UpInArms
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Thu Apr-28-05 11:43 AM
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96. Beazer Homes swings to loss |
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http://www.marketwatch.com/news/story.asp?guid=%7B28934099-CC05-4C26-903E-1914E82B9B02%7D&siteid=googleBOSTON (MarketWatch) -- Beazer Homes USA Inc. before markets opened Thursday reported a loss of $84.3 million for the fiscal second quarter ended March 31, compared with a profit of $48.9 million last year.
The Atlanta-based homebuilder said the loss was due to a non-cash goodwill impairment charge of $130.2 million, or $3.22 a share, as well as a $45.0 million, or 69 cents a share charge associated with a class-action settlement for Trinity Homes.
...more...background: Beazer Homes Announces Goodwill Impairment Chargehttp://investor.news.com/Engine?Account=cnet&PageName=NEWSREAD&ID=1904416&Ticker=BZH&SOURCE=20050329005818ATLANTA--(BUSINESS WIRE)--March 29, 2005--Beazer Homes USA, Inc. (BZH - news) (www.beazer.com) and its Board of Directors have concluded that substantially all of the goodwill allocated to certain underperforming operations in Indiana, Ohio, Kentucky, and Charlotte, North Carolina is likely to be impaired. As of March 29, 2005, the affected operations had approximately $131 million of goodwill which was recorded upon the Company's acquisition of Crossmann Communities ("Crossmann") in April 2002. The Company will finalize the exact amount of such impairment and record a non-cash charge in its financial statements filed on Form 10-Q for the quarter ending March 31, 2005 after completing the testing, analysis and review of the forecasts and valuations of the affected entities with its independent third-party valuation specialist. Any non-cash impairment charges will not impact the Company's ability to generate cash flow in the future or its compliance with its debt covenants, nor are such charges tax deductible.
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While the Company remains committed to the Indiana, Ohio, Kentucky and Charlotte, North Carolina markets, they presently suffer from relatively weak local economies and severe price competition, particularly at entry level price points. The Company has put in place several strategies to broaden its target price points and to reduce its investment in and exposure to the entry level segment in these markets.
...more...Class Action Settlement Provides for Remediation of Moisture Problems in Over 2000 Homeshttp://www.cohenandmalad.com/whatsnew.htmOn October 24, the Hamilton Superior Court approved the settlement of a class action lawsuit filed by Cohen & Malad against Trinity Homes, LLC and its parent entity, Beazer Homes Investment Corp., that provides for the remediation of mold and moisture conditions in over 2000 homes constructed by Trinity in Central Indiana. The lawsuit brought claims against Trinity and Beazer based upon defective construction techniques which led to moisture intrusion and the presence of mold in many of those homes. The settlement provides for all of the homes to be inspected for evidence of moisture intrusion and for the remediation of all construction defects that lead to such conditions, all under the supervision of an independent engineering firm selected by Plaintiffs' counsel and at no cost to homeowners. Homeowners will receive a certificate attesting to the completion of the remediation work, signed by the independent engineer, as well as a new warranty on the remediation work. The remediation must be completed pursuant to a court-ordered schedule, and homeowners are entitled to a penalty of $60 per day for each day that any work on their home extends beyond the court-ordered schedule.
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