Printer Friendly

KAUFMAN AND BROAD REPORTS HIGHER FOURTH QUARTER, YEAR-END EARNINGS

 LOS ANGELES, Jan. 7 /PRNewswire/ -- Kaufman and Broad Home Corp. (NYSE: KBH) today reported earnings of $14.9 million for its fourth quarter ended Nov. 30, 1992, up 13 percent from $13.3 million in the fourth quarter of 1991. Primary earnings per share were $.41 vs. $.40 in the prior year's period. Revenues for the quarter totaled $384.6 million, up 21 percent from $317.8 million in the fourth quarter of 1991.
 For the year, the company's earnings increased to $28.2 million, up 6 percent from $26.5 million in 1991. Primary earnings per share decreased to $.78 from $.80 because of an increase in the average number of common shares outstanding. Revenues for the period totaled $1.09 billion, down 10 percent from $1.22 billion in 1991.
 Bruce Karatz, president and chief executive officer of Kaufman and Broad, said earnings in the fourth quarter and throughout 1992 reflected substantial improvement in the company's California home building operations as well as higher profits from commercial development, largely offset by declining profitability in its French housing business. Karatz added that revenues in the fourth quarter rose on higher contributions from both California housing and commercial development. For the year, revenues declined primarily because of lower commercial revenues in the first half of 1992.
 Profitability in the company's California operations rose in the fourth quarter on a 44 percent increase in unit volume and a stronger gross margin. Results from French housing fell because of a 56 percent decline in unit volume and a substantially reduced gross margin. Overall, Kaufman and Broad's construction gross margin declined in the fourth quarter to 18.6 percent from 21.6 percent in the prior year's period, because of the impact of French operations. Profits from commercial operations increased during the period as the company's share of pre-tax profits from unconsolidated joint ventures improved.
 Financial results throughout 1992 followed a similar pattern. California unit housing volume increased by 27 percent during the year, while gross margins improved. In France, unit housing volume decreased by 26 percent and gross margins were nearly halved in response to deteriorating economic conditions. Commercial development volume declined during the year as the company delivered one of its largest office projects and prepared to deliver a second in mid-1993. However, the impact of this decline was more than offset by a number of unconsolidated commercial joint ventures that contributed nearly $7 million to pre-tax income. For the year, the company's construction gross margin rose slightly to 17.7 percent, from 17.0 percent in 1991.
 Worldwide, Kaufman and Broad delivered 4,953 housing units in 1992, up from 4,456 in 1991. The average price of these new homes decreased to $171,300 from $178,900 in the prior year, reflecting the company's successful efforts to lower the average price of its product line in California. New home deliveries in the state rose to 3,944 units from 3,095; French deliveries decreased to 839 units from 1,140.
 Kaufman and Broad's new home orders in California surged throughout 1992, establishing new records in every quarter of the year. Despite a third year of declining housing starts in the state, the company sold 4,366 units in 1992, up 48 percent from 2,950 in 1991. Orders continued to climb in the fourth quarter, rising 49 percent to 1,047 units from 703 in the same period of 1991. At year-end, the company was marketing new homes through 56 active communities in California, compared to 37 a year ago. Backlog in the state at year-end stood at 819 units, more than double the 397 of a year earlier.
 In contrast, new home orders in France declined in each quarter of 1992, compared to the prior year's period. For the year, new orders totaled 671 units, down 42 percent from 1,164 in 1991. High interest rates and deteriorating economic conditions in France throughout the year created increasingly difficult circumstances for new home sales. Fourth quarter orders dropped to 190 units, down 51 percent from 389 in the fourth quarter of 1991. The company's French housing backlog at the end of the quarter totaled 212 units, down from 380 a year ago.
 Entering 1993, Karatz said Kaufman and Broad is prepared to expand its business despite forecasts of continued economic weakness in its two primary markets. In California, where economists expect difficult conditions to persist in at least some areas of the state well into 1993, the company will use its formidable capital resources and a hugely popular line of entry-level housing products to aggressively pursue further increases in production and profitability. French markets will likely present a continuing challenge for Kaufman and Broad in the new year, and the company will 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 the largest builder in metropolitan Paris, where the company develops commercial 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 Twelve Months and Three Months Ended Nov. 30, 1992 and 1991
 (In thousands, except per share amounts)
 12 Months 3 Months
 1992 1991 1992 1991
 Total revenues $1,094,168 $1,220,995 $384,605 $317,751
 Construction:
 Revenues $1,052,525 $1,176,386 $373,969 $306,355
 Costs and expenses (993,628) (1,100,349) (344,510) (277,319)
 Operating income 58,897 76,037 29,459 29,036
 Interest income 4,440 3,654 1,158 1,204
 Interest expenses,
 net of amounts
 capitalized (17,589) (16,086) (6,614) (3,958)
 Minority interests in
 pre-tax income of
 consolidated
 joint ventures (11,746) (21,263) (2,266) (5,256)
 Equity in pre-tax
 income (loss) of
 unconsolidated
 joint ventures 6,940 (3,258) 1,059 (1,954)
 Construction
 pre-tax income 40,942 39,084 22,796 19,072
 Mortgage banking:
 Revenues:
 Interest income 32,510 37,327 7,508 9,151
 Other 9,133 7,282 3,128 2,245
 Total 41,643 44,609 10,636 11,396
 Expenses:
 Interest (32,775) (36,679) (7,946) (9,073)
 General and
 administrative (4,312) (3,494) (1,355) (1,145)
 Mortgage banking
 pre-tax income 4,556 4,436 1,335 1,178
 Total pre-tax income 45,498 43,520 24,131 20,250
 Income taxes (17,300) (17,000) (9,200) (7,000)
 Net income $28,198 $26,520 $14,931 $13,250
 Earnings per common
 share:
 Primary $.78 $.80 $.41 $.40
 Fully diluted .77 .79 .39 .38
 Average common shares
 outstanding:
 Primary 36,372 33,351 36,661 33,535
 Fully diluted 36,386 33,625 42,858 39,839
 KAUFMAN AND BROAD HOME CORP.
 Consolidated Balance Sheets
 (In thousands)
 Nov. 30, Nov. 30,
 1992 1991
 Assets
 Construction:
 Cash and cash equivalents $60,887 $46,573
 Receivables 139,582 156,086
 Inventories 725,014 654,341
 Investments in unconsolidated
 joint ventures 28,791 20,979
 Other assets 32,830 38,023
 Total 987,104 916,002
 Mortgage banking:
 Cash and cash equivalents 5,053 4,295
 Receivables 430,855 442,950
 Other assets 8,748 9,776
 Total 444,656 457,021
 Total assets $1,431,760 $1,373,023
 Liabilities and
 Shareholders' Equity
 Construction:
 Accounts payable $149,791 $151,089
 Accrued expenses and other
 liabilities 66,411 73,053
 Mortgages and notes payable 258,147 230,580
 Total 474,349 454,722
 Mortgage banking:
 Accounts payable and
 accrued expenses 23,746 15,909
 Notes payable 143,700 84,000
 Collateralized mortgage
 obligations secured by
 mortgage-backed securities 222,948 300,894
 Total 390,394 400,803
 Convertible subordinated notes 162,022 149,798
 Deferred income taxes 68,932 57,087
 Minority interests in
 consolidated joint ventures 17,630 52,507
 Shareholders' equity 318,433 258,106
 Total liabilities and
 shareholders' equity $1,431,760 $1,373,023
 KAUFMAN AND BROAD HOME CORP.
 Supplemental Information


