2004 Annual Report
Financial Scorecard
In millions, except per share and unit amounts
Years ended November 30,
2004
1999
1994
5-YR CAGR
10-YR CAGR
Units
31,646
22,422
7,824
Total Revenues
$ 7,053
$ 3,836
$ 1,338
Net Income
EPS
Stock Price
$
481
$ 11.40
$
88
$
$
$
147
3.08
22
$
$
$
47
1.09
13
7%
13%
27%
30%
32%
15%
18%
26%
26%
21%
Our story
begins where
the year
ended…
with numbers
that are
extraordinary.
How we
got here is
even more
extraordinary!
Bruce Karatz
Chairman and Chief Executive Officer
KB Home
Dear Shareholders:
As recently as the 1970s, most of us bought
All of which is to say, modern consumers have
our cars from one of three auto makers, got
gotten a taste of real variety, and they like it.
our enter tainment from three TV networks,
Indeed, they no longer view extensive choice
and depended on one lone provider for our
as a luxur y—they see it as a bir thright.
telephone ser vice. Choices, when we had
them at all, were few in number and limited
So whenever I’m challenged to succinctly explain
in scope.
how KB Home has transformed itself from a
California builder that rang up $1.34 billion in
But today, supermarkets are stacked to the
revenues on deliveries of 7,824 homes in
rafters with dif ferent varieties of soups,
1994 to a $7.05 billion national powerhouse
sodas, snacks and cereals. Drugstores are
that delivered 31,646 homes in 36 fast-
lined with an overabundance of shampoos
growing U.S. markets and France in 2004,
and skin-care products. Home PCs are
I summarize our success in a word: Choice.
gateways to countless online retailers, news
sites and weblogs, and cable and satellite
KB Home offers buyers more choices in how
providers now pipe hundreds of channels into
their homes look, feel and function than any
our living rooms.
other major homebuilder.
5
And that helps explain how our 2004 pretax
income soared to $717.7 million — nearly
10 times the $73.9 million total we posted
a decade ago.
The reason we’re the nation’s homebuilder
of choice has ever ything to do with KBnxt,
the revolutionar y business model our company
adopted in 1996.
KBnxt works because it aligns homebuyers’
inherent desire to exercise greater control over
how their homes are designed with KB Home’s
strategy to offer superior quality, well-priced
homes while avoiding the risks associated with
speculative building.
Options to Buy
Because our homes are built to order only
after qualified buyers secure their mor tgage
financing, those buyers enjoy the freedom to
customize: they choose their community,
homesite and a unique floor plan, then select
from among the 5,000-plus options at our
KB Home Studios.
Newsweek recently likened the unique
KB Home Studio shopping experience to
“a child’s trip to Disney World.”
In the magazine’s September 20, 2004 edition,
Newsweek repor ter Daniel McGinn continued:
“The showroom is filled with granite counters,
oak cabinetr y, sleek appliances and young
couples tricking out their dream home...from
superinsulated windows to built-in surround-
sound speakers.”
This hunger for greater choice is typical among
buyers across generations, geographic regions
and income levels, which is why ever yone, from
first-time and second-move-up buyers to those
in the luxur y and active-adult categories, is
finding something to get excited about in
KB Home’s diverse product mix.
Freestanding single-family homes continue to
constitute the bulk of our sales, though in
recent years, we’ve also developed attached
single-family units, as well as high-density
urban in-fill products.
6
Tremendous Geographic Expansion
Coast-to-Coast Growth from 9 to 36 Major U.S. Markets in Just 10 Years
P H O E N I X , A Z
T U C S O N , A Z
L O S A N G E L E S , C A
O A K L A N D , C A
O R A N G E C O U N T Y , C A
R I V E R S I D E , C A
S A C R A M E N T O , C A
S A N D I E G O , C A
S T O C K T O N , C A
D E N V E R , C O
G R E E L E Y , C O
F O R T M Y E R S , F L
J A C K S O N V I L L E , F L
L A K E L A N D , F L
M E L B O U R N E , F L
O R L A N D O , F L
P O R T S T . L U C I E , F L
S A R A S O T A , F L
T A M P A , F L
A T L A N T A , G A
C H I C A G O , I L
A L B U Q U E R Q U E , N M
L A S V E G A S , N V
C H A R L E S T O N , S C
C O L U M B I A , S C
G R E E N V I L L E , S C
A U S T I N , T X
D A L L A S , T X
F O R T W O R T H , T X
H O U S T O N , T X
R I O G R A N D E V A L L E Y , T X
I N D I A N A P O L I S , I N
S A N A N T O N I O , T X
D A Y T O N A B E A C H , F L
C H A R L O T T E , N C
F R A N C E
R A L E I G H - D U R H A M , N C
Backlog at All-Time High
Value Totals $4.82 Billion, Up 57% from 2003
$5.0
$4.0
$3.0
$2.0
$1.0
‘04
($ in Billions) $.2 $.4 $.7 $1.0 $1.4 $1.8 $1.9 $2.3 $3.1 $4.8
‘03
‘00
‘01
‘98
‘95
‘97
‘96
‘02
‘99
Growth on a Grand Scale
✛ Our $7.05 billion in total revenues
represented a 21% gain over our 2003 total
KB Home has long been the value leader among
of $5.85 billion. For the past 10 years, company
major builders in the markets where we operate,
revenues have risen at a compound annual
and that commitment to of fering af fordably
growth rate of 18%.
priced homes to entr y-level homebuyers remains
a cornerstone of our business strategy. But in
✛ Earnings per share for the year rose 30% to
a move that exemplifies our growing commitment
$11.40, compared with $8.80 one year ago.
to ser ve a broader group of buyers, we recently
unveiled the brand new KB Home luxur y series.
✛ We closed out the year with an order backlog
This diversity of product and pricing, along
with the geographic expansion we’ve
of 20,280 homes, a 38% gain over our 2003
total. This translates to approximately
$4.82 billion in future revenues, a 57%
successfully undertaken since the mid-1990s,
increase over 2003. In both units and
has brought a new level of consistency and
dollar value, this was the highest year-end
predictability to our financial results, as well
backlog in the Company’s histor y.
as a great deal of momentum:
8
Given this per formance, it shouldn’t surprise
you to learn that KB Home is making quicker-
than-expected progress toward the ambitious
financial targets we’ve set for 2007, which
include 50,000 unit deliveries, $10 billion in
revenues, earnings per share of $20, and a
16% return on invested capital. I have ever y
confidence that we’re on track to meet or
exceed those goals.
Satisfaction—by the Numbers
That KBnxt has been a boon for buyers is
borne out by our bottom line and our balance
sheet. But numbers aren’t the only gauge of
our success.
Perhaps the greatest point of pride for our
entire organization this past year was our
per formance on vitally impor tant customer
satisfaction sur veys, par ticularly those
conducted by J.D. Power and Associates,
which placed KB Home first among all
homebuilders in the Austin market and
among the top three builders in Las Vegas,
Houston and Raleigh.
