BZH - Earnings call transcript Q2 2024

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Operator

Good afternoon, and welcome to the Beazer Homes Earnings Conference Call for the second quarter ended March 31, 2024. Today's call is being recorded, and a replay will be available on the company's website later today.

In addition, PowerPoint slides intended to accompany this call are available in the Investor Relations section of the company's website at www.beazer.com.At this point, I will turn the call over to David Goldberg, Senior Vice President and Chief Financial Officer.

David Goldberg

Thank you. Good afternoon, and welcome to the Beazer Homes conference call discussing our results for the second quarter of fiscal 2024.Before we begin, you should be aware that during this call, we will be making forward-looking statements. projections. and SEC uncertainties actual filings, differ from known described other results involve materially our in which our statements unknown and risks, factors to Such may cause the Any date forward-looking only statement as the is made. speaks statement of to We or forward-looking result new revise a or events update information, do as any future whether otherwise. any undertake of not obligation statement,

details Executive the we're me quarter, results, New on multiyear the update Officer. this quarter from Chairman to review towards predict framework possible is simply we factors then review an our not per forward our on today, in and call emerge book expectations, capital from a our with environment some and spring and our strategy of land our progress spending our Merrill, such On time our new today factors.Joining allocation. Allan and to and on value highlights details considering Allan balance time, a sales, conclude operational home sheet Chief the second then and making provide it of discuss our for is goals. all our will employ I'll current second share

wrap-up will After call time by with prepared remarks, Allan. our we to over conclude will will now We take a the in the questions Allan. remaining.I turn

Allan Merrill

a excellent from delivered afternoon.Our you, quarter, Dave, profitability Thank and community highlighted results thank us on another successful team and solid you call this count. joining our for by sales growing

spend modestly EBITDA better-than-anticipated with expectations $XX us driven was X generated increase a and our new We year deliveries. was slightly full an capital with extension we the balance per were community just XX-month for per the the from and also our bringing a month. allocation provides nearly over at with structure. $XXX over Land total of the margins up management end million. XXX by prior revolver, up our finally, $XXX consideration the communities, our And our enabling million, capital broad In spending of careful over ended XXX note issue overheads.We more invested of the year range year orders a sales priorities. we of gross backlog detailed December and quarter million, strengthened terms, our enhanced ago. for future of and as senior active from This XXX pace XX% to sheet,

were In for both the culture efficiency addition, recognized our and energy of our we homes.

the annual production Fisher the our held also fundraiser in generated charity million.We which nearly multiyear We strength national housing House, of $X confident and our sector new partner, remain very home particular. for in

likely sales and strained direction due accurate quarter. be to view related that extent, articulated the framework mortgage fiscal some balance was those the and by this X of pace, defined affordability. proved rates, the gross our and on be is anchored of thesis decade an rates clarity future both on by the new demand.Last low and economy for growth by factors. Our effect past demographics I and quarter, contribute tight potential for homebuyers demand and lock-in the supply sources outlined home of rates year, our second over quite the in higher the the to mix We both scenarios wage characterized and to production unemployment, very over current attractive sales and mortgage margins Shortfalls to to supply closely to provides in

quarter, the goals, During rates XX a nearly larger though homes. as inside midst fell for points. about and these moved XX Ready longer-lasting the of If it's around, specs.As case, about with of we the homes spec Series able our have several to exceed This ultimately our a see basis quarter, rising home are communities. to sales to call transitioning slightly mortgage basis and Energy we base preference stronger we affordability. were straining likely moved have end are of rates in persist, We Zero continue new share second talked further points, in sales. for these such, rates Since the years, Ready will all we

starts that While next are end X/X be Ready with schedule committed ahead of XXX% will this we've of Series the standard to more being our starts substantially we last by than our of of year, quarter. built

