Green Brick Partners, Inc. Reports Fourth Quarter and Full Year 2023 Results
- Record diluted EPS of $6.14 and total revenues of $1.8 billion for Q4 showcase strong financial performance.
- Net new home orders increased by 60.5% year-over-year, demonstrating robust demand.
- Debt to total capital stands at 21.1%, indicating a healthy financial position.
- Expansion into Houston, Texas, and success in key markets like Dallas-Fort Worth and Atlanta drive growth.
- Industry-leading homebuilding gross margin of 31.4% for the quarter reflects operational excellence.
- Backlog of $555 million at the end of 2023 sets a solid foundation for 2024.
- Low leverage and cost of debt enable the company to retain profits for growth.
- Return on equity at 24.9% for the full year highlights strong performance and strategic advantages.
- None.
Insights
The reported homebuilding gross margin of 31.4% for Green Brick Partners in Q4 represents a significant increase from the previous year, indicating a robust pricing environment and effective cost management. The gross margin expansion by 520 basis points (bps) year-over-year (YOY) exceeds typical industry averages, which generally hover around the mid to high-20% range. This suggests that the company has a competitive advantage in its operational efficiency or is benefiting from economies of scale in its primary markets of Dallas-Fort Worth and Atlanta.
Furthermore, the increase in diluted earnings per share (EPS) by 33.9% YOY and a record high full-year diluted EPS of $6.14 reflect strong profitability and earnings growth. The reported net new home orders up by 60.5% for the quarter and 70.1% YOY, combined with a low debt to total capital ratio of 21.1% and an even lower net debt to total capital ratio of 11.4%, indicate a healthy balance sheet, which is conducive to future growth. The company's low leverage compared to its peers provides financial flexibility and could be a strategic advantage in pursuing expansion opportunities or weathering potential market downturns.
The expansion into the Houston market represents a strategic move for Green Brick Partners, as Houston is one of the most populous and active homebuilding markets in the United States. The entry into this market with a large-scale project of 460 home sites, developed in partnership with one of the largest public homebuilders, could significantly increase the company's market share and revenue potential. However, it is essential to monitor the absorption rates and average selling prices in the new market to ensure that the value proposition aligns with local demand, particularly for entry-level and move-up homes.
The company's backlog increase of 50.4% YOY is an indicator of strong future revenues, but it also necessitates careful monitoring of supply chain and labor availability to meet the construction timelines. The shorter construction cycle times reported in the fourth quarter, which are 35% shorter YOY, reflect operational efficiencies that can lead to faster inventory turnover and improved cash flows. Keeping these cycle times low will be crucial as the company scales up operations in new markets.
The reported financial results of Green Brick Partners, particularly the 24.9% return on equity (ROE) for the full year, signify a robust return on investment for shareholders. This high ROE, when compared to the industry average, which typically ranges between 10-15%, indicates that the company is generating substantial profit from its equity base. Such performance could be attributed to strategic land acquisitions, effective land underwriting and the company's success in management and land development.
Additionally, the favorable demographic shifts and strong employment in the company's primary markets have likely contributed to the healthy demand for housing. The 'golden handcuffs' phenomenon—where existing homeowners are reluctant to sell due to low-rate mortgages—may also be reducing competition and supporting Green Brick's pricing power. However, it's important to consider the potential impact of interest rate changes on mortgage rates and housing affordability, which could affect future demand.
