Feb 29, 2020

KB Home Q1 2020 Earnings Report

KB Home reported strong first quarter results, with significant revenue growth and increased earnings per share.

Key Takeaways

KB Home reported a strong first quarter with revenues increasing by 33% to $1.08 billion and diluted earnings per share more than doubling to $0.63. Net orders rose by 31%, and backlog value expanded by 28%. However, the company acknowledged the uncertainty caused by the COVID-19 pandemic and has withdrawn its full-year guidance.

Revenues increased 33% to $1.08 billion, the highest for any first quarter since 2007.

Diluted earnings per share more than doubled to $0.63.

Net orders rose 31%, with net order value up 35% to $1.38 billion.

Ending backlog value grew 28% to $2.12 billion.

Total Revenue
$1.08B
Previous year: $811M
+32.6%
EPS
$0.63
Previous year: $0.31
+103.2%
Total Backlog Value
$2.12B
Previous year: $1.66B
+28.1%
Total ASP
$390K
Previous year: $371K
+5.0%
West Coast ASP
$610K
Previous year: $608K
+0.4%
Gross Profit
$190M
Previous year: $141M
+35.0%
Cash and Equivalents
$430M
Previous year: $512M
-16.1%
Free Cash Flow
-$16.5M
Total Assets
$5.05B
Previous year: $5.17B
-2.3%

KB Home

KB Home

KB Home Revenue by Geographic Location

Forward Guidance

In light of the uncertainty surrounding the spread of COVID-19 and the unprecedented public health and governmental efforts to contain it, management has withdrawn guidance for its 2020 fiscal year.

Positive Outlook

  • Experienced leadership team
  • Solid balance sheet
  • Significant liquidity
  • Engaging with customers who maintain a strong desire for homeownership
  • Delivering homes and generate revenues

Challenges Ahead

  • Uncertainty surrounding the spread of COVID-19
  • Unprecedented public health efforts to contain COVID-19
  • Governmental efforts to contain COVID-19
  • Monitoring cash outflows
  • Positioning the Company to navigate through this evolving operating environment

Revenue & Expenses

Visualization of income flow from segment revenue to net income