LOS ANGELES -- KB Home, one of America's premier homebuilders, reported a $17.4 during its fourth quarter, on revenues of $451 million.
The Company delivered 1,918 homes at an average selling price of $232,500 in the 2010 fourth quarter, compared to 3,042 homes delivered at an average selling price of $203,400 in the year-earlier quarter.
"We are very pleased to have ended the year with a solidly profitable fourth quarter," said Jeffrey Mezger, president and chief executive officer. "This is the eleventh consecutive quarter we have achieved year-over-year improvement in our pretax results and the first time in nearly four years that we have generated pretax earnings. Given the challenging market and economic conditions we have faced, our consistent progress in improving both operational and financial metrics illustrates our success in accomplishing our strategic goals through our focused execution of our KBnxt Built to Order(TM) business model."
Net orders in the fourth quarter of 2010 were 1,085, down 25% from 1,446 in the year-earlier period. As a percentage of beginning backlog, the Company's cancellation rate was 29% in the current quarter, compared to 17% in the 2009 fourth quarter.
"Although our outlook is cautious, we are encouraged by our achievements in 2010, and we intend to build on our operating efficiencies, our planned community growth and our product advantages to further enhance the financial performance of our business," said Mezger. "Entering 2011, housing market conditions remain difficult due to soft demand and a general oversupply of homes available for sale. While there are indications that the overall economy has started to recover, the lack of improvement in employment and consumer confidence is likely to continue to hinder a sustained housing recovery. Nonetheless, we believe that with our demonstrated ability to improve our operational and financial results through the ongoing downturn and a strong balance sheet that enables us to opportunistically grow our community count and potential housing revenues, we are well positioned for the future."
The Company delivered 7,346 homes during the year ended November 30, 2010, down 13% from the year-earlier period, while the average selling price increased 4% year over year to $214,500.