KB Home Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended of November 30, 2017; Provides Earnings Guidance for the Full Year of 2018
January 10, 2018 at 09:10 pm
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KB Home reported consolidated earnings results for the fourth quarter and full year ended of November 30, 2017. For the quarter, the company reported total revenues of $1,403,138,000 compared to $1,191,942,000 a year ago. Operating income was $131,876,000 compared to $55,994,000 a year ago. Total pretax income was $137,346,000 compared to $55,028,000 a year ago. Net income was $84,346,000 compared to $37,528,000 a year ago. Diluted earnings per share were $0.84 compared to $0.44 a year ago. During the fourth quarter, to drive future community openings, the company invested $393 million in land, land development and fees, with $181 million or 46% of the total representing new land acquisition.
For the full year, the company reported total revenues of $4,368,529,000 compared to $3,594,646,000 a year ago. Operating income was $283,403,000 compared to $152,401,000 a year ago. Total pretax income was $289,995,000 compared to $149,315,000 a year ago. Net income was $180,595,000 compared to $105,615,000 a year ago. Net debt was $1,604,215 against $2,048,063 a year ago. Diluted earnings per share were $1.85 compared to $1.12 a year ago. Return on equity improved 370 basis points to 10.0%, within the company's 2019 target range of 10% to 15%. The company generated $513 million of net operating cash flow in 2017, an increase of $324 million as compared to 2016.
For the year of 2018, the company has increased its 2018 full year gross margin expectations, excluding inventory-related charges, to the range of 17.2% to 17.7%, an improvement of 30 to 80 basis points as compared to 2017. Excluding the impact of the noncash adjustment, the company currently expects effective tax rate for the full year to be approximately 27%. This estimate reflects a fiscal 2018 blended federal rate of 22.2% plus estimate of state taxes.
KB Home is a homebuilding company. The Company's segments include homebuilding and financial services. The homebuilding segment is engaged in the acquisition and development of land primarily for residential purposes. The Company builds a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed for first-time and first move-up, as well as second move-up and active adult, homebuyers. It offers homes in development communities, at urban in-fill locations and as part of mixed-use projects. The financial services segment offers various insurance products to its homebuyers in the markets where the Company builds homes and provides title services in certain of those markets. Its financial services also provide mortgage banking services, including residential consumer mortgage loan originations, to its homebuyers indirectly through KBHS Home Loans, LLC, an unconsolidated joint venture between the Company and a third party.
KB Home Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended of November 30, 2017; Provides Earnings Guidance for the Full Year of 2018