Beazer Homes USA, Inc. (NYSE:BZH) Q3 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 05:00 pm ET
Good afternoon, and welcome to the Beazer Homes Earnings Conference Call for the quarter ended June 30th, 2020. Today's call is being recorded and a replay will be available on the company's website later today. In addition, PowerPoint slides intended to accompany this call are available in the Investor Relations section of the company's website at www.beazer.com.
At this point, I'll turn the call over to David Goldberg, Vice President and Treasurer. Thank you, sir. You may begin.
Thank you, Mishy. Good afternoon, and welcome to the Beazer Homes conference call discussing our results for the third quarter of fiscal 2020. You should be aware that during this call, we will be making forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which are described in our SEC filings, including our Form 10-Q, which may cause actual results to differ materially from our projections.
Any forward-looking statement speaks only as the date the statement is made and, we do not undertake any obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise. New factors emerge from time to time and it's simply not possible to predict all such factors.
Joining me today are Allan Merrill, our Chairman and Chief Executive Officer; and Bob Salomon, our Executive Vice President and Chief Financial Officer. On our call today, Allan will review highlights from the third quarter, our response to the pandemic and the strength of the new home market, and then recap our strategic objectives for the coming quarters. Bob will cover our third quarter results in greater detail as well as our expectations for the fourth quarter and the full year. I will then come back to provide an update on our land spending and balance sheet, followed by a wrap up by Allan. After our prepared remarks, we will take questions in the time remaining.
I will now turn the call over to Allan.
Thanks, David, and thank you for joining us on our call this afternoon. We generated very strong financial results in the third quarter with increases in both home closings and gross margins leading to nearly 40% growth in adjusted EBITDA. We also reported our highest third quarter net income in over 10 years. From a sales perspective, after weathering a very difficult environment in April, we experienced improved demand in May, which accelerated in June, leading to the best June sales pace we have generated in a decade. Together, these results have positioned us for a strong finish to our fiscal year.
As David outlined, the balance of my comments this afternoon are organized around three topics: our ongoing and evolving response to the pandemic, the environment for new home demand and a quick review of our strategic objectives. Last quarter, we outlined our initial response to the pandemic, highlighted by the priority we place on the health and safety of our employees, customers and trade partners. This continues to be our highest priority,