Beazer Homes USA, Inc. (NYSE:BZH) (www.beazer.com) today announced its financial results for the three and nine months ended June 30, 2021.

"We had a very successful third quarter, driven by strong operational execution and continued strength in the housing market," said Allan P. Merrill, the company's Chairman and Chief Executive Officer. "We generated significant gains in operating margin and adjusted EBITDA, leading to quarterly net income that was more than double the same period last year. At the same time, we grew our total active lot position while continuing to reduce leverage."

Commenting on fiscal 2021 full-year expectations, Mr. Merrill said, "With our outstanding performance in the third quarter and our confidence in fourth quarter results, we now expect fiscal 2021 earnings per share to be above $3.25."

Looking at fiscal 2022, Mr. Merrill concluded, "We are positioned to generate double-digit growth in earnings per share for shareholders while expanding our ESG activities to create durable value for all of our stakeholders."

Beazer Homes Fiscal Third Quarter 2021 Highlights and Comparison to Fiscal Third Quarter 2020

Net income from continuing operations of $37.1 million, or $1.22 per diluted share, compared to net income from continuing operations of $15.3 million, or $0.51 per diluted share, in fiscal third quarter 2020
Adjusted EBITDA of $78.8 million, up 45.9%
Homebuilding revenue of $566.9 million, up 6.5% on a 5.5% increase in average selling price to $411.4 thousand and a 0.9% increase in home closings to 1,378
Homebuilding gross margin was 20.2%, up 320 basis points. Excluding impairments, abandonments and amortized interest, homebuilding gross margin was 24.2%, up 300 basis points
SG&A as a percentage of total revenue was 11.1%, down 60 basis points year-over-year
Net new orders of 1,199, down 12.6% on a 18.6% increase in orders/community/month to 3.2 and a 26.3% decrease in average community count to 123
Dollar value of backlog of $1,354.6 million, up 53.1%
Unrestricted cash at quarter end was $358.3 million; total liquidity was $608.3 million

The following provides additional details on the Company's performance during the fiscal third quarter 2021:

Profitability. Net income from continuing operations was $37.1 million, generating diluted earnings per share of $1.22. Third quarter adjusted EBITDA of $78.8 million was up $24.8 million year-over-year. The increase in profitability was primarily driven by higher revenue, homebuilding gross margin and improved SG&A leverage.

Orders. Net new orders for the third quarter decreased to 1,199, down 12.6% from the prior year. The decrease in net new orders was driven by a 26.3% decrease in average community count to 123, partially offset by a 18.6% increase in sales pace to 3.2 orders per community per month, up from 2.7 in the previous year. In a number of communities, we proactively limited sales pace to align with the pace of production, optimize margins and ensure a positive customer experience. The cancellation rate for the quarter was 10.9%, an improvement of 1,020 basis points year-over-year.

Backlog. The dollar value of homes in backlog as of June 30, 2021 increased 53.1% to $1,354.6 million, representing 3,124 homes, compared to $884.9 million, representing 2,237 homes, at the same time last year. The average selling price of homes in backlog was $433.6 thousand, up 9.6% year-over-year.

Homebuilding Revenue. Third quarter homebuilding revenue was $566.9 million, up 6.5% year-over-year. The increase in homebuilding revenue was driven by a 5.5% increase in the average selling price to $411.4 thousand and a 0.9% increase in home closings to 1,378 homes.

Homebuilding Gross Margin. Homebuilding gross margin (excluding impairments, abandonments and amortized interest) was 24.2% for the third quarter, up 300 basis points year-over-year, driven primarily by lower sales incentives and pricing increases. Gross margin was up across each of our geographic segments.

SG&A Expenses. Selling, general and administrative expenses as a percentage of total revenue was 11.1% for the quarter, down 60 basis points year-over-year as a result of the Company's continued focus on overhead cost management while driving revenue growth.

Liquidity. At the close of the third quarter, the Company had approximately $608.3 million of available liquidity, including $358.3 million of unrestricted cash and a fully undrawn revolving credit facility capacity of $250.0 million.

