KB Home(KBH)2024-06-18 20:18Revenue Performance - Revenues for Q2 2024 totaled $1.71 billion, a decrease from $1.77 billion in Q2 2023[4] - Total revenues for the three months ended May 31, 2024, were $1,709,813, a decrease of 3.1% compared to $1,765,316 in the same period of 2023[16] - Homebuilding revenues for the three months ended May 31, 2024, were $1,701,512, down 3.2% from $1,757,846 in 2023[21] Earnings and Profitability - Diluted earnings per share increased by 11% to $2.15, reflecting a net income rise of 2% to $168.4 million[8] - Net income for the three months ended May 31, 2024, was $168,419, an increase of 2.4% from $164,442 in 2023[16] - Basic earnings per share for the three months ended May 31, 2024, were $2.21, compared to $2.00 in 2023, reflecting a 10.5% increase[16] - Homebuilding operating income margin was 11.1%, slightly down from 11.5% year-over-year[4] - Adjusted housing gross profit margin for the three months ended May 31, 2024, was 21.2%, slightly down from 21.4% in 2023[25] Orders and Deliveries - Net orders rose by 2% to 3,997, with net order value increasing by 7% to $2.03 billion[8] - Total net orders for the three months ended May 31, 2024, were 3,997, an increase of 1.5% compared to 3,936 in 2023[23] - Homes delivered in the three months ended May 31, 2024, totaled 3,523, a decrease of 3.9% from 3,666 in 2023[23] Financial Services - Financial services pretax income increased by 16% to $13.3 million, driven by higher loan originations[4] Shareholder Returns - The company repurchased 764,742 shares for a total cost of $50 million in Q2 2024, with a total of $100 million spent in the first half of 2024[12] - The company plans to increase its quarterly cash dividend to $0.25 per share from $0.20 per share[12] Guidance and Outlook - Guidance for full-year 2024 includes revenues between $6.70 billion and $6.90 billion, with an average selling price range of $485,000 to $495,000[12] Asset and Liquidity Position - Total liquidity as of May 31, 2024, was $1.73 billion, including $643.5 million in cash[8] - Total assets as of May 31, 2024, were $6,805,680, an increase from $6,648,362 as of November 30, 2023[19] Backlog and Inventory - Backlog homes as of May 31, 2024, totaled 6,270 with a value of $3,122,135, compared to 7,286 homes valued at $3,456,693 in 2023, indicating a decrease in both homes and value[23] Non-GAAP Financial Measures - Adjusted housing gross profit margin is a non-GAAP financial measure calculated by dividing housing revenues less housing construction and land costs by housing revenues[26] - The Company believes adjusted housing gross profit margin is relevant for evaluating performance as it isolates the impact of housing inventory impairment and land option contract abandonment charges[26] - This financial measure assists management in making strategic decisions regarding community location, product mix, product pricing, and construction pace[26]