Total Revenues Up 30% to $811 Million; Net Income Increases 63% to
$16 Million
Net Order Value Increases 14% to $1.20 Billion
LOS ANGELES--(BUSINESS WIRE)--
KB Home (NYSE: KBH) today reported results for its second quarter ended
May 31, 2016.
"We delivered a strong second quarter performance," said Jeffrey Mezger,
president and chief executive officer. "We generated considerable
increases in deliveries and revenues, and posted a substantial
improvement in earnings, despite charges related to our strategic
decision to transition out of the Metro Washington, D.C. area. Our
second quarter results reflect the success of our targeted positioning
in attractive growth markets and the distinctive home-buying experience
we offer to consumers."
"We are encouraged by the continued improvement in housing market
conditions across the country and by the recent increase in
participation from first-time homebuyers, historically our primary
customer segment," said Mezger. "We believe we are particularly
well-positioned to leverage our strength in serving the demand from this
demographic with dynamic product offerings. With favorable market trends
and our financial and operational progress in the first half of the
year, we have positive momentum in our business heading into the
remainder of 2016."
Three Months Ended May 31, 2016 (comparisons on
a year-over-year basis)
-
Total revenues rose 30% to $811.1 million.
-
Housing revenues increased 33% to $807.4 million.
-
Deliveries grew 30% to 2,329 homes, reflecting double-digit increases
in all four of the Company's regions.
-
Average selling price increased 2% to $346,700.
-
Housing gross profit margin decreased 50 basis points to 15.5%,
reflecting approximately 80 basis points of inventory-related charges.
-
Adjusted housing gross profit margin, which excludes the
amortization of previously capitalized interest and
inventory-related charges, improved 40 basis points to 20.7%.
-
Selling, general and administrative expenses improved 140 basis points
to 11.6% of housing revenues.
-
Homebuilding operating income increased 45% to $25.9 million despite
total inventory impairment and land option contract abandonment
charges of $11.7 million, of which $6.8 million related to the
Company's wind down of its Metro Washington, D.C. operations.
Inventory-related charges in the year-earlier quarter totaled $.5
million.
-
Homebuilding operating income margin improved 30 basis points to
3.2%. Excluding inventory-related charges, homebuilding operating
income margin rose 170 basis points to 4.7%.
-
Pretax income increased 96% to $24.8 million.
-
Income tax expense of $9.2 million was favorably impacted by $.4
million of federal energy tax credits earned from building
energy-efficient homes and represented an effective tax rate of 37.1%.
-
Net income rose 63% to $15.6 million and earnings per diluted share
increased to $.17, with both metrics unfavorably impacted by
inventory-related charges.
Six Months Ended May 31, 2016 (comparisons on a
year-over-year basis)
-
Total revenues increased 24% to $1.49 billion.
-
Deliveries rose 27% to 4,282 homes.
-
Average selling price increased 3% to $345,600.
-
Land sale revenues totaled $4.2 million, compared to $68.9 million.
-
Homebuilding operating income rose 39% to $44.9 million.
-
Net income increased 65% to $28.7 million and earnings per diluted
share advanced to $.31 from $.18.
Backlog and Net Orders (comparisons on a
year-over-year basis)
-
Ending backlog value grew 14% to $1.83 billion, reflecting increases
in all regions.
-
Homes in backlog rose 10% to 5,205.
-
Net order value for the quarter grew 14% to $1.20 billion.
-
Net orders for the quarter increased 8% to 3,249.
-
The cancellation rate as a percentage of beginning backlog for the
quarter improved to 21% from 25%, and as a percentage of gross orders
improved to 21% from 22%.
-
Average community count for the quarter decreased 2% to 242.
Balance Sheet (as of May 31, 2016)
-
Cash, cash equivalents and restricted cash totaled $278.4 million.
-
Inventories totaled $3.53 billion, with investments in land
acquisition and development totaling $702.6 million for the six months
ended May 31, 2016.
-
Lots owned or controlled totaled 47,283, of which 82% were owned.
-
There were no cash borrowings outstanding under the unsecured
revolving credit facility.
