D.R. Horton, Inc.

Good morning and welcome to the second 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. An interactive 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 would now like to turn the conference over to your host, Jessica Hansen, Vice President of Investor Relations for D.R. Horton. Thank you. You may begin.

Thank you, Melissa, and good morning. Welcome to our call to discuss our results for the second 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. Horton on the date of this conference call, and D.L. 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.L. Horton's annual report on Form 10-K and its most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. This morning's earnings release can be found on our website at investor.dlhorton.com and we plan to file our 10-Q early next week. 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 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. The Dale Horton team delivered a strong second quarter, highlighted by a 95% increase in earnings to $2.53 per diluted share. Our consolidated pre-tax income increased 90% on a 43% increase in revenues to $6.4 billion, and our pre-tax profit margin improved 450 basis points to 18.3%. Our net sales orders for the quarter increased 35% to 27,059 homes, and our homes and inventory increased 38% to 46,100. Our home building return on inventory for the trailing 12 months ended March 31st was 31.2%, and our consolidated return on equity for the same period was 27.1%. These results reflect our experienced teams and expanding production capabilities, our ability to leverage D.R. 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 robust, and we are focused on maximizing returns and capital efficiency in each of our communities while increasing D.R. Horton's market share. We believe our strong balance sheet, liquidity, and low leverage positions 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 pricing, sales base, and inventory levels to optimize the return on our inventory investments. Mike?