KB Home Q2 2024 10-Q Filing

TL;DR

KBH 10-Q filed. Financials for Q2 2024 are in. Check it out.

AI Summary

KB Home (KBH) filed its 10-Q for the period ending May 31, 2024. The company reported its financial results for the second quarter of fiscal year 2024. Specific financial figures and operational details for the quarter and year-to-date periods are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial performance and operational updates for KB Home, crucial for understanding the company's current health and future prospects in the housing market.

Risk Assessment

Risk Level: medium — The filing contains standard financial disclosures for a public company, but the housing market is subject to economic fluctuations.

Key Numbers

• 20240531 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is provided.)
• 20240705 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• KB Home (company) — Filer of the 10-Q
• 20240531 (date) — End of the reporting period
• 10990 WILSHIRE BLVD (address) — Company's business and mailing address
• LOS ANGELES (location) — City of company's address
• DE (location) — State of incorporation

FAQ

Key Financial Figures

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

Filing Documents

• kbh-20240531.htm (10-Q) — 1684KB
• kbh-05312024xexhibitx311.htm (EX-31.1) — 12KB
• kbh-05312024xexhibitx312.htm (EX-31.2) — 12KB
• kbh-05312024xexhibitx321.htm (EX-32.1) — 6KB
• kbh-05312024xexhibitx322.htm (EX-32.2) — 6KB
• 0000795266-24-000100.txt ( ) — 8025KB
• kbh-20240531.xsd (EX-101.SCH) — 52KB
• kbh-20240531_cal.xml (EX-101.CAL) — 65KB
• kbh-20240531_def.xml (EX-101.DEF) — 284KB
• kbh-20240531_lab.xml (EX-101.LAB) — 629KB
• kbh-20240531_pre.xml (EX-101.PRE) — 464KB
• kbh-20240531_htm.xml (XML) — 1121KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Statements of Operations - Three Months and Six Months Ended May 31, 2024 and 2023 3 Consolidated Balance Sheets - May 31, 2024 and November 30, 2023 4 Consolidated Statements of Stockholders' Equity - Three Months and Six Months Ended May 31, 2024 and 2023 5 Consolidated Statements of Cash Flows - Six Months Ended May 31, 2024 and 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 46

Controls and Procedures

Item 4. Controls and Procedures 46

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 46

Risk Factors

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Other Information

Item 5. Other Information 47

Exhibits

Item 6. Exhibits 47

SIGNATURES

SIGNATURES 48 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 May 31, Six Months Ended May 31, 2024 2023 2024 2023 Total revenues $ 1,709,813 $ 1,765,316 $ 3,177,579 $ 3,149,630 Homebuilding: Revenues $ 1,701,512 $ 1,757,846 $ 3,163,210 $ 3,136,383 Construction and land costs ( 1,342,102 ) ( 1,386,558 ) ( 2,488,630 ) ( 2,469,379 ) Selling, general and administrative expenses ( 171,227 ) ( 169,186 ) ( 328,721 ) ( 308,413 ) Operating income 188,183 202,102 345,859 358,591 Interest income and other 19,449 1,729 25,306 2,196 Equity in income (loss) of unconsolidated joint ventures 224 ( 313 ) ( 221 ) ( 1,070 ) Homebuilding pretax income 207,856 203,518 370,944 359,717 Financial services: Revenues 8,301 7,470 14,369 13,247 Expenses ( 1,473 ) ( 1,472 ) ( 3,019 ) ( 2,830 ) Equity in income of unconsolidated joint venture 6,435 5,426 13,490 7,008 Financial services pretax income 13,263 11,424 24,840 17,425 Total pretax income 221,119 214,942 395,784 377,142 Income tax expense ( 52,700 ) ( 50,500 ) ( 88,700 ) ( 87,200 ) Net income $ 168,419 $ 164,442 $ 307,084 $ 289,942 Earnings per share: Basic $ 2.21 $ 2.00 $ 4.02 $ 3.49 Diluted $ 2.15 $ 1.94 $ 3.91 $ 3.38 Weighted average shares outstanding: Basic 75,653 81,764 75,773 82,607 Diluted 77,806 84,306 78,034 85,141 See accompanying notes. 3 KB HOME CONSOLIDATED BALANCE SHEETS (In Thousands – Unaudited) May 31, 2024 November 30, 2023 Assets Homebuilding: Cash and cash equivalents $ 643,536 $ 727,076 Receivables 371,674 366,862 Inventories 5,335,185 5,133,646 Investments in unconsolidated joint ventures 64,319 59,128 Property and equipment, net 89,228 88,309 Deferred tax assets, net 114,475 119,475 Other assets 119,453 96,987 6,737,870 6,591,483 Financial services 67,810 56,879 Total assets $ 6,805,680 $ 6,648,362 Liabilities and stockholders' equity Homebuilding: Accounts payab

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 and six months ended May 31, 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 e