The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst
: My first question is just following up on the cost side of things and inflation. I know you mentioned that you expect peak lumber to roll through
in the fiscal fourth quarter. But can you talk to when we should expect the deflation in lumber to start to come through? And how you're thinking
about inflation in other building product categories that could potentially somewhat offset that?
Question: Susan Marie Maklari - Goldman Sachs Group, Inc., Research Division - Analyst
: Okay. That's helpful. And then my follow-up question is around pricing. You guided to about $450,000 for the fourth quarter, which is up, I think,
about 9% or so versus last year. I know you mentioned in your comments that you're seeing a buyer with a higher FICO score. It sounds like, overall,
they're in better financial position. Can you just talk to how you're thinking about pricing, the ability to continue to get that in your various markets?
And anything that's kind of changing on the ground around the buyer's receptivity to pricing?
Question: Margaret Jane Wellborn - JPMorgan Chase & Co, Research Division - Analyst
: This is Maggie on for Mike. Following up on the last question. I mean, obviously, the buyers' credit profiles remain strong, and you're saying that
affordability hasn't really been an issue to this point. Have you seen any shift in kind of buyer preferences as a result of the recent price appreciation?
I think last quarter, you said that you hadn't really seen any buyers adjusting the size of the home, but I'm curious if there's any update there.
Question: Margaret Jane Wellborn - JPMorgan Chase & Co, Research Division - Analyst
: Got it. And maybe asking kind of an earlier question in a little bit different of a way. You talked about the share repurchase this quarter, and you
talked about kind of where you're comfortable going forward from a leverage perspective. But can you elaborate a little on the potential for share
repurchase to become a more regular tool that's used?
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