Beazer Homes USA

2017 Performance Final Grade: 55.71/100
2016 Final Grade: 55.8/100
C-/C-

21.90/40

Change YoY
Net debt-to-capital 61.1% 160bps
Pretax home building income
(in millions)
$67.6 31.3%
Total SG&A/Total revenue 13% --
Total SG&A
(in millions)
$252.5 4.4%
Return on invested capital -5.1% -520bps
Return on equity -16.3% -1,670bps
Total shareholder return 45.6% --
EPS -$3.06 -4393%

12.38/20

Change YoY
Community count 155 -1
Share of lots optioned to total controlled 25.6% -7%

10.48/20

Change YoY
Home building gross margins 16.4% 30bps
Sales per month to break even
(per community)
2.37 --
Revenue per employee
(in millions)
$1.8 7.3%
Change YoY
Closings 5,596 4.3%
Sales velocity
(per community per month)
3.0 4.2%
Unit backlog 1,899 -1.4%


Total revenue (in millions):$1,949
HB revenue (in millions): $1,927
Debt per share: $41.32
Equity per basic share: $17.24
HB pretax margin: 3.5%
Backlog value (in millions): $704.4
Inventory (in millions):$1,626.7
Lot supply (in years): 3.8

Fiscal 2017 was notable for Beazer (NYSE: BZH) as it made significant progress on its “Balanced Growth” initiative, which, starting in fiscal 2016, called for reducing outstanding debt by at least $250 million over the next three fiscal years while continuing to grow the business. Following fiscal 2016 deleveraging efforts, the company shifted priorities for fiscal 2017 toward growing the top line and expanding profitability, while at the same time increasing the efficiency of its balance sheet.