Beazer Homes Q4 Profit Surges, Revenue Up; Sees Significant EBITDA Growth

(RTTNews) - Beazer Homes USA, Inc. (BZH) Tuesday said its fourth-quarter profit increased significantly from the previous year, supported by higher revenues and increased income tax benefit. Going forward, the company expects significant EBITDA growth.

Net income surged to $356.26 million from $59.85 million reported last year. Earnings per share improved to $11.21 from $1.88.

Earnings per share from continuing operations were $11.16, compared to $1.90 in the prior year.

The latest results included benefit from income taxes of $323.8 million, compared to such a benefit of $40.0 million last year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue advanced to $632.85 million from last year's $545.91 million. Analysts expected revenues of $650.84 million. Home building revenue increased to $611.7 million from $500.6 million.

New Home Orders slipped to 1,170 from 1,173. Total home closings climbed to 1,896 from 1,695.

Additionally, the company announced that it increased the capacity of its secured revolving credit facility to $145 million from $130 million and extended the maturity date to January 15, 2018.

Looking ahead to fiscal 2016 and beyond, Allan Merrill, CEO of Beazer Homes, said, "we expect significant EBITDA growth, as we benefit from more closings, further increases in average sales prices and additional fixed cost leverage, enabling us to achieve our "2B-10" goals in fiscal 2017, in line with our previous guidance. At the same time, we expect to take steps this year to reduce our leverage, reflecting our view that doing so in an improving market will create long-term shareholder value."