FOR - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. And welcome to Forestar’s Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. the Investor to Relations turn of Smith, now and Finance for would call Katie over Director I Forestar.

Katie Smith

XXXX. third Thank our you, of the call to fiscal quarter to discuss Paul. our results And welcome for

defined Before we get XXXX. Private today’s call of Litigation Act by statements Reform includes Securities the forward-looking started, as

information that on statements forward-looking not will be revise date different. All any Although, on publicly. conference we assumptions, outcomes Forestar such call believes Forestar there forward-looking any any do actual reasonable are available based of this not upon statements statements based or the obligation are is to no assurance and update to materially undertake

After about to XX-Q, for SEC. This is post we most are XX-Q and Investor information changes release its the that Forestar’s early both at investor.forestar.com to material Presentations filed quarterly presentation under can with and Relations Form to in week. call, contained reference. our on report website our of site be XX-K Additional Events file our found updated recent performance which Form investor this and could plan annual factors your afternoon’s we lead on in report earnings next an will on

to over call the Bartok, turn I’ll our CEO. Dan Now,

Dan Bartok

Good Thank everyone. afternoon, you, Katie.

D.R. In outstanding Hansen, an by Horton’s on am delivered Vice Jim Relations. addition to of Forestar Officer; pleased quarter. today team Jessica Katie, President joined the Allen, Financial call I to be and our The third Chief Investor

creating for significant in has and put lots a our -- development market on built on opportunities. to accelerated attractive development margin last identifying have meaningful and market resulted revenue in an value year projects beginning investment for expansion, shareholders. have This done amazing job We team significant lots. our now of are executing our quickly position to our they those deliver, finished capitalize and We growth that us activities it demand and

long-term continue profitable to us execute growth. and solidly, for positioning teams development contractors Our

to and We have is increase homebuilder’s lots. XX,XXX between Executing expected to enabling delivered measurable delivering fiscal on plan deliveries us fiscal over year-to-date, XX,XXX XX,XXX lots to XXXX results. our for our

XXX to meet improvement. remains in lots of of third to conditions factors margin with enable Forestar time their for to gross take delivery, points basis develop This, finished select The gross contributed margin Our strong lot Several demand this demand. inventory sales to profit prices as advantage combined our markets. pricing strategy homebuilders quarter’s of closer when lots quarter favorable to XX.X%. incredibly the positions market bolster setting increased year-over-year

progress and from delivering further in reduce sourced banking. lots make more Forestar to projects our also to We we exposure continue lot

committed focused are to our model. business We returns

improvement equity turnover, XXX-basis-point manufacturing This to XX, ended was risk achieve the a high our trailing ROE return fifth consecutive months XX% and for low quarter of led a XXXX. Our us strategy June on improvement. XX year-over-year

expect increased We as third and markets. more scale, their detail. equity results discuss on to our captures in and will returns now share Jim team quarter inventory and respective continue additional gains our our our maturity to in increase platform

Jim Allen

quarter, share, third quarter. year the XX% million per to $XX.X $X.XX or income compared Forestar’s the Dan. Thank in prior diluted $X.XX net or In you, share diluted million increased per to $XX.X

the same million. sales sold up same lots builders lot of fiscal XX% We during the from price increase in The third to We an $XX,XXX, D.R. of increased to XX% during this third the of XXXX. XX% XXXX. the the year. in XX% Lots revenues quarter in quarter year the residential were D.R. Dan? other the sold from development eight to quarter quarter lot during Horton in projects, sold sold, the last was For from quarter represented XX% of Forestar’s up quarter year, quarter, for prior Horton down quarter lot total of lots quarter, four the XX% $XXX.X X,XXX in builders from the year-over-year. from sold than average

Dan Bartok

pretax Our pretax XXX% profit of income margin in million, a to with X.X%. third quarter the increased $XX.X

we notes As senior our XXXX, in during notes quarter in previously X% with mature X.XX% that refinance due the announced, XXXX. senior

