KB Home (NYSE:KBH) Q4 2022 Earnings Conference Call January 11, 2022 5:00 PM ET

Company Participants

Jill Peters - SVP, Investor Relations

Jeff Mezger - Chairman, President and Chief Executive Officer

Rob McGibney - Executive Vice President and Chief Operating Officer

Jeff Kaminski - Executive Vice President and Chief Financial Officer

Conference Call Participants

Matthew Bouley - Barclays

Stephen Kim - Evercore ISI

Michael Rehaut - JPMorgan

John Lovallo - UBS

Alan Ratner - Zelman & Associates

Susan Maklari - Goldman Sachs

Jay McCanless - Wedbush

Operator

Good afternoon. My name is John and I'll be your conference operator today. I would like to welcome everyone to the KB Home 2022 Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the company's opening remarks, we will open the lines for questions. Today's conference call is being recorded and will be available for replay at the company's website, kbhome.com through February 11.

And now, I'd like to turn the call over to Jill Peters, Senior Vice President, Investor Relations. Thank you, Jill, you may begin.

Jill Peters

Thank you, John. Good afternoon, everyone and thank you for joining us today to review our results for the fourth quarter of fiscal 2022. On the call, are Jeff Mezger, Chairman, President and Chief Executive Officer; Rob McGibney, Executive Vice President and Chief Operating Officer; Jeff Kaminski, Executive Vice President and Chief Financial Officer; Bill Hollinger, Senior Vice President and Chief Accounting Officer; and Thad Johnson, Senior Vice President and Treasurer.

During this call, items will be discussed that are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results and the company does not undertake any obligation to update them. Due to various factors, including those detailed in today's press release and in our filings with the Securities and Exchange Commission, actual results could be materially different from those stated or implied in the forward-looking statements.

In addition, a reconciliation of the non-GAAP measures referenced during today's discussion to their most directly comparable GAAP measures can be found in today's press release and/or on the Investor Relations page of our website at kbhome.com.

And with that, here is Jeff Mezger.

Jeff Mezger

Thank you, Jill. Good afternoon, everyone, and Happy New Year. We are pleased with our financial results in 2022, during which we produced revenues of $6.9 billion, a year-over-year increase of 21%; net income of $817 million, a rise of 45%; and diluted earnings per share of $9.09, up 51%. Our top line growth, together with the expansion of our operating margin to over 15%, drove our return on equity of 470 basis points to 24.6% and contributed to 27% growth in book value per share to over $43.