ATLANTE, May 11, 2022–(BUSINESS WIRE)–Beazer Homes USA, Inc. (NYSE: BZH) (www.beazer.com) announced today that its board of directors has approved a new stock repurchase program allowing management to repurchase up to $50 million of the company’s outstanding common stock. This new authorization replaces a previous authorization to buy back shares under which $12 million of capacity remained. Importantly, the company also reiterated its expectation to achieve a net debt to net capitalization ratio below 50% and its commitment to reduce total debt below $1 billion by the end of the year. financial year 2022.
“The decision to authorize a new buyback program reflects our disciplined approach to capital allocation,” said David Goldberg, senior vice president and chief financial officer. “While investing in new land to grow our business remains our priority, we believe that buying shares at a price significantly below book value represents an attractive investment opportunity and reflects our confidence in the business. .”
Under the repurchase program, the Company intends to purchase shares from time to time in the open market, through over-the-counter transactions or otherwise. Redemptions of such shares may be made under a Rule 10b5-1 plan, which would permit redemptions where the Company might otherwise be prevented from doing so under insider trading laws. The timing and amount of repurchase transactions are subject to the Company’s discretion and will depend on a variety of factors, including market and business conditions, compliance with the Company’s debt covenants and other considerations. The Company expects to fund buybacks under the share buyback program with available liquidity and cash flow generated from operations. The Company is not required to acquire any particular number of shares under its buyback program and the program may be suspended or terminated at any time.
About Beazer Homes
Atlanta-based Beazer Homes (NYSE: BZH) is one of the nation’s largest homebuilders. Every Beazer home is designed and built to perform amazingly, giving you more quality and more comfort from the moment you move in, saving you money every month. With Beazer’s Choice Plans™, you can customize your main living areas – giving you the choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we allow our customers to shop around and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands of dollars over the life of your loan.
We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas and Virginia. For more information, visit beazer.comor check out Beazer at Facebook, instagram and Twitter.
This press release contains forward-looking statements. These forward-looking statements represent our beliefs or expectations regarding 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 beyond our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among others: (i) our ability to effect repurchases under the share repurchase program for the authorized amount, or not at all; (ii) the impact of the share buyback program on our business and financial condition; (iii) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (iv) increases in mortgage interest rates and reduced availability of mortgage financing due to, among other factors, recent and likely continued actions by the Federal Reserve to address sharp increases in inflation; (v) other economic changes nationally and in local markets, including changes in consumer confidence, wage levels, declining employment levels and an increase in the number of foreclosures, each being beyond our control and affecting the availability of, and demand for, the homes we sell; (vi) the potential negative impacts of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and below, may include a significant decrease in demand for our homes or in the confidence of consumers in general with regard to buying a home, an inability to sell and build homes in a typical way or not at all, increasing costs or decreasing supply of building materials , including timber, or the availability of contractors, housing inspectors and other third parties upon whom we rely to support our operations, and acknowledging charges in future periods, which may be material, for impairments of goodwill, inventory write-downs and/or waivers of land option contracts; (vii) supply chain challenges negatively impacting our residential construction production, including shortages of raw materials and other critical components such as windows, doors and appliances; (viii) the shortage or increased cost of labor used in the production of housing, and the level of quality and skill provided by such labor; (ix) availability and cost of land and risks associated with the future value of our inventory, such as asset impairment charges we took on certain California assets during the second quarter of fiscal 2019; (x) factors affecting margins, such as declining land values underlying land option agreements, increased land development costs in communities being developed, or delays or difficulties in implementing initiatives to reduce our production and overhead structure; (xi) our ability to raise debt and/or equity, due to factors such as financial market limitations (including market volatility) or adverse credit market conditions, and our ability to otherwise respond our ongoing cash requirements (which could cause us to fail to meet the terms of our debt covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt securities), including the impact of any downgrades to our credit ratings or reductions in our liquidity levels; (xii) market perceptions regarding any capital raising initiatives we may undertake (including future equity or debt capital issuances); (xiii) acts of terrorism, civil protests and unrest, political uncertainty, acts of God, acts of war or other factors over which the Company has no control; (xiv) inaccurate estimates related to accommodations to be delivered in the future (backlog), as they are subject to various cancellation risks which cannot be fully controlled; (xv) changes in tax or other laws relating to the deductibility of mortgage interest charges and property taxes; (xvi) increased competition or delays in responding to changing consumer home design preferences; (xvii) natural disasters or other related events that could cause delays in land development or home construction, increase our costs, or decrease demand in affected areas; (xviii) the potential recoverability of our deferred tax assets; (xix) increases in corporate tax rates; (xx) potential delays or increased costs in obtaining necessary permits due to changes in or compliance with laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or government policies, including those relating to the environment; (xxi) the results of litigation or governmental proceedings and compliance with any related obligations; (xxii) the impact of construction defects and home warranty claims; (xxiii) the cost and availability of insurance and surety bonds, as well as the adequacy of such instruments to cover potential losses incurred; (xxiv) the impact of information technology failures, cybersecurity issues or data security breaches; (xxv) the impact of government regulations on residential construction in key markets, such as regulations limiting water availability; and (xxvi) the success of our current initiatives, such as our balanced growth strategy and our ESG initiatives, including our ability to achieve our goal that every home we build will be net zero energy ready by 2025, as well as the success of any other related partnerships or pilot programs we may enter into to increase efficiency energy in our homes and prepare for a net zero future. For additional information on identifying factors that could cause actual results to differ materially from those set forth in the forward-looking statements, see the company’s Annual Report on Form 10-K for the fiscal year ended June 30. September 2021 and in other periodic and current reports filed with or provided to the United States Securities and Exchange Commission from time to time.
Any forward-looking statement, including any statement expressing confidence regarding future results, speaks only as of the date such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date such statement is made or to reflect the occurrence of unforeseen events. New factors appear from time to time, and it is not possible to predict all of these factors.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220511005343/en/
Beazer Homes USA, Inc.
David I. Goldberg
Senior Vice President and Chief Financial Officer