Beazer Homes Sees FY Positive Net Income;proposes To Issue $300 Mln Senior Notes

(RTTNews) - Beazer Homes USA, Inc. (BZH) said that it expects to report positive net income for fiscal 2014. It expects to report an unrestricted cash balance as of March 31, 2014 of between $285 million and $315 million.

Total new orders for the second-quarter ended March 31 2014 declined 9% to 1,390 units from last year's 1,521 units, while closings for the quarter dropped to 13% to 977 units from 1,127 units in the prior year.

New orders and closings were impacted by an estimated 6% decline in active community count, including a 21% decline in active community count in its West segment. In addition, closings, as well as some new orders, were impacted by severe weather conditions in its East Segment, which comprises approximately 40% of its active community count.

Sales per community per month for the fiscal second quarter were 3.3, compared with 3.4 in the second quarter of 2013.

In a separate press release, Beazer Homes USA announced that it is proposing to issue $300 million aggregate principal amount of Senior Notes due 2019 in a private offering.

The company plans to use the net proceeds from the offering to fund or replenish cash that is expected to be used to fund the redemption of its 9.125% senior notes due 2018.