KB Home (KBH, Financial) filed Quarterly Report for the period ended 2009-08-31.
KB Home is a builder of single-family homes with domestic operations in several western states and international operations in France. Domestically the company builds innovatively designed homes which cater primarily to first-time homebuyers generally in medium-sized developments close to major metropolitan areas. Internationally the company also builds commercial projects and high density residential properties such as condominium complexes. Kb Home has a market cap of $1.41 billion; its shares were traded at around $16.05 with and P/S ratio of 0.4. The dividend yield of Kb Home stocks is 1.5%.
homes decreased 15% to $202,800 in the third quarter of 2009 from $239,700 in the corresponding quarter of 2008, reflecting year-over-year decreases in each of our homebuilding segments.
Included in our total revenues were financial services revenues of $2.1 million in the third quarter of 2009 and $2.5 million in the third quarter of 2008. Financial services revenues decreased in the three months ended August 31, 2009 mainly due to the lower number of homes we delivered in the period compared to a year ago, which reduced title and insurance services revenue.
We incurred a net loss of $66.0 million, or $.87 per diluted share, in the third quarter of 2009, compared to a net loss of $144.7 million, or $1.87 per diluted share, for the year-earlier period. The reduction in our third quarter 2009 net loss compared to the year-earlier quarter was due to a decrease in total charges for inventory and joint venture impairments and land option contract abandonments, an increase in our housing gross margin, and a decrease in our selling, general and administrative expenses. Our net loss for the three months ended August 31, 2009 included pretax, noncash charges of $47.7 million for inventory and joint venture impairments and land option contract abandonments, and $5.7 million to increase our warranty liability for allegedly defective drywall material that was or may have been installed in some of our homes. We also recorded a $35.5 million after-tax valuation allowance charge against net deferred tax assets in the third quarter of 2009 to fully reserve the tax benefits generated from our pretax loss. In the year-earlier quarter, our net loss included $82.2 million of pretax, noncash inventory and joint venture impairment charges and a $58.1 million after-tax valuation allowance charge against net deferred tax assets. Our housing gross margin in the third quarter of 2009 increased to 11.1% from 3.9% in the year-earlier quarter. Excluding inventory-related charges of $16.0 million in the 2009 third quarter and $38.5 million in the 2008 third quarter, our housing gross margin improved year-over-year to 14.6% from 9.6%, mainly due to our ongoing implementation of initiatives to roll out more cost-effective product, reduce direct construction costs and increase operating efficiencies, consistent with the principles of our KBnxt operational business model. Our selling, general and administrative expenses in the three months ended August 31, 2009 decreased 37% to $83.9 million, down from $133.2 million in the year-earlier quarter, reflecting operational consolidations and workforce reductions we have implemented over the past several quarters to reduce our overhead costs.
Total revenues for the nine months ended August 31, 2009 were $1.15 billion, down 46% from $2.11 billion in the year-earlier period. Included in our total revenues were financial services revenues of $5.3 million in the first nine months of 2009 and $7.4 million in the year-earlier period. Our net loss for the nine months ended August 31, 2009 totaled $202.5 million, or $2.64 per diluted share, including pretax, noncash charges of $129.5 million for inventory and joint venture impairments and land option contract abandonments, and an after-tax valuation allowance charge of $89.9 million against net deferred tax assets to fully reserve the tax benefits generated from our pretax loss in the period. For the nine months ended August 31, 2008, we incurred a net loss of $668.8 million, or $8.63 per diluted share, including pretax, noncash charges of $482.7 million for inventory and joint venture impairments and land option contract abandonments, and $24.6 million for goodwill impairment, and an after-tax valuation charge of $257.0 million against the net deferred tax assets generated during the period.
and no public debt maturities until 2011. Our debt balance at August 31, 2009 was $1.81 billion, down $128.7 million from the end of our 2008 fiscal year, mainly due to the maturity and repayment of the $200 Million Senior Subordinated Notes on December 15, 2008 and our purchase of $250.0 million in aggregate principal amount of 6 3/8% senior notes due 2011, partly offset by the issuance of the $265 Million Senior Notes and the addition of debt associated with previously unconsolidated joint ventures that were consolidated in the third quarter of 2009.
Read the The complete ReportKBH is in the portfolios of Charles Brandes of Brandes Investment.
KB Home is a builder of single-family homes with domestic operations in several western states and international operations in France. Domestically the company builds innovatively designed homes which cater primarily to first-time homebuyers generally in medium-sized developments close to major metropolitan areas. Internationally the company also builds commercial projects and high density residential properties such as condominium complexes. Kb Home has a market cap of $1.41 billion; its shares were traded at around $16.05 with and P/S ratio of 0.4. The dividend yield of Kb Home stocks is 1.5%.