-
Average diluted shares outstanding for the quarter were reduced 7%
from the year-earlier quarter to 94.7 million, reflecting repurchases
of nearly 8.4 million shares of common stock during the 2016 first
quarter at a total cost of $85.9 million. No shares were repurchased
in the 2016 second quarter.
Earnings Conference Call
The conference call to discuss the Company's second quarter 2016
earnings will be broadcast live TODAY at 2:00 p.m. Pacific Daylight
Time, 5:00 p.m. Eastern Daylight Time. To listen, please go to the
Investor Relations section of the Company's website at www.kbhome.com.
About KB Home
KB Home is one of the largest and most recognized homebuilders in the
United States and an industry leader in sustainability, building
innovative and highly energy- and water-efficient new homes. Founded in
1957 and the first NYSE-listed homebuilder (ticker symbol: KBH), the
company has built nearly 600,000 homes for families from coast to coast.
Distinguished by its personalized homebuilding approach, KB Home lets
each buyer choose their lot location, floor plan, décor choices, design
features and other special touches that matter most to them. To learn
more about KB Home, call 888-KB-HOMES, visit www.kbhome.com or
connect on Facebook.com/KBHome
or Twitter.com/KBHome.
Forward-Looking and Cautionary Statements
Certain matters discussed in this press release, including any
statements that are predictive in nature or concern future market and
economic conditions, business and prospects, our future financial and
operational performance, or our future actions and their expected
results are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on current expectations and projections about
future events and are not guarantees of future performance. We do not
have a specific policy or intent of updating or revising forward-looking
statements. Actual events and results may differ materially from those
expressed or forecasted in forward-looking statements due to a number of
factors. The most important risk factors that could cause our actual
performance and future events and actions to differ materially from such
forward-looking statements include, but are not limited to the
following: general economic, employment and business conditions;
population growth, household formations and demographic trends;
conditions in the capital, credit and financial markets; our ability to
access external financing sources and raise capital through the issuance
of common stock, debt or other securities, and/or project financing, on
favorable terms; material and trade costs and availability; changes in
interest rates; our debt level, including our ratio of debt to capital,
and our ability to adjust our debt level and maturity schedule; our
compliance with the terms of our revolving credit facility; volatility
in the market price of our common stock; weak or declining consumer
confidence, either generally or specifically with respect to purchasing
homes; competition from other sellers of new and resale homes; weather
events, significant natural disasters and other climate and
environmental factors, including the severe prolonged drought and
related water-constrained conditions in the southwest United States and
California; government actions, policies, programs and regulations
directed at or affecting the housing market (including the Dodd-Frank
Act, tax benefits associated with purchasing and owning a home, and the
standards, fees and size limits applicable to the purchase or insuring
of mortgage loans by government-sponsored enterprises and government
agencies), the homebuilding industry, or construction activities; the
availability and cost of land in desirable areas; our warranty claims
experience with respect to homes previously delivered and actual
warranty costs incurred; costs and/or charges arising from regulatory
compliance requirements or from legal, arbitral or regulatory
proceedings, investigations, claims or settlements, including
unfavorable outcomes in any such matters resulting in actual or
potential monetary damage awards, penalties, fines or other direct or
indirect payments, or injunctions, consent decrees or other voluntary or
involuntary restrictions or adjustments to our business operations or
practices that are beyond our current expectations and/or accruals; our
ability to use/realize the net deferred tax assets we have generated;
our ability to successfully implement our current and planned strategies
and initiatives related to our product, geographic and market
positioning (including our transition out of the Metro Washington, D.C.
area), gaining share and scale in our served markets, and increasing our
housing gross profit margins and profitability; our operational and
investment concentration in markets in California; consumer interest in
our new home communities and products, particularly from first-time
homebuyers and higher-income consumers; our ability to generate orders
and convert our backlog of orders to home deliveries and revenues,
particularly in key markets in California; our ability to generate cash
from our operations, enhance our asset efficiency, increase our
operating income margin and improve our return on invested capital; the
ability of our homebuyers to obtain residential mortgage loans and
mortgage banking services, including from Home Community Mortgage; the
performance of Home Community Mortgage; information technology failures
and data security breaches; and other events outside of our control.
