Forestar Group Inc.

Good afternoon and welcome to Four Star's fourth quarter and fiscal 2023 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 Ashley Dagley, Corporate Securities Counsel for Four Star.

Thank you, John. Good afternoon and welcome to the call to discuss Four Star's fourth quarter and fiscal 2023 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 a reasonable assumption, 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 Securities and Exchange Commission. Our earnings release is on our website at investor.fourstar.com, and we plan to file our 10-K late next week. 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 Bartop, our CEO.

Thanks, Ashley. We appreciate you filling in for Katie this quarter. Good afternoon, everyone. As always, we appreciate your interest in Four Star and taking the time to discuss our fourth quarter and fiscal year results. I am pleased to also be joined on the call today by Jim Allen, our Chief Financial Officer, and Mark Walker, our Chief Operating Officer. The Four Star team finished the year strong, highlighted by net income increasing 43% from the prior year quarter to $72.4 million, or $1.44 per diluted share. Pre-tax income in the fourth quarter increased 44% to $95.4 million, and our pre-tax profit margin was 17.4%. Revenues for the quarter increased 44% to $549.7 million, while lots sold increased 27% to $4,986. While our fourth quarter performance was substantially stronger than a year ago, The first half of fiscal 2023 was challenging. Despite the challenges and volatility that occurred this year, we maintained double-digit returns and a strong pre-tax profit margin of 15.4%, while generating $364 million of operating cash flow and increasing our liquidity to $1 billion. Our book value per share increased 14% from a year ago, and our return on equity was 13.2%. As we begin fiscal 2024, Four Star is well positioned, both financially and operationally, to capitalize on builder demand for finished lots. We will continue to focus on investing for our future growth, turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. Jim will now discuss our fourth quarter and fiscal 2023 financial results in more detail.