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| 8-K - FORM 8-K - BEAZER HOMES USA INC | g27084e8vk.htm |
EXHIBIT 99.1
Beazer Homes Reports Second Quarter Fiscal 2011 Results
ATLANTA, May 3, 2011 — Beazer Homes USA, Inc. (the “Company”) (NYSE: BZH)
(www.beazer.com) today announced its financial results for the fiscal quarter ended March 31, 2011.
While year-over-year comparisons were adversely impacted by what the Company believes was an
unusual seasonal pattern during 2010 as consumers sought to take advantage of the First Time
Homebuyers’ Tax Credit, the Company saw improved order levels over the second quarter of fiscal
2009, which is the most recent comparable period that was not impacted by the tax credit.
Following are summary results for the quarter:
Quarter Ended March 31, 2011
| • | Total new orders from continuing operations were: 1,194 homes, a 26.7% decrease from the prior year, but a 121.1% increase from the first quarter and a 9.0% increase from the second quarter of fiscal 2009. | |
| • | Total home closings from continuing operations were: 573 homes, a 31.1% decrease from the prior year, but an 8.7% increase from the first quarter. | |
| • | Revenue from continuing operations for the quarter was $127.5 million, compared to $192.5 million in the prior year and $110.3 million in the prior quarter. | |
| • | Including impairments and abandonments, homebuilding gross profit margin from continuing operations was -2.1%, compared to 12.2% in the prior year and 10.1% in the prior quarter. |
| • | Excluding impairments and abandonments, homebuilding gross profit margin from continuing operations was 12.3%, compared to 17.4% in the prior year, which had a higher revenue base and a significant non-recurring warranty recovery, and 10.7% in the prior quarter. | ||
| • | Excluding interest included in cost of sales as well as impairments and abandonments, homebuilding gross profit margin from continuing operations was 19.0%, compared to 22.6% in the prior year and 17.0% in the prior quarter. |
| • | The Company recorded a loss from continuing operations of $54.9 million, or a loss of $0.74 per share, including $17.9 million of non-cash pre-tax charges for inventory impairments. For the prior year, the Company reported net income from continuing operations of $6.2 million, or $0.10 per diluted share, which included non-cash pre-tax charges of $10.0 million for inventory impairments and $8.8 million for the impairment of our investment in an unconsolidated joint venture, offset by a $52.9 million pre-tax gain related to the partial exchange of our junior subordinated notes. |
| • | Net loss, including $0.3 million of net income from discontinued operations, was $54.6 million for the quarter. For the prior year, the net income of $5.3 million included a net loss from discontinued operations of $0.9 million. |
As of March 31, 2011
| • | Total cash and cash equivalents: $453.2 million, including restricted cash of $71.0 million. The restricted cash included $38.4 million primarily related to the Company’s outstanding Letters of Credit, and $32.6 million related to the Company’s Cash Secured Term Loan. |
| • | Stockholders’ equity: $295.9 million not including $57.5 million of mandatory convertible subordinated |
| notes, which automatically convert to common stock at maturity in 2013. |
| • | Realizable net deferred tax assets after our Section 382 limitation are estimated between $308 million and $430 million. |
| • | Total Backlog: 1,416 homes with a sales value of $339.6 million compared to 1,781 homes with a sales value of $394.5 million as of March 31, 2010. |
“As expected, year-over-year comparisons were unfavorably impacted this quarter by the First
Time Homebuyers’ Tax Credit which pulled forward sales volumes into the second quarter of 2010,”
said Ian McCarthy, President and Chief Executive Officer of Beazer Homes. “However, we did see
seasonal improvement with orders and gross margins up over the first quarter of fiscal 2011. We
are hopeful that the latest improvements in employment will help lift consumer confidence in the
coming quarters, which is necessary for any significant recovery in housing to occur.”
“Throughout the downturn in the market, we have remained and will continue to be disciplined
in our operations,” said McCarthy. “We’ve recently implemented significant overhead cost saving
measures as we continue to enhance our operational execution with the goal of accelerating our
return to profitability.”