Overall, the sur vey findings, which were based
on responses from more than 64,000 new-home
buyers, saw us posting the most improved
per formance of any builder in the nation.
Indeed, our ranking put us just one point away
from second place among all U.S. homebuilders.
9
✛ Unit deliveries for 2004 climbed to 31,646,
a 16% increase over 2003’s 27,331 total.
✛ At year end, KB Home boasted 483 active
selling communities in the U.S. and France,
compared with 392 in 2003. Community
count, incidentally, has far more bearing on
order growth than any other single factor,
including interest rates. A statistical review
of our order growth since 1990 revealed
that the correlation between order growth
and community count was 1.0, while the
correlation between order growth and
changes in interest rates was just 0.76.
We attribute these gains in par t to some of
our newer initiatives, such as our contractor
cer tification program, our exacting “Power of
10” quality-assurance audits, and our “Say
Yes!” program, which aims to quickly and
thoroughly resolve any outstanding issues
buyers may have with their homes. But a fair
amount of credit also goes to deeply
entrenched systems and structures that have
defined the way we do business.
High Standards Set and Met
Unlike many of our major competitors, KB Home
operates as a single national brand in ever y
one of our U.S. markets.
So while we naturally tailor our product to
suit local preferences, and while we respect
civic, geographic and cultural differences
wherever we build, our essential systems
and procedures remain the same from coast
to coast, and from division to division.
We go to great lengths to perpetuate that
consistency through ongoing sharing of best
practices and by investing significant resources
each year in training and development
companywide. Our online KB University (KBU),
for example, boasts sophisticated web-based
interactive learning modules that help make
ever y employee a repositor y of institutional
knowledge and know-how.
In 2004, KB Home employees earned more
than 93,000 KBU cer tifications that testify
to their skill at delivering products and
ser vice second to none in our industr y. We
subscribe to the maxim that, “When less is
left to learn, little is left to chance.”
Facts First
For KB Home, basing critical decisions on
extensive proprietar y research is the first
step toward creating legions of satisfied
homebuyers. When I came to the
homebuilding business more than 30 years
ago, the industr y was dominated by a breed
10
Building Around
the Clock
A company that’s in constant forward
motion doesn’t spend much time or
energy looking over its shoulder or
poring through the archives. KB Home
is a homebuilder intent on making
history, not reading about it.
Still, every so often, we stumble
upon a reminder of our formative
years in this business, and it only
serves to remind us of just how far
we’ve come as an organization.
In November, a colleague who was
cleaning out a file drawer happened
upon a document he had saved
for posterity when he joined our
company years before. It was a
typewritten backgrounder on
KB Home (then Kaufman and Broad,
Inc.), drafted by the Company’s
former director of corporate
communications and dated
February 25, 1970. It apparently
had been designed as an
orientation piece for new
employees. And it provides some
fairly striking contrasts with the
KB Home of today.
“Kaufman and Broad was founded in
1957 with invested capital of
approximately $25,000. Without
additional capital investment, the
company increased its net worth to
approximately $1.7 million at the time
of its initial public offering in 1961,”
the document boasts. “Currently, the
company has 42 major housing
developments underway…”
Clearly, at the time, these were
impressive figures, but by our
standards today, they don’t just
pale—they blanch.
Delivering 31,646 homes in 483
communities in 2004 meant that
KB Home built a new home every 16
minutes of every day, 24 hours a day,
365 days a year. Next year, we’ll
build a home every 14 minutes.
— B.K.
of businessperson often described as
We ask them about pricing, about financing
“instinct-driven.” Builders in those days relied
and about the drivers that influence their
primarily on their hunches when it came to
purchase decisions. In the process, we learn
deciding what, where and when to build, and
ever ything we need to know to make ourselves
this finger-in-the-wind approach proved to be
the builder of choice in their community.
the undoing of many builders when their local
economies took a turn for the worse.
When coupled with detailed background
about an area’s demographics, traf fic flow,
But under KBnxt, facts come first. Our
employment base and other variables, this
encyclopedic, market-by-market homebuyer
sur vey data can be used by our in-house
sur veys ensure we collect solid, bankable
land acquisition, land development and
data on ever ything that matters to the total
architecture groups to make shrewd
population of buyers in any given region, from
judgments about where to locate new-home
the features they consider most essential in
communities and which types of products
their residences and communities to their
and options to of fer once we’re there.
attitudes toward par ticular local neighborhoods.
11
The tenure of our Regional General Managers and Chief Operating Officer averages 14 years, providing skilled leadership
and tremendous expertise. Regional General Managers, left to right: Glen Barnard: Central, Steven M. Davis: Southeast,
John “Buddy” E. Goodwin: Florida, Leah S. W. Bryant: Southwest, Robert Freed: Northern California, Jay L. Moss: Southern
California, Larry E. Oglesby: Texas. Inset photo: Jeffrey T. Mezger, Executive Vice President and Chief Operating Officer.
In other words, research helps guarantee that
keeping fixed costs low, KB Home exercises
we’re where people want to be, with homes
the option to rev up or scale back its ef for ts
they want to buy, at prices they want to pay.
as market conditions dictate. That remarkable
Over the course of the past several years, this
flexibility is why we remain, as our 2007
process has smoothed the way for KB Home’s
projections indicate, decidedly optimistic
entr y into, and expansion within, new markets
about KB Home’s ability to thrive even if
from coast to coast.
homebuilders were eventually to find
themselves in a less favorable interest
rate environment. The reason is no more
Big Picture Considerations
complicated than the law of supply and
demand. Today, there are 100 million
The beauty of KBnxt is that it allows our
Americans aged 25 or younger, and as the
company to of fer buyers more choice while
Har vard Center for Joint Housing Studies
simultaneously reducing the financial risk
pointed out in its annual repor t on the state
associated with building communities of
of the nation’s housing this past year:
homes on spec. By building to order and
14
“Immigration has been, and will continue to be,
an impor tant driver,” the Har vard repor t
continued, noting that minorities’ share of
households jumped from 17% in 1980 to 26%
in 2000, and that the figure will likely reach
about 34% by 2020.
Another group expected to continue
making a significant impact on the housing
marketplace are single-women heads of
households, whose numbers increased by 10
million between 1980 and 2000, according to
the Har vard repor t.
Healthy demand cer tainly speaks to the long-
term oppor tunities ahead for homebuilders.
What’s more, it’s impor tant to remember that
interest rates aren’t typically the ultimate
determinant of whether or when people
decide to buy a home. Life circumstances—a
new job, the arrival of a new child, the desire
to relocate once children are grown—often
handily trump interest rates. And while the
Federal Reser ve is a power ful machine, it
hasn’t yet demonstrated an ability to exer t
influence over couples’ child-rearing plans or
individual employers’ hiring decisions.
Also, the Harvard study notes that if long-
term interest rates rise “many homebuyers
would choose a hybrid adjustable rate
mortgage with a 5- or 7-year fixed term
instead of a 30-year fixed rate mortgage.