As result redemption, on recognize we a of debt a loss the $XX.X extinguishment million. of of

However, the in substantial resulted refinancing transaction savings. interest

driven the development to from largely due margin basis the XX.X%. XX.X% $XX.X was our for points increased that year Excluding prior which profit In capitalizing points lot our our $XX.X improved the margin The in increased XX.X% primarily profit projects, demand income from charge, on XXX third strong pretax quarter. to improvement to increased on sales by was to million lots. margins finished pretax XXX and basis XXX% quarter, million gross

focused XX points We single-digit continue continue quarter. due efficiently managing SG&A our the as business basis gross remain the and in support percentage improvement expect deliveries timing Katie? our we quarterly platform sales. SG&A prior an of to manage of pretax out We growth. of mix to percentage. to in was a year quarter track expenses our expense third we on X.X%, a revenues from believe fluctuations lot and margins, as SG&A the in will in We significant the of build to X.X% our our our mid

Katie Smith

within criteria return minimum return XX for development inventory investment pretax a XX% the a annual initial of cash on underwriting new months. Forestar’s and includes projects

the land investments for XX% our was quarter, development. land XX% development lots roughly and which totaled $XXX million, land for and During and third was of

full development in $X.XX year-to-date, our invest fiscal in for of totaled and expect now investments land For to at the fiscal the land billion development We least $X.X year billion. lots, XXXX. lots, and

XXth year under contracts. which XX% XX,XXX of controlled billion are representing of least are revenue. lots XX% lots $X.X ago at XX,XXX from Of Forestar’s through to lot owned future D.R. at lots, a owned XX,XXX sell purchase XX,XXX and contract lots increased to Horton to position our June are

long-term of to supply the by from ago. Lots XX% under year continue company’s our Another Of our XX% to company’s in margins. to the XXth, owned supporting a percentage gross forced subject master lot lot a of improvement by agreements. the lots owned at XX% position Forestar portfolio offer D.R. a as are Forestar, June first forced were Horton owned writer grow up

are owned lots. target inventory to three-year and four-year of land Jim? We continuing to a

Jim Allen

Forestar and on was $XXX remains unrestricted and of capital ample on revolving of We the $XXX liquidity million debt XX.X%. modest focused our leverage. million including end quarter credit June ratio was with XXth strong net and quarter million sheet $XXX balance our debt liquidity, at million facility. ended to a at maintaining available capacity with $XXX of Total cash

the to $XXX maturity during share announced, million up from size to our equity amended June the revolving extended year to book XXXX million the per Dan? increased stockholders previously from and XX% we $XXX quarter As and increase ago. value XXXX. date was our $XX.XX, a At credit to facility facility XXth,

Dan Bartok

Looking ahead, business. we remain our in for the outlook confident

our strategic operational positions tailwinds favorable by national across diverse our and for of supported Forestar further success. market plan execution Continued footprint

uniquely billion lot conditions, deliver positioned is industry. of Forestar generating to for economic housing fiscal revenue our development Based to we lots, and in gain between and and results highly through share fragmented market now the $X.X on XXXX. cycles the market current approximately XX,XXX expect XX,XXX in year-to-date market fiscal

loss XXXX the our expecting fiscal pretax to on now excluding of of in for XX.X% of be range full are extinguishment profit the year $XX.X XX%, this We to debt. margin million year’s

which imply for the fiscal tax approximately of fourth expect full Additionally, to does year approximately rate tax be for a our quarter. rate the we XX%, XX%

Before to I’d everyone we Forestar’s like of questions, highlights. turn to remind investment

land. no typical We unentitled developer, different very have unique model from manufacturing a we land business lot have that is

on are We the priced focused developing affordably housing lots market. for

market consolidating We through navigating seasoned experienced market and a have management that in share is cycles. team in

We sheet and have a position, balance leverage. with low strong liquidity net

percentage. platform we line we to single-digit a our continuing relationship we relationship largest competitive have time, are We and allows be this profitable importantly, now To our questions. advantage our positioned increasingly business will have to open execute success. D.R. Most managing minimizing continued with been builder. for risk. summarize, to Paul, us are the nationally at This and while to our due plan on for strategic are highly Horton, unique nation’s mid SG&A expand

Operator

Thank [Operator you. Thank you. Instructions]

comes first proceed Our your from with question BTIG. Please Ryan with Gilbert question.

