KB Home Announces New $1 Billion Share Repurchase Authorization and Increase in Quarterly Dividend
19 April 2024 - 6:10AM
Business Wire
Company Raises Quarterly Cash Dividend 25%
to $.25 per Share
KB Home (NYSE: KBH) today announced that its Board of Directors
authorized the repurchase of up to $1.00 billion of the Company’s
outstanding common stock, replacing a prior authorization, which
had $113.6 million remaining. The Company intends to continue its
share repurchases in 2024 in a projected range of between $200
million and $400 million for the full year, including $50 million
of share repurchases completed during the Company’s 2024 first
quarter.
The Company’s Board also approved an increase in the quarterly
cash dividend on the Company’s common stock to $.25 per share from
$.20 per share. This 25% increase results in an annualized dividend
of $1.00 per share, representing a yield of approximately 1.6%,
based on the closing price of KB Home’s common stock on April 17,
2024. The yield is in-line with the Company’s long-standing target
of about 1.5%. Together with the increase the Board authorized in
July 2023, the Company has raised its quarterly dividend by 67% in
the past nine months.
In addition, the Company’s Board of Directors declared a
quarterly cash dividend, at the $.25 per share rate, which will be
payable on May 23, 2024, to stockholders of record on May 9,
2024.
“With a strong balance sheet and confidence in our ability to
generate a significant level of operating cash flow as we continue
to evolve into a larger and more profitable company, we are
committed to our balanced approach of investing in our growth while
simultaneously returning a meaningful level of cash to
stockholders,” said Jeffrey Mezger, Chairman and Chief Executive
Officer. “Today’s actions by our Board of Directors underscore our
commitment to long-term value creation.”
About KB Home
KB Home is one of the largest and most trusted homebuilders in
the United States. We operate in 47 markets, have built over
680,000 quality homes in our more than 65-year history, and are
honored to be the #1 customer-ranked national homebuilder based on
third-party buyer surveys. What sets KB Home apart is building
strong, personal relationships with every customer and creating an
exceptional homebuying experience that offers our homebuyers the
ability to personalize their home based on what they value at a
price they can afford. As the industry leader in sustainability, KB
Home has achieved one of the highest residential energy-efficiency
ratings and delivered more ENERGY STAR® certified homes than any
other builder, helping to lower the total cost of homeownership.
For more information, visit kbhome.com.
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. If we update or revise any
such statement(s), no assumption should be made that we will
further update or revise that statement(s) or update or revise any
other such statement(s). 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, including the amount of our common stock we may
repurchase under the new Board of Directors’ authorization, to
differ materially from such forward-looking statements include, but
are not limited to the following: general economic, employment and
business conditions; 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;
changes in interest rates, including those set by the Federal
Reserve, which the Federal Reserve has increased sharply over the
past two years and may further increase to moderate inflation, and
those available in the capital markets or from financial
institutions and other lenders, and applicable to mortgage loans;
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 and our
senior unsecured term loan; the ability or willingness of the
applicable lenders and financial institutions, or any substitute or
additional lenders and financial institutions, to meet their
commitments or fund borrowings, extend credit or provide payment
guarantees to or for us under our revolving credit facility or
unsecured letter of 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; 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 ability to generate orders and
convert our backlog of orders to home deliveries, cash flow and
revenues, particularly in key markets in California; our ability to
successfully implement our business strategies and achieve any
associated financial and operational targets and objectives,
including those discussed in this release or in any of our other
public filings, presentations or disclosures; and other events
outside of our control. Additionally, specifically as to common
stock repurchases, their pace, volume and timing is expected to be
based on considerations of, among other things, our cash flow,
liquidity outlook, land investment opportunities and needs, the
market price of our shares, and the housing market and general
economic environment. 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/20240418580138/en/
Jill Peters, Investor Relations Contact (310) 893-7456 or
investorrelations@kbhome.com
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