The First Time Homebuyer Tax Credit of 2010 impacted the results of yet another builder, as Beazer Homes reported 1,194 orders for new homes in the first quarter of 2011, a 26.7% drop from the first quarter of 2010. Total home closings from continued operations were 573, a 31.1% decrease from the prior year.
Revenue from continuing operations for the quarter was $127.5 million, compared with $192.5 million in the same period a year ago. The Atlanta-based company recorded a net loss of $54.6 million. For the prior year, Beazer posted net income of $5.3 million.
The home builder’s total backlog was 1,416 homes, with a sales value of $339.6 million compared with 1,781 homes, with a sales value of $394.5 million as of March 31, 2010.
"As expected, year-over-year comparisons were unfavorably impacted this quarter by the First Time Homebuyer Tax Credit, which pulled forward sales volumes into the second quarter of 2010," said Ian McCarthy, president and CEO of Beazer Homes. "However, we did see seasonal improvement with orders and gross margins up over the first quarter of fiscal 2011. We are hopeful that the latest improvements in employment will help lift consumer confidence in the coming quarters, which is necessary for any significant recovery in housing to occur."
Beazer operates in 16 states: Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.