D.R. Horton, Inc.

Greetings, and welcome to the first quarter 2020 earnings conference call for D.R. Horton, America's builder, the largest builder in the United States. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Jessica Hansen, Vice President, Investor Relations for D.R. Horton. Please go ahead.

Thank you, Kevin, and good morning. Welcome to our call to discuss our results for the first quarter of fiscal 2020. Before we get started, today's call may include comments that constitute forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to D.R. Horton on the date of his conference call, and D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton's annual report on Form 10-K, which is filed with the Securities and Exchange Commission. This morning's earnings release can be found on our website at investor.deerwharton.com, and we plan to file our 10-Q in the next day or two. After this call, we will post updated investor and supplementary data presentations to our investor relations site on the presentation section under news and events for your reference. Now, I will turn the call over to David Ald, our president and CEO.

Thank you, Jessica, and good morning. In addition to Jessica, I am pleased to be joined on this call. by Mike Murray, our Executive Vice President and Chief Operating Officer, and Bill Wendt, our Executive Vice President and Chief Financial Officer. The D.R. Horton team started the year off strong. Our consolidated pre-tax income for the quarter increased 39% to $523 million, on a 14% increase in revenue to $4 billion. Our pre-tax profit margin improved 230 basis points to 13%, and our net sales orders increased 19%. Our home building return on inventory for the trailing 12 months into December 31st was 18.7%, and our consolidated return on equity for the same period was 18.2%. These results reflect the strength of our operational teams, our ability to leverage dealholding scale across our broad geographic footprint, and our product positioning to offer homes at affordable price points across multiple brands. we continue to see good demand and a limited supply of homes at affordable prices across our markets, while economic fundamentals and financing availability remain solid. Our strategic focus is to continue consolidating market share while growing our revenues and profits, generating strong annual cash flows and returns, and maintaining a flexible financial position. With a conservative balance sheet that includes an ample supply of homes, lots, and land to support growth, We are well positioned for the remainder of 2020 and future years. Mike?