Embattled Beazer Homes has suspended its stock dividend and lopped off a quarter of its headcount.
On top of those moves, the embattled homebuilder said it will take a $230 million charge in the fourth quarter to abandon land-option contracts, recognize inventory impairments, and record impairments and land-option abandonments in joint ventures.
Further, the company said it is evaluating the recoverability of its goodwill, which may result in additional impairments.
Beazer previously announced it will restate its financials for the fiscal years 2004 through 2006 and quarterly periods of fiscal 2006 and 2007 and that it won’t be able to report results on time for the fourth quarter and fiscal year 2007. On Monday evening, however, it reported preliminary unaudited operating data.
The company has received default waivers under its revolving credit facility and two secured credit facilities because of its decision to restate the financials.
Beazer did report that it significantly increased its cash position during its fiscal fourth quarter. At September 30, it had a cash balance of $459.5 million, up from $128.8 million at June 30.
The company subsequently repaid about $75 million in secured debt, pledged $107 million to collateralize its outstanding letters of credit, and paid a consent fee to senior noteholders and related expenses totaling $21 million.