• Green Brick Partners, Inc. Reports Record First Quarter 2022 Results

    Источник: Nasdaq GlobeNewswire / 03 май 2022 16:05:28   America/New_York

    Home Closings Revenue of $363.1 Million, Up 68.0%
    Record Income Before Income Taxes of $82.6 Million, Up 134.3%
    Home Building Gross Margin Up 240 Bps to 27.8%
    Lots Owned and Controlled Up 42.5%

    PLANO, Texas, May 03, 2022 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (Nasdaq: GRBK) (“we,” “Green Brick” or the “Company”) today reported record results for its first quarter ended March 31, 2022.

    “Thanks to a great team effort, we achieved an annualized Q1 2022 return on equity of 28.8%, with diluted EPS at $1.20 per share which was up 135% from Q1 2021. Even better, we expect home closings revenue and EPS to accelerate into Q2 2022,” said Jim Brickman, CEO and Co-Founder.

    Results for the Quarter Ended March 31, 2022:

    (Dollars in thousands, except per share data)Three Months Ended March 31,  
     2022 2021 Change
    New homes delivered 658   516  27.5%
          
    Total revenues$393,616  $234,479  67.9%
    Total cost of revenues 285,260   175,490  62.6%
    Total gross profit$108,356  $58,989  83.7%
    Income before income taxes$82,633  $35,262  134.3%
    Net income attributable to Green Brick Partners, Inc.$61,577  $25,969  137.1%
    Diluted net income attributable to Green Brick Partners, Inc. per common share$1.20  $0.51  135.3%
          
    Residential units revenue$364,661  $217,236  67.9%
    Average sales price of homes delivered$551.8  $418.9  31.7%
    Homebuilding gross margin percentage 27.8%  25.4% 240 bps
    Selling, general and administrative expenses as a percentage of residential units revenue 9.4%  13.6% -420 bps
          
    Backlog$866,621  $995,743  -13.0%
    Lots owned and controlled 26,992   18,939  42.5%
    Homes under construction 2,516   2,303  9.2%

    “Our gross margin reached 27.8% this quarter, up 240 basis points from the prior year and up 160 basis points sequentially from the fourth quarter, as Green Brick has achieved pricing power in our dynamic core markets of Dallas-Ft. Worth and Atlanta,” said Rick Costello, CFO. “In order to capitalize on rising prices and demand, we have paced sales with price increases in excess of rising input costs. When we combine this gross margin performance with a 420 basis point improvement in SG&A leverage, our bottom line results are flourishing. We believe our focus on price over pace will sustain our industry-leading margins and strong financial performance through the remainder of 2022.”

    Mr. Brickman continued saying, “Seeing a disconnect between managements’ positive view of the business and our strong operating results versus the contrasting sentiment of some investors and analysts, the Company purchased 1.2 million of its shares during the quarter at an average price of $21.63 for a total investment of $25.8 million. In April 2022, the company purchased an additional 1.2 million shares at an average price of $19.72, bringing total shares repurchased to a total of 2.4 million shares which is 4.8% of shares outstanding as of the beginning of the year. These purchases have combined to fully utilize the $50 million amount previously authorized. In our April 27th Board meeting, the board authorized the purchase of up to $100 million of additional shares. Despite repurchasing shares, our debt to total capital was only 28.8% at the end of Q1.”

    The new stock repurchase program authorizes the Company to purchase, from time to time, up to $100 million of our outstanding common stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. Shares repurchased will be retired. The new plan has no time deadline and will continue until otherwise modified or terminated by the Company’s board at any time in its sole discretion.

    Earnings Conference Call:
    We will host our earnings conference call to discuss our first quarter ended March 31, 2022 at 12:00 p.m. Eastern Time on Wednesday, May 4, 2022. The call can be accessed by dialing 877-407-0890 for domestic participants or 201-389-0918 for international participants and should reference meeting number 13729082. Participants may also join the call via webcast at:
    https://www.webcast-eqs.com/greenbrick20220504/en

    The webcast replay will be available from the Company’s website at greenbrickpartners.com/reporting/ through May 31, 2022. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on May 4th, 2021 through 11:59 p.m. Eastern Time on May 31st, 2022. To access the replay, the domestic dial-in number is 877-660-6853, the international dial-in number is 201-612-7415 and the conference ID code is 13729082.


