Being more energy efficient will pay off with lower energy costs and improved home comfort. No two KB homes are the same. The minimum length of the password is 6. In May, the median sales price of a home dropped 15% year-over-year to $467,500 while simultaneously rising less than a single percentage point from April's median sales price of $466,705 . FOUNDED. Las Vegas was particularly hard-hit by last year's housing correction. Return on equity in the low double digits. Request to schedule a private in-person tour. LOS ANGELES, June 21, 2023--(BUSINESS WIRE)--KB Home (NYSE: KBH) today reported results for its second quarter ended May 31, 2023. Selling? *Advertised monthly payments assume a sales price of [#sales-price#] and includes principal, interest, taxes, insurance and estimated mortgage insurance premium only: any other fees such as HOA and lot premiums not included and will result in a greater actual monthly payment amount. KB Home is one of the largest and most recognized homebuilders in the United States, operating in 47 markets from coast to coast, and building over 670,000 quality homes in our more than 65-year history. The housing gross profit margin was 21.1%, compared to 25.3%. We are well-positioned to achieve our revenue target for 2023.. Book Value Per Share of $44.80; New Stock Repurchase Authorization of $500 Million. As the leader in energy-efficient homebuilding, KB Home was the first builder to commit to build every home to be ENERGY STAR certified, a standard that fewer than 10% of new homes nationwide meet, and has built more ENERGY STAR certified homes than any other builder. The Companys debt to capital ratio improved to 32.6%, compared to 33.4%. Albany, NY 12203-6399. Backlog and Net Orders (comparisons on a year-over-year basis, except as noted). California Finance Lenders Law License #60DBO67717; Washington Consumer Loan Company License CL-1542802. FOUNDED. 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; the execution of any securities repurchases pursuant to our board of directors authorization; material and trade costs and availability, including building materials and appliances, and delays related to state and municipal construction, permitting, inspection and utility processes, which have been disrupted by key equipment shortages; consumer and producer price inflation; changes in interest rates, including those set by the Federal Reserve, which the Federal Reserve has increased sharply in the past few quarters and may further increase to moderate inflation, and those available in the capital markets or from financial institutions and other lenders, and applicable to mortgage loans; 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 and our senior unsecured term loan; the ability or willingness of the applicable lenders and financial institutions, or any substitute or additional lenders and financial institutions, to meet their commitments or fund borrowings, extend credit or provide payment guarantees to or for us under our revolving credit facility or unsecured letter of credit facility; volatility in the market price of our common stock; home selling prices, including our homes selling prices, being unaffordable relative to consumer incomes; 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, such as a lack of adequate water supply to permit new home communities in certain areas; any failure of lawmakers to agree on a budget or appropriation legislation to fund the federal governments operations, and financial markets and businesses reactions to any such failure; government actions, policies, programs and regulations directed at or affecting the housing market (including the 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, including those resulting from regulatory guidance and interpretations issued with respect thereto; changes in U.S. trade policies, including the imposition of tariffs and duties on homebuilding materials and products, and related trade disputes with and retaliatory measures taken by other countries; disruptions in world and regional trade flows, economic activity and supply chains due to the military conflict in Ukraine, including those stemming from wide-ranging sanctions the U.S. and other countries have imposed or may further impose on Russian business sectors, financial organizations, individuals and raw materials, the impact of which may, among other things, increase our operational costs, exacerbate building materials and appliance shortages and/or reduce our revenues and earnings; the adoption of new or amended financial accounting standards and the guidance and/or interpretations with respect thereto; the availability and cost of land in desirable areas and our ability to timely and efficiently develop acquired land parcels and open new home communities; impairment, land option contract abandonment or other inventory-related charges, including any stemming from decreases in the value of our land assets; 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 and in entering into new 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 business strategies and achieve any associated financial and operational targets and objectives, including those discussed in this release or in any of our other public filings, presentations or disclosures; income tax expense volatility associated with stock-based compensation; the ability of our homebuyers to obtain homeowners insurance policies, which may depend on the ability and willingness of insurers to offer coverage in certain locations at an affordable price or at all; the ability of our homebuyers to obtain residential mortgage loans and mortgage banking services, which may depend on the ability and willingness of lenders and financial institutions to offer such loans and services to our homebuyers; the performance of mortgage lenders to our homebuyers; the performance of KBHS; the ability and willingness of lenders and financial institutions to extend credit facilities to KBHS to fund its originated mortgage loans; information technology failures and data security breaches; an epidemic or pandemic, and the control response measures that international, federal, state and local governments, agencies, law enforcement and/or health authorities implement to address it, which may precipitate or exacerbate one or more of the above-mentioned and/or other risks, and significantly disrupt or prevent us from operating our business in the ordinary course for an extended period; and other events outside of our control. See our ethics statement. Not all applicants will be approved for financing. KB. Learn more about how we build homes built on relationships by visiting kbhome.com. Gross orders were up 7% to 