D.R. Horton, Inc.

Good morning and welcome to the first quarter 2022 earnings conference call for D.R. Horton, America's builder, the largest builder in the United States. I will now turn the call over to Jessica Hansen, Vice President of Investor Relations for D.R. Horton.

Jessica Hansen Thank you, Holly, and good morning. Welcome to our call to discuss our results for the first quarter of fiscal 2022. Before we get started, today's call includes 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 this conference call, and D.R. Horton does not undertake any obligation to publicly update or revise any forward-looking statements. Additional information about factors that could lead to material changes in performance is contained in D.O. 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.dohorton.com, and we plan to file our 10-Q later today or tomorrow. 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 and Paul Romanowski, our executive vice presidents and co-chief operating officers, and Bill Wheat, our executive vice president and chief financial officer. The D.R. Horton team delivered an outstanding first quarter, highlighted by a 48% increase in earnings to $3.17 per diluted share. Our consolidated pre-tax income increased 45% to $1.5 billion on a 19% increase in revenues, and our consolidated pre-tax profit margin improved 380 basis points to 21.2%. Our homebody return on inventory for the trailing 12 months into December 31st was 38.5%, and our consolidated return on equity for the same period was 32.4%. These results reflect our experienced teams, their production capabilities, and our ability to leverage D.L. Horton's scale across our broad geographic footprint. Even with the recent rise in mortgage rates, housing market conditions remain very robust, and we are focused on maximizing returns while continuing to increase our market share. There are still significant challenges in the supply chain, including shortages in certain building materials and a very tight labor market. We are focused on building the infrastructure and processes to support a higher level of home starts while working to stabilize and then reduce construction cycle times to our historical norms. After starting construction on 25,500 homes this quarter, our homes and inventory increased 30% from a year ago to 54,800 homes, with only 1,000 unsold completed homes across the nation. Our January home starts and net sales orders were in line with our targets, and we are well positioned to achieve double-digit volume growth in 2022. We believe our strong balance sheet, liquidity, and low leverage 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 while managing our product offerings, incentives, home pricing, sales base, and inventory levels to optimize returns. Mike?