Forestar Group Inc (NYSE:FOR) Q4 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 05:00 pm ET

Previous

Forestar Group Inc (NYSE:FOR) Q4 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good afternoon and welcome to Forestar's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to Jessica Hansen, Vice President of Investor Relations for D.R. Horton, the majority owner of Forestar.

Executive
Jessica Hansen

Thank you, Daryl. We welcome each of you to our call to discuss Forestar's financial results, along with the company's expected growth in capital plans. Before we get started, today's call may include comments that constitute 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 Forestar does not undertake any obligation to publicly update or revise any forward-looking statements.

Additional information about issues that could lead to material changes in performance is contained in Forestar's 2018 Annual Report on Form 10-KT and the subsequent quarterly reports on Form 10-Q, all of which are filed with the Securities and Exchange Commission. This afternoon's earnings release is on Forestar's website at investor.forestar.com and Forestar's 10-K is planned to be filed in about two weeks. After this call, we will post an updated investor presentation to Forestar's Investor Relations site under Events and Presentations for your reference.

Now I will turn the call over to Dan Bartok, the CEO of Forestar.

Executive
Daniel C. Bartok

Thank you, Jessica and good afternoon everyone. Before we talk about the business and our results for the quarter and full-year, I want to address the 8-K that we filed yesterday. Chuck Jehl, Forestar's CFO since 2015 has decided to leave the company to pursue other opportunities. Chuck played a key role for many years on the Forestar team and helped us begin the transition into a lot manufacturer that we are today. We wish him all the best in his future endeavors.

As noted in the 8-K, Chuck's resignation was not a result of any issue, concern or disagreement with the company's strategy, operations, accounting, financial reporting or our internal controls. Consistency and transparency in our financial reporting are extremely high priorities for the Forestar team. We're evaluating our alternatives to fill the CFO role and I'm confident in our ability to fulfill Forestar's obligations as a public company and our responsibilities to our shareholders.

Additionally D.R. Horton currently provides us accounting, financial reporting and treasury support through the shared services agreement between our two companies. Under that agreement and on a temporary basis, D.R. Horton's CFO, Bill Wheat and Controller, Aron Odom have taken on our Principal Financial and Accounting Officer roles. Now let's move on to the business and our results.

Our team is making great progress and finished the year in a strong position. For the year, we delivered results that exceeded all of our fiscal 2019 guidance metrics that we have shared in our prior communications. We will discuss these results in detail. First, I'd like