calculated by dividing net income by the weighted-average number of shares outstanding during the period. Diluted income per share adjusts the basic income 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 June 30, Nine Months Ended June 30, in thousands (except per share data) 2024 2023 2024 2023 Numerator: Income from continuing operations $ 27,208 $ 43,817 $ 88,107 $ 102,932 Income (loss) from discontinued operations, net of tax 2 — 2 (77) Net income $ 27,210 $ 43,817 $ 88,109 $ 102,855 Denominator: Basic weighted-average shares 30,513 30,395 30,625 30,335 Dilutive effect of restricted stock awards 414 458 384 309 Dilutive effect of stock options 8 7 8 5 Diluted weighted-average shares (a) 30,935 30,860 31,017 30,649 Basic income per share: Continuing operations $ 0.89 $ 1.44 $ 2.88 $ 3.39 Discontinued operations — — — — Total $ 0.89 $ 1.44 $ 2.88 $ 3.39 Diluted income per share: Continuing operations $ 0.88 $ 1.42 $ 2.84 $ 3.36 Discontinued operations — — — — Total $ 0.88 $ 1.42 $ 2.84 $ 3.36 (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 June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Stock options — 13 1 14 Time-based restricted stock 3 — 1 128 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following as of June 30, 2024 and September 30, 2023: in thousands As of June 30, 2024 As of September 30, 2023 Accrued compensations and benefits 35,166 $ 50,242 Customer deposits 26,646 27,577 Accrued interest 17,671 23,132 Warranty reserves 11,835 13,046 Litigation accruals 8,805 9,404 Income tax liabilities — 272 Other 37,268 33,288 Total $ 137,391 $ 156,961 |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2024 | |
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, land and lot sales, and our title operations. Land sales revenue relates to land that does not fit within our homebuilding programs or strategic plans. We also provide title examinations for our homebuyers in certain markets. 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 East : Delaware, Indiana, Maryland, New Jersey (a) , Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina (a) 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, land sales expense, title operations 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 2023 Annual Report. The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Revenue West $ 369,359 $ 328,347 $ 953,790 $ 933,575 East 123,565 133,096 310,186 339,357 Southeast 102,758 111,101 260,064 288,448 Total revenue $ 595,682 $ 572,544 $ 1,524,040 $ 1,561,380 Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Operating income West $ 45,582 $ 55,629 $ 119,951 $ 138,499 East 9,158 16,415 27,796 41,921 Southeast 12,755 16,930 32,848 39,126 Segment total 67,495 88,974 180,595 219,546 Corporate and unallocated (a) (38,971) (41,074) (95,815) (104,352) Total operating income $ 28,524 $ 47,900 $ 84,780 $ 115,194 (a) Includes amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, when applicable, 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 certain other amounts that are not allocated to our operating segments. Below operating income, we recognized a gain on sale of investment of $8.6 million during the nine months ended June 30, 2024 within other income, net. We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold d uring the quarter ended March 31, 2024 . In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other asset s in our condensed consolidated balance sheets. Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Depreciation and amortization West $ 2,520 $ 1,750 $ 6,283 $ 5,294 East 494 402 1,109 1,063 Southeast 397 421 985 1,149 Segment total 3,411 2,573 8,377 7,506 Corporate and unallocated (a) 481 334 1,321 934 Total depreciation and amortization $ 3,892 $ 2,907 $ 9,698 $ 8,440 (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: Nine Months Ended June 30, in thousands 2024 2023 Capital expenditures West $ 9,132 $ 6,840 East 1,829 1,975 Southeast 756 1,273 Corporate and unallocated 4,974 4,034 Total capital expenditures $ 16,691 $ 14,122 The following table presents assets by segment as of June 30, 2024 and September 30, 2023: in thousands June 30, 2024 September 30, 2023 Assets West $ 1,220,127 $ 994,597 East 477,204 356,020 Southeast 391,874 320,430 Corporate and unallocated (a) 505,341 739,986 Total assets $ 2,594,546 $ 2,411,033 (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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 27,210 | $ 43,817 | $ 88,109 | $ 102,855 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2024 | |
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 2024 began on October 1, 2023 and ends on September 30, 2024. Our fiscal year 2023 began on October 1, 2022 and ended on September 30, 2023. |
