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    Kenneth Zener • Unknown

    Kenneth Zener's questions to Installed Building Products Inc (IBP) leadership

    Kenneth Zener's questions to Installed Building Products Inc (IBP) leadership • Q2 2025

    Question

    Kenneth Zener asked for an explanation of the current strong gross margins relative to long-term targets, specifically how the mix shift toward private regional builders impacts the spread between gross margin and SG&A. He also requested more insight into the resilience of these less-visible private builders.

    Answer

    EVP, CFO & Director Michael Miller confirmed that regional builders yield higher gross margins but also have a higher cost-to-serve, reflected in SG&A. He noted that higher G&A in the quarter was driven by variable compensation tied to strong profitability. Miller explained that the resilience of regional builders is linked to geography; they have a higher share in the top half of the U.S., which is currently outperforming the bottom half. IBP's historical overweight position in these stronger markets is a key factor in its outperformance.

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    Kenneth Zener's questions to Installed Building Products Inc (IBP) leadership • Q1 2025

    Question

    Kenneth Zener of Seaport Research Partners asked about the supply and demand dynamics for private versus public builders and whether the Q1 SG&A headwind would persist through the year.

    Answer

    CFO Michael Miller stated that based on IBP's experience, regional and local builders have performed better than public builders over the past two quarters, and they are not seeing signs of excess inventory among these private builders. Regarding SG&A, he noted that of the $6 million year-over-year increase, $4.4 million was from acquisitions and start-ups. He emphasized the company's focus on optimizing G&A in absolute dollar terms, referencing the new $15 million cost reduction target.

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    Kenneth Zener's questions to Installed Building Products Inc (IBP) leadership • Q4 2024

    Question

    Kenneth Zener sought clarification on the 6-month market normalization timeline and asked for regional commentary on where single-family inventory is highest and how builders are reacting.

    Answer

    CFO Michael Miller clarified the 6-month timeline was specific to the normalization of multifamily units under construction, not single-family. For single-family, he noted current relative weakness in Texas and Florida and surprising strength in the Midwest and Northeast. He stated that inventory levels are highly localized to the subdivision level, making broad regional statements difficult.

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    Kenneth Zener's questions to Installed Building Products Inc (IBP) leadership • Q3 2024

    Question

    Kenneth Zener asked for a historical comparison to the 2016-2018 period of gross margin degradation and whether similar factors would be needed for a repeat. He also requested regional commentary and clarification on the production builder mix.

    Answer

    CFO Michael Miller distinguished the current 'tight' supply environment from the 'emergency' situation of 2016-2018, which was caused by a plant fire and coincided with Fed rate hikes in a different market. CEO Jeffrey Edwards provided regional color, noting the Southeast continues to outperform the Northeast and Central regions. CFO Michael Miller added that housing starts are currently a better demand indicator than orders due to the high percentage of spec homes being built.

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    Kenneth Zener's questions to LGI Homes Inc (LGIH) leadership

    Kenneth Zener's questions to LGI Homes Inc (LGIH) leadership • Q2 2025

    Question

    Kenneth Zener of Seaport Research Partners asked about sales pace, questioning if management would accept a monthly absorption rate below two homes per community. He also inquired about expectations for year-end inventory levels and the reason for the Q3 community count guidance being lower than previous full-year estimates.

    Answer

    Chairman & CEO Eric Lipar stated they would not expect the pace to fall below two and that Q2 should represent the low point for orders. CFO & Treasurer Charles Merdian added that they will start fewer homes than they close in Q3 to reduce completed inventory, targeting six to seven months of supply by year-end. Lipar clarified the community count adjustment is due to timing and a more cautious approach to new openings, not a structural change.

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    Kenneth Zener's questions to LGI Homes Inc (LGIH) leadership • Q1 2025

    Question

    Kenneth Zener questioned the guided sequential ramp-up in gross margin, given the weak Q1 results and market skepticism, and asked about the expected year-end inventory levels. He also requested clarification on the fixed-cost component within the cost of goods sold (COGS).

    Answer

    CEO Eric Lipar stated that gross margin is expected to ramp up through the year, driven primarily by higher sales volume. CFO Charles Merdian added that as absorptions accelerate, the company will see better operating leverage, which could improve margins by 30-50 basis points. Merdian projected year-end inventory would be similar to Q1 levels but with a more balanced mix of completed homes and work-in-progress.

