KB Home (NYSE:KBH) reported first-quarter revenue growth of 23% year-over-year to $1.39 billion, missing the consensus of $1.50 billion. EPS grew 44% Y/Y to $1.47, missing the consensus of $1.56.
Homes delivered were flat at 2,868, and the average selling price rose 22% Y/Y to $486,100.
Homebuilding operating income grew 49% Y/Y to $169.6 million, and the margin expanded by 220 bps to 12.2%
The housing gross profit margin expanded by 160 bps to 22.4%. The adjusted housing gross profit margin expanded by 130 bps from 21.1%.
Backlog value grew 55% Y/Y to $5.71 billion, with four regions generating increases ranging from 38% in the West Coast to 114% in the Southeast. Ending backlog grew 29% Y/Y to 11,886 homes. Net order value rose 15% Y/Y to $2.15 billion.
As a percentage of gross orders, the cancellation rate was nearly flat at 11%. Inventories grew 8% Y/Y to $5.20 billion during the quarter.
KH Home had total liquidity of $1.07 billion, with $240.7 million of cash and cash equivalents and $831.4 million of available capacity under its unsecured revolving credit facility.
“While we grew our revenues 23%, as the quarter progressed, supply chain issues intensified and an already-constrained construction labor force was further stressed, which extended our build times and delayed completions and planned deliveries," commented Jeffrey Mezger, President, Chairman and Chief Executive Officer.
FY22 Guidance: KBH expects Housing revenues in the range of $7.20 billion to $7.60 billion, Average selling price in the range of $490,000 to $500,000.
It expects Homebuilding operating income as a percentage of revenues of 16.0% to 16.6%, and a Housing gross profit margin of 25.5% to 26.3%.
Price Action: KBH shares are trading lower by 3.72% at $34.65 during the post-market session on Wednesday.
photo via Wikimedia Commons