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. The repurchase program has no expiration date. The Company repurchased 455 thousand shares of its common stock for $12.9 million at an average price per share of $28.41 during the three and nine months ended June 30, 2024 through open market transactions. No share repurchases were made during fiscal year 2023. All shares have been retired upon repurchase. The aggregate reduction to stockholders' equity related to share repurchases during the three and nine months ended June 30, 2024 was $12.9 million . As of June 30, 2024, the remaining availability of the share repurchase program was $28.9 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 Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers . Homebuilding revenue Homebuilding revenue is reported net of price concessions, including discounts on home prices, discounts on homebuilding options and option upgrades. Closing cost incentives, such as seller-paid financing or closing costs, including rate buydowns, are recognized as a cost of selling the home and are included in home construction expenses. Homebuilding revenue 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 totaled $26.6 million and $27.6 million as of June 30, 2024 and September 30, 2023, respectively. Of the customer liabilities outstanding as of September 30, 2023, $3.5 million and $25.4 million was recognized in revenue during the three and nine months ended June 30, 2024 upon closing of the related homes. Land sales and oth er revenue Land sales revenue relates to land that does not fit within our homebuilding programs or 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 Segment Reporting. In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 will be effective for our fiscal year ending September 30, 2025 and for our interim periods starting in our first quarter of fiscal 2026. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is currently evaluating the impact that the adoption of ASU 2023-07 may have on our consolidated financial statements and disclosures. Income Taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 will be effective for our fiscal year ending September 30, 2026. Early adoption is permitted and the amendments in this update should be applied on a prospective basis. The Company is currently evaluating the impact that the adoption of ASU 2023-09 may have on our consolidated financial statements and 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) | 9 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenue disaggregated by revenue stream for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Homebuilding revenue $ 589,643 $ 570,535 $ 1,509,198 $ 1,556,626 Land sales and other revenue 6,039 2,009 14,842 4,754 Total revenue (a) $ 595,682 $ 572,544 $ 1,524,040 $ 1,561,380 (a) Please see Note 14 for total revenue disaggregated by reportable segment. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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: Nine Months Ended June 30, in thousands 2024 2023 Supplemental disclosure of non-cash activity: Increase in operating lease right-of-use assets (a) $ 4,114 $ 8,814 Increase in operating lease liabilities (a) $ 4,114 $ 9,262 Supplemental disclosure of cash activity: Interest payments $ 60,715 $ 58,405 Income tax payments $ 10,321 $ 1,450 Tax refunds received $ — $ 9,987 Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 73,212 $ 276,125 Restricted cash 35,224 39,540 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 108,436 $ 315,665 (a) Represents leases renewed or additional leases that commenced during the nine months ended June 30, 2024 and 2023. |
Owned Inventory (Tables)
Owned Inventory (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of our owned inventory are as follows as of June 30, 2024 and September 30, 2023: in thousands As of June 30, 2024 As of September 30, 2023 Homes under construction $ 914,549 $ 644,363 Land under development 1,002,720 870,740 Land held for future development 19,879 19,879 Land held for sale 14,724 18,579 Capitalized interest 126,562 112,580 Model homes 93,490 90,062 Total owned inventory $ 2,171,924 $ 1,756,203 |
Schedule of Total Owned Inventory, by Segment | Total owned inventory by reportable segment is presented in the table below as of June 30, 2024 and September 30, 2023: in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned June 30, 2024 West $ 1,124,780 $ 3,483 $ 11,423 $ 1,139,686 East 437,586 10,888 2,625 451,099 Southeast 369,549 5,508 676 375,733 Corporate and unallocated (b) 205,406 — — 205,406 Total $ 2,137,321 $ 19,879 $ 14,724 $ 2,171,924 September 30, 2023 West $ 914,908 $ 3,483 $ 14,702 $ 933,093 East 325,395 10,888 3,201 339,484 Southeast 297,142 5,508 676 303,326 Corporate and unallocated (b) 180,300 — — 180,300 Total $ 1,717,745 $ 19,879 $ 18,579 $ 1,756,203 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. (b) |
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 June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Abandonments: West $ 9 $ 315 $ 9 $ 462 East 91 — 91 154 Southeast 100 — 100 — Total abandonments charges $ 200 $ 315 $ 200 $ 616 Total impairment and abandonment charges $ 200 $ 315 $ 200 $ 616 |
Schedule of Interests in Lot Option Agreements | The following table provides a summary of our interests in lot option agreements as of June 30, 2024 and September 30, 2023: As of June 30, 2024 As of September 30, 2023 in thousands Deposits and non-refundable pre-acquisition costs incurred (a) $ 206,431 $ 165,371 Remaining purchase price if lot option agreements are exercised $ 1,201,852 $ 949,447 (a) |
