Financial Data and Key Metrics Changes - Quarterly revenues were $5 million, with gross profits of approximately $3.2 million, reflecting a gross margin of about 63% [7] - Net income for the quarter was over $2 million, translating to earnings per share of $0.09, while year-to-date net income reached $7 million, or $0.29 per share [9][15] - Revenue trends showed a slight decline from previous quarters due to weighted deliveries of lots, particularly from the largest homebuilder, D.R. Horton [9][10] Business Line Data and Key Metrics Changes - The water utility segment saw growth driven by annual customer additions and strong tap fees, particularly from Phase 2B, with about 230 lots delivered last year [16][18] - The oil and gas segment is expected to normalize in fiscal 2026 after a weaker performance in 2025 due to permitting issues [19][20] - The land development segment is on track to deliver approximately 900 lots in Phase 2C, with ongoing work in Phase 2D [21][43] Market Data and Key Metrics Changes - The company operates in a low inventory environment for entry-level homes in the Denver area, which is beneficial for its market positioning [55] - The housing market faces headwinds from consumer confidence and affordability, but the company remains well-positioned due to its unique entry-level master plan community offerings [54][56] Company Strategy and Development Direction - The company focuses on maintaining liquidity to invest in business segments and capitalize on market opportunities, particularly in land acquisition and water rights [52][53] - The strategy includes a phased delivery model to manage inventory levels effectively, ensuring that neither the company nor its homebuilder partners are burdened with excess inventory [56] Management's Comments on Operating Environment and Future Outlook - Management highlighted that consumer confidence is a significant factor affecting the housing market, but the company is well-positioned to meet demand due to its unique offerings [54] - The company anticipates stronger performance in the single-family rental segment over the next 18 months, with plans to increase the number of units [51] Other Important Information - The company has a strong balance sheet with high liquidity, allowing it to navigate volatile markets effectively [52] - A groundbreaking for a new high school project was announced, which is expected to enhance community appeal and support home sales [45] Q&A Session Summary Question: Is there any development on the reservoir sites? - Management indicated that while there are no immediate developments, they are exploring partnership opportunities related to water rights and surface reservoirs [69][70] Question: Where will the water for the new parcel development be sourced? - The water will be sourced from the city of Aurora, as the property has been annexed to the city for over 20 years [71][72] Question: What is the status of the water rights application mentioned in the 10-K? - The company is negotiating with opposing groups regarding a new water right application that was initially turned down, with hopes for a resolution [73][75]

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] - Revenues totaled $250.4 million compared to $305.9 million in the prior year quarter, reflecting a decrease [6][7] - Pre-tax income was $21.9 million, down from $51.2 million in the same quarter last year, with a pre-tax profit margin of 8.7% compared to 16.7% previously [6][8] - SG&A expenses increased by 29% to $36 million, primarily due to a 30% increase in employee count [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] - The owned lot position increased by 23% year-over-year, and community count rose by 25% [5] - The gross profit margin for the quarter was 22%, slightly down from 23.8% in the prior year quarter [8] Market Data and Key Metrics Changes - Demand for finished lots remains solid, with owned lots under contract doubling from a year ago [4] - The company’s total lot position increased by 29% to 106,000 lots, with 64% owned and 36% controlled through purchase contracts [13] - The backlog of contracted lots is expected to generate approximately $2.2 billion in future revenue [14] Company Strategy and Development Direction - The company is focused on investing in land acquisition and development, with a planned investment of approximately $2 billion in fiscal 2025 [12] - The strategic goal is to double market share to 5% over the intermediate term [19] - The company aims to maintain a disciplined approach to capital investment while enhancing long-term value [19] Management's Comments on Operating Environment and Future Outlook - Management noted that while home inventories have increased, affordable housing supply remains limited, with favorable demographics supporting housing demand [8] - The company expects Q1 to be the lowest delivery quarter of the fiscal year, with higher revenues anticipated in the second half [18] - Management expressed confidence in the company’s position to gain market share in the fragmented lot development industry [19] Other Important Information - The company ended the quarter with $645 million in liquidity, including $132 million in cash [14] - The corporate credit rating was upgraded from B+ to BB- [14] - The company’s capital structure provides operational flexibility and positions it to take advantage of attractive opportunities [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 expect employee count growth to impact cost leverage in the next year or two? - Management expects SG&A expenses to moderate for the remainder of the year, anticipating high single-digit growth [26] Question: What drove the higher revenue per lot this quarter? - The increase was attributed to a specific infill project with significant lot prices that skewed the average sales price upward [28] Question: How has builder demand been trending year to date? - Builder demand remains strong, particularly for new communities, with existing communities also seeing solid demand [32] Question: Can you elaborate on the cadence of deliveries for the rest of the year? - Management noted that Q1 is typically the lowest delivery quarter, with a majority of deliveries expected in the second half of the year [34]

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]