Forestar (US:FOR)2022-01-28 17:30Financial Highlights - Forestar delivered 4,516 residential lots in Q1 FY 2022, a 27% increase compared to the prior year period[8] - Net income increased 84% to $41 million in Q1 FY 2022[8] - Pre-tax income increased 83% to $54 million in Q1 FY 2022, with pre-tax profit margin increasing by 360 bps to 131%[8] - Diluted EPS increased 76% to $081 in Q1 FY 2022[8] Growth and Strategy - Forestar expects to grow its lot deliveries 23% to 26% in fiscal year 2022, generating approximately $17 billion in revenue with a pre-tax profit margin between 135% and 140%[15] - The company aims to capture 5% market share within the US single-family residential lot industry, targeting approximately 50,000 annual lot deliveries[17] - Forestar is increasing its focus on Forestar-sourced lots, which have risen to 54% of total owned lots, up from 46% a year ago[47] Relationship with D.R. Horton - D.R Horton owns 63% of Forestar as of December 31, 2021[28] - Forestar aims to supply approximately one-third of DHI's annual lot needs[32] - DHI has the right of first offer (ROFO) to purchase up to 100% of the lots from DHI-sourced projects at market prices[76] Land and Liquidity - Forestar expects to invest at least $175 billion in land acquisition and development in fiscal year 2022[33] - The company has a strong liquidity position of approximately $500 million as of December 31, 2021[53] - Net debt to capital is 339% as of December 31, 2021[53]