Please see our periodic reports and other filings with the Securities
and Exchange Commission for a further discussion of these and other
risks and uncertainties applicable to our business.
|
|
|
KB HOME
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months and Three Months Ended May 31, 2016 and 2015
(In Thousands, Except Per Share Amounts — Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended May 31,
|
|
Three Months Ended May 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Total revenues
|
$
|
1,489,421
|
|
|
$
|
1,203,090
|
|
|
$
|
811,050
|
|
|
$
|
622,969
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,484,204
|
|
|
$
|
1,198,692
|
|
|
$
|
808,462
|
|
|
$
|
620,804
|
|
|
Costs and expenses
|
(1,439,274
|
)
|
|
(1,166,432
|
)
|
|
(782,524
|
)
|
|
(602,942
|
)
|
|
Operating income
|
44,930
|
|
|
32,260
|
|
|
25,938
|
|
|
17,862
|
|
|
Interest income
|
286
|
|
|
255
|
|
|
134
|
|
|
152
|
|
|
Interest expense
|
(5,667
|
)
|
|
(13,456
|
)
|
|
(1,970
|
)
|
|
(8,118
|
)
|
|
Equity in loss of unconsolidated joint ventures
|
(1,428
|
)
|
|
(758
|
)
|
|
(825
|
)
|
|
(411
|
)
|
|
Homebuilding pretax income
|
38,121
|
|
|
18,301
|
|
|
23,277
|
|
|
9,485
|
|
|
Financial services:
|
|
|
|
|
|
|
|
|
Revenues
|
5,217
|
|
|
4,398
|
|
|
2,588
|
|
|
2,165
|
|
|
Expenses
|
(1,730
|
)
|
|
(1,892
|
)
|
|
(871
|
)
|
|
(928
|
)
|
|
Equity in income (loss) of unconsolidated joint ventures
|
(784
|
)
|
|
2,365
|
|
|
(197
|
)
|
|
1,951
|
|
|
Financial services pretax income
|
2,703
|
|
|
4,871
|
|
|
1,520
|
|
|
3,188
|
|
|
Total pretax income
|
40,824
|
|
|
23,172
|
|
|
24,797
|
|
|
12,673
|
|
|
Income tax expense
|
(12,100
|
)
|
|
(5,800
|
)
|
|
(9,200
|
)
|
|
(3,100
|
)
|
|
Net income
|
$
|
28,724
|
|
|
$
|
17,372
|
|
|
$
|
15,597
|
|
|
$
|
9,573
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
.33
|
|
|
$
|
.19
|
|
|
$
|
.18
|
|
|
$
|
.10
|
|
|
Diluted
|
$
|
.31
|
|
|
$
|
.18
|
|
|
$
|
.17
|
|
|
$
|
.10
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
86,704
|
|
|
91,974
|
|
|
84,196
|
|
|
91,995
|
|
|
Diluted
|
97,060
|
|
|
101,470
|
|
|
94,720
|
|
|
101,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KB HOME
CONSOLIDATED BALANCE SHEETS
(In Thousands — Unaudited)
|
|
|
|
|
|
|
|
May 31,
2016
|
|
November 30,
2015
|
|
Assets
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash equivalents
|
$
|
274,849
|
|
|
$
|
559,042
|
|
Restricted cash
|
3,517
|
|
|
9,344
|
|
Receivables
|
151,066
|
|
|
152,682
|
|
Inventories
|
3,525,089
|
|
|
3,313,747
|
|
Investments in unconsolidated joint ventures
|
65,213
|
|
|
71,558
|
|
Deferred tax assets, net
|
770,396
|
|
|
782,196
|
|
Other assets
|
112,790
|
|
|
112,774
|
|
|
4,902,920
|
|
|
5,001,343
|
|
Financial services
|
12,923
|
|
|
14,028
|
|
Total assets
|
$
|
4,915,843
|
|
|
$
|
5,015,371
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts payable
|
$
|
190,327
|
|
|
$
|
183,770
|
|
Accrued expenses and other liabilities
|
456,645
|
|
|
513,414
|
|
Notes payable
|
2,632,127
|
|
|
2,625,536
|
|
|
3,279,099
|
|
|
3,322,720
|
|
Financial services
|
1,575
|
|
|
1,817
|
|
Stockholders' equity
|
1,635,169
|
|
|
1,690,834
|
|
Total liabilities and stockholders' equity
|
$
|
4,915,843
|
|
|
$
|
5,015,371
|
|
|
|
|
|
|
|
|
|
KB HOME
SUPPLEMENTAL INFORMATION
For the Six Months and Three Months Ended May 31, 2016 and 2015