Ryan Gilbert

everyone. Hi, questions. my for Thanks taking

just detail from any the The appreciate seeing on, homebuilders. I the guess, I’d market, or you’re Dan, first can that demand on and is add color you question overall

market that certainly market, there’s maybe there’s that concern demand homebuyer be some that the a bit to -- the although think I that case. the is be land bleeding in that sense might your into leveling been results, seem doesn’t it that off and a back from

or that color give any from homebuilders just you us be helpful? on details would could So demand

Dan Bartok

Yeah. Yeah.

they have point, what off seems What really as insatiable. are it hunger homebuilders that whether to lots seeing demand. for As they have the least, at visibility fall to this to, is stronger really I at know that don’t I be in relates really they’re -- as a that a seeing,

went inventory we deliver even finish Our record based us. number guidance fast of on lots actually delivered which really year, and quarter down our as the of be to have our this fourth we for for that quarter, buying though rest as they’re we the lot and can obviously, is breaker deliveries, strong them, a we on expect

this demand not lack any that from seeing want at of point, we’re lots. So to it’s buy -- homebuilders

their of build lots is get off to the one think constraints I houses [ph]. ability to

Ryan Gilbert

you. Thank Great. Okay.

and no bank needed sustainable growth just balance on you’ve land your capital a I going is XXXX, year-over-year. XX% XX% how But forward Second the question thinking been kind up that’s I’ve about of think is sheet on like, with discussed, rate, additional XXXX.

a growth. seems it do in lot than better So like you place to XX% have

XXXX any color you can in would So you think ahead do just helpful? of growth on or that rate XXXX produce be

Dan Bartok

is this for Yeah. to guidance early year. Yeah. any give too At probably it next real point

off I strong better hit you quarter have thought think, to lot and we’re lot going that market that some forward. development able based not we Obviously, XX% those continue. we try XX%. point, we for XX% hope right conditions But this I feel and on that said, I are and that I’m backing about will a at good we feel going guidance call be to this preparing very it good really I growth Although, a about color up today. that And rate, to under next that what tighten run. now give that

Ryan Gilbert

assuming flat last of It terms average the pricing mostly pricing. in second maybe quarter. then lot like is selling the you appreciation me Okay. seeing I’m just how for on price what about Great. you’re to one that’s can But lots? pretty finished market in looks And undeveloped and price talk compares just mixed. was that sequentially in your of

Dan Bartok

Yeah. It is mix.

We pricing definitely some power. seeing are

showed margins. the that in up think I

and guided to able you remember year As quarter you last rest the overachieve we down of that. for were we probably the on

the achieve. to to we at definitely think trying and every going seeing to are package. again, hamper I making lot we But what And seeing on than careful had We the that, about lot looking of velocities really looking the project as house anticipated quarter, look really felt But, being a under the there’s of good really say that very strength. right sure now. the as to development affordability we’re we quarter again, there that and We obviously, pricing returns basis probably project-by-project at a believe we future not in power. have pricing about for forward better are really we’re we lots brings power

Ryan Gilbert

very much. Great. Thanks Okay.

Operator

you. Thank

next your question. Please with with Pettinari comes Our question Anthony proceed from Citi.