Results for the Quarter Ended March 31, 2011
Net new home orders decreased 26.7% compared to the same period of the prior year due to the
absence of incentives similar to the First Time Homebuyers’ Tax Credit that pulled sales into the
first half of fiscal 2010. The reduction in net new home orders from continuing operations was
driven by a 24.8% decrease in gross new orders and an increase in the cancellation rate to 19.9% as
compared to 17.8% a year ago. Net new home orders increased 121.1% over the first quarter of
fiscal 2011 and 9.0% over the second quarter of fiscal 2009, both periods which did not include the
impact of any special government incentive such as the tax credit.
The number of homes closed decreased 31.1% and homebuilding revenues from continuing operations
decreased 35.7% as compared to the second quarter of fiscal 2010. The reduction in closings
compared to the prior year resulted from a lower backlog of homes at the beginning of the quarter,
793 homes at December 31, 2010 compared to 946 homes at December 31, 2009, as well as the reduction
in new orders during the quarter.
The Company’s homebuilding gross profit margin, excluding impairments and abandonments, was 12.3%
in the quarter, down year over year from 17.4% during the second quarter of fiscal 2010, but up
sequentially over the first quarter of fiscal 2011 when homebuilding gross profit margins were
10.7%. The reduction in homebuilding gross profit margins from fiscal 2010 was primarily
attributable to the impact of reduced revenues on the Company’s fixed indirect construction costs
and interest expense as well as by a non-recurring warranty recovery of $4.4 million in the prior
year. Excluding interest included in cost of sales, the Company’s homebuilding gross profit margin
was 19.0% in the second quarter, compared to 22.6% in the prior year and 17.0% in the prior
quarter.
The Company’s ASP increased to $215,700 for the quarter ended March 31, 2011 from $208,700 in the
prior quarter. The ASP for the second quarter of 2010 was $230,800. These fluctuations in ASP were
primarily driven by differences in the mix of homes closed and the opening of new communities with
slightly lower average sales prices.
The Company recorded non-cash pre-tax charges for inventory impairments and lot option abandonments
of $17.9 million for the quarter compared to similar charges of $10.0 million in the prior year.
The impairments
were primarily related to further deterioration in the Las Vegas, Nevada market,
characterized by further reductions in new home prices and higher levels of foreclosure inventory.
During the quarter, we also recorded a $4.0 million charge in connection with our unconsolidated
joint venture in Las Vegas. This charge is recorded in selling, general and administrative
expenses.
The Company controlled 30,918 lots at March 31, 2011 (80% owned and 20% controlled under options)
an
increase of 6.6% from the level at September 30, 2010. During the quarter the Company spent $61.1
million on land and land development, compared to $43.3 million in the prior year and $62.6 million
in the prior quarter. Year-to-date, our spending on land and land development has totaled $123.7
million, compared to $73.7 million in the comparable period last year.
As previously disclosed in a Form 8-K dated March 3, 2011, the Company’s Chief Executive Officer
reached a resolution with the Securities and Exchange Commission of its claim under Section 304 of
the Sarbanes-Oxley Act related to our restatement of the Company’s fiscal 2002-2006 financial
statements and the first two quarters of 2007. The SEC did not allege that Mr. McCarthy engaged in
any misconduct or that he otherwise violated the federal securities laws. Under the terms of the
settlement, the Company will receive approximately $6.5 million in cash plus certain vested and
unvested shares of Beazer stock from Mr. McCarthy. During the quarter ended March 31, 2011, the
Company recognized a benefit of approximately $5.7 million related to the settlement, $6.6 million
was reflected in other expense, net offset by additional stock compensation amortization of
$943,000 which has been recorded in selling, general and administrative expenses.
Cost Alignment Efforts
Throughout the homebuilding recession the Company has remained disciplined in its approach to the
business, reducing direct construction costs and overhead expenses and controlling its land
acquisition and development spending. Consistent with these practices, subsequent to the end of
the second quarter of fiscal 2011, the Company identified ways to further streamline its operations
and reduce its overhead and administrative expenses. These efforts resulted in the elimination of
approximately 130 full time positions. The cost reductions are expected to save the Company in
excess of $20 million annually and are expected to result in charges of approximately $3 million
related to severance and lease abandonment in the Company’s third quarter ending June 30, 2011.