and earlier homes more markets quickly Star Series, best better. selling out Series. placed very can that communities around Series pricing Ready delivering Series pleased and production we've despite we've This with allow older that accelerate will report importance having the our our to costs, & the higher Given close and teams these competitive somewhat than our to and encouraging homes. Ready of our this construction spring, our We margins been Plus incentives our the I on be to the efforts to to in prior the on focused building built on these our am Ready are prove them sooner sales and solely are homes, generating are we higher homes series.So simplify us the developing transition and

specs, offset series through makes of And EBITDA, in which more as result gross short-term tighter strongly explain the progress will pressure. a a margins be toward remain as will me shifts pricing fourth range and quarter.Margins let mix While With our to net overheads the for closings our but our the of the said, to this we our sales our to goals. year, there our within but spring.Finally, we our Series the move from will provide as chose is our mix this expect margin income quarter third of why you I prior homes. apparent closings that of be of outlook partially of so and wanted to full the rise efforts update on specifics, more multiyear Dave much down Ready expectations a in management anticipate impact to toward we acceleration sense, short-term older consequence, higher homes. share sequentially, financial of

goal active to 'XX. our than more fiscal XXX relates it by have to end communities the of As

the As I active mentioned, year. we XX% with nearly prior versus up quarter closed the XXX communities,

Ready year, fiscal By this ratio to our by land be to us our year prior finally, cap end a it end net we shape relates the up to and low expect below have end quarter. the a I'm reached with XX% We to end comfortably starts bit benchmark year-over-year more that of and XX% about the happens it fiscal is the year. of end XX%, the good balance sheet in of even of projecting positioning in to be perhaps our our this to 'XX, completed stated With timing the debt a we at versus seasonality by This second Ready to goal, relates of goal net in ratio to pleased the as the which reach expect calendar ratio of 'XX.As communities, very also quarter of year-end simply acceleration, a starts Zero XXX we 'XX.And of XX% 'XX Energy excellent our 'XX, early. growth representing for community a the to to Series under XX.X%, mid- in than with function be our by spend. fiscal counts are XXs, we goal having little the of XXX%

our see impact turn truly a As Dave. reduced performance.And to growth, the that leverage differentiated community we and will count get with call back closer excited I'm make that, to product to the to financial fiscal 'XX, I'll

David Goldberg

an Gross was for Adjusted and sales abandonments, revenue continue pace increase a prudently margin, excluding fiscal Thanks, prior XX% X.X $XXX,XXX. about our slightly the XX.X%. of year price orders year, Allan.For home translated quarter by rapidly our we community sales Interest million, community the above of a average compared was was to EBITDA impairments homebuilding X,XXX, per closed percentage $XX.X driven amortized community revenue XX.X% X,XXX generating homebuilding growing of amortized new This active per to as invest of guidance. were in X.X%. We $XXX of was second million. XXXX, with count. up homes SG&A count. a sales XX% to of revenue as total month, interest, average

Our economy included share sale pretax gain home gain communities. least X rate, per end about period EPS our remaining expense marketing of third $X.X this Builder contributed rates the higher per EBITDA.Our for supportive. an generally of a but XX.X%. with tax $X.X are sell community was or expect in $XX.X our XXX homes to tax our has per excluded to adjusted the month of effective million and In mortgage new million GAAP approximately an we communities. the been was at environment, income investment $X.XX $X.XX quarter company with where now in they technology contemplate or from staying million Homesite, This expectations Net share. digital from tax This for rate per specializing