Anthony Pettinari

maybe was Good afternoon. the at guidance balance the little lot much How I the XQ the for internal what midpoint? deliveries of delivery a in bit the sort guidance, the units guess, drove of year? X,XXX outlook above about expectations raised versus of Can you your talk change

Dan Bartok

know fourth in versus quarter what have delivered quarter. I a number was of I Yeah. that third don’t specific

delays projects That from there’s it’s give, think in driven making -- certain expectations. of there very at completed. were talk we to delays comfortable careful We what get sure market, able least guidance probably materials, getting lot been perspective a has potentially we’re in I fourth of more been with. the quarter being with by our in

on we’re As us it the for next -- as at made raising we quarter, that where in guidance. see comfortable unfolded deliveries this and quarter has

for seeing the I really quarter. about good next So we’re feel what

Anthony Pettinari

And kind or end upside guidance, the builders lower in the function driving of a hitting just in of is just sort That’s you part higher materializing or do to of then those risk that, the maybe greatest or permitting downside? of mostly demand the Okay. terms material on helpful. the very bottlenecks it sort of of think timing related of the terms and maybe of the labor it’s

Dan Bartok

Yeah.

I downside the upside think really in is the versus risk side. delivery of

power. given We us increased, have demand fall not of in has anything, seen the If for a any I bit off lots. pricing again, little demand once think, has

think completion I able ability quarter good and projects to lots. based that deliver to pretty it’s see this So substantial complete predominantly those being those we on hitting the

Anthony Pettinari

quick very Maybe just helpful. one That’s Okay. follow-up.

cycle pandemic times to in In able bit. some wake labor it terms of the because were a you times, cycle in probably of looseness that’s seemed markets, obviously, of sort accelerate like the tightened of the quite

cycle and of they any now, where they stable, terms times there? improving, maybe you give color just deteriorating, In are stand can

Dan Bartok

use think six were Again, weather. times pretty it’s able it is definitely lot of to But really expand. it’s months they lots a delivery the of the were the I get season of right, compared things, ability always weather. a stepped when certain a inspections, seeing hate not. where bit of last we cycle been to country. and of year in were we as into on certain to rainy ability to really when been there the accelerate cycle is And is times people of we are there you’re I gas it’s materials, earlier little kind ago, parts

So earlier for we’re year half that us from definitely ago, definitely year. but a and this seeing was back probably or year an first, to a a ago normal more extension, extended what

Anthony Pettinari

I’ll it over. helpful. That’s turn Okay.

Operator

Thank you.

Please next Raghavan proceed comes question with your Securities. question. from Our Deepa Fargo Wells with

Deepa Raghavan

Good Hey. and Thanks and for taking Jim, my Dan, Katie. question. evening,

any get Are getting trying more little operations a trying that following to manage of the experiencing, growth. Just growth but clarity of -- your you’re on up for kind to also there level in bit time. labor cycle But You new be growing. this you’re it given challenges more just quarter? little challenge, cropped up a the seems of like the the that should way mentioned kind of bit

you with pretty up operations, how be about will managing Just quarter, gently new if to that curious, anything actually especially this regards this growth, and talk cropped can you’re new kind the for challenges helpful? that of

Dan Bartok

of second I the part a second start guess question with your I’ll Yeah. question first. or

we’ve We’ve planning we been have have that staffing ago our for been for pretty a from quite growth up We our for considerably. while volumes doubled year a preparing really headcount and today. on almost the

continue we from a business need itself, very for growth So think execute And down continue labor we’ll us the I to for to obviously, plan. on well path. we’re to add to as standpoint continue Forestar our positioned staff

feel it relates completed. extent to projects fortunate. operators As getting I our some very Again, I and -- to

on any -- to able not contractors related complete really We’re the the really being to job to delays jobs. the seeing delays not get people

dollars to that having are, turnover, hearing been people hour, moving more operator they’re those but for operators able are are another We where people. to a an replace couple they’ve extra

material. So feel I quarter that. the I about shortages last Probably we’re in talking -- hearing I was about, would say, we that about thing good one

like We things experience are and to put together. pipe fittings starting PVC for getting some to delays

of in pour. and some delays get seen you’re to I’ve where concrete amount have projects, to been allocation you kind day We full pours related able can limited concrete certain on of the

we at last quarter point, curve that stay the things So this I or I than some in think, trying see sure and that, market. base have we we’re I good various materials our dramatic. are best aligned think, are has but base appropriate. And relying that impact were earlier we’ve to in the Yeah, been to part is some of ordered of, is some ourselves ahead normally of nothing the with, of customer starting it making think it hearing And contractor the strong on the process would strong. really of been our people is contractors, about,

us. very been I has, think, beneficial that So for

Deepa Raghavan

I already is starting This XXK. this at stabilize there’s still lot or and supply question you pretty you of helpful. flattish, Is bit mean, and it not the kind trajectory it’s think see but strong there’s down still That’s -- increases. it’s time inspected, is in this my is on a the to where are Okay. -- second point backdrop still at enough imbalance. the a wise demand price

have steps still that -- lot keep pricing your is lot here. measures any are expectation fairness, perspective any undertaking thinking lot a How not you to all -- threshold? that? side, are certain you They’re in affordability are you from pricing from your -- run. to But think under I prices So stabilizing more average about taking

Dan Bartok

of a an But think our that $XX,XXX new a this builders are project, experiencing price $XX,XXX. basis. sale to the even velocity. still about $XX,XXX. a versus of affordable And project-by-project sales really case we project. At average or balancing comparable We projects to closer those on look price is is velocity we points. price with that over it We the make a think Well, or what at in sure I is tried mean, that in is interesting we’re keeps think price in even it average us fact little median that point, we

which on amount where up time we setting keeping affordable really to that So But just that price lots and pricing we think, sure sell velocity to appropriate making a as over well are basis of high. project-by-project again, that is spend negotiate manage as under as our half prices probably a significant $XX,XXX, yeah, us to is I it, sets our trying we’re far keep house today. it’s of we’re for returns trying

Deepa Raghavan

All leave Just far? Thank is curious trending I’ll right. how any so it on My and you. one, updates July there. final

Dan Bartok

we’re It’s for a implies today issuing our the record full -- deliveries. which as in lot far again, quarter as breaking July, us guidance year, again for

really us. next about on months I July this good sit of at I plus So feel and XXth, ahead here feel the good July two point, as really I about

Deepa Raghavan

Thanks on. I’ll so pass it much.

Operator

Thank you.

comes question proceed question. Patterson Truman Please with Wolfe from your Research. next Our with

Truman Patterson

questions. my taking afternoon, everyone, thanks Hey. for Good and

over decent takes kind forward, total XXXX to look above you approaching six threshold XX% guess of at assuming your a threshold, First, lot all work you’re debt just should development capital lots the going if next, to going bit spin XX% over a call of that four we’ll networking net months years or we you closings. I that up kind acquisition Are right? sheet it, to moderate going touch months? start comfortable to expect your balance own own wanted little that that to amount forward, capital XX XX,XXX on and of your just

Dan Bartok

Our sales continue accelerate. should velocity to

the existing -- the need be to we there. replace lots So will

trend going for It’s It our our And projects shovel a will XX% down. as frankly, bit back it much out over we still requirements. I over anyway. be ready those underwriting that our little that XX% there, in goal those little while, to really to also land, managing comfortable am far finding other up the may that fit but and bring with a XX%, As our smaller about to are be it’s may we’re number. there trying to believe that requirements bid harder a operating just less underwriting model fit especially of those people projects, price as find today

So our I good feel about pipeline.

to only to that projects. think going good I projects and very to buying think that solid that we’re we we’re going are XX%. again, that guide we’re making be careful sure But, really

not exceed at We’re for all. if that -- we much don’t or look happens long to very very XX% by

Truman Patterson

Okay.

that kind that are least there the that be maintain couple very given the see any… Okay. it’ll new quarters back And builder is tailwinds at in finding XX% range, your least lot that it clearly look the kind or There’s all hitting assume strong in in that some now, I XXXX same underwriting. range. power out this at at we gross past are margin seems thing Is a in safe guidance, are to just should at When normal lots your looking then, the you into markets. of it in market demand market like your right of just pricing

Dan Bartok

know… You

Truman Patterson

we items big to … think need about? that

Dan Bartok

our We’re portfolio. still maturing

quarter-to-quarter. I take think from to XX% see going run you’re I rate. still as that fluctuations some wouldn’t a

you I’m next just Hopefully, -- once, show we -- as that maybe good. can to that that I to what XX% umpteen I wouldn’t me, well do quarters as folks you still that land. and done I and think I those betting quarter make quarter us that. say the outsized impossible. can’t -- I going the than at But bought really fortunate, a I quarters, of don’t last actually wouldn’t all and every that really think It more when for of least year which it on will market first and our the myself I the was hit be to to these back I’ve those is and -- if it happen the year quarter think We that it’s really pricings was maybe prices had market. we ago or But a we up. were got ran before markets was fit really lot for when when now

was smart about inventory we but of people, we market a So good in that land the point really lots really a bought the it we really whether lot and good or feel at just were have. we

Katie Smith

And I to return. best Dan fifth Truman, mean heard, say be what and will possible and is more drive margin market in but to be the going gross their They’ve conditions, will it gross on portfolio a and margins. it they’re reported is based ROE improvement focus consecutive over the over. of returns maximize on the as you’ve quarter than team

Truman Patterson

Okay.

short right for there’s strong demand now. And me, talk final one and basically on then enough. already of been builders about lot the a are Fair just very Okay. call lots

bit? perceive hoping can bit any Just as lot there or color, where bit Just you’re builders a are a soften metros, that where any are see there a little push investment? land starting you or to any back more their you’re give frothy of you little for hear little appetite bit markets or back a a a scaling markets environment

Dan Bartok

where and we When quarter, -- before, see really, up there’s have been in in published, get decks a governmentally last in hopefully seeing slow again, fashionable and did our don’t more map in up we or exposure -- markets not we map has the the other less probably can demand. a gets than know focus exposure regulated Texas. presentations timeframe. you’ll are investor a I governmental compare so Northwest velocity we regulated Again, lot and against that our can Pacific where I increased deliverable as we’re we think think, markets in as have you further the Florida and

at it’s So, and again, of lack the Pacific it’s that not you as can we’re allocation of making and I opportunities the looking that underwriting projects -- from see sure now. say, demand, from dollars Northwest deliver more a right on our will I into lots on we so, less

Truman Patterson

Okay. Thank you and good luck on the upcoming quarter.

Dan Bartok

Great. Thanks, Truman.

Operator

Thank you.

Our Please next Rehaut J.P. question your Michael question. comes from with Morgan. proceed with

Unidentified Analyst

Hi. This Thanks on Maggie for Mike. [ph] for taking questions. is my

hoping First, on to a this I quarter. the in bit was little zero gross margins

more You several closer was delivery, I lots, could order color maybe sourced give But the lots. a listed bit upside, upside, that demand, little there? more factors, wondering maybe different rank Forestar the of driving pricing you drivers if delivering

Dan Bartok

Forestar boy it’s it earlier That’s price one. if had a top we -- is transaction I market two, like is where I’d didn’t But in rank Oh transactions where order. to demand. strong tough the pick probably the to sourced had it say we is, -- and

in portfolio then in transaction. we’re XX% own transactions over Forestar that lots And versus a delivering again So last we of -- builder again, sourced and driven growing a and we into are to and had in now strain. priced position But that lot Forestar sourced sourced by that where is be and we -- the area, recently happen our quarter the of only were -- that market in transactions. been lots the --