Highlight of Business Operations:
Our total revenues of $458.5 million for the three months ended August 31, 2009 declined 33% from $681.6 million for the three months ended August 31, 2008, primarily due to a decrease in housing revenues. Housing revenues totaled $454.2 million in the third quarter of 2009, down 32% from $668.3 million in the year-earlier quarter, reflecting decreases in both the number of homes we delivered and our average selling price. We use the term home in this discussion and analysis to refer to a single-family residence, whether it is a single-family home or other type of residential property. We delivered 2,240 homes in the third quarter of 2009, down 20% from the 2,788 homes we delivered in the year-earlier quarter. The decrease was largely attributable to our Southwest and Southeast homebuilding segments, where the number of homes delivered fell 26% and 47%, respectively, on a year-over-year basis. In our West Coast homebuilding segment, the number of homes delivered in the third quarter of 2009 was down 8% from the year-earlier quarter, while in the Central homebuilding segment the number of homes delivered increased 5%. The overall average selling price of ourhomes decreased 15% to $202,800 in the third quarter of 2009 from $239,700 in the corresponding quarter of 2008, reflecting year-over-year decreases in each of our homebuilding segments.
Included in our total revenues were financial services revenues of $2.1 million in the third quarter of 2009 and $2.5 million in the third quarter of 2008. Financial services revenues decreased in the three months ended August 31, 2009 mainly due to the lower number of homes we delivered in the period compared to a year ago, which reduced title and insurance services revenue.
We incurred a net loss of $66.0 million, or $.87 per diluted share, in the third quarter of 2009, compared to a net loss of $144.7 million, or $1.87 per diluted share, for the year-earlier period. The reduction in our third quarter 2009 net loss compared to the year-earlier quarter was due to a decrease in total charges for inventory and joint venture impairments and land option contract abandonments, an increase in our housing gross margin, and a decrease in our selling, general and administrative expenses. Our net loss for the three months ended August 31, 2009 included pretax, noncash charges of $47.7 million for inventory and joint venture impairments and land option contract abandonments, and $5.7 million to increase our warranty liability for allegedly defective drywall material that was or may have been installed in some of our homes. We also recorded a $35.5 million after-tax valuation allowance charge against net deferred tax assets in the third quarter of 2009 to fully reserve the tax benefits generated from our pretax loss. In the year-earlier quarter, our net loss included $82.2 million of pretax, noncash inventory and joint venture impairment charges and a $58.1 million after-tax valuation allowance charge against net deferred tax assets. Our housing gross margin in the third quarter of 2009 increased to 11.1% from 3.9% in the year-earlier quarter. Excluding inventory-related charges of $16.0 million in the 2009 third quarter and $38.5 million in the 2008 third quarter, our housing gross margin improved year-over-year to 14.6% from 9.6%, mainly due to our ongoing implementation of initiatives to roll out more cost-effective product, reduce direct construction costs and increase operating efficiencies, consistent with the principles of our KBnxt operational business model. Our selling, general and administrative expenses in the three months ended August 31, 2009 decreased 37% to $83.9 million, down from $133.2 million in the year-earlier quarter, reflecting operational consolidations and workforce reductions we have implemented over the past several quarters to reduce our overhead costs.
Total revenues for the nine months ended August 31, 2009 were $1.15 billion, down 46% from $2.11 billion in the year-earlier period. Included in our total revenues were financial services revenues of $5.3 million in the first nine months of 2009 and $7.4 million in the year-earlier period. Our net loss for the nine months ended August 31, 2009 totaled $202.5 million, or $2.64 per diluted share, including pretax, noncash charges of $129.5 million for inventory and joint venture impairments and land option contract abandonments, and an after-tax valuation allowance charge of $89.9 million against net deferred tax assets to fully reserve the tax benefits generated from our pretax loss in the period. For the nine months ended August 31, 2008, we incurred a net loss of $668.8 million, or $8.63 per diluted share, including pretax, noncash charges of $482.7 million for inventory and joint venture impairments and land option contract abandonments, and $24.6 million for goodwill impairment, and an after-tax valuation charge of $257.0 million against the net deferred tax assets generated during the period.
and no public debt maturities until 2011. Our debt balance at August 31, 2009 was $1.81 billion, down $128.7 million from the end of our 2008 fiscal year, mainly due to the maturity and repayment of the $200 Million Senior Subordinated Notes on December 15, 2008 and our purchase of $250.0 million in aggregate principal amount of 6 3/8% senior notes due 2011, partly offset by the issuance of the $265 Million Senior Notes and the addition of debt associated with previously unconsolidated joint ventures that were consolidated in the third quarter of 2009.
Read the The complete ReportKBH is in the portfolios of Charles Brandes of Brandes Investment.
