Homebuilder KB Home announced lower first- quarter earnings despite increased revenue, saying that higher land and construction costs are in part to blame.
Net income for the quarter ending. Feb. 28 totaled $7.8 million, or 8 cents per diluted share, compared to $10.6 million, or 12 cents per diluted share, in the first quarter of 2014, the Los Angeles-based company said in an earnings statement.
Revenues rose 29 percent, from $450.7 million last year to $580.1 million this year, it said, adding: “The company’s total revenues have increased on a year-over-year basis for 14 consecutive quarters.”
The overall average selling price of homes delivered in the first quarter grew 8 percent to $329,500, up from $305,200 a year ago, KB Home reported. Average selling prices grew 5 percent in the company’s West Coast region, 13 percent in the Central region, and 3 percent in the Southeast but decreased 4 percent in KB’s Southwest homebuilding region, it said.
Potential future housing revenues in backlog rose 30 percent to $1.11 billion as of Feb. 28, 2015, compared to $851.6 million on Feb. 28, 2014.
The company’s backlog on Feb. 28, 2015, consisted of 3,505 homes, up 22 percent from 2,880 homes in backlog on Feb. 28, 2014. This year’s first-quarter backlog is the biggest since 2008, KB Home said.
—Staff and wire reports