KB Home Q2 2021 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, you mentioned in your comments that your studio options and your lot premiums are adding about $45,000 per home. Can you give us some sense of how that compares historically where that's been. And you mentioned that there is upside to that over time. Can you talk to how you think about where that can get to and the benefit that, that can drive in margins over time?

Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst : Yes. Okay. All right. And then obviously, you've seen some delays in bringing some of these communities online. I know you mentioned that you still expect to grow your community count double digit next year, but as we think about the puts and the takes that have come in -- that are coming through over the next 2 quarters, should we expect that there's actually maybe some upside to that 10% target that you've given us for 2022? Or how should we think about the way that, that could come together?

Question: Margaret Jane Wellborn - JPMorgan Chase & Co, Research Division - Analyst : This is Maggie on for Mike. First question, just trying to get a sense of how your sales pace trended sequentially. On an absolute basis, could you give us what that pace was from month-to-month during the quarter? And maybe any comments on what you've seen through the first 3 weeks of this quarter?

Question: Margaret Jane Wellborn - JPMorgan Chase & Co, Research Division - Analyst : Got it. And one more. I think you said that for 3Q, you're expecting the gross margin of about 21.7%. And to get to your full year range, that implies a step-up into 4Q. So could you give us any puts and takes there? I mean is that primarily volume leverage or any changes in kind of price cost dynamics that you're foreseeing?