Booking Holdings Inc. Common Stock · NASDAQ:BKNG
Booking Holdings Inc. Common Stock — Q2 2024 Earnings Presentation
33 slides from Booking Holdings Inc. Common Stock's earnings presentation, Aug 1, 2024
Slide 1: Q2 2024 Earnings Presentation
Beazer Homes USA, Inc. Q2 2024 Earnings Presentation Windtree Mt. Juliet, TN © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statement
Slide 3: Introduction
Introduction Allan P. Merrill David I. Goldberg Chairman & Chief Executive Officer Sr. Vice President & Chief Financial Officer © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 3
Slide 4: 2nd Quarter Highlights
2nd Quarter Highlights Orders & Sales Pace Operating Margins Adjusted EBITDA Land Position Community Count Refinanced 2025 senior notes while extending our revolver facility © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 4
Slide 5: Current Operating Environment
Current Operating Environment New & Existing Housing Inventory Units Monthly Mortgage Payment as a % of Income (in millions) 4.50 34% 4.00 32% 30% 3.50 28% 3.00 26% 2.50 24% 22% 2.00 20% 1.50 18% 16% 1.00 14% 0.50 12% - 10% Average Housing Inventory Average Monthly Mortgage Pmt as % of Income (a) Da
Slide 6: Zero Energy Ready Acceleration
Zero Energy Ready Acceleration Balanced Growth • Newly activated and longer-lasting communities have or will be offering Ready Series homes • Ready Series homes in backlog have higher margins than prior series • Accelerating closeout of Star & Plus Series homes will simplify our production and sales
Slide 7: Multi-Year Goals
Multi-Year Goals > 200 Communities Fiscal Year-end 2026 < 30% Net Debt to Net Capitalization Fiscal Year-end 2026 100% Zero Energy Ready Starts Calendar Year-end 2025 © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 7
Slide 8: Growth From More Communities
Growth From More Communities > 200 Active Communities FYE26 200 35 33 180 Double-digit annual community count growth 31 Total Lots Controlled (in thousands) 166 Active Community Count - Period-End 29 160 > 155 by FYE24 27 145 140 25 131 23 121 119 120 21 19 100 17 20k 19k 24k 24k 27k 80 15 Q2 FY20 Q
Slide 9: Balance Sheet Improvement
Balance Sheet Improvement 70% 67.5% 60% 54.8% 52.5% 50% Marginal increase versus PY due to timing of land spend and closings volume 42.7% 43.4% 40% Mid-to-low 30’s by FYE24 30% < 30% Net Debt / Net Cap 20% Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 FYE24 FYE25 FYE26 Net Debt to Net Capitalization See “
Slide 10: Zero Energy Ready Starts
Zero Energy Ready Starts 100% by CYE25 100% 90% 80% ZER Starts as % of Total Period Starts 77% 70% 60% 54% 50% 40% Beazer is the only public builder to 30% commit 100% of starts to ZER 28% 20% 10% 11% 4% 0% 2% © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 10
Slide 11: 2nd Quarter Results
2nd Quarter Results Balanced Growth Results Q2 FY24 YoY Change New Home Orders 1,299 10.0% Sales Pace 3.1 (3.3%) Community Count, Avg 140 13.8% Homebuilding Revenue ($mm) $538.6 (0.6%) Closings 1,044 (1.8%) Average Selling Price ($k) $515.9 1.2% HB Gross Margin %(a) 21.7% (30 bps) SG&A as % of Total
Slide 12: 3rd Quarter Expectations
3rd Quarter Expectations Metric Expectations Sales Pace >3.0 Community Count, Ending ~150 Closings 1,150 – 1,200 Average Selling Price ~$505k HB Gross Margin %(a) ~20.0% SG&A as % of Total Revenue ~11.5% Adjusted EBITDA >$50MM Interest Amort. % of HB Revenue Low 3’s Effective Tax Rate <12% Diluted E
Slide 13: Fiscal 2024 Expectations
Fiscal 2024 Expectations Metric Expectations Community Count, ending(a) Up ~15% Closings >4,750 Average Sales Price ~$510k HB Gross Margin %(b) >21.0% SG&A as % of Total Revenue ~11% Adjusted EBITDA >$260MM Effective Tax Rate ~15% Diluted EPS – Cont. Ops. >$4.50 Return on Equity Double Digit Book Va
Slide 14: Fiscal 2025 Expectations
Fiscal 2025 Expectations Book Value Community Count Significant Accretion Growth Revenue Growth (versus prior year) Strong Returns Zero Energy Improved Gross Ready Transition Margins (versus 2nd half of FY24) © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 14
Slide 15: Maturity Schedule
Maturity Schedule $500 Net Debt / Net Cap(a) 43.4% $ in millions Net Debt / Adj. EBITDA 3.4x $400 $300 $300 Total liquidity of ~$433 million $200 $357 $350 $33 $250 $100 $133 $75 $- Unrestricted Cash Restricted Cash - LC/Escrow Undrawn Revolver Senior Unsecured Debt Junior Debt - Net of Accretion (a
Slide 16: Land Investment
Land Investment $460 60% 57% $410 53% 52% Land Acquisition and Development Spend ($ in millions) 52% 50% $360 Total Active Lots Controlled by Option $310 LTM Land Investment >$740MM – Largest investment in over a decade 40% $260 $214 $210 $199 $198 30% $160 $65 $132 $62 $68 20% $110 $48 $149 $137 $6
Slide 17: Book Value Per Share Growth
Book Value Per Share Growth $40.00 $37.31 $35.00 $32.64 $30.00 $26.03 $25.00 $20.97 $20.00 $18.26 $15.00 $10.00 $5.00 $- Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Homebuilding Assets DTA Diluted weighted-average shares outstanding at period-end used for all per share calculations Balances as of 3/31 u
Slide 18: Wrap-Up
Wrap-Up Q2 FY24 results • Growing Community Count • Higher New Home Orders • Solid Profitability FY24 Expectations • Double-Digit Return On Equity • Further Community Count Growth Progress Towards Multi-Year Goals • > 200 Communities ~ FYE26 • < 30% Net Debt to Net Capitalization ~ FYE26 • 100% Zero
Slide 19: Appendix
Appendix © Beazer Homes – Confidential and Proprietary – Distribution Prohibited 19
Slide 20: Q2 Recognition
Q2 Recognition Commitment to Our Employees “Through the years, we’ve continued to raise the bar on company culture through industry-leading benefits, training and development, and other initiatives that create a valuable employee experience. Those changes are made possible through continuous dialogu
Slide 21: Fisher House Foundation
Fisher House Foundation Beazer Homes, alongside our partners, proudly announced the donation of $1.9 million to Fisher House Foundation in February. This substantial gift marks a profound commitment to supporting military and veteran families in times of need. © Beazer Homes – Confidential and Propr
Slide 22: Zero Energy Ready Homes
Zero Energy Ready Homes A DOE Zero Energy Ready Home® is a high-performance home that is so energy efficient that a renewable energy system could offset most or all the home's annual energy use. Each DOE Zero Energy Ready Home meets rigorous efficiency and performance criteria. • Homeowner Benefits
Slide 23: SG&A
SG&A $61.6 14% $61.0 $59.6 $60 $55.2 11.9% 12% 11.4% 11.5% 11.5% 10.7% $50 10% $40 8% $30 6% 12.0% 12.2% 11.0% 11.2% 11.5% $20 4% $10 2% $- Q3 Q4 Q1 Q2 0% FY23 FY24 Q2 Q2 Q2 Q2 Q2 FY20 FY21 FY22 FY23 FY24 SG&A Per Closing - LTM SG&A % - Quarterly SG&A % - LTM $ in thousands © Beazer Homes – Confiden
