D.R. Horton, Inc.

Good morning and welcome to the second quarter 2023 earnings conference call for DR Horton, America's builder, the largest builder in the United States. At this time, all participants are in a listen-only mode. A 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. Please note 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, Holly, and good morning. Welcome to our call to discuss our results for the second 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.O. Horton on the date of this conference call, and D.O. 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 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.deohorton.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 and Paul Romanowski, our executive vice presidents and co-chief operating officers, and Bill Wheat, our executive vice president and chief financial officer. We are excited to announce that we recently closed our one millionth home, a first for any home builder. We are both humbled and proud to have been a part of a million families achieving their dream of homeownership over the past 45 years. For the second quarter, the D.R. Wharton team delivered solid results, highlighted by earnings of $2.73 per diluted share. Our consolidated pre-tax income was $1.2 billion on $8 billion in revenues with a pre-tax profit margin of 15.6%. Our home building return on inventory for the trailing 12 months ended March 31st was 35.1%. and our consolidated return on equity for the same period was 27.2%. Spring selling season is off to an encouraging start with our net sales orders increasing 73% sequentially from the first quarter. Despite higher mortgage rates and inflationary pressures, demand improved during the quarter due to normal seasonal factors coupled with our use of incentives and pricing adjustments to adapt to changing market conditions. Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable. We are well positioned to navigate changing market conditions with our experienced operators, affordable product offerings, flexible lot supply, and great trade and supplier relationships. Our strong balance sheet liquidity and low leverage provide us with significant financial flexibility. We will continue to focus on managing our product offerings, incentives, home prices, sales pace, and inventory levels to meet the market, consolidate market share, optimize returns, and generate increased operating cash flow. Mike?