This could blunt some of the impact of
higher rates and keep buyers in the market.”
“The Census Bureau’s newly revised
population estimates imply that household
growth from 2005–15 will be as much as
1.1–2.0 million more than the Joint Center
for Housing Studies previously projected.
Add to that the growing demand for second
homes and replacements of units lost from
the stock, and the total number of homes
built in 2005–15 could reach 18.5–19.5
million units. This compares with 16.4
million homes added in the 1990s.”
As it happens, our price leadership and
extensive multilingual marketing make KB Home
par ticularly well positioned to ser ve the
groups that are fueling this ongoing demand.
15
Growing Wiser All the Time
Favorable population dynamics being what
they are, KB Home is taking smar t steps to
ser ve more buyers by continuing to increase
its presence in fast-growing markets.
As we did in 2004 with the purchase of South
Carolina’s Palmetto Traditional Homes and
Indiana’s Dura Builders, Inc., KB Home will
continue to carefully assess acquisition
oppor tunities. At the same time, de novo and
organic growth ef for ts have become the focus
of our expansion ef for ts moving for ward.
For a homebuilder, having operations that span
a wide swath of buyer segments in multiple
high-growth regions—and, in our case, in France
as well—mitigates the risks associated with
having too much riding on any one region’s
In our view, it’s the only way to run a
homebuilding business. And our results attest
economic for tunes. In 2004, 17% of KB Home’s
unit deliveries were in our West Coast region,
to this.
compared with 80% in 1994. The Southwest,
Central and Southeast regions made up 23, 29
and 16%, respectively, this past year. France
provided the balance, at 15%. But even as
we’ve fanned out across the countr y, we’ve
remained highly selective in our choice of
markets. We believe investors appreciate that
our growth criteria are as rigorous and disciplined
as ever y other aspect of our operations.
KB Home’s Board of Directors and executive
team take great pride in the exceptional
value we’ve been able to return to
shareholders over the course of the past
decade, and in the fact that our debt-to-
total-capitalization ratio now makes us
consistent with an investment grade rating.
16
and Co-Chief Operating Of ficer of Viacom, Inc.
and Melissa Lora, Chief Financial Of ficer of
Taco Bell Corp. The breadth and depth of their
extraordinar y backgrounds, combined with
those of our eight other non-employee,
independent directors, provide me with a level
of sage, experienced counsel that ver y few
CEOs are ever for tunate enough to benefit
from. With their input, I truly believe that
KB Home has the ability to eclipse even the
most substantial of our past achievements
in the ver y near future.
A Final Word…
I’m often asked what it is that keeps me
excited about our company and the
homebuilding industr y as a whole after more
than three decades on the job. It’s a fair
question, but it’s almost always posed by
people outside of our organization.
Because anyone working at KB Home, or
closely enough with us to get a sense of who
we are, understands exactly why there’s never
been a better time to be here.
The fact is, ver y few people are ever for tunate
enough to work at a truly great company, one
that can reinvent itself to respond to new
realities while remaining true to its roots, one
that never stagnates, self-congratulates or
rests on its laurels, one that’s roundly
recognized as a leader and an innovator.
In December, KB Home announced a 50%
increase, from $1.00 to $1.50 per share, in
the annual cash dividend on our common
stock. We also announced our Board of
Directors’ intent to declare a 2-for-1 common
stock split in spring 2005, subject to
shareholder approval.
The nature of my position means that I wind
up getting much of the credit for these
results, but that credit frankly belongs to all
of our employees and to a Board that
comprises some of the most distinguished
entrepreneurs, leaders and thinkers anywhere
in the world. This past year, two new directors
joined our Board: Leslie Moonves, Co-President
17
And fewer still ever have the privilege of working
In coming years, as in years past, we will
arm-in-arm with some of the most talented
once again do all we can to help ensure
professionals in the nation to produce a product
KB Home is one of the best choices you'll
that matters as much to people, to communities
ever make.
and to our society as a whole as a family
home does.
I’m for tunate to do both. And it never grows
old for me. I still thrive on the creativity and
the commitment of our people. I still find
myself energized by coming to the office and
teaming with great minds to determine how we
can do what we already do well, better.
All of which is to say that signing on with the
homebuilder that’s now synonymous with
choice was, without a doubt, the best choice
I’ve ever made.
Bruce Karatz
Chairman and Chief Executive Officer
February 2005
18
The pages
that follow outline
the hallmarks
and qualities
of our business.
We invite you
to take a closer look
and learn exactly
why we’ve been
America’s
builder of choice
since 1957.
M O N E Y , O C T O B E R 2 0 0 4
“Back in 1990, for example, 65% of home
builder KB Home’s inventory was unsold; today
KB Home...has virtually no unsold inventory.”
KBnxt Business Model for Success
Strategy
✛ The KBnxt model maximizes KB Home’s
opportunity to acquire, entitle and develop
land at price points that will support entry
level, first-time move-up, second-time move-
up, luxury and active adult homebuyers
✛ KBnxt established fact-based, survey-driven,
market and land acquisition strategies
✛ The strategies are specific by submarket,
product and price point
✛ Aggressive growth and land acquisition
strategies are expected to result in a
15% – 20% increase in the number of
communities between 2004–2005
✛ The Company continues to expand organi-
cally and strategically into robust markets
✛ In order to accomplish these strategies,
KB Home recruits and retains the most
talented employees possible in every field
✛ The focus is buying the best properties at
✛ KB Home takes pride in its “Say Yes”
market prices
commitment to customers
KBnxt Business Model Provides Key Benefits to Buyers Through Choice and Value
✛ Variety of beautiful
neighborhood locations
✛ Large selection of floor plans
and structural options to
create a home built to order
✛ KB Home Studio design
options that provide a truly
custom experience
✛ A commitment to quality
and customer service that is
second to none
21
✛ One-stop shopping with
numerous financing
programs through the
KB Home Mortgage Company
Leaders in Strategic Land Acquisition
Experience
✛ Decisions on land acquisitions are made at
✛ From entitlements to finished lots, and
the division level and then ratified by
KB Home’s Land Committee
✛ The Land Committee is comprised of the
senior-most executives within KB Home
✛ The Land Committee consists of true land
experts, all of whom have extensive
experience in successful land transactions
and who appreciate the importance of speed
in the decision-making process
✛ Meetings of the Land Committee take place
no less frequently than on a weekly basis
and decisions are made immediately
✛ The speed and commitment displayed by the
Land Committee, in regard to transactions
and acquisitions, distinguish KB Home
from the rest of the industry
in-fill to master-plan communities,
KB Home analyzes each opportunity
individually to ensure that it is consistent
with the acquisition strategy
✛ KB Home has the ability and experience
in acquiring large land holdings to offer
multiple products within the same
community or throughout its markets,
enhancing the land acquisition strategy
✛ The Land Committee commits to land that
may be used for master-plan communities,
single-family dwellings, townhomes and
condominiums, and mixed-use, high-density,
in-fill developments
22
T H E N E W Y O R K T I M E S , J U L Y 1 8 , 2 0 0 4
“KB Home of Los Angeles...recently introduced
four-stall garages in Southern California,
something the company has never done
before, according to Jeffrey Mezger, the chief
operating officer. ‘The garage is now part of
the lifestyle of the home people live in...
