For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q: Can you talk about your absorption rates and strategy for improvement? A: John Micenko, President: We aim for absorption rates in the high threes to low fours. We focus on slower-moving communities, assessing product, price, and competitive landscape. It's a tactical and cultural shift, emphasizing pace over price and encouraging sales efforts.

Q: The lot count under control seems down. Can you discuss this and the current land and acquisition market? A: John Micenko, President: We are tightening our land acquisition criteria, focusing on margin and absorption pace. The land market remains competitive, with rising costs. The acquisition market is robust, but we are selective, focusing on deals that align with our strategy.

Q: Where are you in integrating recent acquisitions, and does your strategy change with interest rates coming down? A: John Micenko, President: Integration varies by acquisition, with some nearly complete and others ongoing. Our strategy remains focused on affordability, targeting first-time and move-up buyers. We adjust incentives based on market conditions, offering rate buy-downs and closing cost options.

Q: How does the current land environment affect your operations? A: John Micenko, President: Land remains a critical and competitive area. We are cautious with acquisitions, ensuring they meet our standards. We have sufficient lots for 2025 and are working on securing more for 2026, focusing on quality and strategic fit.

Q: How are you managing costs and margins with current market conditions? A: John Micenko, President: We see improvements in input costs, particularly lumber, and are renegotiating trade terms. This should enhance margins for homes started in July and August. We also adjust incentives based on buyer preferences, balancing rate buy-downs and closing costs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.