Debt Repurchases. The Company repurchased $14.0 million of its outstanding 5.875% unsecured Senior Notes due October 2027 at an average price of $106.545 per $100 principal amount.

Commitment to Net Zero Energy Ready

Reflecting our continued leadership and commitment to energy efficiency, during the quarter, Brian Shanks, Beazer's Manager of National Accounts and Governmental Affairs, was named to the International Code Council (ICC) Residential Energy Code Consensus Committee created to lead development of future energy codes. The new committee will begin work this summer on developing the 2024 International Energy Conservation Code (IECC).

In December 2020, Beazer became the first national builder to publicly commit to ensuring that by the end of 2025 every home we build will be Net Zero Energy Ready. Net Zero Energy Ready means that each home will have a gross HERS® index score (before any benefit of renewable energy production) of 45 or less, and homeowners will be able to achieve net zero energy consumption by attaching a properly sized renewable energy system.

Summary results for the three and nine months ended June 30, 2021 are as follows:

	Three Months Ended June 30,
	2021			2020			Change*
New home orders, net of cancellations		1,199			1,372			(12.6	)%
Orders per community per month		3.2			2.7			18.6	%
Average active community count		123			167			(26.3	)%
Actual community count at quarter-end		120			164			(26.8	)%
Cancellation rates		10.9	%		21.1	%		(1,020	) bps

Total home closings		1,378			1,366			0.9	%
Average selling price (ASP) from closings (in thousands)	$	411.4		$	389.8			5.5	%
Homebuilding revenue (in millions)	$	566.9		$	532.5			6.5	%
Homebuilding gross margin		20.2	%		17.0	%		320	bps
Homebuilding gross margin, excluding impairments and abandonments (I&A)		20.3	%		17.1	%		320	bps
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales		24.2	%		21.2	%		300	bps

Income from continuing operations before income taxes (in millions)	$	47.9		$	20.3		$	27.7
Expense from income taxes (in millions)	$	10.8		$	5.0		$	5.8
Income from continuing operations, net of tax (in millions)	$	37.1		$	15.3		$	21.9
Basic income per share from continuing operations	$	1.24		$	0.51		$	0.73
Diluted income per share from continuing operations	$	1.22		$	0.51		$	0.71

Income from continuing operations before income taxes (in millions)	$	47.9		$	20.3		$	27.7
Loss on debt extinguishment (in millions)	$	(1.1	)	$	—		$	(1.1	)
Inventory impairments and abandonments (in millions)	$	(0.2	)	$	(2.3	)	$	2.0
Restructuring and severance charges	$	—		$	(1.4	)	$	1.4
Income from continuing operations excluding loss on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges before income taxes (in millions)^(a)	$	49.2		$	24.0		$	25.2
Income from continuing operations excluding loss on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges after income taxes (in millions)^(b)	$	38.0		$	17.6		$	20.4

Net income	$	37.1		$	15.2		$	21.9

Land and land development spending (in millions)	$	143.0		$	55.7		$	87.3

Adjusted EBITDA (in millions)	$	78.8		$	54.0		$	24.8
LTM Adjusted EBITDA (in millions)	$	263.7		$	209.4		$	54.4

*	Change and totals are calculated using unrounded numbers.
(a)	Management believes that this measure assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating the differences in companies' respective level of loss on debt extinguishment, impairments/abandonments, and restructuring and severance charges. This measure should not be considered an alternative to income from continuing operations before income taxes determined in accordance with GAAP as an indicator of operating performance.
(b)	For the three months ended June 30, 2021, loss on debt extinguishment and inventory impairments and abandonments were tax-effected at the effective tax rate of 24.0%. For the three months ended June 30, 2020, inventory impairments and abandonments and restructuring and severance charges were tax-effected at the effective tax rate of 26.4%.
"LTM" indicates amounts for the trailing 12 months.