EXPANSION INTO
Q4 HOMEBUILDING GROSS MARGIN OF
Q4 DILUTED EPS OF
RECORD HIGH FULL YEAR DILUTED EPS OF
NET
DEBT TO TOTAL CAPITAL OF
Green Brick finished 2023 with a record
“For the fourth quarter, we delivered a record 825 homes, an increase of
“Dallas-Fort Worth and
Mr. Brickman added, “During the fourth quarter, we started 948 homes, which tripled the pace of 4Q22. Our home starts for the last nine months have now averaged almost 900 homes per quarter. At the same time, our fourth quarter cycle times were
Our industry leading results would not have been possible without a fantastic team effort combined with our financial discipline and investment grade balance sheet. At the end of the year, our net debt to total capital ratio was
Mr. Brickman concluded, “We are excited to announce that Green Brick recently closed its first land acquisition in
Results for the Quarter Ended December 31, 2023:
(Dollars in thousands, except per share data) |
Three Months Ended December 31, |
|
|
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
New homes delivered |
|
825 |
|
|
|
727 |
|
|
|
13.5 |
% |
|
|
|
|
|
|
||||||
Total revenues |
$ |
450,382 |
|
|
$ |
431,089 |
|
|
|
4.5 |
% |
Total cost of revenues |
|
308,754 |
|
|
|
318,635 |
|
|
|
(3.1 |
)% |
Total gross profit |
$ |
141,628 |
|
|
$ |
112,454 |
|
|
|
25.9 |
% |
Income before income taxes |
$ |
101,843 |
|
|
$ |
77,954 |
|
|
|
30.6 |
% |
Net income attributable to Green Brick Partners, Inc. |
$ |
73,020 |
|
|
$ |
55,547 |
|
|
|
31.5 |
% |
Diluted net income attributable to Green Brick Partners, Inc. per common share |
$ |
1.58 |
|
|
$ |
1.18 |
|
|
|
33.9 |
% |
|
|
|
|
|
|
||||||
Residential units revenue |
$ |
448,525 |
|
|
$ |
430,026 |
|
|
|
4.3 |
% |
Average sales price of homes delivered |
$ |
543.5 |
|
|
$ |
589.5 |
|
|
|
(7.8 |
)% |
Homebuilding gross margin percentage |
|
31.4 |
% |
|
|
26.2 |
% |
|
520 bps |
||
|
|
|
|
|
|
||||||
Backlog |
$ |
555,200 |
|
|
$ |
369,095 |
|
|
$ |
186,105 |
|
Homes under construction |
|
2,057 |
|
|
|
1,853 |
|
|
|
11.0 |
% |
Results for the Year Ended December 31, 2023:
(Dollars in thousands, except per share data) |
Twelve Months Ended December 31, |
|
|
|||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
New homes delivered |
|
3,123 |
|
|
|
2,916 |
|
|
7.1 |
% |
|
|
|
|
|
|
|||||
Total revenues |
$ |
1,777,710 |
|
|
$ |
1,757,793 |
|
|
1.1 |
% |
Total cost of revenues |
|
1,229,528 |
|
|
|
1,234,768 |
|
|
(0.4 |
)% |
Total gross profit |
$ |
548,182 |
|
|
$ |
523,025 |
|
|
4.8 |
% |
Income before income taxes |
$ |
391,313 |
|
|
$ |
396,465 |
|
|
(1.3 |
)% |
Net income attributable to Green Brick Partners, Inc. |
$ |
284,626 |
|
|
$ |
291,900 |
|
|
(2.5 |
)% |
Diluted net income attributable to Green Brick Partners, Inc. per common share |
$ |
6.14 |
|
|
$ |
6.02 |
|
|
2.0 |
% |
|
|
|
|
|
|
|||||
Residential units revenue |
$ |
1,769,255 |
|
|
$ |
1,703,951 |
|
|
3.8 |
% |
Average sales price of homes delivered |
$ |
566.1 |
|
|
$ |
581.9 |
|
|
(2.7 |
)% |
Homebuilding gross margin percentage |
|
30.9 |
% |
|
|
29.8 |
% |
|
110 bps |
|
Selling, general and administrative expenses as a percentage of residential units revenue |
