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KAUFMAN AND BROAD REPORTS HIGHER FIRST QUARTER EARNINGS

 LOS ANGELES, March 23 /PRNewswire/ -- Kaufman and Broad Home Corp. (NYSE: KBH, KBS) today reported earnings of $4.4 million for its first quarter ended Feb. 28, 1993, up 28 percent from $3.4 million in the first quarter of 1992. Primary earnings per share were $.12 vs. $.10 in the prior-year's period. Revenues for the quarter totaled $224.9 million, up 22 percent from $184.5 million in the first quarter of 1992.
 Bruce Karatz, president and chief executive officer of Kaufman and Broad, said first quarter earnings rose on continued improvement in the company's California housing operations, partially offset by lower results in French housing and commercial development operations. Profits in California rose primarily because of a 59 percent increase in unit volume. Results from French housing fell on a 39 percent decline in unit volume and a lower average gross margin.
 Worldwide, Kaufman and Broad delivered 1,067 new homes in the first quarter of 1993, up 26 percent from 846 in the first quarter of 1992. The average price of these new homes increased to $169,400 from $160,500 in the prior-year's quarter on a 7 percent increase in the average price of California deliveries, largely because of a shift in regional mix. The company's average new home price in France declined 2 percent for the period. New home deliveries in California rose to 952 units from 600; French deliveries decreased to 111 units from 183.
 Kaufman and Broad's net new home orders continued to grow in California during the first quarter of 1993, rising 33 percent to 1,194 units from 895 in the prior-year's first quarter. The company also reported 61 net new home orders for the period from its newly opened Las Vegas division. Domestic backlog totaled 1,122 units at Feb. 28, 1993, up 62 percent from the year-earlier quarter end. The company's net new home orders in France declined 25 percent in the first quarter to 121 units from 162 in the first quarter of 1992. French housing backlog at quarter-end totaled 222 units, down 38 percent from the year-earlier level.
 Financial results from the company's commercial development operations declined in the first quarter of 1993, primarily because of the completion of Atlantique Montparnasse, a large development project, during the year-earlier period. Commercial development contributed $31 million to consolidated revenues in the first quarter of 1993, down 14 percent from $36 million in the prior-year's quarter.
 Kaufman and Broad continued to expand its domestic housing business during the first quarter of 1993 despite lingering recessionary conditions in California. Drawing on its substantial capital resources, the company has responded to the relative strength of the entry-level housing market by increasing production in existing markets and expanding into new markets. At the beginning of the quarter, Kaufman and Broad announced the opening of its new Las Vegas division. Since then, the company has opened two new home communities there and acquired more than 400 lots.
 At first quarter's end, Kaufman and Broad was selling from 64 active communities in California and Nevada, up from 38 a year ago. The company plans to open up to 60 new home communities during 1993, compared to 40 opened in 1992.
 Kaufman and Broad also increased its domestic unsecured revolving credit facility by $20 million, to $325 million, in March of this year. As previously announced, the company also recently filed two registration statements with the Securities and Exchange Commission. The first statement is for the registration of 5 million depositary shares, each representing one-fifth of a share of Series B Mandatory Conversion Premium Dividend Preferred Stock. The second statement is for the registration of $175 million of 10-year, senior subordinated notes.
 In France, real estate markets remained deeply depressed, reflecting high interest rates, high unemployment levels and weak consumer confidence. The company continues to operate with extreme caution in metropolitan Paris until signs of a recovery begin to emerge.