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    Kenneth Zener's questions to LGI Homes Inc (LGIH) leadership • Q4 2024

    Question

    Kenneth Zener asked for a detailed breakdown of year-end inventory units and inquired about the effectiveness of mortgage buydown incentives, questioning if their efficiency has diminished due to consumer job confidence.

    Answer

    CFO Charles Merdian provided the inventory figures: just over 4,000 total units, with roughly 2,500 completed and 1,360 in progress. CEO Eric Lipar addressed incentive effectiveness, stating that underlying demand from employed buyers remains strong. He identified affordability, driven by prices and rates, as the primary headwind, not job concerns. Lipar explained that incentives are a crucial tool to lower monthly payments and qualify more buyers, with their use balanced on a market-by-market basis.

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    Kenneth Zener's questions to LGI Homes Inc (LGIH) leadership • Q3 2024

    Question

    Kenneth Zener asked about LGI Homes' return on equity goals to better understand the balance between its high-margin strategy and asset efficiency. He also inquired if the capitalized interest drag on gross margin would increase next year and requested a breakdown of land cost versus variable development costs as a percent of sales.

    Answer

    CEO Eric Lipar stated that while new projects are underwritten to a 20% ROE, recent heavy investments in land have temporarily suppressed returns, which he expects to increase as new communities come online. CFO Charles Merdian projected the capitalized interest impact on gross margin to be around 200 basis points in 2025. He also detailed that finished lot costs are roughly 20% of ASP, with raw land making up about 10% of that finished lot cost, and noted that most cost variability comes from infrastructure and development requirements.

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    Kenneth Zener's questions to TopBuild Corp (BLD) leadership

    Kenneth Zener's questions to TopBuild Corp (BLD) leadership • Q2 2025

    Question

    Kenneth Zener of Seaport Research Partners asked about the factors that could influence second-half decremental margins relative to guidance. He also inquired about performance with public versus private builders and where inventory issues are most acute.

    Answer

    CFO Rob Kunins identified further single-family volume deterioration as a potential headwind, while upside could come from strong C&I project timing or a conservative price-cost assumption. Regarding builders, Kunins said private and regional builders have held up relatively well, though CEO Robert Buck noted regionals are more pressured by inventory.

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    Kenneth Zener's questions to TopBuild Corp (BLD) leadership • Q1 2025

    Question

    Kenneth Zener of Seaport Research Partners requested a more detailed framing of the single-family market, including regional differences and the performance of public versus private builders.

    Answer

    President and CEO Robert Buck provided a comprehensive regional overview. He noted that markets like Florida and most of Texas are slower due to oversupply, with the exception of Dallas, which remains strong. In contrast, the Northeast, Midwest, and Southern California are showing positive momentum, along with the Carolinas. He also mentioned that custom builders are showing strength in certain markets like the Northeast.

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    Kenneth Zener's questions to TopBuild Corp (BLD) leadership • Q4 2024

    Question

    Kenneth Zener posed a high-level question about the timeline for the housing market to work through its high inventory of homes under construction. He also asked if the specific markets where TopBuild is experiencing margin pressure overlap with the regions where homebuilders are facing similar pressures.

    Answer

    CEO Robert Buck acknowledged the inventory issue and noted its larger impact on smaller regional builders, while larger builders use mortgage buydowns and adjust product mix to manage. CFO Rob Kuhns confirmed a general correlation between markets where TopBuild sees pressure and those with higher builder inventory, but stressed that conditions are highly localized and vary significantly even within states.

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    Kenneth Zener's questions to TopBuild Corp (BLD) leadership • Q3 2024

    Question

    Kenneth Zener of Seaport Research Partners asked for context on bidding activity and price pressure in 'choppy' markets, considering rising builder inventories and interest rates. He also sought perspective on whether public builders are continuing to gain significant share from private builders.

    Answer

    CEO Robert Buck attributed the choppiness to a 'calibration time period' as the market adjusts to rates and other uncertainties, with insights driven by their ERP system's bid data. CFO Rob Kuhns added that rate certainty is a key factor. Regarding builders, Buck noted that regional and custom builders, who couldn't offer rate buydowns like the publics, are positive about their prospects in a more stable rate environment.

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    Kenneth Zener's questions to Tri Pointe Homes Inc (Delaware) (TPH) leadership

    Kenneth Zener's questions to Tri Pointe Homes Inc (Delaware) (TPH) leadership • Q2 2025

    Question

    Kenneth Zener asked about the drivers of rising variable SG&A costs, expectations for year-end inventory levels, and a broader strategic question on how the industry can solve for lower demand due to affordability if demand is inelastic.

    Answer

    CFO Glenn Keeler clarified that higher SG&A as a percentage is a function of lower volume and reduced leverage on fixed costs, not increased spending. He also confirmed expectations for inventory levels to be down year-over-year. CEO Douglas Bauer addressed the strategic question by attributing inelasticity to buyer confidence, not affordability for their specific high-income buyer profile, and expressed long-term bullishness on housing fundamentals.

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    Kenneth Zener's questions to Tri Pointe Homes Inc (Delaware) (TPH) leadership • Q1 2025

    Question

    Kenneth Zener asked management to reconcile the national narrative of high new home inventory with TRI Pointe's own inventory units being down 23% year-over-year. He also asked about the 320 basis point interest drag on gross margins and when the benefits of recent debt paydown would become visible.

    Answer

    CEO Douglas Bauer and CFO Glenn Keeler addressed the inventory question by stating they focus on their local markets rather than national narratives, highlighting their ability to pivot quickly on starts to manage inventory. President & COO Tom Mitchell added their current inventory is at historically acceptable levels. Regarding interest expense, Keeler explained that the benefit from lower debt levels will become more apparent over the next 18 months as older inventory with capitalized interest is sold.

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    Kenneth Zener's questions to Tri Pointe Homes Inc (Delaware) (TPH) leadership • Q4 2024

    Question

    Kenneth Zener asked about the drivers for the expected gross margin decline from Q1 to the full-year 2025 guidance, questioning if regional mix was the cause. He also inquired about the expected trend for interest expense given the company's land development strategy.

    Answer

    CFO Glenn Keeler explained the margin progression is not due to regional mix but rather the mix of communities. The company is closing out some high-margin communities in Q1 while opening 65 new communities throughout the year that have a higher lot cost basis. Keeler also stated that interest expense is expected to trend down in 2025, benefiting from the recent payoff of senior notes and a larger inventory base for amortization.

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    Kenneth Zener's questions to Tri Pointe Homes Inc (Delaware) (TPH) leadership • Q3 2024

    Question

    Ken Zener requested a regional performance breakdown, asking for commentary on incentives, demand, and margins in the West, particularly California, compared to other regions.

    Answer

    CEO Douglas Bauer stated that West Coast markets, including Orange County, the Inland Empire, and Washington, have been very strong, with incentives in line with the company average. He noted that the West now represents slightly less than 50% of orders and deliveries. President & COO Tom Mitchell affirmed that the West continues to perform very well for the company.

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    Kenneth Zener's questions to Taylor Morrison Home Corp (TMHC) leadership

    Kenneth Zener's questions to Taylor Morrison Home Corp (TMHC) leadership • Q2 2025

    Question

    Kenneth Zener asked about the geographic origin of active adult buyers in Florida and requested a precise definition of the 71% spec sales figure, including how it compares to prior periods.

    Answer

    Chief Corporate Operations Officer Erik Heuser stated that the origin of Florida active adult buyers varies, with out-of-state buyers as high as 80% in Naples but closer to 50% in northern Florida. CFO Curt VanHyfte clarified the 71% figure was the percentage of spec sales in the quarter, up from 59% a year ago, and noted that specs sold and closed in-quarter was 28%.

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    Kenneth Zener's questions to Taylor Morrison Home Corp (TMHC) leadership • Q1 2025

    Question

    Kenneth Zener asked for the outlook on year-end units in production and community count, and how the company will manage its starts pace relative to orders.

    Answer

    Curt VanHyfte, CFO, stated that units in production are expected to moderate down from the current 8,032 by year-end due to cycle time improvements and a focus on clearing specs. He reiterated the company's core strategy of aligning new starts with the observed sales pace, while allowing for some flexibility during key selling seasons.

