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With net order value growing 9% to $935.4MM, $KBH saw 4Q17 revenue surge 18% to $1.4Bil. In the quarter, the homebuilder saw net income more than double to $84.3MM or $.84 per diluted share, from last year's $37.5MM or $.40 per diluted share.
$KBH said Florida represents about 9% of its total housing revenues. The company has a disproportionate share of reactivated communities in Florida. So the revenues that they generate in Florida are generally below company average margin because of the mix of business between core communities and reactivated communities.
During 3Q17, $KBH’s West Coast region produced a 26% increase in net order value on a 10% increase in net orders. The Southwest region produced a 37% increase in net order value on a 26% net order comparison led by continued outperformance in Las Vegas.
In 3Q17, $KBH’s deliveries rose 11% YoY to 2,765 homes. Average selling price increased 12% to $411,400. Net order value grew 15% to $1.07Bil on a 4% increase in net orders to 2,608, with double-digit growth in the company's West Coast and Southwest regions. Ending backlog value grew 14% YoY to $2.12Bil, with homes in backlog up 4% to 5,455.
$KBH closed an amendment to its unsecured revolving credit facility to lift the borrowing availability to $500MM from $275MM, with a $250MM letter of credit sublimit, and extend the maturity date to July 2021 from August 2019. This also contains accordion feature under which borrowing availability can be further increased to $600MM.
$KBH has elected Dorene C Dominguez to its BoD, effective July 13. She has also been appointed to the board's audit and compliance committee. Dominguez is Chairwoman and CEO of the Vanir Group of Companies and its subsidiaries Vanir Construction Management and Vanir Development Company.
$KBH spent around $204MM on land acquisitions and about $200MM in development and fees during 2Q17. There is heavy development dollars in California and in terms of investments, land is a higher percentage of total revenues in the region. The company was pleased with the investment level in 2Q17 and expects to continue reinvesting in the business.
For full-year 2017, $KBH expects Housing revenues to range between $4.2-4.4Bil with the midpoint up $150MM as compared to the prior guidance and up 20% compared to 2016. The company currently anticipates 3Q17 Housing revenues to be $1.08-1.15Bil. For 3Q17, $KBH is projecting an overall average selling price of $405,000-410,000.
In 2Q17, $KBH’s deliveries rose 11% to 2,580 homes, with double-digit increases in three of the company's four regions. Average selling price increased 11% to $385,900. Net order value grew 15% to $1.38Bil on a 5% increase in net orders to 3,416, primarily reflecting strength in the West Coast and Southwest regions.