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| KB Home announces fourth quarter and full year results KB Home, one of the largest homebuilders in the United States and France, reported financial results for its fourth quarter and year ended November 30, 2006. Revenues totaled $3.55 billion in the fourth quarter of 2006, up 13% from $3.15 billion in the year-earlier quarter, reflecting a 9% increase in housing revenues driven by 5% growth in unit delivery volume and a 4% increase in the average selling price. The сompany incurred a net loss of $49.6 million, or $.64 per diluted share, in the 2006 fourth quarter, reflecting previously announced pretax non-cash charges of $343.3 million related to inventory and joint venture impairments, and the abandonment of land option contracts. In the fourth quarter of 2005, the Company reported net income of $304.4 million, or $3.44 per diluted share. For year ended November 30, 2006, total revenues increased 17% to $11.00 billion, up from $9.44 billion in 2005. New home deliveries rose 5% to 39,013 units in 2006, up from 37,140 units in 2005. The Company recorded pretax non-cash impairment charges and land option contract write-offs totaling $431.2 million in 2006, which contributed to a 41% decrease in net income to $482.4 million for the year, down from $823.7 million in 2005. Diluted earnings per share decreased 38% to $5.82 in 2006 from $9.32 per diluted share in 2005. Deteriorating market conditions during 2006 prompted KB Home to reduce its inventory positions, adopt a selective approach to potential new land acquisitions, and preserve resources to position itself strategically for an eventual housing market recovery. As a result of these measures, the сompany generated substantial cash flow from operations during the second half of 2006. KB Home ended 2006 in sound financial shape, with $639.2 million of cash and no borrowings outstanding on its revolving credit facility. Backlog totaled 17,384 units at November 30, 2006, representing potential future housing revenues of $4.43 billion. This was a 34% decrease from $6.76 billion in backlog value at November 30, 2005. Net orders decreased 38% in the fourth quarter of 2006 to 6,059 from 9,747 in the year-earlier quarter, primarily due to higher contract cancellations by buyers. The cancellation rate in the fourth quarter of 2006 was 48%, up from 31% in the fourth quarter of 2005 but down from 53% in the third quarter of 2006. write your comments about the article :: © 2007 Construction News :: home page |