KB Home (NYSE:KBH) stock rose 13.68% (As on Jan 13, 11:22:38 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 21. Ending backlog value grew 67% to $4.95 billion, the Company’s highest fourth-quarter level since 2005, with each of the Company’s four regions generating increases that ranged from 53% in the West Coast to 106% in the Southeast. Ending backlog grew 35% to 10,544 homes. Net order value for the fourth quarter expanded by $184.3 million, or 12%, to $1.77 billion. Average monthly net orders per community held fairly steady at 5.5, compared to 5.6, with a 10% decrease in net orders to 3,529 resulting primarily from the Company’s lower average community count, which decreased 9% to 214. The Company’s ending community count declined 8% to 217. On a sequential basis, the Company’s average community count increased 4%, and its ending community count increased 3%. The cancellation rate as a percentage of gross orders for the quarter was essentially flat at 13%. The Company’s cash and cash equivalents decreased to $290.8 million, from $681.2 million, primarily due to substantial investments in land and land development, share repurchases and a net reduction in debt, partly offset by significant cash generated from operations. The Company had total liquidity of $1.08 billion, including cash and cash equivalents and $791.4 million of available capacity under its unsecured revolving credit facility.
Moreover, Inventories grew 23% to $4.80 billion. Investments in land acquisition and development for the year ended November 30, 2021 rose 49% to $2.53 billion, compared to $1.69 billion for the year-earlier period. The Company’s lots owned or under contract increased to 86,768, up 29%. Of the Company’s total lots, approximately 56% were owned and 44% were under contract. The Company’s 48,525 owned lots represented a supply of approximately 3.6 years, based on homes delivered in the trailing 12 months.
KBH in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.91, beating the analysts’ estimates for the adjusted earnings per share of $1.77, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 40 percent to $1.68 billion in the fourth quarter of FY 21, missing the analysts’ estimates for revenue by 2.39%.
For fiscal 2022, the company expects Housing revenues to be in the range of $7.20 billion to $7.60 billion and average selling price to be in the range of $480,000 to $490,000.