KB Home Provides Update on 2020 Third Quarter Order Growth

KB Home (NYSE: KBH) today announced that for the months of June and July 2020 its gross orders collectively increased 14% year over year to 3,275, and net orders grew 17% to 2,682. The cancellation rate for the period improved to 18%, from 20% in the year-earlier period. The Company’s net order growth reflected year-over-year increases of 11% in June and 23% in July. The update was provided in advance of virtual meetings between management and investors at the Barclays Select Series: Building & Building Products event on August 6, 2020.

“We experienced an acceleration in net order growth through the first two months of our 2020 third quarter, with an exceptionally strong monthly absorption rate per community of 5.5, up 22% year over year,” said Jeffrey Mezger, Chairman, President and Chief Executive Officer. “We believe our affordably priced products in desirable locations and our Built-to-Order model, which provides personalization and choice, are the key drivers of our healthy sales pace, together with historically low mortgage interest rates and an increase in housing demand. While all of our communities are open to walk-in traffic, following appropriate safety protocols and applicable public health guidelines, homebuyers have options in how they engage with us, as we have reimagined our online homebuying experience with a broad range of enhanced tools, including virtual home tours, interactive floor plans, live chats with our sales counselors and online consultations in our Design Studios, underscoring our robust virtual selling capability.”

About KB Home

KB Home is one of the largest and most recognized homebuilders in the United States and has been building quality homes for over 60 years. Today, KB Home operates in 42 markets across eight states, serving a wide array of buyer groups. What sets us apart is how we give our customers the ability to personalize their homes from homesites and floor plans to cabinets and countertops, at a price that fits their budget. We are the first builder to make every home we build ENERGY STAR certified. In fact, we go beyond the EPA requirements by ensuring every ENERGY STAR certified KB home has been tested and verified by a third-party inspector to meet the EPA’s strict certification standards, which help to lower the cost of ownership and to make our new homes healthier and more comfortable than new ones without certification. We also work with our customers every step of the way, building strong personal relationships so they have a real partner in the homebuying process, and the experience is as simple and easy as possible. Learn more about how we build homes built on relationships by visiting kbhome.com.