Pre-Owned Homes Division
In recognition of a market opportunity presented by difficult conditions in certain of the
Company’s markets, during the quarter ended March 31, 2011, the Company launched its Pre-Owned
Homes Division beginning in the Phoenix market. This division is charged with acquiring, improving
and renting out recently built, previously owned homes within select communities in markets in
which the Company currently operates. By augmenting the sale of newly constructed homes with rental
options of previously owned homes, Beazer expects to appeal to a broader range of consumers.
Because the primary source of Pre-Owned Homes will be distressed sales, typically foreclosures or
short sales, Beazer anticipates acquiring homes at a discount to their replacement cost. The new
Division leverages Beazer’s strengths as a homebuilder with knowledge of its markets, and offers an
attractive investment proposition for a portion of the Company’s cash reserve. Local third party
property managers will handle the day-to-day operations and the marketing of the rentals.
Conference Call
The Company will hold a conference call on May 3, 2011, at 10:00 am EDT to discuss these results.
Interested parties may listen to the conference call and view the Company’s slide presentation over
the internet by visiting the “Investor Relations” section of the Company’s website at
www.beazer.com. In
addition, the conference call will be available by telephone at 877-601-3546
(for international callers, dial 212-547-0388). To be admitted to the call, verbally supply the
pass code “BZH”. A replay of the conference call will be available, until 10:00 PM ET on May 10,
2011, at 800-284-7031 (for international callers, dial 203-369-3222) with pass code “3740.”
Beazer Homes USA Inc., headquartered in Atlanta, Georgia, is one of the ten largest single-family
homebuilders in the United States. The Company’s industry-leading eSMART high performance homes
are designed to lower the total cost of home ownership while reducing energy and water consumption.
With award-winning floor-plans, the Company offers homes that incorporate exceptional value and
quality to consumers in 16 states, including Arizona, California, Delaware, Florida, Georgia,
Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina,
Tennessee, Texas, and Virginia. Beazer Homes is listed on the New York Stock Exchange and trades
under the ticker symbol “BZH.”
Forward Looking Statements
This presentation contains forward-looking statements. These forward-looking statements
represent our expectations or beliefs concerning future events, and it is possible that the results
described in this press release will not be achieved. These forward-looking statements are subject
to risks, uncertainties and other factors, many of which are outside of our control, that could
cause actual results to differ materially from the results discussed in the forward-looking
statements, including, among other things, (i) the final outcome of various putative class action
lawsuits, multi-party suits and similar proceedings as well as the results of any other litigation
or government proceedings and fulfillment of the obligations in the Deferred Prosecution Agreement
and consent orders with governmental authorities and other settlement agreements; (ii) additional
asset impairment charges or writedowns; (iii) economic changes nationally or in local markets,
including changes in consumer confidence, declines in employment levels, volatility of mortgage
interest rates and inflation; (iv) the effect of changes in lending guidelines and regulations and
the uncertain availability of mortgage financing; (v) a slower economic rebound than anticipated,
coupled with persistently high unemployment and additional foreclosures; (vi) continued or
increased downturn in the homebuilding industry; (vii) estimates related to homes to be delivered
in the future (backlog) are imprecise as they are subject to various cancellation risks which
cannot be fully controlled, (viii) our cost of and ability to access capital and otherwise meet our
ongoing liquidity needs including the impact of any downgrades of our credit ratings or reductions
in our tangible net worth or liquidity levels; (ix) potential inability to comply with covenants in
our debt agreements or satisfy such obligations through repayment or refinancing; (x) increased
competition or delays in reacting to changing consumer preference in home design; (xi) shortages of
or increased prices for labor, land or raw materials used in housing production; (xii) factors
affecting margins such as decreased land values underlying lot option agreements, increased land
development costs on communities under development or delays or difficulties in implementing
initiatives to reduce production and overhead cost structure; (xiii) the performance of our joint
ventures and our joint venture partners; (xiv) the impact of construction defect and home warranty
claims including those related to possible installation of drywall imported from China; (xv) the
cost and availability of insurance and surety bonds; (xvi) delays in land development or home
construction resulting from adverse weather conditions; (xvii) potential delays or increased costs
in obtaining necessary permits and possible penalties for failure to comply with laws, regulations
and governmental policies; (xviii) potential exposure related to additional repurchase claims on
mortgages and loans originated by Beazer Mortgage Corp.; (xix) estimates related to the potential
recoverability of our deferred tax assets; (xx) effects of changes in accounting policies,
standards, guidelines or principles; or (xxi) terrorist acts, acts of war and other factors over
which the Company has little or no control.