|
10.9 |
% |
|
|
9.6 |
% |
|
130 bps |
|
Earnings Conference Call:
We will host our earnings conference call to discuss our fourth quarter ended December 31, 2023 at 12:00 p.m. Eastern Time on Friday, March 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/984972633
A telephone replay of the call will be available through March 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 December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Residential units revenue |
|
$ |
448,525 |
|
|
$ |
430,026 |
|
|
$ |
1,769,255 |
|
|
$ |
1,703,951 |
|
Land and lots revenue |
|
|
1,857 |
|
|
|
1,063 |
|
|
|
8,455 |
|
|
|
53,842 |
|
Total revenues |
|
|
450,382 |
|
|
|
431,089 |
|
|
|
1,777,710 |
|
|
|
1,757,793 |
|
Cost of residential units |
|
|
307,479 |
|
|
|
317,806 |
|
|
|
1,223,079 |
|
|
|
1,196,914 |
|
Cost of land and lots |
|
|
1,275 |
|
|
|
829 |
|
|
|
6,449 |
|
|
|
37,854 |
|
Total cost of revenues |
|
|
308,754 |
|
|
|
318,635 |
|
|
|
1,229,528 |
|
|
|
1,234,768 |
|
Total gross profit |
|
|
141,628 |
|
|
|
112,454 |
|
|
|
548,182 |
|
|
|
523,025 |
|
Selling, general and administrative expenses |
|
|
(50,919 |
) |
|
|
(44,629 |
) |
|
|
(192,977 |
) |
|
|
(163,943 |
) |
Equity in income of unconsolidated entities |
|
|
5,477 |
|
|
|
5,719 |
|
|
|
16,742 |
|
|
|
25,626 |
|
Other income, net |
|
|
5,657 |
|
|
|
4,410 |
|
|
|
19,366 |
|
|
|
11,757 |
|
Income before income taxes |
|
|
101,843 |
|
|
|
77,954 |
|
|
|
391,313 |
|
|
|
396,465 |
|
Income tax expense |
|
|
21,484 |
|
|
|
16,790 |
|
|
|
84,638 |
|
|
|
82,468 |
|
Net income |
|
|
80,359 |
|
|
|
61,164 |
|
|
|
306,675 |
|
|
|
313,997 |
|
Less: Net income attributable to noncontrolling interests |
|
|
7,339 |
|
|
|
5,617 |
|
|
|
22,049 |
|
|
|
22,097 |
|
Net income attributable to Green Brick Partners, Inc. |
|
$ |
73,020 |
|
|
$ |
55,547 |
|
|
$ |
284,626 |
|
|
$ |
291,900 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Green Brick Partners, Inc. per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.60 |
|
|
$ |
1.19 |
|
|
$ |
6.20 |
|
|
$ |
6.07 |
|
Diluted |
|
$ |
1.58 |
|
|
$ |
1.18 |
|
|
$ |
6.14 |
|
|
$ |
6.02 |
|
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
45,160 |
|
|
|
45,994 |
|
|
|
45,446 |
|
|
|
47,648 |
|
Diluted |
|
|
45,635 |
|
|
|
46,332 |
|
|
|
45,917 |
|
|
|
47,987 |
|
GREEN BRICK PARTNERS, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except share data) |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
ASSETS |
|||||||
Cash and cash equivalents |
$ |
179,756 |
|
|
$ |
76,588 |
|
Restricted cash |
|
19,703 |
|
|
|
16,682 |
|
Receivables |
|
10,632 |
|
|
|
5,288 |
|
Inventory |
|
1,533,223 |
|
|
|
1,422,680 |
|
Investments in unconsolidated entities |
|
84,654 |
|
|
|
74,224 |
|
Right-of-use assets - operating leases |
|
7,255 |
|
|
|
3,458 |
|
Property and equipment, net |
|
7,054 |
|
|
|
2,919 |
|
Earnest money deposits |
|
16,619 |
|
|
|
23,910 |
|
Deferred income tax assets, net |
|
15,306 |
|
|
|
16,448 |
|
Intangible assets, net |
|
367 |
|
|
|
452 |
|
Goodwill |
|
680 |
|
|
|
680 |
|
Other assets |
|
27,583 |
|
|
|
12,346 |
|
