HOME CLOSINGS REVENUE OF $523M, A RECORD FOR
ANY THIRD QUARTER, UP 25.7% YOY
DILUTED EPS OF $1.98, A RECORD FOR ANY THIRD
QUARTER, UP 26.9% YOY
NET NEW HOME ORDERS OF 877, A RECORD FOR ANY
THIRD QUARTER, UP 11.3% YOY
DEBT TO TOTAL CAPITAL OF 16.4%; NET DEBT TO
TOTAL CAPITAL OF 12.5%
Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or
the “Company”), today reported record results for its third quarter
ended September 30, 2024.
“We are pleased to report that we completed our best third
quarter in history, highlighted by 25.7% home closings revenues
growth year-over-year. During the third quarter, we delivered 956
homes with an average selling price of $546,900, bringing total
home closings revenues to $522.9 million. We continued to generate
an industry-leading homebuilding gross margin of 32.7%. As a
result, diluted EPS increased 27% year-over-year to $1.98 per
share, a record for any third quarter. Our year-to-date diluted EPS
of $6.12 is up 34.5% year-over year, another record for the company
for any year-to-date period through the third quarter,” said Jim
Brickman, CEO and Co-Founder.
“Net new orders in the third quarter picked up from the previous
quarter and grew 11.3% year-over-year to 877 units,” continued Mr.
Brickman. “We were pleased to see a rebound of traffic in
September, particularly with Trophy Signature Homes ('Trophy').
Trophy’s net sales represented 52% of the total sales in third
quarter vs 41% in the third quarter last year. This growth is a
reflection of larger communities in which Trophy was selling in the
third quarter and its growth in year-to-date starts, which have
increased from 44% of Green Brick’s total starts through September
2023 to 50% of overall starts in 2024. We believe the demographic
shifts and housing supply shortage will continue to bolster the
industry, especially in our markets, over the long term and are
confident Green Brick is well poised to capitalize on pent-up
housing demand and industry tailwinds.”
Mr. Brickman added, “We expect to achieve record revenue for
fiscal year 2024. This is a testament to our team and their
operational effectiveness both currently and for the years prior as
we have built out Green Brick’s foundation, including, at its core,
our dedicated, experienced, and skilled employees. This is
particularly rewarding as we celebrate the 10th anniversary of
Green Brick as a public homebuilding company on October 27th.
Reflecting the strength of our team, our active selling communities
and homes under construction as of the end of the third quarter are
up year-over-year 23% and 21%, respectively. We believe our
superior land and lot positions will continue to serve as the
springboard for our growth. Over 80% of our revenue year-to-date
was generated in infill and infill adjacent submarkets where supply
is more limited. Our year-to-date homebuilding gross margin of
33.6% is up 290 bps and reflects a record for any year in our
history through the third quarter. With the ability to self-develop
our lots, we expect finished lot costs as a percentage of home
closings revenue to remain essentially flat for 2024 and 2025.”
“Green Brick’s distinctive business model and strategy have
yielded impressive results over the past decade. This has
translated into exceptional returns for our stockholders, even
while carrying land and lots on our balance sheet. Our year-to-date
return on equity is 27.0%. This success is underpinned by our
conservative balance sheet and financial discipline,” concluded Mr.
Brickman. “At the end of the third quarter, our net debt to total
capital ratio was 12.5% and our total debt to total capital ratio
was only 16.4% with a weighted average pay rate of 3.4%. As we look
ahead to the next decade, we remain committed to investing in our
business and people to strengthen our platform and propel our
growth.”
Results for the Quarter Ended September
30, 2024:
(Dollars in thousands, except per share
data)
Three Months Ended September
30,
2024
2023
Change
New homes delivered
956
754
26.8
%
Total revenues
$
523,660
$
418,978
25.0
%
Total cost of revenues
352,097
279,965
25.8
%
Total gross profit
$
171,563
$
139,013
23.4
%
Income before income taxes
$
118,976
$
98,086
21.3
%
Net income attributable to Green Brick
Partners, Inc.