Any forward-looking statement speaks only as of the date on which such statement is made, and,
except as
required by law, we do not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information, future events or otherwise. New
factors emerge from time to time and it is not possible for management to predict all such factors.
CONTACT: Beazer Homes USA, Inc.
Carey Phelps
Director, Investor Relations & Corporate Communications
770-829-3700
investor.relations@beazer.com
Carey Phelps
Director, Investor Relations & Corporate Communications
770-829-3700
investor.relations@beazer.com
-Tables Follow-
BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Total revenue |
$ | 127,503 | $ | 192,455 | $ | 237,802 | $ | 405,528 | ||||||||
Home construction and land sales expenses |
110,891 | 157,591 | 209,116 | 343,735 | ||||||||||||
Inventory impairments and option contract abandonments |
17,853 | 9,986 | 18,539 | 18,536 | ||||||||||||
Gross (loss) profit |
(1,241 | ) | 24,878 | 10,147 | 43,257 | |||||||||||
Selling, general and administrative expenses |
42,606 | 43,875 | 80,404 | 88,741 | ||||||||||||
Depreciation and amortization |
2,075 | 2,681 | 3,988 | 5,957 | ||||||||||||
Operating loss |
(45,922 | ) | (21,678 | ) | (74,245 | ) | (51,441 | ) | ||||||||
Equity in income (loss) of unconsolidated joint ventures |
71 | (8,779 | ) | 309 | (8,809 | ) | ||||||||||
(Loss) gain on extinguishment of debt |
(102 | ) | 52,946 | (3,004 | ) | 52,946 | ||||||||||
Other expense, net |
(11,710 | ) | (18,033 | ) | (29,776 | ) | (37,559 | ) | ||||||||
Loss from continuing operations before income taxes |
(57,663 | ) | 4,456 | (106,716 | ) | (44,863 | ) | |||||||||
Benefit from income taxes |
(2,793 | ) | (1,699 | ) | (3,386 | ) | (95,525 | ) | ||||||||
(Loss) income from continuing operations |
(54,870 | ) | 6,155 | (103,330 | ) | 50,662 | ||||||||||
Income (loss) from discontinued operations, net of tax |
294 | (857 | ) | (54 | ) | 2,635 | ||||||||||
Net (loss) income |
$ | (54,576 | ) | $ | 5,298 | $ | (103,384 | ) | $ | 53,297 | ||||||
Weighted average number of shares: |
||||||||||||||||
Basic |
73,930 | 58,314 | 73,904 | 48,463 | ||||||||||||
Diluted |
73,930 | 69,147 | 73,904 | 56,933 | ||||||||||||
(Loss) earnings per share: |
||||||||||||||||
Basic (loss) earnings per share from continuing operations |
$ | (0.74 | ) | $ | 0.11 | $ | (1.40 | ) | $ | 1.05 | ||||||
Basic earnings (loss) per share from discontinued operations |
$ | — | $ | (0.02 | ) | $ | — | $ | 0.05 | |||||||
Basic (loss) earnings per share |
$ | (0.74 | ) | $ | 0.09 | $ | (1.40 | ) | $ | 1.10 | ||||||
Diluted (loss) earnings per share from continuing operations |
$ | (0.74 | ) | $ | 0.10 | $ | (1.40 | ) | $ | 0.94 | ||||||
Diluted earnings (loss) per share from discontinued operations |
$ | — | $ | (0.01 | ) | $ | — | $ | 0.05 | |||||||
Diluted (loss) earnings per share |
$ | (0.74 | ) | $ | 0.09 | $ | (1.40 | ) | $ | 0.99 | ||||||
| Interest Data: | Three Months Ended | Six Months Ended | ||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Capitalized interest in inventory, beginning of period |
$ | 43,433 | $ | 38,970 | $ | 36,884 | $ | 38,338 | ||||||||
Interest incurred |
32,937 | 32,236 | 65,303 | 65,416 | ||||||||||||
Capitalized interest impaired |
