D.R. Horton, Inc.

Good morning and welcome to the first quarter 2021 earnings conference call for D.R. Horton, America's builder, the largest builder in the United States. At this time, all participants are in a listen only mode. A brief 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. I will now turn the call over to Jessica Hansen, Vice President of Investor Relations for D.R. Horton.

Thank you, Christine, and good morning. Welcome to our call to discuss our results for the first quarter of fiscal 2021. 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.L. Wharton on the date of this conference call, and D.L. Wharton 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.L. Wharton'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.deelwharton.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. I'm 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. The Dale Horton team delivered an outstanding first quarter, which included a 98% increase in consolidated pre-tax income to over $1 billion, a 48% increase in revenues to $5.9 billion, and a 56% increase in net sales orders to $20,418. Our pre-tax profit margin for the quarter improved 440 basis points to 17.4%, while our earnings increased 84% to $2.14 for diluted share. Our home building return on inventory for the trailing 12 months ended December 31st was 28%, and our consolidated return on equity for the same period was 24.4%. These results reflect the strength of our home building and financial services teams, our ability to leverage D.O. Horton's scale across our broad geographic footprint, and our product positioning to offer homes at affordable price points across multiple brands. Housing market conditions remain very strong, and our teams are focused on maximizing returns and improving capital efficiency in each of our communities while increasing our market share. However, We remain cautious regarding the impact COVID-19 pandemic or other external factors may have on the economy and our operations in the future. We believe our strong balance sheet, liquidity, and experienced teams position us very well to operate effectively through changing economic conditions. We plan to maintain our flexible operational and financial position by generating strong cash flows from our home building operations. and managing our product offerings, incentives, home prices, sales pace, and inventory levels to optimize the return on our inventory investments. With 42,100 homes in inventory, an ample supply of lots, and continued strong sales trends in January, we are well positioned for the spring selling season and the remainder of 2021. Mike?