So it probably won’t move much. But that’s where it is right now.
Mike Dahl: Got it. Yes, that helps. So I was kind of curious about whether there was any impact from forwards in there that maybe just delayed some of the impact on kind of going back above 70% but it doesn’t sound like that’s the case which again is encouraging that you’re able to dial back further in Feb. I guess just segueing since you brought up the point on what your stats look like for TPC. Can you — now that, that’s wholly owned. Can you help us level set on the — what we should be thinking about for total contribution from finance operations this year and how that compared to kind of — I think you still had finance profits, you had some other income. So just — if there’s kind of an apples-to-apples comparison, we should be thinking about ’24 versus ’23?
Glenn Keeler: Sure, Mike, this is Glenn. So under our old model when we were a joint venture, we got 65% of the economics of those transactions. So just assuming we’re going to get 100% of the economics going forward is probably a good place to start. I think longer term, as we get more efficient in that business, we could probably even draw more economics from our financing — financial services, mortgage companies. And we’re also continuing to look at other ancillary businesses to add to that financial services area as well.
Operator: Our next question comes from the line of Alex Barrón with Housing Research Center.
Alex Barrón: Great job for the quarter and the year. My questions are around your geographic expansion into Utah and you mentioned Florida, I was just wondering if you guys can help us on timing of when we would see first orders and first deliveries in those 2 respective markets roughly.
Douglas Bauer: Yes, Alex, it’s Doug. We’re expecting deliveries in Utah by the end of ’25 and I would expect deliveries from the Florida and coastal markets in ’26.
Alex Barrón: Got it. And then as far as your margin guidance, it looks like it’s going to trend lower in the back half of the year versus the first quarter. Is that because you guys increased incentives recently? Or you just — geographic mix that’s kind of trending you in that direction?
Douglas Bauer: Can you repeat that question?
Alex Barrón: Yes. Your guidance for the margins, the gross margins said that you expect 22% to 23% in the first quarter and then 21.5% to 22.5% for the full year. So I’m trying to understand what’s causing that trend? Is it that you increased your incentives recently or it’s just the geographic shift? Or is it rising land cost? Or what’s driving that?
Glenn Keeler: Yes, it’s mainly just land vintage closing out of some higher-margin older communities in the first part of the year. And then you’re opening, like we said, 65-ish new communities this year that are a newer land vintage. So it’s — some of that is just the mix of that. But like we said earlier, it will all depend on how demand. If demand continues the way it’s going, right now, you could see some upside to margin as the year goes forward.
Alex Barrón: Okay. And then if I could ask one more. I think I heard Doug say 60% growth in Texas over 2 years and 30% in Carolinas. Were you guys referencing deliveries versus deliveries in 2023 versus orders?
Glenn Keeler: That was correct; deliveries.
Douglas Bauer: Deliveries, yes.
Glenn Keeler: ’23 — versus ’23 in the next 2 years.
Operator: There are no further questions in the queue. I’d like to hand the call back to Doug Bauer for closing remarks.
Douglas Bauer: Well, I’d like to thank everyone for joining us today and we look forward to chatting with all of you next quarter. Have a great week. Thank you.
Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.
