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KB Home (NYSE: KBH) | Company Profile, History, Competitors

 

KB Home (NYSE: KBH) is one of the largest public homebuilders in the United States. It was founded in 1957 and headquartered in Los Angeles, CA.

KB Home focuses on first-time, move-up and active adult homebuyers. KB Home also has a financial services reporting segment, which offers property and casualty insurance and mortgage banking services.

Business Overview

KB Home operates in 7 states and in 4 main segments:
  • West Coast (50% of 2017 Revenues): California
  • Central (27% of 2017 Revenues): Arizona, Nevada
  • Southwest (12% of 2017 Revenues): Colorado, Texas
  • Southeast (11% of 2017 Revenues): Florida, North Carolina

History

In 1957, the company was founded by Don Kaufman and Eli Broad as Kaufman and Broad Building Company. In 1961, the company went public and raised $1.8 million in an IPO. In 1965, Kaufman and Eli Broad founded the International Mortgage Company, which allowed the company to provide financing directly to customers. In 1967, the company expanded into France.

In 1986, the company reorganized and spun out Kaufman and Broad Home Corporation to focus on real estate development. In 1989, Kaufman and Broad Home Corporation spun into two companies: Broad, Inc, (which became SunAmerica) and Kaufman Broad Home, or KB Home.

Management

Jeffrey T. Mezger (CEO): Jeffrey Mezger serves as CEO since 2006. Prior, he served in various roles at the company including COO and Regional General Manager

Jeff Kaminski (CFO): Jeff Kaminski serves as CFO since 2010. Prior, he served as CFO of Federal-Mogul.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $2,097 $2,401 $3,032 $3,595 $4,369 
 Gross Profit $1,740 $1,989  $2,543  $3,045  $3,650 
 Operating Profit $101 $124  $146  $160  $179 
 Net Income$40 $916 $85  $105  $179 
 EPS$0.48$10.26 $0.92 $1.23$2.09