It’s a flex space that they now incorporate
into the way they live.’”
Architecture, Land Planning and Design
Expertise
✛ Unique to the industry, KB Home has its
own in-house architecture design teams
✛ Architecture centers are located in
Costa Mesa, California and Atlanta, Georgia
✛ KB Home design experts create home
designs, elevations, neighborhoods,
infrastructure and amenities based on
feedback from homeowners’ preferences
✛ KB Home professionals also have expertise
in land planning, landscape architecture,
monumentation design and other
community features
✛ KB Home architecture utilizes theme
elements throughout a community that
involve landscaping, monumentation, club-
houses, outdoor lighting, street designs
and walking paths
✛ Sophisticated homebuyer surveys are
✛ The goal is to create a sense of
conducted by KB Home and drive design
and development through in-house
architecture and land planning
community and belonging in every
beautiful new neighborhood
25
Homes for All Lifestyles
Choice
✛ With an amazing array of home designs,
KB Home delivered 31,646 new homes
in 2004
✛ KB Home offers prices ranging from
$80,000 to over $1 million
✛ The architecture and design of all KB
homes is determined by preferences
drawn from homebuyer surveys and is
complimentary to the particular styles
of the geographic locations
✛ KB Home builds master-plan communities,
single-family dwellings, townhomes and
condominiums, luxury homes and mixed-
use, in-fill developments
✛ KB Home builds suburban communities,
as well as high-density, urban communities
for those who prefer living closer to the city
26
Entry Level
< 1,500 sq. ft.
16%
Entry Level / First Move-Up
1,500 – 2,000 sq. ft.
31%
26%
Second Move-Up and Luxury
> 2,500 sq. ft.
27%
First Move-Up
2,000 – 2,500 sq. ft.
Coast to
✛
West : CA
✛
Desert : AZ
NM
NV
o Coast!
✛
Central : CO
IL
IN
TX
WI
✛
Southeast : FL
GA
NC
SC
B U S I N E S S W E E K , S E P T E M B E R 2 0 , 2 0 0 4
“And KB’s Karatz says that urban housing will
constitute 6% of the 32,000 homes his
company builds this year, up from virtually
nothing years ago.”
In the City and in the Suburbs
Neighborhoods
✛ KB Home provides urban, high-density
homes for city dwellers who value the
advantages of living close to employment
centers, retail and transportation hubs
✛ KB Home provides suburban neighborhoods
offering large floor plans, big yards and
community amenities
Active Communities
Community Count Up 23% in 2004
97
80
57
52
67
78
263
264
262
252
312
386
From in-fill to single-family
homes, the number of active
communities continues to
grow as KB Home product
choices increase.
500
450
400
350
300
250
200
France
United States
‘99
‘99
315
315
‘00
‘00
321
321
‘01
‘01
329
329
‘02
‘02
330
330
‘03
‘03
392
392
‘04
‘04
483
483
42
U S A T O D A Y , A U G U S T 5 , 2 0 0 4
“I wanted it as an investment, to belong to a
“I wanted it as an investment, to belong to a
community with established roots. All those
community with established roots. All those
things were really important...”
things were really important...”
Homes to Fit All Buyers
Appeal
KB Home appeals to all homebuyers, including:
KB Home appeals to all homebuyers, including:
✛ Active adults seeking a low maintenance
✛ Active adults seeking a low maintenance
✛ Singles graduating from the life of a renter
✛ Singles graduating from the life of a renter
lifestyle
lifestyle
✛ Newlyweds dreaming of a new home
✛ Newlyweds dreaming of a new home
✛ Growing families needing more space
✛ Growing families needing more space
✛ Homeowners looking to move-up with their
✛ Homeowners looking to move-up with their
second home purchase
second home purchase
✛ Luxury shoppers wanting upscale home
✛ Luxury shoppers wanting upscale home
designs and amenities that fit their lifestyle
designs and amenities that fit their lifestyle
✛ Record number of referral and repeat buyers
✛ Record number of referral and repeat buyers
driven by KB Home’s universal appeal and
driven by KB Home’s universal appeal and
customer satisfaction
customer satisfaction
45
N E W S W E E K , S E P T E M B E R 2 0 , 2 0 0 4
“For anyone who drools over home makeover
shows, visiting the KB Home Studio...is
like a child’s trip to Disney World.”
Dream it. Design it.
Personalization
✛ KB Home Studio is what makes buying
a KB home a truly personal experience
✛ Expansive showrooms offer thousands of
design options from appliances to counter-
tops, cabinets to flooring, lighting to
fixtures and more
✛ Kitchen, living room and bathroom vignettes
are built into KB Home Studios to provide
design ideas and examples
✛ Experienced design consultants assist
homeowners in making the right decisions
for their budgets and lifestyles
✛ KB Home Studio features top name brands
✛ Cost of design options may be
that buyers know and trust including
Whirlpool, Kitchen-Aid, Delta Faucets,
Sherwin-Williams, Carrier, Shaw Floors
and others
conveniently rolled into mortgage for
greater buying power
46
B U S I N E S S W E E K , S E P T E M B E R 2 7 , 2 0 0 4
“KB is among the most improved in terms of
“KB is among the most improved in terms of
customer satisfaction.”
customer satisfaction.”
“Say Yes” to Customer Satisfaction
Commitment
✛ KB Home is committed to customer service
with a business model that focuses on
the homebuyer
✛ During construction, KB Home uses
dependable materials and implements a
building process that features a number
of checkpoints and inspections to achieve
high construction standards
✛ KB Home provides a 10-Year Limited
Warranty which gives homeowners peace
of mind
✛ KB Home’s “Say Yes” approach to customer
service ensures that all homeowner needs
are attended to before and long after the
home purchase
✛ J.D. Power and Associates ranked KB Home
in the top three nationally for “Customer
Satisfaction with New Home Builders in
2004” and awarded a top three ranking in
four local markets, including a number
one position in Austin, Texas
✛ Homeowners are able to submit a service
request online by visiting kbhome.com
51
B I G B U I L D E R , J U N E 2 0 0 4
“...KB Home is implementing a first of its kind
“...KB Home is implementing a first of its kind
quality assurance initiative with the NAHB
quality assurance initiative with the NAHB
Research Center. The National Housing Quality
Research Center. The National Housing Quality
(NHQ) certified trade contractor program is a
(NHQ) certified trade contractor program is a
powerful tool in assuring and documenting
powerful tool in assuring and documenting
best construction practices.”
best construction practices.”
