Q2 2024 KB Home Earnings Call Transcript
Key Points
- KB Home (KBH) reported total revenues of over $1.7 billion and earnings per share of $2.15, exceeding expectations.
- The company achieved a healthy operating income margin of over 11% and a gross profit margin of 21.1%.
- Net orders and net order value showed positive year-over-year comparisons, indicating strong demand.
- The backlog of committed buyers is valued at over $3 billion, providing a solid foundation for future revenue.
- Build times have improved significantly, now averaging around five months, with further improvements targeted.
- Volatility in mortgage rates has created uncertainty for consumers, potentially delaying purchase decisions.
- Mortgage concessions remained necessary to support buyers, impacting overall profitability.
- The Southeast region showed flat sequential orders, indicating potential regional demand challenges.
- Higher selling, general, and administrative expenses were incurred to position for future growth, impacting margins.
- The company faces increased competition from the resale market, particularly in regions like Florida.
Good afternoon. My name is John, and I'll be your conference operator today. I would like to welcome everyone to the KB Home 2024 second-quarter earnings conference call. (Operator Instructions)
Today's conference call is being recorded and will be available for replay at the company's website, kbhome.com through July 18, 2024.
And now I would like to turn the call over to Jill Peters, Senior Vice President, Investor Relations. Thank you, Jill. You may begin.
Thank you, John. Good afternoon, everyone, and thank you for joining us today to review our results for the second quarter of fiscal 2024. On the call are Jeff Mezger, Chairman and Chief Executive Officer; Rob McGibney, President and Chief Operating Officer; Jeff Kaminski, Executive Vice President and Chief Financial Officer; Bill Hollinger, Senior Vice President and Chief Accounting Officer; and Thad Johnson, Senior Vice President and Treasurer.
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