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Green Brick Partners, Inc. Reports Record Second Quarter 2022 Results
ソース: Nasdaq GlobeNewswire / 03 8 2022 15:05:03 America/Chicago
RECORD HOME CLOSINGS REVENUE OF $510.5 MILLION, UP 53.6%
RECORD INCOME BEFORE TAXES OF $138.3 MILLION, UP 86.9%
HOME BUILDING GROSS MARGIN UP 550 BPS TO 32.3%
RECORD DILUTED EPS OF $2.08, UP 103.9%PLANO, Texas, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or the “Company”) today reported record results for its second quarter ended June 30, 2022.
“We are pleased to report another outstanding quarter highlighted by record EPS of $2.08 per diluted share, which was up 73.3% sequentially over the first quarter of 2022 on a 33.4% sequential growth in total revenues. During the second quarter, we delivered a record number of homes and achieved a record high home building gross margin of 32.3%, which was up 450 basis points sequentially,” said Jim Brickman, CEO and Co-Founder. “Year-to-date, we were able to generate annualized returns on equity of 37.4%. Additionally, to further enhance shareholder value, we repurchased another 3.7 million shares of Green Brick common stock for $75.7 million during the second quarter and third quarter through July 29, 2022. Year-to-date through July 29, 2022, we have repurchased a total of $101.5 million of common stock at an average price under $21 per share, representing 9.5% of total shares outstanding as of the end of 2021.”
“We believe that Green Brick is strategically positioned to navigate well within the evolving environment. We operate in some of the best markets in the United States. Within those markets, over 80% of our revenue year-to-date is generated from more supply constrained in-fill submarkets that we believe are more insulated from competition and more resilient during economic downturns,” continued Mr. Brickman. “Additionally, despite purchasing 9.5% of our outstanding shares, we have one of the lowest leverage ratios among our peers with a debt to total capital ratio of 28.9% as of June 30, 2022, where almost all of outstanding debt is fixed interest rate long term with an attractive weighted average interest rate of 3.4%. We believe that we have a superior lot and land position to support future growth that also provides us with the ability to be defensive and offensive in a changing environment. Green Brick has a track record of generating one of the best returns on equity in the homebuilding industry and we will continue to devote efforts to initiatives that are accretive to our shareholders.”
Results for the Quarter Ended June 30, 2022:
For the quarter ended June 30, 2022, 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 June 30, 2022 2021 Change New homes delivered 881 757 16.4 % Total revenues $ 525,144 $ 373,806 40.5 % Total cost of revenues 356,248 272,830 30.6 % Total gross profit $ 168,896 $ 100,976 67.3 % Income before income taxes $ 138,282 $ 73,977 86.9 % Net income attributable to Green Brick Partners, Inc. $ 101,256 $ 52,263 93.7 % Diluted net income attributable to Green Brick Partners, Inc. per common share $ 2.08 $ 1.02 103.9 % Residential units revenue $ 512,515 $ 333,500 53.7 % Average sales price of homes delivered $ 579.5 $ 438.9 32.0 % Homebuilding gross margin percentage 32.3 % 26.8 % 550 bps Selling, general and administrative expenses as a percentage of residential units revenue 8.2 % 10.2 % -200 bps Backlog $ 710,199 $ 974,349 $ (264,150 ) Homes under construction 2,436 2,486 (2.0 )% Results for the Six Months Ended June 30, 2022:
(Dollars in thousands, except per share data) Six Months Ended June 30, 2022 2021 Change New homes delivered 1,539 1,273 20.9 % Total revenues $ 918,760 $ 608,285 51.0 % Total cost of revenues 641,508 448,320 43.1 % Total gross profit $ 277,252 $ 159,965 73.3 % Income before income taxes $ 220,915 $ 109,239 102.2 % Net income attributable to Green Brick Partners, Inc. $ 162,833 $ 78,232 108.1 % Diluted net income attributable to Green Brick Partners, Inc. per common share $ 3.25 $ 1.53 112.4 % Residential units revenue $ 877,176 $ 550,736 59.3 % Average sales price of homes delivered $ 567.6 $ 430.8 31.8 % Homebuilding gross margin percentage 30.5 % 26.3 % 420 bps Selling, general and administrative expenses as a percentage of residential units revenue 8.7 % 11.5 % -280 bps Earnings Conference Call:
We will host our earnings conference call to discuss our second quarter ended June 30, 2022 at 12:00 p.m. Eastern Time on Thursday, August 4, 2022. 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/871633067
A telephone replay of the call will be available through September 4, 2022. 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, 2022 2021 2022 2021 Residential units revenue $ 512,515 $ 333,500 $ 877,176 $ 550,736 Land and lots revenue 12,629 40,306 41,584 57,549 Total revenues 525,144 373,806 918,760 608,285 Cost of residential units 347,142 244,165 610,572 406,237 Cost of land and lots 9,106 28,665 30,936 42,083 Total cost of revenues 356,248 272,830 641,508 448,320 Total gross profit 168,896 100,976 277,252 159,965 Selling, general and administrative expenses (41,798 ) (33,985 ) (76,063 ) (63,473 ) Equity in income of unconsolidated entities 8,523 4,593 14,210 8,484 Other income, net 2,661 2,393 5,516 4,263 Income before income taxes 138,282 73,977 220,915 109,239 Income tax expense 30,278 15,694 48,715 23,195 Net income 108,004 58,283 172,200 86,044 Less: Net income attributable to noncontrolling interests 6,748 6,020 9,367 7,812 Net income attributable to Green Brick Partners, Inc. $ 101,256 $ 52,263 $ 162,833 $ 78,232 Net income attributable to Green Brick Partners, Inc. per common share: Basic $ 2.09 $ 1.03 $ 3.27 $ 1.54 Diluted $ 2.08 $ 1.02 $ 3.25 $ 1.53 Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share: Basic 48,046 50,701 49,309 50,667 Diluted 48,384 51,064 49,639 51,029 GREEN BRICK PARTNERS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)June 30, 2022 December 31, 2021 ASSETS Cash and cash equivalents $ 66,765 $ 77,166 Restricted cash 22,889 16,388 Receivables 6,828 6,871 Inventory 1,369,200 1,203,743 Investments in unconsolidated entities 64,077 55,616 Right-of-use assets - operating leases 4,213 4,596 Property and equipment, net 2,761 2,812 Earnest money deposits 24,702 26,008 Deferred income tax assets, net 15,741 15,741 Intangible assets, net 494 537 Goodwill 680 680 Other assets 9,924 11,709 Total assets $ 1,588,274 $ 1,421,867 LIABILITIES AND EQUITY Liabilities: Accounts payable $ 60,229 $ 45,682 Accrued expenses 95,615 61,351 Customer and builder deposits 57,624 64,610 Lease liabilities - operating leases 4,362 4,745 Borrowings on lines of credit, net 34,662 (738 ) Senior unsecured notes, net 335,633 335,446 Notes payable 14,653 210 Total liabilities 602,778 511,306 Commitments and contingencies Redeemable noncontrolling interest in equity of consolidated subsidiary 22,001 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 June 30, 2022 and December 31, 2021, respectively 47,696 47,696 Common stock, $0.01 par value: 100,000,000 shares authorized; 51,275,158 and 51,151,911 issued and 46,471,006 and 50,759,972 outstanding as of June 30, 2022 and December 31, 2021, respectively 513 512 Treasury stock, at cost, 4,804,152 and 391,939 shares as of June 30, 2022 and December 31, 2021, respectively (95,479 ) (3,167 ) Additional paid-in capital 293,336 289,641 Retained earnings 701,325 539,866 Total Green Brick Partners, Inc. stockholders’ equity 947,391 874,548 Noncontrolling interests 16,104 14,146 Total equity 963,495 888,694 Total liabilities and equity $ 1,588,274 $ 1,421,867 GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)Residential Units Revenue and New Homes Delivered
(dollars in thousands)Three Months Ended June 30, Six Months Ended June 30, 2022 2021 Change % 2022 2021 Change % Home closings revenue $ 510,535 $ 332,279 $ 178,256 53.6 % $ 873,598 $ 548,413 $ 325,185 59.3 % Mechanic’s lien contracts revenue 1,980 1,221 759 62.2 % 3,578 2,323 1,255 54.0 % Residential units revenue $ 512,515 $ 333,500 $ 179,015 53.7 % $ 877,176 $ 550,736 $ 326,440 59.3 % New homes delivered 881 757 124 16.4 % 1,539 1,273 266 20.9 % Average sales price of homes delivered $ 579.5 $ 438.9 $ 140.6 32.0 % $ 567.6 $ 430.8 $ 136.8 31.8 % Land and Lots Revenue