 Los Angeles-based Kaufman and Broad Home Corp. is California's largest home builder and among the largest builders in metropolitan Paris, where the company develops office properties and a variety of residential investment properties in addition to single-family homes.
 KAUFMAN AND BROAD HOME CORP.
 Consolidated Statements of Income
 For the Three Months Ended Feb. 28, 1993 and Feb. 29, 1992
 (In thousands, except per share amounts; Unaudited)
 Three Months
 1993 1992
 Total revenues $224,895 $184,473
 Construction:
 Revenues $215,963 $173,891
 Costs and expenses (203,263) (165,600)
 Operating income 12,700 8,291
 Interest income 883 1,459
 Interest expense, net of
 amounts capitalized (4,173) (2,461)
 Minority interests in pretax income
 of consolidated joint ventures (2,517) (4,560)
 Equity in pretax income (loss)
 of unconsolidated joint ventures (982) 1,753
 Construction pretax income 5,911 4,482
 Mortgage banking:
 Revenues:
 Interest income 7,019 8,817
 Other 1,913 1,765
 Total 8,932 10,582
 Expenses:
 Interest (6,871) (8,733)
 General and administrative (903) (824)
 Mortgage banking pretax income 1,158 1,025
 Total pretax income 7,069 5,507
 Income taxes (2,700) (2,100)
 Net income $4,369 $3,407
 Earnings per common share:
 Primary $.12 $.10
 Fully diluted .12 .10
 Average common shares outstanding:
 Primary 37,115 35,147
 Fully diluted 37,255 35,471
 KAUFMAN AND BROAD HOME CORP.
 Consolidated Balance Sheets
 (In thousands; Unaudited)
 Feb. 28, Nov. 30, Feb. 29,
 1993 1992 1992
 Assets
 Construction:
 Cash and cash equivalents $35,874 $60,887 $30,216
 Receivables 103,141 139,582 155,301
 Inventories 797,928 725,014 692,653
 Investments in unconsolidated
 joint ventures 25,965 28,791 25,951
 Other assets 38,512 32,830 37,853
 Total 1,001,420 987,104 941,974
 Mortgage banking:
 Cash and cash equivalents 3,833 5,053 702
 Receivables 366,720 430,855 414,551
 Other assets 8,636 8,748 9,515
 Total 379,189 444,656 424,768
 Total assets $1,380,609 $1,431,760 $1,366,742
 Liabilities and Shareholders' Equity
 Construction:
 Accounts payable $125,816 $149,791 $144,366
 Accrued expenses and other
 liabilities 61,196 66,411 58,639
 Mortgages and notes payable 300,654 258,147 263,059
 Total 487,666 474,349 466,064
 Mortgage banking:
 Accounts payable and accrued
 expenses 15,978 23,746 19,354
 Notes payable 102,500 143,700 66,024
 Collateralized mortgage
 obligations secured by
 mortgage-backed securities 207,508 222,948 286,902
 Total 325,986 390,394 372,280
 Convertible subordinated notes 165,213 162,022 152,749
 Deferred income taxes 64,949 68,932 60,030
 Minority interests in
 consolidated joint ventures 18,849 17,630 54,722
 Shareholders' equity 317,946 318,433 260,897
 Total liabilities and
 shareholders' equity $1,380,609 $1,431,760 $1,366,742
 KAUFMAN AND BROAD HOME CORP.
 Supplemental Information
 For the Three Months Ended Feb. 28, 1993 and Feb. 29, 1992
 (Unaudited)
 Three months
 1993 1992
 Construction revenues:
 Housing $180,887 $135,932
 Commercial 31,187 36,339
 Land 3,889 1,620
 Total $215,963 $173,891
 Three months
 1993 1992
 Costs and expenses:
 Construction and land costs $176,081 $141,357
 Selling, general and
 administrative expenses 27,182 24,243
 Total $203,263 $165,600
 Three months
 1993 1992
 Average sales prices:
 California $167,200 $156,900
 France 189,500 193,300
 Canada 122,800 99,000
 Total $169,400 $160,500
 Three months
 1993 1992
 Net orders:
 California 1,194 895
 Nevada 61 ---
 France 121 162
 Canada 11 27
 Total 1,387 1,084
 Three months
 1993 1992
 Unit deliveries:
 California 952 600
 Nevada --- ---
 France 111 183
 Canada 4 63
 Total 1,067 846
 Feb. 28, 1993 Feb. 29, 1992
 Backlog Backlog Backlog Backlog
 Units Value Units Value
 Backlog data:
 California 1,061 $177,787 692 $111,091
 Nevada 61 6,344 --- ---
 France 222 41,181 359 87,106
 Canada 107 13,161 40 3,960
 Total 1,451 $238,473 1,091 $202,157
 -0- 3/23/93
 /CONTACT: Eileen Rose of Kaufman and Broad Home Corp., 310-443-8039/
 (KBH KBS)


CO: Kaufman and Broad Home Corp. ST: California IN: CST SU: ERN

MS-JL -- LA007 -- 8505 03/23/93 08:34 EST
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Date:Mar 23, 1993
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