KBH Home Inc. - Nationwide public home builder

For KBH Home the zenith came at the top of the housing bubble with a profit of $842.4 million in 2005 which has fallen off to $482.35 million in 2006 and crashing to post a $929.41 million loss for the year 2007. The company delivered 37,140 (link) homes in 2005 vs 23,743 new homes in 2007 (link).

For the fiscal fourth quarter 2006 KBH Home reported recorded losses of $772.7 million, with revenues of $6.42 billion, down 32 percent from 2006. The company stated that it was looking forward to another tough year in 2008.

The results for the fourth quarter led to downgrades from Merrill Lynch and Citigroup which downgraded the entire sector (link link).

In addition KB Homes stated that the Securities and Exchange Commission was conducting a formal investigation into its stock option granting practices. They also face a shareholder lawsuit that "has been commenced, in the Central District of California, against certain members of the board of directors and certain executive officers of the Company. The complaint alleges that certain current and prior officers and directors manipulated the prices of executive and director stock option grants (a.k.a. back-dated stock options)."(link) In another legal matter KB Home was one of six builders who have agreed to pay $1.4 million to "settle federal allegations that they illegally established title insurance companies that took payments for a portion of the insurance risk."

KBH Home had 5100 employees as of Nov. 2007.