DILUTED EPS OF $1.82, A RECORD FOR ANY FIRST
QUARTER, UP 32.8%
RECORD HOMEBUILDING GROSS MARGIN OF 33.4%,
UP 580 BASIS POINTS
NET NEW HOME ORDERS OF 1,071, FLAT YOY AND
UP 58% SEQUENTIALLY
BACKLOG OF $725 MILLION, UP 31.8%
YOY
DEBT TO TOTAL CAPITAL OF 18.3%; NET DEBT TO
TOTAL CAPITAL OF 8.2%
Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or
the “Company”) today reported record results for its first quarter
ended March 31, 2024.
“Green Brick kicked off 2024 with excellent first quarter
results highlighted by diluted earnings per share of $1.82, a
record for any first quarter and an increase of 32.8%
year-over-year. I am extremely proud of our teams being able to
deliver consistently outstanding performance and results. During
the first quarter, we delivered 821 homes, generating $443.1
million in home closings revenue,” said Jim Brickman, CEO and
Co-Founder. “Our advantages in infill and infill-adjacent locations
and self-development strategy produced a record homebuilding gross
margin of 33.4%, which was the highest amongst our public
homebuilding peers. More importantly, our accomplishments were
achieved with a balance sheet that is stronger than ever. With
record earnings and strong operating cash flows, we continued to
invest in future growth while we decreased our
debt-to-total-capital ratio by 550 basis points year-over-year to
18.3% at the end of the quarter and lowered our
net-debt-to-total-capital ratio to 8.2%.”
“We achieved the second highest quarterly sales orders in
company history at 1,071 net orders, just shy of the Covid-fueled
1,082 orders in the first quarter of 2021. Our absorption rate per
average active selling community remained robust at 11.4 per
quarter, or 3.8 per month, despite higher interest rates. Moreover,
our net new home orders increased nearly 58% sequentially from the
fourth quarter of 2023 due to strong demand within our markets. We
were also able to reduce overall average incentive rates from 5.6%
of sales price in 4Q23 to 3.8% in March 2024. Our cancellation rate
dropped to 4.1%, the lowest of other public homebuilders in the
quarter and the lowest in company history. Based on our strong
sales performance, our backlog grew 30.7% sequentially to $725
million. Notably, our ending community count grew 24.1%
year-over-year to 98. Additionally, we continued to grow starts as
we started 997 homes in 1Q24, averaging over 940 starts during the
last three quarters. With a mean companywide cycle time of 5.5
months for homes completed in the quarter, we improved our
operations in terms of both scale and efficiency,” concluded Mr.
Brickman.
Results for the Quarter Ended March 31, 2024:
(Dollars in thousands, except per share
data)
Three Months Ended March
31,
2024
2023
%
New homes delivered
821
761
7.9
%
Total revenues
$
447,338
$
452,061
(1.0
)%
Total cost of revenues
299,081
327,455
(8.7
)%
Total gross profit
$
148,257
$
124,606
19.0
%
Income before income taxes
$
115,633
$
87,172
32.6
%
Net income attributable to Green Brick
Partners, Inc.
$
83,301
$
64,180
29.8
%
Diluted net income attributable to Green
Brick Partners, Inc. per common share
$
1.82
$
1.37
32.8
%
Residential units revenue
$
443,284
$
450,362
(1.6
)%
Average sales price of homes delivered
$
539.7
$
590.6
(8.6
)%
Homebuilding gross margin percentage
33.4
%
27.6
%
580 bps
Backlog
$
725,489
$
550,593
31.8
%
Homes under construction
2,233
1,759
26.9
%
Earnings Conference Call:
We will host our earnings conference call to discuss our first
quarter ended March 31, 2024 at 12:00 p.m. Eastern Time on
Thursday, May 2, 2024. The call can be accessed by dialing
1-888-660-6353 for domestic participants or 1-929-203-2106 for
international participants and should reference meeting number
3162560. Participants may also join the call via webcast at:
https://events.q4inc.com/attendee/341898024
A telephone replay of the call will be available through June 1,
2024. To access the telephone replay, the domestic dial-in number
is 1-800-770-2030, the international dial-in number is
1-609-800-9909 and the access code is 3162560, or by using the link
at investors.greenbrickpartners.com.
