The Real Deal Miami

Homebuilder’s losses widen

December 03, 2008 10:40AM

Homebuilder Beazer Homes USA said its fiscal fourth-quarter loss more
than tripled from a year ago and it expects to lose money throughout
2009. The company doesn’t report results in individual markets, but
Beazer is active in Florida. New orders rose 10 percent to 1,083 homes,
driven largely by a lower cancellation rate of 46 percent during the
period, compared to 68 percent a year ago. But
completed sales contracts plunged 38 percent year-over-year to 2,441
homes. Closed contracts fell in all the regions where Beazer operates,
but the sharpest declines were in the Southeast and in markets the
builder has begun to exit, such as Columbus, Ohio; Denver; and Fresno,
Calif. At the end of the quarter, Beazer’s backlog totaled 1,358 homes
with a sales value of $326.6 million.