(In Thousands, Except Average Selling Price — Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended May 31,
|
|
Three Months Ended May 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Homebuilding revenues:
|
|
|
|
|
|
|
|
|
Housing
|
$
|
1,480,054
|
|
|
$
|
1,129,762
|
|
|
$
|
807,408
|
|
|
$
|
604,921
|
|
|
Land
|
4,150
|
|
|
68,930
|
|
|
1,054
|
|
|
15,883
|
|
|
Total
|
$
|
1,484,204
|
|
|
$
|
1,198,692
|
|
|
$
|
808,462
|
|
|
$
|
620,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding costs and expenses:
|
|
|
|
|
|
|
|
|
Construction and land costs
|
|
|
|
|
|
|
|
|
Housing
|
$
|
1,247,131
|
|
|
$
|
953,659
|
|
|
$
|
682,303
|
|
|
$
|
508,276
|
|
|
Land
|
10,401
|
|
|
63,169
|
|
|
6,411
|
|
|
16,134
|
|
|
Subtotal
|
1,257,532
|
|
|
1,016,828
|
|
|
688,714
|
|
|
524,410
|
|
|
Selling, general and administrative expenses
|
181,742
|
|
|
149,604
|
|
|
93,810
|
|
|
78,532
|
|
|
Total
|
$
|
1,439,274
|
|
|
$
|
1,166,432
|
|
|
$
|
782,524
|
|
|
$
|
602,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
Interest incurred
|
$
|
92,509
|
|
|
$
|
94,202
|
|
|
$
|
46,258
|
|
|
$
|
49,199
|
|
|
Interest capitalized
|
(86,842
|
)
|
|
(80,746
|
)
|
|
(44,288
|
)
|
|
(41,081
|
)
|
|
Total
|
$
|
5,667
|
|
|
$
|
13,456
|
|
|
$
|
1,970
|
|
|
$
|
8,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other information:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
$
|
5,602
|
|
|
$
|
5,560
|
|
|
$
|
2,821
|
|
|
$
|
2,835
|
|
|
Amortization of previously capitalized interest
|
66,239
|
|
|
47,736
|
|
|
35,557
|
|
|
25,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price:
|
|
|
|
|
|
|
|
|
West Coast |
$
|
564,800
|
|
|
$
|
565,500
|
|
|
$
|
570,200
|
|
|
$
|
579,000
|
|
|
Southwest
|
285,700
|
|
|
275,400
|
|
|
284,900
|
|
|
275,800
|
|
|
Central
|
262,300
|
|
|
237,900
|
|
|
264,000
|
|
|
237,800
|
|
|
Southeast
|
275,200
|
|
|
271,800
|
|
|
278,400
|
|
|
278,800
|
|
|
Total
|
$
|
345,600
|
|
|
$
|
334,200
|
|
|
$
|
346,700
|
|
|
$
|
338,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KB HOME
SUPPLEMENTAL INFORMATION
For the Six Months and Three Months Ended May 31, 2016 and 2015
(Dollars in Thousands — Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended May 31,
|
|
Three Months Ended May 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Homes delivered:
|
|
|
|
|
|
|
|
|
West Coast |
1,089
|
|
|
873
|
|
|
581
|
|
|
459
|
|
Southwest
|
742
|
|
|
516
|
|
|
392
|
|
|
279
|
|
Central
|
1,671
|
|
|
1,390
|
|
|
906
|
|
|
737
|
|
Southeast
|
780
|
|
|
601
|
|
|
450
|
|
|
312
|
|
Total
|
4,282
|
|
|
3,380
|
|
|
2,329
|
|
|
1,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net orders:
|
|
|
|
|
|
|
|
|
West Coast |
1,550
|
|
|
1,322
|
|
|
995
|
|
|
770
|
|
Southwest
|
900
|
|
|
921
|
|
|
541
|
|
|
532
|
|
Central
|
2,111
|
|
|
2,046
|
|
|
1,210
|
|
|
1,176
|
|
Southeast
|
960
|
|
|
915
|
|
|
503
|
|
|
537
|
|
Total
|
5,521
|
|
|
5,204
|
|
|
3,249
|
|
|
3,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net order value:
|
|
|
|
|
|
|
|
|
West Coast |
$
|
910,493
|
|
|
$
|
756,311
|
|
|
$
|
572,882
|
|
|
$
|
438,754
|
|
Southwest
|
262,625
|
|
|
258,213
|
|
|
155,337
|
|
|
149,555
|
|
Central
|
581,457
|
|
|
535,424
|
|
|
328,242
|
|
|
308,381
|
|
Southeast
|
273,101
|
|
|
256,094
|
|
|
146,541
|
|
|
156,176
|
|
Total
|
$
|
