Beazer Homes USA, Inc. (BZH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1.43 million, or $ 0.04 a share in the quarter, against a net profit of $1 million, or $0.03 a share in the last year period.
Revenue during the quarter went down marginally by 1.51 percent to $339.24 million from $344.45 million in the previous year period.
Cost of revenue for the quarter was almost stable at $285.58 million, when compared with the previous year period. Gross margin for the quarter contracted 90 basis points over the previous year period to 15.82 percent.
Total expenses were $337.97 million for the quarter, up 0.79 percent or $2.67 million from year-ago period. Operating margin for the quarter contracted 228 basis points over the previous year period to 0.38 percent.
Operating income for the quarter was $1.28 million, compared with $9.15 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $21.75 million compared with $29.52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 216 basis points in the quarter to 6.41 percent from 8.57 percent in the last year period.
"Our first quarter results reflected strong increases in both sales pace and average selling price, as well as a modestly higher gross margin," said Allan Merrill, chief executive officer of Beazer Homes. "These improvements allowed us to largely overcome the anticipated reduction in closings and community count, as well as a non-recurring SG&A expense."
Real estate inventory stood at $1,618.54 million as on Dec. 31, 2016. Net receivables were at $52.08 million as on Dec. 31, 2016, up 2.48 percent or $1.26 million from year-ago. Accounts payable increased 6.55 percent or $5.34 million to $86.73 million on Dec. 31, 2016.
Total assets declined 6.44 percent or $150.55 million to $2,188.14 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,544.92 million as on Dec. 31, 2016, down 9.43 percent or $160.80 million from year-ago.
Return on assets was negative at 0.06 percent in the quarter against a positive 0.05 percent in the last year period. Return on equity was negative at 0.22 percent in the quarter against a positive 0.16 percent in the last year period.
Debt comes down
Total debt was at $1,336.48 million as on Dec. 31, 2016, down 11.02 percent or $165.57 million from year-ago. Shareholders equity stood at $643.22 million as on Dec. 31, 2016, up 1.62 percent or $10.24 million from year-ago. As a result, debt to equity ratio went down 30 basis points to 2.08 percent in the quarter.
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