D.R. Horton, Inc.

Good morning and welcome to the first quarter 2023 earnings conference call for D.R. Horton, America's builder, the largest builder in the United States. There will be an opportunity to ask questions on today's call. Please press star 1 on your phone at any time to enter the Q&A queue. During today's Q&A, we ask that participants limit themselves to one question and one follow-up. I will now turn the call over to Jessica Hansen, Vice President of Investor Relations for D.R. Horton.

Thank you, Paul, and good morning. Welcome to our call to discuss our results for the first quarter of fiscal 2023. 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.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, which is 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 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 deal hoarding team delivered a solid first quarter highlighted by earnings of $2.76 for diluted share. Our consolidated pre-tax income was $1.3 billion on a 3% increase in revenue with a pre-tax profit margin of 17.5%. Our home building return on inventory for the trailing 12 months ended December 31st was 39.5%. And our consolidated return on equity for the same period was 31.5%. Beginning in June 2022 and continuing through today, we have seen a moderation in housing demand due to affordability challenges caused by the significant rise in mortgage rates coupled with high inflation and general economic uncertainty. Despite these pressures, we still closed over 17,000 homes and sold more than 13,000 homes in what is typically the seasonally slowest quarter of the year. We have seen increased sales activity in the first few weeks of January. While higher mortgage rates and economic uncertainty may persist for some time, the supply of both new and resale homes at affordable price points remains limited, and the demographics supporting housing demand remain favorable. We are well positioned to navigate the current challenging market conditions with our experienced operators affordable product offerings, flexible life supply, and great trade and supply relationships. Our strong balance sheet, liquidity, and low leverage provide us with significant financial flexibility. We will continue to focus on turning our inventory and managing our product offerings, incentives, home pricing, sales base, and inventory levels to meet market, optimize returns, consolidate market share, and generate increased cash flow from our home building operations. Mike?