$
89,111
$
72,156
23.5
%
Diluted net income attributable to Green
Brick Partners, Inc. per common share
$
1.98
$
1.56
26.9
%
Residential units revenue
$
522,859
$
415,923
25.7
%
Average sales price of homes delivered
$
546.9
$
551.5
(0.8
)%
Homebuilding gross margin percentage
32.7
%
33.3
%
-60 bps
Selling, general and administrative
expenses as a percentage of residential units revenue
11.0
%
11.3
%
-30 bps
Backlog revenue
$
581,848
$
622,560
$
(40,712
)
Homes under construction
2,330
1,934
20.5
%
Results for the Nine Months Ended
September 30, 2024:
(Dollars in thousands, except per share
data)
Nine Months Ended September
30,
2024
2023
Change
New homes delivered
2,764
2,298
20.3
%
Total revenues
$
1,531,629
$
1,327,328
15.4
%
Total cost of revenues
1,022,143
920,774
11.0
%
Total gross profit
$
509,486
$
406,554
25.3
%
Income before income taxes
$
373,786
$
289,470
29.1
%
Net income attributable to Green Brick
Partners, Inc.
$
277,770
$
211,606
31.3
%
Diluted net income attributable to Green
Brick Partners, Inc. per common share
$
6.12
$
4.55
34.5
%
Residential units revenue
$
1,513,281
$
1,320,730
14.6
%
Average sales price of homes delivered
$
547.4
$
574.1
(4.7
)%
Homebuilding gross margin percentage
33.6
%
30.7
%
290 bps
Selling, general and administrative
expenses as a percentage of residential units revenue
11.0
%
10.8
%
20 bps
Earnings Conference Call:
We will host our earnings conference call to discuss our third
quarter ended September 30, 2024 at 12:00 p.m. Eastern Time on
Thursday, October 31, 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/478287045
A telephone replay of the call will be available through
November 30, 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.
CONSOLIDATED STATEMENTS OF
INCOME
(In thousands, except per
share data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Residential units revenue
$
522,859
$
415,923
$
1,513,281
$
1,320,730
Land and lots revenue
801
3,055
18,348
6,598
Total revenues
523,660
418,978
1,531,629
1,327,328
Cost of residential units
351,666
277,446
1,005,162
915,600
Cost of land and lots
431
2,519
16,981
5,174
Total cost of revenues
352,097
279,965
1,022,143
920,774
Total gross profit
171,563
139,013
509,486
406,554
Selling, general and administrative
expenses
(57,740
)
(46,884
)
(165,912
)
(142,058
)
Equity in income of unconsolidated
entities
992
1,345
4,770
11,265
Other income, net
4,161
4,612
25,442
13,709
Income before income taxes
118,976
98,086
373,786
289,470
Income tax expense
23,078
20,975
71,816
63,154
Net income
95,898
77,111
301,970
226,316
Net income attributable to noncontrolling
interests
6,787
4,955
24,200
14,710
Net income attributable to Green Brick
Partners, Inc.
$
89,111
$
72,156
$
277,770
$
211,606
Net income attributable to Green Brick
Partners, Inc. per common share:
Basic
$
1.99
$
1.58
$
6.18
$
4.60
Diluted
$
1.98
$
1.56
$
6.12
$
4.55
Weighted average common shares used in the
calculation of net income attributable to Green Brick Partners,
Inc. per common share:
Basic
44,457
45,320
44,614
45,543
Diluted
44,530
45,792
45,019
45,988
GREEN BRICK PARTNERS,
INC.
CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
data)
(Unaudited)
September 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
80,069
$
179,756
Restricted cash
24,579
19,703
Receivables
11,329
10,632
Inventory
1,918,046
1,533,223
Investments in unconsolidated entities
59,356
84,654
Right-of-use assets - operating leases
7,535
7,255
Property and equipment, net
6,901
7,054
Earnest money deposits
13,869
16,619
Deferred income tax assets, net
15,307
15,306
Intangible assets, net
303
367
Goodwill
680
680
Other assets
34,096
27,583
Total assets
$
2,172,070
$
1,902,832
LIABILITIES AND EQUITY
Liabilities:
Accounts payable
$
67,346
$
54,321
Accrued expenses
165,900
96,457
Customer and builder deposits
45,065
43,148
Lease liabilities - operating leases
8,600
7,898
Borrowings on lines of credit, net
(1,718
)
(2,328
)
Senior unsecured notes, net
298,994
336,207
Notes payable
—
12,981
Total liabilities
584,187
548,684
Commitments and contingencies
Redeemable noncontrolling interest in
equity of consolidated subsidiary
42,841
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
September 30, 2024 and December 31, 2023, respectively
47,603
47,603
Common stock, $0.01 par value: 100,000,000
shares authorized; 44,498,248 issued and outstanding as of
September 30, 2024 and 45,005,175 issued and outstanding as of
December 31, 2023, respectively
445
450
Additional paid-in capital
243,199
255,614
Retained earnings
1,229,490
997,037
Total Green Brick Partners, Inc.