GREEN BRICK PARTNERS,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share data)
(Unaudited)
Three Months Ended March
31,
2024
2023
Residential units revenue
$
443,284
$
450,362
Land and lots revenue
4,054
1,699
Total revenues
447,338
452,061
Cost of residential units
295,313
326,124
Cost of land and lots
3,768
1,331
Total cost of revenues
299,081
327,455
Total gross profit
148,257
124,606
Selling, general and administrative
expenses
(50,570
)
(45,945
)
Equity in income of unconsolidated
entities
2,592
4,221
Other income, net
15,354
4,290
Income before income taxes
115,633
87,172
Income tax expense
24,842
19,031
Net income
90,791
68,141
Less: Net income attributable to
noncontrolling interests
7,490
3,961
Net income attributable to Green Brick
Partners, Inc.
$
83,301
$
64,180
Net income attributable to Green Brick
Partners, Inc. per common share:
Basic
$
1.84
$
1.38
Diluted
$
1.82
$
1.37
Weighted average common shares used in the
calculation of net income attributable to Green Brick Partners,
Inc. per common share:
Basic
44,942
45,945
Diluted
45,430
46,351
GREEN BRICK PARTNERS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
March 31, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
185,897
$
179,756
Restricted cash
24,611
19,703
Receivables
8,630
10,632
Inventory
1,655,494
1,533,223
Investments in unconsolidated entities
34,701
84,654
Right-of-use assets - operating leases
6,997
7,255
Property and equipment, net
6,826
7,054
Earnest money deposits
16,464
16,619
Deferred income tax assets, net
15,306
15,306
Intangible assets, net
345
367
Goodwill
680
680
Other assets
20,623
27,583
Total assets
$
1,976,574
$
1,902,832
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
$
53,330
$
54,321
Accrued expenses
114,218
96,457
Customer and builder deposits
54,120
43,148
Lease liabilities - operating leases
7,873
7,898
Borrowings on lines of credit, net
(2,260
)
(2,328
)
Senior unsecured notes, net
311,303
336,207
Notes payable
113
12,981
Total liabilities
538,697
548,684
Commitments and contingencies
Redeemable noncontrolling interest in
equity of consolidated subsidiary
38,186
36,135
Equity:
Green Brick Partners, Inc. stockholders’
equity
Preferred stock, $0.01 par value:
5,000,000 shares authorized; 2,000 issued and outstanding as of
March 31, 2024 and December 31, 2023, respectively
47,603
47,603
Common stock, $0.01 par value: 100,000,000
shares authorized; 45,096,392 issued and 45,025,151 outstanding as
of March 31, 2024 and 45,005,175 issued and outstanding as of
December 31, 2023, respectively
451
450
Treasury stock, at cost: 71,241 shares as
of March 31, 2024 and none as of December 31, 2023
(3,758
)
—
Additional paid-in capital
259,412
255,614
Retained earnings
1,079,619
997,037
Total Green Brick Partners, Inc.
stockholders’ equity
1,383,327
1,300,704
Noncontrolling interests
16,364
17,309
Total equity
1,399,691
1,318,013
Total liabilities and equity
$
1,976,574
$
1,902,832
GREEN BRICK PARTNERS,
INC.
SUPPLEMENTAL
INFORMATION
(Unaudited)
Residential Units Revenue and New Homes
Delivered
(dollars in thousands)
Three Months Ended March
31,
2024
2023
Change
%
Home closings revenue
$
443,094
$
449,430
$
(6,336
)
(1.4
)%
Mechanic’s lien contracts revenue
190
932
(742
)
(79.6
)%
Residential units revenue
$
443,284
$
450,362
$
(7,078
)
(1.6
)%
New homes delivered
821
761
60
7.9
%
Average sales price of homes delivered
$
539.7
$
590.6
$
(50.9
)
(8.6
)%
Land and Lots Revenue
(dollars in thousands)
Three Months Ended March
31,
2024
2023
Change
%
Lots revenue
$
4,054
$
1,699
$
2,355
138.6
%
Lots closed
63
18
45
250.0
%
Average sales price of lots closed
$
64.3
$
94.4
$
(30.1
)
(31.9
)%
New Home Orders and Backlog
(dollars in thousands)
Three Months Ended March
31,
2024
2023
Change
%
Net new home orders
1,071
1,067
4
0.4
%
Revenue from net new home orders
$
613,384
$
630,928
$
(17,544
)
(2.8
)%
Average selling price of net new home
orders
$
572.7
$
591.3
$
(18.6
)
(3.1
)%
Cancellation rate
4.1
%
6.2
%
(2.1
)%
(33.9
)%
Absorption rate per average active selling
community per quarter
11.4
13.3
(1.9
)
(14.3
)%
Average active selling communities
94
80
14
17.5
%
Active selling communities at end of
period
98
79
19
24.1
%
Backlog
$
725,489
$
550,593
$
174,896
31.8
%
Backlog units
1,020
843
177
21.0
%
Average sales price of backlog
$
711.3
$
653.1
$
58.2
8.9
%
GREEN BRICK PARTNERS,
INC.
SUPPLEMENTAL
INFORMATION
(Unaudited)
March 31, 2024
December 31, 2023
Central
Southeast
Total
Central
Southeast
Total
Lots
owned
Finished lots
3,408
952
4,360
4,014
964
4,978
Lots in communities under development
17,192
1,252
18,444
9,122
1,335
10,457
Land held for future development(1)
3,800
—
3,800
8,366
—
8,366
Total lots owned
24,400
2,204
26,604
21,502
2,299
23,801
Lots
controlled
Lots under third party option
contracts
1,183
—
1,183
1,169
—
1,169
Land under option for future acquisition
and development
110
430
540
1,710
460
2,170
Lots under option through unconsolidated
development joint ventures
2,157
302
2,459
1,210
331
1,541
Total lots controlled
3,450
732
4,182
4,089
791
4,880
Total lots owned and controlled (2)
27,850
2,936
30,786
25,591
3,090
28,681
Percentage of lots owned
87.6
%
75.1
%
86.4
%
84.0
%
74.4
%
83.0
%
___________________ (1)
Land held for future development consist
of raw land parcels where development activities have been
postponed due to market conditions or other factors.
(2)
Total lots excludes lots with homes under
construction.
The following table presents additional information on the lots
we owned as of March 31, 2024 and December 31, 2023.
March 31, 2024
December 31, 2023
Total lots owned(1)
26,604
23,801
Add certain lots included in Total Lots
Controlled
Land under option for future acquisition
and development
540
2,170
Lots under option through unconsolidated
development joint ventures
2,459
1,541
Total lots self-developed
29,603
27,512
Self-developed lots as a percentage of
total lots owned and controlled(1)
96.2
%
95.9
%
___________________ (1)
Total lots owned includes finished lot
purchases, which were less than 2.4% of total lots self-developed
as of December 31, 2023.
Non-GAAP Financial Measures
In this press release, we utilize certain financial measures
that are non-GAAP financial measures as defined by the Securities
and Exchange Commission. We present these measures because we
believe they and similar measures are useful to management and
investors in evaluating our operating performance and financing
structure. We also believe these measures facilitate the comparison
of our operating performance and financing structure with other
companies in our industry. Because these measures are not
calculated in accordance with U.S. Generally Accepted Accounting
Principles (“GAAP”), they may not be comparable to other similarly
titled measures of other companies and should not be considered in
isolation or as a substitute for, or superior to, financial
measures prepared in accordance with GAAP.
The following table represents the non-GAAP measure of adjusted
homebuilding gross margin for the three months ended March 31, 2024
and 2023 and reconciles these amounts to homebuilding gross margin,
the most directly comparable GAAP measure.
(Unaudited, in thousands):
Three Months Ended March
31,
2024
2023
Residential units revenue
$
443,284
$
450,362
Less: Mechanic’s lien contracts
revenue
(190
)
(932
)
Home closings revenue
$
443,094
$
449,430
Homebuilding gross margin
$
147,917
$
123,915
Homebuilding gross margin percentage
33.4
%
27.6
%
Homebuilding gross margin
147,917
123,915
Add back: Capitalized interest charged to
cost of revenues
2,684
3,626
Adjusted homebuilding gross margin
$
150,601
$
127,541
Adjusted homebuilding gross margin
percentage
34.0
%
28.4
%
Net debt to total capitalization is calculated as the total debt
less cash and cash equivalents, divided by the sum of total Green
Brick Partners, Inc. stockholders’ equity and total debt less cash
and cash equivalents. The closest GAAP financial measure to the net
debt to total capitalization ratio is the debt to total
capitalization ratio. The following table represents a
reconciliation of the net debt to total capitalization ratio as of
March 31, 2024.
Gross
Less: Cash and cash
equivalents
Net
Total debt, net of debt issuance costs
$
309,156
$
(185,897
)
$
123,259
Total Green Brick Partners, Inc.
stockholders’ equity
1,383,327
—
1,383,327
Total capitalization
$
1,692,483
$
(185,897
)
$
1,506,586
Debt to total capitalization ratio
18.3
%
Net debt to total capitalization ratio
8.2
%
About Green Brick Partners, Inc.
Green Brick Partners, Inc (NYSE: GRBK), the third largest
homebuilder in Dallas-Fort Worth, is a diversified homebuilding and
land development company that operates in Texas, Georgia, and
Florida. Green Brick owns five subsidiary homebuilders in Texas (CB
JENI Homes, Normandy Homes, Southgate Homes, Trophy Signature
Homes, and a 90% interest in Centre Living Homes), as well as a
controlling interest in a homebuilder in Atlanta, Georgia (The
Providence Group) and an 80% interest in a homebuilder in Port St.
Lucie, Florida (GHO Homes). Green Brick also retains interests in
related financial services platforms, including Green Brick Title
and BHome Mortgage. Green Brick is engaged in all aspects of the
homebuilding process, including land acquisition and development,
entitlements, design, construction, marketing, and sales for its
residential neighborhoods and master-planned communities. For more
information about Green Brick Partners Inc.’s subsidiary
homebuilders, please visit
greenbrickpartners.com/brands-services/.
Forward-Looking and Cautionary Statements:
This press release and our earnings call contain
“forward-looking statements” within the meaning of the Private
Securities Litigation Act of 1995. These statements concern
expectations, beliefs, projections, plans and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts and typically include the
words “anticipate,” “believe,” “consider,” “estimate,” “expect,”
“feel,” “intend,” “plan,” “predict,” “seek,” “strategy,” “target,”
“will” or other words of similar meaning. Specifically, these
statements reflect our beliefs and expectations regarding (i) our
strategic advantages, including our focus on infill and
infill-adjacent locations, and the impact on our future results;
(ii) our positioning to capture future demand and succeed in the
current environment, including our ability to maintain
industry-leading performance and margins; (iii) our ability to
successfully implement our growth strategy, including our
expectations for expansion and growth of our Trophy brand within
DFW and into Austin and Houston, and ancillary business
opportunities, (iv) our expectations regarding trends in our
markets, such as demographic trends and demand for single-family
homes; (v) our strategies to maintain the strength of our balance
sheet and financial flexibility, and our positioning in the
industry; (vi) the advantages of our lot and land strategies and
locations, including the benefits to our returns, margins and
ability to scale; (vii) our expectations for our investments in
land, lots and development in 2024, and the impact on our growth;
(viii) our expected lot deliveries in 2024; (ix) the demand for
home ownership in the markets in which we operate and our ability
to capitalize on such demand, and (x) our ability to deliver
efficient and cost-effective growth, including our ability to
manage costs and cycle times. These forward-looking statements
reflect our current views about future events and involve estimates
and assumptions which may be affected by risks and uncertainties in
our business, as well as other external factors, which could cause
future results to materially differ from those expressed or implied
in any forward-looking statement. These risks include, but are not
limited to: (1) changes in macroeconomic conditions, including
increased interest rates and inflation that could adversely impact
demand for new homes or the ability of potential buyers to qualify;
(2) general economic conditions, seasonality, cyclicality and
competition in the homebuilding industry; (3) shortages, delays or
increased costs of raw materials and increased demand for
materials, or increases in other operating costs, including costs
related to labor, real estate taxes and insurance, which in each
case exceed our ability to increase prices; (4) a shortage of
qualified labor; (5) an inability to acquire land in our current
and new markets at anticipated prices or difficulty in obtaining
land-use entitlements; (6) our inability to successfully execute
our strategies, including an inability to grow our operations or
expand our Trophy brand; (7) our inability to implement new
strategic investments; (8) a failure to recruit, retain or develop
highly skilled and competent employees; (9) government regulation
risks in the industries or markets we operate in; (10) a lack of
availability or volatility of mortgage financing for homebuyers;
(11) severe weather events or natural disasters; (12) difficulty in
obtaining sufficient capital to fund our growth; (13) our ability
to meet our debt service obligations; (14) a decline in the value
of our inventories and resulting write-downs of the carrying value
of our real estate assets, and (15) changes in accounting standards
that adversely affect our reported earnings or financial condition.
Green Brick assumes no obligation to update any forward-looking
statements, which speak only as of the date they are made. For a
more detailed discussion of these and other risks and uncertainties
applicable to Green Brick please see our most recent Annual Report
on Form 10-K filed with the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501871930/en/
Benting Hu Vice President of Finance 469-573-6755
IR@greenbrickpartners.com
Green Brick Partners (NYSE:GRBK)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
Green Brick Partners (NYSE:GRBK)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
