Los Angeles-based home builder KB Home achieved a fourth-quarter profit in what the company's CEO described as a "challenging market."
The company reported net income of $17.4 million for the period ended Nov. 30, down 82.7% from $100.7 million reported for the same quarter last year. Total revenues for the quarter were $450.9 million, down 33% from $674.5 million reported for the same period in 2009.
"We are very pleased to have ended the year with a solidly profitable fourth quarter," said Jeffrey Mezger, president and CEO. "This is the eleventh consecutive quarter we have achieved year-over-year improvement in our pretax results and the first time in nearly four years that we have generated pretax earnings. Given the challenging market and economic conditions we have faced, our consistent progress in improving both operational and financial metrics illustrates our success in accomplishing our strategic goals through our focused execution of our KBnxt Built to Ordee business model."
Fourth-quarter housing revenues totaled $447.9 million in 2010, down 28% from $671.4 from the same period last year, reflecting a decline in the number of homes delivered, partly offset by an increase in the average selling price.
Net orders in the fourth quarter were 1,085, down 25% from 1,446 in the year-earlier period.
For the full year, the company reported a net loss of $69.3 million, compared to a loss of $101.7 million for 2009. Revenues for the year were $1.58 billion, down 13.1% from $1.82 billion for 2009.
The company's year-end backlog totaled 1,336 homes; a 37% decrease from 2,126 homes in backlog in 2009. Potential future housing revenues in backlog for the year decreased 38% to $263.8 million from $422.5 million a year ago, primarily due to the lower number of homes in backlog.
The company delivered 7,346 homes during the year, down 13% from the year-earlier period, while the average selling price increased 4% year over year to $214,500.