Unidentified Analyst

talk can kind over we on of X% some into of few in about that know second, longer And X% But see of mid single-digit of line about just to I more as so to should comfortable we you medium maybe I thinking in had mid a years, leverage to Thanks. kind you SG&A. how the it. kind spoke to look kind about the talk be the single-digit. you and term? XXXX know the Got SG&A next continue range, forward ability on and past the range. to being

Dan Bartok

Yeah.

based that. darn see -- and variability you’ll X% good going that manage think be think up a I rate far going mature I leverage, to continues I some at our I you could for on is pretty that I and way scale I -- will quantify volumes. I for further? it I X%? and can But as be be least today. mid don’t some that to it we that to you I brought is leveraged to as Is think can was it think as but quarter-to-quarter X%? think probably platform That up, know see

Unidentified Analyst

it. Got you. Thank

Operator

you. Thank

comes Please question. Our Housing next with question your from Research Alex with Center. proceed Barron

Alex Barron

or Thanks I is your if the how is is understand, in using? home help couple taking prices? metric me you in other some prices the have price move they as question. was could price could for the hoping lots the a A, you are Thanks. up are function of guys lots? how quarters, start Yeah. there last my prior to home quickly words, sensitive -- are you relative on And re-price lots home your to And B, are the other

Dan Bartok

to they’re themselves margin it, on is that to move out on as if and than as certain more based Obviously, house squeeze probably -- itself. far increased is our of builders it price know. up trying with -- margin they continue think our lot I I some prices will Well, I margins of the ability the -- and manage I to can

market We not -- get to lots. price. our a any we don’t invested way do where we’re we’re on kind As balance our between a really to of do and But pricing what try number house the true-up it the is understand our focused percentage area. best sense maximizing velocity the not pricing. far That’s an we of dollars. based metrics, have as is of project-by-project And in really to hitting that pricing on trying the returns that on

Alex Barron

been builders concrete. ask various have Got and I on you can materials, you mentioned, issues, I think, supply chain it. I mentioned heard If facing one as another material

country? So I just was experiencing it across is in so, us a market are pretty concrete? curious, you the one if guys of or if shortages you it And could is give sense whether widespread

Dan Bartok

in concrete they is places, It -- And that certain per you’re we’re is allowed allocating day But, markets only delays location. widespread. we a only only are various out It really in couple we’re concrete it’s are is, on. seeing as and again, in seeing much basically things so that where certain some isolated jobs. to not their allocations,

get a that some lot the we’re of more pipe fittings. shortage that. seeing, of is because in and India of that a fitting be able thing of on those much and with sections That of seems PVC we’re understanding the other but have is to closed down together pipe put COVID that the factories there My The is India to delays again, either pretty been in manufactured issues the them others. that them inventory But being only again, fittings operating have marginally, in we’re things them some least cases, through. job those as of been a in we things more site. contractors delays learn But on still our order for or than earlier get somewhat from of the had in to getting some getting process. which able shortage we’ve suppliers to isolated, at we’re But, created trying. some that has We pretty pipe,

buy of only Some of to job. your them outfit kind

they but widespread, that are we’re seeing. isn’t it things So that

Alex Barron

much. you Thank very

Operator

any like questions would for further to I floor Thank Bartok you. There the no at over are comments. Dan back to time. turn this closing

Dan Bartok

We forward you, our operations together Thanks We and team growing to on results. on November It Paul. was look quarter with a forward speaking the the results call improving Forestar to Thank everyone’s Thank hard work. your over great working in and share continue again fourth years. you today. quarter. time focus to to everyone for our full to year and our look you. coming appreciate We the

Operator

today’s This conference. concludes

Thank your participation. a this your may disconnect time. for wonderful lines evening. You you at Have

Forestar (FOR) 21 Jul 212021 Q3 Earnings call transcript