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Green Brick Partners, Inc. Reports Record Fourth Quarter 2021 Results
Источник: Nasdaq GlobeNewswire / 01 мар 2022 16:05:02 America/New_York
Q4 Record Residential Units Revenue Of $420.1 Million, Up 70.4%
Q4 Income Before Taxes Of $82.6 Million, Up 117.6%
Full Year Income Before Taxes of $257.0 Million, Up 79.9%
Q4 SG&A Expense 8.8%, Improved 350 Bps
Record Lots Owned and Controlled Up, 97.8%PLANO, Texas, March 01, 2022 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or the “Company”) today reported record results for its fourth quarter ended December 31, 2021.
“Our fourth quarter year-over-year total revenue growth of 78% reflected not just a record quarter for closings, but also a continuation of our dynamic growth which has now seen us grow total revenue by a compounded annual growth rate of 33% over the last two years and 29% over the past 6 years,” said Jim Brickman, CEO and Co-Founder. “During 2021, we continued to invest in our future growth by almost doubling our number of lots owned and controlled. Most recently, this includes our announcement of our expansion into Austin, TX, the 6th largest home starts market in the country. Our investment in lot growth in 2021 was accomplished with low financial leverage and high returns on equity. We have maintained our low debt to capital ratio at 27.7%. And our net income return on average equity was 31.9% for the fourth quarter annualized and 25.9% for the year.”
Results for the Year Ended December 31, 2021:
For the year ended December 31, 2021, our net income attributable to Green Brick per common share (“EPS”), total revenues, residential units revenue, and net income attributable to Green Brick reflect a record for any twelve-month period since the Company’s inception. Lots owned and control also represent a Company record as of the end of any reporting period.
(Dollars in thousands, except per share data) Twelve Months Ended December 31, 2021 2020 Change New homes delivered 2,834 2,208 28.4 % Total revenues $ 1,402,876 $ 976,021 43.7 % Total cost of revenues 1,040,817 741,417 40.4 % Total gross profit $ 362,059 $ 234,604 54.3 % Income before income taxes $ 256,986 $ 142,813 79.9 % Net income attributable to Green Brick Partners, Inc. $ 190,210 $ 113,693 67.3 % Diluted net income attributable to Green Brick Partners, Inc. per common share $ 3.72 $ 2.24 66.1 % Residential units revenue $ 1,309,687 $ 930,176 40.8 % Average sales price of homes delivered $ 460.7 $ 418.4 10.1 % Homebuilding gross margin percentage 26.4 % 24.2 % 220 bps Selling, general and administrative expenses as a percentage of residential units revenue 10.3 % 12.1 % -180 bps Backlog $ 869,856 $ 686,861 26.6 % Lots owned and controlled 28,621 14,468 97.8 % Homes under construction 2,278 1,780 28.0 % Results for the Quarter Ended December 31, 2021:
For the quarter ended December 31, 2021, our net income attributable to Green Brick per common share (“EPS”), total revenues, residential units revenue, and net income attributable to Green Brick reflect a record for any quarter since the Company’s inception, as detailed below.
(Dollars in thousands, except per share data) Three Months Ended December 31, 2021 2020 Change New homes delivered 823 585 40.7 % Total revenues $ 452,251 $ 254,100 78.0 % Total cost of revenues 341,493 190,246 79.5 % Total gross profit $ 110,758 $ 63,854 73.5 % Income before income taxes $ 82,589 $ 37,949 117.6 % Net income attributable to Green Brick Partners, Inc. $ 63,471 $ 29,310 116.6 % Diluted net income attributable to Green Brick Partners, Inc. per common share $ 1.24 $ 0.58 113.8 % Residential units revenue $ 420,051 $ 246,437 70.4 % Average sales price of homes delivered $ 509.3 $ 419.7 21.3 % Homebuilding gross margin percentage 26.2 % 25.1 % 110 bps Selling, general and administrative expenses as a percentage of residential units revenue 8.8 % 12.3 % - 350 bps “By metering sales, we have kept our pipeline of backlog revenues filled while successfully increasing spec inventory. From a low of 28% spec units under construction at the end of the first quarter of 2021, we have increased that percentage to 39%. We believe that increasing our spec levels will lead to more efficient operations, higher margins and returns, and less risk of construction costs,” said Rick Costello, CFO. “Our presence in high job growth markets coupled with credit worthy buyers who can afford larger homes and bigger mortgages allow us to continue to raise prices with new releases of lots. So, selling some houses 2 to 4 months before completion will get a better margin than selling all the houses 7 to 12 months ahead of completion. Our return to a higher level of spec units under construction should position us to continue capturing increased sales prices. Managing this type of flow is a corporate strength and making decisions like this contribute to our superior gross margins and return on capital.”