	Nine Months Ended June 30,
	2021			2020			Change*
New home orders, net of cancellations		4,495			4,284			4.9	%
LTM orders per community per month		4.0			2.9			37.9	%
Cancellation rates		11.0	%		17.3	%	$	(630	) bps

Total home closings		3,880			3,755			3.3	%
ASP from closings (in thousands)	$	396.5		$	382.9			3.6	%
Homebuilding revenue (in millions)	$	1,538.6		$	1,437.9			7.0	%
Homebuilding gross margin		18.7	%		16.1	%		260	bps
Homebuilding gross margin, excluding I&A		18.7	%		16.2	%		250	bps
Homebuilding gross margin, excluding I&A and interest amortized to cost of sales		22.9	%		20.7	%		220	bps

Income from continuing operations before income taxes (in millions)	$	96.5		$	37.6		$	58.8
Expense from income taxes (in millions)	$	22.6		$	8.9		$	13.7
Income from continuing operations, net of tax (in millions)	$	73.8		$	28.7		$	45.1
Basic income per share from continuing operations	$	2.47		$	0.96		$	1.51
Diluted income per share from continuing operations	$	2.44		$	0.95		$	1.49

Income from continuing operations before income taxes (in millions)	$	96.5		$	37.6		$	58.8
Loss on debt extinguishment (in millions)	$	(1.6	)	$	—		$	(1.6	)
Inventory impairments and abandonments (in millions)	$	(0.7	)	$	(2.3	)	$	1.6
Restructuring and severance charges	$	—		$	(1.4	)	$	1.4
Income from continuing operations excluding loss on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges before income taxes (in millions)^(a)	$	98.8		$	41.3		$	57.5
Income from continuing operations excluding loss on debt extinguishment, inventory impairments and abandonments, and restructuring and severance charges after income taxes (in millions)^(b)	$	75.6		$	31.4		$	44.2

Net income	$	73.7		$	28.5		$	45.1

Land and land development spending (in millions)	$	349.9		$	324.7		$	25.2

Adjusted EBITDA (in millions)	$	186.6		$	127.3		$	59.4

*	Change and totals are calculated using unrounded numbers.
(a)	Management believes that this measure assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating the differences in companies' respective level of loss on debt extinguishment, impairments/abandonments, and restructuring and severance charges. This measure should not be considered an alternative to income from continuing operations before income taxes determined in accordance with GAAP as an indicator of operating performance.
(b)	For the nine months ended June 30, 2021, loss on debt extinguishment and inventory impairments and abandonments were tax-effected at the effective tax rate of 24.0%. For the nine months ended June 30, 2020, inventory impairments and abandonments and restructuring and severance charges were tax-effected at the effective tax rate of 26.4%
"LTM" indicates amounts for the trailing 12 months.

	As of June 30,
	2021		2020		Change
Backlog units		3,124		2,237	39.7	%
Dollar value of backlog (in millions)	$	1,354.6	$	884.9	53.1	%
ASP in backlog (in thousands)	$	433.6	$	395.6	9.6	%
Land and lots controlled		19,761		18,093	9.2	%

Conference Call

The Company will hold a conference call on July 29, 2021 at 5:00 p.m. ET to discuss these results. Interested parties may listen to the conference call and view the Company's slide presentation on the "Investor Relations" page of the Company's website, www.beazer.com. In addition, the conference call will be available by telephone at 800-475-0542 (for international callers, dial 517-308-9429). To be admitted to the call, enter the pass code "8571348". A replay of the conference call will be available, until 10:00 PM ET on August 6, 2021 at 800-391-9853 (for international callers, dial 203-369-3269) with pass code "3794."

About Beazer Homes

Headquartered in Atlanta, Beazer Homes (NYSE:BZH) is one of the country's largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and more comfort from the moment you move in – saving you money every month. With Beazer's Choice Plans™, you can personalize your primary living areas – giving you a choice of how you want to live in the home, at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, which will save you thousands over the life of your loan.

We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit beazer.com, or check out Beazer on Facebook, Instagram and Twitter.