2,027,676
|
|
|
$
|
1,806,042
|
|
|
$
|
1,203,002
|
|
|
$
|
1,052,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31, 2016 |
|
May 31, 2015 |
|
|
Backlog Homes |
|
Backlog Value
|
|
Backlog Homes |
|
Backlog Value
|
|
Backlog data:
|
|
|
|
|
|
|
|
|
West Coast |
1,199
|
|
|
$
|
703,346
|
|
|
1,042
|
|
|
$
|
617,354
|
|
Southwest
|
763
|
|
|
218,047
|
|
|
729
|
|
|
200,697
|
|
Central
|
2,282
|
|
|
638,052
|
|
|
2,145
|
|
|
558,681
|
|
Southeast
|
961
|
|
|
269,657
|
|
|
817
|
|
|
234,091
|
|
Total
|
5,205
|
|
|
$
|
1,829,102
|
|
|
4,733
|
|
|
$
|
1,610,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KB HOME
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
For
the Six Months and Three Months Ended May 31, 2016 and 2015
(In
Thousands, Except Percentages — Unaudited)
This press release contains, and Company management's discussion of the
results presented in this press release may include, information about
the Company's adjusted housing gross profit margin and ratio of net debt
to capital, both of which are not calculated in accordance with
generally accepted accounting principles ("GAAP"). The Company believes
these non-GAAP financial measures are relevant and useful to investors
in understanding its operations and the leverage employed in its
operations, and may be helpful in comparing the Company with other
companies in the homebuilding industry to the extent they provide
similar information. However, because the adjusted housing gross profit
margin and the ratio of net debt to capital are not calculated in
accordance with GAAP, these financial measures may not be completely
comparable to other companies in the homebuilding industry and,
therefore, should not be considered in isolation or as an alternative to
operating performance and/or financial measures prescribed by GAAP.
Rather, these non-GAAP financial measures should be used to supplement
their respective most directly comparable GAAP financial measures in
order to provide a greater understanding of the factors and trends
affecting the Company's operations.
Adjusted Housing Gross Profit Margin
The following table reconciles the Company's housing gross profit margin
calculated in accordance with GAAP to the non-GAAP financial measure of
the Company's adjusted housing gross profit margin:
|
|
Six Months Ended May 31,
|
|
Three Months Ended May 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Housing revenues
|
$
|
1,480,054
|
|
|
$
|
1,129,762
|
|
|
$
|
807,408
|
|
|
$
|
604,921
|
|
|
Housing construction and land costs
|
(1,247,131
|
)
|
|
(953,659
|
)
|
|
(682,303
|
)
|
|
(508,276
|
)
|
|
Housing gross profits
|
232,923
|
|
|
176,103
|
|
|
125,105
|
|
|
96,645
|
|
|
Add: Amortization of previously capitalized interest (a)
|
65,757
|
|
|
47,736
|
|
|
35,551
|
|
|
25,443
|
|
|
Inventory-related charges (b)
|
7,563
|
|
|
984
|
|
|
6,384
|
|
|
536
|
|
|
Adjusted housing gross profits
|
$
|
306,243
|
|
|
$
|
224,823
|
|
|
$
|
167,040
|
|
|
$
|
122,624
|
|
|
Housing gross profit margin as a percentage of housing revenues
|
15.7
|
%
|
|
15.6
|
%
|
|
15.5
|
%
|
|
16.0
|
%
|
|
Adjusted housing gross profit margin as a percentage of housing
revenues
|
20.7
|
%
|
|
19.9
|
%
|
|
20.7
|
%
|
|
20.3
|
%
|
(a) Represents the amortization of previously capitalized interest
associated with housing operations.