Green Brick, like every other company in the United States and the global economy, has been impacted by the coronavirus, or COVID-19, pandemic and the impact of governmental actions taken to combat the pandemic. After an initial decline in orders and construction at the onset of the crisis, orders have subsequently achieved all-time highs. The significant increase in new home demand that we have seen and that the industry has experienced since the second half of 2020 has, in turn, led to substantial price increases, but also increased demand for labor and the raw materials, products and appliances for new homes. As a result, we have and expect to continue to experience increases in cost and decreased availability of skilled labor as well as increases, shortages, and significant extensions to our lead time for the delivery of key materials and inputs.
Earnings Conference Call:
We will host our earnings conference call to discuss our fourth quarter ended December 31, 2021 at 12:00 p.m. Eastern Time on Wednesday, March 2, 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 13726490. Participants may also join the call via webcast at: https://www.webcast-eqs.com/greenbrickpartners20220302/en
A replay of the call will be available from approximately 3:00 p.m. Eastern Time on March 2, 2022 through 11:59 p.m. Eastern Time on March 30, 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 13726490.
Non-GAAP Financial Measures and Key Financial Metrics:
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.
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, 2021 2020 2021 2020 Residential units revenue $ 420,051 $ 246,437 $ 1,309,687 $ 930,176 Land and lots revenue 32,200 7,663 93,189 45,845 Total revenues 452,251 254,100 1,402,876 976,021 Cost of residential units 310,228 184,534 964,364 705,866 Cost of land and lots 31,265 5,712 76,453 35,551 Total cost of revenues 341,493 190,246 1,040,817 741,417 Total gross profit 110,758 63,854 362,059 234,604 Selling, general and administrative expenses (37,087 ) (30,416 ) (134,269 ) (112,134 ) Change in fair value of contingent consideration — (158 ) — (368 ) Equity in income of unconsolidated entities 5,674 3,616 19,713 16,654 Other income, net 3,244 1,053 9,483 4,057 Income before income taxes 82,589 37,949 256,986 142,813 Income tax expense 15,512 7,659 52,605 25,016 Net income 67,077 30,290 204,381 117,797 Less: Net income attributable to noncontrolling interests 3,606 980 14,171 4,104 Net income attributable to Green Brick Partners, Inc. $ 63,471 $ 29,310 $ 190,210 $ 113,693 Net income attributable to Green Brick Partners, Inc. per common share: Basic $ 1.25 $ 0.58 $ 3.75 $ 2.25 Diluted $ 1.24 $ 0.58 $ 3.72 $ 2.24 Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: Basic 50,732 50,617 50,700 50,568 Diluted 51,104 50,967 51,060 50,795 GREEN BRICK PARTNERS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)December 31, 2021 December 31, 2020 ASSETS Cash and cash equivalents $ 78,696 $ 19,479 Restricted cash 14,858 14,156 Receivables 6,871 5,224 Inventory 1,203,743 844,635 Investments in unconsolidated entities 55,616 46,443 Right-of-use assets - operating leases 4,596 2,538 Property and equipment, net 2,812 3,595 Earnest money deposits 26,008 22,242 Deferred income tax assets, net 15,741 15,376 Intangible assets, net 537 622 Goodwill 680 680 Other assets 11,709 13,857 Total assets $ 1,421,867 $ 988,847 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 45,682 $ 24,521 Accrued expenses 61,351 40,416 Customer and builder deposits 64,610 38,131 Lease liabilities - operating leases 4,745 2,591 Borrowings on lines of credit, net (738 ) 106,687 Senior unsecured notes, net 335,446 111,056 Notes payable 210 2,125 Contingent consideration — 368 Total liabilities 511,306 325,895 Commitments and contingencies Redeemable noncontrolling interest in equity of consolidated subsidiary 21,867 13,543 Equity: Green Brick Partners, Inc. stockholders’ equity Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 and zero issued and outstanding as of December 31, 2021 and 2020, respectively 47,696 — Common stock, $0.01 par value: 100,000,000 shares authorized; 51,151,911 and 51,053,858 issued and 50,759,972 and 50,661,919 outstanding as of December 31, 2021 and 2020, respectively 512 511 Treasury stock, at cost, 391,939 shares (3,167 ) (3,167 ) Additional paid-in capital 289,641 293,242 Retained earnings 539,866 349,656 Total Green Brick Partners, Inc. stockholders’ equity 874,548 640,242 Noncontrolling interests 14,146 9,167 Total equity 888,694 649,409 Total liabilities and equity $ 1,421,867 $ 988,847 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, 2021 2020 Change % 2021 2020 Change % Home closings revenue $ 419,132 $ 245,549 $ 173,583 70.7 % $ 1,305,620 $ 923,901 $ 381,719 41.3 % Mechanic’s lien contracts revenue 919 888 31 3.5 % 4,067 6,275 (2,208 ) (35.2 )% Residential units revenue $ 420,051 $ 246,437 $ 173,614 70.4 % $ 1,309,687 $ 930,176 $ 379,511 40.8 % New homes delivered 823 585 238 40.7 % 2,834 2,208 626 28.4 % Average sales price of homes delivered $ 509.3 $ 419.7 $ 89.6 21.3 % $ 460.7 $ 418.4 $ 42.3 10.1 % Land and Lots Revenue