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    Kenneth Zener's questions to Taylor Morrison Home Corp (TMHC) leadership • Q3 2024

    Question

    Kenneth Zener requested clarification on several land banking metrics, including the percentage of closings from third-party lots, the specific target for lots under land banking structures, and the precise margin and return trade-offs involved.

    Answer

    Chief Corporate Operations Officer Erik Heuser clarified that about 20% of acquired deals are for finished lots and that 20-25% of their controlled lots are currently in land banking structures. He reiterated the financial trade-off: a gross margin impact of less than 2% for a more than 3x lift in IRR at the deal level.

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    Kenneth Zener's questions to Century Communities Inc (CCS) leadership

    Kenneth Zener's questions to Century Communities Inc (CCS) leadership • Q2 2025

    Question

    Kenneth Zener of Seaport Research Partners sought clarification on the drivers of order declines in the Mountain region, the relationship between future starts and sales, and the expected year-end inventory of units under construction.

    Answer

    CFO J. Scott Dixon explained the Mountain region's order numbers were impacted by the majority of new communities opening late in the quarter, specifically in June. CEO Robert Francescon confirmed that starts will 'more or less' track sales. Dixon added that the level of starts and year-end inventory will be market and demand-dependent.

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    Kenneth Zener's questions to Century Communities Inc (CCS) leadership • Q1 2025

    Question

    Kenneth Zener asked if the recent increase in incentives was concentrated in the Century Complete product line or if it was more specific to certain regions or price points. He also inquired about inventory management, asking if the company planned to destock specs or if starts would now align more closely with sales pace.

    Answer

    CFO John Dixon clarified that while mortgage incentives are used broadly, direct price reductions are more common in the Century brand, with Texas seeing slightly higher incentive levels. He noted the West region has been the strongest. On inventory, Dixon stated that the company had already moderated its starts pace in late 2024 and believes current inventory levels are appropriate, implying no major destocking is planned.

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    Kenneth Zener's questions to Century Communities Inc (CCS) leadership • Q3 2024

    Question

    Kenneth Zener asked for the Q3 home starts number, the strategy of starting more homes than orders, and for context on the 800 basis point incentive level, including its comparison to Q2 and the split between price reductions and mortgage buydowns.

    Answer

    CFO John Dixon and Co-CEO Robert Francescon provided the start number of 3,141 for the quarter. Mr. Dixon explained that as a spec builder, starting in excess of sales is a deliberate strategy to support future growth. He confirmed Q3 order incentives were approximately 800 basis points, up from 700 in Q2, with a consistent 50/50 split between mortgage and price incentives.

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    Kenneth Zener's questions to M/I Homes Inc (MHO) leadership

    Kenneth Zener's questions to M/I Homes Inc (MHO) leadership • Q2 2025

    Question

    Kenneth Zener from Seaport Research Partners asked for details on the gross margin spread between M/I Homes' Florida and Texas markets, whether the company is observing the high new home inventory levels suggested by Census data, and if M/I Homes participates in Census data requests.

    Answer

    Robert Schottenstein, Chairman, President & CEO, explained that while Texas margins have moderated from their peak a year ago, they remain very good and are currently slightly better than margins in Florida. Regarding inventory, he acknowledged that public builders are producing more spec homes, which contributes to inventory figures, but highlighted the competitive advantage of offering rate buy-downs on these homes. He also stated he was unaware if the company responds to Census data requests, noting he finds the data often dated and not always reliable.

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    Kenneth Zener's questions to M/I Homes Inc (MHO) leadership • Q1 2025

    Question

    Kenneth Zener asked about the company's outlook on order pace and how it influences their strategy for units under construction and spec starts throughout the year.

    Answer

    Executive Phillip Creek responded that the company is carefully managing its construction pipeline on a subdivision-by-subdivision basis to balance margins, returns, and sales pace. He noted that homes in the field are up slightly year-over-year to 4,800 from 4,500, reflecting a cautious approach to growth while ensuring they are positioned to meet demand.

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    Kenneth Zener's questions to M/I Homes Inc (MHO) leadership • Q4 2024

    Question

    Kenneth Zener asked for the number of homes in the field, the margin difference between intra-quarter spec sales and backlog homes, and whether the affordable 'Smart Series' product achieves better net pricing due to higher demand.

