Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2022 | Jul. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-12822 | |
Entity Registrant Name | BEAZER HOMES USA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-2086934 | |
Entity Address, Address Line One | 1000 Abernathy Road | |
Entity Address, Address Line Two | Suite 260 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | 770 | |
Local Phone Number | 829-3700 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | BZH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,275,185 | |
Entity Central Index Key | 0000915840 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 42,039 | $ 246,715 |
Restricted cash | 39,762 | 27,428 |
Accounts receivable (net of allowance of $284 and $290, respectively) | 25,137 | 25,685 |
Income tax receivable | 9,929 | 9,929 |
Owned inventory | 1,858,851 | 1,501,602 |
Investments in unconsolidated entities | 897 | 4,464 |
Deferred tax assets, net | 179,038 | 204,766 |
Property and equipment, net | 24,971 | 22,885 |
Operating lease right-of-use assets | 10,641 | 12,344 |
Goodwill | 11,376 | 11,376 |
Other assets | 15,759 | 11,616 |
Total assets | 2,218,400 | 2,078,810 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade accounts payable | 145,864 | 133,391 |
Operating lease liabilities | 12,155 | 14,154 |
Other liabilities | 155,176 | 152,351 |
Total debt (net of debt issuance costs of $7,752 and $8,983, respectively) | 1,049,078 | 1,054,030 |
Total liabilities | 1,362,273 | 1,353,926 |
Stockholders’ equity: | ||
Preferred stock (par value 0.01 per share, 5,000,000 shares authorized, no shares issued) | 0 | 0 |
Common stock (par value 0.001 per share, 63,000,000 shares authorized, 31,275,185 issued and outstanding and 31,294,198 issued and outstanding, respectively) | 31 | 31 |
Paid-in capital | 863,520 | 866,158 |
Accumulated deficit | (7,424) | (141,305) |
Total stockholders’ equity | 856,127 | 724,884 |
Total liabilities and stockholders’ equity | $ 2,218,400 | $ 2,078,810 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 63,000,000 | 63,000,000 |
Common Stock, Shares, Issued | 31,275,185 | 31,294,198 |
Common stock outstanding (in shares) | 31,275,185 | 31,294,198 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Allowances for accounts receivable | $ 284 | $ 290 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Unamortized debt issuance expense | $ 7,752 | $ 8,983 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 63,000,000 | 63,000,000 |
Common stock issued (in shares) | 31,275,185 | 31,294,198 |
Common stock outstanding (in shares) | 31,275,185 | 31,294,198 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Total revenue | $ 526,666 | $ 570,932 | $ 1,489,321 | $ 1,549,360 |
Home construction and land sales expenses | 394,201 | 455,178 | 1,138,771 | 1,259,922 |
Inventory impairments and abandonments | 0 | 231 | 935 | 696 |
Gross profit | 132,465 | 115,523 | 349,615 | 288,742 |
Commissions | 16,277 | 20,955 | 48,668 | 58,346 |
General and administrative expenses | 45,760 | 42,186 | 129,057 | 119,903 |
Depreciation and amortization | 3,189 | 3,689 | 9,101 | 10,494 |
Operating income | 67,239 | 48,693 | 162,789 | 99,999 |
Equity in income of unconsolidated entities | 3 | 313 | 454 | 424 |
Gain (loss) on extinguishment of debt, net | 86 | (1,050) | (78) | (1,613) |
Other income (expense), net | 134 | (10) | 405 | (2,356) |
Income from continuing operations before income taxes | 67,462 | 47,946 | 163,570 | 96,454 |
Expense from income taxes | 13,150 | 10,804 | 29,685 | 22,633 |
Income from continuing operations | 54,312 | 37,142 | 133,885 | 73,821 |
Income (loss) from discontinued operations, net of tax | 12 | (7) | (4) | (161) |
Net income | $ 54,324 | $ 37,135 | $ 133,881 | $ 73,660 |
Weighted-average number of shares: | ||||
Basic (in shares) | 30,512 | 30,022 | 30,480 | 29,915 |
Diluted (in shares) | 30,872 | 30,562 | 30,806 | 30,292 |
Basic income (loss) per share: | ||||
Continuing operations (in USD per share) | $ 1.78 | $ 1.24 | $ 4.39 | $ 2.47 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | (0.01) |
Total (in USD per share) | 1.78 | 1.24 | 4.39 | 2.46 |
Diluted income (loss) per share: | ||||
Continuing operations (in USD per share) | 1.76 | 1.22 | 4.35 | 2.44 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | (0.01) |
Total (in USD per share) | $ 1.76 | $ 1.22 | $ 4.35 | $ 2.43 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Sep. 30, 2020 | 31,012 | |||
Beginning balance at Sep. 30, 2020 | $ 593,171 | $ 31 | $ 856,466 | $ (263,326) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 73,660 | 73,660 | ||
Net comprehensive income | 73,660 | 73,660 | ||
Stock-based compensation expense | 9,254 | 9,254 | ||
Exercises of stock options (in shares) | 198 | |||
Stock option exercises | 564 | 564 | ||
Shares issued under employee stock plans, net (in shares) | 417 | |||
Forfeiture and other settlements of restricted stock (in shares) | (29) | |||
Forfeiture and other settlements of restricted stock | 0 | 0 | ||
Common stock redeemed for tax liability (in shares) | (304) | |||
Common stock redeemed for tax liability | (3,044) | (3,044) | ||
Ending balance (in shares) at Jun. 30, 2021 | 31,294 | |||
Ending balance at Jun. 30, 2021 | 673,605 | $ 31 | 863,240 | (189,666) |
Beginning balance (in shares) at Mar. 31, 2021 | 31,289 | |||
Beginning balance at Mar. 31, 2021 | 633,767 | $ 31 | 860,537 | (226,801) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 37,135 | 37,135 | ||
Net comprehensive income | 37,135 | 37,135 | ||
Stock-based compensation expense | 3,194 | 3,194 | ||
Exercises of stock options (in shares) | 30 | |||
Stock option exercises | (67) | (67) | ||
Shares issued under employee stock plans, net (in shares) | 6 | |||
Forfeiture and other settlements of restricted stock (in shares) | (13) | |||
Common stock redeemed for tax liability (in shares) | (18) | |||
Common stock redeemed for tax liability | (424) | (424) | ||
Ending balance (in shares) at Jun. 30, 2021 | 31,294 | |||
Ending balance at Jun. 30, 2021 | 673,605 | $ 31 | 863,240 | (189,666) |
Beginning balance (in shares) at Sep. 30, 2021 | 31,294 | |||
Beginning balance at Sep. 30, 2021 | 724,884 | $ 31 | 866,158 | (141,305) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 133,881 | 133,881 | ||
Net comprehensive income | 133,881 | 133,881 | ||
Stock-based compensation expense | 6,515 | 6,515 | ||
Exercises of stock options (in shares) | 1 | |||
Stock option exercises | 5 | 5 | ||
Shares issued under employee stock plans, net (in shares) | 518 | |||
Forfeiture and other settlements of restricted stock (in shares) | (55) | |||
Forfeiture and other settlements of restricted stock | 0 | |||
Common stock redeemed for tax liability (in shares) | (308) | |||
Common stock redeemed for tax liability | (6,631) | (6,631) | ||
Share repurchases (in shares) | (175) | |||
Share repurchases | (2,527) | (2,527) | ||
Ending balance (in shares) at Jun. 30, 2022 | 31,275 | |||
Ending balance at Jun. 30, 2022 | 856,127 | $ 31 | 863,520 | (7,424) |
Beginning balance (in shares) at Mar. 31, 2022 | 31,458 | |||
Beginning balance at Mar. 31, 2022 | 802,357 | $ 31 | 864,074 | (61,748) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 54,324 | 54,324 | ||
Net comprehensive income | 54,324 | 54,324 | ||
Stock-based compensation expense | 1,983 | 1,983 | ||
Exercises of stock options (in shares) | 0 | |||
Stock option exercises | 1 | 1 | ||
Shares issued under employee stock plans, net (in shares) | 1 | |||
Forfeiture and other settlements of restricted stock (in shares) | (8) | |||
Forfeiture and other settlements of restricted stock | 0 | |||
Common stock redeemed for tax liability (in shares) | (1) | |||
Common stock redeemed for tax liability | (11) | (11) | ||
Share repurchases (in shares) | (175) | |||
Share repurchases | (2,527) | (2,527) | ||
Ending balance (in shares) at Jun. 30, 2022 | 31,275 | |||
Ending balance at Jun. 30, 2022 | $ 856,127 | $ 31 | $ 863,520 | $ (7,424) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 133,881 | $ 73,660 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 9,101 | 10,494 |
Stock-based compensation expense | 6,515 | 9,254 |
Inventory impairments and abandonments | 935 | 696 |
Deferred and other income tax expense | 29,683 | 22,587 |
Gain on sale of fixed assets | (252) | (258) |
Change in allowance for doubtful accounts | (6) | (66) |
Equity in income of unconsolidated entities | (454) | (424) |
Cash distributions of income from unconsolidated entities | 380 | 66 |
Gain (loss) on extinguishment of debt, net | 78 | 1,613 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 554 | (3,145) |
Decrease in income tax receivable | 0 | 49 |
Increase in inventory | (351,424) | (54,867) |
Increase in other assets | (4,540) | (4,195) |
Increase in trade accounts payable | 12,473 | 22,892 |
(Decrease) increase in other liabilities | (1,428) | 186 |
Net cash (used in) provided by operating activities | (164,504) | 78,542 |
Cash flows from investing activities: | ||
Capital expenditures | (11,192) | (10,319) |
Proceeds from sale of fixed assets | 257 | 308 |
Net cash used in investing activities | (10,935) | (10,011) |
Cash flows from financing activities: | ||
Repayment of debt | (7,750) | (25,128) |
Repayment of borrowings from credit facility | (80,000) | 0 |
Borrowings from credit facility | 80,000 | 0 |
Debt issuance costs | 0 | (427) |
Repurchase of common stock | (2,527) | 0 |
Tax payments for stock-based compensation awards | (6,631) | (3,044) |
Stock option exercises | 5 | 564 |
Net cash used in financing activities | (16,903) | (28,035) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (192,342) | 40,496 |
Cash, cash equivalents, and restricted cash at beginning of period | 274,143 | 342,528 |
Cash, cash equivalents, and restricted cash at end of period | $ 81,801 | $ 383,024 |
Description of Business
Description of Business | 9 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Beazer Homes USA, Inc. (“we,” “us,” “our,” “Beazer,” “Beazer Homes” and the “Company”) is a geographically diversified homebuilder with active operations in 13 states within three geographic regions in the United States: the West, East, and Southeast. Our homes are designed to appeal to homeowners at different price points across various demographic segments and are generally offered for sale in advance of their construction. Our objective is to provide our customers with homes that incorporate exceptional value and quality, while seeking to maximize our return on invested capital over the course of a housing cycle. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited condensed consolidated financial state ments do not include all of the information and disclosures required by GAAP for complete financial statements. As such, the accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's 2021 Annual Report. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements. The results of the Company's consolidated operations presented herein for the three and nine months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonal variations in our operations and other factors. Basis of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income. In the past, we have discontinued homebu ilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented (see Note 16 for a further discussion of our discontinued operations). Our fiscal year 2022 began on October 1, 2021 and ends on September 30, 2022. Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. Share Repurchase Program In May 2022, the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. This newly authorized program replaced the prior share repurchase program authorized in the first quarter of fiscal 2019 of up to $50.0 million of common stock repurchases, pursuant to which $12.0 million of the capacity remained prior to the replacement of the program. As part of this new program, the C ompany repurchased 175 thousand shares of its common stock for $2.5 million at an average price per share of $14.47 during the three months ended June 30, 2022 through open market transactions. No share repurchases were made during fiscal year 2021. All shares have been retired upon repurchase. The aggregate reduction to stockholders’ equity related to share repurchases duri ng the nine months ended June 30, 2022 was $2.5 million. As of June 30, 2022, the remaining availability of the new share repurchase program was $47.5 million. Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in ASC Topic 606, Revenue from Contracts with Customers . • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met The following table presents our total revenue disaggregated by revenue stream: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Homebuilding revenue $ 523,229 $ 566,930 $ 1,477,166 $ 1,538,576 Land sales and other revenue 3,437 4,002 12,155 10,784 Total revenue (a) $ 526,666 $ 570,932 $ 1,489,321 $ 1,549,360 (a) Please see Note 15 for total revenue disaggregated by reportable segment. Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and to taled $44.1 million and $28.5 million as of June 30, 2022 and September 30, 2021, respectively. Of the customer liabilities outstanding as of September 30, 2021, $5.4 million and $23.1 million was recognized in revenue during the three and nine months ended June 30, 2022 upon closing of the related homes. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect of adopting the new guidance on its consolidated financial statements and related disclosures. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Nine Months Ended June 30, in thousands 2022 2021 Supplemental disclosure of non-cash activity: Increase in operating lease right-of-use assets (a) $ 811 $ 2,649 Increase in operating lease liabilities (a) $ 811 $ 2,649 Derecognition of investment in unconsolidated entities (b) $ 3,641 $ — Supplemental disclosure of cash activity: Interest payments $ 60,052 $ 63,878 Income tax payments $ 3,783 $ 2,297 Tax refunds received $ — $ 49 Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 42,039 $ 358,334 Restricted cash 39,762 24,690 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 81,801 $ 383,024 (a) Represents leases renewed or additional leases commenced during the nine months ended June 30, 2022 and June 30, 2021. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 9 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Unconsolidated Entities As of June 30, 2022, the Company participated in certain joint ventures and had investments in unconsolidated entities in which it had less than a controlling interest. The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Investment in unconsolidated entities $ 897 $ 4,464 Total equity of unconsolidated entities $ 1,032 $ 7,316 Total outstanding borrowings of unconsolidated entities $ — $ 12,708 On May 20, 2022, the Company acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder. For the past 16 years, Beazer has held a one-third ownership stake in Imagine Homes, recorded as an investment in unconsolidated entities on the condensed consolidated balance sheet. The transaction was deemed an asset acquisition under the guidance of ASC Topic 805-50, Business Combinations - Related Issues. The Company accounted for the asset acquisition following the cost accumulation model, whereby the sum of the carrying value of the previously held interest, additional consideration paid and transaction costs was allocated to the acquired assets on a relative fair value basis. The reduction in balances of the Company's investment in unconsolidated entities, total equity and outstanding borrowings of unconsolidated entities during the quarter ended June 30, 2022 reflects the Imagine Homes transaction. Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Equity in income of unconsolidated entities $ 3 $ 313 $ 454 $ 424 For the nine months ended June 30, 2022 and 2021, ther e were no impairments related to investments in unconsolidated entities. Guarantees Historically, the Company's joint ventures typically obtained secured acquisition, development, and construction financing. In addition, the Company and its joint venture partners provided varying levels of guarantees of debt and other debt-related obligations for these unconsolidated entities. However, as of June 30, 2022 and September 30, 2021, the Company had no outstanding guarantees or other debt-related obligations related to our investments in unconsolidated entities. The Company and its joint venture partners generally provide unsecured environmental indemnities to land development joint venture project lenders. These indemnities obligate the Company to reimburse the project lenders for claims related to environmental matters for which they are held responsible. During the three and nine months ended June 30, 2022 and 2021, the Company was not required to make any payments related to environmental indemnities. In assessing the need to record a liability for these guarantees, the Company considers its historical experience in being required to perform under the guarantees, the fair value of the collateral underlying these guarantees, and the financial condition of the applicable unconsolidated entities. In addition, the fair value of the collateral of unconsolidated entities is monitored to ensure that the related borrowings do not exceed the specified percentage of the value of the property securing the borrowings. As of June 30, 2022, no liability was recorded for the contingent aspects of any guarantees that were determined to be reasonably possible but not probable. |
Owned Inventory
Owned Inventory | 9 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Owned Inventory | Owned Inventory The components of our owned inventory are as follows as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Homes under construction $ 976,590 $ 648,283 Land under development 659,057 648,404 Land held for future development 19,879 19,879 Land held for sale 13,598 9,179 Capitalized interest 115,735 106,985 Model homes 73,992 68,872 Total owned inventory $ 1,858,851 $ 1,501,602 Homes under construction include homes substantially finished and ready for delivery and homes in various stages of construction, including costs of the underlying lot, direct construction costs and capitalized indirect costs . As of June 30, 2022, we had 3,656 homes under construction, including 936 spec homes totaling $212.8 million (881 in-process spec homes totaling $191.0 million, and 55 finished spec homes totaling $21.8 million). As of September 30, 2021, we had 2,912 homes under construction, including 576 spec homes totaling $116.4 million (542 in-process spec units totaling $105.2 million, and 34 finished spec units totaling $11.2 million). Land under development consists principally of land acquisition, land development and other common costs. These land related costs are allocated to individual lots on a pro-rata basis, and the lot costs are transferred to homes under construction when home construction begins for the respective lots. Certain of the fully developed lots in this category are reserved by a customer deposit or sales contract. Land held for future development consists of communities for which construction and development activities are expected to occur in the future or have been idled and are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. All applicable carrying costs, such as interest and real estate taxes, are expensed as incurred. Land held for sale includes land and lots that do not fit within our homebuilding programs and strategic plans in certain markets, and land is classified as held for sale once certain criteria are met (refer to Note 2 to the audited consolidated financial statements within our 2021 Annual Report). These assets are recorded at the lower of the carrying value or fair value less costs to sell (net realizable value). The amount of interest we are able to capitalize depends on our qualified inventory balance, which considers the status of our inventory holdings. Our qualified inventory balance includes the majority of our homes under construction and land under development but excludes land held for future development and land held for sale (see Note 6 for additional information on capitalized interest). Total owned inventory by reportable segment is presented in the table below as of June 30, 2022 and September 30, 2021: in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned June 30, 2022 West $ 977,567 $ 3,483 $ 12,922 $ 993,972 East 340,673 10,888 — 351,561 Southeast 327,156 5,508 676 333,340 Corporate and unallocated (b) 179,978 — — 179,978 Total $ 1,825,374 $ 19,879 $ 13,598 $ 1,858,851 September 30, 2021 West $ 781,036 $ 3,483 $ 4,478 $ 788,997 East 264,991 10,888 584 276,463 Southeast 269,738 5,508 4,117 279,363 Corporate and unallocated (b) 156,779 — — 156,779 Total $ 1,472,544 $ 19,879 $ 9,179 $ 1,501,602 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. (b) Projects in progress amount includes capitalized interest and indirect costs that are maintained within our Corporate and unallocated segment. Inventory Impairments Inventory assets are assessed for recoverability periodically in accordance with the policies described in Notes 2 and 5 to the audited consolidated financial statements within our 2021 Annual Report. The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Land Held for Sale: West $ — $ — $ 440 $ — Total impairment charges on land held for sale $ — $ — $ 440 $ — Abandonments: West $ — $ — $ 12 $ — East — — 465 Southeast — 231 483 231 Total abandonments charges $ — $ 231 $ 495 $ 696 Total impairment and abandonment charges $ — $ 231 $ 935 $ 696 Projects in Progress Impairments Projects in progress inventory includes homes under construction and land under development grouped together as communities. Projects in progress are stated at cost unless facts and circumstances indicate that the carrying value of the assets may not be recoverable. We assess our projects in progress inventory for indicators of impairment at the community level on a quarterly basis. If indicators of impairment are present for a community with more than ten homes remaining to close, we perform a recoverability test by comparing the expected undiscounted cash flows for the community to its carrying value. If the aggregate undiscounted cash flows are in excess of the carrying value, the asset is considered to be recoverable and is not impaired. If the carrying value exceeds the aggregate undiscounted cash flows, we perform a discounted cash flow analysis to determine the fair value of the community, and impairment charges are recorded if the fair value of the community's inventory is less than its carrying value. No project in progress impairments were recognized during the three and nine months ended June 30, 2022 and 2021, respectively. Land Held for Sale Impairments` We evaluate the net realizable value of a land held for sale asset when indicators of impairment are present. Impairments on land held for sale generally represent write downs of these properties to net realizable value based on sales contracts, letters of intent, current market conditions, and recent comparable land sale transactions, as applicable. Absent an executed sales contract, our assumptions related to land sales prices require significant judgment because the real estate market is highly sensitive to changes in economic conditions, and our estimates of sale prices could differ significantly from actual results. No land held for sale impairments were recognized during the three months ended June 30, 2022. We recognized $0.4 million land held for sale impairments d uring the nine months ended June 30, 2022 related to one held for sale community in the West segment. No land held for sale impairments were recognized during the three and nine months ended June 30, 2021. Abandonments From time-to-time, we may determine to abandon lots or not exercise certain option contracts that are not projected to produce adequate results or no longer fit with our long-term strategic plan. Additionally, in certain limited instances, we are forced to abandon lots due to seller non-performance, or permitting or other regulatory issues that do not allow us to build on those lots. If we intend to abandon or walk away from a property, we record an abandonment charge to earnings for the deposit amount and any related capitalized costs in the period such decision is made. No abandonment charges were recognized during the three months ended June 30, 2022. We recognized $0.5 million abandonment charges during the nine months ended June 30, 2022 related to one under contract deal in the West segment and one under contract deal in the Southeast segment that we decided to terminate. During the three and nine months ended June 30, 2021, we recognized $0.2 million and $0.7 million abandonment charges, respectively, related to under contract deals that we decided to terminate in the East and Southeast segments. Lot Option Agreements In addition to purchasing land directly, we utilize lot option agreements that enable us to defer acquiring portions of properties owned by third parties and unconsolidated entities until we have determined whether to exercise our lot option. The majority of our lot option agreements require a non-refundable cash deposit or irrevocable letter of credit based on a percentage of the purchase price of the land for the right to acquire lots during a specified period at a specified price. Purchase of the properties under these agreements is contingent upon satisfaction of certain requirements by us and the sellers. Under lot option agreements, our liability is generally limited to forfeiture of the non-refundable deposits, letters of credit and other non-refundable amounts incurred. If the Company cancels a lot option agreement, it would result in a write-off of the related deposits and pre-acquisition costs, but would not expose the Company to the overall risks or losses of the applicable entity we are purchasing from. We expect to exercise, subject to market conditions and seller satisfaction of contract terms, most of our remaining option contracts. Various factors, some of which are beyond our control, such as market conditions, weather conditions, and the timing of the completion of development activities, will have a significant impact on the timing of option exercises or whether lot options will be exercised at all. The following table provides a summary of our interests in lot option agreements as of June 30, 2022 and September 30, 2021: in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred (a) Remaining As of June 30, 2022 Unconsolidated lot option agreements $ 137,357 $ 819,072 As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 |