stockholders’ equity
1,520,737
1,300,704
Noncontrolling interests
24,305
17,309
Total equity
1,545,042
1,318,013
Total liabilities and equity
$
2,172,070
$
1,902,832
GREEN BRICK PARTNERS,
INC.
SUPPLEMENTAL
INFORMATION
(Unaudited)
Residential Units Revenue and New Homes
Delivered (dollars in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
Change
%
2024
2023
Change
%
Home closings revenue
$
522,859
$
415,827
$
107,032
25.7
%
$
1,512,901
$
1,319,393
$
193,508
14.7
%
Mechanic’s lien contracts revenue
—
96
(96
)
(100.0
)%
380
1,337
(957
)
(71.6
)%
Residential units revenue
$
522,859
$
415,923
$
106,936
25.7
%
$
1,513,281
$
1,320,730
$
192,551
14.6
%
New homes delivered
956
754
202
26.8
%
2,764
2,298
466
20.3
%
Average sales price of homes delivered
$
546.9
$
551.5
$
(4.6
)
(0.8
)%
$
547.4
$
574.1
$
(26.7
)
(4.7
)%
Land and Lots Revenue (dollars
in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
Change
%
2024
2023
Change
%
Lots revenue
$
800
$
2,026
$
(1,226
)
(60.5
)%
$
5,644
$
5,569
$
75
1.3
%
Land revenue
1
1,029
(1,028
)
(99.9
)%
12,704
1,029
11,675
1,134.6
%
Land and lots revenue
$
801
$
3,055
$
(2,254
)
(73.8
)%
$
18,348
$
6,598
$
11,750
178.1
%
Lots closed
8
19
(11
)
(57.9
)%
79
55
24
43.6
%
Average sales price of lots closed
$
100.0
$
106.6
$
(6.6
)
(6.2
)%
$
71.4
$
101.3
$
(29.9
)
(29.5
)%
New Home Orders and Backlog
(dollars in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
Change
%
2024
2023
Change
%
Net new home orders
877
788
89
11.3
%
2,803
2,677
126
4.7
%
Revenue from net new home orders
$
454,358
$
452,436
$
1,922
0.4
%
$
1,539,549
$
1,572,859
$
(33,310
)
(2.1
)%
Average selling price of net new home
orders
$
518.1
$
574.2
$
(56.1
)
(9.8
)%
$
549.3
$
587.5
$
(38.2
)
(6.5
)%
Cancellation rate
8.5
%
6.1
%
2.4
%
39.3
%
7.1
%
6.5
%
0.6
%
9.2
%
Absorption rate per average active selling
community per quarter
8.4
9.2
(0.8
)
(8.7
)%
9.3
10.8
(1.5
)
(13.9
)%
Average active selling communities
105
86
19
22.1
%
100
83
17
20.5
%
Active selling communities at end of
period
106
86
20
23.3
%
Backlog revenue
$
581,848
$
622,560
$
(40,712
)
(6.5
)%
Backlog units
809
916
(107
)
(11.7
)%
Average sales price of backlog
$
719.2
$
679.7
$
39.5
5.8
%
GREEN BRICK PARTNERS,
INC.
SUPPLEMENTAL
INFORMATION
(Unaudited)
September 30, 2024
December 31, 2023
Central
Southeast
Total
Central
Southeast
Total
Lots
owned
Finished lots
4,070
726
4,796
4,014
964
4,978
Lots in communities under development
20,942
1,887
22,829
9,122
1,335
10,457
Land held for future development(1)
3,800
—
3,800
8,366
—
8,366
Total lots owned
28,812
2,613
31,425
21,502
2,299
23,801
Lots
controlled
Lots under option contracts
851
—
851
1,169
—
1,169
Land under option for future
development
1,656
223
1,879
1,710
460
2,170
Lots under option through unconsolidated
development joint ventures
2,627
270
2,897
1,210
331
1,541
Total lots controlled
5,134
493
5,627
4,089
791
4,880
Total lots owned and controlled (2)
33,946
3,106
37,052
25,591
3,090
28,681
Percentage of lots owned
84.9
%
84.1
%
84.8
%
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 September 30, 2024 and December 31, 2023.