Total assets |
$ |
1,902,832 |
|
|
$ |
1,655,675 |
|
LIABILITIES AND EQUITY |
|||||||
Liabilities: |
|
|
|
||||
Accounts payable |
$ |
54,321 |
|
|
$ |
51,804 |
|
Accrued expenses |
|
96,457 |
|
|
|
91,281 |
|
Customer and builder deposits |
|
43,148 |
|
|
|
29,112 |
|
Lease liabilities - operating leases |
|
7,898 |
|
|
|
3,582 |
|
Borrowings on lines of credit, net |
|
(2,328 |
) |
|
|
17,395 |
|
Senior unsecured notes, net |
|
336,207 |
|
|
|
335,825 |
|
Notes payable |
|
12,981 |
|
|
|
14,622 |
|
Total liabilities |
|
548,684 |
|
|
|
543,621 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable noncontrolling interest in equity of consolidated subsidiary |
|
36,135 |
|
|
|
29,239 |
|
Equity: |
|
|
|
||||
Green Brick Partners, Inc. stockholders’ equity |
|
|
|
||||
Preferred stock, |
|
47,603 |
|
|
|
47,696 |
|
Common stock, |
|
450 |
|
|
|
460 |
|
Additional paid-in capital |
|
255,614 |
|
|
|
259,410 |
|
Retained earnings |
|
997,037 |
|
|
|
754,341 |
|
Total Green Brick Partners, Inc. stockholders’ equity |
|
1,300,704 |
|
|
|
1,061,907 |
|
Noncontrolling interests |
|
17,309 |
|
|
|
20,908 |
|
Total equity |
|
1,318,013 |
|
|
|
1,082,815 |
|
Total liabilities and equity |
$ |
1,902,832 |
|
|
$ |
1,655,675 |
|
GREEN BRICK PARTNERS, INC. |
||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION |
||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||
Residential Units Revenue and New Homes Delivered (dollars in thousands) |
|
Three Months Ended December 31, |
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
||||||||||||||
|
2023 |
|
2022 |
|
Change |
|
% |
|
2023 |
|
2022 |
|
Change |
|
% |
|||||||||||
Home closings revenue |
|
$ |
448,395 |
|
$ |
428,582 |
|
$ |
19,813 |
|
|
4.6 |
% |
|
$ |
1,767,788 |
|
$ |
1,696,911 |
|
$ |
70,877 |
|
|
4.2 |
% |
Mechanic’s lien contracts revenue |
|
|
130 |
|
|
1,444 |
|
|
(1,314 |
) |
|
(91.0 |
)% |
|
|
1,467 |
|
|
7,040 |
|
|
(5,573 |
) |
|
(79.2 |
)% |
Residential units revenue |
|
$ |
448,525 |
|
$ |
430,026 |
|
$ |
18,499 |
|
|
4.3 |
% |
|
$ |
1,769,255 |
|
$ |
1,703,951 |
|
$ |
65,304 |
|
|
3.8 |
% |
New homes delivered |
|
|
825 |
|
|
727 |
|
|
98 |
|
|
13.5 |
% |
|
|
3,123 |
|
|
2,916 |
|
|
207 |
|
|
7.1 |
% |
Average sales price of homes delivered |
|
$ |
543.5 |
|
$ |
589.5 |
|
$ |
(46.0 |
) |
|
(7.8 |
)% |
|
$ |
566.1 |
|
$ |
581.9 |
|
$ |
(15.8 |
) |
|
(2.7 |
)% |
Land and Lots Revenue (dollars in thousands) |
|
Three Months Ended December 31, |
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
|||||||||||||
|
2023 |
|
2022 |
|
Change |
|
% |
|
2023 |
|
2022 |
|
Change |
|
% |
||||||||||
Lots revenue |
|
$ |
1,857 |
|
$ |
1,063 |
|
$ |
794 |
|
74.7 |
% |
|
$ |
7,426 |
|
$ |
19,090 |
|
$ |
(11,664 |
) |
|
(61.1 |
)% |
Land revenue |
|
|
— |
|
|
— |
|
|
— |
|
0.0 |
% |
|
|
1,029 |
|
|
34,752 |
|
|
(33,723 |
) |
|
(97.0 |
)% |
Land and lots revenue |
|
$ |
1,857 |
|
$ |
1,063 |
|
$ |
794 |
|
74.7 |
% |
|
$ |
8,455 |
|
$ |
53,842 |
|
$ |
(45,387 |
) |
|
(84.3 |
)% |
Lots closed |
|
|
18 |
|
|
14 |
|
|
4 |
|
28.6 |
% |
|
|
73 |
|
|
288 |
|
|
(215 |
) |
|
(74.7 |
)% |
Average sales price of lots closed |
|
$ |
103.2 |
