KB Home (NYSE:KBH) Q1 2021 Results Conference Call March 24, 2021 5:00 PM ET Company Participants Jill Peters - SVP, IR Jeff Mezger - Chairman, President and CEO Matt Mandino - EVP and COO Jeff Kaminski - EVP and CFO Bill Hollinger - SVP and Chief Accounting Officer Thad Johnson - SVP and Treasurer Conference Call Participants Truman Patterson - Wolfe Research Matthew Bouley - Barclays Stephen Kim - Evercore Alan Ratner - Zelman & Associates Susan Maklari - Goldman Sachs John Lovallo - Bank of America Micha ...

KB Home (NYSE:KBH) Q4 2020 Earnings Conference Call January 12, 2021 5:00 PM ET Company Representatives Jeff Mezger - Chairman, President, Chief Executive Officer Matt Mandino - Executive Vice President, Chief Operating Officer Jeff Kaminski - Executive Vice President, Chief Financial Officer Bill Hollinger - Senior Vice President, Chief Accounting Officer Thad Johnson - Senior Vice President, Treasurer Jill Peters - Senior Vice President, Investor Relations Conference Call Participants John Lovallo - Bank ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended August 31, 2020. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from [ ] to [ ]. Commission File No. 001-09195 KB HOME (Exact name of registrant as specified in its charter) Delaware 95-3666267 (State of incorporation) (IRS employer i ...

KB Home (NYSE:KBH) Q3 2020 Earnings Conference Call September 22, 2020 5:00 PM ET Company Participants Jill Peters - SVP, IR Jeff Mezger - Chairman, President and CEO Matt Mandino - EVP and COO Jeff Kaminski - EVP and CFO Bill Hollinger - SVP and Chief Accounting Officer Thad Johnson - SVP and Treasurer Conference Call Participants Matt Bouley - Barclays Stephen Kim - Evercore ISI Alan Ratner - Zelman & Associates Truman Patterson - Wells Fargo John Lovallo - Bank of America Buck Horne - Raymond James Mike ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock (par value $1.00 per share) KBH New York Stock Exchange Rights to Purchase Series A Participating Cumulative Preferred Stock New York Stock Exchange Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly p ...

Financial Data and Key Metrics Changes - In Q2 2020, total revenues were $914 million, with diluted earnings per share of $0.55, representing an 8% year-over-year growth [8][29] - The housing gross profit margin increased by 100 basis points year-over-year to 18.2%, contributing to a 19% increase in pretax income [9][31] - The leverage ratio improved by 430 basis points year-over-year to 41.5%, with a net ratio of 32.4% [9] Business Line Data and Key Metrics Changes - The company delivered 2,500 homes during the quarter, a decrease in the number of homes delivered by 10% year-over-year [28][29] - The average selling price of homes delivered was approximately $364,000, slightly down year-over-year, but expected to increase in the second half of the year [30][31] - Homebuilding operating income decreased slightly to $51.6 million, but the operating income margin increased by 60 basis points to 5.7% [31] Market Data and Key Metrics Changes - Gross orders declined by 4% year-over-year in March, with a significant drop of about 60% in April, but began to recover in May as markets reopened [15][16] - The cancellation rate increased to 43% in Q2, primarily affecting homes that had not yet been started [20] - The company ended the quarter with a backlog of 5,800 buyers, with a backlog value of $1.9 billion, a decrease of 12% year-over-year [19][29] Company Strategy and Development Direction - The company remains committed to a built-to-order strategy, which allows for alignment with demand and minimizes inventory risk [25][26] - The company has enhanced its virtual selling capabilities, allowing customers to engage in the home buying process remotely [12][55] - The focus is on maintaining a strong balance sheet and enhancing liquidity while navigating through the uncertainties posed by COVID-19 [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to restore higher volume delivery levels and improve efficiency as the market stabilizes [8][27] - The company anticipates housing revenues for Q3 2020 to be in the range of $820 million to $880 million, with full-year revenues projected between $3.75 billion and $3.95 billion [29] - Management acknowledged the risks associated with the ongoing pandemic but remains optimistic about the recovery and future opportunities [27][41] Other Important Information - The company increased its cash balance by $145 million sequentially and by nearly $450 million year-over-year, ending the quarter with $1.4 billion in liquidity [13][40] - The joint venture's capture rate increased to 76%, driving income up about 90% year-over-year [22] Q&A Session Summary Question: Orders and Market Trends - A participant inquired about the lighter orders in Q2 and June, suggesting the company may have been more aggressive in scrubbing the backlog and closing communities [44] - Management responded that the aggressive approach was necessary to ensure the viability of homes being built, and noted that orders strengthened in June [46] Question: Incentives and Demand - A follow-up question addressed the trend of incentives and demand in June [47] - Management indicated that incentives remained low and that demand was solid, with prices raised in about 60% of communities [49] Question: Built-to-Order Strategy - A participant asked about the impact of the built-to-order strategy on cancellations and orders [51] - Management confirmed that cancellations were primarily on homes not yet started, and that built-to-order homes performed better than inventory homes [52] Question: Virtual Selling Capabilities - A question was raised regarding the company's virtual home selling capabilities and the percentage of orders completed online [54] - Management acknowledged a significant number of homes sold virtually and expressed optimism about refining the business model to leverage these tools [55] Question: Cancellations and Employment Status - A participant inquired about the reasons behind cancellations and the employment status of buyers [67] - Management noted that the largest driver of cancellations was job loss or long-term furloughs, but did not foresee another wave of unemployment impacting the current backlog [68] Question: Revenue Guidance and Backlog Conversion - A question was posed about the revenue guidance for Q3 and potential bottlenecks in construction [70] - Management explained that while cycle times have lengthened for permits, build times have remained stable, and they are focused on clearing the backlog [73] Question: Demand Characterization - A participant asked about the sources of recent demand increases, particularly regarding first-time buyers and relocations [74] - Management noted an increase in first-time buyers and some relocation trends due to remote work opportunities [75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock (par value $1.00 per share) KBH New York Stock Exchange Rights to Purchase Series A Participating Cumulative Preferred Stock New York Stock Exchange Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly p ...