    Answer

    Executive Phillip Creek confirmed the homes-in-field count was 4,700. CEO Robert Schottenstein explained that while spec sale margins are typically 100-150 basis points lower than to-be-built homes across the company, the margin performance is highly market-dependent and in some cases, spec margins are equal to or higher. He clarified that Smart Series margins are not uniformly higher, but rather vary by the specific community's quality and location, similar to their move-up products.

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    Kenneth Zener's questions to M/I Homes Inc (MHO) leadership • Q3 2024

    Question

    Kenneth Zener inquired about the percentage of closings that were from intra-quarter orders, the margin difference between these homes and backlog, and the reasons behind M/I Homes' comparatively strong margins. He also asked for Texas's share of the business and whether mortgage incentives are pulling forward future demand.

    Answer

    Executive Phillip Creek stated that about 40% of closings came from spec homes sold and closed within the quarter, with no significant gross profit difference compared to other homes. CEO Robert Schottenstein attributed their strong margins to having well-located communities in competitive markets like Dallas, Raleigh, and Orlando. Schottenstein noted Texas's share is slightly higher than Florida's 20%. On incentives, Creek explained that they are a necessary tool in the current environment to meet existing demand, which remains strong due to household formation trends, rather than pulling demand forward.

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    Kenneth Zener's questions to Five Point Holdings LLC (FPH) leadership

    Kenneth Zener's questions to Five Point Holdings LLC (FPH) leadership • Q1 2025

    Question

    An analyst, identified as Kenneth, asked if potential deregulation in California, mentioned by the governor, could expedite development at Five Point's communities. He also inquired about any concrete rule changes and the timeline for disclosing CapEx plans for the San Francisco project.

    Answer

    Daniel Hedigan, an executive, confirmed that any effort to expedite the regulatory process in California would be beneficial for housing delivery but stated that no concrete changes have been implemented yet, although legislative activity is being monitored. He added that guidance on San Francisco's CapEx plans would likely be provided towards the end of the year or early next year.

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    Kenneth Zener's questions to DR Horton Inc (DHI) leadership

    Kenneth Zener's questions to DR Horton Inc (DHI) leadership • Q2 2025

    Question

    Kenneth Zener of Seaport Research Partners asked for details on outside commissions within gross margin and the company's conceptual floor for pace versus price. He also asked if inventory units would be down year-over-year in Q4.

    Answer

    Executive Jessica Hansen clarified that realtor commissions impact gross margin by about 270 basis points. EVP and CFO Bill Wheat reiterated that pace and margin are balanced at the community level to maximize returns. EVP and COO Michael Murray projected that fiscal year-end inventory units would be roughly flat year-over-year and that the company expects to improve its inventory turns.

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    Kenneth Zener's questions to DR Horton Inc (DHI) leadership • Q1 2025

    Question

    Kenneth Zener of Seaport Research Partners asked about the margin spread between homes closed from backlog versus spec homes sold within the quarter. He also inquired why D.R. Horton's regional margins show less dispersion than peers.

    Answer

    COO Michael Murray acknowledged that homes sold prior to the quarter in a lower interest rate environment would have a higher margin but did not provide a specific spread. Regarding regional margins, Murray suggested that the aggregation of many markets within each region tends to blend out specific market differences. CFO Bill Wheat added that the consistent focus on maximizing returns at the community level contributes to the balanced results across regions.

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    Kenneth Zener's questions to Lennar Corp (LEN) leadership

    Kenneth Zener's questions to Lennar Corp (LEN) leadership • Q1 2025

    Question

    Kenneth Zener asked for clarification on the cash flow implications of treating land as a variable cost and inquired about the margin spread between backlog and new orders in Q1 and Q2.

    Answer

    CFO Diane Bessette and Executive Stuart Miller explained that while land is not a simple variable cost, the efficiencies gained from maintaining production—such as direct cost reductions and overhead absorption—are critical. Co-CEO and President Jonathan Jaffe added that the decision to build is effectively made at the time of land underwriting. Regarding margins, Bessette stated that for Q2, the margin on homes in backlog and expected intra-quarter sales are both 'pretty close' to the 18% guidance.

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