KB Home Increases Stock Repurchase Authorization and Declares Third Quarter 2021 Dividend

Rhea-AI Summary

KB Home (NYSE: KBH) announced an expansion of its stock repurchase program from 2 million to 5 million shares, with purchases made at management's discretion. Additionally, the Board declared a quarterly cash dividend of $0.15 per share, payable on August 19, 2021. CEO Jeffrey Mezger emphasized the company's strong cash flow, balanced capital allocation, and commitment to shareholder returns while maintaining flexibility for opportunistic share buybacks. KB Home is recognized for its energy-efficient homes and has built nearly 650,000 homes over its 60-year history.

Positive

• Expansion of stock repurchase program from 2 million to 5 million shares, enhancing shareholder value.
• Quarterly dividend of $0.15 per share reflects strong operating cash flow and commitment to returning cash to shareholders.
• Positioning for opportunistic buybacks demonstrates confidence in future performance.

Negative

• None.

KB Home (NYSE: KBH) today announced that its Board of Directors authorized an expansion of the Company’s stock repurchase program from approximately two million shares to up to five million shares of the Company’s common stock. Repurchases may occur periodically through open market purchases, privately negotiated transactions or otherwise, with the timing and amount at management’s discretion and dependent on market, business and other conditions.

In addition, the Board of Directors declared a quarterly cash dividend of $.15 per share on the Company's common stock, payable on August 19, 2021 to stockholders of record on August 5, 2021.

“As our business continues to generate a significant level of operating cash flow, we are using a consistent and balanced approach in allocating our capital, by investing in our future growth, addressing our debt maturities, and returning cash to stockholders, with one of the highest dividend yields in our industry. At the same time, we want to be positioned to repurchase our shares opportunistically and this increased authorization provides us with that flexibility,” said Jeffrey Mezger, Chairman, President and Chief Executive Officer.

About KB Home
KB Home is one of the largest and most recognized homebuilders in the United States and has built nearly 650,000 quality homes in our more than 60-year history. Today, KB Home operates in 45 markets from coast to coast. What sets KB Home apart is the exceptional personalization we offer our homebuyers—from those buying their first home to experienced buyers—allowing them to make their home uniquely their own, at a price that fits their budget. As the leader in energy-efficient homebuilding, KB Home was the first builder to make every home it builds ENERGY STAR® certified, a standard of energy performance achieved by fewer than 10% of new homes in America, and has built more ENERGY STAR certified homes than any other builder. An energy-efficient KB home helps lower the cost of ownership and is designed to be healthier, more comfortable and better for the environment than homes without certification. We build strong, personal relationships with our customers so they have a real partner in the homebuying process. As a result, we have the distinction of being the #1 customer-ranked national homebuilder in third-party buyer satisfaction surveys. Learn more about how we build homes built on relationships by visiting 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. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. In particular, our ability to maintain our present capital allocation approach and/or repurchase shares of our common stock pursuant to our board of directors’ authorization will be affected by our ability to generate free cash flow at the levels anticipated and our ability to successfully implement our business strategies and achieve any associated financial and operational targets and objectives. Please see our periodic reports and other filings with the Securities and Exchange Commission for a further discussion of risks and uncertainties applicable to our business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210708005198/en/

FAQ

What is the new stock repurchase limit for KB Home?

KB Home has expanded its stock repurchase program limit from approximately 2 million shares to up to 5 million shares.

When is the dividend payable to KB Home shareholders?

The quarterly cash dividend of $0.15 per share is payable on August 19, 2021, to stockholders of record on August 5, 2021.

What did Jeffrey Mezger say about KB Home's capital allocation?

Jeffrey Mezger highlighted that the company is using a balanced approach in capital allocation, investing in future growth, addressing debt, and returning cash to shareholders.

How does KB Home's repurchase program impact its stock?

The increase in the stock repurchase program is expected to enhance shareholder value and provides the company flexibility to buy back shares when conditions are favorable.