Interest
Interest | 9 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Interest | Interest Interest capitalized during the three and nine months ended June 30, 2022 and 2021 was limited by the balance of inventory eligible for capitalization. The following table presents certain information regarding interest for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Capitalized interest in inventory, beginning of period $ 112,686 $ 113,414 $ 106,985 $ 119,659 Interest incurred 18,728 19,270 55,292 58,517 Interest expense not qualified for capitalization and included as other expense (a) — (212) — (2,781) Capitalized interest amortized to home construction and land sales expenses (b) (15,679) (22,529) (46,542) (65,452) Capitalized interest in inventory, end of period $ 115,735 $ 109,943 $ 115,735 $ 109,943 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Borrowings
Borrowings | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2022 and September 30, 2021: in thousands Maturity Date June 30, 2022 September 30, 2021 Senior Unsecured Term Loan September 2022 $ 50,000 $ 50,000 6.750% Senior Notes (2025 Notes) March 2025 227,822 229,555 5.875% Senior Notes (2027 Notes) October 2027 357,255 363,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (7,752) (8,983) Total Senior Notes, net 977,325 983,827 Junior Subordinated Notes (net of unamortized accretion of $29,020 and $30,570, respectively) July 2036 71,753 70,203 Revolving Credit Facility February 2024 — — Total debt, net $ 1,049,078 $ 1,054,030 Secured Revolving Credit Facility The Secured Revolving Credit Facility (the Facility) provides working capital and letter of credit capacity of $250.0 million . The Facility is currently with four lenders. For additional discussion of the Facility, refer to Note 8 to the audited consolidated financial statements within our 2021 Annual Report. As of June 30, 2022 and September 30, 2021, no borrowings were outstanding under the Facility. As of June 30, 2022, we had letters of credit outstanding of $1.8 million under the Facility, resulting in a remaining capacity of $248.2 million . We had no letters of credit outstanding under the Facility as of September 30, 2021. The Facility requires compliance with certain covenants, including negative covenants and financial covenants. As of June 30, 2022, the Company believes it was in compliance with all such covenants. Senior Unsecured Term Loan On September 9, 2019, the Company entered into a term loan agreement, which provides for a Senior Unsecured Term Loan (the Term Loan). The principal balance as of June 30, 2022 was $50.0 million . The Term Loan (1) will mature in September 2022, with the remaining $50.0 million annual repayment installment due in September 2022; (2) bears interest at a fixed rate of 4.875%; and (3) includes an option to prepay, subject to certain conditions and the payment of certain premiums. The Term Loan contains covenants generally consistent with the covenants contained in the Facility. As of June 30, 2022, the Company believes it was in compliance with all such covenants. Letter of Credit Facilities The Company has entered into stand-alone, cash-secured letter of credit agreements with banks to maintain pre-existing letters of credit and to provide for the issuance of new letters of credit (in addition to the letters of credit issued under the Facility). As of June 30, 2022 and September 30, 2021, the Company had letters of credit outstanding under these additional facilities of $28.8 million and $21.8 million, respectively, all of which were secured by cash collateral in restricted accounts totaling $31.5 million and $22.3 million, respectively. The Company may enter into additional arrangements to provide additional letter of credit capacity. Senior Notes The Company's Senior Notes are unsecured obligations ranking pari passu with all other existing and future senior indebtedness. Substantially all of the Company's significant subsidiaries are full and unconditional guarantors of the Senior Notes and are jointly and severally liable for obligations under the Senior Notes and the Facility. Each guarantor subsidiary is a 100% owned subsidiary of Beazer Homes. All unsecured Senior Notes rank equally in right of payment with all existing and future senior unsecured obligations, senior to all of the Company's existing and future subordinated indebtedness and effectively subordinated to the Company's existing and future secured indebtedness, including indebtedness under the Facility, if outstanding, to the extent of the value of the assets securing such indebtedness. The unsecured Senior Notes and related guarantees are structurally subordinated to all indebtedness and other liabilities of all of the Company's subsidiaries that do not guarantee these notes but are fully and unconditionally guaranteed jointly and severally on a senior basis by the Company's wholly-owned subsidiaries party to each applicable indenture. The Company's Senior Notes are issued under indentures that contain certain restrictive covenants which, among other things, restrict our ability to pay dividends, repurchase our common stock, incur certain types of additional indebtedness, and make certain investments. Compliance with the Senior Note covenants does not significantly impact the Company's operations. The Company believes it was in compliance with the covenants contained in the indentures of all of its Senior Notes as of June 30, 2022. During the three months ended June 30, 2022, we repurchased $1.7 million of our outstanding 2025 Notes using cash on hand, resulting in a gain on extinguishment of debt of $0.1 million. During the nine months ended June 30, 2022, we repurchased $6.0 million of our outstanding 2027 Notes and $1.7 million of our outstanding 2025 Notes using cash on hand, resulting in a loss on extinguishment of debt of $0.1 million. For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6.750% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 5.875% Senior Notes October 2017 October 2027 Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 7.250% Senior Notes September 2019 October 2029 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. Junior Subordinated Notes The Company's unsecured junior subordinated notes (Junior Subordinated Notes) mature on July 30, 2036 and have an aggregate principal balance of $100.8 million as of June 30, 2022. The securities have a floating interest rate as defined in the Junior Subordinated Notes Indentures, wh i ch was a weighted-average of 4.12% as of June 30, 2022. The obligations relating to these notes are subordinated to the Facility and the Senior Notes. In January 2010, the Company restructured $75.0 million of these notes and recorded them at their then estimated fair value. Over the remaining life of the restructured notes, we will increase their carrying value until this carrying value equals the face value of the notes. As of June 30, 2022, the unamortized accretion was $29.0 million and will be amortized over the remaining life of the restructured notes. The remaining $25.8 million of these notes are subject to the terms of the original agreement, have a floating interest rate equal to three-month LIBOR plus 2.45% per annum, resetting quarterly, and are redeemable in whole or in part at par value. The material terms of the $75.0 million restructured notes are identical to the terms of the original agreement except that the floating interest rate is subject to a floor of 4.25% and a cap of 9.25%. In addition, beginning on June 1, 2012, the Company has the option to redeem the $75.0 million principal balance in whole or in part at 75% of par value; beginning on June 1, 2022, the redemption price will increase by 1.785% annually. As of June 30, 2022, the Company believes it was in compliance with all covenants under the Junior Subordinated Notes. |
Operating Leases
Operating Leases | 9 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company leases certain office space and equipment under operating leases for use in our operations. We recognize operating lease expense on a straight-line basis over the lease term. Certain of our lease agreements include one or more options to renew. The exercise of lease renewal options is generally at our discretion. Variable lease expense primarily relates to maintenance and other monthly expense that do not depend on an index or rate. We determine if an arrangement is a lease at contract inception. Lease and non-lease components are accounted for as a single component for all leases. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the future lease payments over the expected lease term, which includes optional renewal periods if we determine it is reasonably certain that the option will be exercised. As our leases do not provide an implicit rate, the discount rate used in the present value calculation represents our incremental borrowing rate determined using information available at the commencement date. Operating lease expense is included as a component of general and administrative expenses in our condensed consolidated statements of operations. Sublease income and variable lease expenses are de minimis. For the three and nine months ended June 30, 2022 and 2021, operating lease expense and cash payments on lease liabilities were as follows: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Operating lease expense $ 986 $ 1,075 $ 2,964 $ 3,248 Cash payments on lease liabilities $ 1,083 $ 1,161 $ 3,259 $ 3,679 At June 30, 2022 and 2021, the weighted-average remaining lease term and discount rate were as follows: As of June 30, 2022 2021 Weighted-average remaining lease term 4.4 years 4.9 years Weighted-average discount rate 4.45% 4.62% The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2022: Fiscal Years Ending September 30, in thousands 2022 (a) $ 1,103 2023 3,799 2024 2,680 2025 2,277 2026 1,643 Thereafter 1,928 Total lease payments (b) 13,430 Less: Imputed interest 1,275 Total operating lease liabilities $ 12,155 ` (a) Remaining lease payments are for the period beginning July 1, 2022 through September 30, 2022. (b) Lease payments excludes $10.3 million legally binding minimum lease payments for an office lease signed but not yet commenced. The related ROU asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of June 30, 2022. |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Beazer Homes and certain of its subsidiaries have been and continue to be named as defendants in various construction defect claims, complaints, and other legal actions. The Company is subject to the possibility of loss contingencies related to these defects as well as others arising from its business. In determining loss contingencies, we consider the likelihood of loss and our ability to reasonably estimate the amount of such loss. An estimated loss is recorded when it is considered probable that a liability has been incurred and the amount of loss can be reasonably estimated. Warranty Reserves We currently provide a limited warranty ranging from one Our homebuilding work is performed by subcontractors who typically must agree to indemnify us with regard to their work and provide certificates of insurance demonstrating that they have met our insurance requirements and have named us as an additional insured under their policies. Therefore, many claims relating to workmanship and materials that result in warranty spending are the primary responsibility of these subcontractors. Warranty reserves are included in other liabilities within the condensed consolidated balance sheets, and the provision for warranty accruals is included in home construction expenses in the condensed consolidated statements of operations. Reserves covering anticipated warranty expenses are recorded for each home closed. Management assesses the adequacy of warranty reserves each reporting period based on historical experience and the expected costs to remediate potential claims. Our review includes a quarterly analysis of the historical data and trends in warranty expense by division. An analysis by division allows us to consider market-specific factors such as warranty experience, the number of home closings, the prices of homes, product mix, and other data in estimating warranty reserves. In addition, the analysis also contemplates the existence of any non-recurring or community-specific warranty-related matters that might not be included in historical data and trends that may need to be separately estimated based on management's judgment of the ultimate cost of repair for that specific issue. While estimated warranty liabilities are adjusted each reporting period based on the results of our quarterly analyses, we may not accurately predict actual warranty costs, which could lead to significant changes in the reserve. In addition, we maintain third-party insurance, subject to applicable self-insured retentions, for most construction defects that we encounter in the normal course of business. We believe that our warranty and litigation accruals and third-party insurance are adequate to cover the ultimate resolution of our potential liabilities associated with known and anticipated warranty and construction defect related claims and litigation. However, there can be no assurance that the terms and limitations of the limited warranty will be effective against claims made by homebuyers; that we will be able to renew our insurance coverage or renew it at reasonable rates; that we will not be liable for damages, the cost of repairs, and/or the expense of litigation surrounding possible construction defects, soil subsidence, or building related claims; or that claims will not arise out of events or circumstances not covered by insurance and/or not subject to effective indemnification agreements with our subcontractors. Changes in warranty reserves are as follows for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Balance at beginning of period $ 12,681 $ 12,421 $ 12,931 $ 13,052 Accruals for warranties issued (a) 2,842 2,921 8,025 7,958 Net changes in liability related to warranties existing in prior periods 536 (294) 558 26 Payments made (3,039) (2,702) (8,494) (8,690) Balance at end of period $ 13,020 $ 12,346 $ 13,020 $ 12,346 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed, and the rates of accrual per home estimated as a percentage of the selling price of the home. Insurance Recoveries The Company has insurance policies that provide for the reimbursement of certain warranty costs incurred above specified thresholds for each period covered. Amounts recorded for anticipated insurance recoveries are reflected within the condensed consolidated statements of income as a reduction of home construction expenses. Amounts not yet received from our insurer are recorded on a gross basis, without any reduction for the associated warranty expense, within accounts receivable on our condensed consolidated balance sheets. Litigation In the normal course of business, we and certain of our subsidiaries are subject to various lawsuits and have been named as defendants in various claims, complaints, and other legal actions, most relating to construction defects, moisture intrusion, and product liability. Certain of the liabilities resulting from these actions are covered in whole or in part by insurance. We cannot predict or determine the timing or final outcome of these lawsuits or the effect that any adverse findings or determinations in pending lawsuits may have on us. In addition, an estimate of possible loss or range of loss, if any, cannot presently be made with respect to certain of these pending matters. An unfavorable determination in any of the pending lawsuits could result in the payment by us of substantial monetary damages that may not be fully covered by insurance. Further, the legal costs associated with the lawsuits and the amount of time required to be spent by management and our Board of Directors on these matters, even if we are ultimately successful, could have a material adverse effect on our financial condition, results of operations, or cash flows. We have an accrual of $ 8.7 million and $8.3 million in other liabilities on our condensed consolidated balance sheets related to litigation matters as of June 30, 2022 and September 30, 2021, respectively. Surety Bonds and Letters of Credit We had outstanding letters of credit and surety bonds of $30.6 million and $272.5 million, r espectively, as of June 30, 2022, related principally to our obligations to local governments to construct roads and other improvements in various developments. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. Certain of our assets are required to be recorded at fair value on a non-recurring basis when events and circumstances indicate that the carrying value of these assets may not be recovered. We review our long-lived assets, including inventory, for recoverability when factors indicate an impairment may exist, but no less than quarterly. Fair value on assets deemed to be impaired is determined based upon the type of asset being evaluated. Fair value of our owned inventory assets, when required to be calculated, is further discussed within Note 5. Due to the substantial use of unobservable inputs in valuing the assets on a non-recurring basis, they are classified within Level 3. No impairments on projects in progress or land held for sale were recognized during the three months ended June 30, 2022. During the nine months ended June 30, 2022, we recognized $0.4 million impairments on land held for sale. No impairments on projects in progress or land held for sale were recognized during the three and nine months ended June 30, 2021. Determining within which hierarchical level an asset or liability falls requires significant judgment. We evaluate our hierarchy disclosures each quarter. The following table presents the period-end balances of assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of June 30, 2022 Deferred compensation plan assets (a) $ — $ 3,083 $ — $ 3,083 Land held for sale (b) $ — $ — $ 250 (c) $ 250 As of September 30, 2021 Deferred compensation plan assets (a) $ — $ 2,730 $ — $ 2,730 (a) Measured at fair value on a recurring basis using market-corroborated inputs. (b) Measured at fair value on a non-recurring basis, refer to Note 5 for further discussion. (c) Amount represents the impairment-date fair value of the land held for sale assets that were impaired during the period indicated. The fair value of cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, other liabilities, and amounts due under the Facility (if outstanding) approximate their carrying amounts due to the short maturity of these assets and liabilities. When outstanding, obligations related to land not owned under option agreements approximate fair value. The following table presents the carrying value and estimated fair value of certain other financial liabilities as of June 30, 2022 and September 30, 2021: As of June 30, 2022 As of September 30, 2021 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes and Term Loan (b) $ 977,325 $ 819,471 $ 983,827 $ 1,046,965 Junior Subordinated Notes (c) 71,753 71,753 70,203 70,203 Total $ 1,049,078 $ 891,224 $ 1,054,030 $ 1,117,168 (a) Carrying amounts are net of unamortized debt issuance costs o r accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax Provision The Company's income tax provision for quarterly interim periods is based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent, or unusual items. Income tax expense from continuing operations was $13.2 million and $29.7 million for the three and nine months ended June 30, 2022, compared to $10.8 million and $22.6 million for the three and nine months ended June 30, 2021. Income tax expense for the nine months ended June 30, 2022 was substantially driven by (1) income from continuing operations, partially offset by (2) the completion of work necessary to claim an additional $8.9 million in energy efficiency tax credits related to homes closed in prior fiscal years, and (3) the discrete impact related to stock-based compensation expense as a result of current period activity. Income tax expense for the nine months ended June 30, 2021 was substantially driven by (1) income from continuing operations, partially offset by (2) the discrete impact related to the closing of a state tax audit, and (3) the discrete impact related to stock-based compensation expense as a result of current period activity. Deferred Tax Assets and Liabilities The Company continues to evaluate its deferred tax assets each period to determine if a valuation allowance is required based on whether it is more likely than not that some portion of these deferred tax assets will not be realized. As of June 30, 2022, management concluded that it is more likely than not that a substantial portion of our deferred tax assets will be realized. As part of our analysis, we considered both positive and negative factors that impact profitability and whether those factors would lead to a change in the estimate of our deferred tax assets that may be realized in the future. At this time, our conclusions on the valuation allowance and Internal Revenue Code Section 382 limitations related to our deferred tax assets remain consistent with the determinations we made during the period ended September 30, 2021, and such conclusions are based on similar company specific and industry factors to those discussed in Note 13 to the audited consolidated financial statements within our 2021 Annual Report. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock-based compensation expense is included in general and administrative expenses in the condensed consolidated statements of operations. Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and nine months ended June 30, 2022 and 2021, respectively. Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Stock-based compensation expense $ 1,983 $ 3,194 $ 6,515 $ 9,254 Stock Options Following is a summary of stock option activity for the nine months ended June 30, 2022: Nine Months Ended June 30, 2022 Shares Weighted Average Outstanding at beginning of period 114,259 $ 17.89 Granted 236 16.58 Exercised (988) 11.32 Expired (86,000) 19.11 Outstanding at end of period 27,507 14.31 Exercisable at end of period 27,271 $ 14.29 As of both June 30, 2022 and September 30, 2021, there was less than $0.1 million of total unrecognized compensation costs related to unvested stock options. The costs remaining as of June 30, 2022 are expected to be recognized over a weighted-average period of 1.69 years . Restricted Stock Awards During the nine months ended June 30, 2022, the Company issued time-based and performance-based restricted stock awards. The time-based restricted shares granted to our non-employee directors vest on the first anniversary of the grant, while the time-based restricted shares granted to our executive officers and other employees generally vest ratably over two Following is a summary of restricted stock activity for the nine months ended June 30, 2022: Nine Months Ended June 30, 2022 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 738,155 486,574 1,224,729 Granted (a) 269,617 246,844 516,461 Vested (552,417) (283,854) (836,271) Forfeited (19,209) (35,007) (54,216) End of period 436,146 414,557 850,703 (a) Each of our performance shares represent a contingent right to receive one share of the Company's common stock if vesting is satisfied at the end of the three-year performance period. Our performance stock award plans provide that any performance shares earned in excess of the target number of performance shares issued may be settled in cash or additional shares at the discretion of the Compensation Committee. In November 2021, we issued 177,759 shares earned above target level based on the performance level achieved under the fiscal 2019 performance-based award plan. As of June 30, 2022 and September 30, 2021, total unrecognized compensation costs related to unvested restricted stock awards w as $8.6 million and $7.2 million, respectively. The costs remaining as of June 30, 2022 are expected to be recognized over a weighted average period of 1.74 years . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted income (loss) per share adjusts the basic income (loss) per share for the effects of any potentially dilutive securities in periods in which the Company has net income and such effects are dilutive under the treasury stock method. Following is a summary of the components of basic and diluted income per share for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands (except per share data) 2022 2021 2022 2021 Numerator: Income from continuing operations $ 54,312 $ 37,142 $ 133,885 $ 73,821 Income (loss) from discontinued operations, net of tax 12 (7) (4) (161) Net income $ 54,324 $ 37,135 $ 133,881 $ 73,660 Denominator: Basic weighted-average shares 30,512 30,022 30,480 29,915 Dilutive effect of restricted stock awards 354 517 319 352 Dilutive effect of stock options 6 23 7 25 Diluted weighted-average shares (a) 30,872 30,562 30,806 30,292 Basic income (loss) per share: Continuing operations $ 1.78 $ 1.24 $ 4.39 $ 2.47 Discontinued operations — — — (0.01) Total $ 1.78 $ 1.24 $ 4.39 $ 2.46 Diluted income (loss) per share: Continuing operations $ 1.76 $ 1.22 $ 4.35 $ 2.44 Discontinued operations — — — (0.01) Total $ 1.76 $ 1.22 $ 4.35 $ 2.43 (a) The following potentially dilutive shares were excluded from the calculation of diluted income (loss) per share as a result of their anti-dilutive effect. Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Stock options 13 12 25 227 Time-based restricted stock 187 — — 1 |
Other Liabilities
