NEW HOME ORDERS UP 50.8% FOR THE QUARTER AND 64.8% YEAR-TO-DATE
RESIDENTIAL UNITS REVENUE OF $454.4 MILLION, SECOND HIGHEST IN COMPANY HISTORY
HOMEBUILDING GROSS MARGIN 31.3%, UP 370 BPS SEQUENTIALLY
DILUTED EPS OF $1.63, SECOND HIGHEST IN COMPANY HISTORY
DEBT TO TOTAL CAPITAL OF 22.9%; RECORD LOW NET DEBT TO TOTAL CAPITAL OF 10.6%
PLANO, Texas, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (: GRBK) (“we,” “Green Brick” or the “Company”) today reported results for its second quarter ended June 30, 2023.
“We are pleased to report that Green Brick delivered another strong quarter with exceptional execution by our team. During the second quarter, we delivered 783 homes, generating $454 million in home closings revenue, which was our second highest in company history. Homebuilding gross margin was up 370 bps sequentially to 31.3%. These higher margins drove second quarter earnings up to $1.63 per diluted share, which were up 19% sequentially and second best in company history,” said Jim Brickman, CEO and Co-Founder. “We continue to lead the industry with the highest homebuilding gross margins amongst our public peers, a result of our infill locations, self-development land strategy, and focus on operational efficiency.”
“We have continued to see demand for homes, particularly in infill and infill-adjacent locations where we have a strong presence and where there is limited resale inventory competition because existing homeowners are reluctant to sell their homes and forfeit their low interest rate loans. Sales momentum in 2Q23 was above normal seasonality and remained strong throughout the spring selling season. Net orders increased 51% year-over-year to 822 homes, the highest of any second quarter in company history. Our quarterly absorption rate in 2Q23 remained robust at 9.9 homes per active selling community, while our cancellation rate remained the lowest in the homebuilding industry at 7.4%. As a result, backlog at the end of Q2 is now up 59% from the beginning of the year. During the quarter, we increased ending community count to its highest level in two years, up 10% year over year. We also ramped up our starts during the second quarter by 25% over 1Q23 to 833 units, which has allowed us to better align starts with our improved sales pace. Additionally, we are pleased to have seen further normalization of the supply chain and labor availability in our markets and improved cycle times that we expect will continue to result in higher returns on capital. We believe our scale as the third largest builder in DFW and ongoing operational improvements will continue to decrease our cycle times,” continued Mr. Brickman.
“We were able to generate these results while lowering our leverage. As of June 30, 2023, our debt to total capital ratio decreased 600 bps year-over-year to 22.9%, while net debt to total capital ratio was down 1450 basis points to a record low of 10.6%. With a strong balance sheet and ample lots in infill locations, we believe we are well positioned to take advantage of continuing strong demand and increase our market share in our core markets.”