(dollars in thousands)Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 Change % 2021 2020 Change % Lots revenue $ 9,682 $ 7,663 $ 2,019 26.3 % $ 24,866 $ 45,461 $ (20,595 ) (45.3 )% Land revenue 22,518 — 22,518 100.0 % 68,323 384 67,939 17,692.4 % Land and lots revenue $ 32,200 $ 7,663 $ 24,537 320.2 % $ 93,189 $ 45,845 $ 47,344 103.3 % Lots closed 150 73 77 105.5 % 323 375 (52 ) (13.9 )% Average sales price of lots closed $ 64.5 $ 105.0 $ (40.5 ) (38.6 )% $ 77.0 $ 121.2 $ (44.2 ) (36.5 )% New Home Orders and Backlog
(dollars in thousands)Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 Change % 2021 2020 Change % Net new home orders 476 848 (372 ) (43.9 )% 2,851 2,885 (34 ) (1.2 )% Cancellation rate 12.3 % 8.6 % 3.7 % 43.0 % 7.7 % 13.0 % (5.3 )% (40.8 )% Absorption rate per average active selling community per quarter 6.2 8.3 (2.1 ) (25.3 )% 8.2 7.5 0.7 9.3 % Average active selling communities 77 102 (25 ) (24.5 )% 87 96 (9 ) (9.4 )% Active selling communities at end of period 74 103 (29 ) (28.2 )% Backlog $ 869,856 $ 686,861 $ 182,995 26.6 % Backlog (units) 1,480 1,463 17 1.2 % Average sales price of backlog $ 587.7 $ 469.5 $ 118.2 25.2 % December 31, 2021 December 31, 2020 Lots owned (1) Central 17,767 6,823 Southeast 2,472 2,097 Total lots owned 20,239 8,920 Lots controlled (1) Central 7,321 4,398 Southeast 1,061 1,150 Total lots controlled 8,382 5,548 Total lots owned and controlled (1) 28,621 14,468 Percentage of lots owned 70.7 % 61.7 % (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 December 31, 2021 and December 31, 2020.
December 31, 2021 December 31, 2020 Total lots owned 20,239 8,920 Add certain lots included in Total Lots Controlled Land under option for future acquisition and development 3,826 740 Lots under option through unconsolidated development joint ventures 1,816 1,838 Total lots self-developed 25,881 11,498 Self-developed lots as a percentage of total lots owned and controlled 90.4 % 79.5 % Reconciliation of Non-GAAP Financial Measures
The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three and twelve months ended December 31, 2021 and 2020 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, 2021 2020 2021 2020 Residential units revenue $ 420,051 $ 246,437 $ 1,309,687 $ 930,176 Less: Mechanic’s lien contracts revenue (919 ) (888 ) (4,067 ) (6,275 ) Home closings revenue $ 419,132 $ 245,549 $ 1,305,620 $ 923,901 Homebuilding gross margin $ 109,671 $ 61,680 $ 344,505 $ 223,130 Homebuilding gross margin percentage 26.2 % 25.1 % 26.4 % 24.2 % Homebuilding gross margin 109,671 61,680 344,505 223,130 Add back: Capitalized interest charged to cost of revenues 3,326 2,380 10,241 10,182 Adjusted homebuilding gross margin $ 112,997 $ 64,060 $ 354,746 $ 233,312 Adjusted homebuilding gross margin percentage 27.0 % 26.1 % 27.2 % 25.3 % The following table presents the pre-tax income for the three and twelve months ended December 31, 2021 and 2020, 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 December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Net income attributable to Green Brick Partners, Inc. $ 63,471 $ 29,310 $ 190,210 $ 113,693 Income tax expense attributable to Green Brick Partners, Inc. 15,510 7,656 52,599 25,010 Pre-tax income attributable to Green Brick Partners, Inc. $ 78,981 $ 36,966 $ 242,809 $ 138,703 About Green Brick Partners, Inc.
Green Brick Partners, Inc. is a diversified homebuilding and land development company operating through eight homebuilder brands in five major markets. 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 include statements regarding (i) our belief that our land position and back-log will position us to grow our business in 2022 and beyond, (ii) 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 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) continuing impacts from the COVID-19 pandemic; (2) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (3) changes in macroeconomic conditions, including interest rates and unemployment rates, that could adversely impact demand for new homes or the ability of potential buyers to qualify; (4) shortages, delays or increased costs of raw materials, especially in light of COVID-19 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; (5) a shortage of 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 an inability to grow our operations or expand our Trophy brand; (8) a failure to recruit, retain or develop highly skilled and competent employees; (9) government regulation risks; (10) a lack of availability or volatility of mortgage financing or a rise in interest rates; (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; (15) 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
