LOS ANGELES, CA -- KB Home one of the nation's largest and most recognized homebuilders, reported net income of $7.8 million, compared to $10.6 million for the first quarter of 2014. Total revenues of $580.1 million rose 29% from $450.7 million in the year-earlier quarter, driven by growth in the Company's housing and land sale revenues. The Company's total revenues have increased on a year-over-year basis for 14 consecutive quarters.
Housing revenues grew 19% to $524.8 million in the current quarter from $440.1 million for the corresponding quarter of 2014. The Company delivered 1,593 homes in the first quarter, representing an increase of 10% from 1,442 homes delivered in the year-earlier quarter.
The overall average selling price of homes delivered grew 8% to $329,500, up from $305,200 a year ago, reflecting a shift in the geographic mix of deliveries and generally favorable conditions in the Company's served markets.
Homebuilding operating income totaled $14.4 million, compared to $17.7 million in the year-earlier quarter. The current quarter included a $6.0 million gain on the sale of land, compared to a $1.0 million gain in the prior-year quarter.
All four of the Company's homebuilding regions posted year-over-year growth in net order value, ranging from 6% in the West Coast homebuilding region to 125% in the Southwest homebuilding region.
In the Company's Central homebuilding region, which primarily consists of its operations in Texas, net order value was up 34% from a year ago.
Net orders increased 24% from the year-earlier quarter to 2,189, mainly due to the Company's higher average community count.
"We are pleased with the robust growth in our first quarter net orders, net order value and backlog levels, which was fueled primarily by our expanded community count and healthy buyer demand," said Jeffrey Mezger, president and chief executive officer. "Having successfully opened 32 new home communities across our geographic footprint, we ended the quarter with 25% more active communities than we had a year ago, positioning us well as we enter the spring selling season and setting the foundation for a strong finish to 2015. With our expanding community count, we are poised to generate further momentum in our business and prepared to capture pent-up demand for housing as it is unlocked by improvement in fundamental demographic, economic and housing market dynamics."
"We extended our positive revenue growth trajectory during the quarter, driven by increases in both the number of homes delivered and the average selling price compared to a year ago," continued Mezger. "As we anticipated, our housing gross profit margin was tempered in the quarter; however, with our rising community count providing a strong start entering the spring selling season and the leverage benefits we are anticipating from projected higher revenues, we expect to produce sequential margin improvement in each of the remaining quarters of 2015, and to significantly narrow the year-over-year gap in our gross margin percentage by the end of the year. Moreover, as the year unfolds, we also anticipate accelerated growth in our revenues as well as greater operating leverage to bolster our bottom-line performance. We believe that further progress on the execution of our strategies to enhance our top-line growth, profitability, asset efficiency and return on invested capital will be a catalyst that, along with the benefits of our larger community count, will enable us to deliver strong financial and operational results in the second half of this year."