This press release 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 statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things: (i) the cyclical nature of the homebuilding industry and a potential deterioration in homebuilding industry conditions; (ii) economic changes nationally or in local markets, changes in consumer confidence, wage levels, declines in employment levels, inflation and governmental actions, each of which is outside our control and affects the affordability of and demand for, the homes we sell; (iii) potential negative impacts of the COVID-19 pandemic, which, in addition to exacerbating each of the risks listed above and below, may include a significant decrease in demand for our homes or consumer confidence generally with respect to purchasing a home, an inability to sell and build homes in a typical manner or at all, increased costs or decreased supply of building materials, including lumber, or the availability of subcontractors, housing inspectors, and other third-parties we rely on to support our operations, and recognizing charges in future periods, which may be material, for goodwill impairments, inventory impairments and/or land option contract abandonments; (iv) shortages of or increased prices for labor, land or raw materials used in housing production, and the level of quality and craftsmanship provided by our subcontractors; (v) the availability and cost of land and the risks associated with the future value of our inventory, such as asset impairment charges we took on select California assets during the second quarter of fiscal 2019; (vi) factors affecting margins, such as decreased land values underlying land option agreements, increased land development costs in communities under development or delays or difficulties in implementing initiatives to reduce our production and overhead cost structure; (vii) our ability to raise debt and/or equity capital, due to factors such as limitations in the capital markets (including market volatility) or adverse credit market conditions, and our ability to otherwise meet our ongoing liquidity needs (which could cause us to fail to meet the terms of our covenants and other requirements under our various debt instruments and therefore trigger an acceleration of a significant portion or all of our outstanding debt obligations), including the impact of any downgrades of our credit ratings or reduction in our liquidity levels; (viii) market perceptions regarding any capital raising initiatives we may undertake (including future issuances of equity or debt capital); (ix) terrorist acts, protests and civil unrest, political uncertainty, natural disasters, acts of war or other factors over which the Company has no control; (x) inaccurate estimates related to homes to be delivered in the future (backlog), as they are subject to various cancellation risks that cannot be fully controlled; (xi) increases in mortgage interest rates, increased disruption in the availability of mortgage financing, changes in tax laws or otherwise regarding the deductibility of mortgage interest expenses and real estate taxes or an increased number of foreclosures; (xii) increased competition or delays in reacting to changing consumer preferences in home design; (xiii) natural disasters or other related events that could result in delays in land development or home construction, increase our costs or decrease demand in the impacted areas; (xiv) the potential recoverability of our deferred tax assets; (xv) increases in corporate tax rates; (xvi) potential delays or increased costs in obtaining necessary permits as a result of changes to, or complying with, laws, regulations or governmental policies, and possible penalties for failure to comply with such laws, regulations or governmental policies, including those related to the environment; (xvii) the results of litigation or government proceedings and fulfillment of any related obligations; (xviii) the impact of construction defect and home warranty claims; (xix) the cost and availability of insurance and surety bonds, as well as the sufficiency of these instruments to cover potential losses incurred; (xx) the impact of information technology failures, cybersecurity issues or data security breaches; or (xxi) the impact on homebuilding in key markets of governmental regulations limiting the availability of water.

Any forward-looking statement, including any statement expressing confidence regarding future outcomes, speaks only as of the date on which such statement is made and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time-to-time, and it is not possible to predict all such factors.

-Tables Follow-


BEAZER HOMES USA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
in thousands (except per share data)	2021			2020			2021			2020
Total revenue	$	570,932		$	533,112		$	1,549,360		$	1,440,329
Home construction and land sales expenses		455,178			441,788			1,259,922			1,207,023
Inventory impairments and abandonments		231			2,266			696			2,266
Gross profit		115,523			89,058			288,742			231,040
Commissions		20,955			20,851			58,346			55,660
General and administrative expenses		42,186			41,276			119,903			121,025
Depreciation and amortization		3,689			3,780			10,494			10,834
Operating income		48,693			23,151			99,999			43,521
Equity in income of unconsolidated entities		313			4			424			138
Loss on extinguishment of debt		(1,050	)		—			(1,613	)		—
Other expense, net		(10	)		(2,904	)		(2,356	)		(6,030	)
Income from continuing operations before income taxes		47,946			20,251			96,454			37,629
Expense from income taxes		10,804			4,981			22,633			8,940
Income from continuing operations, net of tax		37,142			15,270			73,821			28,689
Loss from discontinued operations, net of tax		(7	)		(82	)		(161	)		(141	)
Net income	$	37,135		$	15,188		$	73,660		$	28,548
Weighted average number of shares:
Basic		30,022			29,597			29,915			29,738
Diluted		30,562			29,674			30,292			30,014

