Beazer Homes USA, Inc. (NYSE:BZH) Q4 2019 Earnings Conference Call - Final Transcript

Nov 13, 2019 • 05:00 pm ET


Beazer Homes USA, Inc. (NYSE:BZH) Q4 2019 Earnings Conference Call - Final Transcript


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David Goldberg

the annual run rate of our cash interest expense by nearly $33 million since the end of 2014.

While our success in efficiently growing EBITDA has generated an increase in ROA, this actually understates the improvement in our operations because our total assets include a large but shrinking percentage of assets not generating revenue. As these assets begin generating returns and we improve the profitability of our active assets, we anticipate further ROA improvements.

We have made a great deal of progress deleveraging our balance sheet since 2009, retiring over $550 million of debt. In the fourth quarter, we retired approximately $30 million of debt, bringing our full year total over $50 million. In addition, we retired all $500 million of our 2022 notes. This transaction was funded using 10-year senior notes and an unsecured term loan. In total, our refinancing and repurchasing activities this year will generate $15 million of annual cash interest savings.

Finally, we restructured our term loan to include modest repayments over three years, supporting our goal of reducing debt below $1 billion, while growing our business.

With that, let me turn the call back over to Allan for his conclusion.

Allan P. Merrill

Thanks, David. 2019 was a challenging, but very productive year for Beazer. We demonstrated our ability to respond to a more difficult sales environment, reallocated capital to benefit shareholders, strengthened our balance sheet and realized numerous operational improvements. Together, these efforts have positioned us to generate higher earnings and improved returns in fiscal 2020 even as we retire more debt.

I want to take a minute to thank our team for their ongoing efforts. I'm confident that we have the people, the strategy and the resources to execute our plan over the coming years.

And with that, I'd like to turn the call over to the operator to take us into Q&A.