We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
KB Home | NYSE:KBH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 66.11 | 0 | 01:00:00 |
Revenues Up 21% to $818.6 MillionNet Orders Increase 14% to 2,580; Net Order Value Up 32% to $1.09 BillionBacklog Value Increases 25% to $1.79 Billion
KB Home (NYSE: KBH) today reported results for its first quarter ended February 28, 2017.
“Building on our 2016 accomplishments, we delivered a solid financial and operational performance in the first quarter and extended the upward trajectory of our business,” said Jeffrey Mezger, chairman, president and chief executive officer. “With double-digit year-over-year growth in deliveries, revenues, pretax income, net orders and backlog, we are benefiting from the effective execution of our core business strategy and a favorable housing environment supported by healthy demand and constrained supply. We are seeing particular strength in California, our largest market, where we had significant year-over-year improvement in many key metrics. Company-wide, our operations are maintaining a strong cadence that is producing more reliable, predictable results.”
“We continue to progress on our returns-focused growth roadmap, which includes expanding the scale of our business within our current geographic footprint, increasing our operating income margin, generating cash from operations to support a balanced approach to future growth, reducing debt and improving our leverage ratio,” said Mezger. “In alignment with this strategy, we completed the early redemption of $100 million of our senior notes in the quarter using internally generated cash. Based on the steadily increasing momentum we have sustained over the past few years, and the positive start to 2017, we believe we are well positioned to achieve our objectives for the year.”
Three Months Ended February 28, 2017 (comparisons on a year-over-year basis)
Backlog and Net Orders (comparisons on a year-over-year basis)
Balance Sheet as of February 28, 2017 (comparisons to November 30, 2016)
Earnings Conference Call
The conference call to discuss the Company’s first quarter 2017 earnings will be broadcast live TODAY at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. To listen, please go to the Investor Relations section of the Company’s website at www.kbhome.com.
About KB Home
KB Home (NYSE: KBH) is one of the largest and most recognized homebuilders in the United States and an industry leader in sustainability, building innovative and highly energy- and water-efficient new homes. Founded in 1957 and the first homebuilder listed on the New York Stock Exchange, the Company has built nearly 600,000 homes for families from coast to coast. Distinguished by its personalized homebuilding approach, KB Home lets each buyer choose their lot location, floor plan, décor choices, design features and other special touches that matter most to them. To learn more about KB Home, call 888-KB-HOMES, visit www.kbhome.com or connect on Facebook.com/KBHome or Twitter.com/KBHome.
Forward-Looking and Cautionary Statements
Certain matters discussed in this press release, including any statements that are predictive in nature or concern future market and economic conditions, business and prospects, our future financial and operational performance, or our future actions and their expected results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance. We do not have a specific policy or intent of updating or revising forward-looking statements. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The most important risk factors that could cause our actual performance and future events and actions to differ materially from such forward-looking statements include, but are not limited to the following: general economic, employment and business conditions; population growth, household formations and demographic trends; conditions in the capital, credit and financial markets; our ability to access external financing sources and raise capital through the issuance of common stock, debt or other securities, and/or project financing, on favorable terms; material and trade costs and availability; changes in interest rates; our debt level, including our ratio of debt to capital, and our ability to adjust our debt level and maturity schedule; our compliance with the terms of our revolving credit facility; volatility in the market price of our common stock; weak or declining consumer confidence, either generally or specifically with respect to purchasing homes; competition from other sellers of new and resale homes; weather events, significant natural disasters and other climate and environmental factors, including the prolonged drought and related water-constrained conditions in the southwest United States and California; government actions, policies, programs and regulations directed at or affecting the housing market (including the Dodd-Frank Act, tax benefits associated with purchasing and owning a home, and the standards, fees and size limits applicable to the purchase or insuring of mortgage loans by government-sponsored enterprises and government agencies), the homebuilding industry, or construction activities; changes in existing tax laws or enacted corporate income tax rates; the availability and cost of land in desirable areas; our warranty claims experience with respect to homes previously delivered and actual warranty costs incurred; costs and/or charges arising from regulatory compliance requirements or from legal, arbitral or regulatory proceedings, investigations, claims or settlements, including unfavorable outcomes in any such matters resulting in actual or potential monetary damage awards, penalties, fines or other direct or indirect payments, or injunctions, consent decrees or other voluntary or involuntary restrictions or adjustments to our business operations or practices that are beyond our current expectations and/or accruals; our ability to use/realize the net deferred tax assets we have generated; our ability to successfully implement our current and planned strategies and initiatives related to our product, geographic and market positioning, gaining share and scale in our served markets; our operational and investment concentration in markets in California; consumer interest in our new home communities and products, particularly from first-time homebuyers and higher-income consumers; our ability to generate orders and convert our backlog of orders to home deliveries and revenues, particularly in key markets in California; our ability to successfully implement our returns-focused growth roadmap/strategy and achieve the associated revenue, margin, profitability, cash flow, community reactivation, land sales, business growth, asset efficiency, return on invested capital, return on equity, net debt-to-capital ratio and other financial and operational targets and objectives; the ability of our homebuyers to obtain residential mortgage loans and mortgage banking services; the performance of mortgage lenders to our homebuyers; completing the wind-down of Home Community Mortgage as planned; Stearns Lending, LLC’s management of Home Community Mortgage’s assets and operations; whether we can operate a joint venture with Stearns Lending, LLC, and the performance of any such mortgage banking joint venture once operational; information technology failures and data security breaches; and other events outside of our control. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of these and other risks and uncertainties applicable to our business.
