Forestar (US:FOR)2026-01-22 19:10Revenue and Sales Performance - For the three months ended December 31, 2025, total revenues increased by 9% to $273.0 million compared to $250.4 million in the prior year period[88]. - The company sold 1,944 lots with an average sales price of $121,000, resulting in a 5% decrease in total residential lot sales revenue due to a 17% decrease in lots sold[88]. - The average sales price per lot increased by 15% compared to the prior year period, primarily due to changes in the regional mix of lot sales[88]. Income and Expenses - Pre-tax income for the three months ended December 31, 2025 was $20.8 million, down from $21.9 million in the prior year period, with a pre-tax operating margin of 7.6% compared to 8.7%[88]. - SG&A expense as a percentage of revenues decreased to 13.4% in the three months ended December 31, 2025, down from 14.4% in the prior year period[102]. Financial Position and Liquidity - The company had a total lot position of 101,000 residential lots as of December 31, 2025, with 65,600 owned and 35,400 controlled through purchase contracts[85]. - Liquidity position included $211.7 million in cash and cash equivalents and $607.6 million in available borrowing capacity on the revolving credit facility[107]. - The ratio of debt to total capital was 30.8% at December 31, 2025, a decrease from 31.2% at September 30, 2025[108]. Debt and Credit Facilities - The company has a $665 million senior unsecured revolving credit facility, which can be increased to $1 billion under certain conditions[110]. - As of December 31, 2025, there were no borrowings outstanding under the revolving credit facility, with $57.4 million in letters of credit issued, resulting in an available capacity of $607.6 million[110]. - The company has $300 million principal amount of 5.0% senior notes maturing on March 1, 2028, with an annual effective interest rate of 5.2%[113]. - The company also has $500 million principal amount of 6.5% senior notes maturing on March 15, 2033, with an annual effective interest rate of 6.7%[114]. Cash Flow - In the three months ended December 31, 2025, net cash used in operating activities was $157.0 million, a decrease from $450.0 million in the same period of 2024[120]. - Net cash used in financing activities for the three months ended December 31, 2025, was $10.4 million, primarily due to the repayment of a $9.9 million note payable[122]. Investment and Repurchase Plans - The company plans to remain disciplined in land investments and manage lot sales pace and pricing to optimize returns[91]. - The company has an effective shelf registration statement for $750 million of equity securities, with $300 million reserved for an at-the-market equity offering program[119]. - The company has authorized the repurchase of up to $30 million of its debt securities, with the full amount remaining available as of December 31, 2025[117]. Compliance and Covenants - The company was in compliance with all financial covenants of its revolving credit facility as of December 31, 2025[111]. - The company repaid a $9.9 million principal amount of a note payable in December 2025, which was secured by real estate[118].