for-20200407
0001406587FALSE00014065872020-04-072020-04-07


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________
FORM 8-K
 ______________________________
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 7, 2020
 ______________________________
Forestar Group Inc.
(Exact name of registrant as specified in its charter)

Delaware001-3366226-1336998
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
2221 E. Lamar Blvd., Suite 790, Arlington, Texas 76006
(Address of principal executive offices)
(817769-1860
(Registrant’s telephone number, including area code)
 ______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value :schemaRef xlink:type="simple" xlink:href="for-20200407.xsd">00014065872020-04-072020-04-07


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________
FORM 8-K
 ______________________________
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 7, 2020
 ______________________________
Forestar Group Inc.
(Exact name of registrant as specified in its charter)

Delaware001-3366226-1336998
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
2221 E. Lamar Blvd., Suite 790, Arlington, Texas 76006
(Address of principal executive offices)
(817769-1860
(Registrant’s telephone number, including area code)
 ______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $1.00 per shareFORNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02. Results of Operations and Financial Condition.

On April 7, 2020, Forestar Group Inc. issued a press release announcing select preliminary results for its second quarter ended March 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference in its entirety into this Item 2.02.

The information furnished in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits  
99.1*  
FORNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02. Results of Operations and Financial Condition.

On April 7, 2020, Forestar Group Inc. issued a press release announcing select preliminary results for its second quarter ended March 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference in its entirety into this Item 2.02.

The information furnished in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits  
99.1*  
104**  Cover Page Interactive Data File (embedded within the Inline XBRL document contained in Exhibit 101). 
 Filed or furnished herewith.  
**  Submitted electronically herewith.  





SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Forestar Group Inc.
Date:April 7, 2020By:
/S/ DANIEL C. BARTOK
Daniel C. Bartok
Chief Executive Officer



Document

Exhibit 99.1

FORESTAR REPORTS SELECT PRELIMINARY FISCAL 2020 SECOND QUARTER RESULTS

Company to Release Full 2020 Second Quarter Results on April 23, 2020

ARLINGTON, Texas (Business Wire) - April 7, 2020

Forestar Group Inc. ("Forestar") (NYSE: FOR), a leading national residential lot developer, today reported select preliminary results for its second quarter and six months ended March 31, 2020.
Revenues for the second quarter of fiscal 2020 increased 144% to $159.1 million from $65.3 million in the same quarter of fiscal 2019. Residential lots sold in the quarter increased 256% to 1,951 lots compared to 548 lots in the same quarter of fiscal 2019.
Revenues for the six months ended March 31, 2020 increased 292% to $406.4 million from $103.8 million in the same period of fiscal 2019. Residential lots sold in the first six months of fiscal 2020 increased 310% to 4,373 lots compared to 1,066 lots sold in the same period of fiscal 2019.
The Company ended the second quarter with $438.2 million of unrestricted cash and $349.0 million of available borrowing capacity on its senior unsecured revolving credit facility for total liquidity of $787.2 million. Debt at March 31, 2020 totaled $640.1 million, with no senior note maturities until fiscal 2024.
COVID-19
Economic fundamentals remained solid in the housing and residential lot development markets throughout most of the second quarter of fiscal 2020. During the latter part of March and into April, the impacts of the COVID-19 pandemic (COVID-19) and the related widespread reductions in economic activity began to adversely affect the Company’s business operations and the demand for its residential lots. The Company has been informed by D.R. Horton and other homebuilders that they are slowing their purchases of lots to adjust to lower levels of home sales orders, compared to the period leading up to the pandemic.

The Company's results of operations are affected by economic conditions that impact the housing and land development markets. There is uncertainty regarding the extent and timing of disruption that COVID-19 and related government directives, actions and economic relief efforts will have on the U.S. economy, capital markets and demand for the Company's lots. The extent to which COVID-19 impacts Forestar's operational and financial performance will depend on future developments, including the duration and spread of COVID-19 and the impact on the Company's customers, trade partners and employees, all of which are highly uncertain and cannot be predicted.

