DELAWARE
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001-12822
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54-2086934
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.001 par value
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BZH
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New York Stock Exchange
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits
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BEAZER HOMES USA, Inc.
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Date:
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January 30, 2020
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By:
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/s/ Robert L. Salomon
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Robert L. Salomon
Executive Vice President and Chief Financial Officer |
•
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Net income from continuing operations of $2.8 million, compared to net income from continuing operations of $7.3 million in fiscal first quarter 2019
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•
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Adjusted EBITDA of $29.4 million, up 9.4%
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•
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Homebuilding revenue of $417.4 million, up 4.1% on a 2.7% increase in home closings to 1,112 and a 1.4% increase in average selling price to $375.4 thousand
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•
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Homebuilding gross margin was 15.1%, flat year-over-year. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 19.8%, up 10 basis points
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•
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SG&A as a percentage of total revenue was 13.3%, down 20 basis points year-over-year
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•
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Unit orders of 1,251, up 28.2% on an increase in sales/community/month to 2.5 and an increase in average community count to 168
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•
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Dollar value of backlog of $732.1 million, up 23.4%
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•
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Unrestricted cash at quarter end was $41.3 million; total liquidity was $261.3 million
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Three Months Ended December 31,
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2019
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2018
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Change*
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New home orders, net of cancellations
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1,251
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976
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28.2
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%
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Orders per community per month
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2.5
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2.0
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21.8
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%
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Average active community count
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168
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160
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5.2
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%
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Actual community count at quarter-end
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166
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162
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2.5
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%
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Cancellation rates
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14.9
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%
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19.8
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%
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-490 bps
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Total home closings
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1,112
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1,083
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2.7
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%
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Average selling price (ASP) from closings (in thousands)
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$
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375.4
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$
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370.3
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1.4
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%
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Homebuilding revenue (in millions)
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$
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417.4
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$
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401.0
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4.1
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%
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Homebuilding gross margin
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15.1
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%
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15.1
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%
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0 bps
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Homebuilding gross margin, excluding impairments and abandonments (I&A)
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15.1
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%
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15.4
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%
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-30 bps
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Homebuilding gross margin, excluding I&A and interest amortized to cost of sales
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19.8
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%
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19.7
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%
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10 bps
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Income from continuing operations before income taxes (in millions)
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$
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2.6
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$
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3.4
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$
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(0.8
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)
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Benefit from income taxes (in millions)
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$
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(0.2
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)
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$
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(3.9
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)
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$
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3.7
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Income from continuing operations (in millions)
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$
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2.8
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$
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7.3
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$
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(4.5
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)
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Basic income per share from continuing operations
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$
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0.09
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$
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0.23
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$
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(0.14
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)
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Diluted income per share from continuing operations
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$
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0.09
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$
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0.23
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$
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(0.14
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)
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Income from continuing operations before income taxes (in millions)
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$
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2.6
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$
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3.4
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$
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(0.8
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)
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Inventory impairments and abandonments (in millions)
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$
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—
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$
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1.0
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$
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(1.0
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)
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Income from continuing operations excluding inventory impairments and abandonments before income taxes (in millions)
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$
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2.6
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$
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4.4
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$
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(1.8
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)
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Income from continuing operations excluding inventory impairments and abandonments after income taxes (in millions)+
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$
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2.8
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$
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8.1
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$
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(5.3
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)
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Net income
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$
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2.7
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$
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7.3
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$
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(4.6
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)
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Land and land development spending (in millions)
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$
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146.0
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$
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121.0
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$
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25.0
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Adjusted EBITDA (in millions)
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$
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29.4
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$
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26.8
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$
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2.5
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LTM Adjusted EBITDA (in millions)
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$
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182.7
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$
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203.1
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$
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(20.4
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)
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Three Months Ended
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December 31,
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in thousands (except per share data)
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2019
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2018
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Total revenue
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$
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417,804
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$
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402,040
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Home construction and land sales expenses
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354,667
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340,378
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Inventory impairments and abandonments
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—
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1,007
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Gross profit
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63,137
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60,655
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Commissions
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16,065
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15,737
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General and administrative expenses
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39,699
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38,642
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Depreciation and amortization
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3,427
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2,770
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Operating income
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3,946
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3,506
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Equity in loss of unconsolidated entities
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(13
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)
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(64
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)
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Other expense, net
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(1,340
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)
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(42
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)
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Income from continuing operations before income taxes
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2,593
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3,400
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Benefit from income taxes
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(211
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)
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(3,922
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)
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Income from continuing operations
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2,804
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7,322
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Loss from discontinued operations, net of tax
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(58
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)
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(11
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)
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Net income
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$
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2,746
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$
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7,311
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Weighted average number of shares:
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Basic
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29,746
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31,801
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Diluted
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30,138
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32,055
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Basic income per share:
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Continuing operations
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$
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0.09
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$
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0.23
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Discontinued operations
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—
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—
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Total
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$
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0.09
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$
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0.23
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Diluted income per share:
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Continuing operations
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$
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0.09
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$
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0.23
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Discontinued operations
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—
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—
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Total
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$
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0.09
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$
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0.23
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Three Months Ended
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December 31,
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Capitalized Interest in Inventory
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2019
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2018
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Capitalized interest in inventory, beginning of period
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$
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136,565
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$
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144,645
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Interest incurred
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21,556
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24,921
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Capitalized interest impaired
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—
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(115
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)
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Interest expense not qualified for capitalization and included as other expense
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(1,442
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(242
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)
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Capitalized interest amortized to home construction and land sales expenses
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(19,669
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)
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(17,323
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)
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Capitalized interest in inventory, end of period
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$
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137,010
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$
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151,886
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in thousands (except share and per share data)
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December 31, 2019
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September 30, 2019
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ASSETS
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Cash and cash equivalents
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$
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41,277
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$
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106,741
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Restricted cash
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18,759
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16,053
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Accounts receivable (net of allowance of $313 and $304, respectively)
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19,439
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26,395
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Income tax receivable
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4,612
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4,935
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Owned inventory
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1,574,280
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1,504,248
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Investments in unconsolidated entities
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3,930
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3,962
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Deferred tax assets, net
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247,382
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246,957
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Property and equipment, net
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26,623
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27,421
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Operating lease right-of-use assets
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12,975
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—
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Goodwill
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11,376
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11,376
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Other assets
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7,451
