Los Angeles, September 20 -- KB Home announced record financial results for its third quarter ended August 31, 2004.
The company achieved strong top-line growth in the third quarter of 2004 with total revenues of $1.75 billion, up 21% from $1.44 billion posted in 2003.
Housing revenues increased 24% to $1.72 billion in the quarter, driven by higher unit deliveries which rose 17% to 8,041 units and a 5% increase in the average selling price to $214,400.
Substantial earnings growth in the quarter was driven by higher unit volume and the expansion of the company's construction operating margin. Net income for the third quarter of 2004 totaled $117.9 million, increasing 20% from $97.8 million in the third quarter of 2003. The company's diluted earnings per share increased to $2.84 for the three months ended August 31, 2004, up 22% from $2.33 for the three months ended August 31, 2003.
Company-wide net orders for the third quarter increased 23% to 8,982, up from 7,319 net orders reported for the same quarter of 2003. Year- over-year net order growth was driven by higher net orders from each of the company's geographic regions.
Recent acquisitions and de novo growth have significantly expanded the company's territory in the Central and Southeast regions and set the stage for continued net order momentum.
Backlog at August 31, 2004, in terms of both units and dollars, was the highest of any quarter-end in the company's history. The dollar value of backlog at August 31, 2004 totaled approximately $4.82 billion, up 42% from August 31, 2003, and represents a strong pipeline of future revenues for the remainder of 2004 and into 2005.
The company's unit backlog at August 31, 2004 stood at 21,928, an increase of 5,356 units or 32% from 16,572 units at August 31, 2003.
The company's favorable financial performance through the first nine months of 2004 and positive outlook for the remainder of the year and 2005 have prompted an increase in expected earnings to $11.00 per diluted share for 2004 from the company's previous estimate. This represents an increase of 25% from the $8.80 earnings per diluted share generated in 2003.
The company also issued initial earnings guidance for 2005 of $14.00 per diluted share, a 27% increase over the forecasted 2004 diluted earnings per share.
Total revenues for the third quarter of 2004 rose to $1.75 billion, up 21% from $1.44 billion in the third quarter of 2003. Housing revenues increased 24% in the period to $1.72 billion, up from $1.39 billion in the year-earlier period as a result of increases in both unit volume and average selling prices. Unit deliveries rose 17% to 8,041 in the third quarter of 2004 from 6,850 in the same quarter of 2003.
