LOS ANGELES ? KB Home's fiscal fourth-quarter net income fell 20 percent on rising expenses, but revenue climbed on more home deliveries and a higher average selling price.
Its shares rose 30 cents, or 3.9 percent, to $8.04 in premarket trading.
The Los Angeles homebuilder reported Wednesday that it earned $13.9 million, or 18 cents per share, for the three months ended Nov. 30. That compares with $17.4 million, or 23 cents per share, a year earlier.
The results beat the 4 cents per share that analysts polled by FactSet expected. KB Home also said that it was its first net profit in 2011.
Quarterly selling, general and administrative expenses climbed 36 percent to $75.6 million.
Revenue rose 6 percent to $479.9 million from $451 million, topping Wall Street's $467.9 million forecast.
Home deliveries increased by 4 percent, and average selling price rose 3 percent ? to $238,400 compared with $232,500 in the prior-year period.
"We anticipate that our companywide average selling price will continue to grow in 2012 as we heighten our concentration in our most desirable markets, particularly in our West Coast region which typically generates higher profits," President and CEO Jeffrey Mezger said in a statement.
Fourth-quarter net orders rose 38 percent to 1,494 from 1,085. Backlog also increased ? to the highest year-end level since 2008 ? with a total of 2,156 homes as of Nov. 30. That compares with a backlog of 1,336 homes a year earlier.
Cancellation rate as a percentage of gross orders was 34 percent versus 37 percent a year ago.
For the full year, KB Home lost $178.8 million, or $2.32 per share, compared with a loss of $69.4 million, or 90 cents per share, in the previous year.
The full-year results included $79.5 million in noncash charges and a $30.8 million loss on a loan guarantee. This was somewhat offset by a $2.4 million tax benefit and a $19.8 million gain tied to winding down the company's unconsolidated mortgage banking joint venture.
Annual revenue slipped 17 percent to $1.32 billion from $1.59 billion as the number of homes delivered fell 21 percent.
Net orders rose to 6,632 from 6,556, which was the first rise in full-year net orders in two years.
KB Home was ranked the fifth-largest homebuilder in the nation last year, by closings.
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