ADDITIONAL INFORMATIOM

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the

Securities Exchange Act of 1934

(Amendment No.      )

Filed by the Registrant  x                            Filed by a Party other than the Registrant  ¨

Check the appropriate box:

 

¨ Preliminary Proxy Statement

 

¨ Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

 

¨ Definitive Proxy Statement

 

x Definitive Additional Materials

 

¨ Soliciting Material Pursuant to 14a-12

BEAZER HOMES USA, INC.

(Name of Registrant as Specified in Its Charter)

 

 

 

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

 

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¨ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

 

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¨ Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.

 

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1
©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
BEAZER HOMES USA, INC.
2010 Annual Shareholders’
Meeting
Additional Information and Recommendations Related to
Shareholder Proposals
March 1, 2010


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Disclaimer
Important Information and Where to Find It
On February 25,
2010, Beazer Homes USA, Inc. filed with the Securities and Exchange
Commission (the “SEC”) a definitive Proxy Statement in connection with its 2010
Annual Meeting, and has mailed the Proxy Statement to its shareholders.  Investors
and shareholders are urged to read the Proxy Statement and any other relevant
documents filed with the SEC (when available), because they contain important
information.
Investors
and
shareholders
may
obtain
a
free
copy
of
the
Proxy
Statement and other documents that Beazer files with the SEC (when available) at the
SEC’s
website
at
www.sec.gov
and
Beazer’s
website
for
the
Annual
Meeting
at
www.proxyvote.com.  In addition, the Proxy Statement and other documents filed by
Beazer
with
the
SEC
(when
available)
may
be
obtained
from
Beazer
free
of
charge
by
directing a request to Beazer Homes USA, Inc., Attn: Investor Relations, 1000
Abernathy Road, Suite 1200, Atlanta, Georgia 30328.
Certain Information Concerning Participants
Beazer, and its directors and executive officers are participants in the solicitation of
Beazer’s shareholders in connection with the 2010 Annual Meeting.  Information
regarding the names, affiliations and interests of such individuals is included in
Beazer’s Proxy Statement for the 2010 Annual Meeting.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Overview
The Company’s 2010 Proxy Statement contains four proposals which
require shareholder approval:
1.
The election of the seven nominees to our Board of Directors;
2.
The ratification of the selection of Deloitte & Touche LLP by the Audit Committee of our
Board of Directors as our independent registered public accounting firm for the fiscal year
ending September 30, 2010;
3.
The approval of an amendment to our Amended and Restated Certificate of Incorporation
(referred to as our “Charter”) that would increase the total number of authorized shares of
common stock from 80 million shares to 180 million shares; and
4.
The
approval
of
the
Beazer
Homes
USA,
Inc.
2010
Equity
Incentive
Plan
The Company’s Board of Directors unanimously recommends shareholders
approve all four Proposals.
For additional information on how to obtain a copy of the Proxy Statement,
our Annual Report or how to vote, see page 10.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Proposal 1: Election of Directors
Summary of Proposal
Shareholders must annually approve nominees to the Company’s Board of Directors.  Each
of the nominees for the Board of Directors is presently serving as a director and has been
nominated
as
a
director
for
the
fiscal
year
ending
September
30,
2010
and
until
his
or
her
respective successor has been qualified and elected.
Nominees (detailed information regarding each nominee is available in the
Proxy Statement)
Laurent Alpert
Brian C. Beazer
Peter G. Leemputte
Ian J. McCarthy
Norma A. Provencio
Larry T. Solari
Stephen P. Zelnak, Jr.
Board of Directors’
Recommendation
Our
Board
of
Directors
recommends
a
vote
FOR
the
election
of
each
of
the
nominees.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Proposal 2: Election of Auditors
Summary of Proposal
The Audit Committee of our Board of Directors has selected the firm of Deloitte & Touche
LLP, to serve as our independent registered public accounting firm for the fiscal year ending
September 30, 2010. 
Background Information
Deloitte & Touche has served as our accounting firm since our fiscal year ended September
30, 1996.
Our Audit Committee annually approves each year’s engagement for audit services in
advance.
Our
Audit
Committee
has
also
established
complementary
procedures
to
require
pre-approval of all permitted non-audit services provided by our independent auditors.
Board of Directors’
Recommendation
Our
Board
of
Directors
recommends
a
vote
FOR
ratification
of
the
appointment
of
Deloitte & Touche as our independent registered public accounting firm for the fiscal
year ending September 30, 2010.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Proposal 3: Increase In Authorized Shares
Summary of Proposal
Proposal 3 requests shareholder approval to amend the Company’s Charter to increase the
number of authorized shares of common stock from 80 million to 180 million.
Background Information
The Company’s Charter currently restricts the number of shares outstanding to 80 million
shares.
An
increase
in
the
number
of
authorized
shares
requires
shareholder
approval
of a
Charter amendment;
The Company currently has approximately 79.5 million shares issued and reserved for
issuance to satisfy convertible debt and previously issued employee equity grants;
