KB Home First Quarter 2012 Numbers
Quarter One
Profit/(Loss) ($45.8 M) +60.0%
Home Deliveries 1,150 +21%
New Orders 1,197 -8.1%

Behind the Numbers:

KB Home lost a lot less money in 2012’s first quarter than the previous year and managed to improve its deliveries, but it still lost money and new sales orders slipped. Also, at a time when other builders have been paring down costs, KB Home’s sales, general, and administrative expenses showed a 12% increase in the year. Likewise the company’s gross margin fell nearly 300 basis points, goosed by inventory impairments and the costs of abandoning land contracts. CEO Jeffrey Mezger called the results “mixed” and said he believes changes the company has begun to implement should become more evident as the year unfolds.

KB Home’s fiscal year ends Nov. 30.