Beazer Racks Up Record Quarter

ATLANTA-Beazer Homes USA Inc. is as hot as the weather, posting $112.7 million in record net income for its fiscal third quarter that ended June 30. The performance was 88.9% over the comparable 2004 period. Diluted earnings per share of $2.50 also set a new mark for the locally based company, showing an increase of 76.1% versus $1.42 a year ago.

"The fundamentals of our business continue to be robust and we are delivering on our commitment of achieving profitable growth by leveraging our size, scale and geographic reach through our national brand," Beazer president and CEO Ian J. McCarthy says in a prepared statement.

McCarthy expects the company to continue its record performance in its new fiscal year that begins Oct. 1. "We are raising our outlook for diluted earnings per share from a range of $7 to $7.25 to a range of $8 to $8.25 in fiscal 2005 before the goodwill impairment charge recorded in the second quarter, but taking into account the charges associated with the class action settlement for Trinity Homes recorded in the first half of the year," McCarthy says.

He adds, "Our performance for the nine months ended June 30, combined with record backlog and expectations of continued strength in the housing market give us confidence in our future growth opportunities."

Total revenue for the third quarter was $1.29 million, up 28.1%. Home closings totaled 4,631, up 14%. Gross profit from home construction totaled $312.9 million, up 60.4%. Operating income of $178.6 million was up 85.6%. Operating margin was 13.8%, up 430 basis points.

McCarthy also cited new orders of 5,202 homes, up 6.9%. The homes had a sales value of $1.49 billion, up 18% over the same period a year ago. The company's all-time record backlog at June 30 stood at 10,635 homes, up 14.6%. The homes were valued at $3.12 billion, up 35.4%. Beazer is building in 521 active communities, up 2.8% from last year at this time.