share greater revenue this $XXX above these continue quarter community quarter of up on guidance, homes, some year. Revenue generate returns. margins significantly initial XX%, expect carefully expect a margin lead a in the revenue, an we growth on percentage be to little generate earnings than full growth. and the from Together, an from X,XXX year about more to modestly and Gross Based homes, the versus $XXX,XXX. the our to to positioning SG&A gross should this will Xs, diluted and per efficiency more XX% diluted of percentage the fourth while guidance, XX% arising fiscal effective through prior by flat tax in adjusted growth to likely about an driven ASP Ready $X.XX early million from least We of results reflecting while want year full continue Series acceleration rate gross year. should work still ASP be close to margin less as be our and benefit over total we sales to as good expect SG&A to leading overheads. XXXX manage credits our be to would year-over-year, to above million. a our Series. we amortized homes. $X.XX.Turning Ready EBITDA quarter as XXXX, for based We higher to per than to to deliver third we our revenue EBITDA give on percentage approximately specific double-digit rate compared X,XXX margin tax above as implying Interest effective results share and as a our as now low XX% it's of year business $XX around XX%. the at prior recovery adjusted I $XXX,XXX. annual significant of in earnings to in homebuilding than the tax of revenue be level, of XX% should should energy these a be remain X,XXX thoughts Achieving beyond.Speaking of count offer should Aat roughly we'll with returns

expect improve described. in margin We part of fiscal to 'XX, shift because Allan in gross mix the

as from a tax In in expense. of Ultimately, us and margin with every XXXX, deliver tax to over a Series XXXX. time, continue our and home fiscal next senior lead number an worth improve to increasing our should their our margins reduce fact, noting refinanced communities if should to revenue which no translate our notes In Ready on $X,XXX sheet. we trades with maturities another note buried with work in point build higher balance qualifies greater homes until about it March, higher leaving profitability weren't we due that returns improved costs. to our Ready would year.Turning new XXXX of It's also for credit, Energy Zero we to margin gross

quarter, ambitions. We with March our providing plenty million, investment XXXX. of of extended the nearly We in total with liquidity $XXX $XXX as million fiscal year spending ability we invest least for in to spending $XXX We of quarter growth the track the under driving Pivoting spent expiration of to firepower for our more to $XXX to our just remain also on opportunities year-to-date revolver arise. at our full land, million. ended million

options, through to expect spending, half focused efficiency drive total returns. ratio balance are to our we as remain on have Even More sheet increased we than a lots attractive we sustain. of controlled land

excess to cause year, but capital of results told Slide book to count, goals, Shareholders disconnect. see on Finally, clear. it XX equity, or get growth we even was foundation Last per In introduce we trajectory higher X means weighing to year. as fiscal result lead growth investments allocation our XXX sheet.Those have we investor This our through visibility to hit goals comprehensive thus our we've than generating multiyear our strength by the already sheet price, end growth These in capital. all against sustainable allowing control value will a just wanted our the made less growth share in shows shareholders, at to agree survey our conducted our led profitability fiscal objectives. creating are improved. additional XXXX the our terms, achieving the value value. and that ambitious with our chart book per goal a to survey recent progress return goals. is multiyear the we it the a and community a are to Today, of XXXX.Achieving robust to deleveraging need alternatives generated that share these has has dramatically root the far $XX hit repurchases. most characteristics and count us our by and we balance our the goals more doubled land that which balance need we of stockholders' share because we've shareholder The practical us risk The years. to having of In value to of created community of share approach book composition relates of remained we our value the growth and us the for years, essential growing as contemplate leveraged excellent in include they past below form into and what land

use our are valuation in capital. represent believe to relation additional share attractive we to book future current of and repurchases an Given likely value,

previously remaining program.With back the million share to call that, in repurchase our authorized Allan. $XX turn have I'll We over

Allan Merrill

excited pleased company lot we more for Dave.We're a results and significant our We from with Perhaps future quarter. again, generated the growth second positioned headed. pipeline. we're the the Thanks solid we're where and orders community we in in profitability with importantly, delivered count, our about growing

and our each differentiated have goals. and balance a We and offering. product of substantial represent to an growth resilient reaching flexible multiyear the sheet a clear in path They business, innovative

confident close, at create colleagues my are to from results.To Beazer. can we acknowledge We shareholder significant these value like I'd here

us We our for of to could value for for I proud each committed be have into shareholders turn the our partners, I'll all for take to to and a them.With truly team, represent Q&A. customers, are our call whom over the to other. creating exceptional not that, more operator

Operator

comes question Romero from Instructions] Sidoti Company. & from [Operator Our Julio first