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9,556
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Total assets
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$
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1,968,104
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$
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1,957,644
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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|
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Trade accounts payable
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$
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110,153
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$
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131,152
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Operating lease liabilities
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$
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15,158
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$
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—
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Other liabilities
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95,451
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109,429
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Total debt (net of debt issuance costs of $12,080 and $12,470, respectively)
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1,208,062
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1,178,309
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Total liabilities
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1,428,824
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1,418,890
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Stockholders’ equity:
|
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|
||||
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)
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—
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—
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Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,383,068 issued and outstanding and 30,933,110 issued and outstanding, respectively)
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31
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31
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Paid-in capital
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852,055
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854,275
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Accumulated deficit
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(312,806
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)
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(315,552
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)
|
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Total stockholders’ equity
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539,280
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|
538,754
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|
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Total liabilities and stockholders’ equity
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$
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1,968,104
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$
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1,957,644
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|
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Inventory Breakdown
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|
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Homes under construction
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$
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580,580
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$
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507,542
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Development projects in progress
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732,380
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738,201
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Land held for future development
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28,531
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28,531
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Land held for sale
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11,443
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12,662
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Capitalized interest
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137,010
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136,565
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Model homes
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84,336
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80,747
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Total owned inventory
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$
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1,574,280
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$
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1,504,248
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Three Months Ended December 31,
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SELECTED OPERATING DATA
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2019
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2018
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Closings:
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West region
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694
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601
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East region
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192
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188
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Southeast region
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226
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294
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Total closings
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1,112
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1,083
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New orders, net of cancellations:
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West region
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737
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519
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East region
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233
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|
201
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Southeast region
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281
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|
256
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Total new orders, net
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1,251
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|
976
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As of December 31,
|
||||||
Backlog units at end of period:
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2019
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2018
|
||||
West region
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1,025
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|
776
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East region
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382
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|
294
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Southeast region
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440
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|
455
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Total backlog units
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1,847
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|
1,525
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Dollar value of backlog at end of period (in millions)
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$
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732.1
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$
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593.1
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in thousands
|
Three Months Ended December 31,
|
||||||
SUPPLEMENTAL FINANCIAL DATA
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2019
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2018
|
||||
Homebuilding revenue:
|
|
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|
||||
West region
|
$
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254,398
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$
|
208,944
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East region
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77,645
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|
87,765
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Southeast region
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85,356
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104,273
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Total homebuilding revenue
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$
|
417,399
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$
|
400,982
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|
||||
Revenue:
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|
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Homebuilding
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$
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417,399
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$
|
400,982
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Land sales and other
|
405
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|
1,058
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|
||
Total revenue
|
$
|
417,804
|
|
|
$
|
402,040
|
|
|
|
|
|
||||
Gross profit:
|
|
|
|
||||
Homebuilding
|
$
|
63,108
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|
|
$
|
60,619
|
|
Land sales and other
|
29
|
|
|
36
|
|
||
Total gross profit
|
$
|
63,137
|
|
|
$
|
60,655
|
|
|
Three Months Ended December 31,
|
||||||||||
in thousands
|
2019
|
|
2018
|
||||||||
Homebuilding gross profit/margin
|
$
|
63,108
|
|
15.1
|
%
|
|
$
|
60,619
|
|
15.1
|
%
|
Inventory impairments and abandonments (I&A)
|
—
|
|
|
|
1,007
|
|
|
||||
Homebuilding gross profit/margin before I&A
|
63,108
|
|
15.1
|
%
|
|
61,626
|
|
15.4
|
%
|
||
Interest amortized to cost of sales
|
19,669
|
|
|
|
17,323
|
|
|
||||
Homebuilding gross profit/margin before I&A and interest amortized to cost of sales
|
$
|
82,777
|
|
19.8
|
%
|
|
$
|
78,949
|
|
19.7
|
%
|
|
Three Months Ended December 31,
|
|
LTM Ended December 31,(a)
|
||||||||||||
in thousands
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income (loss)
|
$
|
2,746
|
|
|
$
|
7,311
|
|
|
$
|
(84,085
|
)
|
|
$
|
92,883
|
|
Benefit from income taxes
|
(228
|
)
|
|
(3,924
|
)
|
|
(33,549
|
)
|
|
(17,530
|
)
|
||||
Interest amortized to home construction and land sales expenses and capitalized interest impaired
|
19,669
|
|
|
17,438
|
|
|
111,172
|
|
|
94,075
|
|
||||
Interest expense not qualified for capitalization
|
1,442
|
|
|
242
|
|
|
4,309
|
|
|
2,132
|
|
||||
EBIT
|
23,629
|
|
|
21,067
|
|
|
(2,153
|
)
|
|
171,560
|
|
||||
Depreciation and amortization and stock-based compensation amortization
|
5,738
|
|
|
4,884
|
|
|
26,139
|
|
|
23,832
|
|
||||
EBITDA
|
29,367
|
|
|
25,951
|
|
|
23,986
|
|
|
195,392
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
24,920
|
|
|
1,935
|
|
||||
Inventory impairments and abandonments (b)
|
—
|
|
|
892
|
|
|
133,819
|
|
|
5,430
|
|
||||
Joint venture impairment and abandonment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
341
|
|
||||
Adjusted EBITDA
|
$
|
29,367
|
|
|
$
|
26,843
|
|
|
$
|
182,725
|
|
|
$
|
203,098
|
|