Financial Data and Key Metrics Changes - In Q1, net income was $16.5 million or $0.32 per diluted share, down from $38.2 million or $0.76 per diluted share in the prior year quarter [6] - Pre-tax income was $21.9 million compared to $51.2 million in Q1 of last year, with a pre-tax profit margin of 8.7% versus 16.7% in the prior year quarter due to reduced operating leverage [6] - Revenues totaled $250.4 million, down from $305.9 million in the prior year quarter [6][7] - Gross profit margin for the quarter was 22% compared to 23.8% for the same quarter last year [8] Business Line Data and Key Metrics Changes - The company sold 2,333 lots in the quarter with an average sales price of $105,500 [7] - Owned lot position increased by 23% compared to a year ago, and community count increased by 25% over the same period [5] - SG&A expenses increased by 29% from the prior year quarter to $36 million, primarily due to a 30% increase in employee count [8] Market Data and Key Metrics Changes - The total lot position increased by 29% from a year ago to 106,000 lots, with 64% owned and 36% controlled through purchase contracts [14] - Owned lots under contract increased by 51% from a year ago to 25,200 lots, representing 37% of the owned lot position [15] Company Strategy and Development Direction - The company is focused on investing in compelling land parcels, maximizing returns, and consolidating market share in the lot development industry [5] - The goal is to double market share to 5% over the intermediate term while maintaining a disciplined approach to capital investment [20] - The company expects to invest approximately $2 billion in land acquisition and development in fiscal 2025, subject to market conditions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that builder demand remains strong, particularly for new communities, and there has been no softening in land prices [9][33] - The company expects Q1 to be the lowest delivery quarter of the year, with higher revenues anticipated in the second half of fiscal 2025 [19] - Management expressed confidence in the company's ability to gain market share in the fragmented lot development industry [20] Other Important Information - The company ended the quarter with $645 million of liquidity, including $132 million in unrestricted cash [15] - Total debt was $807 million with no senior note maturities until May 2026, and the net debt to capital ratio was 29.5% [15] Q&A Session Summary Question: Can you provide more detail on the stabilization of costs in land development? - Management indicated that development costs have stabilized over the past 12 months, with no significant price increases observed [23] Question: How do you foresee the growth in employee count and new markets affecting cost leverage? - Management expects SG&A expenses to moderate for the remainder of the year, anticipating high single-digit growth [26] Question: What is driving the higher revenue per lot this quarter? - The increase in revenue per lot was attributed to a specific infill project with significant lot prices that skewed the average sales price up for the quarter [28] Question: How has builder demand been trending year to date? - Builder demand remains strong, particularly for new communities, with no significant delays reported from major customers [32]