(b) Represents inventory
impairment and land option contract abandonment charges associated with
housing operations.
Adjusted housing gross profit margin is a non-GAAP financial measure,
which the Company calculates by dividing housing revenues less housing
construction and land costs excluding (1) amortization of previously
capitalized interest associated with housing operations and (2) housing
inventory impairment and land option contract abandonment charges
recorded during a given period, by housing revenues. The most directly
comparable GAAP financial measure is housing gross profit margin. The
Company believes adjusted housing gross profit margin is a relevant and
useful financial measure to investors in evaluating the Company's
performance as it measures the gross profits the Company generated
specifically on the homes delivered during a given period. This non-GAAP
financial measure isolates the impact that the amortization of
previously capitalized interest associated with housing operations, and
housing inventory impairment and land option contract abandonment
charges have on housing gross profit margins, and allows investors to
make comparisons with the Company's competitors that adjust housing
gross profit margins in a similar manner. The Company also believes
investors will find adjusted housing gross profit margin relevant and
useful because it represents a profitability measure that may be
compared to a prior period without regard to variability of amortization
of previously capitalized interest associated with housing operations,
and housing inventory impairment and land option contract abandonment
charges. This financial measure assists management in making strategic
decisions regarding community location and product mix, product pricing
and construction pace.
KB HOME
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In
Thousands, Except Percentages — Unaudited)
Ratio of Net Debt to Capital
The following table reconciles the Company's ratio of debt to capital
calculated in accordance with GAAP to the non-GAAP financial measure of
the Company's ratio of net debt to capital:
|
|
May 31,
2016
|
|
November 30,
2015
|
|
Notes payable
|
$
|
2,632,127
|
|
|
$
|
2,625,536
|
|
|
Stockholders' equity
|
1,635,169
|
|
|
1,690,834
|
|
|
Total capital
|
$
|
4,267,296
|
|
|
$
|
4,316,370
|
|
|
Ratio of debt to capital
|
61.7
|
%
|
|
60.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable
|
$
|
2,632,127
|
|
|
$
|
2,625,536
|
|
|
Less: Cash and cash equivalents and restricted cash
|
(278,366
|
)
|
|
(568,386
|
)
|
|
Net debt
|
2,353,761
|
|
|
2,057,150
|
|
|
Stockholders' equity
|
1,635,169
|
|
|
1,690,834
|
|
|
Total capital
|
$
|
3,988,930
|
|
|
$
|
3,747,984
|
|
|
Ratio of net debt to capital
|
59.0
|
%
|
|
54.9
|
%
|
The ratio of net debt to capital is a non-GAAP financial measure, which
the Company calculates by dividing notes payable, net of homebuilding
cash and cash equivalents and restricted cash, by capital (notes
payable, net of homebuilding cash and cash equivalents and restricted
cash, plus stockholders' equity). The most directly comparable GAAP
financial measure is the ratio of debt to capital. The Company believes
the ratio of net debt to capital is a relevant and useful financial
measure to investors in understanding the leverage employed in the
Company's operations.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160621006482/en/
KB Home
Investor Relations Contact:
Jill Peters, 310-893-7456
jpeters@kbhome.com
or
Media
Contact:
Susan Martin, 310-231-4142
smartin@kbhome.com
Source: KB Home
News Provided by Acquire Media