|
$ |
75.9 |
|
$ |
27.3 |
|
36.0 |
% |
|
$ |
101.7 |
|
$ |
66.3 |
|
$ |
35.4 |
|
|
53.4 |
% |
New Home Orders and Backlog (dollars in thousands) |
|
Three Months Ended December 31, |
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
|
|
||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% |
|||||||
Net new home orders |
|
|
679 |
|
|
|
423 |
|
|
|
256 |
|
|
60.5 |
% |
|
|
3,356 |
|
|
|
1,973 |
|
|
|
1,383 |
|
|
70.1 |
% |
Revenue from net new home orders |
|
$ |
381,044 |
|
|
$ |
247,818 |
|
|
$ |
133,226 |
|
|
53.8 |
% |
|
$ |
1,953,903 |
|
|
$ |
1,210,315 |
|
|
$ |
743,588 |
|
|
61.4 |
% |
Average selling price of net new home orders |
|
$ |
561.2 |
|
|
$ |
585.9 |
|
|
$ |
(24.7 |
) |
|
(4.2 |
)% |
|
$ |
582.2 |
|
|
$ |
613.4 |
|
|
$ |
(31.2 |
) |
|
(5.1 |
)% |
Cancellation rate |
|
|
7.2 |
% |
|
|
20.3 |
% |
|
|
(13.1 |
)% |
|
(64.5 |
)% |
|
|
6.6 |
% |
|
|
13.8 |
% |
|
|
(7.2 |
)% |
|
(52.2 |
)% |
Absorption rate per average active selling community per quarter |
|
|
7.6 |
|
|
|
5.5 |
|
|
|
2.1 |
|
|
38.2 |
% |
|
|
9.9 |
|
|
|
6.5 |
|
|
|
3.4 |
|
|
52.3 |
% |
Average active selling communities |
|
|
89 |
|
|
|
77 |
|
|
|
12 |
|
|
15.6 |
% |
|
|
85 |
|
|
|
76 |
|
|
|
9 |
|
|
11.8 |
% |
Active selling communities at end of period |
|
|
91 |
|
|
|
80 |
|
|
|
11 |
|
|
13.8 |
% |
|
|
|
|
|
|
|
|
|||||||
Backlog |
|
$ |
555,200 |
|
|
$ |
369,095 |
|
|
$ |
186,105 |
|
|
50.4 |
% |
|
|
|
|
|
|
|
|
|||||||
Backlog units |
|
|
770 |
|
|
|
537 |
|
|
|
233 |
|
|
43.4 |
% |
|
|
|
|
|
|
|
|
|||||||
Average sales price of backlog |
|
$ |
721.0 |
|
|
$ |
687.3 |
|
|
$ |
33.7 |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|||||||
GREEN BRICK PARTNERS, INC. |
|||||||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||||||||||||
|
Central |
|
Southeast |
|
Total |
|
Central |
|
Southeast |
|
Total |
||||||
Lots owned |
|
|
|
|
|
|
|
|
|
|
|
||||||
Finished lots |
4,014 |
|
|
964 |
|
|
4,978 |
|
|
1,901 |
|
|
998 |
|
|
2,899 |
|
Lots in communities under development |
9,122 |
|
|
1,335 |
|
|
10,457 |
|
|
10,309 |
|
|
1,698 |
|
|
12,007 |
|
Land held for future development(1) |
8,366 |
|
|
— |
|
|
8,366 |
|
|
6,575 |
|
|
— |
|
|
6,575 |
|
Total lots owned |
21,502 |
|
|
2,299 |
|
|
23,801 |
|
|
18,785 |
|
|
2,696 |
|
|
21,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Lots controlled |
|
|
|
|
|
|
|
|
|
|
|
||||||
Lots under option contracts |
1,169 |
|
|
— |
|
|
1,169 |
|
|
2,212 |
|
|
6 |
|
|
2,218 |
|
Land under option for future development |
1,710 |
|
|
460 |
|
|
2,170 |
|
|
110 |
|
|
18 |
|
|
128 |
|
Lots under option through unconsolidated development joint ventures |
1,210 |
|
|
331 |
|
|
1,541 |
|
|
1,289 |
|
|
411 |
|
|
1,700 |
|
Total lots controlled |
4,089 |
|
|
791 |
|
|
4,880 |
|
|
3,611 |
|
|
435 |
|
|
4,046 |
|
Total lots owned and controlled (2) |
25,591 |
|
|
3,090 |
|
|
28,681 |
|
|
22,396 |
|
|
3,131 |
|
|
25,527 |
|
Percentage of lots owned |
84.0 |
% |
|
74.4 |
% |
|
83.0 |
% |
|
83.9 |
% |
|
86.1 |
% |
|
84.2 |
% |
| _________________ | |||||||||||||||||
(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 December 31, 2023 and December 31, 2022.
