KB Home Files 10-Q for Period Ending February 29, 2024

TL;DR

<b>KB Home filed its Q1 2024 10-Q, detailing financial performance and segment data.</b>

AI Summary

KB HOME (KBH) filed a Quarterly Report (10-Q) with the SEC on April 5, 2024. KB Home filed a 10-Q report for the period ending February 29, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on November 30th. KB Home's previous name was Kaufman & Broad Home Corp. The filing includes financial data for Home Building and Financial Services segments.

Why It Matters

For investors and stakeholders tracking KB HOME, this filing contains several important signals. This 10-Q provides investors with the latest financial snapshot of KB Home's operations, including revenue and balance sheet details for the first quarter of fiscal year 2024. Understanding the segment performance (Home Building and Financial Services) is crucial for assessing the company's core business drivers and diversification strategies.

Risk Assessment

Risk Level: — KB HOME shows moderate risk based on this filing. The company operates in the cyclical homebuilding industry, which is sensitive to economic conditions, interest rates, and consumer confidence, posing a medium risk to financial performance.

Analyst Insight

Monitor KB Home's quarterly revenue growth and net income trends, particularly in the Home Building segment, to gauge its response to market conditions.

Revenue Breakdown

Key Numbers

• 2024-02-29 — Period End Date (Fiscal period end)
• 2024-04-05 — Filing Date (Date of submission)
• 1130 — Fiscal Year End (Company's fiscal year end month and day)

Key Players & Entities

• KB HOME (company) — Filer name
• KAUFMAN & BROAD HOME CORP (company) — Former company name
• 2024-02-29 (date) — Period of report
• 2024-04-05 (date) — Filing date
• LOS ANGELES (location) — Business address city
• DE (location) — State of incorporation

FAQ

Risk Factors

• Economic Downturns and Housing Market Fluctuations [high — market]: The company's operations are subject to the cyclical nature of the housing market, which can be adversely affected by economic downturns, rising interest rates, and changes in consumer confidence.
• Supply Chain Disruptions and Material Costs [medium — operational]: The company faces risks related to the availability and cost of labor and materials, which can be impacted by supply chain disruptions and inflation.
• Interest Rate Sensitivity [medium — financial]: Fluctuations in interest rates can impact the affordability of homes for buyers and the cost of financing for the company, affecting demand and profitability.

Key Dates

• 2024-02-29: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-05: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing view of a company's financial position. (This filing provides the most recent quarterly financial performance data for KB Home.)

Key Financial Figures

• $1.00 — ich registered Common Stock (par value $1.00 per share) KBH New York Stock Exchange

Filing Documents

• kbh-20240229.htm (10-Q) — 1308KB
• kbh-02292024xexhibitx311.htm (EX-31.1) — 12KB
• kbh-02292024xexhibitx312.htm (EX-31.2) — 12KB
• kbh-02292024xexhibitx321.htm (EX-32.1) — 6KB
• kbh-02292024xexhibitx322.htm (EX-32.2) — 6KB
• 0000795266-24-000060.txt (&nbsp;) — 7103KB
• kbh-20240229.xsd (EX-101.SCH) — 52KB
• kbh-20240229_cal.xml (EX-101.CAL) — 64KB
• kbh-20240229_def.xml (EX-101.DEF) — 285KB
• kbh-20240229_lab.xml (EX-101.LAB) — 612KB
• kbh-20240229_pre.xml (EX-101.PRE) — 457KB
• kbh-20240229_htm.xml (XML) — 913KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Statements of Operations - Three Months Ended February 29, 2024 and February 28, 2023 3 Consolidated Balance Sheets - February 29, 2024 and November 30, 2023 4 Consolidated Statements of Stockholders' Equity - Three Months Ended February 29, 2024 and February 28, 2023 5 Consolidated Statements of Cash Flows - Three Months Ended February 29, 2024 and February 28, 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 43

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 44

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44

Other Information

Item 5. Other Information 44

Exhibits

Item 6. Exhibits 45

SIGNATURES

SIGNATURES 46 2

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements KB HOME CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts – Unaudited) Three Months Ended February 29, 2024 February 28, 2023 Total revenues $ 1,467,766 $ 1,384,314 Homebuilding: Revenues $ 1,461,698 $ 1,378,537 Construction and land costs ( 1,146,528 ) ( 1,082,821 ) Selling, general and administrative expenses ( 157,494 ) ( 139,227 ) Operating income 157,676 156,489 Interest income 5,857 467 Equity in loss of unconsolidated joint ventures ( 445 ) ( 757 ) Homebuilding pretax income 163,088 156,199 Financial services: Revenues 6,068 5,777 Expenses ( 1,546 ) ( 1,358 ) Equity in income of unconsolidated joint venture 7,055 1,582 Financial services pretax income 11,577 6,001 Total pretax income 174,665 162,200 Income tax expense ( 36,000 ) ( 36,700 ) Net income $ 138,665 $ 125,500 Earnings per share: Basic $ 1.81 $ 1.49 Diluted $ 1.76 $ 1.45 Weighted average shares outstanding: Basic 75,894 83,468 Diluted 78,264 85,995 See accompanying notes. 3 KB HOME CONSOLIDATED BALANCE SHEETS (In Thousands – Unaudited) February 29, 2024 November 30, 2023 Assets Homebuilding: Cash and cash equivalents $ 668,084 $ 727,076 Receivables 354,728 366,862 Inventories 5,243,581 5,133,646 Investments in unconsolidated joint ventures 59,674 59,128 Property and equipment, net 88,433 88,309 Deferred tax assets, net 117,175 119,475 Other assets 93,411 96,987 6,625,086 6,591,483 Financial services 58,406 56,879 Total assets $ 6,683,492 $ 6,648,362 Liabilities and stockholders' equity Homebuilding: Accounts payable $ 378,906 $ 388,452 Accrued expenses and other liabilities 728,328 758,227 Notes payable 1,692,729 1,689,898 2,799,963 2,836,577 Financial services 859 1,645 Stockholders' equity: Common stock — 101,861,682 and 101,275,979 shares issued at February 29, 2024 and November 30, 2023, respectively 101,862 101,276 Paid-in capital 839,772 845,693 Retained earnin

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation and Significant Accounting Policies Basis of Presentation. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended November 30, 2023, which are contained in our Annual Report on Form 10-K for that period. The consolidated balance sheet at November 30, 2023 has been taken from the audited consolidated financial statements as of that date. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for the fair presentation of our results for the interim periods presented. The results of our consolidated operations for the three months ended February 29, 2024 are not necessarily indicative of the results to be expected for the full year due to seasonal variations in operating results and other factors. Unless the context indicates otherwise, the terms "we," "our," and "us" used in this report refer to KB Home, a Delaware corporation, and its subsidiaries. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents. We consider all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents