KB Home's second-quarter performance may have topped out economists' expectations, but CEO Jeffrey Mezger had a measured, practical take on the homebuilder's growth.
"We have produced year-over-year revenue increases for eleven straight quarters and operating income improvement for ten consecutive quarters," commented Mezger. "The sustained progress in our results demonstrates the success of our targeted land and land development investments across our operating footprint, the appeal of our product designs and unique home buying experience, as well as our sound growth platform."
With revenue up 8% to $565 million, KB Home generated earnings of $26.6 million to be exact, up drastically from a loss of $3 million a year ago.
The homebuilder's profit rides on the back of increased selling prices throughout the nation, as well as an increased backlog of 3,398 homes. KB Homes' average selling price rose 10% year-over-year.
"Increasing the number of new home communities we have open for sales remains a top priority for us," added Mezger, noting recent land acquisitions by the company. "We expect to measurably expand our community count into 2015 with the significant investments we are making in our land pipeline. We believe that with these and other strategic initiatives we have underway and the performance improvements we have delivered over the past several quarters, we are well positioned for accelerated revenue growth and profitability going forward."