KB HOME CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended February 28, 2017 and February 29, 2016
(In Thousands, Except Per Share Amounts – Unaudited)
Three Months Ended February 28, 2017 February 29, 2016 Total revenues $ 818,596 $ 678,371 Homebuilding: Revenues $ 816,246 $ 675,742 Costs and expenses (790,969 ) (656,750 ) Operating income 25,277 18,992 Interest income 198 152 Interest expense (6,307 ) (3,697 ) Equity in income (loss) of unconsolidated joint ventures 731 (603 ) Homebuilding pretax income 19,899 14,844 Financial services: Revenues 2,350 2,629 Expenses (819 ) (859 ) Equity in income (loss) of unconsolidated joint ventures 29 (587 ) Financial services pretax income 1,560 1,183 Total pretax income 21,459 16,027 Income tax expense (7,200 ) (2,900 ) Net income $ 14,259 $ 13,127 Earnings per share: Basic $ .17 $ .15 Diluted $ .15 $ .14 Weighted average shares outstanding: Basic 85,122 89,239 Diluted 96,273 99,427 KB HOME CONSOLIDATED BALANCE SHEETS(In Thousands – Unaudited)
February 28,2017 November 30,2016 Assets Homebuilding: Cash and cash equivalents $ 351,880 $ 592,086 Receivables 238,358 231,665 Inventories 3,423,344 3,403,228 Investments in unconsolidated joint ventures 64,916 64,016 Deferred tax assets, net 731,885 738,985 Other assets 96,679 91,145 4,907,062 5,121,125 Financial services 15,518 10,499 Total assets $ 4,922,580 $ 5,131,624 Liabilities and stockholders’ equity Homebuilding: Accounts payable $ 178,491 $ 215,331 Accrued expenses and other liabilities 501,902 550,996 Notes payable 2,504,449 2,640,149 3,184,842 3,406,476 Financial services 1,278 2,003 Stockholders’ equity 1,736,460 1,723,145 Total liabilities and stockholders’ equity $ 4,922,580 $ 5,131,624 KB HOME SUPPLEMENTAL INFORMATIONFor the Three Months Ended February 28, 2017 and February 29, 2016
(In Thousands, Except Average Selling Price – Unaudited)
Three Months Ended February 28, 2017 February 29, 2016 Homebuilding revenues: Housing $ 810,947 $ 672,646 Land 5,299 3,096 Total $ 816,246 $ 675,742 Homebuilding costs and expenses: Construction and land costs Housing $ 692,787 $ 564,828 Land 5,293 3,990 Subtotal 698,080 568,818 Selling, general and administrative expenses 92,889 87,932 Total $ 790,969 $ 656,750 Interest expense: Interest incurred $ 44,394 $ 46,251 Loss on early extinguishment of debt 5,685 — Interest capitalized (43,772 ) (42,554 ) Total $ 6,307 $ 3,697 Other information: Depreciation and amortization $ 2,467 $ 2,781 Amortization of previously capitalized interest 39,384 30,682 Average selling price: West Coast $ 587,200 $ 558,800 Southwest 289,000 286,700 Central 275,500 260,200 Southeast 286,400 270,900 Total $ 364,600 $ 344,400 KB HOME SUPPLEMENTAL INFORMATIONFor the Three Months Ended February 28, 2017 and February 29, 2016
(Dollars in Thousands – Unaudited)
Three Months Ended February 28, 2017 February 29, 2016 Homes delivered: West Coast 606 508 Southwest 407 350 Central 861 765 Southeast 350 330 Total 2,224 1,953 Net orders: West Coast 826 555 Southwest 456 359 Central 960 901 Southeast 338 457 Total 2,580 2,272 Net order value: West Coast $ 583,503 $ 337,611 Southwest 131,731 107,288 Central 274,883 253,215 Southeast 95,305 126,560 Total $ 1,085,422 $ 824,674 February 28, 2017 February 29, 2016 Homes Value Homes Value Backlog data: West Coast 1,133 $ 754,511 785 $ 461,738 Southwest 853 241,917 614 174,381 Central 2,078 596,813 1,978 548,985 Southeast 712 200,323 908 248,403 Total 4,776 $ 1,793,564 4,285 $ 1,433,507KB HOMERECONCILIATION OF NON-GAAP FINANCIAL MEASURESFor the Three Months Ended February 28, 2017 and February 29, 2016(In Thousands, Except Percentages – Unaudited)
This press release contains, and Company management’s discussion of the results presented in this press release may include, information about the Company’s adjusted housing gross profit margin and ratio of net debt to capital, neither of which are calculated in accordance with generally accepted accounting principles (“GAAP”). The Company believes these non-GAAP financial measures are relevant and useful to investors in understanding its operations and the leverage employed in its operations, and may be helpful in comparing the Company with other companies in the homebuilding industry to the extent they provide similar information. However, because the adjusted housing gross profit margin and the ratio of net debt to capital are not calculated in accordance with GAAP, these financial measures may not be completely comparable to other companies in the homebuilding industry and, thus, should not be considered in isolation or as an alternative to operating performance and/or financial measures prescribed by GAAP. Rather, these non-GAAP financial measures should be used to supplement their respective most directly comparable GAAP financial measures in order to provide a greater understanding of the factors and trends affecting the Company’s operations.