Interest (Tables)
Interest (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule of Real Estate Inventory, Capitalized Interest Costs | The following table presents certain information regarding interest for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Capitalized interest in inventory, beginning of period $ 123,214 $ 113,886 $ 112,580 $ 109,088 Interest incurred 20,615 18,027 58,510 53,891 Capitalized interest amortized to home construction and land sales expenses (a) (17,267) (17,504) (44,528) (48,570) Capitalized interest in inventory, end of period $ 126,562 $ 114,409 $ 126,562 $ 114,409 (a) 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) | 9 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2024 and September 30, 2023: in thousands Maturity Date June 30, 2024 September 30, 2023 6.750% Senior Notes (2025 Notes) March 2025 $ — $ 202,195 5.875% Senior Notes (2027 Notes) October 2027 357,255 357,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 7.500% Senior Notes (2031 Notes) March 2031 250,000 — Unamortized debt issuance costs (8,734) (5,759) Total Senior Notes, net 948,521 903,691 Junior Subordinated Notes (net of unamortized accretion of $24,886 and $26,436, respectively) July 2036 75,887 74,337 Senior Unsecured Revolving Credit Facility March 2028 45,000 — Total debt, net $ 1,069,408 $ 978,028 |
Schedule of 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 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. 7.500% Senior Notes March 2024 March 2031 On or prior to March 15, 2027, we may redeem up to 35% of the aggregate principal amount of the 2031 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.500% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2031 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to March 15, 2027, 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, 2027, callable at a redemption price equal to 103.750% of the principal amount; on or after March 15, 2028, callable at a redemption price equal to 101.875% of the principal amount; on or after March 15, 2029, 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) | 9 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The following table presents operating lease expense and cash payments on lease liabilities for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Operating lease expense $ 1,108 $ 963 $ 3,207 $ 2,920 Cash payments on lease liabilities $ 1,399 $ 1,027 $ 3,393 $ 3,271 At June 30, 2024 and 2023, the weighted-average remaining lease term and discount rate were as follows: As of June 30, 2024 2023 Weighted-average remaining lease term 6.7 years 7.2 years Weighted-average discount rate 6.26% 5.95% |
Schedule of Maturity Analysis of the Annual Undiscounted Cash Flows | The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2024: Fiscal Years Ending September 30, in thousands 2024 (a) $ 1,100 2025 4,572 2026 4,117 2027 3,215 2028 2,982 Thereafter 9,989 Total lease payments 25,975 Less: imputed interest 5,415 Total operating lease liabilities $ 20,560 (a) Remaining lease payments are for the period beginning July 1, 2024 through September 30, 2024. |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Warranty Reserves | Changes in warranty reserves are as follows for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Balance at beginning of period $ 12,129 $ 13,073 $ 13,046 $ 13,926 Warranty provision 2,387 3,164 6,499 7,102 Warranty expenditures (2,681) (2,971) (7,710) (7,762) Balance at end of period $ 11,835 $ 13,266 $ 11,835 $ 13,266 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 for each hierarchy level: in thousands Level 1 Level 2 Level 3 Total As of June 30, 2024 Deferred compensation plan assets (a) $ 7,616 $ — $ — $ 7,616 As of September 30, 2023 Deferred compensation plan assets (a) $ 6,495 $ — $ — $ 6,495 (a) Amount is measured at fair value on a recurring basis and included in other assets within the condensed consolidated balance sheets. |
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 assets and liabilities as of June 30, 2024 and September 30, 2023: As of June 30, 2024 As of September 30, 2023 in thousands Carrying Fair Value Carrying Fair Value Financial assets Certificates of deposit (a) $ 9,362 $ 9,582 $ 1,951 $ 1,986 Total financial assets $ 9,362 $ 9,582 $ 1,951 $ 1,986 Financial liabilities (b) Senior Notes (c) $ 948,521 $ 957,907 $ 903,691 $ 858,528 Junior Subordinated Notes (d) 75,887 75,887 74,337 74,337 Total financial liabilities $ 1,024,408 $ 1,033,794 $ 978,028 $ 932,865 (a) Certificates of deposit held for investment with an original maturity greater than three months are carried at original cost plus accrued interest and reported as other assets on the condensed consolidated balance sheets. The type of certificates of deposit that the Company invests in are not considered debt securities under ASC Topic 320, Investments - Debt Securities . The estimated fair value of our certificates of deposit has been determined using quoted market rates (Level 2). (b) Carrying amounts for financial liabilities are net of unamortized debt issuance costs o r accretion. (c) The estimated fair value of our publicly-held Senior Notes has been determined using quoted market rates (Level 2). (d) 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) | 9 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | The f ollowing table presents a summary of stock-based compensation expense related to stock options and restricted stock awards for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Stock-based compensation expense $ 2,474 $ 1,989 $ 5,536 $ 5,247 |