(1,409 | ) | (464 | ) | (1,409 | ) | (1,096 | ) | ||||||||
Interest expense not qualified for capitalization and included as other expense |
(19,058 | ) | (19,565 | ) | (37,981 | ) | (40,097 | ) | ||||||||
Capitalized interest amortized to house construction and land sales expenses |
(8,279 | ) | (10,070 | ) | (15,173 | ) | (21,454 | ) | ||||||||
Capitalized interest in inventory, end of period |
$ | 47,624 | $ | 41,107 | $ | 47,624 | $ | 41,107 | ||||||||
BEAZER HOMES USA, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| March 31, | September 30, | |||||||
| 2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 382,196 | $ | 537,121 | ||||
Restricted cash |
71,018 | 39,200 | ||||||
Accounts receivable (net of allowance of $3,550 and $3,567, respectively) |
34,236 | 32,647 | ||||||
Income tax receivable |
2,823 | 7,684 | ||||||
Inventory |
||||||||
Owned inventory |
1,233,428 | 1,153,703 | ||||||
Land not owned under option agreements |
35,458 | 49,958 | ||||||
Total inventory |
1,268,886 | 1,203,661 | ||||||
Investments in unconsolidated joint ventures |
9,305 | 8,721 | ||||||
Deferred tax assets, net |
7,864 | 7,779 | ||||||
Property, plant and equipment, net |
25,010 | 23,995 | ||||||
Other assets |
52,020 | 42,094 | ||||||
Total assets |
$ | 1,853,358 | $ | 1,902,902 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
Trade accounts payable |
$ | 39,199 | $ | 53,418 | ||||
Other liabilities |
211,878 | 210,170 | ||||||
Obligations related to land not owned under option agreements |
19,693 | 30,666 | ||||||
Total debt (net of discounts of $25,220 and $23,617, respectively) |
1,286,696 | 1,211,547 | ||||||
Total liabilities |
1,557,466 | 1,505,801 | ||||||
Stockholders’ equity: |
||||||||
Preferred stock (par value $.01 per share, 5,000,000 shares
authorized, no shares issued) |
— | — | ||||||
Common stock (par value $0.001 per share, 180,000,000 shares
authorized,76,261,416 and 75,669,381 issued and outstanding,
respectively) |
76 | 76 | ||||||
Paid-in capital |
620,787 | 618,612 | ||||||
Accumulated deficit |
(324,971 | ) | (221,587 | ) | ||||
Total stockholders’ equity |
295,892 | 397,101 | ||||||
Total liabilities and stockholders’ equity |
$ | 1,853,358 | $ | 1,902,902 | ||||
Inventory Breakdown |
||||||||
Homes under construction |
$ | 246,964 | $ | 210,104 | ||||
Development projects in progress |
478,303 | 444,062 | ||||||
Land held for future development |
376,949 | 382,889 | ||||||
Land held for sale |
37,496 | 36,259 | ||||||
Capitalized interest |
47,624 | 36,884 | ||||||
Pre-owned homes and deposits |
372 | — | ||||||
Model homes |
45,720 | 43,505 | ||||||
Land not owned under option agreements |
35,458 | 49,958 | ||||||
Total inventory |
$ | 1,268,886 | $ | 1,203,661 | ||||
BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA — CONTINUING OPERATIONS
CONSOLIDATED OPERATING AND FINANCIAL DATA — CONTINUING OPERATIONS
| Quarter Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
SELECTED OPERATING DATA |
||||||||||||||||
Closings: |
||||||||||||||||
West region |
181 | 369 | 397 | 765 | ||||||||||||
East region |
219 | 308 | 421 | 651 | ||||||||||||
Southeast region |
173 | 155 | 282 | 351 | ||||||||||||
Continuing Operations |
573 | 832 | 1,100 | 1,767 | ||||||||||||
