LOS ANGELES -- KB Home, one of the nation's largest and most recognized homebuilders, said it earned a net income of $28.1 million in the fourth quarter, on revenues of $618.5 million. Revenues were up seven percent.
Homes delivered decreased 4% from the fourth quarter of 2012 to 2,038 homes, reflecting a decline in deliveries from the Company's West Coast homebuilding region that was partially offset by increases in each of the Company's other three homebuilding regions.
The overall average selling price grew to $301,100, up 11% from the year-earlier quarter, extending the Company's trend of year-over-year increases. The increase in the average selling price reflected the Company's ongoing investment in higher-performing, choice locations in land constrained growth markets that feature higher household incomes and demand for larger home sizes, as well as incremental revenues generated through lot premiums, options and upgrades, and generally favorable housing market conditions.
Each of the Company's homebuilding regions posted a higher average selling price compared to the year-earlier quarter. Average selling price increases ranged from 10% in the Company's Southeast homebuilding region to 29% in its West Coast homebuilding region.
"Our fourth quarter results provided a solid finish to 2013 with both revenues and profits up from the prior year," said Jeffrey Mezger, president and chief executive officer. "We also posted full-year net income for the first time in several years. These results reflect the positive momentum within our business throughout 2013 that delivered measurably improved financial performance, with higher revenues and better bottom-line results in each quarter of the year. The catalyst for this progress has been an ongoing strategic shifting of our operations to higher-performing markets across the country. The favorable impact of this approach was most evident in California, where our average selling price for the quarter increased 29% from a year ago to $524,200. Our results for the fourth quarter and full year reinforce our belief that we have the right strategies in place to create long-term value for our stockholders as the housing recovery progresses."