Schedule of Stock Options Outstanding | Following is a summary of stock option activity for the nine months ended June 30, 2024: Nine Months Ended June 30, 2024 Shares Weighted Average Outstanding at beginning of period 13,575 $ 9.61 Granted 50 27.73 Exercised (2,110) 7.56 Outstanding at end of period 11,515 10.07 Exercisable at end of period 11,365 $ 9.83 |
Schedule of Nonvested Stock Awards Activity | Following is a summary of restricted stock activity for the nine months ended June 30, 2024: Nine Months Ended June 30, 2024 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 348,223 593,834 942,057 Granted (a) 183,396 197,831 381,227 Vested (210,176) (321,330) (531,506) Forfeited (791) (24,661) (25,452) End of period 320,652 445,674 766,326 (a) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 June 30, Nine Months Ended June 30, in thousands (except per share data) 2024 2023 2024 2023 Numerator: Income from continuing operations $ 27,208 $ 43,817 $ 88,107 $ 102,932 Income (loss) from discontinued operations, net of tax 2 — 2 (77) Net income $ 27,210 $ 43,817 $ 88,109 $ 102,855 Denominator: Basic weighted-average shares 30,513 30,395 30,625 30,335 Dilutive effect of restricted stock awards 414 458 384 309 Dilutive effect of stock options 8 7 8 5 Diluted weighted-average shares (a) 30,935 30,860 31,017 30,649 Basic income per share: Continuing operations $ 0.89 $ 1.44 $ 2.88 $ 3.39 Discontinued operations — — — — Total $ 0.89 $ 1.44 $ 2.88 $ 3.39 Diluted income per share: Continuing operations $ 0.88 $ 1.42 $ 2.84 $ 3.36 Discontinued operations — — — — Total $ 0.88 $ 1.42 $ 2.84 $ 3.36 (a) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended June 30, Nine Months Ended June 30, in thousands 2024 2023 2024 2023 Stock options — 13 1 14 Time-based restricted stock 3 — 1 128 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities | Other liabilities include the following as of June 30, 2024 and September 30, 2023: in thousands As of June 30, 2024 As of September 30, 2023 Accrued compensations and benefits 35,166 $ 50,242 Customer deposits 26,646 27,577 Accrued interest 17,671 23,132 Warranty reserves 11,835 13,046 Litigation accruals 8,805 9,404 Income tax liabilities — 272 Other 37,268 33,288 Total $ 137,391 $ 156,961 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2024 | |
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 Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Revenue West $ 369,359 $ 328,347 $ 953,790 $ 933,575 East 123,565 133,096 310,186 339,357 Southeast 102,758 111,101 260,064 288,448 Total revenue $ 595,682 $ 572,544 $ 1,524,040 $ 1,561,380 Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Operating income West $ 45,582 $ 55,629 $ 119,951 $ 138,499 East 9,158 16,415 27,796 41,921 Southeast 12,755 16,930 32,848 39,126 Segment total 67,495 88,974 180,595 219,546 Corporate and unallocated (a) (38,971) (41,074) (95,815) (104,352) Total operating income $ 28,524 $ 47,900 $ 84,780 $ 115,194 (a) Includes amortization of capitalized interest, capitalization and amortization of indirect costs, impairment of capitalized interest and capitalized indirect costs, when applicable, 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 certain other amounts that are not allocated to our operating segments. Below operating income, we recognized a gain on sale of investment of $8.6 million during the nine months ended June 30, 2024 within other income, net. We previously held a minority interest in a technology company specializing in digital marketing for new home communities, which was sold d uring the quarter ended March 31, 2024 . In exchange for the previously held investment, we received cash in escrow along with a minority partnership interest in the acquiring company, which was recorded within other asset s in our condensed consolidated balance sheets. Three Months Ended Nine Months Ended June 30, June 30, in thousands 2024 2023 2024 2023 Depreciation and amortization West $ 2,520 $ 1,750 $ 6,283 $ 5,294 East 494 402 1,109 1,063 Southeast 397 421 985 1,149 Segment total 3,411 2,573 8,377 7,506 Corporate and unallocated (a) 481 334 1,321 934 Total depreciation and amortization $ 3,892 $ 2,907 $ 9,698 $ 8,440 (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: Nine Months Ended June 30, in thousands 2024 2023 Capital expenditures West $ 9,132 $ 6,840 East 1,829 1,975 Southeast 756 1,273 Corporate and unallocated 4,974 4,034 Total capital expenditures $ 16,691 $ 14,122 The following table presents assets by segment as of June 30, 2024 and September 30, 2023: in thousands June 30, 2024 September 30, 2023 Assets West $ 1,220,127 $ 994,597 East 477,204 356,020 Southeast 391,874 320,430 Corporate and unallocated (a) 505,341 739,986 Total assets $ 2,594,546 $ 2,411,033 (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) | 9 Months Ended |
