KB Home (NYSE: KBH) reported Q4 EPS of $8.36, which may not compare with the analyst estimate of $0.56. Revenue for the quarter came in at $796 million versus the consensus estimate of $778.5 million.

• The Company delivered 2,229 homes in the fourth quarter, an increase of 9% from 2,038 homes delivered in the year-earlier quarter. More homes were delivered in each of the Company’s homebuilding regions compared to the fourth quarter of 2013.
• The overall average selling price of homes delivered rose 17% to $351,500, up from $301,100 for the same period of 2013, marking the Company’s 18th straight quarter of year-over-year growth.
  • The increase in the average selling price was largely due to a shift in the regional mix of homes delivered and higher home selling prices at communities located in northern California markets within the Company’s West Coast homebuilding region, as well as generally favorable market conditions.
  • Average selling prices were higher in all of the Company’s homebuilding regions compared to the same quarter of 2013, with increases ranging from 1% in the Southwest region to 17% in the West Coast region.

Backlog and Net Orders

• The Company’s backlog at November 30, 2014 was comprised of 2,909 homes, up 14% from 2,557 homes in backlog at November 30, 2013. Potential future housing revenues in backlog grew 34% to $914.0 million at November 30, 2014 from $682.5 million at November 30, 2013.
  • The number of homes in backlog and corresponding backlog value at November 30, 2014 reached their highest year-end levels since 2007.
• Total net order value in the 2014 fourth quarter rose 22% to $587.4 million, up from $481.7 million in the year-earlier quarter. This marked the 11th straight quarter of year-over-year increases.
  • Three of the Company’s four homebuilding regions posted year-over-year growth in net order value, ranging from 9% in the Central region to 41% in the Southwest region. The Company’s Southeast region was essentially flat with the same quarter a year ago.
• Fourth quarter net orders increased 10% to 1,706 from 1,556 for the year-earlier quarter, reflecting the Company’s higher average community count and its emphasis on balancing home selling prices and sales pace to optimize the performance of its new home communities.
  • The current quarter cancellation rate as a percentage of gross orders was roughly flat with 2013 at 37%. As a percentage of beginning backlog, the fourth quarter cancellation rate was 29% for both 2014 and 2013.
• The overall average community count for the fourth quarter increased 13% to 214 from 190 for the year-earlier quarter.
  • The Company ended 2014 with 227 communities open for sales, up 19% from 191 communities a year ago. The Company’s year-end community count has increased 32% over the past two years.

For earnings history and earnings-related data on KB Home (KBH) click here.