KB Home Increases Quarterly Dividend
July 15 2019 - 8:30AM
Business Wire
Company Raises Quarterly Cash Dividend to
$.09 from $.025 Per Share
KB Home (NYSE: KBH) today announced that its Board of Directors
approved an increase in the Company’s quarterly cash dividend on
its common stock, more than tripling the rate to $.09 per share
from $.025 per share. At the new quarterly rate, the annual cash
dividend will now be $.36 per share compared to the previous rate
of $.10 per share.
In addition, the Board of Directors declared the next quarterly
cash dividend, at the new rate, will be payable on August 15, 2019
to stockholders of record on August 1, 2019.
“With the success of our Returns-Focused Growth Plan in
increasing both our scale and profitability, improving our asset
efficiency and monetizing our deferred tax assets, we have
generated significant operating cash flow. We have taken a balanced
approach to allocating our capital, investing in the Company’s
future growth, reducing our debt and, now, returning a meaningfully
higher amount of cash to stockholders,” said Jeffrey Mezger,
chairman, president and chief executive officer.
“Our Company is poised for both a strong second half of 2019, as
well as a solid start to 2020, and we remain confident in KB Home’s
future,” continued Mezger. “Building on our more than 30-year
history of consistently paying a quarterly dividend, we are pleased
to further advance our long-standing commitment to increasing
stockholder returns with this dividend raise.”
About KB Home
KB Home (NYSE: KBH) is one of the largest homebuilders in the
United States, with more than 600,000 homes delivered since our
founding in 1957. We operate in 38 markets in eight states,
primarily serving first-time and first move-up homebuyers, as well
as second move-up and active adults. We are differentiated in
offering customers the ability to personalize what they value most
in their home, from choosing their lot, floor plan, and exterior,
to selecting design and décor choices in our KB Home Studios. In
addition, our industry leadership in sustainability helps to lower
the cost of homeownership for our buyers compared to a typical
resale home. We take a broad approach to sustainability,
encompassing energy efficiency, water conservation, healthier
indoor environments, smart home capabilities and waste reduction.
KB Home is the first national builder to have earned awards under
all of the U.S. EPA’s homebuilder programs — ENERGY STAR®,
WaterSense® and Indoor airPLUS®. We invite you to learn more about
KB Home by visiting www.kbhome.com, calling 888-KB-HOMES, or
connecting with us on Facebook.com/KBHome or
Twitter.com/KBHome.
Forward-Looking and Cautionary Statements
Certain matters discussed in this press release, including any
statements that are predictive in nature or concern future market
and economic conditions, business and prospects, our future
financial and operational performance, or our future actions and
their expected results are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on current expectations and
projections about future events and are not guarantees of future
performance. We do not have a specific policy or intent of updating
or revising forward-looking statements. Actual events and results
may differ materially from those expressed or forecasted in
forward-looking statements due to a number of factors. The most
important risk factors that could cause our actual performance and
future events and actions to differ materially from such
forward-looking statements include, but are not limited to the
following: general economic, employment and business conditions;
population growth, household formations and demographic trends;
conditions in the capital, credit and financial markets; our
ability to access external financing sources and raise capital
through the issuance of common stock, debt or other securities,
and/or project financing, on favorable terms; the execution of any
share repurchases pursuant to our board of directors’
authorization; material and trade costs and availability; changes
in interest rates; our debt level, including our ratio of debt to
capital, and our ability to adjust our debt level and maturity
schedule; our compliance with the terms of our revolving credit
facility; volatility in the market price of our common stock; weak
or declining consumer confidence, either generally or specifically
with respect to purchasing homes; competition from other sellers of
new and resale homes; weather events, significant natural disasters
and other climate and environmental factors; any failure of
lawmakers to agree on a budget or appropriation legislation to fund
the federal government’s operations, and financial markets’ and
businesses’ reactions to that failure; government actions,
policies, programs and regulations directed at or affecting the
housing market (including the TCJA, the Dodd-Frank Act, tax
benefits associated with purchasing and owning a home, and the
standards, fees and size limits applicable to the purchase or
insuring of mortgage loans by government-sponsored enterprises and
government agencies), the homebuilding industry, or construction
activities; changes in existing tax laws or enacted corporate
income tax rates, including those resulting from regulatory
guidance and interpretations issued with respect to the TCJA;
changes in U.S. trade policies, including the imposition of tariffs
and duties on homebuilding materials and products, and related
trade disputes with and retaliatory measures taken by other
countries; the adoption of new or amended financial accounting
standards, including revenue recognition (ASC 606) and lease
accounting standards, and the guidance and/or interpretations with
respect thereto; the availability and cost of land in desirable
areas, and our ability to timely develop acquired land parcels and
open new home communities; our warranty claims experience with
respect to homes previously delivered and actual warranty costs
incurred; costs and/or charges arising from regulatory compliance
requirements or from legal, arbitral or regulatory proceedings,
investigations, claims or settlements, including unfavorable
outcomes in any such matters resulting in actual or potential
monetary damage awards, penalties, fines or other direct or
indirect payments, or injunctions, consent decrees or other
voluntary or involuntary restrictions or adjustments to our
business operations or practices that are beyond our current
expectations and/or accruals; our ability to use/realize the net
deferred tax assets we have generated; our ability to successfully
implement our current and planned strategies and initiatives
related to our product, geographic and market positioning, gaining
share and scale in our served markets and in entering into new
markets; our operational and investment concentration in markets in
California; consumer interest in our new home communities and
products, particularly from first-time homebuyers and higher-income
consumers; our ability to generate orders and convert our backlog
of orders to home deliveries and revenues, particularly in key
markets in California; our ability to successfully implement our
Returns-Focused Growth Plan and achieve the associated revenue,
margin, profitability, cash flow, community reactivation, land
sales, business growth, asset efficiency, return on invested
capital, return on equity, debt to capital ratio and other
financial and operational targets and objectives; income tax
expense volatility related to stock-based compensation; the ability
of our homebuyers to obtain residential mortgage loans and mortgage
banking services; the performance of mortgage lenders to our
homebuyers; the performance of KBHS Home Loans, LLC, our mortgage
banking joint venture with Stearns Ventures, LLC; the process and
outcome of the voluntary bankruptcy filing involving Stearns
Ventures, LLC; information technology failures and data security
breaches; and other events outside of our control. Please see our
periodic reports and other filings with the Securities and Exchange
Commission for a further discussion of these and other risks and
uncertainties applicable to our business.
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version on businesswire.com: https://www.businesswire.com/news/home/20190715005109/en/
Jill Peters, Investor Relations Contact (310) 893-7456 or
investorrelations@kbhome.com
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