Delivering Quality Craftsmanship
Quality
✛ KB Home is an industry leader in
✛ Third-party inspectors provide independent
quality construction
✛ KB Home assigns a Community Team to
each home under construction with Sales,
Construction and Customer Service
representatives working together to provide
pertinent information to homeowners on
a weekly basis, including home walk-
throughs during each construction phase
✛ A 10-point quality checklist is adhered to
during every build and signed off on by key
members of the Community Team
review and approval throughout the
construction process
✛ KB Home has achieved recognition as the
first large builder to nationally implement
the first of its kind National Housing Quality
(NHQ) certified trade contractor program,
in which ultimately every trade working on
our homes will first go through rigorous
training and education
52
Leading Builder in France
Global
✛ Kaufman & Broad S.A. introduced
the American model of single-family
communities, as well as the concepts of a
master bedroom suite, walk-in closet, built-in
kitchen cabinetry and two-car garage
✛ The KB Home Studio choice offerings are
mirrored in France with showrooms in
Paris, Lyon and Marseille
✛ Homebuyers can begin their shopping
experience at ketb.com, a dedicated
French website
✛ For more than 35 years, KB Home’s
publicly traded French subsidiary,
Kaufman & Broad S.A., has been designing,
building and selling single-family homes,
apartments and commercial real estate
throughout France
✛ Kaufman & Broad S.A. is a leading
homebuilder stock on the Paris Bourse with
the ticker symbol KOF
✛ From stunning high-rises to beautifully
appointed homes, Kaufman & Broad S.A.
is recognized for its innovative architecture
and attention to detail
✛ The Company builds quality homes in
numerous locations throughout the regions
of Paris, Lyon, Marseille, Bordeaux,
Grenoble, Lille, Montpellier, Nantes, Nice,
Rouen, Strasbourg and Toulouse
55
A Leader on the New York Stock Exchange
35 Years
✛ KB Home is a Fortune 500 company listed on
the New York Stock Exchange (NYSE: KBH)
✛ KB Home is widely recognized as one of the
leading publicly traded homebuilders
✛ KB Home recently celebrated 35 years of
being listed by ringing The Closing BellSM
on Election Day, November 2, 2004, also
symbolic of the Company’s voter registration
initiatives and leadership throughout the
campaign season
✛ In 1969, the Company became the first
homebuilder to trade on the New York
Stock Exchange
56
Marketing: One Company, One Brand
Success
✛ KB Home has the highest level of total
brand awareness of any homebuilder in
its markets
✛ KB Home’s brand identity stands for
superior quality and maximum choice
✛ KB Home’s marketing expertise begins
at the land planning stage with the design
and theming of appealing neighborhoods
where people want to live
✛ The brand is supported through efficient
advertising, impactful signage, sales
collateral and high-profile national marketing
and promotional partnerships that drive
strong traffic to communities nationwide
✛ kbhome.com and kbcasa.com are fully
interactive, consumer-friendly websites
that provide detailed product information,
streaming video, interactive floor plans,
online customer care services and more
✛ By partnering with highly recognized
consumer brands, KB Home created “out of
the box” national promotions that generate
a huge buzz and bring people to its front
door, including:
– Building a brand new home for a deserving
family in front of 20 million viewers on ABC’s
hit show “Extreme Makeover: Home Edition”
– Doing the impossible by constructing a single-
family home in the heart of New York City for the
“Live with Regis and Kelly/ KB Home Giveaway”
– Creating a life-size replica of “The Simpsons”
cartoon house in Las Vegas with FOX and Pepsi
– Partnering with Krispy Kreme, Clifford the
Big Red Dog, In-N-Out Burger, Pokémon and
others for cross promotional marketing
✛ Customers are provided with 888-KB-HOMES
and 888-KB-CASAS, an industry-leading,
toll-free customer information center, staffed
with licensed real estate professionals
59
P E O P L E , D E C E M B E R 2 0 , 2 0 0 4
“For the Broadbents, KB Home CEO Bruce Karatz
“For the Broadbents, KB Home CEO Bruce Karatz
picked up construction and labor costs as a
picked up construction and labor costs as a
genuine gesture of altruism.”
genuine gesture of altruism.”
Extreme Makeover: Home Edition
Partnership
✛ In keeping with the KB Home tradition of
building not just homes but neighborhoods,
the Company also provided new landscaping
for the entire street
✛ Music superstar and activist Elton John
made a special guest appearance to donate
an autographed baby grand piano from his
personal collection and congratulate the
family on promoting AIDS awareness
✛ KB Home Chairman and CEO Bruce Karatz
surprised the family by tearing up their
mortgage and covering a number of
maintenance costs to make sure they
would live worry-free
✛ KB Home partnered with “Extreme Makeover:
Home Edition” to become the largest builder
to date to participate in the show
✛ While KB Home enjoyed tremendous national
exposure, the goodwill and team-building
that was generated by this unique project
was far more rewarding and is indicative of
why KB Home takes part in such initiatives
✛ The show aired on December 12, 2004, on
ABC and was seen by over 20 million viewers
✛ A new KB home was built for a single
mother, Pat Broadbent, who is battling
cancer and has three adopted daughters
at home all living with AIDS
✛ KB Home replaced a 40-year old, 1,300-
square-foot cinder block house with a
beautiful 3,200-square-foot, two-story home
that features hand-laid stone accents, a
swimming pool and sparkling waterfall
60
T H E N E W Y O R K T I M E S , S E P T E M B E R 7 , 2 0 0 4
“The Natural Resources Defense Council
“The Natural Resources Defense Council
recognizes KB Home for its leadership in
recognizes KB Home for its leadership in
protecting America’s roadless national forests.”
protecting America’s roadless national forests.”
Environmentally Sound
Preservation
✛ The Company leads the homebuilding
industry in innovative approaches to
materials, conservation, reuse and energy
efficiency
✛ KB Home was the first major builder to
construct an entire community exclusively
using certified wood from forests following
strict environmental practices
✛ KB Home communities are planned
✛ KB Home was recognized by leading
environmental group the Natural Resources
Defense Council (NRDC) for environmental
leadership in forest preservation with a full-
page advertisement in The New York Times
carefully to preserve existing vegetation
and trees wherever possible, including
consulting with local arborists
✛ In-fill communities are planned to preserve
the character of the existing neighborhood,
while revitalizing older urban areas
✛ KB Home works closely with environmental
and community groups on local projects to
improve the community, including tree
planting events
63
U . S . N E W S & W O R L D R E P O R T , S E P T E M B E R 2 7 , 2 0 0 4
“KB Home...one of the nation’s largest builders,
offers voter registration forms in model homes
and offices.”
