KB Home posted a strong first quarter in 2014, with revenues up 11% and positive net income that swung from a 2013 first-quarter loss.
Sales for the three months ended Feb. 28 were $450.7 million, up from $405.2 million in the year-ago quarter.
The increase was fueled by activity in the Southwest and Southeast regions and was offset by a decrease in the West Coast area. Additionally, the average selling price rose 12% since last year.
Thanks to higher revenues, expanded housing gross profit margin and improved selling, general and administrative expense ratio, net income for the homebuilder came in at $10.6 million, compared to a loss of $12.5 million in the first quarter of 2013. This is the first profitable Q1 for the company since 2007.
“As we continue to execute on our business strategies, increasing the number of communities we operate will be a key factor in driving higher revenues and profits this year,” said president and CEO Jeffrey Mezger. “Through our substantial investments in land and land development over the past few years, we believe we have created a solid platform for growth. In the current quarter, our double-digit percentage increase in community count helped us generate net order growth, and we are actively working to open additional new home communities. We are entering the spring selling season positioned with more communities open in attractive locations across the country, and we are confident that our balanced approach to sales price and pace, combined with our focus on both top-line growth and profitability, will produce strong results in the coming quarters.”