    GREEN BRICK PARTNERS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share data)
    (Unaudited)

      Three Months Ended March 31,
       2022   2021 
    Residential units revenue $364,661  $217,236 
    Land and lots revenue  28,955   17,243 
    Total revenues  393,616   234,479 
    Cost of residential units  263,430   162,072 
    Cost of land and lots  21,830   13,418 
    Total cost of revenues  285,260   175,490 
    Total gross profit  108,356   58,989 
    Selling, general and administrative expenses  (34,265)  (29,488)
    Equity in income of unconsolidated entities  5,687   3,891 
    Other income, net  2,855   1,870 
    Income before income taxes  82,633   35,262 
    Income tax expense  18,437   7,501 
    Net income  64,196   27,761 
    Less: Net income attributable to noncontrolling interests  2,619   1,792 
    Net income attributable to Green Brick Partners, Inc. $61,577  $25,969 
         
    Net income attributable to Green Brick Partners, Inc. per common share:    
    Basic $1.20  $0.51 
    Diluted $1.20  $0.51 
    Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:    
    Basic  50,586   50,633 
    Diluted  50,924   50,993 


    GREEN BRICK PARTNERS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
    (Unaudited)

     March 31, 2022 December 31, 2021
    ASSETS
    Cash and cash equivalents$66,083  $78,696 
    Restricted cash 14,152   14,858 
    Receivables 7,050   6,871 
    Inventory 1,327,509   1,203,743 
    Investments in unconsolidated entities 58,127   55,616 
    Right-of-use assets - operating leases 4,215   4,596 
    Property and equipment, net 2,617   2,812 
    Earnest money deposits 24,744   26,008 
    Deferred income tax assets, net 15,741   15,741 
    Intangible assets, net 516   537 
    Goodwill 680   680 
    Other assets 7,223   11,709 
    Total assets$1,528,657  $1,421,867 
    LIABILITIES AND EQUITY
    Liabilities:   
    Accounts payable$56,899  $45,682 
    Accrued expenses 89,558   61,351 
    Customer and builder deposits 63,618   64,610 
    Lease liabilities - operating leases 4,415   4,745 
    Borrowings on lines of credit, net 19,421   (738)
    Senior unsecured notes, net 335,538   335,446 
    Notes payable 14,668   210 
    Total liabilities 584,117   511,306 
    Commitments and contingencies   
    Redeemable noncontrolling interest in equity of consolidated subsidiary 22,179   21,867 
    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 March 31, 2022 and December 31 2021, respectively 47,696   47,696 
    Common stock, $0.01 par value: 100,000,000 shares authorized; 51,245,206 and 51,151,911 issued and 49,660,230 and 50,759,972 outstanding as of March 31, 2022 and December 31, 2021, respectively 512   512 
    Treasury stock, at cost, 1,584,976 and 391,939 shares as of March 31, 2022 and December 31, 2021, respectively (28,968)  (3,167)
    Additional paid-in capital 292,155   289,641 
    Retained earnings 600,788   539,866 
    Total Green Brick Partners, Inc. stockholders’ equity 912,183   874,548 
    Noncontrolling interests 10,178   14,146 
    Total equity 922,361   888,694 
    Total liabilities and equity$1,528,657  $1,421,867 


    GREEN BRICK PARTNERS, INC.
    SUPPLEMENTAL INFORMATION
    (Unaudited)

    Residential Units Revenue and New Homes Delivered
    (dollars in thousands)
    		 Three Months Ended March 31,    
     2022 2021 Change %
    Home closings revenue $363,063 $216,134 $146,929 68.0%
    Mechanic’s lien contracts revenue  1,598  1,102  496 45.0%
    Residential units revenue $364,661 $217,236 $147,425 67.9%
    New homes delivered  658  516  142 27.5%
    Average sales price of homes delivered $551.8 $418.9 $132.9 31.7%


    Land and Lots Revenue
    (dollars in thousands)
    		 Three Months Ended March 31,    
     2022 2021 Change %
    Lots revenue $1,955 $8,443 $(6,488) (76.8)%
    Land revenue  27,000  8,800  18,200  206.8%
    Land and lots revenue $28,955 $17,243 $11,712  67.9%
    Lots closed  33  79  (46) (58.2)%
    Average sales price of lots closed $59.2 $106.9 $(47.7) (44.6)%


