NEW YORK -- Beazer Homes USA Inc. posted a quarterly loss Thursday as the builder took charges for inventory and goodwill impairments and abandonment of land option contracts.
The company, which is facing a deteriorating U.S. housing market and federal investigations into lending practices, saw its shares fall to their lowest level since 2001.
For the third quarter ended June 30, Beazer posted a net loss of $123.0 million, or $3.20 per share, compared with a year-earlier profit of $102.6 million, or $2.37 per share.
The latest quarter's results included charges of $188.5 million. A substantial portion of the charges relate to the write-down of the value of operations in Northern California, Nevada and Florida, where housing demand has seen a steep decline as lending requirements tighten and the number of homes on the market have soared.
Revenue fell 37 percent to $761.0 million, as the number of homes sold during the quarter fell 36 percent to 2,666 homes.
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Would-be home buyers canceled their orders at the rate of 36 percent, higher than the 29 percent in the prior quarter.
New orders for homes fell 30 percent in the quarter to 3,055.
"Most housing markets across the country continue to be characterized by an oversupply of both new and resale home inventory, reduced levels of consumer demand for new homes and aggressive price competition among home builders," Chief Executive Officer Ian McCarthy said in a statement.
"These factors, together with a pronounced credit tightening in the mortgage markets, particularly for credit-challenged home buyers, are likely to lead to continued difficult market conditions for Beazer Homes and other home builders," he said.
Beazer also said it has entered into a new, four-year $500 million revolving credit facility, replacing its existing $1 billion credit facility, which was scheduled to mature in August 2009. The new facility can be expanded to $1 billion, under certain conditions.
Earlier this week, Beazer said that the Securities and Exchange Commission raised its informal inquiry into violations of securities laws at the company to a formal investigation, a move that gives investigators subpoena power.
Earlier this year, Beazer said it was the subject of several lawsuits and a U.S. Attorney's investigation into practices related to its mortgage-origination business.
The investigation began about the time the Charlotte Observer reported on March 18 that Beazer was being investigated by federal housing officials for questionable loans arranged by the mortgage unit for buyers in a North Carolina development.
Last month, Beazer said it fired its chief accounting officer, Michael Rand, due to violations of the company's ethics policy stemming from attempts to destroy documents.
Although the company's audit committee is also looking into the matter and Beazer has pledged to fully cooperate with authorities, the investigations could result in the payment of criminal or civil fines, or other penalties, it said.
Beazer shares fell 3 percent, or 52 cents, to $16.52 in early trading on the New York Stock Exchange, after falling as much as 5 percent shortly after the opening bell.
Year to date, Beazer shares are down 64 percent more severely than the 34 percent drop by the sector in general as measured by the Dow Jones U.S. Home Construction Index .
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