Forestar Group Inc.

Good afternoon and welcome to Four Star's first quarter 2024 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 conference over to Katie Smith, Director of Finance and Investor Relations for Four Star.

Thank you, John. Good afternoon and welcome to the call to discuss Four Star's first quarter 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 the 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 or will be filed with the Securities Exchange Commission. Our earnings release is on our website at investor.fourstar.com, and we plan to file our 10-Q tomorrow. 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 Andy Oxley, our president and CEO.

Thanks, Katie. Good afternoon, everyone. I'm joined on the call today by Jim Allen, our chief financial officer, and Mark Walker, our chief operating officer. Before we discuss this quarter's results, I'd like to take a moment to introduce myself. since this is my first quarterly public conference call. I joined Four Star at the beginning of the calendar year, transitioning from my prior tenure at D.R. Horton. While there, I served in numerous roles, the most recent being Senior Vice President of Business Development. In addition to being actively involved in D.R. Horton's relationships in strategic land banking and development, I oversaw opening new markets and M&A activity including being involved in the Dale Horton investment in Four Star. I'm excited to have joined the Four Star team and the opportunity to serve in my new role as CEO. I have the utmost respect and appreciation for what Dan Barton, the company's previous CEO, and the Four Star team accomplished with Dan at the helm. We thank him for his many contributions to Four Star during his six years of service. Four Star's strong balance sheet, healthy pre-tax margins, and robust land portfolio position us well for future growth. With over 25 years of experience in land acquisition, development, and home building, I'm confident we will continue to expand Four Star's platform and operations to further strengthen our position as a leading lot developer. We remain focused on investing for future growth turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. Now, on to our results. We are pleased with our first quarter results, highlighted by net income increasing 84% to $38.2 million, or 76 per diluted share. Our pre-tax income increased 84%. to $51.2 million, and our pre-tax profit margin improved 380 basis points to 16.7%. Our consolidated revenues increased 41% to $305.9 million, while lots sold increased 39% to 3,150 lots. These results reflected significant improvement in demand for finished lots compared to the first fiscal quarter of 2023 when builders were reducing starts in anticipation of lower demand for new homes after mortgage interest rates rose rapidly. Jim will now discuss our first quarter's financial results in more detail.