KB Home Q4 2020 Earnings Call Transcript

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

Question: Joseph Ahlersmeyer - Evercore ISI - Analyst : This is Joe Ahlersmeyer on for Steve. I wanted to start off discussing your community count goals in 2021 and 2022. Thanks for all the great detail there on the growth targets for each of those years: mid- to high singles next year and then double digits the year after. I heard the comment regarding the moderation of order growth in 1Q on the tougher comps. But our question is, if you continue to see strong order growth throughout 2021, say, 25% or better, are you still in a position to hit both of those goals? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 12, 2021 / 10:00PM, KBH.N - Q4 2020 KB Home Earnings Call

Question: Joseph Ahlersmeyer - Evercore ISI - Analyst : So it may be a deceleration from the 40 or so percent. But if it stays strong, like, in the 25-plus range, is that going to continue to sell out faster than you can replace, and are you at risk of (inaudible) still hitting those targets?

Question: Joseph Ahlersmeyer - Evercore ISI - Analyst : Awesome. That's really encouraging. And on a related note, with respect to the land spend, you mentioned the $650 million in the prepared remarks, more than I think you've done in any quarter, at least in recent history here. And I appreciate that positions you well for growth in the next couple of years. But first question, were there any projects maybe that you pulled forward just that made sense to take on now? And then second, could you help us understand a little bit more about the composition of that spend? Are you bringing in different types of land, maybe more move-up assets or taking advantage of the work from home trends by buying in further-out regions?