Jun. 30, 2024 state pillar 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 |
Number of strategic pillars | pillar | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | May 31, 2022 | |
Accounting Policies [Abstract] | |||
Authorized amount repurchase of common stock | $ 50,000 | ||
Remaining authorized repurchase amount | $ 28,900 | $ 28,900 | |
Stock Repurchased During Period, Shares | 455 | 455 | |
Share repurchases | $ 12,929 | $ 12,929 | |
Average price per share repurchased (in USD per share) | $ 28.41 | $ 28.41 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 595,682 | $ 572,544 | $ 1,524,040 | $ 1,561,380 | |
Customer deposits | 26,646 | 26,646 | $ 27,577 | ||
Contract with customer, liability, revenue recognized | 3,500 | 25,400 | |||
Homebuilding revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 589,643 | 570,535 | 1,509,198 | 1,556,626 | |
Land sales and other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 6,039 | $ 2,009 | $ 14,842 | $ 4,754 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental disclosure of non-cash activity: | ||||
Increase in operating lease right-of-use assets | $ 4,114 | $ 8,814 | ||
Increase in operating lease liabilities | 4,114 | 9,262 | ||
Supplemental disclosure of cash activity: | ||||
Interest payments | 60,715 | 58,405 | ||
Income tax payments | 10,321 | 1,450 | ||
Tax refunds received | 0 | 9,987 | ||
Reconciliation of cash, cash equivalents, and restricted cash: | ||||
Cash and cash equivalents | 73,212 | 276,125 | $ 345,590 | |
Restricted cash | 35,224 | 39,540 | 40,699 | |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 108,436 | $ 315,665 | $ 386,289 | $ 251,828 |
Owned Inventory - Schedule of I
Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Inventory Disclosure [Abstract] | ||||||
Homes under construction | $ 914,549 | $ 644,363 | ||||
Land under development | 1,002,720 | 870,740 | ||||
Land held for future development | 19,879 | 19,879 | ||||
Land held for sale | 14,724 | 18,579 | ||||
Capitalized interest | 126,562 | $ 123,214 | 112,580 | $ 114,409 | $ 113,886 | $ 109,088 |
Model homes | 93,490 | 90,062 | ||||
Total owned inventory | $ 2,171,924 | $ 1,756,203 |
Owned Inventory - Narrative (De
Owned Inventory - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 USD ($) home | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) home | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) home | |
Inventory Disclosure [Abstract] | |||||
Number of homes under construction | home | 2,783 | 2,783 | 2,163 | ||
Number of homes under construction, spec homes | home | 1,135 | 1,135 | 779 | ||
Total, spec homes | $ 353,300,000 | $ 353,300,000 | $ 218,000,000 | ||
Number of homes under construction, in-process spec homes | home | 899 | 899 | 645 | ||
In-process spec homes | $ 261,100,000 | $ 261,100,000 | $ 162,000,000 | ||
Number of homes under construction, finished spec homes | home | 236 | 236 | 134 | ||
Finished spec homes | $ 92,200,000 | $ 92,200,000 | $ 56,000,000 | ||
Threshold number of homes below a minimum threshold of profitability | home | 10 | ||||
Impairment of projects in process | 0 | $ 0 | $ 0 | $ 0 | |
Impairment charges on land held for sale | 0 | 0 | 0 | 0 | |
Abandonments charges | $ 200,000 | $ 315,000 | $ 200,000 | $ 616,000 |
Owned Inventory - Schedule of T
Owned Inventory - Schedule of Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Segment Reporting Information [Line Items] | ||
Projects in Progress | $ 2,137,321 | $ 1,717,745 |
Land Held for Future Development | 19,879 | 19,879 |
Land Held for Sale | 14,724 | 18,579 |
Total owned inventory | 2,171,924 | 1,756,203 |
Corporate and unallocated | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 205,406 | 180,300 |
Land Held for Future Development | 0 | 0 |
Land Held for Sale | 0 | 0 |
Total owned inventory | 205,406 | 180,300 |
West | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 1,124,780 | 914,908 |
Land Held for Future Development | 3,483 | 3,483 |
Land Held for Sale | 11,423 | 14,702 |
Total owned inventory | 1,139,686 | 933,093 |
East | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 437,586 | 325,395 |
Land Held for Future Development | 10,888 | 10,888 |
Land Held for Sale | 2,625 | 3,201 |
Total owned inventory | 451,099 | 339,484 |
Southeast | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in Progress | 369,549 | 297,142 |
Land Held for Future Development | 5,508 | 5,508 |
Land Held for Sale | 676 | 676 |
Total owned inventory | $ 375,733 | $ 303,326 |
Owned Inventory - Schedule of_2
Owned Inventory - Schedule of Inventory Impairments and Abandonment Charges, by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Real Estate Properties [Line Items] | ||||
Total abandonments charges | $ 200 | $ 315 | $ 200 | $ 616 |
Total impairment and abandonment charges | 200 | 315 | 200 | 616 |
West | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | 9 | 315 | 9 | 462 |
East | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | 91 | 0 | 91 | 154 |
Southeast | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | $ 100 | $ 0 | $ 100 | $ 0 |
Owned Inventory - Schedule of_3
Owned Inventory - Schedule of Interests in Lot Option Agreements (Details) - Unconsolidated Entities - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Real Estate Properties [Line Items] | ||
Deposits and non-refundable pre-acquisition costs incurred | $ 206,431 | $ 165,371 |
Remaining purchase price if lot option agreements are exercised | $ 1,201,852 | $ 949,447 |
Interest (Details)
Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Capitalized interest in inventory, beginning of period | $ 123,214 | $ 113,886 | $ 112,580 | $ 109,088 |
Interest incurred | 20,615 | 18,027 | 58,510 | 53,891 |
Capitalized interest amortized to home construction and land sales expenses | (17,267) | (17,504) | (44,528) | (48,570) |
Capitalized interest in inventory, end of period | $ 126,562 | $ 114,409 | $ 126,562 | $ 114,409 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) - USD ($) | Jun. 30, 2024 | Sep. 30, 2023 |
Debt Instrument [Line Items] | ||
Total outstanding borrowings of unconsolidated entities | $ 1,069,408,000 | $ 978,028,000 |
Unamortized debt issuance costs | (8,734,000) | (5,759,000) |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Total financial liabilities | 1,024,408,000 | 978,028,000 |
Senior Unsecured Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Senior Unsecured Revolving Credit Facility | 45,000,000 | 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings of unconsolidated entities | 948,521,000 | 903,691,000 |
Unamortized debt issuance costs | $ (8,734,000) | $ (5,759,000) |
Senior Notes | 6.750% | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 6.75% | 6.75% |
Total outstanding borrowings of unconsolidated entities | $ 0 | $ 202,195,000 |
Senior Notes | 5.875% | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 5.875% | 5.875% |
Total outstanding borrowings of unconsolidated entities | $ 357,255,000 | $ 357,255,000 |
Senior Notes | 7.250% | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 7.25% | 7.25% |
Total outstanding borrowings of unconsolidated entities | $ 350,000,000 | $ 350,000,000 |
Senior Notes | 7.500% | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 7.50% | |
Total outstanding borrowings of unconsolidated entities | $ 250,000,000 | 0 |
Junior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Total outstanding borrowings of unconsolidated entities | 75,887,000 | 74,337,000 |
Unamortized accretion | 24,886,000 | 26,436,000 |
Junior Subordinated Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Total financial liabilities | 75,887,000 | 74,337,000 |
Senior Notes | Carrying Amount | ||
Debt Instrument [Line Items] | ||
Total financial liabilities | $ 948,521,000 | $ 903,691,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 01, 2022 | Jun. 01, 2012 | Mar. 31, 2024 | Jan. 31, 2010 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Oct. 12, 2023 | Sep. 30, 2023 | Oct. 13, 2022 | |
Line of Credit Facility [Abstract] | |||||||||||
Loss on extinguishment of debt, net | $ 0 | $ 18,000 | $ 437,000 | $ 533,000 | |||||||
6.750% | Senior Notes | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Extinguishment of debt | $ 197,900,000 | 202,200,000 | |||||||||
Loss on extinguishment of debt, net | 400,000 | 400,000 | |||||||||
7.500% | Senior Notes | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Aggregate principal amount of debt | 250,000,000 | ||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principal amount of debt | $ 250,000,000 | ||||||||||
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 | 8.04% | 8.04% | |||||||||
Junior Subordinated Debt, Modified Terms | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Aggregate principal amount of debt | $ 75,000,000 | ||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principal amount of debt | $ 75,000,000 | ||||||||||
Variable rate floor | 4.25% | ||||||||||
Variable rate cap | 9.25% | ||||||||||
Redemption price percentage | 75% | ||||||||||
Annual increase of percentage of principal amount redeemable | 1.785% | ||||||||||
Junior Subordinated Debt, Original Terms | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Aggregate principal amount of debt | $ 25,800,000 | $ 25,800,000 | |||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principal amount of debt | 25,800,000 | $ 25,800,000 | |||||||||
Basis spread on variable rate | 2.71% | 2.45% | |||||||||
Senior Unsecured Revolving Credit Facility | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||||||
Credit facility, available increase in borrowing capacity | $ 100,000,000 | ||||||||||
Senior Unsecured Revolving Credit Facility | 45,000,000 | $ 45,000,000 | $ 0 | ||||||||
Letters of credit secured using cash collateral | 0 | 0 | |||||||||
Amount of available borrowings under the secured revolving credit facility | 255,000,000 | 255,000,000 | |||||||||
Senior Unsecured Revolving Credit Facility | Senior Notes | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Credit facility, maximum borrowing capacity | $ 300,000,000 | ||||||||||