Approximately 500,000 shares remain available for issuance, severely limiting the
Company’s ability to use equity or equity-linked instruments for compensation purposes or
in connection with capital raising;
Although the Company has no current plans to utilize additional shares, other than in
connection with the proposed 2010 Equity Incentive Plan (See Proposal 4), proceeds from the
sale of additional common shares could be used to:
Reduce overall corporate indebtedness; and/or
Acquire
assets
or
businesses
which
improve
the
earnings
power
of
the
Company;
A comparison
with
other
homebuilding
companies
(please
see
following
page)
demonstrates
the requested additional authorized shares are in-line with industry norms.
Board of Directors’
Recommendation
Our
Board
of
Directors
recommends
a
vote
FOR
the
proposed
Charter
amendment.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
3.2x
2.8x
2.3x
0.0x
0.9x
1.8x
2.7x
3.6x
Peer Group Mean
Peer Group Median
Beazer Homes -
If proposal approved
0.5
100.5
0
50
100
150
200
Beazer Homes
Beazer Homes -
If proposal approved
Peer Group Median
Peer Group Mean
The proposal compares favorably to our peer group.
Proposal 3: Peer Comparison of Authorized Shares
Ratio of Authorized Shares/
(Shares Outstanding + Shares Reserved)
Shares Available for Issuance
Company
Authorized
Shares
(1)
D.R. Horton, Inc.
1,000.0
Hovnanian Enterprises, Inc.
200.0
KB Home
290.0
Lennar Corporation
300.0
M.D.C. Holdings, Inc.
250.0
NVR, Inc.
60.0
Pulte Homes, Inc.
500.0
The Ryland Group, Inc.
200.0
Toll Brothers, Inc.
200.0
Peer Group Mean
333.3
Peer Group Median
250.0
Beazer Homes USA, Inc.
80.0
Beazer Homes USA, Inc. - If proposal approved
180.0
(1) For companies with dual class structures, represents only Class A
      shares.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Proposal 4: 2010 Equity Incentive Plan
Summary of Proposal
Proposal 4 seeks shareholder approval of the Company’s 2010 Equity Incentive Plan (the
“2010 Plan”) for employees and directors.
Background Information
The Company’s 1999 Stock Incentive Plan expired in November 2009.  As such, the
Company does not have the ability to grant any equity awards as a part of any
compensation program;
The Company believes equity is an integral component of a competitive compensation
program;
The 2010 Plan would authorize a committee of independent directors to make a variety of
common
stock-based
awards,
including
performance
shares,
restricted
stock
and
stock
options to plan participants, including employees, officers and directors;
The 2010 Plan would allow for grants not to exceed 6 million shares, unless further
shareholder approval is obtained, over the ten-year life of the 2010 Plan, with a sub-limit on
full value awards (e.g. restricted stock) of 3 million shares;
The 2010 Plan has been carefully designed to meet widely accepted corporate governance
criteria
and
to
incorporate
“shareholder
friendly”
features
(please
see
following
page
for
details).
Board of Directors’
Recommendation
Our
Board
of
Directors
recommends
a
vote
FOR
approval
of
the
2010
Plan.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Proposal 4: 2010 Equity Incentive Plan
The
2010
Plan
has
been
structured
to
meet
widely
accepted
corporate
governance standards:
The
Company’s
dilution,
including
the
new
authorization
of
6
million
shares,
would
stand
at
only 11.5%.
(1)
The
Company’s
three
year
average
“burn
rate”
is
just
1.6%.
(2)
The
2010
Plan
also
has
been
designed
to
incorporate
“shareholder
friendly”
features:
No cash awards available;
Minimum three year vesting for time based awards;
Minimum one year vesting for performance based awards;
Prohibitions on re-pricing, exchanging or repurchasing awards without shareholder approval;
No dividends on unvested performance awards; and
No material amendments without shareholder approval.
(1) We calculate dilution as the sum of (a) shares available under existing plans; (b) awards granted under existing plans but not yet exercised; and (c) the number 
of shares being added under the proposed plan divided by the Company’s fully-diluted outstanding shares.
(2) We calculate burn rate using the gross number of equity awards granted in each year divided by the weighted average common shares outstanding at fiscal
year-end.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Proposal 4: 2010 Equity Incentive Plan
Although the Company has been able to recruit new management team
members including a Chief Financial Officer, Chief Accounting Officer,
Treasurer and General Counsel, its ability to provide competitive equity
compensation has been limited:
Equity grants to employees were suspended from mid 2007 to August 2009 when
approximately 1.1 million shares were granted under the 1999 Stock Incentive Plan. 
August
2009
equity
grants
to
management
were
significantly
below
market
and
peer
comparables.


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©Beazer Homes – Confidential & Proprietary – Distribution Prohibited
Additional Information
Additional questions can be addressed to the Company here:
Beazer Homes USA, Inc.,
Attn:  Investor Relations
1000 Abernathy Road, Suite 1200
Atlanta, Georgia  30328
(770) 827-3700
Email:
ProxyQuestions@beazer.com
Or to the Company’s Solicitation Agent here:
MORROW & CO., LLC
470 West Avenue
Stamford, Connecticut  06902
(800) 460-1014 (toll free)
Email:
bzh.info@morrowco.com
An electronic version of the Proxy Statement is available here:
www.proxyvote.com
The Shareholders’
Meeting is scheduled for April 13, 2010.  The Board of
Directors respectfully requests that shareholders vote.  Shareholders may
vote here:
www.proxyvote.com
You will need the 12-digit Control Number included on your proxy card or voting
instruction form to access these materials.