LOS ANGELES -- KB Home reported net income $28.4 million in the third quarter, compared to $27.3 million in the third quarter of 2013, reflecting the Company's revenue growth, expanded housing gross profit margin and lower interest expense, partly offset by a higher selling, general and administrative expense ratio and the impairment charge for the planned future land sale.
Total revenues of $589.2 million increased 7% from $549.0 million in the third quarter of 2013, driven by growth in the Company's housing revenues attributable to higher average selling prices. This marked the Company's 12th consecutive quarter of year-over-year revenue growth.
The Company delivered 1,793 homes in the third quarter, compared to 1,825 homes delivered in the year-earlier quarter. Deliveries in the quarter were tempered by delays in construction schedules and customer mortgage loan closings that resulted in some deliveries being deferred to the fourth quarter.
The overall average selling price rose 9% to $327,000, up from $299,100 for the same period of 2013. The Company's average selling price has now increased on a year-over-year basis for the last 17 quarters.
The average selling price increased primarily due to the Company's continued positioning of its new home communities in land-constrained submarkets that typically feature higher household incomes, higher median home sales prices and stronger demand for larger home sizes, as well as generally favorable market conditions.
Average selling prices were higher in all of the Company's homebuilding regions compared to the same quarter of 2013, with increases ranging from 9% in the Central and Southeast regions to 21% in the West Coast region.
Homebuilding operating income totaled $33.9 million, compared to $36.0 million in the year-earlier quarter. The current quarter included a $3.4 million impairment charge related to a planned future land sale, and $1.0 million of land option contract abandonment charges. The 2013 third quarter included $5.9 million of warranty-related charges.