Letter of Credit | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Letters of credit secured using cash collateral | $ 34,900,000 | $ 34,900,000 | $ 31,200,000 | ||||||||
Letter of Credit | Senior Notes | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Credit facility, maximum borrowing capacity | $ 100,000,000 |
Borrowings - Schedule of Debt I
Borrowings - Schedule of Debt Instrument Redemption (Details) - Senior Notes | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
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% | |
7.500% | ||
Debt Instrument [Line Items] | ||
Stated interest rate on debt instrument | 7.50% | |
Redemption percentage | 35% | |
Principal amount outstanding, percentage | 0.65 | |
7.500% | Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 107.50% | |
7.500% | Debt Instrument, Redemption, Period Two | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 100% | |
7.500% | Debt Instrument, Redemption, Period Three | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 103.75% | |
7.500% | Debt Instrument, Redemption, Period Four | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 101.875% | |
7.500% | Debt Instrument, Redemption, Period Five | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 100% |
Operating Leases - Schedule of
Operating Leases - Schedule of Lease Expense and Cash Payments & Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 1,108 | $ 963 | $ 3,207 | $ 2,920 |
Cash payments on lease liabilities | $ 1,399 | $ 1,027 | $ 3,393 | $ 3,271 |
Weighted-average remaining lease term | 6 years 8 months 12 days | 7 years 2 months 12 days | 6 years 8 months 12 days | 7 years 2 months 12 days |
Weighted-average discount rate | 6.26% | 5.95% | 6.26% | 5.95% |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Maturity Analysis of the Annual Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 1,100 | |
2025 | 4,572 | |
2026 | 4,117 | |
2027 | 3,215 | |
2028 | 2,982 | |
Thereafter | 9,989 | |
Total lease payments | 25,975 | |
Less: imputed interest | 5,415 | |
Total operating lease liabilities | $ 20,560 | $ 18,969 |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Loss Contingencies [Line Items] | ||
Standard product warranty length, minimum | 1 year | |
Standard product warranty length, maximum | 2 years | |
Limited product warranty length (up to) | 10 years | |
Accrued amounts for litigation and other contingent liabilities | $ 8,805 | $ 9,404 |
Performance Bonds | ||
Loss Contingencies [Line Items] | ||
Letters of credit secured using cash collateral | 34,900 | |
Outstanding performance bonds | $ 265,900 |
Contingencies - Schedule of War
Contingencies - Schedule of Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 12,129 | $ 13,073 | $ 13,046 | $ 13,926 |
Warranty provision | 2,387 | 3,164 | 6,499 | 7,102 |
Warranty expenditures | (2,681) | (2,971) | (7,710) | (7,762) |
Balance at end of period | $ 11,835 | $ 13,266 | $ 11,835 | $ 13,266 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Assets Measured on a Recurring and Non-Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 7,616 | $ 6,495 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 7,616 | 6,495 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Sep. 30, 2023 |
Carrying Amount | ||
Financial assets | ||
Total financial assets | $ 9,362 | $ 1,951 |
Financial liabilities | ||
Total financial liabilities | 1,024,408 | 978,028 |
Carrying Amount | Senior Notes | ||
Financial liabilities | ||
Total financial liabilities | 948,521 | 903,691 |
Carrying Amount | Junior Subordinated Notes | ||
Financial liabilities | ||
Total financial liabilities | 75,887 | 74,337 |
Fair Value | ||
Financial assets | ||
Total financial assets | 9,582 | 1,986 |
Financial liabilities | ||
Total financial liabilities | 1,033,794 | 932,865 |
Fair Value | Senior Notes | ||
Financial liabilities | ||
Total financial liabilities | 957,907 | 858,528 |
Fair Value | Junior Subordinated Notes | ||
Financial liabilities | ||
Total financial liabilities | $ 75,887 | $ 74,337 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Expense from income taxes | $ 2,452 | $ 6,241 | $ 10,372 | $ 15,488 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 2,474 | $ 1,989 | $ 5,536 | $ 5,247 |
Stock-based Compensation - Sc_2
Stock-based Compensation - Schedule of Stock Options Outstanding (Details) - Stock options | 9 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 13,575 |
Granted (shares) | shares | 50 |
Exercised (in shares) | shares | (2,110) |
Outstanding at end of period (in shares) | shares | 11,515 |
Exercisable at end of period (in shares) | shares | 11,365 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period, weighted average exercise price (in USD per share) | $ / shares | $ 9.61 |
Granted (in USD per share) | $ / shares | 27.73 |
Exercised (in USD per share) | $ / shares | 7.56 |
Outstanding at end of period, weighted average exercise price (in USD per share) | $ / shares | 10.07 |
Exercisable at end of period (in USD per share) | $ / shares | $ 9.83 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2024 | Sep. 30, 2023 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 0.1 | $ 0.1 |