Results for the Quarter Ended June 30, 2023:
| (Dollars in thousands, except per share data) | Three Months Ended June 30, | ||||||||||
| 2023 | 2022 | Change | |||||||||
| New homes delivered | 783 | 881 | (11.1) % | ||||||||
| Total revenues | $ | 456,289 | $ | 525,144 | (13.1) % | ||||||
| Total cost of revenues | 313,354 | 356,248 | (12.0) % | ||||||||
| Total gross profit | $ | 142,935 | $ | 168,896 | (15.4) % | ||||||
| Income before income taxes | $ | 104,212 | $ | 138,282 | (24.6) % | ||||||
| Net income attributable to Green Brick Partners, Inc. | $ | 75,270 | $ | 101,256 | (25.7) % | ||||||
| Diluted net income attributable to Green Brick Partners, Inc. per common share | $ | 1.63 | $ | 2.08 | (21.6) % | ||||||
| Residential units revenue | $ | 454,445 | $ | 512,515 | (11.3) % | ||||||
| Average sales price of homes delivered | $ | 580.0 | $ | 579.5 | 0.1 | % | |||||
| Homebuilding gross margin percentage | 31.3 | % | 32.3 | % | -100 bps | ||||||
| Backlog | $ | 585,951 | $ | 710,199 | $ | (124,248 | ) | ||||
| Homes under construction | 1,809 | 2,436 | (25.7) % | ||||||||
Results for the Six Months Ended June 30, 2023:
| (Dollars in thousands, except per share data) | Six Months Ended June 30, | |||||||||
| 2023 | 2022 | Change | ||||||||
| New homes delivered | 1,544 | 1,539 | 0.3 | % | ||||||
| Total revenues | $ | 908,350 | $ | 918,760 | (1.1) % | |||||
| Total cost of revenues | 640,809 | 641,508 | (0.1) % | |||||||
| Total gross profit | $ | 267,541 | $ | 277,252 | (3.5) % | |||||
| Income before income taxes | $ | 191,384 | $ | 220,915 | (13.4) % | |||||
| Net income attributable to Green Brick Partners, Inc. | $ | 139,450 | $ | 162,833 | (14.4) % | |||||
| Diluted net income attributable to Green Brick Partners, Inc. per common share | $ | 3.00 | $ | 3.25 | (7.7) % | |||||
| Residential units revenue | $ | 904,807 | $ | 877,176 | 3.1 | % | ||||
| Average sales price of homes delivered | $ | 585.2 | $ | 567.6 | 3.1 | % | ||||
| Homebuilding gross margin percentage | 29.5 | % | 30.5 | % | -100 bps | |||||
| Selling, general and administrative expenses as a percentage of residential units revenue | 10.5 | % | 8.7 | % | 180 bps | |||||
Earnings Conference Call:
We will host our earnings conference call to discuss our second quarter ended June 30, 2023 at 12:00 p.m. Eastern Time on Thursday, August 3, 2023. 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/763375419
A telephone replay of the call will be available through September 2, 2023. 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, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Residential units revenue | $ | 454,445 | $ | 512,515 | $ | 904,807 | $ | 877,176 | |||||||
| Land and lots revenue | 1,844 | 12,629 | 3,543 | 41,584 | |||||||||||
| Total revenues | 456,289 | 525,144 | 908,350 | 918,760 | |||||||||||
| Cost of residential units | 312,030 | 347,142 | 638,154 | 610,572 | |||||||||||
| Cost of land and lots | 1,324 | 9,106 | 2,655 | 30,936 | |||||||||||
| Total cost of revenues | 313,354 | 356,248 | 640,809 | 641,508 | |||||||||||
| Total gross profit | 142,935 | 168,896 | 267,541 | 277,252 | |||||||||||
| Selling, general and administrative expenses | (49,229 | ) | (41,798 | ) | (95,174 | ) | (76,063 | ) | |||||||
| Equity in income of unconsolidated entities | 5,699 | 8,523 | 9,920 | 14,210 | |||||||||||
| Other income, net | 4,807 | 2,661 | 9,097 | 5,516 | |||||||||||
| Income before income taxes | 104,212 | 138,282 | 191,384 | 220,915 | |||||||||||
| Income tax expense | 23,148 | 30,278 | 42,179 | 48,715 | |||||||||||
| Net income | 81,064 | 108,004 | 149,205 | 172,200 | |||||||||||
| Less: Net income attributable to noncontrolling interests | 5,794 | 6,748 | 9,755 | 9,367 | |||||||||||
| Net income attributable to Green Brick Partners, Inc. | $ | 75,270 | $ | 101,256 | $ | 139,450 | $ | 162,833 | |||||||
| Net income attributable to Green Brick Partners, Inc. per common share: | |||||||||||||||
| Basic | $ | 1.64 | $ | 2.09 | $ | 3.02 | $ | 3.27 | |||||||
| Diluted | $ | 1.63 | $ | 2.08 | $ | 3.00 | $ | 3.25 | |||||||
| Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: | |||||||||||||||
| Basic | 45,371 | 48,046 | 45,656 | 49,309 | |||||||||||
| Diluted | 45,755 | 48,384 | |||||||||||||
