Beazer Homes Loss Balloons as Revenue Plunges

Beazer Homes posted a wider quarterly loss on Tuesday, further damaging ties with its lenders, and said lower consumer confidence and reduced access to mortgage financing were pounding the U.S. housing market.


The loss caused the homebuilder's tangible net worth to fall below $350 million, which violated its secured revolving credit facility agreement and caused its banks to further tighten the company's credit conditions, said analyst Vicki Bryan of Gimme Credit, a corporate bond research firm.

"Beazer is heading into one of the worst recessions since the 1930s with virtually no bank support," Bryan said, adding that the company has no borrowing capacity.

Beazer posted a loss from continuing operations of $475.2 million, or $12.32 a share, for its fiscal fourth quarter ended Sept. 30. That compared with a year-earlier loss of $152 million, or $3.95 a share.

The average Wall Street forecast was a loss from continuing operations of $2.30 per share, according to Reuters Estimates.

Beazer's net loss widened to $12.29 a share from a loss of $4.03 a year earlier.

Quarterly revenue fell to $712.6 million from $1.09 billion.

Beazer said its cash position as of Sept. 30 was $584.3 million, up from $314.2 million at June 30, but Bryan said the quality of the cash was poor, given that the company obviously did not generate it from selling homes.

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