For the Twelve Months and Three Months Ended Nov. 30, 1992 and 1991
 Construction Revenues: 12 Months 3 Months
 1992 1991 1992 1991
 Housing $849,224 $799,103 $290,326 $266,336
 Commercial 191,071 354,236 74,565 36,501
 Land 12,230 23,047 9,078 3,518
 Total $1,052,525 $1,176,386 $373,969 $306,355
 Costs and Expenses: 12 Months 3 Months
 1992 1991 1992 1991
 Construction
 and Land Costs $866,070 $976,020 $304,449 $240,302
 Selling, general
 and administrative
 expenses 127,558 124,329 40,061 37,017
 Total $993,628 $1,100,349 $344,510 $277,319
 Average Sales Prices: 12 Months 3 Months
 1992 1991 1992 1991
 California $164,100 $176,400 $169,900 $166,100
 France 217,400 196,100 213,300 187,500
 Canada 109,900 125,600 119,200 127,700
 Total $171,300 $178,900 $174,900 $172,400
 Net Orders: 12 Months 3 Months
 1992 1991 1992 1991
 California 4,366 2,950 1,047 703
 France 671 1,164 190 389
 Canada 194 260 20 69
 Total 5,231 4,374 1,257 1,161
 Unit Deliveries: 12 Months 3 Months
 1992 1991 1992 1991
 California 3,944 3,095 1,394 971
 France 839 1,140 231 529
 Canada 170 221 33 40
 Total 4,953 4,456 1,658 1,540
 Backlog Data: Nov. 30, 1992 Nov. 30, 1991
 Backlog Backlog Backlog Backlog
 Units Value Units Value
 California 819 $137,899 397 $65,545
 France 212 47,158 380 74,726
 Canada 100 11,900 76 9,728
 Total 1,131 $196,957 853 $149,999
 -0- 1/7/92
 /CONTACT: Eileen Rose of Kaufman and Broad, 310-443-8041/
 (KBH)


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

JL-KJ -- LA012 -- 2474 01/07/93 08:32 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 7, 1993
Words:1643
Previous Article:CARNIVAL CRUISE LINES REPORTS RECORD 1992 REVENUES AND EARNINGS
Next Article:STATE-O-MAINE, INC. ANNOUNCES THIRD QUARTER RESULTS
Topics:


Related Articles
KAUFMAN AND BROAD FOURTH QUARTER EARNINGS RISE FOURFOLD ON IMPROVING CALIFORNIA RESULTS
KAUFMAN AND BROAD HOME CORP. CONTINUE TO EXPERIENCE SURGE IN NEW HOME SALES
KAUFMAN AND BROAD REPORTS THIRD QUARTER EARNINGS OF $5.9 MILLION
KAUFMAN AND BROAD REPORTS HIGHER FIRST QUARTER EARNINGS
KAUFMAN AND BROAD REPORTS HIGHER SECOND QUARTER RESULTS ON CONTINUED IMPROVEMENT IN CALIFORNIA
Kaufman and Broad Reports 78.9% Increase in Third Quarter Earnings Per Share.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters