KB Home's revenues up 29% in Q3
KB Home reported growth in both revenue and income for the third quarter, with total revenue up 29% to $549 million, compared with a third-quarter 2012 reading of $424.5 million.
The average selling price of a home increased 22% to $299,100, year-over-year. This represents 13 consecutive quarters of year-ago gains.
Net income increased to $27.3 million, up drastically from year-ago figures of $3.3 million. When considering the nine-month period ended Aug. 31, net income went from a loss of $66.7 million in 2012 to a positive net of $11.8 million this year.
The company partially attributed the growth to its investment in land-constrained growth markets in higher-income areas.
"The fundamentals of the current housing recovery are firmly in place, supported by low inventory levels, an improving economy and positive demographic trends," said president and CEO Jeffrey Mezger. "Given these factors, we believe that the recent slower pace of the recovery caused by an uptick in mortgage interest rates is a temporary effect, and we expect to see steady upward demand for housing as consumers adjust to both higher rates and pricing. In balancing community count, sales pace and margin expansion in this environment, our revenues and net income improved substantially during the third quarter, while our net orders moderated. Nonetheless, we believe there is tremendous potential in our served markets and that we are well-positioned for future growth."