5,032, and increased 50% sequentially from 3,357. Those "aggressive" incentives, coupled with house price cuts, seem to be working for the giant homebuilder: On Wednesday, KB Home reported a second quarter cancellation rate of 22%. Of the Companys total lots, approximately 75% were owned and 25% were under contract, compared to 70% owned and 30% under contract. That's up from 35% in the third quarter of 2022, and up from 13% in the fourth. Receipt of application does not represent an approval for financing or interest rate guarantee. . The company reported a loss of $255.9 million, or $3.30 per share, for the three months ended May 31. During a visit to the sales office, your KB sales counselor will guide you through the model homes and answer any questions you may have along the way. We believe our orders, starts and production are well-balanced and, with the sequential increase in our backlog at quarter-end, we are well-positioned to achieve our revenue target for 2023. On Wednesday, KB Home reported that its cancellation rate was 36% in the first quarter of 2023. Austin Rebates On Rebate on New Construction Purchase Rebate on Pre-Owned Home Purchase Discounted Listings Reviews Google Reviews FAQ APPLY FOR REBATE New KB Homes Rebate Receive 2.5% Of The Total Sale Price Back At Closing On Any New KB Homes Home Anywhere In The State of Texas! This One Checks All The Boxes! KB Home (NYSE:NYSE:KBH) Q1 2023 Earnings Conference Call March 22, 2023 5:00 PM ETCompany ParticipantsJill Peters - Senior Vice President of Investor RelationsJeffrey Mezger - Chairman,. 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 housing inventory impairment and land option contract abandonment charges. Jobs. Image source: The Motley Fool. Air Carrier Incentive Program; Airport Compliance Guidance & Policy; Airport Compliance Manual; . Housing gross profit margin in the range of 20.5% to 21.5%, assuming no inventory-related charges. . Open Monday - Friday. . Thats because every home is uniquely built for each customer, at a price that fits their budget. On a sequential basis, net orders and net order value grew 84% and 90%, respectively. March 10, 2023 ICMS #: 2023-0191 On March 6, 2023, the OPO received an online complaint. 1 291 Ratings by Category Overall 4.5 Quality 4.3 Trustworthiness 4.5 Value 4.5 Responsiveness 4.4 Filter by Area Sort by Well done Longina Dauag D. Verified HomeBuyer June 23, 2023 Phoenix, AZ A great job was done by all involved Total Score Quality Trustworthiness Value Responsiveness My team was awesome! Heres the long winded answer: During the Pandemic Housing Booma time withseemingly unlimited housing demandbuilders like KB Home achieved frothy profit margins as they quickly raised new house prices. KB HOME REBATE PROCESS Among publicly traded homebuilders, KB Home got hit the hardest by the so-called housing correction. Prices, terms, promotions, features, options, amenities, floor plans, elevations, designs, materials, square footages, associations fees, and descriptions are subject to change without notice. Visit a KB Home community this 4th of July weekend! 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. Builders have taken their medicine for the most part right now on pricing. The Companys financial services pretax income decreased to $11.4 million, from $18.7 million. First, the national U.S. housing market stabilized this spring, as a shortage of existing home inventory and seasonality did just enough to put the market back into equilibrium. # 1. That figure dwarfed the publicly traded homebuilders 13% cancellation rate from the previous years period. By continuing to use this site, you acknowledge our privacy . A KB sales counselor will walk you through a home one-on-one. Our gross margin declined as we adjusted the price of both our new home sales and homes in [the] backlog to market to promote deliveries and reduce cancellation rates, Stuart Miller, executive chairman of Lennar,told investors earlier this month. Offers may be subject to change without notice. The cancellation rate as a percentage of gross orders was 36%, compared to 11%. The most directly comparable GAAP financial measure is housing gross profit margin. . The improvement in [housing] demand we started to see in February was sustained throughout our second quarter, as we achieved monthly sequential increases in our net orders, Mezger told investors on Wednesday. With this option, you'll connect via video conferencing with one of our team members who will guide you through a home just as they would in person, answering any questions you may have along the way. All Rights Reserved. The following table reconciles the Companys housing gross profit margin calculated in accordance with GAAP to the non-GAAP financial measure of the Companys adjusted housing gross profit margin: Represents inventory impairment and land option contract abandonment charges associated with housing operations. You can also view our San Antonio New Home Builder Directory. KB Home Reports 2023 First Quarter Results. KB Home 126 Reviews. Homebuilding operating income as a percentage of revenues of about 11.0%, assuming no inventory-related charges. The housing gross profit margin was 21.5%, compared to 22.4%. The Company continued to moderate its land investments in response to soft housing market conditions, with land and land development expenditures for the quarter decreasing 48% to $367.0 million, compared to $704.7 million for the year-earlier quarter. View source version on businesswire.com: https://www.businesswire.com/news/home/20230621876153/en/, Jill Peters, Investor Relations Contact(310) 893-7456 or jpeters@kbhome.com Cara Kane, Media Contact(321) 299-6844 or ckane@kbhome.com, https://www.businesswire.com/news/home/20230621876153/en/, First trial over Zantac cancer claims set for November, New Jersey governor considers 5-year extension of internet gambling, Fidelity Leads Flurry of Bitcoin ETF Refilings to Answer SEC. Thats far below the peak of 24.6% hit in October, and just slightly above the 7.3% hit at the height of the Pandemic Housing Boom in February 2022. On one hand, thats still an elevated share of sales under contract being cancelled. Forward-Looking and Cautionary Statements. Scenario assumes borrower qualifies for a conforming [non-conforming] 30-year fixed-rate mortgage loan of [#mortgage-loan#] with interest rate of [#interest-rate#] and APR of [#apr#] for the life of the loan and pays 20% down payment. Market Cap Today's Change (4.22%) $1.85 Current Price $45.68 Price as of June 2, 2023, 4:00 p.m. No two KB homes are the same. (PDF 245 KB) FASB proposes improvements to income tax disclosures.
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