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] | ||
Unrecognized compensation cost | $ 9.3 | $ 6.9 |
Weighted average period to recognize remaining cost | 1 year 9 months 18 days |
Stock-based Compensation - Sc_3
Stock-based Compensation - Schedule of Nonvested Stock Awards Activity (Details) - shares | 1 Months Ended | 9 Months Ended |
Nov. 30, 2023 | Jun. 30, 2024 | |
Shares | ||
Conversion basis (in shares) | 1 | |
Total Restricted Shares | ||
Shares | ||
Beginning of period (in shares) | 942,057 | |
Granted (in shares) | 381,227 | |
Vested (in shares) | (531,506) | |
Forfeited (in shares) | (25,452) | |
End of period (in shares) | 766,326 | |
Performance-Based Restricted Shares | ||
Shares | ||
Beginning of period (in shares) | 348,223 | |
Granted (in shares) | 183,396 | |
Vested (in shares) | (210,176) | |
Forfeited (in shares) | (791) | |
End of period (in shares) | 320,652 | |
Award vesting period | 3 years | |
Performance based restricted stock settled in cash payment (in shares) | 108,108 | |
Time-based restricted stock | ||
Shares | ||
Beginning of period (in shares) | 593,834 | |
Granted (in shares) | 197,831 | |
Vested (in shares) | (321,330) | |
Forfeited (in shares) | (24,661) | |
End of period (in shares) | 445,674 |
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 | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Income from continuing operations | $ 27,208 | $ 43,817 | $ 88,107 | $ 102,932 |
Income (loss) from discontinued operations, net of tax | 2 | 0 | 2 | (77) |
Net income | $ 27,210 | $ 43,817 | $ 88,109 | $ 102,855 |
Denominator: | ||||
Basic weighted-average shares (in shares) | 30,513 | 30,395 | 30,625 | 30,335 |
Dilutive effect of restricted stock awards (in shares) | 414 | 458 | 384 | 309 |
Dilutive effect of stock options (in shares) | 8 | 7 | 8 | 5 |
Dilutive weighted-average shares (in shares) | 30,935 | 30,860 | 31,017 | 30,649 |
Basic income per share: | ||||
Continuing operations (in USD per share) | $ 0.89 | $ 1.44 | $ 2.88 | $ 3.39 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | 0.89 | 1.44 | 2.88 | 3.39 |
Diluted income per share: | ||||
Continuing operations (in USD per share) | 0.88 | 1.42 | 2.84 | 3.36 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | 0 |
Total (in USD per share) | $ 0.88 | $ 1.42 | $ 2.84 | $ 3.36 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options (in shares) | 0 | 13 | 1 | 14 |
Time-based restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options (in shares) | 3 | 0 | 1 | 128 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Other Liabilities Disclosure [Abstract] | ||||||
Accrued compensations and benefits | $ 35,166 | $ 50,242 | ||||
Customer deposits | 26,646 | 27,577 | ||||
Accrued interest | 17,671 | 23,132 | ||||
Warranty reserves | 11,835 | $ 12,129 | 13,046 | $ 13,266 | $ 13,073 | $ 13,926 |
Litigation accruals | 8,805 | 9,404 | ||||
Income tax liabilities | 0 | 272 | ||||
Other | 37,268 | 33,288 | ||||
Total | $ 137,391 | $ 156,961 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 USD ($) state region | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) state region segment | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
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 | $ 595,682 | $ 572,544 | $ 1,524,040 | $ 1,561,380 | |
Operating income | 28,524 | 47,900 | 84,780 | 115,194 | |
Gain on sale of investments | 8,600 | 8,600 | |||
Depreciation and amortization | 3,892 | 2,907 | 9,698 | 8,440 | |
Capital expenditures | 16,691 | 14,122 | |||
Assets | 2,594,546 | 2,594,546 | $ 2,411,033 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 67,495 | 88,974 | 180,595 | 219,546 | |
Depreciation and amortization | 3,411 | 2,573 | 8,377 | 7,506 | |
Corporate and unallocated | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (38,971) | (41,074) | (95,815) | (104,352) | |
Depreciation and amortization | 481 | 334 | 1,321 | 934 | |
Capital expenditures | 4,974 | 4,034 | |||
Assets | 505,341 | 505,341 | 739,986 | ||
West | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 369,359 | 328,347 | 953,790 | 933,575 | |
West | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 45,582 | 55,629 | 119,951 | 138,499 | |
Depreciation and amortization | 2,520 | 1,750 | 6,283 | 5,294 | |
Capital expenditures | 9,132 | 6,840 | |||
Assets | 1,220,127 | 1,220,127 | 994,597 | ||
East | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 123,565 | 133,096 | 310,186 | 339,357 | |
East | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 9,158 | 16,415 | 27,796 | 41,921 | |
Depreciation and amortization | 494 | 402 | 1,109 | 1,063 | |
Capital expenditures | 1,829 | 1,975 | |||
Assets | 477,204 | 477,204 | 356,020 | ||
Southeast | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 102,758 | 111,101 | 260,064 | 288,448 | |
Southeast | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 12,755 | 16,930 | 32,848 | 39,126 | |
Depreciation and amortization | 397 | $ 421 | 985 | 1,149 | |
Capital expenditures | 756 | $ 1,273 | |||
Assets | $ 391,874 | $ 391,874 | $ 320,430 |