Other Liabilities | 9 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Other liabilities include the following as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Customer deposits $ 44,055 $ 28,526 Accrued compensations and benefits 41,222 54,606 Accrued interest 14,972 22,835 Warranty reserve 13,020 12,931 Litigation accruals 8,704 8,325 Income tax liabilities 174 — Other 33,029 25,128 Total $ 155,176 $ 152,351 |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We currently operate in 13 states that are grouped into three homebuilding segments based on geography. Revenues from our homebuilding segments are derived from the sale of homes that we construct and from land and lot sales. Our reportable segments have been determined on a basis that is used internally by management for evaluating segment performance and resource allocations. We have considered the applicable aggregation criteria and have combined our homebuilding operations into three reportable segments as follows: West : Arizona, California, Nevada, and Texas (a) East : Delaware, Indiana, Maryland, New Jersey (b) , Tennessee, and Virginia Southeast : Florida, Georgia, North Carolina, and South Carolina (a) On May 20, 2022, we acquired substantially all of the assets of Imagine Homes, a private San Antonio-based homebuilder. The results of our San Antonio operations are reported herein within our West reportable segment. (b) During our fiscal 2015, we made the decision that we would not continue to reinvest in new homebuilding assets in our New Jersey division; therefore, it is no longer considered an active operation. However, it is included in this listing because the segment information below continues to include New Jersey. Management’s evaluation of segment performance is based on segment operating income. Operating income for our homebuilding segments is defined as homebuilding and land sales and other revenue less home construction, land development, and land sales expense, commission expense, depreciation and amortization, and certain G&A expenses that are incurred by or allocated to our homebuilding segments. The accounting policies of our segments are those described in Note 2 to the consolidated financial statements within our 2021 Annual Report. The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Revenue West $ 324,679 $ 297,073 $ 885,837 $ 812,673 East 112,519 162,156 359,623 413,691 Southeast 89,468 111,703 243,861 322,996 Total revenue $ 526,666 $ 570,932 $ 1,489,321 $ 1,549,360 Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Operating income West $ 65,106 $ 52,295 $ 165,933 $ 128,086 East 20,935 27,437 64,866 61,254 Southeast 14,476 14,981 32,683 40,363 Segment total 100,517 94,713 263,482 229,703 Corporate and unallocated (a) (33,278) (46,020) (100,693) (129,704) Total operating income $ 67,239 $ 48,693 $ 162,789 $ 99,999 (a) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Depreciation and amortization West $ 2,067 $ 1,924 $ 5,476 $ 5,397 East 311 602 1,113 1,648 Southeast 371 628 1,144 1,899 Segment total 2,749 3,154 7,733 8,944 Corporate and unallocated (a) 440 535 1,368 1,550 Total depreciation and amortization $ 3,189 $ 3,689 $ 9,101 $ 10,494 (a) Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Nine Months Ended June 30, in thousands 2022 2021 Capital expenditures West $ 6,353 $ 4,359 East 723 1,334 Southeast 843 987 Corporate and unallocated 3,273 3,639 Total capital expenditures $ 11,192 $ 10,319 The following table presents assets by segment as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Assets West $ 1,026,635 $ 819,317 East 361,148 286,133 Southeast 347,640 296,581 Corporate and unallocated (a) 482,977 676,779 Total assets $ 2,218,400 $ 2,078,810 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued OperationsWe continually review each of our markets in order to refine our overall investment strategy and to optimize capital and resource allocations in an effort to enhance our financial position and to increase stockholder value. This review entails an evaluation of both external market factors and our position in each market and over time has resulted in the decision to discontinue certain of our homebuilding operations. We have classified the results of operations of our discontinued operations separately in the accompanying condensed consolidated statements of operations for all periods presented. There were no material assets or liabilities related to our discontinued operations as of June 30, 2022 or September 30, 2021. Discontinued operations were not segregated in the condensed consolidated statements of cash flows. Therefore, amounts for certain captions in the condensed consolidated statements of cash flows will not agree with the respective data in the condensed consolidated statements of operations. The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Home construction and land sales expenses $ — $ — $ (5) $ 119 Gross profit (loss) — — 5 (119) General and administrative expenses (14) 10 11 88 Income (loss) from discontinued operations before income taxes 14 (10) (6) (207) Expense (benefit) from income taxes 2 (3) (2) (46) Income (loss) from discontinued operations, net of tax $ 12 $ (7) $ (4) $ (161) |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Beazer Homes USA, Inc. and its consolidated subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Our net income is equivalent to our comprehensive income, so we have not presented a separate statement of comprehensive income. In the past, we have discontinued homebu ilding operations in various markets. Results from certain of these exited markets are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for all periods presented (see Note 16 for a further discussion of our discontinued operations). Our fiscal year 2022 began on October 1, 2021 and ends on September 30, 2022. Our fiscal year 2021 began on October 1, 2020 and ended on September 30, 2021. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Accordingly, actual results could differ from these estimates. |
Share Repurchase Program | Share Repurchase Program In May 2022, the Company's Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $50.0 million of its outstanding common stock. This newly authorized program replaced the prior share repurchase program authorized in the first quarter of fiscal 2019 of up to $50.0 million of common stock repurchases, pursuant to which $12.0 million of the capacity remained prior to the replacement of the program. As part of this new program, the C ompany repurchased 175 thousand shares of its common stock for $2.5 million at an average price per share of $14.47 during the three months ended June 30, 2022 through open market transactions. No share repurchases were made during fiscal year 2021. All shares have been retired upon repurchase. The aggregate reduction to stockholders’ equity related to share repurchases duri ng the nine months ended June 30, 2022 was $2.5 million. As of June 30, 2022, the remaining availability of the new share repurchase program was $47.5 million. |
Revenue Recognition | Revenue Recognition We recognize revenue upon the transfer of promised goods to our customers in an amount that reflects the consideration to which we expect to be entitled by applying the following five-step process specified in ASC Topic 606, Revenue from Contracts with Customers . • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met Homebuilding revenue Homebuilding revenue is reported net of any discounts and incentives and is generally recognized when title to and possession of the home are transferred to the buyer at the closing date. The performance obligation to deliver the home is generally satisfied in less than one year from the original contract date. Home sale contract assets consist of cash from home closings held by title companies in escrow for our benefit, typically for less than five days, and are considered accounts receivable. Contract liabilities include customer deposits related to sold but undelivered homes and to taled $44.1 million and $28.5 million as of June 30, 2022 and September 30, 2021, respectively. Of the customer liabilities outstanding as of September 30, 2021, $5.4 million and $23.1 million was recognized in revenue during the three and nine months ended June 30, 2022 upon closing of the related homes. Land sales and other revenue Land sales revenue relates to land that does not fit within our homebuilding programs and strategic plans. Land sales typically require cash consideration on the closing date, which is generally when performance obligations are satisfied. We also provide title examinations for our homebuyers in certain markets. Revenues associated with our title operations are recognized as closing services are rendered and title insurance policies are issued, both of which generally occur as each home is closed. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04). ASU 2020-04 provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This guidance is effective beginning on March 12, 2020, and all entities may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the effect of adopting the new guidance on its consolidated financial statements and related disclosures. |
Fair Value Measurements | As of the dates presented, we had assets on our condensed consolidated balance sheets that were required to be measured at fair value on a recurring or non-recurring basis. We use a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities; • Level 2 – Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly through corroboration with market data; and • Level 3 – Unobservable inputs that reflect our own estimates about the assumptions market participants would use in pricing the asset or liability. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents our total revenue disaggregated by revenue stream: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Homebuilding revenue $ 523,229 $ 566,930 $ 1,477,166 $ 1,538,576 Land sales and other revenue 3,437 4,002 12,155 10,784 Total revenue (a) $ 526,666 $ 570,932 $ 1,489,321 $ 1,549,360 (a) Please see Note 15 for total revenue disaggregated by reportable segment. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosure of non-cash activity | The following table presents supplemental disclosure of non-cash and cash activity as well as a reconciliation of total cash balances between the condensed consolidated balance sheets and condensed consolidated statements of cash flows for the periods presented: Nine Months Ended June 30, in thousands 2022 2021 Supplemental disclosure of non-cash activity: Increase in operating lease right-of-use assets (a) $ 811 $ 2,649 Increase in operating lease liabilities (a) $ 811 $ 2,649 Derecognition of investment in unconsolidated entities (b) $ 3,641 $ — Supplemental disclosure of cash activity: Interest payments $ 60,052 $ 63,878 Income tax payments $ 3,783 $ 2,297 Tax refunds received $ — $ 49 Reconciliation of cash, cash equivalents, and restricted cash: Cash and cash equivalents $ 42,039 $ 358,334 Restricted cash 39,762 24,690 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 81,801 $ 383,024 (a) Represents leases renewed or additional leases commenced during the nine months ended June 30, 2022 and June 30, 2021. |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in unconsolidated joint ventures, total equity and outstanding borrowings | The following table presents the Company's investment in these unconsolidated entities as well as the total equity and outstanding borrowings of these unconsolidated entities as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Investment in unconsolidated entities $ 897 $ 4,464 Total equity of unconsolidated entities $ 1,032 $ 7,316 Total outstanding borrowings of unconsolidated entities $ — $ 12,708 Equity in income from unconsolidated entity activities included in income from continuing operations is as follows for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Equity in income of unconsolidated entities $ 3 $ 313 $ 454 $ 424 |
Owned Inventory (Tables)
Owned Inventory (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | The components of our owned inventory are as follows as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Homes under construction $ 976,590 $ 648,283 Land under development 659,057 648,404 Land held for future development 19,879 19,879 Land held for sale 13,598 9,179 Capitalized interest 115,735 106,985 Model homes 73,992 68,872 Total owned inventory $ 1,858,851 $ 1,501,602 |
Schedule of total owned inventory, by segment | Total owned inventory by reportable segment is presented in the table below as of June 30, 2022 and September 30, 2021: in thousands Projects in Progress (a) Land Held for Future Development Land Held for Sale Total Owned June 30, 2022 West $ 977,567 $ 3,483 $ 12,922 $ 993,972 East 340,673 10,888 — 351,561 Southeast 327,156 5,508 676 333,340 Corporate and unallocated (b) 179,978 — — 179,978 Total $ 1,825,374 $ 19,879 $ 13,598 $ 1,858,851 September 30, 2021 West $ 781,036 $ 3,483 $ 4,478 $ 788,997 East 264,991 10,888 584 276,463 Southeast 269,738 5,508 4,117 279,363 Corporate and unallocated (b) 156,779 — — 156,779 Total $ 1,472,544 $ 19,879 $ 9,179 $ 1,501,602 (a) Projects in progress include homes under construction, land under development, capitalized interest, and model home categories from the preceding table. |
Schedule of inventory impairments and abandonment charges, by reportable segment | The following table presents, by reportable segment, our total impairment and abandonment charges for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Land Held for Sale: West $ — $ — $ 440 $ — Total impairment charges on land held for sale $ — $ — $ 440 $ — Abandonments: West $ — $ — $ 12 $ — East — — 465 Southeast — 231 483 231 Total abandonments charges $ — $ 231 $ 495 $ 696 Total impairment and abandonment charges $ — $ 231 $ 935 $ 696 |
