KB Home (NYSE:KBH) Q4 2014 Earnings Conference Call - Final Transcript
Jan 13, 2015 • 11:30 am ET
Good Morning. My name is Rob, and I will be your conference operator today. I would like to welcome everyone to the KB Home 2014 Fourth Quarter and Year-End Earning Conference Call. At this time, all participants will be in the listen-only mode. Today's conference is being recorded and a live webcast is available on KB Home's website at kbhome.com. Following the Company's opening remarks, we will open the lines for questions. [Operator Instructions]
KB Home's discussion today may include forward-looking statements that reflect management's current views and expectations of market conditions, future events and the Company's business performance. These statements do not guarantee the future results, and the Company do not undertake any obligation to update them. Due to a number of factors outside of its control including those identified in SEC filings, the Company's actual results could be materially different from those expressed and or implied by the forward-looking statements.
A reconciliation of non-GAAP measures referenced during today's discussion to the most directly comfortable GAAP measures can be found in the Company's earnings release issued earlier today and or on the Investor Relations page of the Company's website.
It is now my pleasure to introduce your host, Chief Executive Officer for KB Home, Mr. Jeff Mezger. Mr. Mezger, you may begin.
Thank you Rob, Good morning, everyone. Thank you for joining us today for our review of our fourth quarter and full year 2014 results. With me today, are Jeff Kaminski, Executive Vice President and Chief Financial Officer; Bill Hollinger, Senior Vice President and Chief Accounting Officer; and Thad Johnson, Vice President and Treasurer.
I will begin with a summary of our fourth quarter performance and provide some color on our accomplishments and some challenges we encountered during the period, then, I will share our key areas of focus for 2015, as we continue to pursue top line growth and improvement in profitability, while also now working to enhance our returns through improving our capital efficiency. Following this, Jeff Kaminski will provide greater detail on our financial results after which I will offer some concluding remarks before opening the call up to your questions.
During the fourth quarter, we achieved continued progress across many of our core financial matrix. We reported $796 million in revenues, an increase of 29% over the prior year on 2,229 deliveries. Our average selling price up $351,500, which increased by 17% year-over-year, was a key contributor to our top line growth as our investment and product strategies continue to drive results. Our adjusted growth margin was 18.7%. I am disappointed with this result, as we expected to perform better, and I would provide additional details around this topic in a moment.
During the quarter, our SG&A ratio continued to improve, coming in at 10.5%, as we work to contain overhead costs, while growing our revenue. Net income for the quarter rose to $853 million or $8.36 per diluted share, reflecting both our operational result and the positive impact of our DTA reversal. With this