• Green Brick Partners, Inc. Reports Record First Quarter 2021 Results

    Источник: Nasdaq GlobeNewswire / 04 май 2021 15:15:25   America/Chicago

    QUARTERLY DILUTED EARNINGS PER SHARE OF $0.51 VS $0.31, UP 64.5%
    BACKLOG OF $995.7 MILLION, UP 133.0%
    NET NEW HOME ORDERS UP 71.2%
    HOME BUILDING GROSS MARGIN UP 230 BPS
    LOTS OWNED AND CONTROLLED UP 118.1%

    PLANO, Texas, May 04, 2021 (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, 2021.

    Jim Brickman, Chief Executive Officer, said, “We just reported the best first quarter in the history of the Company where net income attributable to Green Brick over the last twelve months through March 31, 2021 grew to $123.7 million, a 100% increase over the prior twelve-month period. Our first quarter net orders of 1,082 homes and ending backlog of $996 million both represent all-time records for the Company, up 28% and 45% over Q4 2020 record levels. To meet the unprecedented demand, Green Brick started a record 2,043 homes in the last six months and ended the quarter with 2,303 units under construction, a 62% increase from a year ago. We feel confident that our efforts will produce heightened earnings beginning next quarter and each successive quarter this year.”

    Results for the Quarter Ended March 31, 2021:

    For the three months ended March 31, 2021, our net new home orders and home starts reflect a record for any quarter since the Company’s inception. Homes under construction, backlog, and lots owned and controlled also represent a record as of the end of any quarter.

    (Dollars in thousands, except per share data)Three Months Ended March 31,  
     2021 2020 Increase
    Net new home orders1,082   632   71.2 %
    New homes delivered516   448   15.2 %
          
    Total revenues$234,479   $213,267   9.9 %
    Total cost of revenues175,490   164,298   6.8 %
    Total gross profit$58,989   $48,969   20.5 %
    Net income attributable to Green Brick Partners, Inc.$25,969   $15,917   63.2 %
    Diluted net income attributable to Green Brick Partners, Inc. per share$0.51   $0.31   64.5 %
          
    Residential units revenue$217,236   $191,187   13.6 %
    Homebuilding gross margin percentage25.4 % 23.1 % 230 bps
          
    Backlog$995,743   $427,322   133.0 %
    Lots owned and controlled18,939   8,684   118.1 %
    Homes under construction2,303   1,418   62.4 %
    Average active selling communities96   94   2.1 %
    Net income attributable to Green Brick Partners, Inc. as a percentage of the average total Green Brick Partners, Inc. stockholders’ equity15.9 % 11.9 % 400 bps

    “This rapid uptick in sales and starts has not been at the cost of our land pipeline,” said Rick Costello, Chief Financial Officer. “During the quarter, we acquired approximately 5,600 homesites, expanding our total lots owned and controlled by 118% over the   past twelve months and 31% in the past three months alone. This increase was achieved while starting a record number of homes and maintaining a debt to capital ratio of 26.4%, one of the lowest among the public homebuilders. Our record starts of 1,039 homes this quarter were despite the severe Texas snowstorm that impacted construction schedules, leading to the deferral of approximately 40 home closings into the second quarter. We believe Green Brick’s capacity to source highly profitable land without straining our balance sheet will continue to propel our operating and financial results beyond the bar set this quarter.”

    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 since the second half of 2020 has, in turn, led to increased demand for the raw materials, products and appliances for new homes. Due to the increased demand for certain materials, we have recently and may continue to experience price increases, shortages and significant extensions to our lead time for the delivery of materials such as lumber, appliances and windows. As construction follows orders, we expect closings to grow substantially beginning in the second quarter of 2021.

    Earnings Conference Call:
    We will host our earnings conference call to discuss our first quarter ended March 31, 2021 at 12:00 p.m. Eastern Time on Wednesday, May 5, 2021. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 3887441. A replay of the call will be available from approximately 2:45 p.m. Eastern Time on May 5, 2021 through 11:59 p.m. Eastern Time on May 19, 2021. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 3887441.

