Beazer Homes Cuts Loss in Half

Atlanta, GA, May 8, 2009--Beazer Homes USA reported a second quarter net loss from continuing operations of $114.9 million, or $2.97 per share, compared to a net loss of $229.8 million, or $5.96 per share, a year ago.

Total revenue was $188.3 million, compared to $405.4 million in the second quarter of the prior year.

Beazer had 814 home closings and new orders of 1,129 homes

The cancellation rate for the second quarter improved to 29.8%, compared to 46.1% in the first quarter of this fiscal year and 33.7% in the second quarter of the prior year.

As of March 31, Beazer had a backlog of 1,280 homes with a sales value of $296.6 million compared to 965 homes with a sales value of $227.2 million as of Dec. 31, and 2,619 homes with a sales value of $672.5 million a year ago.

Ian J. McCarthy, President and Chief Executive Officer, said, "Consistent with historical seasonal patterns, which include our annual February promotion, we generally did see sequential improvement in sales trends compared to our fiscal first quarter and as the second quarter progressed. We are hopeful that historically low interest rates, increased affordability and federal and state home purchase tax credits will entice more prospective buyers to purchase a new home. While we have recently seen some encouraging signs in this respect, we believe it is premature to conclude that a sustainable recovery is yet underway."

Homebuilding revenues declined 53.2% for the quarter due to a 48.1% decline in home closings and a 9.9% decline in the average selling price of homes closed compared to a year ago.