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| Beazer Homes announces profitable growth strategy Beazer Homes USA, Inc. announced the acceleration of its comprehensive plan to enhance shareholder value, built upon the demonstrated success of the Profitable Growth Strategy that the Company has articulated and executed over the past two years. As part of this plan, the Board of Directors has authorized the Company to repurchase 10 million shares of the Company's stock. The Company expects to execute the repurchase program within the next 36 months, with $200-$250 million allocated to share repurchases in fiscal 2006, subject to market conditions and other factors. Shares may be purchased for cash in the open market, on the New York Stock Exchange or in privately negotiated transactions. Furthermore, the Company will enter into a plan under Rule 10b5-1 to execute a portion of the share repurchase program, supplemented with opportunistic purchases in the open market or in privately negotiated transactions. The Company said that following the release of its fourth quarter and fiscal year results, it had repurchased 500,000 shares. The Company will fund this expanded share repurchase program by redeploying its cash by limiting or curtailing operations in certain markets, reinvesting in higher margin markets and accelerating cash generation through increased profitability. The Company intends to maintain a capital structure with net debt to total capitalization at approximately 50%. Given the further development of this strategy, the Company is also reviewing its existing compensation programs, including better aligning the interests of management and its shareholders within the context of this program. write your comments about the article :: © 2005 Construction News :: home page |