Summary of interests in lot option agreements | The following table provides a summary of our interests in lot option agreements as of June 30, 2022 and September 30, 2021: in thousands Deposits & Non-refundable Pre-acquisition Costs Incurred (a) Remaining As of June 30, 2022 Unconsolidated lot option agreements $ 137,357 $ 819,072 As of September 30, 2021 Unconsolidated lot option agreements $ 114,688 $ 676,149 |
Interest (Tables)
Interest (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate Inventory, Capitalized Interest Costs | The following table presents certain information regarding interest for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Capitalized interest in inventory, beginning of period $ 112,686 $ 113,414 $ 106,985 $ 119,659 Interest incurred 18,728 19,270 55,292 58,517 Interest expense not qualified for capitalization and included as other expense (a) — (212) — (2,781) Capitalized interest amortized to home construction and land sales expenses (b) (15,679) (22,529) (46,542) (65,452) Capitalized interest in inventory, end of period $ 115,735 $ 109,943 $ 115,735 $ 109,943 (a) The amount of interest capitalized depends on the qualified inventory balance, which considers the status of the Company's inventory holdings. Qualified inventory balance includes the majority of homes under construction and land under development but excludes land held for future development and land held for sale. (b) Capitalized interest amortized to home construction and land sales expenses varies based on the number of homes closed during the period and land sales, if any, as well as other factors. |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | The Company's debt, net of unamortized debt issuance costs consisted of the following as of June 30, 2022 and September 30, 2021: in thousands Maturity Date June 30, 2022 September 30, 2021 Senior Unsecured Term Loan September 2022 $ 50,000 $ 50,000 6.750% Senior Notes (2025 Notes) March 2025 227,822 229,555 5.875% Senior Notes (2027 Notes) October 2027 357,255 363,255 7.250% Senior Notes (2029 Notes) October 2029 350,000 350,000 Unamortized debt issuance costs (7,752) (8,983) Total Senior Notes, net 977,325 983,827 Junior Subordinated Notes (net of unamortized accretion of $29,020 and $30,570, respectively) July 2036 71,753 70,203 Revolving Credit Facility February 2024 — — Total debt, net $ 1,049,078 $ 1,054,030 |
Debt Instrument Redemption | For additional redemption features, refer to the table below that summarizes the redemption terms of our Senior Notes: Senior Note Description Issuance Date Maturity Date Redemption Terms 6.750% Senior Notes March 2017 March 2025 Callable at any time prior to March 15, 2020, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after March 15, 2020, callable at a redemption price equal to 105.063% of the principal amount; on or after March 15, 2021, callable at a redemption price equal to 103.375% of the principal amount; on or after March 15, 2022, callable at a redemption price equal to 101.688% of the principal amount; on or after March 15, 2023, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 5.875% Senior Notes October 2017 October 2027 Callable at any time prior to October 15, 2022, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2022, callable at a redemption price equal to 102.938% of the principal amount; on or after October 15, 2023, callable at a redemption price equal to 101.958% of the principal amount; on or after October 15, 2024, callable at a redemption price equal to 100.979% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. 7.250% Senior Notes September 2019 October 2029 On or prior to October 15, 2022, we may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 107.250% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided at least 65% of the aggregate principal amount of the 2029 Notes originally issued remains outstanding immediately after such redemption. Callable at any time prior to October 15, 2024, in whole or in part, at a redemption price equal to 100.000% of the principal amount, plus a customary make-whole premium; on or after October 15, 2024, callable at a redemption price equal to 103.625% of the principal amount; on or after October 15, 2025, callable at a redemption price equal to 102.417% of the principal amount; on or after October 15, 2026, callable at a redemption price equal to 101.208% of the principal amount; on or after October 15, 2027, callable at a redemption price equal to 100.000% of the principal amount, plus, in each case, accrued and unpaid interest. |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lease, Cost | For the three and nine months ended June 30, 2022 and 2021, operating lease expense and cash payments on lease liabilities were as follows: Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Operating lease expense $ 986 $ 1,075 $ 2,964 $ 3,248 Cash payments on lease liabilities $ 1,083 $ 1,161 $ 3,259 $ 3,679 At June 30, 2022 and 2021, the weighted-average remaining lease term and discount rate were as follows: As of June 30, 2022 2021 Weighted-average remaining lease term 4.4 years 4.9 years Weighted-average discount rate 4.45% 4.62% |
Lessee, Operating Lease, Liability, Maturity | The following is a maturity analysis of the annual undiscounted cash flows reconciled to the carrying value of the operating lease liabilities as of June 30, 2022: Fiscal Years Ending September 30, in thousands 2022 (a) $ 1,103 2023 3,799 2024 2,680 2025 2,277 2026 1,643 Thereafter 1,928 Total lease payments (b) 13,430 Less: Imputed interest 1,275 Total operating lease liabilities $ 12,155 ` (a) Remaining lease payments are for the period beginning July 1, 2022 through September 30, 2022. (b) Lease payments excludes $10.3 million legally binding minimum lease payments for an office lease signed but not yet commenced. The related ROU asset and operating lease liability are not reflected on the Company's condensed consolidated balance sheet as of June 30, 2022. |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty reserves | Changes in warranty reserves are as follows for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Balance at beginning of period $ 12,681 $ 12,421 $ 12,931 $ 13,052 Accruals for warranties issued (a) 2,842 2,921 8,025 7,958 Net changes in liability related to warranties existing in prior periods 536 (294) 558 26 Payments made (3,039) (2,702) (8,494) (8,690) Balance at end of period $ 13,020 $ 12,346 $ 13,020 $ 12,346 (a) Accruals for warranties issued are a function of the number of home closings in the period, the selling prices of the homes closed, and the rates of accrual per home estimated as a percentage of the selling price of the home. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on a recurring and non-recurring basis | The following table presents the period-end balances of assets measured at fair value on a recurring basis and the impairment-date fair value of certain assets measured at fair value on a non-recurring basis for each hierarchy level. These balances represent only those assets whose carrying values were adjusted to fair value during the periods presented: in thousands Level 1 Level 2 Level 3 Total As of June 30, 2022 Deferred compensation plan assets (a) $ — $ 3,083 $ — $ 3,083 Land held for sale (b) $ — $ — $ 250 (c) $ 250 As of September 30, 2021 Deferred compensation plan assets (a) $ — $ 2,730 $ — $ 2,730 (a) Measured at fair value on a recurring basis using market-corroborated inputs. (b) Measured at fair value on a non-recurring basis, refer to Note 5 for further discussion. (c) Amount represents the impairment-date fair value of the land held for sale assets that were impaired during the period indicated. |
Schedule of carrying values and estimated fair values of other financial assets and liabilities | The following table presents the carrying value and estimated fair value of certain other financial liabilities as of June 30, 2022 and September 30, 2021: As of June 30, 2022 As of September 30, 2021 in thousands Carrying (a) Fair Value Carrying (a) Fair Value Senior Notes and Term Loan (b) $ 977,325 $ 819,471 $ 983,827 $ 1,046,965 Junior Subordinated Notes (c) 71,753 71,753 70,203 70,203 Total $ 1,049,078 $ 891,224 $ 1,054,030 $ 1,117,168 (a) Carrying amounts are net of unamortized debt issuance costs o r accretion. (b) The estimated fair value for our publicly-held Senior Notes and the Term Loan have been determined using quoted market rates (Level 2). (c) Since there is no trading market for our Junior Subordinated Notes, the fair value of these notes is estimated by discounting scheduled cash flows through maturity (Level 3). The discount rate is estimated using market rates currently being offered on loans with similar terms and credit quality. Judgment is required in interpreting market data to develop these estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of stock-based compensation expense | Following is a summary of stock-based compensation expense related to stock options and restricted stock awards for the three and nine months ended June 30, 2022 and 2021, respectively. Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Stock-based compensation expense $ 1,983 $ 3,194 $ 6,515 $ 9,254 |
Schedule of stock options outstanding | Following is a summary of stock option activity for the nine months ended June 30, 2022: Nine Months Ended June 30, 2022 Shares Weighted Average Outstanding at beginning of period 114,259 $ 17.89 Granted 236 16.58 Exercised (988) 11.32 Expired (86,000) 19.11 Outstanding at end of period 27,507 14.31 Exercisable at end of period 27,271 $ 14.29 |
Schedule of nonvested stock awards activity | Following is a summary of restricted stock activity for the nine months ended June 30, 2022: Nine Months Ended June 30, 2022 Performance-Based Restricted Shares Time-Based Restricted Shares Total Restricted Shares Beginning of period 738,155 486,574 1,224,729 Granted (a) 269,617 246,844 516,461 Vested (552,417) (283,854) (836,271) Forfeited (19,209) (35,007) (54,216) End of period 436,146 414,557 850,703 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Following is a summary of the components of basic and diluted income per share for the periods presented: Three Months Ended June 30, Nine Months Ended June 30, in thousands (except per share data) 2022 2021 2022 2021 Numerator: Income from continuing operations $ 54,312 $ 37,142 $ 133,885 $ 73,821 Income (loss) from discontinued operations, net of tax 12 (7) (4) (161) Net income $ 54,324 $ 37,135 $ 133,881 $ 73,660 Denominator: Basic weighted-average shares 30,512 30,022 30,480 29,915 Dilutive effect of restricted stock awards 354 517 319 352 Dilutive effect of stock options 6 23 7 25 Diluted weighted-average shares (a) 30,872 30,562 30,806 30,292 Basic income (loss) per share: Continuing operations $ 1.78 $ 1.24 $ 4.39 $ 2.47 Discontinued operations — — — (0.01) Total $ 1.78 $ 1.24 $ 4.39 $ 2.46 Diluted income (loss) per share: Continuing operations $ 1.76 $ 1.22 $ 4.35 $ 2.44 Discontinued operations — — — (0.01) Total $ 1.76 $ 1.22 $ 4.35 $ 2.43 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended June 30, Nine Months Ended June 30, in thousands 2022 2021 2022 2021 Stock options 13 12 25 227 Time-based restricted stock 187 — — 1 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other liabilities | Other liabilities include the following as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Customer deposits $ 44,055 $ 28,526 Accrued compensations and benefits 41,222 54,606 Accrued interest 14,972 22,835 Warranty reserve 13,020 12,931 Litigation accruals 8,704 8,325 Income tax liabilities 174 — Other 33,029 25,128 Total $ 155,176 $ 152,351 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | The following tables contain our revenue, operating income, and depreciation and amortization by segment for the periods presented: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Revenue West $ 324,679 $ 297,073 $ 885,837 $ 812,673 East 112,519 162,156 359,623 413,691 Southeast 89,468 111,703 243,861 322,996 Total revenue $ 526,666 $ 570,932 $ 1,489,321 $ 1,549,360 Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Operating income West $ 65,106 $ 52,295 $ 165,933 $ 128,086 East 20,935 27,437 64,866 61,254 Southeast 14,476 14,981 32,683 40,363 Segment total 100,517 94,713 263,482 229,703 Corporate and unallocated (a) (33,278) (46,020) (100,693) (129,704) Total operating income $ 67,239 $ 48,693 $ 162,789 $ 99,999 (a) Corporate and unallocated operating loss includes amortization of capitalized interest, movement in capitalized indirect costs, expenses related to numerous shared services functions that benefit all segments but are not allocated to the operating segments reported above, including information technology, treasury, corporate finance, legal, branding and national marketing, and other amounts that are not allocated to our operating segments. Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Depreciation and amortization West $ 2,067 $ 1,924 $ 5,476 $ 5,397 East 311 602 1,113 1,648 Southeast 371 628 1,144 1,899 Segment total 2,749 3,154 7,733 8,944 Corporate and unallocated (a) 440 535 1,368 1,550 Total depreciation and amortization $ 3,189 $ 3,689 $ 9,101 $ 10,494 (a) Corporate and unallocated depreciation and amortization represents depreciation and amortization related to assets held by our corporate functions that benefit all segments. The following table presents capital expenditures by segment for the periods presented: Nine Months Ended June 30, in thousands 2022 2021 Capital expenditures West $ 6,353 $ 4,359 East 723 1,334 Southeast 843 987 Corporate and unallocated 3,273 3,639 Total capital expenditures $ 11,192 $ 10,319 The following table presents assets by segment as of June 30, 2022 and September 30, 2021: in thousands June 30, 2022 September 30, 2021 Assets West $ 1,026,635 $ 819,317 East 361,148 286,133 Southeast 347,640 296,581 Corporate and unallocated (a) 482,977 676,779 Total assets $ 2,218,400 $ 2,078,810 (a) Primarily consists of cash and cash equivalents, restricted cash, deferred taxes, capitalized interest and indirect costs, and other items that are not allocated to the segments. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Results of Discontinued Operations | The results of our discontinued operations in the condensed consolidated statements of operations for the periods presented were as follows: Three Months Ended Nine Months Ended June 30, June 30, in thousands 2022 2021 2022 2021 Home construction and land sales expenses $ — $ — $ (5) $ 119 Gross profit (loss) — — 5 (119) General and administrative expenses (14) 10 11 88 Income (loss) from discontinued operations before income taxes 14 (10) (6) (207) Expense (benefit) from income taxes 2 (3) (2) (46) Income (loss) from discontinued operations, net of tax $ 12 $ (7) $ (4) $ (161) |
