KB Home revenues up 34% for the year
KB Home has released its earnings report for the fourth quarter and fiscal year ended Nov. 30, with total revenues for the year up 34% and net income up significantly since last year’s loss.
Revenues for the fiscal year came in at $2.10 billion, compared to $1.56 billion in 2012. This is due in part to a 14% increase in homes delivered and an increase in the average selling price, which rose 18% to $291,700.
Meanwhile, 2013’s net income of $40.0 million was a marked improvement from 2012’s net loss of $59.0 million. This is the first year since 2006 that KB Home has generated positive full-year net income.
“Our fourth quarter results provided a solid finish to 2013 with both revenues and profits up from the prior year,” said Jeffrey Mezger, president and CEO. “We also posted full-year net income for the first time in several years…The catalyst for this progress has been an ongoing strategic shifting of our operations to higher-performing markets across the country. The favorable impact of this approach was most evident in California, where our average selling price for the quarter increased 29% from a year ago to $524,200. Our results for the fourth quarter and full year reinforce our belief that we have the right strategies in place to create long-term value for our stockholders as the housing recovery progresses.”
For the three months ended Nov. 30, revenues were up 7% to $618.5 million year-over-year, which was riding on double-digit increases in the Southwest, Central and Southeast markets (offset by a decrease on the West Coast). Net income for the quarter was up even more significantly ($28.1 million, up from $7.7 million in the fourth quarter of 2012).
Net income increased to $28.1 million, or $.31 per diluted share, compared to $7.7 million, or $.10 per diluted share, in the fourth quarter of 2012.
Christmas card captures the year that was
Unofficially, Mel Gerstein’s Christmas card is one of the widest read holiday-cards-slash-political-cartoons in the entire home improvement industry.
This year’s card — designed, written and created again by Mahwah, N.J.-based Thermwell Products President Mel Gerstein — hit mailboxes across the country recently. Many of the usual suspects are featured, along with some new names, like NSA whistle-blower Edward Snowden.
Spying is the central theme of the artwork this year. Along with Santa Claus, a smiling President Obama is apologizing, apparently for spying on 35 world leaders.
On Santa’s lap, a child wields a wish list that includes: a new spycam, toy drones and, of course, Twitter stock.
Gerstein has been drawing his own holiday card since the mid 1960s, and the list of recipients has grown to include several thousand people, both in and out of the home improvement industry.
Inside, the card reads: “Have a safe and secure 2014.”
Tile Shop’s first super store lands in San Antonio
The Tile Shop has announced its plans to open its first-ever super store in San Antonio.
This entails a 31,200-sq.ft. space — its biggest in the country — which compares with its usual average of 23,000-sq.-ft. retail locations. The super store will feature a selection of 4,500 stone and tile products.
Carl Randazzo, SVP retail for The Tile Shop, said that the additional square footage allows for an expansion of the retailer’s product presentation.
Like most Tile Shop locations, the super store will house fully decorated, room-size displays and offer free DIY classes on Saturday mornings.
Additionally, the store is strategically positioned in a busy, burgeoning area of San Antonio near other major retailers like Home Depot and Target.
“The northwest section of San Antonio has experienced incredible growth over the past 10 years as the city continues to expand northward,” said Carl Randazzo, SVP retail for The Tile Shop. “Our new store is perfectly positioned in one of the most desirable parts of the city to help homeowners continue to enhance the value of their relatively new homes with premium tile and stone products.”
The San Antonio store will be the Tile Shop’s fourth Texas location, joining its stores in Dallas and Plano. The retailer has plans to open additional stores in Austin and Southlake.