KB Home(US:KBH)2024-01-18 16:00Workforce and Employee Management - As of November 30, 2023, the company had approximately 2,205 full-time employees, down from 2,366 in 2022, with a turnover rate of 27% in 2023 compared to 21% in 2022[52] - The company’s workforce diversity includes approximately 42% females and 37% ethnic and racial minorities as of November 30, 2023[58] - The company’s training platform, KBU, provided over 28,169 courses completed by employees in 2023, averaging approximately 13 courses per employee[59] - The company’s leadership team has an average tenure of 21 years, contributing to consistency in management and company culture[55] Financial Performance and Debt Management - The company has total fixed rate debt of $1.34 billion as of November 30, 2023, with a fair value of $1.26 billion[314] - The weighted average effective interest rate for fixed rate debt is 5.9%[314] - The company has variable rate debt of $360 million, with a weighted average effective interest rate of 6.8%[314] - A 100 basis-point increase in the interest rate would increase annual interest expenses by approximately $3.6 million[314] - The company does not use interest rate derivative instruments to manage exposure to interest rate changes[313] - KBHS, the financial services joint venture, manages interest rate risk through best efforts forward sale commitments[318] - The company’s unconsolidated joint ventures' debt is not included in the primary debt tables[317] - The company intends to provide financial reports free of charge upon request, enhancing transparency for investors[89] - The investor relations website serves as the primary source for financial and operational performance updates[89] - The company does not engage in speculative or trading derivative activities related to its lending operations[318] Construction and Delivery Performance - The backlog at the end of the period consists of homes under contract but not yet delivered, influenced by cancellations, deliveries, and community count[46] - In 2023, net orders increased by 19% in Q1, 36% in Q2, 28% in Q3, and 17% in Q4, while homes delivered increased by 21% in Q1, 28% in Q2, 25% in Q3, and 26% in Q4[51] Sustainability and Environmental Initiatives - The company has built over 188,000 ENERGY STAR certified homes since 2000, achieving an average energy efficiency improvement of 20% compared to local code homes[66] - The average annual savings for homeowners in utility bills is estimated at $1,400 compared to typical resale homes[66] - The company’s sustainability initiatives are guided by a National Advisory Board established in 2009, focusing on energy efficiency and reducing greenhouse gas emissions[64] - The company aims to reduce GHG emissions from homes built in 2025 by 0.5 metric tons per year, or 8%, from the estimated 6 metric tons per year average for homes built in 2020, targeting a HERS Index score reduction from 50 to 45 by 2025[67] - Over 20,000 homes with solar-paneled power systems have been delivered, producing an estimated total of 860 million kilowatt hours of electrical power; in 2023, over 3,000 solar homes were built in California, representing approximately 100% of homes built in the state that year[68] - Approximately 38% of total homes delivered in 2023 were all-electric, producing about 3,800 pounds less CO per year compared to dual-fuel homes[70] - In 2023, more than 2,800 WaterSense labeled homes were built, compared to 1,760 in 2022, contributing to an estimated savings of 1.7 billion gallons of water per year[74] - The company has received 29 ENERGY STAR Market Leader Awards in 2023, setting a new industry record for energy-efficient homes[76] - The company was recognized as the highest-ranked homebuilder on Newsweek's 2023 list of America's Climate Leaders, based on annualized reductions in emission intensity[77] - The company has committed to using WaterSense labeled products, which use at least 20% less water compared to non-labeled products, and aims for homes to be at least 30% more water efficient than typical new homes[73] - The company has implemented high-performance ventilation systems and MERV-13 rated air filters in all new homes since mid-2021 to improve indoor air quality[70] - The company has a Supplier Code of Conduct that encourages suppliers to operate in an environmentally responsible manner and minimize waste[82] - The company has partnered with local nonprofits to contribute to community initiatives, including planting 50 million trees in collaboration with the National Forest Foundation[81]