Description of Business (Detail
Description of Business (Details) | Jun. 30, 2022 state region |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states in which home building segments operate | state | 13 |
Number of regions in which entity operates | region | 3 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | May 31, 2022 | Apr. 30, 2022 | |
Accounting Policies [Abstract] | |||||
Authorized amount repurchase of common stock | $ 50,000 | ||||
Remaining authorized repurchase amount | $ 47,500 | $ 47,500 | $ 12,000 | ||
Shares repurchased (in shares) | 175,000 | 0 | |||
Value of shares repurchased | $ 2,500 | ||||
Average price per share repurchased (in USD per share) | $ 14.47 | ||||
Share repurchases | $ 2,527 | $ 2,527 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 526,666 | $ 570,932 | $ 1,489,321 | $ 1,549,360 | |
Customer deposits | 44,055 | 44,055 | $ 28,526 | ||
Contract with customer, liability, revenue recognized | 5,400 | 23,100 | |||
Homebuilding revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 523,229 | 566,930 | 1,477,166 | 1,538,576 | |
Land sales and other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | $ 3,437 | $ 4,002 | $ 12,155 | $ 10,784 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Disclosure of Non-cash Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Cash and Cash Equivalents [Line Items] | |||
Increase in operating lease right-of-use assets | $ 811 | $ 2,649 | |
Increase in operating lease liabilities | 811 | 2,649 | |
Supplemental disclosure of cash activity: | |||
Interest payments | 60,052 | 63,878 | |
Income tax payments | 3,783 | 2,297 | |
Tax refunds received | 0 | 49 | |
Reconciliation of cash, cash equivalents, and restricted cash: | |||
Cash and cash equivalents | 42,039 | 358,334 | $ 246,715 |
Restricted cash | 39,762 | 24,690 | $ 27,428 |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | 81,801 | 383,024 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Cash and Cash Equivalents [Line Items] | |||
Derecognition of investment in unconsolidated entities | $ 3,641 | $ 0 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Equity and Outstanding Borrowings of Unconsolidated Entities and Equity in Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Total equity of unconsolidated entities | $ 856,127 | $ 673,605 | $ 856,127 | $ 673,605 | $ 802,357 | $ 724,884 | $ 633,767 | $ 593,171 |
Total outstanding borrowings of unconsolidated entities | 1,049,078 | 1,049,078 | 1,054,030 | |||||
Equity in income of unconsolidated entities | 3 | $ 313 | 454 | $ 424 | ||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Investment in unconsolidated entities | 897 | 897 | 4,464 | |||||
Total equity of unconsolidated entities | 1,032 | 1,032 | 7,316 | |||||
Total outstanding borrowings of unconsolidated entities | $ 0 | $ 0 | $ 12,708 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) | 9 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | May 19, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Impairment of unconsolidated entity investments | $ 0 | $ 0 | ||
Imagine Homes | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 33% | |||
Financial Guarantee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Outstanding guarantees | $ 0 | $ 0 |
Owned Inventory - Schedule of I
Owned Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||||||
Homes under construction | $ 976,590 | $ 648,283 | ||||
Land under development | 659,057 | 648,404 | ||||
Land held for future development | 19,879 | 19,879 | ||||
Land held for sale | 13,598 | 9,179 | ||||
Capitalized interest | 115,735 | $ 112,686 | 106,985 | $ 109,943 | $ 113,414 | $ 119,659 |
Model homes | 73,992 | 68,872 | ||||
Total owned inventory | $ 1,858,851 | $ 1,501,602 |
Owned Inventory - Narrative (De
Owned Inventory - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 USD ($) home | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) home | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) home | |
Inventory Disclosure [Abstract] | |||||
Number of homes under construction | home | 3,656 | 3,656 | 2,912 | ||
Number of homes under construction, spec homes | home | 936 | 936 | 576 | ||
Total, spec homes | $ 212,800,000 | $ 212,800,000 | $ 116,400,000 | ||
Number of homes under Construction, in-process spec homes | home | 881 | 881 | 542 | ||
In-process spec homes | $ 191,000,000 | $ 191,000,000 | $ 105,200,000 | ||
Number of homes under construction, finished spec homes | home | 55 | 55 | 34 | ||
Finished spec homes | $ 21,800,000 | $ 21,800,000 | $ 11,200,000 | ||
Threshold number of homes below a minimum threshold of profitability | home | 10 | ||||
Impairment of projects in process | 0 | $ 0 | $ 0 | $ 0 | |
Total impairment charges on land held for sale | 0 | 0 | 440,000 | 0 | |
Total abandonments charges | $ 0 | $ 231,000 | $ 495,000 | $ 696,000 |
Owned Inventory - Total Owned I
Owned Inventory - Total Owned Inventory by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Projects in progress | $ 1,825,374 | $ 1,472,544 |
Land held for future development | 19,879 | 19,879 |
Land held for sale | 13,598 | 9,179 |
Total owned inventory | 1,858,851 | 1,501,602 |
Corporate and unallocated | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 179,978 | 156,779 |
Land held for future development | 0 | 0 |
Land held for sale | 0 | 0 |
Total owned inventory | 179,978 | 156,779 |
West | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 977,567 | 781,036 |
Land held for future development | 3,483 | 3,483 |
Land held for sale | 12,922 | 4,478 |
Total owned inventory | 993,972 | 788,997 |
East | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 340,673 | 264,991 |
Land held for future development | 10,888 | 10,888 |
Land held for sale | 0 | 584 |
Total owned inventory | 351,561 | 276,463 |
Southeast | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Projects in progress | 327,156 | 269,738 |
Land held for future development | 5,508 | 5,508 |
Land held for sale | 676 | 4,117 |
Total owned inventory | $ 333,340 | $ 279,363 |
Owned Inventory - Inventory Imp
Owned Inventory - Inventory Impairments and Abandonment Charges, by Reportable Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate Properties [Line Items] | ||||
Total impairment charges on land held for sale | $ 0 | $ 0 | $ 440,000 | $ 0 |
Total abandonments charges | 0 | 231,000 | 495,000 | 696,000 |
Total impairment and abandonment charges | 0 | 231,000 | 935,000 | 696,000 |
West | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total impairment charges on land held for sale | 0 | 0 | 440,000 | 0 |
Total abandonments charges | 0 | 0 | 12,000 | 0 |
East | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | 0 | 0 | 465,000 | |
Southeast | Operating Segments | ||||
Real Estate Properties [Line Items] | ||||
Total abandonments charges | $ 0 | $ 231,000 | $ 483,000 | $ 231,000 |
Owned Inventory - Summary of In
Owned Inventory - Summary of Interests in Lot Option Agreements (Details) - Unconsolidated lot option agreements - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Real Estate Properties [Line Items] | ||
Deposits & Non-refundable Pre-acquisition Costs Incurred | $ 137,357 | $ 114,688 |
Remaining Obligation, Net of Deposits | $ 819,072 | $ 676,149 |
Interest - Schedule of Capitali
Interest - Schedule of Capitalized Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||||
Capitalized interest in inventory, beginning of period | $ 112,686 | $ 113,414 | $ 106,985 | $ 119,659 |
Interest incurred | 18,728 | 19,270 | 55,292 | 58,517 |
Interest expense not qualified for capitalization and included as other expense | 0 | (212) | 0 | (2,781) |
Capitalized interest amortized to home construction and land sales expenses | (15,679) | (22,529) | (46,542) | (65,452) |
Capitalized interest in inventory, end of period | $ 115,735 | $ 109,943 | $ 115,735 | $ 109,943 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2019 | Oct. 31, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||||
Total outstanding borrowings of unconsolidated entities | $ 1,049,078,000 | $ 1,054,030,000 | |||
Unamortized debt issuance costs | $ (7,752,000) | (8,983,000) | |||
6.750% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 6.75% | 6.75% | |||
5.875% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 5.875% | 5.875% | |||
7.250% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 7.25% | 7.25% | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility | $ 0 | 0 | |||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Unsecured Term Loan | 50,000,000 | 50,000,000 | |||
Total outstanding borrowings of unconsolidated entities | 977,325,000 | 983,827,000 | |||
Unamortized debt issuance costs | (7,752,000) | (8,983,000) | |||
Senior Notes | 6.750% | |||||
Debt Instrument [Line Items] | |||||
Total outstanding borrowings of unconsolidated entities | 227,822,000 | 229,555,000 | |||
Senior Notes | 5.875% | |||||
Debt Instrument [Line Items] | |||||
Total outstanding borrowings of unconsolidated entities | 357,255,000 | 363,255,000 | |||
Senior Notes | 7.250% | |||||
Debt Instrument [Line Items] | |||||
Total outstanding borrowings of unconsolidated entities | 350,000,000 | 350,000,000 | |||
Junior Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Total outstanding borrowings of unconsolidated entities | $ 71,753,000 | $ 70,203,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 01, 2022 | Sep. 09, 2019 USD ($) | Jun. 01, 2012 | Jan. 31, 2010 USD ($) | Jun. 30, 2022 USD ($) lender | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) lender | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Oct. 31, 2017 | Mar. 31, 2017 | |
Senior Notes [Abstract] | |||||||||||
Ownership interest In guarantor subsidiaries | 100% | 100% | |||||||||
Gain (loss) on extinguishment of debt, net | $ 86,000 | $ (1,050,000) | $ (78,000) | $ (1,613,000) | |||||||
Junior Subordinated Notes | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Aggregate principle balance of notes | $ 100,800,000 | $ 100,800,000 | |||||||||
Weighted average fixed interest rate of debt | 4.12% | 4.12% | |||||||||
Unamortized accretion | $ 29,020,000 | $ 29,020,000 | $ 30,570,000 | ||||||||
Junior Subordinated Debt, Modified Terms | |||||||||||
Unsecured Debt [Abstract] | |||||||||||
Aggregate principal amount of debt | $ 75,000,000 | ||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Redemption price percentage | 75% | ||||||||||
Annual increase of percentage of principal amount redeemable | 1.785% | ||||||||||
Junior Subordinated Debt, Modified Terms | LIBOR | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Variable rate floor | 4.25% | ||||||||||
Variable rate cap | 9.25% | ||||||||||
Junior Subordinated Debt, Original Terms | |||||||||||
Unsecured Debt [Abstract] | |||||||||||
Aggregate principal amount of debt | 25,800,000 | 25,800,000 | |||||||||
Junior Subordinated Debt, Original Terms | LIBOR | |||||||||||
Junior Subordinated Notes [Abstract] | |||||||||||
Basis spread on variable rate | 2.45% | ||||||||||
Senior Unsecured Term Loans September 2022 | Senior Notes | |||||||||||
Unsecured Debt [Abstract] | |||||||||||
Aggregate principal amount of debt | 50,000,000 | 50,000,000 | |||||||||
Periodic payment | $ 50,000,000 | ||||||||||
Stated interest rate on debt instrument | 4.875% | ||||||||||
6.750% | Senior Notes | |||||||||||
Senior Notes [Abstract] | |||||||||||
Extinguishment of debt | 1,700,000 | 1,700,000 | |||||||||
Gain (loss) on extinguishment of debt, net | $ 100,000 | $ (100,000) | |||||||||
6.750% | Senior Notes | |||||||||||
Unsecured Debt [Abstract] | |||||||||||
Stated interest rate on debt instrument | 6.75% | 6.75% | 6.75% | ||||||||
5.875% | Senior Notes | |||||||||||
Senior Notes [Abstract] | |||||||||||
Extinguishment of debt | $ 6,000,000 | ||||||||||
5.875% | Senior Notes | |||||||||||
Unsecured Debt [Abstract] | |||||||||||
