KB Home, one of the nation’s largest homebuilders, reported improved results Tuesday for the fourth quarter of 2014 and the entire fiscal year.
The company announced in an earnings statement that fourth-quarter revenues stood at $796 million, a 29 percent increase from last year’s fourth quarter. KB credited the increase to a greater volume of homes delivered and higher average selling prices.
“The company’s revenues have now increased on a year-over-year basis for 13 consecutive quarters,” according to the company.
KB said it delivered 2,229 homes in the fourth quarter, an increase of 9 percent from last year.
The overall average selling price of houses KB supplied to home buyers rose 17 percent to $351,500, up from $301,100 for the same period in 2013, “marking the company’s 18th straight quarter of year-over-year growth.
“The increase in the average selling price was largely due to a shift in the regional mix of homes delivered and higher home selling prices at communities located in northern California markets within the company’s West Coast homebuilding region, as well as generally favorable market conditions,” the statement said.
But the housing gross profit margin declined 60 basis points to 17.3 percent from 17.9 percent in the year-earlier quarter. Excluding the housing inventory- and warranty-related charges, the company’s fourth quarter adjusted housing gross profit margin was 18.7 percent in 2014 and 19.8 percent in 2013. The decrease occurred primarily within inland markets in the company’s West Coast homebuilding region.
Net income for the quarter totaled $852.8 million, or $8.36 per diluted share, including an income tax benefit of $824.2 million, according to KB.
For the 12-month period ending Nov. 30, 2014, the company reported revenues of $2.40 billion, up 14 percent from $2.10 billion in the year-earlier period. The company delivered 7,215 homes in fiscal 2014, up from 7,145 homes delivered in 2013.
The overall average selling price of $328,400 increased 13 percent from $291,700 in the prior year.
Net income of $918.3 million, or $9.25 per diluted share, increased significantly from $40.0 million, or $.46 per diluted share, in 2013 largely due to a tax benefit.
— City New Service