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Last Update: 21-Mar-13 09:27 ET
KB Home Reports A Loss, Beats On The Top Line
KB Home (KBH $21.59) reported a first quarter loss of $0.16 per share, $0.06 better than the Capital IQ Consensus Estimate of ($0.22); revenues rose 59.2% year/year to $405.2 mln vs the $349.77 mln consensus, as a result of an increase in the number of homes delivered and a higher average selling price. Compared to the year-earlier quarter, revenues were up across all of the Company's homebuilding regions.
The company delivered 1,485 homes, up 29% from 1Q12, reflecting increases in three of its four homebuilding regions.
The overall average selling price of $271,300 was $52,300, or 24%, higher than the year-earlier quarter, marking the Company's 11th consecutive quarter of year-over-year improvement, and its highest first-quarter average selling price since 2006. The higher average selling price in the current quarter reflected, among other things, the Company's ongoing strategy of repositioning its operations to serve its core first-time and first move-up homebuyers in higher-performing choice locations in land-constrained growth markets that feature higher household incomes and greater demand for larger homes and more design options, as well as generally rising home prices.
The housing gross profit margin improved by 680 basis points to 14.8% from 8.0% in the year-earlier quarter.
Potential future housing revenues in backlog at February 28, 2013 increased to $703.9 million, up 53% from $460.0 million at February 29, 2012. The number of homes in the Company's backlog rose 25% to 2,763 at February 28, 2013 from 2,203 at February 29, 2012.
The overall value of first quarter net orders was $506.8 million, up 83% from $277.5 million in the year-earlier quarter. Each of the Company's four homebuilding regions generated a year-over-year increase in net order value, ranging from 41% in the Central region to 133% in the West Coast region. Net orders rose 40% to 1,671 in the first quarter of 2013, up from 1,197 in the year-earlier quarter.
"We raised more than $330 million from the successful sale of convertible senior notes and common stock, maintained our aggressive pursuit of available opportunities by investing nearly $350 million in land and land development — more than triple the amount we invested in the year-earlier quarter — in desirable locations within strong growth markets... Based on the strategic steps we have taken, our improved performance over the past year and the accelerating momentum we are seeing in our business, we are confident that we will achieve our profitability goal for 2013 (consensus $0.16)."
The company delivered 1,485 homes, up 29% from 1Q12, reflecting increases in three of its four homebuilding regions.
The overall average selling price of $271,300 was $52,300, or 24%, higher than the year-earlier quarter, marking the Company's 11th consecutive quarter of year-over-year improvement, and its highest first-quarter average selling price since 2006. The higher average selling price in the current quarter reflected, among other things, the Company's ongoing strategy of repositioning its operations to serve its core first-time and first move-up homebuyers in higher-performing choice locations in land-constrained growth markets that feature higher household incomes and greater demand for larger homes and more design options, as well as generally rising home prices.
The housing gross profit margin improved by 680 basis points to 14.8% from 8.0% in the year-earlier quarter.
Potential future housing revenues in backlog at February 28, 2013 increased to $703.9 million, up 53% from $460.0 million at February 29, 2012. The number of homes in the Company's backlog rose 25% to 2,763 at February 28, 2013 from 2,203 at February 29, 2012.
The overall value of first quarter net orders was $506.8 million, up 83% from $277.5 million in the year-earlier quarter. Each of the Company's four homebuilding regions generated a year-over-year increase in net order value, ranging from 41% in the Central region to 133% in the West Coast region. Net orders rose 40% to 1,671 in the first quarter of 2013, up from 1,197 in the year-earlier quarter.
"We raised more than $330 million from the successful sale of convertible senior notes and common stock, maintained our aggressive pursuit of available opportunities by investing nearly $350 million in land and land development — more than triple the amount we invested in the year-earlier quarter — in desirable locations within strong growth markets... Based on the strategic steps we have taken, our improved performance over the past year and the accelerating momentum we are seeing in our business, we are confident that we will achieve our profitability goal for 2013 (consensus $0.16)."
