Strategy

Our operating strategy is focused on leveraging our financial and competitive position to increase the returns on our inventory investments and generate strong profitability and cash flows.

This strategy includes the following initiatives:

  • Maintaining a strong cash balance and overall liquidity position and controlling our level of debt.
  • Allocating and actively managing our inventory investments across our operating markets to diversify our geographic risk and optimize returns.
  • Offering new home communities that appeal to a broad range of entry-level, move-up and luxury homebuyers based on consumer demand in each market.
  • Modifying product offerings, sales pace, home prices and sales incentives as necessary in each of our markets to meet consumer demand, align with finished lot supply and construction activity and optimize returns on inventory investments and cash flows.
  • Increasing the amount of land and finished lots controlled through option purchase contracts to mitigate the risk of land ownership.
  • Investing in land and land development and pursuing opportunistic acquisitions of homebuilding companies in desirable markets, while controlling the level of land and lots we own in each of our markets relative to the local new home demand.
  • Managing our inventory of homes under construction relative to demand in each of our markets, including starting construction on unsold homes to capture new home demand and actively controlling the number of unsold, completed homes in inventory.
  • Controlling the cost of goods purchased from both vendors and subcontractors.
  • Improving the efficiency of our land development, construction, sales and other key operational activities.
  • Controlling our selling, general and administrative (SG&A) expense infrastructure to match production levels.

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