On June 28, KB Home
- 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 |
Change |
|
---|---|---|---|
Sales |
$1,413.2 |
$2,202.3 |
(35.8%) |
Net Profit* |
($174.2) |
$184.4 |
N/A |
EPS |
($2.26) |
$2.20 |
N/A |
Diluted Shares |
77.1 |
84.0 |
(8.2%) |
Get back to basics with the income statement.
Margin Checkup
Q2 2007 |
Q2 2006 |
Change* |
|
---|---|---|---|
Gross Margin ** |
(4.7%) |
25.7% |
(30.4) |
Operating Margin |
(18.5%) |
13.5% |
(31.9) |
Net Margin |
(12.3%) |
8.4% |
(20.7) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$272.1 |
$9.7 |
2710.8% |
Accounts Rec. |
$235.3 |
$573.2 |
(59.0%) |
Inventory |
$5,238.3 |
$7,569.0 |
(30.8%) |
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
---|---|---|---|
Accounts Payable |
$399.0 |
$935.1 |
(57.3%) |
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:
- Before the Call: The House That KB Built
- Homebuilders' Sagging Spirits
- Housing Slumps. Who's Surprised?
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