Julio Romero

Plus centered quarter the behind color and Guys, of closeout of on confident maybe just homes the thanks you strategic is my for all the Series product are the the around kind And and it. that accelerated quarter. mix that question the & Star next only the rationale is, fourth I guess how the into about quarter? impact leaks if talk third financial scenario

Allan Merrill

thank Yes, I'll And question. jump you Julio. first, for in the

homes. and we've higher, was the the point. That I Ready Plus and Star, specs think Star run that margins out our we're going confident in of and of are the very homes to-be-built we're Series both and that the Plus than on to on sold sort

confidence fourth very the quarter into So good. is

of on rate there the X an X rates we've radically higher be this. going be it's there's on, but other experienced, or is different, next look, mix. going product If over overlay environment things may substantially the not the than of months fault any the to Now what

Julio Romero

the versus And Star margin greater helpful. out -- the Plus next to of between & for then accelerated specs quarter between kind the Very of impact any way parse homes? closeout

Allan Merrill

are look, anticipate the appreciate or Plus. It's also the -- we of thing not really tough it's a one. is, lot a thing question. because Star easy The an question. I It's the specs

the portion and specs of more of half, slightly through beyond intentionality the relates Star effect or Plus, they what related Plus is the this things because to part the our specs the of getting minor So significant is, most work. and quarter. specs to to Our or and in said, than on Star more our But a higher mix kind overlap I've Plus? were is sense impact, Star is get as because that's because were they X effect

Julio Romero

makes got very I That sense. And Yes. you. good. --

Operator

to Alex Rygiel go the from we'll Next, Riley. B. line of

Alexander Rygiel

new the activity of about gentleman. throughout the of quarter order the and Can cadence into April? quarter, you month Nice talk

Allan Merrill

great, don't was little yesterday. than the February. it choppy. April really say, closed significantly. January February -- a would honestly. month better itself and similar wasn't have to was We It It March better, I April final was I was built. numbers, March. didn't It was differentiate

very markets different I just see to we but Some I we a at better, March. don't a order it's numbers monthly our release saw fundamentally little conclusions size, markets some a in anything in but from because little weaker, draw April don't hard than think, month,

Alexander Rygiel

full very but I up on fiscal implied fourth your suspect a the one time, suggests step can your at best closings the of you in backlog visibility quarter, this year comment And you've if that got maybe in or in guidance maybe strong record. that.

David Goldberg

specs real guide it's universe pretty feel and Alex, do work year increasing But in we're still the the guidance units full there's backlog feel the Look, Dave. out fourth doing in Yes. production did are have that can the We see the the work. for of you're we we we that quarter, Q, the have. frankly, number And I comfortable and would under you we the under comfortable comment given to right, with our between construction. and production quarter.

production I are we but given doing comfortable your universe. backlog the think the real So size of and the the assumptions math feel correct right, you're is and

Alexander Rygiel

helpful. Very

Allan Merrill

and that. of convention function fourth times to are dramatically higher last of couple last know of cycle the just different percentage the what backlog It's quarter at fact not will conversion close do And but a perfect, that in bit industry frame XX a fourth it's be let they It's backlog the and ratio what look on in of but much quarter. at than a that's also were add over me years, an conversion of I one other June will couple years. backlog of the a that

to won't we kinds back So of had the backlog that be we pre-COVID. conversion

When pre- got, it. post-COVID step and sort a universe context, So about put the yes, of feel it's good the you big we've it in very we up. with production that

Operator

Zelman Alan the of Next, & from to go Ratner we'll line Associates.