Stated interest rate on debt instrument | 5.875% | 5.875% | 5.875% | ||||||||
Revolving Credit Facility | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Credit facility borrowing capacity | $ 250,000,000 | $ 250,000,000 | |||||||||
Number of lenders | lender | 4 | 4 | |||||||||
Borrowings outstanding | $ 0 | $ 0 | 0 | ||||||||
Letters of credit secured using cash collateral | 1,800,000 | 1,800,000 | 0 | ||||||||
Amount of available borrowings under the secured revolving credit facility | 248,200,000 | 248,200,000 | |||||||||
Letter of Credit | |||||||||||
Line of Credit Facility [Abstract] | |||||||||||
Letters of credit secured using cash collateral | 28,800,000 | 28,800,000 | 21,800,000 | ||||||||
Collateral amount | $ 31,500,000 | $ 31,500,000 | $ 22,300,000 |
Borrowings - Debt Redemption (D
Borrowings - Debt Redemption (Details) - Senior Notes | 9 Months Ended | |||
Jun. 30, 2022 | Sep. 30, 2019 | Oct. 31, 2017 | Mar. 31, 2017 | |
6.750% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 6.75% | 6.75% | ||
6.750% | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
6.750% | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 105.063% | |||
6.750% | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 103.375% | |||
6.750% | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.688% | |||
6.750% | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
5.875% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 5.875% | 5.875% | ||
5.875% | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
5.875% | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 102.938% | |||
5.875% | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.958% | |||
5.875% | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100.979% | |||
5.875% | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
7.250% | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 7.25% | 7.25% | ||
Redemption price percentage | 107.25% | |||
Percentage of principal amount redeemed | 35% | |||
Percentage of principal amount outstanding after redemption | 65% | |||
7.250% | Debt Instrument, Redemption, Period One | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% | |||
7.250% | Debt Instrument, Redemption, Period Two | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 103.625% | |||
7.250% | Debt Instrument, Redemption, Period Three | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 102.417% | |||
7.250% | Debt Instrument, Redemption, Period Four | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 101.208% | |||
7.250% | Debt Instrument, Redemption, Period Five | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage | 100% |
Operating Leases - Lease Expens
Operating Leases - Lease Expense and Cash Payments & Weighted-Average Remaining Lease Term and Discount Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 986 | $ 1,075 | $ 2,964 | $ 3,248 |
Cash payments on lease liabilities | $ 1,083 | $ 1,161 | $ 3,259 | $ 3,679 |
Weighted-average remaining lease term | 4 years 4 months 24 days | 4 years 10 months 24 days | 4 years 4 months 24 days | 4 years 10 months 24 days |
Weighted-average discount rate | 4.45% | 4.62% | 4.45% | 4.62% |
Operating Leases - Maturity Ana
Operating Leases - Maturity Analysis of the Annual Undiscounted Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 1,103 | |
2023 | 3,799 | |
2024 | 2,680 | |
2025 | 2,277 | |
2026 | 1,643 | |
Thereafter | 1,928 | |
Total lease payments | 13,430 | |
Less: Imputed interest | 1,275 | |
Total operating lease liabilities | 12,155 | $ 14,154 |
Liabilities for leases that have not yet commenced | $ 10,300 |
Contingencies - Warranty (Detai
Contingencies - Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Standard product warranty length, minimum | 1 year | |||
Standard product warranty length, maximum | 2 years | |||
Limited product warranty length (up to) | 10 years | |||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 12,681 | $ 12,421 | $ 12,931 | $ 13,052 |
Accruals for warranties issued | 2,842 | 2,921 | 8,025 | 7,958 |
Net changes in liability related to warranties existing in prior periods | 536 | (294) | 558 | 26 |
Payments made | (3,039) | (2,702) | (8,494) | (8,690) |
Balance at end of period | $ 13,020 | $ 12,346 | $ 13,020 | $ 12,346 |
Contingencies - Litigation and
Contingencies - Litigation and Other Matters (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Sep. 30, 2021 |
Loss Contingencies [Line Items] | ||
Accrued amounts for litigation and other contingent liabilities | $ 8.7 | $ 8.3 |
Performance Bonds | ||
Loss Contingencies [Line Items] | ||
Letters of credit secured using cash collateral | 30.6 | |
Outstanding performance bonds | $ 272.5 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||||
Total impairment charges on land held for sale | $ 0 | $ 0 | $ 440,000 | $ 0 |
Impairment of projects in process | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets Measured on a Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 3,083 | $ 2,730 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 3,083 | 2,730 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Land held for sale | 250 | |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Land held for sale | 0 | |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Land held for sale | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Land held for sale | $ 250 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Other Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Sep. 30, 2021 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 1,049,078 | $ 1,054,030 |
Carrying Amount | Senior Notes and Term Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 977,325 | 983,827 |
Carrying Amount | Junior Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 71,753 | 70,203 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 891,224 | 1,117,168 |
Fair Value | Senior Notes and Term Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 819,471 | 1,046,965 |
Fair Value | Junior Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 71,753 | $ 70,203 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Expense from income taxes | $ 13,150 | $ 10,804 | $ 29,685 | $ 22,633 |
Deferred tax assets, tax credit carryforwards | $ 8,900 | $ 8,900 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 1,983 | $ 3,194 | $ 6,515 | $ 9,254 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options Outstanding (Details) - Stock options - $ / shares | 9 Months Ended |
Jun. 30, 2022 | |
Shares | |
Outstanding at beginning of period (shares) | 114,259 |
Granted (shares) | 236 |
Exercised (shares) | (988) |
Expired (shares) | (86,000) |
Outstanding at end of period (shares) | 27,507 |
Exercisable at end of period (shares) | 27,271 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in USD per share) | $ 17.89 |
Granted (in USD per share) | 16.58 |
Exercised (in USD per share) | 11.32 |
Expired (in USD per share) | 19.11 |
Outstanding at end of period (in USD per share) | 14.31 |
Exercisable at end of period (in USD per share) | $ 14.29 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2021 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs related to non-vested stock options award | $ 0.1 | $ 0.1 |
Weighted average period to recognize remaining cost | 1 year 8 months 8 days | |
Time-based restricted stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
Time-based restricted stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Performance-Based Restricted Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Nonvested Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period to recognize remaining cost | 1 year 8 months 26 days | |
Unrecognized compensation costs related to non-vested stock awards | $ 8.6 | $ 7.2 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Awards (Details) - shares | 1 Months Ended | 9 Months Ended |
Nov. 30, 2021 | Jun. 30, 2022 | |
Total Restricted Shares | ||
Shares | ||
Beginning of period (in shares) | 1,224,729 | |
Granted (in shares) | 516,461 | |
Vested (in shares) | (836,271) | |
Forfeited (in shares) | (54,216) | |
End of period (in shares) | 850,703 | |
Performance-Based Restricted Shares | ||
Shares | ||
Beginning of period (in shares) | 738,155 | |
Granted (in shares) | 269,617 | |
Vested (in shares) | (552,417) | |
Forfeited (in shares) | (19,209) | |
End of period (in shares) | 436,146 | |
Award vesting period | 3 years | |
Performance based restricted stock settled in cash payment (in shares) | 177,759 | |
Time-based restricted stock | ||
Shares | ||
Beginning of period (in shares) | 486,574 | |
Granted (in shares) | 246,844 | |
Vested (in shares) | (283,854) | |
Forfeited (in shares) | (35,007) | |
End of period (in shares) | 414,557 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share. Basic and Dilutive (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Income from continuing operations | $ 54,312 | $ 37,142 | $ 133,885 | $ 73,821 |
Income (loss) from discontinued operations, net of tax | 12 | (7) | (4) | (161) |
Net income | $ 54,324 | $ 37,135 | $ 133,881 | $ 73,660 |
Denominator: | ||||
Basic weighted-average shares (in shares) | 30,512 | 30,022 | 30,480 | 29,915 |
Dilutive effect of restricted stock awards (in shares) | 354 | 517 | 319 | 352 |
Dilutive effect of stock options (in shares) | 6 | 23 | 7 | 25 |
Dilutive weighted-average shares (in shares) | 30,872 | 30,562 | 30,806 | 30,292 |
Basic income (loss) per share: | ||||
Continuing operations (in USD per share) | $ 1.78 | $ 1.24 | $ 4.39 | $ 2.47 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | (0.01) |
Total (in USD per share) | 1.78 | 1.24 | 4.39 | 2.46 |
Diluted income (loss) per share: | ||||
Continuing operations (in USD per share) | 1.76 | 1.22 | 4.35 | 2.44 |
Discontinued operations (in USD per share) | 0 | 0 | 0 | (0.01) |
Total (in USD per share) | $ 1.76 | $ 1.22 | $ 4.35 | $ 2.43 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options (in shares) | 13 | 12 | 25 | 227 |
Time-based restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options (in shares) | 187 | 0 | 0 | 1 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Other Liabilities Disclosure [Abstract] | ||||||
Customer deposits | $ 44,055 | $ 28,526 | ||||
Accrued compensations and benefits | 41,222 | 54,606 | ||||
Accrued interest | 14,972 | 22,835 | ||||
Warranty reserve | 13,020 | $ 12,681 | 12,931 | $ 12,346 | $ 12,421 | $ 13,052 |
Litigation accruals | 8,704 | 8,325 | ||||
Income tax liabilities | 174 | 0 | ||||
Other | 33,029 | 25,128 | ||||
Total | $ 155,176 | $ 152,351 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 USD ($) state region | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) state segment region | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Segment Reporting [Abstract] | |||||
Number of states in which home building segments operate | state | 13 | 13 | |||
Number of regions in which entity operates | region | 3 | 3 | |||
Number of reportable segments | segment | 3 | ||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 526,666 | $ 570,932 | $ 1,489,321 | $ 1,549,360 | |
Operating income | 67,239 | 48,693 | 162,789 | 99,999 | |
Depreciation and amortization | 3,189 | 3,689 | 9,101 | 10,494 | |
Capital expenditures | 11,192 | 10,319 | |||
Assets | 2,218,400 | 2,218,400 | $ 2,078,810 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 100,517 | 94,713 | 263,482 | 229,703 | |
Depreciation and amortization | 2,749 | 3,154 | 7,733 | 8,944 | |
Corporate and unallocated | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (33,278) | (46,020) | (100,693) | (129,704) | |
Depreciation and amortization | 440 | 535 | 1,368 | 1,550 | |
Capital expenditures | 3,273 | 3,639 | |||
Assets | 482,977 | 482,977 | 676,779 | ||
West | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 324,679 | 297,073 | 885,837 | 812,673 | |
West | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 65,106 | 52,295 | 165,933 | 128,086 | |
Depreciation and amortization | 2,067 | 1,924 | 5,476 | 5,397 | |
Capital expenditures | 6,353 | 4,359 | |||
Assets | 1,026,635 | 1,026,635 | 819,317 | ||
East | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 112,519 | 162,156 | 359,623 | 413,691 | |
East | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 20,935 | 27,437 | 64,866 | 61,254 | |
Depreciation and amortization | 311 | 602 | 1,113 | 1,648 | |
Capital expenditures | 723 | 1,334 | |||
Assets | 361,148 | 361,148 | 286,133 | ||
Southeast | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 89,468 | 111,703 | 243,861 | 322,996 | |
Southeast | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | 14,476 | 14,981 | 32,683 | 40,363 | |
Depreciation and amortization | 371 | $ 628 | 1,144 | 1,899 | |
Capital expenditures | 843 | $ 987 | |||
Assets | $ 347,640 | $ 347,640 | $ 296,581 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ 12 | $ (7) | $ (4) | $ (161) |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Home construction and land sales expenses | 0 | 0 | (5) | 119 |
Gross profit (loss) | 0 | 0 | 5 | (119) |
General and administrative expenses | (14) | 10 | 11 | 88 |
Income (loss) from discontinued operations before income taxes | 14 | (10) | (6) | (207) |
Expense (benefit) from income taxes | 2 | (3) | (2) | (46) |
Income (loss) from discontinued operations, net of tax | $ 12 | $ (7) | $ (4) | $ (161) |