KBH Home Inc. - Nationwide public home builder

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2008-03-03

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stories: corporate-ir.net, corporate-ir.net, marketwatch.com

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.

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Comments:

lyon at 10:33 2009-01-23 said:

www.disposablekbhome.com Permalink

John R at 21:15 2009-02-06 said:

Give it a rest! Your web site shows some settlement cracks and nail pops which are normal! Trying to get paid by KB for normal settlement cracks & nail pops is ridiculous! Did you demand money from the auto maker when your tires started showing wear on them? Of course not.

There are many home buyers, contractors, employees, lenders, developers who have legitimate concerns and are trying to get through a difficult time. Therefore, please stop clogging up this web site with your petty money grab attempt. Permalink

BadMoon at 22:00 2009-02-06 said:

who appointed you the expert, telling someone to give it a rest? Permalink

John R at 14:06 2009-02-07 said:

No one appointed me to be the expert, its just called common sence. You can go into any model in the $200,000 price range and under and see settlement cracks & nail pops.

Again........

There are many home buyers, contractors, employees, lenders, developers who have legitimate concerns and are trying to get through a difficult time. Crying over settlement cracks & nail pops helps no one. Permalink

messanger777 at 11:25 2009-02-09 said:

I think this poster (disposablekbhomes) nees to find a new hobby. Janet already has this one covered. Lyon, Your "major defects" are really neither. IMHO. Permalink

messanger777 at 12:47 2009-02-09 said:

No problem with people Badmoon. Just offering my opinion. Much like you have done. Both have the same value. Permalink

BadMoon at 13:31 2009-02-09 said:

Glad to hear you say that every person has value, even those that don't deserve it. However, not everyone thinks that way though. Permalink

Janet Ahmad at 12:36 2009-02-21 said:

Give it a rest! Your web site shows some settlement cracks and nail pops which are normal! Trying to get paid by KB for normal settlement cracks & nail pops is ridiculous! Did you demand money from the auto maker when your tires started showing wear on them? Of course not. There are many home buyers, contractors, employees, lenders, developers who have legitimate concerns and are trying to get through a difficult time. Therefore, please stop clogging up this web site with your petty money grab attempt...No one appointed me to be the expert, its just called common sence. You can go into any model in the $200,000 price range and under and see settlement cracks & nail pops.

Perhaps you guys were too hasty to dismiss this as normal; did you really look at the photos and the extent of these cracks? http://www.hobb.org/component/option,com_zoom/Itemid,468/catid,32/ http://www.disposablekbhome.com/?p=3#more-3 Permalink

John R at 22:46 2009-03-08 said:

How interesting........ New pics show up on Lyon's web site at the same time Janet makes her comment here.

Why not let KB/foundation engineering company live up to their contractual obligation to have the foundation repaired? Presuming that the new pics dated Feb 21st 2009 are actually of Lyon’s home, there should be no problem having the foundation repaired. If you are past the 10 year warranty period, then your Home Owners Insurance policy should cover it. Either way, the home gets repaired and Lyon does not have to pay for it. Permalink

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Important: Ailing Builders haven't shut down, but they've suffered significant valuation declines, temporarily halted redemptions, or faced other major business hurdles. Builders on watch may not even have unusual declines relative to peers, but may be posted if it is felt there may be risk of developing a more serious condition in the near future.