L.A. Based KB Homes Posts Big Third Quarter Losses
By City News Service
KB Home, the Los Angeles-based homebuilder, reported a net loss of $9.6 million, or 13 cents per diluted share, in the third quarter, compared to a net loss of $1.4 million, or 2 cents per diluted share, for the corresponding period of 2010.
For the nine-month period that ended Aug. 31, the company posted a net loss of $192.7 million, or $2.50 per diluted share, vs. a net loss of $86.8 million, or $1.13 per diluted share, in the comparable period of 2010.
Third quarter revenues totaled $367.3 million, down 27 percent from $501 million in the third quarter of 2010. The drop was mainly due to a decline in housing revenues, reflecting a 31 percent year-over-year decrease in the number of homes delivered to 1,603, which was partly offset by a 6 percent year-over-year increase in the average selling price to $227,400, the company reported Sept. 23.
The company’s debt balance was $1.59 billion, down $188.8 million from $1.78 billion at the end of last November, largely due to the repayment of $100 million in senior notes upon their Aug. 15 maturity.
Company-wide net orders increased 40 percent to 1,838 in the third quarter from 1,314 in the corresponding period of 2010. As of Aug. 31, the company had 2,657 homes in backlog, representing projected future housing revenues of $559.3 million, compared to a backlog of 2,169 homes in the comparable year-ago period
KB Home, which was founded in 1957, is one of the largest homebuilding companies in the United States.
September 29, 2011 Copyright © 2012 Eastern Group Publications, Inc.