Net new orders increased by 23% in units and 12% in dollars, signaling robust demand for new homes. This is attributed to a limited supply of existing homes and market adjustment to higher interest rates.

The company is increasing its lot optionality within its land pipeline for increased flexibility. This is achieved by controlling lots via land option agreements, which reduces financial risks associated with long-term land holdings.

The company is producing sufficient levels of spec inventory (houses without customer orders) to service buyers seeking to close within 30 to 90 days. This strategy aims to cater to buyers requiring immediate housing solutions.

Construction cycle times have shortened by approximately six weeks compared to the end of 2022, indicating improved operational efficiency. However, cycle times remain elevated versus historical norms due to ongoing material and labor availability challenges.

Management maintains a focus on shareholder returns through share buybacks and dividends. The company increased its dividends by 25% and continues to repurchase shares opportunistically.

Management has implemented cost reduction initiatives, adjusted construction pacing, and employed sales strategies to largely offset cost increases. This demonstrates proactive management in response to supply chain and labor challenges.

The filing acknowledges that ongoing volatility in interest rates may continue to negatively impact operations and financial results. This is a key risk factor for the homebuilding industry.

The document highlights that heightened labor and materials prices, resulting from increased demand and inflationary monetary policy, continue to impact operational costs. Supply chain disruptions also contribute to increased costs and potential delays.

The filing notes significant competition for suitable land, which could lead to increased land costs and limit the company's ability to develop new communities. This is a persistent risk factor for homebuilders.

The company's national market share is only approximately 4% of U.S. new home sales, highlighting the fragmented nature of the housing market and the presence of numerous competitors.

The company competes primarily on the basis of location, price, quality, reputation, design, community amenities, and customer experience. This underscores the importance of maintaining a strong brand and competitive offerings.

The company competes not only with other homebuilders but also with sales of existing homes and providers of rental housing, including apartment operators. This broad competitive landscape requires a diversified strategy.

SG&A as a percentage of home sale revenues decreased from 8.9% in 2022 to 8.4% in 2023. This improvement is primarily attributable to lower insurance costs due to favorable claims experience.

The company was able to largely offset the majority of cost increases through sales prices of homes, through a combination of cost reduction initiatives, construction pacing and sales strategies which took advantage of periods of strong consumer demand.

The company is focused on shortening production cycle times, which were approximately six weeks shorter at the end of 2023 compared to the end of 2022. This is a key area of focus for improving operational efficiency.

The company has made significant enhancements in its tools and business practices to adapt selling efforts to today's tech-enabled customers, including websites and virtual reality walkthroughs.

Energy efficiency represents an important source of value for new homes compared with existing homes and represents a key area of focus for home designs, including high-efficiency heating, ventilation, and air conditioning systems and insulation, low-emissivity windows, solar power in certain geographies, and other energy-efficient features.

Continuous improvement in our house construction process is a key area of focus. We seek to build superior quality homes while maintaining efficient construction operations by using standard materials and components from a variety of sources and by following industry and company-specific construction practices.

The company maintains a focus on shareholder return through share buybacks and dividends, including a 25% increase in dividends from $0.16 to $0.20 per share effective with the January 2024 dividend payment.

The company takes an opportunistic approach to repurchasing debt, indicating a proactive strategy to manage its capital structure and reduce debt obligations.

The company maintains ample liquidity, providing financial flexibility to navigate market volatility and pursue growth opportunities.

The company emphasizes energy efficiency in its home designs, including high-efficiency HVAC systems, insulation, and low-emissivity windows. This aligns with environmental sustainability goals.

The company's management teams are expected to exhibit and promote honest, ethical, and respectful conduct in the workplace. All employees must adhere to a code of ethical business conduct.

The company's key human capital management objectives are designed to attract, develop, and retain top industry talent that reflects the diversity of the communities in which it builds. Our commitment to the aforementioned goals is evidenced through our certification as a Great Place to Work® and operation of a national diversity council.

The demand for new homes declined beginning in mid-2022 as the Federal Reserve repeatedly increased benchmark interest rates in response to inflation, which, in turn, drove national mortgage and other interest rates higher and negatively impacted home affordability and consumer sentiment.

Although higher mortgage interest rates may persist for some time, the supply of both new and existing homes for sale remains limited, and demographics supporting housing demand remain favorable.

Although higher mortgage interest rates may persist for some time, the supply of both new and existing homes for sale remains limited, and demographics supporting housing demand remain favorable.