Active Members of the Community
Involvement
✛ KB Home is committed to responsible
corporate citizenship and helping to
improve the quality of life in communities
where we build and work
✛ Throughout the year, KB Home provides
physical and financial resources to help
build better communities across the country
✛ As a builder, KB Home assists many local
charities by donating time, resources and
money to rebuild, renovate and revitalize
area homes and community buildings
✛ KB Home places great importance and
respect on its relationships with government
officials, local and national organizations,
and business partners to make a true and
lasting impact on communities
✛ Just this year alone, KB Home and its
employees participated in over 100 local
outreach programs from food and clothing
drives to pet adoption days, to community
repair days and more
✛ A few examples of KB Home’s many
outreach initiatives include:
– Non-partisan effort to register voters at every
KB Home community during national elections
– City-wide efforts to wipe out graffiti
– Renovation of school playgrounds
– Donation of thousands of sandbags to protect
communities during Southern California
brushfires and mudslides
– Construction of clubhouses at non-profit shelters
for abused women and children
– Worked with trade partners to build “David’s Home,”
a customized home donated to a quadriplegic
teenager who suffered a spinal cord injury
during a high school football game
64
The Training & Development
of the Workforce
✛ KB University, commonly
referred to as KBU, is a tool for
all employees to become familiar
with key aspects of the Company’s
business—construction, land
development, customer service,
marketing, and the Company’s
ethics policies, among others
✛ KBU is closely aligned with every
aspect of the Company: its vision,
its values, its identity, and its
ultimate success
✛ The KBU roadmap has become
part of the day-to-day experience
for KB Home employees
✛ This year, 6,000 KB Home
employees earned more than
93,000 certifications. Each
certification represents more than
three hours of training, which
translates to over 50 hours of
education per year—more than
many multinational corporations
✛ KBU is more than a portal
intranet site. It is the embodiment
of a continuously evolving and
learning organization
B I G B U I L D E R , O C T O B E R 2 0 0 4
“The KBU roadmap has become part of the
company's day-to-day experience...For KB Home,
continuous education fuels deeper strategy.”
KB Home’s Greatest Asset: Its Talented Workforce
Leadership
✛ The average tenure of KB Home’s senior
corporate officers is more than 14 years
✛ At the division management level, KB Home
boasts a powerful group of experienced
KB Home veterans
✛ Solid leadership has resulted in more than
1,200 promotions or transfers from within
its ranks over the last year
✛ At any given time, KB Home has at
least 15 percent of its talent in line
for a promotion, which strengthens
and prepares the Company for
continued growth
✛ All 6,000 KB Home employees consistently
push the Company and the industry forward
with fresh thinking, innovative business
solutions, award-winning designs, and a
passion for customer service that has been
widely recognized by industry observers
✛ KB Home looks for unique ways to
constantly involve and embrace its
extended family, from business and trade
partners to real estate professionals
who partner with the KB Home sales
staff, as well as elected officials
representing local communities
in which the Company builds
67
T H E C H A R L O T T E O B S E R V E R , J U N E 2 0 0 4
“KB Home, one of the nation’s premier
homebuilders, added another honor to its trophy
case Monday night, winning the American
Business Award for Best Overall Company
at a ceremony held in New York City.”
2004 Awards
Consistency
KB Home has received a number of highly
coveted business awards and important
corporate rankings from America’s premier
business publications and organizations.
The Company is consistently recognized for
its management excellence, marketing impact,
architectural innovation, consistent shareholder
returns and more.
American Business Awards – Best Overall Company
Fortune – 500 Largest American Companies
Fortune – America’s Most Admired Companies
Forbes – America’s Best Big Companies
Forbes – Global 2000
Barron’s – 500 Best Performing Companies
Builder Magazine – Top 100 Builders
BusinessWeek – S&P 500: The 50 Best Performers
Professional Builder – Giant 400 Builders
Forbes – America’s Most Supercharged Companies
National Sales and Marketing Awards – Best Sales Office
J.D. Power and Associates – Highest ranking in overall customer satisfaction in
Austin and top three ranking in Raleigh/Durham, Houston and Las Vegas
68
B O A R D O F D I R E C T O R S
Ron Burkle 1, 4
Managing Par tner,
The Yucaipa Companies
Los Angeles
Dr. Ray R. Irani 2+, 3+
Chairman and Chief Executive Of ficer,
Occidental Petroleum Corporation
Los Angeles
Michael G. McCaffery 1, 4
President and Chief Executive Of ficer,
Stanford Management Company
Menlo Park
Leslie Moonves 3
Co-President and Co-Chief Operating Of ficer,
Viacom, Inc.
Los Angeles
Kenneth M. Jastrow, II 4
Chairman and Chief Executive Of ficer,
Dr. Barry Munitz 1+, 3
President and Chief Executive Of ficer,
Temple-Inland, Inc.
Austin
James A. Johnson 3, 4+, 5
Vice Chairman
Perseus, LLC
The J. Paul Getty Trust
Los Angeles
Luis G. Nogales 1, 2, 3
Managing Par tner,
Nogales Investors, LLC
Former Chairman and Chief Executive Of ficer,
Los Angeles
Fannie Mae
Washington, D.C.
Bruce Karatz 2
Chairman and Chief Executive Of ficer,
KB Home
Los Angeles
J. Terrence Lanni 3, 4
Chairman and Chief Executive Of ficer,
MGM MIRAGE
Las Vegas
Melissa Lora 1
Chief Financial Of ficer,
Taco Bell Corp.
Ir vine
C O M M I T T E E S O F T H E B O A R D O F D I R E C T O R S
1 Audit and Compliance Committee
2 Executive Committee
3 Management Development and Compensation Committee
4 Nominating and Corporate Governance Committee
5 Presiding Director
+Committee Chair
All directors, except Mr. Karatz, are independent as defined under listing
standards of the New York Stock Exchange and KB Home’s Corporate
Governance Principles, which are available at kbhome.com.
