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Last Update: 29-Jun-12 09:39 ET
KB Home shares rise 6% following better than expected results
KB Home (KBH $9.24 +0.54) reported a second quarter loss of $0.31 per share, $0.02 better than the Capital IQ consensus of ($0.33). The company states 3 of the company's 4 homebuilding regions posted year-over-year growth, with revenues up 24% in the West Coast region, 5% in the Southeast region, and 4% in the Central region. The company delivered 1,290 homes, up 2% from the year-earlier quarter, with increases of 13% and 5% in the company's Central and Southeast regions, respectively, partly offset by decreases in the West Coast and Southwest regions. The average selling price of $233,000 was 9% higher than the $213,400 for the year-earlier quarter, reflecting notable increases of 33% in the West Coast region and 14% in the Southwest region. These increases were partially offset by decreases of 8% and 1% in the Central and Southeast regions, respectively. The company had a backlog of 2,962 homes, representing potential future housing revenues of $693.4 million, as of May 31, 2012, compared to a backlog of 2,422 homes, representing potential future housing revenues of $501.5 mln, as of May 31, 2011. Backlog homes and value at May 31, 2012 increased 22% and 38%, respectively, year over year, with three of the company's four regions posting year-over-year increases in backlog homes and value. Inventories at May 31, 2012 were $1.73 bln, comparable to the balance at November 30, 2011. The co's debt balance of $1.58 bln at May 31, 2012 remained level compared to November 30, 2011.