September 30, 2024
December 31, 2023
Total lots owned(1)
31,425
23,801
Add certain lots included in Total Lots
Controlled
Land under option for future acquisition
and development
1,879
2,170
Lots under option through unconsolidated
development joint ventures
2,897
1,541
Total lots self-developed
36,201
27,512
Self-developed lots as a percentage of
total lots owned and controlled(1)
97.7
%
95.9
%
___________________
(1)
Total lots owned includes finished lot
purchases, which were less than 1.8% of total lots self-developed
as of September 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 nine months ended
September 30, 2024 and 2023 and reconciles these amounts to
homebuilding gross margin, the most directly comparable GAAP
measure.
(Unaudited, in thousands):
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Residential units revenue
$
522,859
$
415,923
$
1,513,281
$
1,320,730
Less: Mechanic’s lien contracts
revenue
—
(96
)
(380
)
(1,337
)
Home closings revenue
$
522,859
$
415,827
$
1,512,901
$
1,319,393
Homebuilding gross margin
$
171,193
$
138,427
$
508,003
$
404,644
Homebuilding gross margin percentage
32.7
%
33.3
%
33.6
%
30.7
%
Homebuilding gross margin
171,193
138,427
508,003
404,644
Add back: Capitalized interest charged to
cost of revenues
2,788
2,968
8,539
10,456
Add back: Land impairment charge
$
1,308
$
—
$
1,308
$
—
Adjusted homebuilding gross margin
$
175,289
$
141,395
$
517,850
$
415,100
Adjusted homebuilding gross margin
percentage
33.5
%
34.0
%
34.2
%
31.5
%
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
September 30, 2024:
Gross
Cash and cash
equivalents
Net
Total debt, net of debt issuance costs
$
297,276
$
(80,069
)
$
217,207
Total Green Brick Partners, Inc.
stockholders’ equity
1,520,737
—
1,520,737
Total capitalization
$
1,818,013
$
(80,069
)
$
1,737,944
Debt to total capitalization ratio
16.4
%
Net debt to total capitalization ratio
12.5
%
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 through its seven subsidiary
homebuilders 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 focus on owning land and
self-developing and on infill and infill-adjacent locations, and
the impact on our future results; (ii) our positioning to capture
future demand, increase market share 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, and ancillary business
opportunities; (iv) our expectations regarding trends in our
markets, such as demographic trends and demand for single-family
homes; (v) our business priorities and 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 investments in
land, lots and development in 2024, and the impact on our growth;
(viii) our expected lot deliveries in 2024; (ix) our flexibility in
adjusting home prices; (x) the demand for home ownership in the
markets in which we operate and our ability to capitalize on such
demand; (xi) the land-light model; (xii) our ability to scale our
business and improve our operating leverage; and (xiii) our ability
to deliver efficient and cost-effective growth, including our
ability to manage costs and cycle times. 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 increasing interest
rates and inflation that could adversely impact demand for new
homes or the ability of potential buyers to qualify; (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) significant periods
of inflation or deflation; (5) a shortage of qualified labor; (6)
an inability to acquire land in our markets at anticipated prices
or difficulty in obtaining land-use entitlements; (7) our inability
to successfully execute our strategies, including the successful
development of our communities within expected time frames and the
growth and expansion of our Trophy brand; (8) a failure to recruit,
retain or develop highly skilled and competent employees; (9) the
geographic concentration of our operations; (10) government
regulation risks; (11) adverse changes in the availability or
volatility of mortgage financing; (12) severe weather events or
natural disasters; (13) difficulty in obtaining sufficient capital
to fund our growth; (14) our ability to meet our debt service
obligations; (15) a decline in the value of our inventories and
resulting write-downs of the carrying value of our real estate
assets; (16) our ability to adequately self-insure; 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/20241030535676/en/
Benting Hu Vice President of Finance 469-573-6755
IR@greenbrickpartners.com
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