In almost all municipalities across the U.S. where social distancing and other restrictions have been issued, residential construction has been designated an essential business as part of critical infrastructure. The Company has continued its lot development operations in those markets where allowed in order to supply D.R. Horton and other homebuilders finished lots for residential construction. The Company has implemented operational protocols to comply with social distancing and other health and safety standards as required by federal, state and local government agencies, taking into consideration guidelines of the Centers for Disease Control and Prevention and other public health authorities.

The Company believes it is well positioned to operate in this uncertain environment because of its relationship with D.R. Horton, its low net leverage and strong liquidity position. During this period of uncertainty, the Company intends to limit its land acquisition spending and carefully monitor lot development spending based on its current and anticipated future sales pace.

Guidance
Due to the current uncertainty in the U.S. economy and the Company's business operations resulting from COVID-19, the Company has withdrawn its previously issued guidance for both fiscal 2020 and 2021.

Conference Call and Webcast Details
The Company will release full financial results for its second quarter and six months ended March 31, 2020 on April 23, 2020 after the market close. The Company will host a conference call the same day at 5:00 p.m. Eastern Time. The dial-in number is 877-407-9205, and the call will also be webcast from the Company’s website at investor.forestar.com.





About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 50 markets and 21 states at March 31, 2020 and is a majority-owned subsidiary of D.R. Horton, the largest homebuilder by volume in the United States since 2002.

Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include all commentary in the COVID-19 section.

Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the impact of COVID-19 on the economy; the effect of D.R. Horton's controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our vendors and customers; demand for new housing, which can be affected by a number of factors including the availability of mortgage credit, job growth and fluctuations in interest rates; competitive actions by other companies; accuracy of estimates and other assumptions related to investment in and development of real estate, the expected timing and pricing of land and lot sales and related cost of real estate sales; our ability to comply with our debt covenants, restrictions and limitations; our ability to hire and retain key personnel; changes in governmental policies, laws or regulations and actions or restrictions of regulatory agencies; general economic, market or business conditions where our real estate activities are concentrated; our ability to achieve our strategic initiatives; our ability to obtain future entitlement and development approvals; our ability to obtain or the availability of surety bonds to secure our performance related to construction and development activities and the pricing of bonds; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; the levels of resale housing inventory in our projects and the regions in which they are located; fluctuations in costs and expenses, including impacts from shortages in materials or labor; the opportunities (or lack thereof) that may be presented to us and that we may pursue; the strength of our information technology systems and the risk of cybersecurity breaches; and the conditions of the capital markets and our ability to raise capital to fund expected growth. Additional information about issues that could lead to material changes in performance is contained in Forestar's annual report on Form 10-K and subsequent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission.


Contact
Investor Relations:
Jessica Hansen, 817-390-8195
InvestorRelations@forestar.com




FORESTAR GROUP INC.
Preliminary Revenues and Residential Lots Sold
(Unaudited)

REVENUES
 Three Months Ended March 31,Six Months Ended March 31,
 2020201920202019
 (In millions)
Residential lot sales:
Development projects
$98.6  $34.5  $216.2  $70.6  
Lot banking projects
57.0  12.7  157.9  14.9  
   Change in contract liabilities0.8  2.1  (0.6) (1.5) 
156.4  49.3  373.5  84.0  
Residential tract sales—  —  30.0  —  
Commercial tract sales2.5  15.0  2.5  18.5  
Other0.2  1.0  0.4  1.3  
$159.1  $65.3  $406.4  $103.8  

RESIDENTIAL LOTS SOLD
Three Months Ended March 31,Six Months Ended March 31,
2020201920202019
Development projects1,272  412  2,678  874  
Lot banking projects679  136  1,695  192  
1,951  548  4,373  1,066  
Average sales price per lot (1)
$79,738  $86,177  $85,563  $80,243  
_____________
(1)Excludes any impact from change in contract liabilities.

v3.20.1
Cover
Apr. 07, 2020
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Apr. 07, 2020
Entity Registrant Name Forestar Group Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-33662
Entity Tax Identification Number 26-1336998
Entity Address, Address Line One 2221 E. Lamar Blvd.
Entity Address, Address Line Two Suite 790
Entity Address, City or Town Arlington
Entity Address, State or Province TX
Entity Address, Postal Zip Code 76006
City Area Code 817
Local Phone Number 769-1860
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $1.00 per share
Trading Symbol FOR
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001406587
Amendment Flag false