Beazer receives more than $90 million in asset sale proceeds since June 30

By Jennifer Lanning Drey

Portland, Ore., Sept. 22 - Beazer Homes USA, Inc. has received more than $90 million of cash through asset sales since the close of the third quarter of fiscal 2008, which ended June 30, Allan P. Merrill, chief financial officer of Beazer, said during a Monday presentation at the Deutsche Bank Homebuilding Symposium in New York.

The company remains comfortable with its previous projection that its cash balance will be higher at the close of fiscal 2008 than the $460 million balance it had at Sept. 30, 2007.

"We feel like we've made good progress at improving the cash position of the business and paying down a bit of debt, primarily secured project-related debt," Merrill said.

The company also expects to receive a cash tax refund of more than $150 million in fiscal 2009.

Based on its current land position, Beazer is working to generate cash internally by reducing lots at a faster rate than it replenishes them.

"We feel confident that we have not under-invested to be able to participate in the business in the coming years," Merrill said of the strategy.

"There will be a point, hopefully sooner than later, where sales demand is substantially stronger and that reinvestment ratio may change, but for the foreseeable future we believe we can continue to reinvest in our land at or below the level that we're costing off."

Beazer has dropped land development spending from $1.6 billion in fiscal 2005 to less than $400 million in fiscal 2008.

Merrill also said during the presentation that Beazer does not intend to make any changes to its capital structure until the company has resolved all outstanding issues with the Securities and Exchange Commission and the Department of Justice.

Beazer is an Atlanta-based single-family homebuilder.

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