LOS ANGELES (AP) — KB Home says it turned a profit in its fiscal fourth quarter, the first time since early 2007, as the homebuilder benefited from a new tax rule that allowed it to offset past losses.
The company said Tuesday it earned $100.7 million, or $1.31 a share, in the three months ended Nov. 30. That included a tax gain of $191.7 million. On a pretax basis, KB Home lost $91 million as it abandoned land contracts and wrote down the value of joint ventures and inventory. In the fourth quarter of 2008, the builder lost $307.3 million, or $3.96 a share.
Revenue dropped to $674.6 million from $919 million in the prior year.
Analysts polled by Thomson Reuters expected a loss of 42 cents a share on revenue of $577.8 million.