Forestar Group Inc. Files Q3 2024 10-Q

TL;DR

Forestar Group Inc. 10-Q filed: Q3 2024 financials out, check assets & liabilities.

AI Summary

Forestar Group Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial performance and position, with key figures related to its real estate operations. The filing provides details on assets, liabilities, and equity as of June 30, 2024, and comparative periods.

Why It Matters

This filing provides investors with the latest financial snapshot of Forestar Group Inc., crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — As a real estate company, Forestar Group Inc. is subject to market fluctuations, interest rate changes, and economic downturns that can impact its financial performance and asset values.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 2023-09-30 — Previous Fiscal Year End (Provides a comparative point to the prior fiscal year-end for balance sheet items.)
• 2024-07-22 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Forestar Group Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240722 (date) — Filing date
• 2221 E. LAMAR BLVD. SUITE 790 ARLINGTON TX 76006 (address) — Company's business and mailing address

FAQ

Key Financial Figures

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

Filing Documents

• for-20240630.htm (10-Q) — 712KB
• a6302024exhibit311.htm (EX-31.1) — 10KB
• a6302024exhibit312.htm (EX-31.2) — 10KB
• a6302024exhibit321.htm (EX-32.1) — 3KB
• a6302024exhibit322.htm (EX-32.2) — 3KB
• for-20240630_g1.jpg (GRAPHIC) — 19KB
• 0001406587-24-000085.txt ( ) — 4197KB
• for-20240630.xsd (EX-101.SCH) — 26KB
• for-20240630_cal.xml (EX-101.CAL) — 29KB
• for-20240630_def.xml (EX-101.DEF) — 136KB
• for-20240630_lab.xml (EX-101.LAB) — 400KB
• for-20240630_pre.xml (EX-101.PRE) — 272KB
• for-20240630_htm.xml (XML) — 498KB

— 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) June 30, 2024 September 30, 2023 (In millions, except share data) ASSETS Cash and cash equivalents $ 359.2 $ 616.0 Real estate 2,238.7 1,790.3 Investment in unconsolidated ventures 0.3 0.5 Property and equipment, net 6.5 5.9 Other assets 70.3 58.0 Total assets $ 2,675.0 $ 2,470.7 LIABILITIES Accounts payable $ 70.9 $ 68.4 Accrued development costs 112.5 104.1 Earnest money on sales contracts 163.8 121.4 Deferred tax liability, net 52.8 50.7 Accrued expenses and other liabilities 56.0 61.2 Debt 706.1 695.0 Total liabilities 1,162.1 1,100.8 Commitments and contingencies (Note 11) EQUITY Common stock, par value $ 1.00 per share, 200,000,000 authorized shares, 50,607,995 and 49,903,713 shares issued and outstanding at June 30, 2024 and September 30, 2023, respectively 50.6 49.9 Additional paid-in capital 664.6 644.2 Retained earnings 796.7 674.8 Stockholders' equity 1,511.9 1,368.9 Noncontrolling interests 1.0 1.0 Total equity 1,512.9 1,369.9 Total liabilities and equity $ 2,675.0 $ 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 June 30, Nine Months Ended June 30, 2024 2023 2024 2023 (In millions, except per share amounts) Revenues $ 318.4 $ 368.9 $ 958.0 $ 887.1 Cost of sales 246.9 283.9 730.6 698.7 Selling, general and administrative expense 29.3 26.4 86.5 71.3 Gain on sale of assets ( 5.0 ) — ( 5.0 ) ( 1.6 ) Interest and other income ( 4.4 ) ( 3.8 ) ( 15.7 ) ( 7.5 ) Income before income taxes 51.6 62.4 161.6 126.2 Income tax expense 12.9 15.6 39.8 31.7 Net income $ 38.7 $ 46.8 $ 121.8 $ 94.5 Basic net income per common share $ 0.76 $ 0.94 $ 2.42 $ 1.89 Weighted average number of common shares 50.8 50.1 50.3 50.0 Diluted net income per common share $ 0.76 $ 0.93 $ 2.40 $ 1.89 Adjusted weight

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