Operator: Good morning. My name is Sara. And I'll be your conference operator today. I would like to welcome everyone to the KB Home's 2013 First Quarter Earnings Conference Call. At this time all participants will be in a listen-only mode. Today's conference is being recorded and a live webcast is available on KB Home's website at kbhome.com.
The Company will make a presentation and then open the line for questions. We ask that you please limit yourself to one question and one follow-up.
KB Home's discussion today may include forward-looking statements that reflect management's current views and expectations of market conditions, future events and the Company's business performance. These statements are not guarantees of future results and the Company does not undertake any obligation to update them. Due to a number of factors outside of its control, including those identified in its SEC filings, the Company's actual results could be materially different from those expressed and/or implied by the forward-looking statements.
A reconciliation of non-GAAP measures referenced during today's discussion to their most directly comparable GAAP measures can be found in the Company's earnings release issued earlier today and/or on the Investor Relations page of the Company's website.
I will now turn the conference over to the Company's Chief Executive Officer Mr. Jeff Mezger. Sir, you may begin.
Jeffrey T. Mezger - President, CEO and Director: Thanks Sara and good morning, everyone. Thank you for joining us today for a review of our first quarter financial results. With me this morning are Jeff Kaminski, our Executive Vice President and Chief Financial Officer; and Bill Hollinger, our Senior Vice President and Chief Accounting Officer. I will start today's call with an overview of our first quarter results followed by a more detailed discussion on many of the operational drivers behind our performance and then provide an outline of the key priorities we have set for 2013.
Next, Jeff Kaminski will take you through the details of our financial results after which I will conclude our prepared comments with a few remarks before we once again open up the call to your questions.
Over the past few years, we have worked diligently to reposition our communities with a focus on two primary components; we prioritized our investments in select, more dynamic housing markets, and optimized our product designs and model offerings for today's consumer preferences with the expectation that these two moves would accelerate our progress towards our goal of sustained profitability.
Our hard work on all fronts is now paying off and we are pleased that our first quarter results reflect meaningful improvement in our financial and operational metrics. While we recognize we still have work to do in achieving normalized profit levels, our actions have now positioned us for profitability and growth.
Some of the highlights of the quarter that illustrate our progress include; our revenues increased 59% year-over-year in the first quarter and we substantially reduced our net loss. We improved our operating margin by 12.5 percentage points and reported operating income for the third straight quarter. Our net order value increased by 83%. The year-over-year increase in our backlog value of 53% has us well-positioned with future revenues of more than $700 million in backlog at the end of February.