Sales, profits slip at KB Home
KB Home, one of the nation’s largest home builders, reported third quarter 2019 revenues of $1.16 billion – a 5.7% drop from revenues of $1.23 billion in the third quarter 2018.
The Los Angeles-based company also reported a third quarter net income of $68.1 million, down 22% from a net income of $87.5 million for the same period last year.
Homes delivered for the quarter increased 1.13% to 3,022 from 2,988 during the same quarter a year ago. Home orders for the period rose nearly 24% 3,325 from 2,685.
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The bottom line: While profits and sales slip, home orders are up for home building giant.
What the CEO said: “We are extremely pleased with the strength of our third quarter results, led by a 24% rise in net orders, with double-digit increases in each of our four regions. Our net order growth was driven by both significant community count expansion and a higher absorption rate, a key operational metric where we have long been an industry leader,” said Jeffrey Mezger, chairman, president and CEO. “Notably, during the quarter, we achieved a community absorption pace of 4.3 net orders per month, surpassing last year’s robust performance, while at the same time increasing prices in about 90% of our communities.”
“We expect to continue to grow our community count in 2020, and, together with our solid pace and $2.3 billion backlog, we believe we are well positioned for an excellent start to the new year,” Mezger added.
Company info: KB Home’s full third quarter 2019 report can be read here.
The Los Angeles-based company also reported a third quarter net income of $68.1 million, down 22% from a net income of $87.5 million for the same period last year.
Homes delivered for the quarter increased 1.13% to 3,022 from 2,988 during the same quarter a year ago. Home orders for the period rose nearly 24% 3,325 from 2,685.
###
The bottom line: While profits and sales slip, home orders are up for home building giant.
What the CEO said: “We are extremely pleased with the strength of our third quarter results, led by a 24% rise in net orders, with double-digit increases in each of our four regions. Our net order growth was driven by both significant community count expansion and a higher absorption rate, a key operational metric where we have long been an industry leader,” said Jeffrey Mezger, chairman, president and CEO. “Notably, during the quarter, we achieved a community absorption pace of 4.3 net orders per month, surpassing last year’s robust performance, while at the same time increasing prices in about 90% of our communities.”
“We expect to continue to grow our community count in 2020, and, together with our solid pace and $2.3 billion backlog, we believe we are well positioned for an excellent start to the new year,” Mezger added.
Company info: KB Home’s full third quarter 2019 report can be read here.