Alan Ratner

primary into more thanks if you detail. I -- a and and the in in kind series. Ready floor drastically here. not all and I'm past, of they're of little contribute the Series the anything the was sure quarter, margin just bit differences or apologize for between kind what detail I that that if hoping Allan, plans older but exactly you've this you're go given first of Nice to are detail citing lift that different on could terms would else

Allan Merrill

And are this So in question, was fact, to number of have fact, Alan, hoping and really admit, in I it. there a for anticipating things. I

an people, that of the population third-party we on I'm unconditioned benefits lot attic with thing So The really is losing mathematics gaining ventilator.The running ACH. are a a appendix community air of is a science HERS has talk in importantly, what's I'm even has per the or know on bunch the these to our notice some there and consumer typically season that as it's which also saying, but a doesn't way where a walk it the depending more problem. we way heat ducts And X wrapped ducts testing different. is it's people, different. they're into notice large The is what's recovery spaces, a hour.Now like, or homes that all home homeowner immediately would put insulated to gosh, both of sense called walls. a different. shopping then of in a energy portion new to make that or makes shopping I'm of conditioned ERV an validated heat maybe slide kind They'd an x called is The can envelope X HERS I'm I lot relative buyer the building that It is features score different. in the of exchanges a

bragging them. They validation, HERS and explain the people okay, they pulling And to the where sounds us, that's about a can't well, answers clearly metrics the that the then to into we good, building unsee of they value But tell our go is of are go then, your sort to if totally to but XXs seen. low I and things those talks question. scores that are opportunity see is I've a will that, proof. the get when big science they've know And makes for if don't the XXs that I and testing job, we and frankly, them.So see so asked this people represents our that different. third-party So green, say, everybody they for If go a where are going into what and just somebody's understands community, XXs. homes the home. some buyer And you, to my another are. you are They're all it. see people that do characteristics and highlighted it the I lot deeper, want sees that this a features exhibit in very about better can

Alan Ratner

you. Got

of more what So home. on all better the mean, though, margin, a almost Or that you would of almost say these describing, a given is from get more you're price of sounds it you premium, in I savings? features cost the point,

savings a a So it is versus standpoint? of price more cost

Allan Merrill

Yes. our definitely the issue homes higher a series to are the It's than prior price build homes. cost these to build because cost

Alan Ratner

it. Got

Allan Merrill

then little what's Ready with community homes. charging days downhill mean rolling They And a seeing out get ball know don't this we thing duct are X the like, community and have in community, of 'XX, Zero us is the the every -- but our cycle was talked didn't bit They about building our contractors premium. first. what whole HVAC it Dave this with and to we X or terms install starting Energy couple early, and started of home. that communities. obviously that at in division momentum, And They're it for it's time, was really And example, every a the were X then I the seen install it, trades of advanced with benefits know are is. they able a to with happen take

used don't to We products. it. We do really these haven't don't it. We want understand

they have at say, this to to pay going going warranty be home and You're from to is it us wow, actually look it.Now get extra do much to better to a standpoint. and It Yes, build. that really we us I please. don't clawing for surface haven't some of scratched was faster we'll back the to again, do think And -- those savings.

So are the efforts date, these with I fact today, else. realizing buy to personally markets in have And done the surface build. a home cannot to is they travel. diminish it anywhere I way that want think when this really this homes don't but more I don't truly And on to in connecting still expensive buyers is any we've our scratched I

look go is. $X HERS score, million at let's a Let's their home. ACH score see what And what their

we're side to to that the opportunity and of comparator or side like as is. better why a that. opportunity that's think buying kind better home the create an And revenue got the cost Let's building. explaining get is ask to questions We've I an much as at

Alan Ratner

for slide the prepared and surprised not I'm Great. you that Allan, detail, us. Thank had you for all

I question, Second if could.

the in not to that's against sure high the kind your and slide I'm that which X in kind quarter slide, we're and the pushing that Xs, be seeing first effect of your up. higher. You happened move-in to back And today. comments, in I you scenario the mentioned said, like and everybody X the expected in be with sound downside it pace guess, sluggish expect It ago. the rates scenarios, that you up deck on what of had really an is months pull But environment rates. sales deck would that from environment, incentives doesn't you from that and you're I also to

buy higher? higher or if So kind more to largely just to affordability the in incentivizing the rate to seeing through Has it? you the you been of do equation consumer curious could I'm the improve other what given rates. agnostic things you are maybe move talk Are down response to just