|
December 31, 2023 |
|
December 31, 2022 |
||
Total lots owned(1) |
23,801 |
|
|
21,481 |
|
Add certain lots included in Total Lots Controlled |
|
|
|
||
Land under option for future acquisition and development |
2,170 |
|
|
128 |
|
Lots under option through unconsolidated development joint ventures |
1,541 |
|
|
1,700 |
|
Total lots self-developed |
27,512 |
|
|
23,309 |
|
Self-developed lots as a percentage of total lots owned and controlled(1) |
95.9 |
% |
|
91.3 |
% |
| _________________ | |||||
(1) Total lots owned includes finished lot purchases, which were less than |
|||||
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
The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three and twelve months ended December 31, 2023 and 2022 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.
(Unaudited, in thousands): |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Residential units revenue |
|
$ |
448,525 |
|
|
$ |
430,026 |
|
|
$ |
1,769,255 |
|
|
$ |
1,703,951 |
|
Less: Mechanic’s lien contracts revenue |
|
|
(130 |
) |
|
|
(1,444 |
) |
|
|
(1,467 |
) |
|
|
(7,040 |
) |
Home closings revenue |
|
$ |
448,395 |
|
|
$ |
428,582 |
|
|
$ |
1,767,788 |
|
|
$ |
1,696,911 |
|
Homebuilding gross margin |
|
$ |
141,010 |
|
|
$ |
112,189 |
|
|
$ |
545,654 |
|
|
$ |
506,129 |
|
Homebuilding gross margin percentage |
|
|
31.4 |
% |
|
|
26.2 |
% |
|
|
30.9 |
% |
|
|
29.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Homebuilding gross margin |
|
|
141,010 |
|
|
|
112,189 |
|
|
|
545,654 |
|
|
|
506,129 |
|
Add back: Capitalized interest charged to cost of revenues |
|
|
2,740 |
|
|
|
3,141 |
|
|
|
13,196 |
|
|
|
13,444 |
|
Add back: Land impairment charge |
|
$ |
— |
|
|
$ |
6,020 |
|
|
$ |
— |
|
|
$ |
6,020 |
|
Adjusted homebuilding gross margin |
|
$ |
143,750 |
|
|
$ |
121,350 |
|
|
$ |
558,850 |
|
|
$ |
525,593 |
|
Adjusted homebuilding gross margin percentage |
|
|
32.1 |
% |
|
|
28.3 |
% |
|
|
31.6 |
% |
|
|
31.0 |
% |
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 December 31, 2023:
|
Gross |
|
Cash and cash equivalents |
|
Net |
||||||
Total debt, net of debt issuance costs |
$ |
346,860 |
|
|
$ |
(179,756 |
) |
|
$ |
167,104 |
|
Total Green Brick Partners, Inc. stockholders’ equity |
|
1,300,704 |
|
|
|
— |
|
|
|
1,300,704 |
|
Total capitalization |
$ |
1,647,564 |
|
|
$ |
(179,756 |
) |
|
$ |
1,467,808 |
|
|
|
|
|
|
|
||||||
Debt to total capitalization ratio |
|
21.1 |
% |
|
|
— |
% |
|
|
— |
% |
Net debt to total capitalization ratio |
|
— |
% |
|
|
— |
% |
|
|
11.4 |
% |
About Green Brick Partners, Inc.
Green Brick Partners, Inc (NYSE: GRBK), the third largest homebuilder in
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. Forward-looking statements in this press release and in our earnings call include statements regarding (i) our position to succeed in the current environment, including our ability to maintain industry-leading performance and margins; (ii) our strategies to capitalize on market opportunities, including our advantages to do so and the impact to our results; (iii) our expectations regarding trends in our markets, such as demographic trends and demand for single-family homes; (iv) our beliefs regarding returns on capital and position amongst market peers; (v) the use of proceeds for investments and potential opportunities, including expectations for performance in markets we invest in; (vi) our priorities and strategies for growth, the drivers of that growth, and the impact on our future results, including in the
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/20240229983950/en/
Benting Hu
Vice President of Finance
469-573-6755
IR@greenbrickpartners.com
Source: Green Brick Partners, Inc.
FAQ
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In which city did Green Brick Partners, Inc. recently close its first land acquisition?
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