    New Home Orders and Backlog
    (dollars in thousands)
    		 Three Months Ended March 31,    
      2022   2021  Change %
    Net new home orders  601   1,082   (481) (44.5)%
    Cancellation rate  8.0%  6.0%  2.0% 33.3%
    Absorption rate per average active selling community per quarter  8.0   11.3   (3.3) (29.2)%
    Average active selling communities  75   96   (21) (21.9)%
    Active selling communities at end of period  76   90   (14) (15.6)%
    Backlog $866,621  $995,743  $(129,122) (13.0)%
    Backlog (units)  1,423   2,029   (606) (29.9)%
    Average sales price of backlog $609.0  $490.8  $118.2  24.1%


      March 31, 2022 December 31, 2021
    Lots owned (1)    
    Central 19,552  17,767 
    Southeast 2,417  2,472 
    Total lots owned 21,969  20,239 
    Lots controlled (1)    
    Central 3,864  7,321 
    Southeast 1,159  1,061 
    Total lots controlled 5,023  8,382 
    Total lots owned and controlled (1) 26,992  28,621 
    Percentage of lots owned 81.4% 70.7%


     

    (1)   Excludes lots with homes under construction.


    GREEN BRICK PARTNERS, INC.
    SUPPLEMENTAL INFORMATION
    (Unaudited)

    The following table presents additional information on the lots we owned as of March 31, 2022 and December 31, 2021.

     March 31, 2022 December 31, 2021
    Total lots owned21,969  20,239 
    Add certain lots included in Total Lots Controlled   
    Land under option for future acquisition and development768  3,826 
    Lots under option through unconsolidated development joint ventures1,762  1,816 
    Total lots self-developed24,499  25,881 
    Self-developed lots as a percentage of total lots owned and controlled90.8% 90.4%

    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 months ended March 31, 2022 and 2021 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

    (Unaudited, in thousands):
    		 Three Months Ended March 31,
      2022   2021 
    Residential units revenue $364,661  $217,236 
    Less: Mechanic’s lien contracts revenue  (1,598)  (1,102)
    Home closings revenue $363,063  $216,134 
    Homebuilding gross margin $100,973  $54,904 
    Homebuilding gross margin percentage  27.8%  25.4%
         
    Homebuilding gross margin  100,973   54,904 
    Add back: Capitalized interest charged to cost of revenues  2,861   1,813 
    Adjusted homebuilding gross margin $103,834  $56,717 
    Adjusted homebuilding gross margin percentage  28.6%  26.2%

    The following table presents the pre-tax income for the three months ended March 31, 2022 and 2021, which represents net income attributable to Green Brick for the period excluding the provision for income taxes attributable to Green Brick, and reconciles these amounts to net income attributable to Green Brick, the most directly comparable GAAP measure.

    (Unaudited, in thousands):
    		 Three Months Ended March 31,
     2022 2021
    Net income attributable to Green Brick Partners, Inc. $61,577 $25,969
    Income tax expense attributable to Green Brick Partners, Inc.  18,435  7,500
    Pre-tax income attributable to Green Brick Partners, Inc. $80,012 $33,469

    About Green Brick Partners, Inc.

    Green Brick Partners, Inc. is a diversified homebuilding and land development company operating through eight homebuilder brands in major markets in Texas, the Southeast and Colorado. 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 owns a noncontrolling interest in Challenger Homes in Colorado Springs, Colorado, and retains interests in related financial services platforms, including Green Brick Title, Green Brick Mortgage, and BHome Mortgage. The Company 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/homebuilders.

    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 expectation that our ability to increase price over pace will sustain our industry-leading margins and strong financial performance through the remainder of 2022; (ii) our belief that our land position and backlog will position us to grow our business in 2022 and beyond, (iii) our intent to increase the number of spec homes in our portfolio and the impact of that strategy on our ability to capture the most current price increases and to maximize profitability, (iv) impact of increased demand and inflation for labor and the raw materials, products and appliances for new homes on our costs, markets and delivery time of our home, (v) our strategy for growth, the drivers and acceleration of that growth, and the impact on our results during 2022, and (vi) our ability to capitalize on market opportunities and the impact on our results. 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 increasing 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 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) a failure to recruit, retain or develop highly skilled and competent employees; (8) government regulation risks; (9) a lack of availability or volatility of mortgage financing or a rise in interest rates; (10) severe weather events or natural disasters; (11) difficulty in obtaining sufficient capital to fund our growth; (12) our ability to meet our debt service obligations; (13) a decline in the value of our inventories and resulting write-downs of the carrying value of our real estate assets; (14) changes in accounting standards that adversely affect our reported earnings or financial condition. 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.

    Contact: Richard A. Costello
    Chief Financial Officer
    (469) 573-6755


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