Beazer Homes says home closings fell in 4Q

The builder said it was analyzing whether an "ownership change" by some shareholders has occurred as defined by a section of the tax code. In that were to happen, it could limit the company's ability to carry forward prior-year losses to reduce its potential tax bill in the future.

That possibility rocked Beazer's stock, as investors sent shares down 51 cents to $2.37 Monday. The stock has traded between $2 and $12.40 the past year.

Beazer released the home data ahead of its plans to release fiscal fourth-quarter and full-year financial results Dec 2.

The company said home closings during the quarter ended Sept. 30 fell 38 percent to 2,441 from a year earlier. Net new home orders increased 10 percent to 1,083.

The year-over-year increase was the result of fewer cancellations during the quarter. Beazer's cancellation rate was 45.7 percent during the fourth quarter, compared with 68.1 percent during the same quarter last year.

Beazer said the 45.7 percent cancellation rate was higher than the prior quarter's 36.8 percent as market conditions worsened amid declines in consumer confidence and growing worries about the overall economy.

The builder said it closed the quarter with $584.3 million in cash.

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