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

     Three Months Ended March 31,
     2021 2020
    Residential units revenue$217,236    $191,187   
    Land and lots revenue17,243    22,080   
    Total revenues234,479    213,267   
    Cost of residential units162,072    147,187   
    Cost of land and lots13,418    17,111   
    Total cost of revenues175,490    164,298   
    Total gross profit58,989    48,969   
    Selling, general and administrative expenses(29,488)  (26,869) 
    Equity in income of unconsolidated entities3,891    2,565   
    Other income (loss), net1,870    (1,909) 
    Income before income taxes35,262    22,756   
    Income tax expense7,501    6,040   
    Net income27,761    16,716   
    Less: Net income attributable to noncontrolling interests1,792    799   
    Net income attributable to Green Brick Partners, Inc.$25,969    $15,917   
        
    Net income attributable to Green Brick Partners, Inc. per common share:   
    Basic$0.51    $0.32   
    Diluted$0.51    $0.31   
    Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:   
    Basic50,633    50,454   
    Diluted50,993    50,646   


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

     March 31, 2021 December 31, 2020
    ASSETS
    Cash and cash equivalents$28,688    $19,479   
    Restricted cash14,750    14,156   
    Receivables7,561    5,224   
    Inventory920,890    844,635   
    Investments in unconsolidated entities48,457    46,443   
    Right-of-use assets - operating leases2,257    2,538   
    Property and equipment, net3,506    3,595   
    Earnest money deposits23,208    22,242   
    Deferred income tax assets, net15,376    15,376   
    Intangible assets, net601    622   
    Goodwill680    680   
    Other assets13,942    13,857   
    Total assets$1,079,916    $988,847   
    LIABILITIES AND EQUITY
    Liabilities:   
    Accounts payable$39,000    $24,521   
    Accrued expenses50,235    40,416   
    Customer and builder deposits56,073    38,131   
    Lease liabilities - operating leases2,289    2,591   
    Borrowings on lines of credit, net3,809    106,687   
    Senior unsecured notes, net235,561    111,056   
    Notes payable119    2,125   
    Contingent consideration368    368   
    Total liabilities387,454    325,895   
    Commitments and contingencies   
    Redeemable noncontrolling interest in equity of consolidated subsidiary15,701    13,543   
    Equity:   
    Green Brick Partners, Inc. stockholders’ equity   
    Preferred stock, $0.01 par value: 5,000,000 shares authorized; none issued and outstanding—    —   
    Common stock, $0.01 par value: 100,000,000 shares authorized; 51,124,215 and 51,053,858 issued and 50,732,276 and 50,661,919 outstanding as of March 31, 2021 and December 31, 2020, respectively511    511   
    Treasury stock, at cost, 391,939 shares(3,167)  (3,167) 
    Additional paid-in capital293,162    293,242   
    Retained earnings375,625    349,656   
    Total Green Brick Partners, Inc. stockholders’ equity666,131    640,242   
    Noncontrolling interests10,630    9,167   
    Total equity676,761    649,409   
    Total liabilities and equity$1,079,916    $988,847   


    GREEN BRICK PARTNERS, INC.
    SUPPLEMENTAL INFORMATION
    (Unaudited)

    Residential Units Revenue and New Homes Delivered
    (dollars in thousands)

    		 Three Months Ended March 31,    
     2021 2020 Change %
    Home closings revenue $216,134   $189,248   $26,886    14.2  %
    Mechanic’s lien contracts revenue 1,102   1,939   (837)  (43.2)%
    Residential units revenue $217,236   $191,187   $26,049    13.6  %
    New homes delivered 516   448   68    15.2  %
    Average sales price of homes delivered $418.9   $422.4   $(3.5)  (0.8)%


    Land and Lots Revenue
    (dollars in thousands)

    		 Three Months Ended March 31,    
     2021 2020 Change %
    Lots revenue $8,443   $22,080   $(13,637)  (61.8)%
    Land revenue 8,800   —   8,800    100.0%
    Land and lots revenue $17,243   $22,080   $(4,837)  (21.9)%
    Lots closed 79   138   (59)  (42.8)%
    Average sales price of lots closed $106.9   $160.0   $(53.1)  (33.2)%


    New Home Orders and Backlog
    (dollars in thousands)

