KB Home, the nation’s fifth-largest home builder, reported its fiscal fourth-quarter revenue jumped 20 percent because of an increase in the number of homes the company delivered and a higher average selling price.
Revenue increased to $578.2 million for the three months ended Nov. 30. Homes delivered increased 8 percent to 6,282 units, and average selling price rose 14 percent to $270,700.
KB Home, which has traditionally targeted first-time buyers, is repositioning itself to go after more move-up buyers in higher-priced locations.
Net income for the Los Angeles-based home builder fell to $7.7 million, or 10 cents per share, in the fourth quarter, from $13.9 million, or 18 cents per share, a year earlier, after a gain related to a banking business went unrepeated.
In the year-earlier period, KB Home had gains of $19.8 million related to ending a mortgage-banking joint venture and $6.6 million from a loan guarantee.
The company’s contract backlog, an indication of future sales, jumped 35 percent to $618.6 million compared with a year earlier, and orders rose 4 percent to 1,557 units, the third consecutive quarter orders have increased.
KB Home has gained 148 percent this year, compared with an 87 percent increase in the 11-company Standard & Poor’s home building index.