D.R. Horton, Inc.

Good morning. Welcome to second quarter 2020 earnings call for G.R. Horton, American's builder, the largest builder in the United States. At this time, all participants are in a 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. Please note this conference is being recorded. I will now turn the call over to Jessica Hansen, Vice President, Investor Relations for G.R. Horton.

Thank you, Sherry, and good morning. Welcome to our call to discuss our results for the second quarter of fiscal 2020 in addition to current market conditions. 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.O. 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.O. Horton on the date of this conference call, and D.O. 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.O. Horton's annual report on Form 10-K and subsequent reports on Form 10-Q, all of which are or will be filed with the Securities and Exchange Commission. This morning's earnings release can be found on our website at investor.deerhorton.com, and we plan to file our 10Q 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 Auld, our president and CEO.

Thank you, Jessica, and good morning. Although we are in different locations while practicing social distancing, I am pleased to also be joined on this call by Mike Murray, our Executive Vice President and Chief Operating Officer, and Bill Wheat, our Executive Vice President and Chief Financial Officer. We'd like to first express our gratitude to our country's dedicated field of healthcare workers and all who are on the front lines caring for our communities. Our thoughts remain with those affected by this pandemic. And before we talk about our second quarter results, I will address current market conditions while we, along with the rest of the world, navigate through the impacts of COVID-19 on the economy and our business operations. Housing market and economic fundamentals were solid throughout most of the second quarter, as interest rates on mortgage loans remained low, new home demand was strong, and there was a limited supply of homes at affordable prices across most of our markets. However, During the latter part of March and into April, the impacts of COVID-19 and related widespread reduction in economic activity across the United States began to negatively affect our business operations as well as the demand for new homes across all of our markets. We experienced increases in sales cancellations and decreases in sales orders in late March and to date in April as compared to the same period last year. In almost all municipalities across the U.S. where social distancing and other restrictions have been implemented, residential construction, lot development, financial services have been designated as essential businesses as part of critical infrastructure. We have continued our operations in those markets where allowed and have made appropriate adjustments to comply with social distancing and other standards as the health, safety of our employees, customers, and trade partners is our number one priority. We believe we are well prepared to operate in this uncertain environment with our experienced operating teams, low leverage, and a strong liquidity position. We plan to maintain our flexible operations and financial position by generating strong cash flows from our home building operations, limiting land acquisition and land development spending, and adjusting our product offerings, incentives, home pricing, sales space, and inventory levels to optimize the return on our inventory investments in each of the communities based on local housing market conditions. Our team delivered a strong second quarter during this unprecedented time for our nation and while making significant adjustments to our operational practices in March. Our consolidated pre-tax income for the quarter increased 34% to $621 million on a 9% increase in revenues to $4.5 billion. Our pre-tax profit margin improved 260 basis points to 13.8%, and our net sales orders increased 20%. Our home building return on inventory for the trailing 12 months ended March 31st was 20.2%, and our consolidated return on equity for the same period was 19.1%. Mike?