    		 Three Months Ended March 31,    
     2021 2020 Change %
    Net new home orders 1,082   632   450    71.2  %
    Cancellation rate 6.0 % 16.5 % (10.5)% (63.6)%
    Absorption rate per average active selling community per quarter 11.3   6.7   4.6    68.7  %
    Average active selling communities 96   94   2    2.1  %
    Active selling communities at end of period 90   93   (3)  (3.2)%
    Backlog $995,743   $427,322   $568,421    133.0  %
    Backlog (units) 2,029   970   1,059    109.2  %
    Average sales price of backlog $490.8   $440.5   $50.3    11.4  %


       March 31, 2021 December 31, 2020
    Lots owned       
    Central 6,682   6,823  
    Southeast 1,883   2,097  
    Total lots owned 8,565   8,920  
    Lots controlled       
    Central 9,045   4,398  
    Southeast 1,329   1,150  
    Total lots controlled 10,374   5,548  
    Total lots owned and controlled (1) 18,939   14,468  
    Percentage of lots owned 45.2 % 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 March 31, 2021 and December 31, 2020.

     March 31, 2021 December 31, 2020
    Total lots owned8,565   8,920  
    Add certain lots included in Total Lots Controlled   
    Land under option for future acquisition and development5,838   740  
    Lots under option through unconsolidated development joint ventures1,838   1,838  
    Total lots self-developed16,241   11,498  
    Self-developed lots as a percentage of total lots owned and controlled85.8 % 79.5 %

    Reconciliation of Non-GAAP Financial Measures

    The following table represents the non-GAAP measure of adjusted homebuilding gross margin for three months ended March 31, 2021 and 2020 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

    (Unaudited, in thousands):

    		 Three Months Ended March 31,
     2021 2020
    Residential units revenue $217,236    $191,187   
    Less: Mechanic’s lien contracts revenue (1,102)  (1,939) 
    Home closings revenue $216,134    $189,248   
    Homebuilding gross margin $54,904    $43,657   
    Homebuilding gross margin percentage 25.4  % 23.1  %
         
    Homebuilding gross margin 54,904    43,657   
    Add back: Capitalized interest charged to cost of revenues 1,813    2,181   
    Adjusted homebuilding gross margin $56,717    $45,838   
    Adjusted homebuilding gross margin percentage 26.2  % 24.2  %

    The following table presents the pre-tax income for the three months ended March 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 March 31,
     2021 2020
    Net income attributable to Green Brick Partners, Inc. $25,969   $15,917  
    Income tax expense attributable to Green Brick Partners, Inc. 7,500   6,038  
    Pre-tax income attributable to Green Brick Partners, Inc. $33,469   $21,955  

    The following table presents the non-GAAP measure of net income attributable to Green Brick Partners, Inc. for the three months ended March 31, 2021 and 2020, divided by the average total Green Brick Partners, Inc. stockholder’s equity to calculate our return on average equity. We believe this non-GAAP financial measure is relevant in measuring our profitability in relation to stockholder’s equity and should only be used to supplement Green Brick’s GAAP results.

      Three Months Ended March 31,
    (Unaudited, in thousands): 2021 2020
    Net income attributable to Green Brick Partners, Inc. $25,969   $15,917  
    Beginning total Green Brick Partners, Inc. stockholders’ equity 640,242   523,168  
    Ending total Green Brick Partners, Inc. stockholders’ equity 666,131   $542,982  
    Average total Green Brick Partners, Inc. stockholders’ equity $653,187   $533,075  
    Net income attributable to Green Brick Partners, Inc. as a percentage of the average total Green Brick Partners, Inc. stockholders’ equity 15.9 % 11.9 %

    About Green Brick Partners, Inc.

    Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns five homebuilders in Dallas, 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 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, Providence Group Title, and Green Brick Mortgage. Green Brick is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for our residential neighborhoods and master planned communities. For more information about Green Brick Partners Inc.’s homebuilding partners, please visit https://greenbrickpartners.com/team-builders/.

    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 strategy for growth, the drivers and timing of that growth, and the impact on our results over the remainder of 2021, (ii) our pace and ability to grow our operations to scale, our ability to capitalize on market opportunities and the impact on our results, (iii) our land and lot acquisition strategy and its ability to grow our operational and financial results, and (iv) our growth in closings, and the timing and significance of that growth. 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 and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.

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


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