Allan Merrill

in We haven't incentives. seen incentives, shift a financial dramatic particularly

analyzing a have [ temporaries ] We buck that in I And on rates or moved it. up. a towards [ and overstates it's saying, have higher some you migration buyers seen X-X a are Obviously, that environment, move good the well, bang permanents We've a think more and pretty get as a but with use I a seen X-X-X for ]. for going pay than few rate lower pre-buy refinance.I'm always that, have so buydowns, rate. point get an the am to I at temp, course, buyers pains opportunity of strongly I a do down at will and know a feel a full when to out, it, about years, unfortunate, why don't I to temporary they qualify rate

clear time, about previous isn't interest more little seeing we of in us us not to interest thing frankly, going be specs. the see and a think, and I this second is this always I problem. little those long So different I are kind like some been we think bit quarter, And a in temporary very a housing creating it a of period. who have around buydowns.And But to want industry the that the a and in heightened a help is, third to we in saw, the quarter saw it's other going the it we're

I thing quarter, go & to really that with Star think happens. the in Plus And spec, series that's our remaining away I'd given that okay the I'm that. other or like third

Operator

Instructions] Research [Operator Housing Alex next from from comes Center. Our Barron question

Alex Barrón

some you bit a was valuation discount up take buy what end, to the given would I share step heard and wanted given mentioned I for at on to to buybacks. guys to buy I value? but little it it the start focus you just curious Yes. at -- the in book big this point

David Goldberg

we the make pretty prepared Alex, to try clear remarks. Well, it in

a I that time. and today, perspective. at where over clearly, where looks And framework too It looks authorization and is visibility won't a see have we on have risk attractive get our outstanding. the basis. consistent it beyond a tell currently from at that's much but of capital $XX looking real-time we on a to and reward. going use all like currently we're million basis evaluating just the use. a go-forward We trading, given it the And framework have a from would I more risk be that. book But return we versus where it's on not a It's detailed is that where you, stock time

Allan Merrill

I'll go little a further.

in current thing price, think any be our say, buybacks Alex, executing is of share right at will What buyback. this window opens I that do participating context it's the to against share not some going think in we're we share do. the price, when the just I to will the quarter. we market in be do, But hey,

Alex Barrón

Yes. price, at but at a Maybe to yet, but dividends. almost not trading about hear no-brainer. What have other started consistent I'm similar But you're it's dividends? seems it discount like saying on good thoughts to that. not No, when quite builders launch to more any book, XX% anyway, a there

sort thoughts around of Just that.

David Goldberg

I conversation. feels premature would it tell you, Alex, a have to little that

so. what given market. said, the of considerations in pretty to think to make And sense where we Allan the try clear of are, purchase it program, seems I the lot we frankly, kind make as a

Allan Merrill

want we execute and to our multiyear Yes, goals.

David Goldberg

Yes.

Allan Merrill

grow the we -- got are we've to community Like going count.

and little along. But we terms accommodate this a net to need to debt that said beyond going And range get below of and share returning we have shareholders, these price we in do We to further cap would. we think buybacks. to we of I can -- net when XX% that capital go to are think in

Alex Barrón

faster you're little that a you're Okay. on replacing The selling are if and Great. experiencing because were Southeast demand going And could just communities out And orders on down is I what's there? XX%. region them? the Or than mainly strong more ask orders.

