24/7 Wall St.
09-26-2008, 10:00 AM
24/7 Wall St. Daily News
http://www.247wallst.com/images/2008/09/26/kb_home_logo.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/26/kb_home_logo.gif)KB Home (NYSE: KBH) is showing that the housing mess isn't over. No one was expecting anything great here as is, but the beatings are continuing. Revenue fell 56% to $681.6 million, and housing revenues were down 51% to $688.3 million. The homebuilder's losses rose more than four-fold to a loss of $144.7 million or -$1.87 EPS.
KB also said that it saw a 51% decrease in homes delivered to 2,788from 5,699, and a 10% decrease in the average selling price, to$239,700 from $267,700. Land sale revenues in the third quarter cameto $10.8 million, also lower than the $14.7 million this quarter in2007. These housing prices are the ones targeted right at middle-America.
Here is the smoking gun for no turnaround in sight for the sector. President &CEO Jeffrey Mezger said, "...it is too early to assess whether thefederal government’s proposed interventions will be effective." Another excerpt is, "...Market fundamentals appear unlikely to improvesignificantly in the near term, as foreclosures continue to rise,housing inventory overhang remains at historically high levels andmortgages have become more difficult to obtain."About the only good news here is that its cash balance is still upsharply from this time last year at $942.5 million vs. $645.9 million,and its debt balance was $1.88 billion vs. $2.16 billion this time lastyear. In August it also reduced its credit facility to $800 millionfrom $1.3 billion.
At least all those unemployed home construction workers can do repairwork around Houston and Galveston for the next few months. KB sharesare down over 6% at $19.75 pre-market. Its 52-week trading range is$13.16 to $30.59, but its peak in 2005 and 2006 was just over $80.00.
Jon C. Ogg
September 26, 2008
http://feeds.feedburner.com/~f/typepad/RyNm?i=eTgcL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=eTgcL) http://feeds.feedburner.com/~f/typepad/RyNm?i=iE1TL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=iE1TL) http://feeds.feedburner.com/~f/typepad/RyNm?i=tSbGl</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=tSbGl)
complete story here... (http://www.247wallst.com/2008/09/kb-home-shows-p.html)
http://www.247wallst.com/images/2008/09/26/kb_home_logo.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/26/kb_home_logo.gif)KB Home (NYSE: KBH) is showing that the housing mess isn't over. No one was expecting anything great here as is, but the beatings are continuing. Revenue fell 56% to $681.6 million, and housing revenues were down 51% to $688.3 million. The homebuilder's losses rose more than four-fold to a loss of $144.7 million or -$1.87 EPS.
KB also said that it saw a 51% decrease in homes delivered to 2,788from 5,699, and a 10% decrease in the average selling price, to$239,700 from $267,700. Land sale revenues in the third quarter cameto $10.8 million, also lower than the $14.7 million this quarter in2007. These housing prices are the ones targeted right at middle-America.
Here is the smoking gun for no turnaround in sight for the sector. President &CEO Jeffrey Mezger said, "...it is too early to assess whether thefederal government’s proposed interventions will be effective." Another excerpt is, "...Market fundamentals appear unlikely to improvesignificantly in the near term, as foreclosures continue to rise,housing inventory overhang remains at historically high levels andmortgages have become more difficult to obtain."About the only good news here is that its cash balance is still upsharply from this time last year at $942.5 million vs. $645.9 million,and its debt balance was $1.88 billion vs. $2.16 billion this time lastyear. In August it also reduced its credit facility to $800 millionfrom $1.3 billion.
At least all those unemployed home construction workers can do repairwork around Houston and Galveston for the next few months. KB sharesare down over 6% at $19.75 pre-market. Its 52-week trading range is$13.16 to $30.59, but its peak in 2005 and 2006 was just over $80.00.
Jon C. Ogg
September 26, 2008
http://feeds.feedburner.com/~f/typepad/RyNm?i=eTgcL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=eTgcL) http://feeds.feedburner.com/~f/typepad/RyNm?i=iE1TL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=iE1TL) http://feeds.feedburner.com/~f/typepad/RyNm?i=tSbGl</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=tSbGl)
complete story here... (http://www.247wallst.com/2008/09/kb-home-shows-p.html)