KB Home hemorrhages from every orifice
For the quarter ended Nov. 30, the company posted a loss of $772.7 million, or $9.99 per share, compared with a loss of $49.6 million, or 64 cents per share, in the year-ago period.
KB Home said the revenue decline was due largely to a 22 percent drop in new home deliveries, which fell to 8,132 compared to 10,386 in the same quarter of 2006.
The average selling price of the company's homes also slipped, down 12 percent to $247,800 from $280,000 in the fourth quarter of 2006.
The company's backlog of orders for new homes -- a key indicator of potential for future revenue -- fell 40 percent during the quarter. Its backlog as of Nov. 30 stood at 6,322 units, down from 10,575 units as of the same date in 2006.
Net orders fell 32 percent to 2,574 from 3,763 orders in the same quarter of 2006.
The order cancellation rate during the quarter was 58 percent, unchanged compared to the same quarter in 2006 but up from 50 percent in the third quarter