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KB Home(KBH) - 2024 Q4 - Annual Report
KBHKB Home(KBH)2025-01-24 21:26
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Backlog and Revenue Distribution - Ending backlog as of November 30, 2024, includes homes under sales contract but not yet delivered, representing potential future housing revenues[46] - Net orders distribution in 2024: Q1 25%, Q2 30%, Q3 24%, Q4 21%[50] - Homes delivered distribution in 2024: Q1 21%, Q2 25%, Q3 26%, Q4 28%[50] - Housing revenues distribution in 2024: Q1 21%, Q2 25%, Q3 25%, Q4 29%[50] Employee Statistics - Company had 2,384 full-time employees as of November 30, 2024, up from 2,205 in 2023[51] - Turnover rate in 2024 was 18%, with 15% voluntary and 3% involuntary turnover[52] Sustainability and Energy Efficiency - Company achieved over 200,000 ENERGY STAR certified new homes built by 2024, more than any other builder in the nation[63] - ENERGY STAR certified homes save homeowners an estimated average of 1,400annuallyonutilitybillscomparedtotypicalresalehomes[64]−MostmodelhomesandsalesofficesinCaliforniawerepoweredbysolarenergyasofNovember30,2024[65]−All−electrichomesproduceapproximately3,800poundslessCO2peryearcomparedtodual−fuelhomes[65]−ThecompanyachievedaHERSIndexscoreof45in2024,ayearearlierthanthe2025target,reducingGHGemissionsby0.5metrictonsperyearor81,400 annually on utility bills compared to typical resale homes[64] - Most model homes and sales offices in California were powered by solar energy as of November 30, 2024[65] - All-electric homes produce approximately 3,800 pounds less CO2 per year compared to dual-fuel homes[65] - The company achieved a HERS Index score of 45 in 2024, a year earlier than the 2025 target, reducing GHG emissions by 0.5 metric tons per year or 8% compared to the 2020 baseline of 6 metric tons per year[66] - Over 26,000 WaterSense labeled and Water Smart homes have been built, with 1.2 million WaterSense labeled fixtures installed, saving an estimated 2.1 billion gallons of water annually[70] - The company committed to building WaterSense labeled homes in all future Arizona, California, and Nevada communities starting July 2022[69] - WaterSense labeled products used in homes are at least 20% more water-efficient compared to non-labeled products[68] Awards and Recognitions - The company received the 2024 ENERGY STAR Market Leader Awards, setting a new industry record with 30 awards, more than any other homebuilder[71] - The company was the only national homebuilder to receive the 2024 WaterSense Sustained Excellence Award, marking the 14th consecutive year of recognition[71] - The company was named to Newsweek's 2025 list of America's Most Responsible Companies, the only homebuilder to make the list five years in a row[71] - The company was ranked in the top five percent of USA Today's 2024 List of America's Climate Leaders, the highest-ranked homebuilder[71] Corporate Governance - The company's board of directors is 90% independent, with 50% being women or racial/ethnic minorities, and an average tenure of approximately seven years[78] Debt and Interest Rate Management - The company does not use interest rate derivative instruments to manage exposure to changes in interest rates[300] - Fixed rate debt obligations for 2027 and 2029 are 300,000 each, with a total fixed rate debt of 1,340,000asofNovember30,2024[301]−Variableratedebtis1,340,000 as of November 30, 2024[301] - Variable rate debt is 360,000 with a weighted average effective interest rate of 6.0% as of November 30, 2024[301] - Each 100 basis-point increase in the interest rate would increase the interest incurred by approximately 3.6millionperyearforvariableratedebt[301]−Fixedratedebtobligationsfor2027andthereafterare3.6 million per year for variable rate debt[301] - Fixed rate debt obligations for 2027 and thereafter are 300,000 and 1,040,000respectively,withatotalfixedratedebtof1,040,000 respectively, with a total fixed rate debt of 1,340,000 as of November 30, 2023[304] - Variable rate debt is $360,000 with a weighted average effective interest rate of 6.8% as of November 30, 2023[304] - KBHS manages interest rate risk through best efforts forward sale commitments with secondary market investors[306] - KBHS does not engage in speculative or trading derivative activities, and its entire loan portfolio is held for sale[306] Market and Operational Risks - The company's operational and investment concentration is in California markets, with a focus on first-time homebuyers and higher-income consumers[302] - The company faces risks related to income tax expense volatility associated with stock-based compensation[303] - The company is exposed to risks from information technology failures and data security breaches[303]