Forestar Group Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Forestar Group Inc. has filed its quarterly report (10-Q) for the period ending December 31, 2023.</b>

AI Summary

Forestar Group Inc. (FOR) filed a Quarterly Report (10-Q) with the SEC on January 24, 2024. Forestar Group Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the fiscal quarter of 2024 Q1. The company's fiscal year ends on September 30th. Forestar Group Inc. is incorporated in Delaware. The company's principal business address is in Arlington, Texas.

Why It Matters

For investors and stakeholders tracking Forestar Group Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for Forestar Group Inc. for the specified quarter. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential risks and opportunities.

Risk Assessment

Risk Level: low — Forestar Group Inc. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine report for publicly traded companies and does not inherently contain significant new risks.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Forestar Group Inc.'s performance and outlook.

Key Numbers

• 2023-12-31 — Reporting Period End Date (10-Q Filing)
• 2024-01-24 — Filing Date (10-Q Filing)
• 2023-09-30 — Fiscal Year End (Company Data)

Key Players & Entities

• Forestar Group Inc. (company) — Filer
• D.R. Horton Inc. (company) — Majority Shareholder

Forward-Looking Statements

• Forestar Group Inc. will maintain a stable asset base in the near term. (Forestar Group Inc.) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Forestar Group Inc. operates in the real estate sector, specifically focusing on land development and homebuilding activities.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the financial statements (balance sheet, income statement, cash flow) for the quarter ended December 31, 2023.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and future outlook.
3. Identify any new risk factors or changes in existing risks disclosed in the filing.

Key Dates

• 2023-12-31: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-01-24: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023, following the previous filing for the period ending September 30, 2023.

Key Financial Figures

• $1.00 — ich Registered Common Stock, par value $1.00 per share FOR New York Stock Exchange

Filing Documents

• for-20231231.htm (10-Q) — 528KB
• a23dec20danielbartoksepara.htm (EX-10.1) — 55KB
• a23dec20danielbartokconsul.htm (EX-10.2) — 39KB
• a12312023exhibit311.htm (EX-31.1) — 10KB
• a12312023exhibit312.htm (EX-31.2) — 10KB
• a12312023exhibit321.htm (EX-32.1) — 3KB
• a12312023exhibit322.htm (EX-32.2) — 3KB
• for-20231231_g1.jpg (GRAPHIC) — 19KB
• 0001406587-24-000008.txt (&nbsp;) — 3912KB
• for-20231231.xsd (EX-101.SCH) — 26KB
• for-20231231_cal.xml (EX-101.CAL) — 28KB
• for-20231231_def.xml (EX-101.DEF) — 158KB
• for-20231231_lab.xml (EX-101.LAB) — 437KB
• for-20231231_pre.xml (EX-101.PRE) — 284KB
• for-20231231_htm.xml (XML) — 365KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Total Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 25

Controls and Procedures

Item 4. Controls and Procedures 25

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 26

Other Information

Item 5. Other Information 26

Exhibits

Item 6. Exhibits 27 SIGNATURE 28 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FORESTAR GROUP INC. CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, 2023 September 30, 2023 (In millions, except share data) ASSETS Cash and cash equivalents $ 458.9 $ 616.0 Real estate 2,009.8 1,790.3 Investment in unconsolidated ventures 0.5 0.5 Property and equipment, net 5.8 5.9 Other assets 58.8 58.0 Total assets $ 2,533.8 $ 2,470.7 LIABILITIES Accounts payable $ 65.3 $ 68.4 Accrued development costs 99.9 104.1 Earnest money on sales contracts 140.9 121.4 Deferred tax liability, net 50.2 50.7 Accrued expenses and other liabilities 63.4 61.2 Debt 705.3 695.0 Total liabilities 1,125.0 1,100.8 Commitments and contingencies (Note 11) EQUITY Common stock, par value $ 1.00 per share, 200,000,000 authorized shares, 49,909,713 and 49,903,713 shares issued and outstanding at December 31, 2023 and September 30, 2023, respectively 49.9 49.9 Additional paid-in capital 644.9 644.2 Retained earnings 713.0 674.8 Stockholders' equity 1,407.8 1,368.9 Noncontrolling interests 1.0 1.0 Total equity 1,408.8 1,369.9 Total liabilities and equity $ 2,533.8 $ 2,470.7 See accompanying notes to consolidated financial statements. 3 Table of Contents FORESTAR GROUP INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, 2023 2022 (In millions, except per share amounts) Revenues $ 305.9 $ 216.7 Cost of sales 233.0 169.2 Selling, general and administrative expense 28.0 22.9 Gain on sale of assets — ( 1.6 ) Interest and other income ( 6.3 ) ( 1.7 ) Income before income taxes 51.2 27.9 Income tax expense 13.0 7.1 Net income $ 38.2 $ 20.8 Basic net income per common share $ 0.76 $ 0.42 Weighted average number of common shares 50.1 49.9 Diluted net income per common share $ 0.76 $ 0.42 Adjusted weighted average number of common shares 50.5 49.9 See accompanying notes to consolidated financial statements. 4 Table of Contents FORESTAR GROUP INC. CONSOLIDATED STATEM

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1 — Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and include the accounts of Forestar Group Inc. ("Forestar") and all of its 100% owned, majority-owned and controlled subsidiaries, which are collectively referred to as the Company unless the context otherwise requires. The Company accounts for its investment in other entities in which it has significant influence over operations and financial policies using the equity method. All intercompany accounts, transactions and balances have been eliminated in consolidation. Noncontrolling interests in consolidated pass-through entities are recognized before income taxes. Net income attributable to noncontrolling interests is zero for all periods presented in the Company's statements of operations. The transactions included in net income in the consolidated statements of operations are the same as those that would be presented in comprehensive income. Thus, the Company's net income equates to comprehensive income. In the opinion of management, these financial statements reflect all adjustments considered necessary to fairly state the results for the interim periods shown, including normal recurring accruals and other items. These financial statements, including the consolidated balance sheet as of September 30, 2023, which was derived from audited financial statements, do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's annual report on Form 10-K for the fiscal year ended September 30, 2023. In October 2017, Forestar became a majority-owned subsidiary of