Forestar Group Inc.

Good afternoon and welcome to a four-star third quarter 2020 earnings conference call. 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, the majority shareholder of Four Star.

Thank you, Sherry. We welcome each of you to the call to discuss Four Star's financial results along with current market conditions. 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 Four Star 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 Forrester on the date of this conference call, and Forrester 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 Forrester's annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, all of which are filed with the Securities and Exchange Commission. This afternoon's earnings release is on Four Star's website at investor.fourstar.com, and the 10-Q is planned to be filed mid-next week. After this call, we will post an updated investor presentation to Four Star's investor relations site under Events and Presentations for your reference. Now I will turn the call over to Dan Bartok, CEO of Four Star.

Thank you, Jessica, and good afternoon, everyone. In addition to Jessica, I am pleased to be joined on the call today by Jim Allen, our Chief Financial Officer who joined the four-star team last quarter, and by Colin Dawson, D.R. Horton's Vice President of Corporate Finance and Treasurer. To begin, we'd like to again express our gratitude to our country's dedicated field of healthcare workers and to all who are on the front lines caring for our communities. Our thoughts remain with those affected by this pandemic, and our priority continues to be the health and safety of our people and the communities that we serve. Now we'll talk about the current environment and our quarterly results. As we indicated on our last call, our lot sales pace declined throughout the second half of March and April as home builders slowed their purchases of lots to adjust to expected lower levels of home sales as a result of the pandemic. As housing market conditions Improved in May and June, Four Star was able to quickly respond to the increased demand for residential lots and deliver solid third quarter results. Our lot sales pace increased steadily throughout the quarter, resulting in third quarter lot deliveries of over 2,000 lots, an increase of 75% from the same quarter in the prior year. Even with the improvement in market conditions and demand, we remain cautious as to the impact COVID-19 may have on our operations or on the overall economy in the future. However, we believe that we are well positioned to successfully operate during changing market conditions because of our low net leverage and strong liquidity position, our low overhead model, and our relationship with D.R. Horton. We remain uniquely positioned to consolidate market share in the underserved lot development market that lacks well-capitalized and national participants. Jim will now discuss our third quarter financial results.