70
Corporate Officers
Operations Management
T E X A S
M A N A G E M E N T
Domenico Cecere
Senior Vice President and
Chief Financial Of ficer
Cory F. Cohen
Senior Vice President, Tax
Ken Gancarczyk
Senior Vice President, Builder Ser vices
Richard B. Hirst
Executive Vice President and
Chief Legal Counsel
William R. Hollinger
Senior Vice President and Controller
Lisa G. Kalmbach
Senior Vice President, Studios
Glen Barnard
Regional General Manager, Central
Leah S. W. Bryant
Regional General Manager, Southwest
Steven M. Davis
Regional General Manager, Southeast
Robert Freed
Regional General Manager, Nor thern
California
John “Buddy” E. Goodwin
Regional General Manager, Florida
Jay L. Moss
Regional General Manager, Southern
California
Bruce Karatz
Chairman and Chief Executive Of ficer
Larry E. Oglesby
Regional General Manager, Texas
Kimberly N. King
Vice President, Associate General Counsel
and Corporate Secretar y
Wendy L. Marlett
Senior Vice President,
Marketing and Communications
Kelly Masuda
Senior Vice President,
Capital Markets and Treasurer
Jeffrey T. Mezger
Executive Vice President and
Chief Operating Of ficer
Division Management
N O R T H E R N C A L I F O R N I A
Jefferey Fautt
President, Nor th Bay Division
Drew Kusnick
President, South Bay Division
S O U T H E R N C A L I F O R N I A
Thomas C. DiPrima
President, Los Angeles-Ventura Division
Albert Z. Praw
Senior Vice President,
Asset Management
Gary A. Ray
Senior Vice President,
Human Resources
V I C E P R E S I D E N T S
Kelly M. Allred
Julia Ambrose
Daniel Bridleman
Brian Bruce
Lawrence B. Gotlieb
Derrick M. Hall
John A. Hughes
Ross A. Kay
Kathleen L. Knoblauch
Stan Koyanagi
Catherine Lee
Joseph M. Manisco
Barton P. Pachino
Jeanne Parker
Christopher Reid
Joseph C. Santoro
Nancy S. Schwappach
David B. Simons
Scott B. Laurie
President, Inland Valley Division
Martin Lighterink
President, San Diego Division
Stephen Ruffner
President, Riverside Division
S O U T H W E S T
John H. Bremond
President, Tucson Division
James Widner
President, Las Vegas Division
Greg Williams
President, Phoenix Division
C E N T R A L
Russell W. Crandall
President, Indiana Division
Barry Grant
President, Colorado Division
Mark Kinsley
President, New Mexico Division
Gary M. White
President, Illinois Division
71
David Christian
President, For t Wor th Division
Kyle Davison
President, Houston Division
Jeffrey L. Dworkin
President, Dallas Division
Joseph D. Reese
President, Austin Division
Craig Westmoreland
President, San Antonio Division
S O U T H E A S T
Patricia Hanchette
President, Raleigh Division
Lawrence E. Lippincott
President, Atlanta Division
Jerry Perillo
President, Charlotte Division
Andy White
President, South Carolina Division
F L O R I D A
Rick Carruthers
President, Orlando Division
Charles Cook
President, For t Myers Division
Vincent P. DePorre
President, Jacksonville Division
Marshall Gray
President, Tampa Division
William “Brad” Jones
President, Treasure Coast Division
F R A N C E
Joel Monribot
President,
Kaufman & Broad S.A., France
Guy Nafilyan
Chairman and
Chief Executive Of ficer,
Kaufman & Broad S.A., France
K B H O M E M O R T G A G E C O M P A N Y
Leah S. W. Bryant
Chief Executive Of ficer,
KB Home Mor tgage Company
Corporate
Headquarters
10990 Wilshire Boulevard
Los Angeles, California 90024
(310) 231-4000
(310) 231-4222 fax
Builder Services
3330 Harbor Boulevard, Suite 300
Costa Mesa, California 92626
(714) 689-4502
(714) 556-3753 fax
houseCALL Center
3037 Independence Drive, Suite I
Livermore, California 94551
(888) KB-HOMES
(925) 245-6506 fax
KB Home Mortgage Company
10990 Wilshire Boulevard, Ninth Floor
Los Angeles, California 90024
(310) 893-7300
(310) 444-9022 fax
Domestic Divisions
Arizona
Phoenix Division
Two Gateway
432 Nor th 44th Street, Suite 400
Phoenix, Arizona 85008
(602) 567-4800
(602) 306-1010 fax
Tucson Division
250 South Craycroft Road, Suite 300
Tucson, Arizona 85711
(520) 918-6400
(520) 299-2725 fax
California
Los Angeles –Ventura Divison
27240 Turnberr y Lane, Suite 100
Valencia, California 91355
(661) 219-6901
(661) 219-6954 fax
Inland Valley Division
801 Corporate Center Drive, Suite 201
Pomona, California 91768
(909) 802-1100
(909) 802-1111 fax
Nor th Bay Division
2420 Del Paso Road, Suite 200
Sacramento, California 95834
(916) 576-5800
(916) 576-3750 fax
Orange County Division
3 Jenner, Suite 100
Ir vine, California 92618
(949) 790-9100
(949) 790-9119 fax
Riverside Division
26201 Ynez Road, Suite 104
Temecula, California 92591
(951) 587-3300
(951) 587-0522 fax
San Diego Division
12235 El Camino Real, Suite 100
San Diego, California 92130
(858) 259-6000
(858) 259-5108 fax
O F F I C E L O C A T I O N S
South Bay Division
6700 Koll Center Parkway, Suite 200
Pleasanton, California 94566
(925) 750-1700
(925) 750-1800 fax
Colorado
Colorado Division
5975 South Quebec Street, Suite 300
Centennial, Colorado 80111
(303) 323-1100
(720) 488-3860 fax
Florida
For t Myers Division
4470 Fowler Street
For t Myers, Florida 33901
(239) 274-5675
(239) 931-3525 fax
Gold Coast Division
735 Fentress Boulevard
Daytona, Florida 32114
(386) 274-7190
(386) 274-1781 fax
Jacksonville Division
10475 For tune Parkway, Suite 100
Jacksonville, Florida 32256
(904) 596-6626
(904) 519-5012 fax
Orlando Division
8403 South Park Circle, Suite 670
Orlando, Florida 32819
(321) 354-2500
(407) 351-1082 fax
Tampa Division
3450 Buschwood Park Drive, Suite 250
Tampa, Florida 33618
(813) 775-7800
(813) 932-6470 fax
Treasure Coast Division
8075 20th Street
Vero Beach, Florida 32966
(772) 226-2200
(772) 299-0244 fax
Georgia
Atlanta Division
110 Londonderr y Cour t, Suite 136
Woodstock, Georgia 30188
(770) 928-0092
(678) 486-4584 fax
Illinois
Chicago Division
100 Lexington Drive, Suite 100
Buf falo Grove, Illinois 60089
(847) 537-9191
(847) 537-8514 fax
Indiana
Indiana Division
5740 Decatur Boulevard
Indianapolis, Indiana 46241
(317) 821-8100
(317) 821-1870 fax
Nevada
Las Vegas Division
750 Pilot Road, Suite F
Las Vegas, Nevada 89119
(702) 614-2500
(702) 614-2614 fax
72
New Mexico
6330 Riverside Plaza Lane NW, Suite 200
Albuquerque, New Mexico 87120
(505) 353-5300
(505) 897-4479 fax
North Carolina
Charlotte Division
6135 Lakeview Road, Suite 250
Charlotte, Nor th Carolina 28269
(704) 969-5700
(704) 596-2309 fax
Raleigh Division
1100 Navaho Drive, Suite GL-3
Raleigh, Nor th Carolina 27609
(919) 871-0092
(919) 871-0442 fax
South Carolina
South Carolina Division
101 Executive Center Drive
Saluda Building, Suite 200
Columbia, South Carolina 29210
(803) 256-1667
(803) 256-1784 fax
Texas
Austin Division
11911 Burnet Road
Austin, Texas 78758
(512) 833-8880
(512) 795-6286 fax
Dallas Division
2711 LBJ Freeway, Suite 600
Dallas, Texas 75234
(972) 232-6020
(972) 232-6161 fax
For t Wor th Division
2711 LBJ Freeway, Suite 600
Dallas, Texas 75234
(972) 232-6020
(972) 232-6161 fax
Houston Division
11320 Richmond Avenue
Houston, Texas 77082
(281) 668-3800
(281) 493-4174 fax
Rio Grande Valley Division
1800 S. Main Street, Suite 850
McAllen, Texas 78503
(956) 661-6500
(956) 664-9348 fax
San Antonio Division
4800 Fredericksburg Road
San Antonio, Texas 78229
(210) 349-1111
(210) 375-1018 fax
International Division
Kaufman & Broad S.A.
