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KB Home has released its earnings report for the fourth quarter and fiscal year ended Nov. 30, with total revenues for the year up 34% and net income up significantly since last year's loss.
Revenues for the fiscal year came in at $2.10 billion, compared to $1.56 billion in 2012. This is due in part to a 14% increase in homes delivered and an increase in the average selling price, which rose 18% to $291,700.
Meanwhile, 2013's net income of $40.0 million was a marked improvement from 2012's net loss of $59.0 million. This is the first year since 2006 that KB Home has generated positive full-year net income.
“Our fourth quarter results provided a solid finish to 2013 with both revenues and profits up from the prior year,” said Jeffrey Mezger, president and CEO. “We also posted full-year net income for the first time in several years...The catalyst for this progress has been an ongoing strategic shifting of our operations to higher-performing markets across the country. The favorable impact of this approach was most evident in California, where our average selling price for the quarter increased 29% from a year ago to $524,200. Our results for the fourth quarter and full year reinforce our belief that we have the right strategies in place to create long-term value for our stockholders as the housing recovery progresses.”
For the three months ended Nov. 30, revenues were up 7% to $618.5 million year-over-year, which was riding on double-digit increases in the Southwest, Central and Southeast markets (offset by a decrease on the West Coast). Net income for the quarter was up even more significantly ($28.1 million, up from $7.7 million in the fourth quarter of 2012).
Net income increased to $28.1 million, or $.31 per diluted share, compared to $7.7 million, or $.10 per diluted share, in the fourth quarter of 2012.