Record Home Closings Revenue of $547M, Up
20.4% YOY
Record Homebuilding Gross Margin of 34.5%,
Up 320 BPS YOY
Record Diluted EPS of $2.32, Up 42.3%
YOY
Net New Home Orders of 855, Up 4.0%
YOY
Debt to Total Capital of 17.7%; Net Debt to
Total Capital of 10.9%
Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or
the “Company”), today reported record results for its second
quarter ended June 30, 2024.
“Our business model continued to demonstrate its strength and
enabled us to deliver record results for any quarter. In the second
quarter of 2024, home closings revenue totaled $546.9 million, a
record that reflects growth of 20.4% year-over-year as we closed a
record 987 units, a 26.1% increase of closed homes year-over-year.
Importantly, we continued to excel at generating the highest
homebuilding gross margins in the industry. Our Q2 2024 record
gross margin of 34.5% was up 320 bps over Q2 2023. As a result,
diluted EPS increased 42% year-over-year to $2.32 per share,
another company record,” said Jim Brickman, CEO and Co-Founder.
“As we exited the spring selling season, demand remained healthy
throughout the second quarter. Net new orders grew 4.0%
year-over-year to 855 units with average incentives of 4.5%,”
continued Mr. Brickman. “Year-to-date, we have now sold 1,926
homes, delivered 1,808 homes and started 1,980 homes which
increased our backlog units by 15.5%. Thanks to the superior
markets in which we operate, Green Brick is poised to continue
capitalizing on what we believe are long-term secular demographic
shifts. This positioning is further strengthened by supply
shortages in our infill and infill adjacent submarkets due to the
‘golden handcuffs’ effect of low-rate mortgages. Approximately 80%
of our revenues for the first half of 2024 continued to come from
those infill and infill adjacent locations.”
Mr. Brickman added, “We have created a strong runway for growth
with our superior land and lot positions which we grew in the
second quarter by adding over 2,500 additional future home sites.
We remain committed to our land and self-development strategies
that have been instrumental to our success and one of our biggest
advantages. We believe that with disciplined underwriting, superior
locations, a strong balance sheet and desirable products, we can
carry land and lots on our balance sheet while still generating
industry leading shareholder returns. To that end, our return on
equity was 28.3% for the first half of 2024 on an annualized
basis.”
Mr. Brickman concluded, “Growth is not created equally. Our
success and earnings growth are possible despite having one of the
least leveraged balance sheets and one of the lowest costs of debt
among our small and mid-cap peers. At the end of the second
quarter, our net debt to total capital ratio was 10.9% and our
total debt to total capital ratio was only 17.7% with a weighted
average pay rate of 3.4%. In addition, we continue to focus on
creating value for shareholders, including by repurchasing
approximately 1.5% of our shares in the second quarter for $38.4
million dollars.”
Results for the Quarter Ended June 30, 2024:
(Dollars in thousands, except per share
data)
Three Months Ended June
30,
2024
2023
Change
New homes delivered
987
783
26.1
%
Total revenues
$
560,631
$
456,289
22.9
%
Total cost of revenues
370,965
313,354
18.4
%
Total gross profit
$
189,666
$
142,935
32.7
%
Income before income taxes
$
139,177
$
104,212
33.6
%
Net income attributable to Green Brick
Partners, Inc.
$
105,358
$
75,270
40.0
%
Diluted net income attributable to Green
Brick Partners, Inc. per common share
$
2.32
$
1.63
42.3
%
Residential units revenue
$
547,138
$
454,445
20.4
%
Average sales price of homes delivered
$
554.2
$
580.0
(4.4
)%
Homebuilding gross margin percentage
34.5
%
31.3
%
320 bps
Selling, general and administrative
expenses as a percentage of residential units revenue
10.5
%
10.8
%
-30 bps
Backlog
$
650,349
$
585,951
$
64,398
Homes under construction
2,229
1,809
23.2
%
Results for the Six Months Ended June 30, 2024:
(Dollars in thousands, except per share
data)
Six Months Ended June
30,
2024
2023
Change
New homes delivered
1,808
1,544
17.1
%
Total revenues
$
1,007,969
$
908,350
11.0
%
Total cost of revenues
670,046
640,809
4.6
%
Total gross profit
$
337,923
$
267,541
26.3
%
Income before income taxes
$
254,810
$
191,384
33.1
%
Net income attributable to Green Brick
Partners, Inc.
$
188,659
$
139,450
35.3
%
Diluted net income attributable to Green
Brick Partners, Inc. per common share
$
4.14
$
3.00
38.0
%
Residential units revenue
$
990,422
$
904,807
9.5
%
Average sales price of homes delivered
$
547.6
$
585.2
(6.4
)%
Homebuilding gross margin percentage
34.0
%
29.5
%
450 bps
Selling, general and administrative
expenses as a percentage of residential units revenue
10.9
%
10.5
%
40 bps
Earnings Conference Call:
We will host our earnings conference call to discuss our second
quarter ended June 30, 2024 at 12:00 p.m. Eastern Time on Thursday,
August 1, 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/883418928
A telephone replay of the call will be available through August
31, 2024. To access the telephone replay, the domestic dial-in
number is 1-800-770-2030, the international dial-in number is
1-647-362-9199 and the access code is 3162560, or by using the link
at investors.greenbrickpartners.com.
GREEN BRICK PARTNERS,
INC.
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per
share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Residential units revenue
$
547,138
$
454,445
$
990,422
$
904,807
Land and lots revenue
13,493
1,844
17,547
3,543
Total revenues
560,631
456,289
1,007,969
908,350
Cost of residential units
358,183
312,030
653,496
638,154
Cost of land and lots
12,782
1,324
16,550
2,655
Total cost of revenues
370,965
313,354
670,046
640,809
Total gross profit
189,666
142,935
337,923
267,541
Selling, general and administrative
expenses
(57,602
)
(49,229
)
(108,172
)
(95,174
)
Equity in income of unconsolidated
entities
1,186
5,699
3,778
9,920
Other income, net
5,927
4,807
21,281
9,097
Income before income taxes
139,177
104,212
254,810
191,384
Income tax expense
23,896
23,148
48,738
42,179
Net income
115,281
81,064
206,072
149,205
Less: Net income attributable to
noncontrolling interests
9,923
5,794
17,413
9,755
Net income attributable to Green Brick
Partners, Inc.
$
105,358
$
75,270
$
188,659
$
139,450
Net income attributable to Green Brick
Partners, Inc. per common share:
Basic
$
2.34
$
1.64
$
4.18
$
3.02
Diluted
$
2.32
$
1.63
$
4.14
$
3.00
Weighted average common shares used in the
calculation of net income attributable to Green Brick Partners,
Inc. per common share:
Basic
44,760
45,371
44,826
45,656
Diluted
45,154
45,755
45,277
46,051
GREEN BRICK PARTNERS,
INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
June 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
133,294
$
179,756
Restricted cash
24,882
19,703
Receivables
14,703
10,632
Inventory
1,792,056
1,533,223
Investments in unconsolidated entities
36,557
84,654
Right-of-use assets - operating leases
7,825
7,255
Property and equipment, net
6,975
7,054
Earnest money deposits
14,529
16,619
Deferred income tax assets, net
15,306
15,306
Intangible assets, net
324
367
Goodwill
680
680
Other assets
17,271
27,583
Total assets
$
2,064,402
$
1,902,832
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
$
67,978
$
54,321
Accrued expenses
126,144
96,457
Customer and builder deposits
49,316
43,148
Lease liabilities - operating leases
8,756
7,898
Borrowings on lines of credit, net
(1,921
)
(2,328
)
Senior unsecured notes, net
311,398
336,207
Notes payable
95
12,981
Total liabilities
561,766
548,684
Commitments and contingencies
Redeemable noncontrolling interest in
equity of consolidated subsidiary
38,883
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
June 30, 2024 and December 31, 2023, respectively
47,603
47,603
Common stock, $0.01 par value: 100,000,000
shares authorized; 44,897,775 issued and 44,594,451 outstanding as
of June 30, 2024 and 45,005,175 issued and outstanding as of
December 31, 2023, respectively
449
450
Treasury stock, at cost: 303,324 shares as
of June 30, 2024 and none as of December 31, 2023
(17,192
)
—
Additional paid-in capital
246,863
255,614
Retained earnings
1,161,512
997,037
Total Green Brick Partners, Inc.
stockholders’ equity
1,439,235
1,300,704
Noncontrolling interests
24,518
17,309
Total equity
1,463,753
1,318,013
Total liabilities and equity
$
2,064,402
$
1,902,832
Residential Units Revenue and New Homes
Delivered (dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
Change
%
2024
2023
Change
%
Home closings revenue
$
546,948
$
454,136
$
92,812
20.4
%
$
990,042
$
903,566
$
86,476
9.6
%
Mechanic’s lien contracts revenue
190
309
(119
)
(38.5
)%
380
1,241
(861
)
(69.4
)%
Residential units revenue
$
547,138
$
454,445
$
92,693
20.4
%
$
990,422
$
904,807
$
85,615
9.5
%
New homes delivered
987
783
204
26.1
%
1,808
1,544
264
17.1
%
Average sales price of homes delivered
$
554.2
$
580.0
$
(25.8
)
(4.4
)%
$
547.6
$
585.2
$
(37.6
)
(6.4
)%
Land and Lots Revenue
(dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
Change
%
2024
2023
Change
%
Lots revenue
$
790
$
1,844
$
(1,054
)
(57.2
)%
$
4,844
$
3,543
$
1,301
36.7
%
Land revenue
12,703
—
12,703
100.0
%
12,703
—
12,703
100.0
%
Land and lots revenue
$
13,493
$
1,844
$
11,649
631.7
%
$
17,547
$
3,543
$
14,004
395.3
%
Lots closed
8
18
(10
)
(55.6
)%
71
36
35
97.2
%
Average sales price of lots closed
$
98.8
$
102.4
$
(3.6
)
(3.5
)%
$
68.2
$
98.4
$
(30.2
)
(30.7
)%
New Home Orders and Backlog
(dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
Change
%
2024
2023
Change
%
Net new home orders
855
822
33
4.0
%
1,926
1,889
37
2.0
%
Revenue from net new home orders
$
471,807
$
489,495
$
(17,688
)
(3.6
)%
$
1,085,191
$
1,120,423
$
(35,232
)
(3.1
)%
Average selling price of net new home
orders
$
551.8
$
595.5
$
(43.7
)
(7.3
)%
$
563.4
$
593.1
$
(29.7
)
(5.0
)%
Cancellation rate
9.2
%
7.4
%
1.8
%
24.3
%
6.5
%
6.7
%
(0.2
)%
(3.0
)%
Absorption rate per average active selling
community per quarter
8.5
9.9
(1.4
)
(14.1
)%
9.8
11.5
(1.7
)
(14.8
)%
Average active selling communities
101
83
18
21.7
%
98
82
16
19.5
%
Active selling communities at end of
period
105
86
19
22.1
%
Backlog
$
650,349
$
585,951
$
64,398
11.0
%
Backlog units
889
882
7
0.8
%
Average sales price of backlog
$
731.6
$
664.3
$
67.3
10.1
%
GREEN BRICK PARTNERS,
INC.
SUPPLEMENTAL
INFORMATION
(Unaudited)
June 30, 2024
December 31, 2023
Central
Southeast
Total
Central
Southeast
Total
Lots
owned
Finished lots
4,142
753
4,895
4,014
964
4,978
Lots in communities under development
18,332
1,492
19,824
9,122
1,335
10,457
Land held for future development(1)
3,800
—
3,800
8,366
—
8,366
Total lots owned
26,274
2,245
28,519
21,502
2,299
23,801
Lots
controlled
Lots under option contracts
946
—
946
1,169
—
1,169
Land under option for future
development
698
739
1,437
1,710
460
2,170
Lots under option through unconsolidated
development joint ventures
2,128
283
2,411
1,210
331
1,541
Total lots controlled
3,772
1,022
4,794
4,089
791
4,880
Total lots owned and controlled (2)
30,046
3,267
33,313
25,591
3,090
28,681
Percentage of lots owned
87.4
%
68.7
%
85.6
%
84.0
%
74.4
%
83.0
%
___________________
(1)
Land held for future development
consists 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 June 30, 2024 and December 31, 2023.
June 30, 2024
December 31, 2023
Total lots owned(1)
28,519
23,801
Add certain lots included in Total Lots
Controlled
Land under option for future acquisition
and development
1,437
2,170
Lots under option through unconsolidated
development joint ventures
2,411
1,541
Total lots self-developed
32,367
27,512
Self-developed lots as a percentage of
total lots owned and controlled(1)
97.2
%
95.9
%
___________________
(1)
Total lots owned includes
finished lot purchases, which were less than 2.4% of total lots
self-developed as of June 30, 2024
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 and six months ended June
30, 2024 and 2023 and reconciles these amounts to homebuilding
gross margin, the most directly comparable GAAP measure.
(Unaudited, in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Residential units revenue
$
547,138
$
454,445
$
990,422
$
904,807
Less: Mechanic’s lien contracts
revenue
(190
)
(309
)
(380
)
(1,241
)
Home closings revenue
$
546,948
$
454,136
$
990,042
$
903,566
Homebuilding gross margin
$
188,893
$
142,302
$
336,810
$
266,217
Homebuilding gross margin percentage
34.5
%
31.3
%
34.0
%
29.5
%
Homebuilding gross margin
188,893
142,302
336,810
266,217
Add back: Capitalized interest charged to
cost of revenues
3,067
3,862
5,751
7,488
Adjusted homebuilding gross margin
$
191,960
$
146,164
$
342,561
$
273,705
Adjusted homebuilding gross margin
percentage
35.1
%
32.2
%
34.6
%
30.3
%
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
June 30, 2024:
Gross
Cash and cash
equivalents
Net
Total debt, net of debt issuance costs
$
309,572
$
(133,294
)
$
176,278
Total Green Brick Partners, Inc.
stockholders’ equity
1,439,235
—
1,439,235
Total capitalization
$
1,748,807
$
(133,294
)
$
1,615,513
Debt to total capitalization ratio
17.7
%
Net debt to total capitalization ratio
10.9
%
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,”, “poised,” “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 unique business model and
focus on infill and infill-adjacent locations, and the impact on
our future results; (ii) our lot and land strategy and its impact
on our future financial position; (iii) our ability to successfully
implement our growth strategy, including the expansion of Trophy
into new markets; (iv) our intent to maintain a debt to capital
ratio below 30% and its impact on our future operational and
financial growth; (v) the drivers and scope of demand for home
ownership in the markets in which we operate and our ability to
capitalize on such demand; (vi) the benefits from our new mortgage
business; (vii) our future financial and operational performance;
and (viii) 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) general economic conditions, seasonality, cyclicality and
competition in the homebuilding industry; (2) 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; (3) general economic
conditions, seasonality, cyclicality and competition in the
homebuilding industry; (4) 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; (5) significant periods of inflation or
deflation; (6) a shortage of qualified labor; (7) an inability to
acquire land in our markets at anticipated prices or difficulty in
obtaining land-use entitlements; (8) our inability to successfully
execute our strategies, including an inability to grow our
operations or expand our Trophy brand; (9) a failure to recruit,
retain or develop highly skilled and competent employees; (10) the
geographic concentration of our operations; (11) government
regulation risks in the industries or markets we operate in; (12) a
lack of availability or volatility of mortgage financing for
homebuyers; (13) severe weather events or natural disasters; (14)
difficulty in obtaining sufficient capital to fund our growth; (15)
our ability to meet our debt service obligations; (16) a decline in
the value of our inventories and resulting write-downs of the
carrying value of our real estate assets, and (17) 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/20240731857419/en/
Benting Hu Vice President of Finance 469-573-6755
IR@greenbrickpartners.com
Green Brick Partners (NYSE:GRBK)
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