Financial Data and Key Metrics Changes - The company reported a 34% increase in housing revenues year-over-year, reaching $1.1 billion, driven by a 28% rise in homes delivered and a 5% increase in overall average selling price [19][20] - Homebuilding operating income rose 92% year-over-year to $60.2 million, with an operating margin improvement of 170 basis points to 5.6% [20][21] - Net income for the quarter increased by 99% year-over-year to $59.7 million, with diluted earnings per share more than doubling to $0.63 [21][22] - The leverage ratio improved to 41.7%, a 60 basis point improvement from the end of the previous fiscal year [23][24] Business Line Data and Key Metrics Changes - The backlog at the end of the first quarter increased to 5,821 homes valued at $2.1 billion, up 28% year-over-year [13] - The cancellation rate remained healthy at 17% quarter-to-date, indicating strong buyer commitment [12][21] - The company maintained a built-to-order model, which aligns production with demand and minimizes inventory risk [13][26] Market Data and Key Metrics Changes - The company experienced a 7% increase in net orders relative to the prior year for the first two weeks of March, but this turned to a cumulative 5% decline by the end of the month due to COVID-19 impacts [11][12] - Website visits increased nearly 50% in March, with conversions to sales leads up over 20% compared to the prior year [8][10] Company Strategy and Development Direction - The company is focused on maintaining a solid balance sheet and liquidity, with over $1.2 billion in liquidity and no goodwill on the balance sheet [10][24] - The strategy includes curtailing land acquisition and development in response to market uncertainties while continuing to engage with buyers in backlog [15][40] - The company emphasizes a built-to-order model to enhance flexibility and mitigate risks during market disruptions [26][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate through the current health crisis, citing a strong financial position and effective operational strategies [26][19] - The management team is closely monitoring market conditions and adapting strategies as necessary, with a focus on maintaining cash flow and managing costs [15][40] - There is an expectation of strong demand for homeownership post-crisis, as buyers seek safety and security in their living situations [57][58] Other Important Information - The company has shifted to virtual sales tools and appointment-only visits to ensure safety during the pandemic [7][8] - The management team highlighted the importance of maintaining relationships with land sellers and developers to manage business effectively during disruptions [15][40] Q&A Session Summary Question: Can you discuss the backlog and delivery plans? - Management indicated that the backlog typically represents a 5 to 5.5 months' supply of deliveries and that they are actively working to complete homes and facilitate closings [30][31] Question: How is the mortgage market affecting closings? - Management reported that they are currently able to close homes without issues, despite some changes in the mortgage market [34] Question: How are you managing land spend during this time? - The company is pulling back on land investments and focusing on maintaining flexibility in commitments while monitoring market conditions [40][41] Question: What is the approach to pricing in the current environment? - Management stated that they do not see an urgency to adjust pricing at this time, as demand remains stable and they have a solid backlog [54][55] Question: How are you addressing potential buyer cancellations due to unemployment? - Management is proactively reaching out to buyers in backlog to understand their situations and maintain engagement [78][79]