KB Home Q1 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst : My first question is, looking at the margins, you actually did a really nice job on the SG&A this quarter. It came in a little lower than what we had expected. The guide implies some further incremental leverage as we move through the year. Can you talk to the potential to continue to see some improvement there? And if things do change, what is your ability to sustain some of this relative benefit that you've seen?

Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst : Okay. That's helpful. And then my second question is, going back to the land market, you made the comment that you're staying geographically as you're buying new parcels. But as you think about an environment where rates are rising, obviously, home prices are going up as well, how do you think about the ability to strike the need to maintain affordability while still also staying geographically close and managing the risk on the land side? And I guess with that, are you seeing any signs that the industry overall is overstepping, overreaching at all on the land side? Do you think that everybody is staying fairly disciplined as it relates to that? Any signs that we're sort of getting closer maybe to some of the behaviors or activity that we saw in the last cycle? Or has it been pretty measured as you think about the growth that everyone is targeting and looking for over the next couple of years?