Beazer Homes USA reports 1994 earnings of $1.76 per share.

ATLANTA--(BUSINESS WIRE)--Nov. 7, 1994--Beazer Homes USA Inc. (NYSE:BZH) Monday announced results for the 1994 fiscal year and fourth quarter.

Fiscal Year Results

For the fiscal year ended Sept. 30, 1994, pro forma earnings per share were $1.76. Net income for the year of $16.4 million increased 34.2% over the prior year (before the cumulative effect of a change in accounting for income taxes in 1993). Revenues for the year increased to $536.5 million, up 95.1% over the prior year. Home closings for the year rose 87.6% to 3,926 homes.

Pro forma earnings per share include the effects of the company's recently completed initial public offering.

Fourth Quarter Results

Earnings per share for the quarter ended Sept. 30, 1994 were $.69 on net income of $6.4 million, an increase of 13.1% over net income for the same period last year. Revenues for the quarter increased to $184.4 million, up 59.5% over the prior year.

Home closings for the quarter rose 47.2% to 1,267 homes. The company reported that home closings for the quarter were up in both its Southeast and Southwest regions.

Commentary -- First Year Results as Public Company Exceed Expectations: Leverage Reduced

Ian McCarthy, president and chief executive officer of Beazer Homes, said: "This has been an historic year for Beazer, with the completion of our initial public offering in February. We are not pleased to report that it was also a very successful one.

"Our earnings in our first year as a public company exceeded analysts' expectations and our increases in closings and revenues demonstrate that we have achieved the growth that we expected at the time of our IPO."

David Weiss, executive vice president and chief financial officer, reported: "We have increased our cash on hand to $36 million, representing over 20% of our shareholders' equity at year end. We have also brought our ratio of net debt (debt less cash on hand) to net debt plus equity down to 34.4%, one of the lowest levels of leverage in the homebuilding industry."

Weiss continued: "These changes reflect a concerted effort to manage our balance sheet conservatively at this time of rising interest rates. We believe that the recent increases in interest rates have created uncertainty which may result in market opportunities. We strive to have the flexibility to take advantage of such opportunities."

New Orders -- Up in Southeast, Down in Southwest

The company also reported new orders of 842 homes for the quarter compared to 1,067 for the same period last year. The company's backlog of homes sold but not yet closed as of Sept. 30, 1994 was 988 homes compared to 1,199 at Sept. 30, 1993. The sales value of the backlog was $143.5 million compared to $155.8 million in the prior year.

McCarthy reported: "New orders for the quarter were up in the Southeast and down in the Southwest region. The decrease in the Southwest region was principally from one large subdivision in Phoenix which unusually impacted the prior year's results."

McCarthy continued: "Elsewhere in the Southwest region, we are particularly encouraged by increases in new orders and backlog in our California operations. New orders in California for the quarter increased over 100% to 164 homes and backlog of 88 homes at Sept. 30, 1994 represents a 22.2% increase over the prior year.

"We believe that the rebound in California that we anticipated at the time of the Watt acquisition, in February 1993, has begun."

McCarthy also explained: "New orders for the Southeast region include Florida, where we expanded through acquisition during the year. Our Florida operations had new orders of 76 homes during the quarter ended Sept. 30, 1994. We are very pleased with our entry into the Florida market in 1994 and intend to further expand our presence in 1995."

McCarthy continued: "We would also like to point out that the prior year's new orders include 80 homes in our Clifton, N.J. project. During the quarter ended Sept. 30, 1994 this project had one home sale, representing the last unit."

Company Forecasts Growth in 1995

McCarthy also stated: "We believe that increases in interest rates in 1994 have had an adverse effect on the homebuilding industry and our new orders. Barring significant future adverse changes, however, with the rebound in California, the expansion of our Florida operations and the growth of certain of our other markets we forecast continued growth in 1995."

Beazer Homes USA, based in Atlanta, is one of the country's largest geographically diversified homebuilders, operating in 16 markets, principally in the Southeast and Southwest United States. The company concentrates on single-family homes for the first-time homebuyer and first move-up markets.

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                          BEAZER HOMES USA, INC.
                    CONSOLIDATED OPERATING AND FINANCIAL DATA
               (Dollars in thousands, except per share amounts)

                             Quarter Ended           Year Ended
                                Sept. 30,             Sept. 30,
                             1994     1993          1994      1993

SELECTED OPERATING DATA
Closings:
 Southeast region             547      456         1,734     1,312
 Southwest region             699      399         2,073       775
 Other markets                 21        6           119         6
Total closings              1,267      861         3,926     2,093
New contracts, net of
 cancellations:
 Southeast region             393      359         1,726     1,392
 Southwest region             448      628         1,892     1,082
 Other markets                  1       80            48        80
Total new contracts           842    1,067         3,666     2,554

Backlog at end of period      988    1,199

Dollar value of backlog
 at end of period        $143,527 $155,787

INCOME STATEMENT
Total revenue            $184,355 $115,608      $536,526  $275,054
Cost of sales             158,824   95,236       460,338   225,510
Gross profit               25,531   20,372        76,188    49,544
Selling, general and
 administrative expense    14,894   11,262        48,811    29,585
Operating income           10,637    9,110        27,377    19,959
Other (income) expense          0      172           (24)      295
Income before income
 taxes and cumulative
 effect of change
 in accounting             10,637    8,938        27,401    19,664
Income taxes                4,280    3,318        10,933     7,394
Income before cumulative
 effect of change
 in accounting              6,357    5,620        16,468    12,270
Cumulative effect of
 change in accounting
 for income taxes
 (FASB Statement
 No. 109)                                                    3,776
Net income                 $6,357   $5,620       $16,468   $16,046

Pro forma net income         N/A    $5,359       $16,226   $13,033

Earnings before interest
 and taxes                $13,916  $10,384       $37,169   $22,713
Interest incurred          $3,072   $2,687       $11,306    $6,553

Net income per share        $0.69
Pro forma net income
 per share                                         $1.76

Common shares outstanding,
 end of period          9,220,367              9,220,367

CONDENSED BALANCE SHEET    Sept. 30,            Sept. 30,
                             1994                 1993

Cash                      $35,980                   $819
Inventory                 253,356                225,863
Other assets               25,605                 18,667
Total assets             $314,941               $245,349

Notes payable            $115,000               $115,978
Other liabilities          49,535                 33,776
Total liabilities         164,535                149,754
Stockholders' equity      150,406                 95,595
Total liabilities and
 stockholders' equity    $314,941               $245,349

CONTACT: Beazer Homes USA Inc., Atlanta

David S. Weiss, 404/250-3420