Forestar Group Inc.

Good afternoon and welcome to Four Star's fourth quarter 2021 earnings conference call. I will now turn the call over to Katie Smith, Director of Finance and Investor Relations for Four Star.

Thank you, John. Good afternoon, everyone, and welcome to the call to discuss Four Star's fourth quarter and fiscal 2021 results. Thank you for joining us. Before we get started, today's call includes 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 we do not undertake any obligation to update or revise any forward-looking statements publicly. Additional information about factors that could lead to material changes in performance is contained in Four Star's annual report on Form 10-K, and its most recent quarterly report on Form 10-Q, both of which are filed with the SEC. This afternoon's earnings release is on our website at investor.fourstar.com, and we plan to file our 10-K in about two weeks. After this call, we will post an updated investor presentation to our investor relations site under events and presentations for your reference. Now, I will turn the call over to Dan Bartok, our CEO.

Thank you, Katie, and good afternoon, everyone. In addition to Katie, I am pleased to be joined on the call today by Jim Allen, our Chief Financial Officer. We are extremely proud of the Four Star team's accomplishments in the fourth quarter and in full fiscal year. We sustained our momentum in the fourth quarter, and as a result, we continue to gain market share in the fragmented lot development industry. Four Star delivered more than 15,900 lots to customers in fiscal 2021. representing a 53% increase in lot deliveries year over year. This resulted in significant revenue growth and margin expansion, creating meaningful value for our shareholders. We received outstanding operating leverage while improving profitability, even as we invested heavily in growing our team and platform. We are efficiently scaling our business with fiscal 2021 SG&A expenses at 5.2% of revenue, while increasing our gross profit margin 460 basis points from fiscal 2020. The demand for developed lots remains incredibly strong. This, combined with our strategy of pricing lots closer to the time of delivery, enabled 4 Star to take advantage of favorable market conditions when setting finished lot prices in select markets. We also made further progress in delivering more lots from 4 Star source projects, and we continue to reduce our lot banking position. We continue to execute our returns-focused business model. Our high turnover, lower risk manufacturing strategy led us to achieve an 11.7% return on equity for fiscal 2021. This was a 440 basis point improvement from last year and our sixth consecutive quarter of ROE improvement. We expect to continue to increase our returns on equity and inventory as our platform gains additional maturity and scale, and our team captures additional share in their respective markets. Jim will now discuss our fourth quarter and fiscal 2021 results in more detail. Thank you, Dan.