Basic income (loss) per share:
Continuing operations	$	1.24		$	0.51		$	2.47		$	0.96
Discontinued operations		—			—			(0.01	)		—
Total	$	1.24		$	0.51		$	2.46		$	0.96
Diluted income (loss) per share:
Continuing operations	$	1.22		$	0.51		$	2.44		$	0.95
Discontinued operations		—			—			(0.01	)		—
Total	$	1.22		$	0.51		$	2.43		$	0.95

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
*Capitalized Interest in Inventory*	2021			2020			2021			2020
Capitalized interest in inventory, beginning of period	$	113,414		$	134,693		$	119,659		$	136,565
Interest incurred		19,270			23,012			58,517			66,839
Capitalized interest impaired		—			(792	)		—			(792	)
Interest expense not qualified for capitalization and included as other expense		(212	)		(3,003	)		(2,781	)		(6,373	)
Capitalized interest amortized to home construction and land sales expenses		(22,529	)		(21,814	)		(65,452	)		(64,143	)
Capitalized interest in inventory, end of period	$	109,943		$	132,096		$	109,943		$	132,096

BEAZER HOMES USA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

in thousands (except share and per share data)	June 30, 2021			September 30, 2020
ASSETS
Cash and cash equivalents	$	358,334		$	327,693
Restricted cash		24,690			14,835
Accounts receivable (net of allowance of $292 and $358, respectively)		23,028			19,817
Income tax receivable		9,502			9,252
Owned inventory		1,408,071			1,350,738
Investments in unconsolidated entities		4,361			4,003
Deferred tax assets, net		204,729			225,143
Property and equipment, net		22,055			22,280
Operating lease right-of-use assets		13,015			13,103
Goodwill		11,376			11,376
Other assets		13,468			9,240
Total assets	$	2,092,629		$	2,007,480
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable	$	155,084		$	132,192
Operating lease liabilities		14,813			15,333
Other liabilities		139,074			135,983
Total debt (net of debt issuance costs of $9,444 and $10,891, respectively)		1,110,053			1,130,801
Total liabilities		1,419,024			1,414,309
Stockholders' equity:
Preferred stock (par value $0.01 per share, 5,000,000 shares authorized, no shares issued)		—			—
Common stock (par value $0.001 per share, 63,000,000 shares authorized, 31,293,798 issued and outstanding and 31,012,326 issued and outstanding, respectively)		31			31
Paid-in capital		863,240			856,466
Accumulated deficit		(189,666	)		(263,326	)
Total stockholders' equity		673,605			593,171
Total liabilities and stockholders' equity	$	2,092,629		$	2,007,480

*Inventory Breakdown*
Homes under construction	$	668,280		$	525,021
Development projects in progress		532,929			589,763
Land held for future development		19,879			28,531
Land held for sale		7,173			12,622
Capitalized interest		109,943			119,659
Model homes		69,867			75,142
Total owned inventory	$	1,408,071		$	1,350,738

BEAZER HOMES USA, INC.

CONSOLIDATED OPERATING AND FINANCIAL DATA – CONTINUING OPERATIONS

Three Months Ended June 30,

Nine Months Ended June 30,

SELECTED OPERATING DATA

2021

2020

2021

2020

Closings:

West region

765

819

2,164

2,248

East region

330

220

874

647

Southeast region

283

327

842

860

Total closings

1,378

1,366

3,880

3,755

New orders, net of cancellations:

West region

715

775

2,613

2,465

East region

263

287

940

871

Southeast region

221

310

942

948

Total new orders, net

1,199

1,372

4,495

4,284

	As of June 30,
Backlog units at end of period:	2021		2020
West region		1,814		1,199
East region		690		565
Southeast region		620		473
Total backlog units		3,124		2,237
Dollar value of backlog at end of period (in millions)	$	1,354.6	$	884.9

in thousands	Three Months Ended June 30,					Nine Months Ended June 30,
SUPPLEMENTAL FINANCIAL DATA	2021		2020			2021		2020
Homebuilding revenue:
West region	$	294,834	$	303,500		$	805,617	$	825,129
East region		160,393		108,126			410,350		295,782
Southeast region		111,703		120,839			322,609		316,939
Total homebuilding revenue	$	566,930	$	532,465		$	1,538,576	$	1,437,850

Revenue:
Homebuilding	$	566,930	$	532,465		$	1,538,576	$	1,437,850
Land sales and other		4,002		647			10,784		2,479
Total revenue	$	570,932	$	533,112		$	1,549,360	$	1,440,329

Gross profit:
Homebuilding	$	114,710	$	90,282		$	287,003	$	232,134
Land sales and other		813		(1,224	)		1,739		(1,094	)
Total gross profit	$	115,523	$	89,058		$	288,742	$	231,040

Reconciliation of homebuilding gross profit and the related gross margin before impairments and abandonments and interest amortized to cost of sales to homebuilding gross profit and gross margin, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that this information assists investors in comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective level of impairments/abandonments and level of debt.

	Three Months Ended June 30,								Nine Months Ended June 30,
in thousands	2021				2020				2021				2020
Homebuilding gross profit/margin	$	114,710	20.2	%	$	90,282	17.0	%	$	287,003	18.7	%	$	232,134	16.1	%
Inventory impairments and abandonments (I&A)		231				1,009				696				1,009
Homebuilding gross profit/margin before I&A		114,941	20.3	%		91,291	17.1	%		287,699	18.7	%		233,143	16.2	%
Interest amortized to cost of sales		22,529				21,814				65,199				64,143
Homebuilding gross profit/margin before I&A and interest amortized to cost of sales	$	137,470	24.2	%	$	113,105	21.2	%	$	352,898	22.9	%	$	297,286	20.7	%

Reconciliation of Adjusted EBITDA to total company net income, the most directly comparable GAAP measure, is provided for each period discussed below. Management believes that Adjusted EBITDA assists investors in understanding and comparing the operating characteristics of homebuilding activities by eliminating many of the differences in companies' respective capitalization, tax position, and level of impairments. These EBITDA measures should not be considered alternatives to net income determined in accordance with GAAP as an indicator of operating performance.

	Three Months Ended June 30,				Nine Months Ended June 30,					LTM Ended
in thousands	2021		2020		2021			2020		2021			2020
Net income	$	37,135	$	15,188	$	73,660		$	28,548	$	97,338		$	30,977
Expense from income taxes		10,801		4,958		22,587			8,900		31,351			15,934
Interest amortized to home construction and land sales expenses and capitalized interest impaired		22,529		22,606		65,452			64,935		96,179			102,350
Interest expense not qualified for capitalization		212		3,003		2,781			6,373		4,876			7,682
EBIT		70,677		45,755		164,480			108,756		229,744			156,943
Depreciation and amortization		3,689		3,780		10,494			10,834		15,300			16,681
EBITDA		74,366		49,535		174,974			119,590		245,044			173,624
Stock-based compensation expense		3,194		1,659		9,254			4,869		14,421			7,402
Loss on extinguishment of debt		1,050		—		1,613			—		1,613			25,494
Inventory impairments and abandonments ^(b)		231		1,474		696			1,474		1,333			1,474
Restructuring and severance expenses		—		1,361		(10	)		1,361		(54	)		1,361
Litigation settlement in discontinued operations		—		—	$	120		$	—		1,380			—
Adjusted EBITDA	$	78,841	$	54,029	$	186,647		$	127,294	$	263,737		$	209,355

(a)	"LTM" indicates amounts for the trailing 12 months.
(b)	In periods during which we impaired certain of our inventory assets, capitalized interest that is impaired is included in the line above titled "Interest amortized to home construction and land sales expenses and capitalized interest impaired."

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Beazer Homes Reports Strong Third Quarter Fiscal 2021 Results