D.R. Horton, Inc.

Good morning and welcome to the second quarter 2022 earnings conference call for DR Horton, America's Builder, the largest builder in the United States. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions and comments after the presentation. I will now turn the call over to Jessica Hansen, Vice President of Investor Relations for DR Horton.

Thank you, Holly, and good morning. Welcome to our call to discuss our results for the second 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.L. 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 factors 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 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 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 second quarter, highlighted by a 59% increase in earnings to $4.03 per diluted share. Our consolidated pre-tax income increased 60% to $1.9 billion on a 24% increase in revenues. And our consolidated pre-tax profit margin improved 520 basis points to 23.5%. Our home building return on inventory for the trailing 12 months ended March 31st was 40.3%, and our consolidated return on equity for the same period was 34%. These results reflect our experienced teams, the production capabilities, and our ability to leverage D.O. Horton's scale across our broad geographic footprint. Housing market demand remains strong despite the recent increase in mortgage rates, and we are focused on maximizing returns while continuing to aggregate market share. There are still significant challenges in the supply chain, including shortages in certain building materials and a very tight labor market. Our construction cycle times were extended further this quarter, and we continue to work on stabilizing and then reducing our cycle times to historical norms. After starting construction on 24,800 homes this quarter, Our homes and inventory increased 30% from a year ago, with only 600 unsold completed homes across the nation. With 33,900 homes in backlog, 59,800 homes in inventory, a robust lot supply, and strong trade and supplier relationships, we are well positioned for consolidated revenue growth of greater than 25% this year. We believe our strong balance sheet, liquidity, and low leverage position us 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?