KB Liquidates Assets: Fool by Numbers

On June 28, KB Home (NYSE: KBH  ) released second-quarter earnings for the period ended May 31.

  • Total revenues declined by 35.8%, thanks to housing affordability challenges and tighter credit conditions in the subprime and near-prime mortgage market.
  • The company announced the sale of the entire 49% equity interest in its French subsidiary Kaufman & Broad SA.
  • CEO Jeffery Mezger cited the sale as a chance for KB to become more liquid and focus on strategic expansion opportunities. The deal plans to finalize by the end of the third quarter and gross approximately $800 million.
  • KB Home carries a Motley Fool CAPS rating of one star (out of a potential five). It looks like the CAPS community believes homebuilders are out of favor, as competitors Lennar (NYSE: LEN  ) and D.R. Horton (NYSE: DHI  ) each carry a low one-star rating.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q2 2007

Q2 2006






Net Profit*








Diluted Shares




*Income from continuing operations

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006


Gross Margin **




Operating Margin




Net Margin




*Expressed in percentage points. **Cost of Goods Sold includes details from Home Construction segment only.

Margins are the earnings engine.

Balance Sheet Highlights


Q2 2007

Q2 2006


Cash + ST Invest.




Accounts Rec.









Q2 2007

Q2 2006


Accounts Payable




Long-Term Debt

No Data

No Data

No Data

The balance sheet reflects the company's health.

Cash Flow Highlights

Not provided.

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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Related Tickers

10/24/2016 12:06 PM
KBH $14.92 Up +0.18 +1.19%
KB Home CAPS Rating: **
DHI $29.29 Up +0.21 +0.72%
D.R. Horton CAPS Rating: ***
LEN $41.53 Up +0.31 +0.75%
Lennar CAPS Rating: **