Slide 24: Cancellation Rates
Cancellation Rates 20% 19% 17% 16% 16% 15% 12% 12% 10% 10% 10% 7% 6% 5% 0% Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 (a) (a) Cancellation Rate Cancellation Rate (% of Backlog) (a) Cancellation Rate as a % of Backlog is calculated using the quarter's beginning backlog units © Beazer Homes – Confidentia
Slide 25: Specs per Community
Spec Homes 1,200 20 1,084 18 903 1,000 16 892 649 14 775 787 800 Specs per Community 629 Spec Homes 725 12 600 10 455 7 8 7 7 400 368 5 6 3 4 200 243 181 2 158 87 50 - - Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Q2 FY24 Completed Under Construction Per Community Note: Spec count as of each quarter end include
Slide 26: Segment ASP & Margins
Segment ASP & Margins ($ in thousands) Q2 FY23 Q2 FY24 Change in Change in Q2 FY23 Q2 FY24 Change in ASP ASP ASP ($) ASP (%) Closings Closings Mix West $521.3 $517.0 ($4.3) (0.8%) 59.4% 63.9% 4.5% East $507.9 $519.2 $11.3 2.2% 22.2% 20.6% (1.6%) Southeast $475.4 $507.0 $31.6 6.6% 18.4% 15.5% (2.9%)
Slide 27: Q2 Results
Q2 Results $ in millions (except ASP) Q2 FY23 Q2 FY24 ∆(d) Profitability Total Revenue $ 543.9 $ 541.5 (0.4%) Adjusted EBITDA(a) $ 62.1 $ 58.8 ($3.3) Net Income - Cont. Ops. $ 34.7 $ 39.2 $4.5 Unit Activity New Home Orders 1,181 1,299 10.0% Closings 1,063 1,044 (1.8%) Average Selling Price ($k) $ 50
Slide 28: Backlog Detail
Backlog Detail Q2 FY23 Q2 FY24 Quarter Ending Backlog (units) 1,858 2,046 Quarter Ending Backlog ($ in millions) $ 987.2 $ 1,075.1 ASP in Backlog ($ in thousands) $ 531.3 $ 525.5 Quarter Beg. Backlog 1,740 1,791 Scheduled to Close in Future Qtrs. (811) (824) Backlog Scheduled to Close in the Qtr. 92
Slide 29: Non-GAAP Homebuilding Gross Margin Reconciliation
Non-GAAP Homebuilding Gross Margin Reconciliation Three Months Ended March 31, 2024 HB Gross HB Gross Mar HB Gross HB Gross Profit gin Impairments & Profit Margin Interest excluding excluding HB Gross HB Gross Abandonments excluding excluding Amortized to I&A and I&A and ($ in thousands) Profit Marg
Slide 30: Non-GAAP Adjusted EBITDA Reconciliation
Non-GAAP Adjusted EBITDA Reconciliation Three Months Ended March 31, 2024 LTM Ended March 31,2024(a) ($ in thousands) 2023 2024 24 vs 23 2023 2024 24 vs 23 Net income $ 34,707 $ 39,171 $ 4,464 $ 200,185 $ 160,472 $ (39,713) Expense from income taxes 5,092 6,739 1,647 45,961 22,631 (23,330) Interest
Slide 31: Non-GAAP Net Debt to Net Capitalization Reconciliation
Non-GAAP Net Debt to Net Capitalization Reconciliation ($ in thousands) As of March 31, 2024 As of March 31, 2023 Total debt $ 1,023,311 $ 985,220 Stockholders' equity 1,161,577 998,985 Total capitalization $ 2,184,888 $ 1,984,205 Total debt to total capitalization ratio 46.8 % 49.7 % Total debt $ 1
Slide 32: Beazer Tax Benefits
Beazer Tax Benefits FY23 FY24 - FY26 FY27 - FY33(a) Building industry-leading, energy efficient homes provides tax benefits: Energy Prior tax code – $2K Home Efficiency Current tax code (Energy Star) – $2.5K SFD Current tax code (DOE Zero Energy Ready) – $5K SFD Credits < 15% > 15% & < 20% < 17% GAA
Slide 33: Deferred Tax Assets - Summary
Deferred Tax Assets - Summary ($ in millions) March 31, 2023 March 31, 2024 Deferred Tax Assets $ 173.0 $ 163.0 Valuation Allowance $ (25.4) $ (30.4) Net Deferred Tax Assets $ 147.6 $ 132.6 As of March 31, 2024, our conclusions on whether we are more likely than not to realize all of our federal tax