Forestar Group Inc.

Good afternoon and welcome to Four Star's second 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 call 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 second 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 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.4star.com, and we plan to file our 10Q early 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 Andy Oxley, our president and CEO.

Thanks, Katie. Good afternoon, everyone. I'm also joined on the call today by Jim Allen, our chief financial officer, and Mark Walker, our chief operating officer. The four-star team delivered a solid second quarter with net income increasing 67% to $45 million or 89 cents per diluted share. Our pre-tax income increased 64% to $58.9 million, and our pre-tax profit margin improved 570 basis points to 17.6%. Consolidated revenues increased 11%, to $333.8 million, while lots sold increased 10% to 3,289 lots. Four Star achieved a 14.9% return on equity for the trailing 12 months ending March 31, 2024. There is strong demand for developed lots, and supply is still constrained in most markets. Four Star's unique blend of financial strength Operating expertise in geographic reach positions us as a leading supplier of finished lots. Over the last 90 days, I've been on the road visiting with our local teams, walking our active projects, and assessing our pipeline to better understand our strengths and opportunities. We have talented market leaders with a proven track record of producing results. Our current land portfolio offers attractive finished lot positions for builders, and our pipeline is full of opportunities supporting our future growth. We remain focused on investing in compelling land parcels, turning our inventory, maximizing returns, and consolidating market share in the highly fragmented lot development industry. Jim will now discuss our second quarter financial results in more detail.