127 avenue Charles de Gaulle
92207 Neuilly sur Seine Cedex
France
011-331-4-143-4343
Common Stock Prices
Common Stock Prices
Stockholder Information
Stockholder Information
S T O C K H O L D E R I N F O R M A T I O N
2004
2004
2003
2003
HIGH
HIGH
LOW
LOW
HIGH
HIGH
LOW
LOW
The Company’s common stock is traded on the New York Stock Exchange
The Company’s common stock is traded on the New York Stock Exchange
under the symbol KBH. There were XX,XXX,XXX shares of common stock
under the symbol KBH. There were XX,XXX,XXX shares of common stock
outstanding as of Januar y 31, 2005.
outstanding as of Januar y 31, 2005.
First Quarter
First Quarter
Second Quarter
Second Quarter
Third Quarter
Third Quarter
Fourth Quarter
Fourth Quarter
$ 74.96
$ 74.96
81.89
81.89
72.05
72.05
92.99
92.99
$ 64.10
$ 64.10
60.27
60.27
61.26
61.26
68.61
68.61
$ 49.00
$ 49.00
62.70
62.70
71.55
71.55
71.85
71.85
$ 39.64
$ 39.64
42.41
42.41
54.82
54.82
53.87
53.87
Form 10-K
Form 10-K
Dividend Data
Dividend Data
KB Home paid a quar terly cash dividend of $0.25 per common share in
KB Home paid a quar terly cash dividend of $0.25 per common share in
2004. In December 2004, the Company increased its quar terly cash
2004. In December 2004, the Company increased its quar terly cash
dividend to $.375 per common share.
dividend to $.375 per common share.
Annual Stockholders’ Meeting
Annual Stockholders’ Meeting
The 2005 Annual Stockholders’ meeting will be held at the Hotel Bel-Air,
The 2005 Annual Stockholders’ meeting will be held at the Hotel Bel-Air,
701 Shore Canyon Road, in Los Angeles, California, at 9:00am on
701 Shore Canyon Road, in Los Angeles, California, at 9:00am on
Thursday, April 7, 2005.
Thursday, April 7, 2005.
Stock Exchange Listings
Stock Exchange Listings
KB Home’s common stock is listed on the New York Stock Exchange and is
KB Home’s common stock is listed on the New York Stock Exchange and is
also traded on the Boston, Chicago, National , Pacific and Philadelphia
also traded on the Boston, Chicago, National , Pacific and Philadelphia
Exchanges. The ticker symbol is KBH.
Exchanges. The ticker symbol is KBH.
Kaufman & Broad S.A., the Company’s French subsidiar y, is listed on the
Kaufman & Broad S.A., the Company’s French subsidiar y, is listed on the
Paris Bourse. The ticker symbol is KOF. Kaufman & Broad S.A.’s website
Paris Bourse. The ticker symbol is KOF. Kaufman & Broad S.A.’s website
address is ketb.com.
address is ketb.com.
Transfer Agent
Transfer Agent
Mellon Investor Ser vices, LLC
Mellon Investor Ser vices, LLC
P.O. Box 3315
P.O. Box 3315
South Hackensack, New Jersey 07606
South Hackensack, New Jersey 07606
(888) 667-7640
(888) 667-7640
www.melloninvestor.com
www.melloninvestor.com
Independent Auditors
Independent Auditors
Ernst & Young LLP
Ernst & Young LLP
Los Angeles, California
Los Angeles, California
The Company’s 2005 Repor t on Form 10-K filed with the Securities and
The Company’s 2005 Repor t on Form 10-K filed with the Securities and
Exchange Commission may be obtained without charge by writing to the
Exchange Commission may be obtained without charge by writing to the
Company’s investor relations depar tment at investorrelations@kbhome.com
Company’s investor relations depar tment at investorrelations@kbhome.com
or by visiting the Company’s website at kbhome.com.
or by visiting the Company’s website at kbhome.com.
Headquarters
Headquarters
KB Home
KB Home
10990 Wilshire Boulevard
10990 Wilshire Boulevard
Los Angeles, California 90024
Los Angeles, California 90024
(310) 231-4000
(310) 231-4000
(310) 231-4222 Fax
(310) 231-4222 Fax
Location and community information:
Location and community information:
kbhome.com
kbhome.com
(888) KB-HOMES
(888) KB-HOMES
Investor Contact
Investor Contact
Kelly Masuda
Kelly Masuda
Vice President, Capital Markets and Treasurer
Vice President, Capital Markets and Treasurer
KB Home
KB Home
10990 Wilshire Boulevard
10990 Wilshire Boulevard
Los Angeles, California 90024
Los Angeles, California 90024
(310) 231-4000
(310) 231-4000
kmasuda@kbhome.com
kmasuda@kbhome.com
Bondholder Services Address & Phone Number
Bondholder Services Address & Phone Number
8 5⁄8% $200.0 million Senior Subordinated Notes — Due 12/15/08
8 5⁄8% $200.0 million Senior Subordinated Notes — Due 12/15/08
7 3⁄4% $300.0 million Senior Subordinated Notes — Due 2/1/10
7 3⁄4% $300.0 million Senior Subordinated Notes — Due 2/1/10
9 1⁄2% $250.0 million Senior Subordinated Notes — Due 2/15/11
9 1⁄2% $250.0 million Senior Subordinated Notes — Due 2/15/11
6 3⁄8% $350.0 million Senior Notes — Due 8/15/11
6 3⁄8% $350.0 million Senior Notes — Due 8/15/11
5 3⁄4% $250.0 million Senior Notes — Due 2/1/14
5 3⁄4% $250.0 million Senior Notes — Due 2/1/14
5 7⁄8% $300.0 million Senior Notes — Due 1/15/15
5 7⁄8% $300.0 million Senior Notes — Due 1/15/15
Trustee:
Trustee:
Sun Trust Bank
Sun Trust Bank
Corporate Trust Division
Corporate Trust Division
Mail Code 008
Mail Code 008
25 Park Place, 24th Floor
25 Park Place, 24th Floor
Atlanta, Georgia 30303-2900
Atlanta, Georgia 30303-2900
muriel.shaw@suntrust.com
muriel.shaw@suntrust.com
(404) 588-7067
(404) 588-7067
Design: Weymouth Design, Boston / San Francisco
Design: Weymouth Design, Boston / San Francisco
Printing: Lithographix, Inc.
Printing: Lithographix, Inc.
10990 Wilshire Boulevard, Los Angeles, CA 90024
kbhome.com