KB Home forecasts $500 million cash in 2011, no plans for new loans

By Aleesia Forni

Columbus, Ohio, Sept. 23 - KB Home stands by its total cash guidance for fiscal 2011 of over $500 million, and chief executive officer Jeff Kaminski said he was "very confident" the company will reach that goal.

According to Kaminski, the company's capital structure has "plenty of flexibility," leading officials to believe they will not seek any new lines of credit in the near future.

"[This cash guidance] is more than ample to run a business at the revenue size that we're at and provide growth opportunities, so we don't have to do anything but run the business," chief executive officer Jeffrey Mezger said during the company's conference call to announce its third quarter 2011 financial results.

"We're focused on running a business and supporting ourselves today and providing opportunities for tomorrow, and we think we have that or are comfortable at the $500 million."

The company closed out its third quarter with $590.6 million of cash and cash equivalents and a debt balance of $1.59 billion as of Aug. 31, 2011.

Debt for the third quarter of 2011 was reduced by $188.8 million compared to Nov. 30, 2010, due largely to the company's $100 million repayment of 6 3/8% senior notes in August.

The company reported a net loss of $9.6 million during the quarter.

KB Home is a Los Angeles-based homebuilding and financial services company.

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