KB Home ends third quarter with $1.04 billion in cash, expects to close year with similar amount

By Jennifer Lanning Drey

Savannah, Ga., Sept. 24 - KB Home ended the third quarter with $1.04 billion of cash and cash equivalents and expects it will end the year with roughly the same amount of cash, Jeff Kaminski, KB Home's chief financial officer, reported Friday during its quarterly earnings conference call.

"Our strong balance sheet remains an important foundation for our business," Kaminski said.

The company will spend more than $500 million on land and land development investments in 2010, which will lead to a meaningful increase in its community count in 2011, chief executive officer Jeffrey Mezger said during the call.

KB Home's strategic vision calls for the company to open more than 100 communities in 2011, Mezger said.

The CEO said the increased community count in 2011 is expected to position the company to grow its top line and accelerate its return to profitability.

KB Home narrowed its third-quarter net loss to $1.4 million, compared to a net loss of $66.0 million in the same period of 2009.

The company reported total revenues of $501 million in the third quarter, up from $458.5 million in the same period of 2009. It was the first time in nearly four years that it generated year-over-year quarterly revenue growth.

"I do feel we are bumping along the bottom, but do not expect significant improvement in housing dynamics until the economy is on firmer ground," Mezger said.

KB Home is a Los Angeles-based builder of single-family homes.

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