Nov 5-Beazer Homes Provides Certain Preliminary Fourth Quarter Financial and Operating Data
12/31/06 inventory impairment of $94.7 million. 3/31/07 inventory impairment of $60.8 million. 6/30/07 inventory impairment was $113.9 million 9/30/07 Another $230 million of impairments. I assume at least $120 million of this was land inventory.
So in the last 4 quarters BZH has taken about $390 million in land impairments not counting options and goodwill.
I think your statement that they have taken an insignificant amount of writedowns already is WRONG.
I calculated that they bought about $1 billion in land after 2003. It would seem that they have writen down about 40% of this already. I'm guessing that they will not have more than another $100-$200 million in write downs or another $3/share after tax to go.
With book at $30 as of 9/30/07, I think they are in ok shape covenant wise to take another $3/share writedown.
Loss from homebuilder operations has been running under 50 cents/share per quarter excluding charges.