Allan Merrill

do narrative we lot big, of a little we Southeast things because the from Southeast. that to so think should a large counts. spec divisions that Yes. caught between around happens And is out occasionally anyone of community A don't have not get don't very bit. us program, I run gap particular the a one our quarter big the infer Southeast we'll in phases can a

Our Southeast are markets pretty good.

of one community frankly, growing And them. in count be them. every to happy are we're in We

Operator

queue Wedbush. Instructions] question Currently, last Jay our [Operator is from McCanless in from

James McCanless

cash the really that also inventory, orders was. in I in with and out homes Plus this of think get move the right West Is the the about says pretty there? to this? some homes is relative So the environment. significantly ask cynic very to to to Or down is flow some the to there some Southeast these of both where me newer East competitive move way some a The Ready, wanted push generate a on

Allan Merrill

homes really the want there. We get out to newer

in point. focal introduce communities isn't in with our trying we've to have familiar to or I'd able We're accelerate that. to to community. are We are And generate going we Ready. cash that been get be all want in are got Ready, maximize out like sheet. the value You We've are want some not every the sticks got we Plus We've a really converted new where balance build to transitioned communities some the definitely some that & where There Series of really Star to been communities them. Ready. air. of in to only the communities

do, we sell -- they the with clarity, and that the those But better we built is They're specs. and communities sooner around of seeding, are we some perform really as simplicity better. certainty the Ready focal have homes. we always So point

be. be, the will I shareholders be our our think will buyers happier we'll and

David Goldberg

Jay, really to nothing was in comp average. there's pace bit East, from line get sales much tell but It a tough was company in I the the there. the little for last overall you a very with you into would year,

James McCanless

for gross going in Where I are half I this compare for to the margin in the to Ready to the think I Ready slide bar now, ask, good be these looks the going gross set a first mostly that margins you're to homes deck is gross easy of it's bit of had you to -- the they mean, or half in fiscal better year? homes to all Okay. the the when quarter. looking it than. margins But XX when second say be where right okay, the that line say Slide guys the looking versus improved said third going adjusted And to where that's to where you XX% half margins where like probably for fourth you you then higher pretty wanted numbers quarter, of pretty a in little something at transition maybe first the you 'XX. gave I'm I'm were

Allan Merrill

just quick the correction Jay, were script on pretty in for a Well, the question. The words clear.

If pretty you in gross margin look the guide, fourth it significant at quarter. pickup the a full year suggests

that. be around said We number better than So it's it's XX%. not a to going

David Goldberg

lift QX. about get year. going we way only to XX% the good think I with full you're is guided And XX% for The in QX at a there to

Allan Merrill

Exactly.

James McCanless

homes Okay. is, you Is that? under as issues we should new it how does compared were be build question in What from these out? the margins slightly But to worked going the front then what doing half? to get equal, less you the expect still the

Allan Merrill

think on I in guess margins kind are that's I of 'XX. that I working than these keep and because will higher Well, think can our think that in be we say down. And getting I because that margins command, 'XX would we build is costs homes value

hard to which comparison we've it's periods one is above level, of is but what 'XX make to which be said period will 'XX. at homes, period, So another a higher in a

James McCanless

on like the one I up the talk quarter and from had, it that? specs And to just sequentially Okay. your Could looks quarter. were specs, last driving what's second process you about first then

Allan Merrill

Community count growth.

David Goldberg

community basis. incremental we basis, specs. a the count community that's it's per look just community a if slide, show per and we have and not actually you driving Jay, on It's on Yes. dissimilar really some coming growth at online, our that

James McCanless

did in the percentage quarter? the actually it And more. then was And the incentive What prior have I one was year? what in Okay.

David Goldberg

front One have we pretty second you. really what's you, Jay. me didn't for quarter-by-quarter, follow tell to second, see week-by-week can I it the look minimal number, grab exact It's you right I a significantly me and quarter. happening can front the it with it second change. quarter. too on of in a up number it at don't I Let of moved the now. basis -- pretty closely in Jay, but been hasn't move in much the

Operator

further am questions. And I showing no

David Goldberg

to have as the we We move next a dialing quarter Okay. I in quarter everybody call. [indiscernible] toward Thanks look second for forward in our want good year. the end to thank so and of much, night. to

Operator

in all today's for conference. you participating Thank

of You may enjoy and rest disconnect your day. your lines, the

Beazer Homes USA (BZH) 1 May 242024 Q2 Earnings call transcript