Homebuilder KB 4Q Earnings Up 66%

Los Angeles, CA, December 16, 2005-- KB Home reported earnings that were up 66 percent in the fourth quarter, beating Wall Street estimates of the strength of the homebuilder's rising sales volume and selling prices. Net income grew to $310.6 million, or $3.51 per share, in the three months ended Nov. 30, up from $186.7 million, or $2.21 per share, a year ago. Analysts expected earnings per share of $3.34. The company's revenue rose 32 percent to $3.15 billion, from $2.38 billion last year. "We extended our trend of strong, consistent financial performance in the fourth quarter of 2005, and completed another successful year, delivering 37,140 homes and posting revenues approaching $10 billion," Bruce Karatz, KB Home's chairman and chief executive, said in a statement. The company also offered a 2006 earnings projection of $11.25 per share. KB Home said its net housing deliveries for the quarter increased 16.1 percent to 11,946 homes. KB Home's total average unit selling price also rose during the quarter to $262,700, up 14.6 percent from the same period last year. For the year, KB earned $842.4 million, or $9.53 a share, up 67 percent from $480.9 million, or $5.70 a share, in 2004. Revenue rose 34 percent to $9.44 billion from $7.05 billion. Wall Street had expected the company to post earnings of $9.36 per share for the full year. KB Home operates in several states, including California, Florida, Nevada, Texas and Georgia. A subsidiary of the company builds homes in France. The company also offers mortgage services through a joint venture with Countrywide Financial Corp.