Forestar Group Inc.

Good afternoon and welcome to Four Star's first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A brief 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jessica Hansen, Vice President of Investor Relations for D.R. Horton, the majority shareholder of Four Star.

Thank you, Paul. We welcome each of you to the call to discuss Four Star's financial results. And our apologies for the brief delay as our provider experienced some technical difficulties. 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 Four Star on the date of this conference call, and Four Star 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 Four Star's 2020 annual report on Form 10-K, which is filed with the Securities and Exchange Commission. This afternoon's earnings release is on Four Star's website at investor.fourstar.com. and the 10Q is planned to be filed mid-next week. After this call, we will post an updated investor presentation to Forrester's investor relations site under Events and Presentations for your reference. Now, I will turn the call over to Stan Bartok, CEO of Forrester.

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. I'd like to first give a shout-out to the Forrester team, the size of our team has doubled in the last year during a time of social distancing and remote work. The team is working together well through the obstacles and is focused on achieving our lofty goals. Their strong belief in Four Star and our unique business plan has only been surpassed by their hard work and dedication to implement and execute our plan. We are off to a strong start for fiscal 2021. we continue to deliver on key milestones which will create additional value for our shareholders. Our business is expanding rapidly and we are capitalizing on the strength of the residential finished lot market. We delivered more than 10,000 lots to home builders in fiscal 2020 and we are now on track to deliver over 13,500 lots in fiscal 2021. Executing on our plan is translating into increased profitability. Our gross profit margin increased by 200 basis points year-over-year to 14.4% as a result of our intentional shift towards more four-star source projects, less lot banking, and the overall strength of the market. We are consolidating market share in the undercapitalized and fragmented lot development industry. Four-star lots sold to D.R. Horton continue to grow as a percentage of D.R. Horton's closings year-over-year. and our lot deliveries to third-party builders are at their highest level since the quarter of DR Horton's acquisition of its interest in Four Star. We are executing on our returns-focused business model and building upon the foundation which has been set. Our high turnover, lower risk manufacturing strategy led to a 140 basis point year-over-year improvement in Four Star's return on equity. We expect to generate further growth and profits and increases in returns in fiscal 2021 as our platform continues to gain scale and our team matures. We'll now discuss our first quarter financial results in more detail. Jim?