Discontinued Operations |
10 | 20 | 32 | 46 | ||||||||||||
Total closings |
583 | 852 | 1,132 | 1,813 | ||||||||||||
New orders, net of cancellations: |
||||||||||||||||
West region |
417 | 646 | 591 | 999 | ||||||||||||
East region |
480 | 624 | 737 | 852 | ||||||||||||
Southeast region |
297 | 359 | 406 | 488 | ||||||||||||
Continuing Operations |
1,194 | 1,629 | 1,734 | 2,339 | ||||||||||||
Discontinued Operations |
5 | 44 | 18 | 62 | ||||||||||||
Total new orders |
1,199 | 1,673 | 1,752 | 2,401 | ||||||||||||
Backlog units at end of period: |
||||||||||||||||
West region |
463 | 665 | 463 | 665 | ||||||||||||
East region |
682 | 733 | 682 | 733 | ||||||||||||
Southeast region |
269 | 345 | 269 | 345 | ||||||||||||
Continuing Operations |
1,414 | 1,743 | 1,414 | 1,743 | ||||||||||||
Discontinued Operations |
2 | 38 | 2 | 38 | ||||||||||||
Total backlog units |
1,416 | 1,781 | 1,416 | 1,781 | ||||||||||||
Dollar value of backlog at end of period (in millions) |
$ | 339.6 | $ | 394.5 | $ | 339.6 | $ | 394.5 | ||||||||
Revenue (in thousands): |
||||||||||||||||
West region |
$ | 36,791 | $ | 80,770 | $ | 76,339 | $ | 166,563 | ||||||||
East region |
58,418 | 80,165 | 108,632 | 168,968 | ||||||||||||
Southeast region |
32,294 | 31,520 | 52,831 | 69,997 | ||||||||||||
Total revenue |
$ | 127,503 | $ | 192,455 | $ | 237,802 | $ | 405,528 | ||||||||
BEAZER HOMES USA, INC.
CONSOLIDATED OPERATING AND FINANCIAL DATA — CONTINUING OPERATIONS
(Dollars in thousands)
CONSOLIDATED OPERATING AND FINANCIAL DATA — CONTINUING OPERATIONS
(Dollars in thousands)
| Quarter Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
SUPPLEMENTAL FINANCIAL DATA |
||||||||||||||||
Revenues |
||||||||||||||||
Homebuilding operations |
$ | 123,591 | $ | 192,066 | $ | 233,577 | $ | 400,659 | ||||||||
Land sales and other |
3,912 | 389 | 4,225 | 4,869 | ||||||||||||
Total revenues |
$ | 127,503 | $ | 192,455 | $ | 237,802 | $ | 405,528 | ||||||||
Gross profit |
||||||||||||||||
Homebuilding operations |
$ | (2,606 | ) | $ | 23,412 | $ | 8,471 | $ | 41,021 | |||||||
Land sales and other |
1,365 | 1,466 | 1,676 | 2,236 | ||||||||||||
Total gross profit |
$ | (1,241 | ) | $ | 24,878 | $ | 10,147 | $ | 43,257 | |||||||
Reconciliation of homebuilding gross profit before impairments and abandonments and interest
amortized to cost of sales and the related gross margins to homebuilding gross profit and gross
margin, the most directly comparable GAAP measure, is provided for each period discussed below:
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||||||
Homebuilding gross profit |
$ | (2,606 | ) | -2.1 | % | $ | 23,412 | 12.2 | % | $ | 8,471 | 3.6 | % | $ | 41,021 | 10.2 | % | |||||||||||||||
Inventory impairments and lot option
abandonments (I&A) |
17,853 | 9,986 | 18,539 | 18,536 | ||||||||||||||||||||||||||||
Homebuilding Gross Profit before I&A |
15,247 | 12.3 | % | 33,398 | 17.4 | % | 27,010 | 11.6 | % | 59,557 | 14.9 | % | ||||||||||||||||||||
Interest amortized to cost of sales |
8,279 | 10,070 | 15,173 | 21,454 | ||||||||||||||||||||||||||||
Homebuilding gross profit before I&A
and interest amortized to cost of sales |
$ | 23,526 | 19.0 | % | $ | 43,468 | 22.6 | % | $ | 42,183 | 18.1 | % | $ | 81,011 | 20.2 | % | ||||||||||||||||