Adjusted Housing Gross Profit Margin
The following table reconciles the Company’s housing gross profit margin calculated in accordance with GAAP to the non-GAAP financial measure of the Company’s adjusted housing gross profit margin:
Three Months Ended February 28, 2017 February 29, 2016 Housing revenues $ 810,947 $ 672,646 Housing construction and land costs (692,787 ) (564,828 ) Housing gross profits 118,160 107,818 Add: Amortization of previously capitalized interest (a) 38,873 30,206 Inventory-related charges (b) 4,008 1,179 Adjusted housing gross profits $ 161,041 $ 139,203 Housing gross profit margin as a percentage of housing revenues 14.6 % 16.0 % Adjusted housing gross profit margin as a percentage of housing revenues 19.9 % 20.7 %(a) Represents the amortization of previously capitalized interest associated with housing operations.
(b) Represents inventory impairment and land option contract abandonment charges associated with housing operations.
Adjusted housing gross profit margin is a non-GAAP financial measure, which the Company calculates by dividing housing revenues less housing construction and land costs excluding (1) amortization of previously capitalized interest associated with housing operations and (2) housing inventory impairment and land option contract abandonment charges (as applicable) recorded during a given period, by housing revenues. The most directly comparable GAAP financial measure is housing gross profit margin. The Company believes adjusted housing gross profit margin is a relevant and useful financial measure to investors in evaluating the Company’s performance as it measures the gross profits the Company generated specifically on the homes delivered during a given period. This non-GAAP financial measure isolates the impact that the amortization of previously capitalized interest associated with housing operations, and housing inventory impairment and land option contract abandonment charges, have on housing gross profit margins, and allows investors to make comparisons with the Company’s competitors that adjust housing gross profit margins in a similar manner. The Company also believes investors will find adjusted housing gross profit margin relevant and useful because it represents a profitability measure that may be compared to a prior period without regard to variability of amortization of previously capitalized interest associated with housing operations, and housing inventory impairment and land option contract abandonment charges. This financial measure assists management in making strategic decisions regarding community location and product mix, product pricing and construction pace.
KB HOMERECONCILIATION OF NON-GAAP FINANCIAL MEASURES(In Thousands, Except Percentages – Unaudited)
Ratio of Net Debt to Capital
The following table reconciles the Company’s ratio of debt to capital calculated in accordance with GAAP to the non-GAAP financial measure of the Company’s ratio of net debt to capital:
February 28,2017 November 30,2016 Notes payable $ 2,504,449 $ 2,640,149 Stockholders’ equity 1,736,460 1,723,145 Total capital $ 4,240,909 $ 4,363,294 Ratio of debt to capital 59.1 % 60.5 % Notes payable $ 2,504,449 $ 2,640,149 Less: Cash and cash equivalents (351,880 ) (592,086 ) Net debt 2,152,569 2,048,063 Stockholders’ equity 1,736,460 1,723,145 Total capital $ 3,889,029 $ 3,771,208 Ratio of net debt to capital 55.3 % 54.3 %The ratio of net debt to capital is a non-GAAP financial measure, which the Company calculates by dividing notes payable, net of homebuilding cash and cash equivalents, by capital (notes payable, net of homebuilding cash and cash equivalents, plus stockholders’ equity). The most directly comparable GAAP financial measure is the ratio of debt to capital. The Company believes the ratio of net debt to capital is a relevant and useful financial measure to investors in understanding the leverage employed in the Company’s operations.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170323005437/en/
KB HomeJill Peters, 310-893-7456Investor Relations Contactjpeters@kbhome.comorSusan Martin, 310-231-4142Media Contactsmartin@kbhome.com
1 Year KB Home Chart |
1 Month KB Home Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions