Green Brick Partners, Inc. Reports Record First Quarter 2024 Results
DILUTED EPS OF
RECORD HOMEBUILDING GROSS MARGIN OF 33.4%, UP 580 BASIS POINTS
NET
BACKLOG OF
DEBT TO TOTAL CAPITAL OF 18.3%; NET DEBT TO TOTAL CAPITAL OF 8.2%
“Green Brick kicked off 2024 with excellent first quarter results highlighted by diluted earnings per share of
“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
Results for the Quarter Ended
(Dollars in thousands, except per share data) |
Three Months Ended |
|
|
|||||||
|
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 |
$ |
83,301 |
|
|
$ |
64,180 |
|
|
29.8 |
% |
Diluted net income attributable to |
$ |
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
A telephone replay of the call will be available through
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
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 |
|
$ |
83,301 |
|
|
$ |
64,180 |
|
|
|
|
|
|
||||
Net income attributable to |
|
|
|
|
||||
Basic |
|
$ |
1.84 |
|
|
$ |
1.38 |
|
Diluted |
|
$ |
1.82 |
|
|
$ |
1.37 |
|
Weighted average common shares used in the calculation of net income attributable to |
|
|
|
|
||||
Basic |
|
|
44,942 |
|
|
|
45,945 |
|
Diluted |
|
|
45,430 |
|
|
|
46,351 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except share data) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
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 |
|
|
|
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: |
|
|
|
||||
|
|
|
|
||||
Preferred stock, |
|
47,603 |
|
|
|
47,603 |
|
Common stock, |
|
451 |
|
|
|
450 |
|
|
|
(3,758 |
) |
|
|
— |
|
Additional paid-in capital |
|
259,412 |
|
|
|
255,614 |
|
Retained earnings |
|
1,079,619 |
|
|
|
997,037 |
|
|
|
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 |
|
|
|||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||
(Unaudited) |
|||||||||||||
Residential Units Revenue and New Homes Delivered (dollars in thousands) |
|
Three Months Ended |
|
|
|
|
|||||||
|
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 |
|
|
|
|
|||||||
|
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 |
|
|
|
|
|||||||||
|
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 |
% |
|
|||||||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
|
|
|
||||||||||||||
|
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
|
|
|
|
||
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 |
Non-GAAP Financial Measures
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the
The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three months ended
(Unaudited, in thousands): |
|
Three Months Ended |
||||||
|
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
|
Gross |
|
Less: Cash and cash
|
|
Net |
||||||
Total debt, net of debt issuance costs |
$ |
309,156 |
|
|
$ |
(185,897 |
) |
|
$ |
123,259 |
|
|
|
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
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
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
Source: