ATLANTA -- Beazer Homes USA, Inc. announced that it lost $54.6 million in its second quarter on sales of $127.5 million.
Net new home orders decreased 26.7% compared to the same period of the prior year due to the absence of incentives similar to the First Time Homebuyers' Tax Credit that pulled sales into the first half of fiscal 2010. The reduction in net new home orders from continuing operations was driven by a 24.8% decrease in gross new orders and an increase in the cancellation rate to 19.9% as compared to 17.8% a year ago. Net new home orders increased 121.1% over the first quarter of fiscal 2011 and 9.0% over the second quarter of fiscal 2009, both periods which did not include the impact of any special government incentive such as the tax credit.
The number of homes closed decreased 31.1% and homebuilding revenues from continuing operations decreased 35.7% as compared to the second quarter of fiscal 2010. The reduction in closings compared to the prior year resulted from a lower backlog of homes at the beginning of the quarter, 793 homes at December 31, 2010 compared to 946 homes at December 31, 2009, as well as the reduction in new orders during the quarter.
The Company's Average Selling Price (ASP) increased to $215,700 for the quarter ended March 31, 2011 from $208,700 in the prior quarter. The ASP for the second quarter of 2010 was $230,800. These fluctuations in ASP were primarily driven by differences in the mix of homes closed and the opening of new communities with slightly lower average sales prices.