KB Home FY 4Q15 Earnings Call Notes

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http://seekingalpha.com/insight/earnings-center/article/3797216-kb-homes-kbh-ceo-jeffrey-mezger-on-q4-2015-results-earnings-call-transcript?part=single

Jeffrey Mezger

Traffic to communities highest since 2007

“Traffic to our communities was the highest we have seen for any fourth quarter since 2007 indicating strong interest in our product offerings and locations.”

Continue to have favorable outlook for housing market

“As we enter 2016, we believe the housing market is on firm ground and expect housing to continue to be a major catalyst of the economic recovery. We also believe that market conditions will continue to gradually improve supported by employment growth, increased household formation and low inflation. We anticipate demand will be boosted by the large millennial population that is expected to be purchasing more homes in 2016 as well as the so-called boomerang buyers who lost their homes in the downtown and are now returning.”

There’s a strong desire among the consumer to be homeowners

“I shared in my prepared remarks that we actually saw the highest traffic levels per store we’ve seen in many years and I think it’s a combination of the products and locations we have and also that there’s a strong desire among the consumer to be homeowners. That’s very encouraging and that’s normally a good indicator of where things are headed.”

The market in California remains good

“I shared in my prepared remarks that we actually saw the highest traffic levels per store we’ve seen in many years and I think it’s a combination of the products and locations we have and also that there’s a strong desire among the consumer to be homeowners. That’s very encouraging and that’s normally a good indicator of where things are headed.”