Forestar Group Inc. (NYSE:FOR) Q3 2023 Earnings Conference Call July 20, 2023 5:00 PM ET

Company Participants

Katie Smith - Director of Finance & IR

Dan Bartok - CEO

Jim Allen - CFO

Mark Walker - COO

Conference Call Participants

Truman Patterson - Wolfe Research

Carl Reichardt - BTIG

Asher Sohnen - Citigroup

Doug Wardlaw - JPMorgan

Operator

Good afternoon, and welcome to Forestar's Third Quarter 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. [Operator Instructions] Please note this conference is being recorded.

I will now turn the call over to Katie Smith, Director of Finance and Investor Relations for Forestar.

Katie Smith

Thank you, Paul. Good afternoon, and welcome to the call to discuss Forestar's third 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 Forestar 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 Forestar 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 and Forestar'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.forestar.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 Dan Bartok, our CEO.

Dan Bartok

Thanks, Katie. Good afternoon, everyone. As always, we appreciate your interest in Forestar and taking the time to discuss our third quarter results. In addition to Katie, I'm joined on the call today by Jim Allen, our Chief Financial Officer; and Mark Walker, our Chief Operating Officer.

Our solid third quarter results were driven by stronger market conditions. Our strategy of continuing to develop lots during the market transition positions us well to capitalize on the increased demand for finished lots from builders.

Our third quarter net income increased 18% in the prior year quarter to $46.8 million or $0.93 per diluted share. Pretax income increased 18% to $62.4 million and our pretax profit margin was 16.9%. Consolidated revenues increased 20% to $368.9 million, while lot deliveries increased 10% to 3,812 lots.