(dollars in thousands)Three Months Ended June 30, Six Months Ended June 30, 2022 2021 Change % 2022 2021 Change % Lots revenue $ 12,081 $ 4,615 $ 7,466 161.8 % $ 14,036 $ 13,058 $ 978 7.5 % Land revenue 548 35,691 (35,143 ) (98.5 )% 27,548 44,491 (16,943 ) (38.1 )% Land and lots revenue $ 12,629 $ 40,306 $ (27,677 ) (68.7 )% $ 41,584 $ 57,549 $ (15,965 ) (27.7 )% Lots closed 184 63 121 192.1 % 217 142 75 52.8 % Average sales price of lots closed $ 65.7 $ 73.3 $ (7.6 ) (10.4 )% $ 64.7 $ 92.0 $ (27.3 ) (29.7 )% New Home Orders and Backlog
(dollars in thousands)Three Months Ended June 30, Six Months Ended June 30, 2022 2021 Change % 2022 2021 Change % Net new home orders 545 604 (59 ) (9.8 )% 1,146 1,686 (540 ) (32.0 )% Cancellation rate 11.4 % 7.6 % 3.8 % 50.0 % 9.6 % 6.6 % 3.0 % 45.5 % Absorption rate per average active selling community per quarter 7.1 6.8 0.3 4.4 % 7.5 9.1 (1.6 ) (17.6 )% Average active selling communities 77 89 (12 ) (13.5 )% 76 93 (17 ) (18.3 )% Active selling communities at end of period 78 87 (9 ) (10.3 )% Backlog $ 710,199 $ 974,349 $ (264,150 ) (27.1 )% Backlog (units) 1,087 1,876 (789 ) (42.1 )% Average sales price of backlog $ 653.4 $ 519.4 $ 134.0 25.8 % June 30, 2022 December 31, 2021 Lots owned(1) Central 19,043 17,767 Southeast 2,742 2,472 Total lots owned 21,785 20,239 Lots controlled(1) Central 3,687 7,321 Southeast 616 1,061 Total lots controlled 4,303 8,382 Total lots owned and controlled(1) 26,088 28,621 Percentage of lots owned 83.5 % 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 June 30, 2022 and December 31, 2021.
June 30, 2022 December 31, 2021 Total lots owned 21,785 20,239 Add certain lots included in Total Lots Controlled Land under option for future acquisition and development 289 3,826 Lots under option through unconsolidated development joint ventures 1,714 1,816 Total lots self-developed 23,788 25,881 Self-developed lots as a percentage of total lots owned and controlled 91.2 % 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 and six months ended June 30, 2022 and 2021 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.
(Unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Residential units revenue $ 512,515 $ 333,500 $ 877,176 $ 550,736 Less: Mechanic’s lien contracts revenue (1,980 ) (1,221 ) (3,578 ) (2,323 ) Home closings revenue $ 510,535 $ 332,279 $ 873,598 $ 548,413 Homebuilding gross margin $ 165,106 $ 89,055 $ 266,079 $ 143,959 Homebuilding gross margin percentage 32.3 % 26.8 % 30.5 % 26.3 % Homebuilding gross margin 165,106 89,055 266,079 143,959 Add back: Capitalized interest charged to cost of revenues 4,337 2,533 7,198 4,346 Adjusted homebuilding gross margin $ 169,443 $ 91,588 $ 273,277 $ 148,305 Adjusted homebuilding gross margin percentage 33.2 % 27.6 % 31.3 % 27.0 % 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 position to adapt and succeed in a rapidly changing environment; (ii) our expectations regarding trends in our markets, such as demand for single-family homes, stability of the built-to-rent sector, and buyer quality levels; (iii) the ability to mitigate future inventory buildup, including through reductions in single-family starts; (iv) expected closings of our current backlog, and our ability to manage such closings; (v) our priorities and strategies for growth, the drivers of that growth, and the impact on our future results; (vi) our beliefs regarding first time homebuyer preferences; (vii) our flexibility to capitalize on market opportunities and the impact on our financial and operational performance; (viii) our beliefs that our lot and land positions will support future growth and provide us with advantages on margins and adaptability; (ix) our beliefs that we operate in the most advantageous markets in the U.S. and the resilience of our markets in both stronger and weaker economies; (x) our intention to continue strengthening our financial position; (xi) our beliefs regarding future shifts in labor market pricing power and cycle timing; (xii) our beliefs regarding our position to manage costs and cycle times; and (xiii) our expectation to continue to provide favorable returns on equity to our shareholders. 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, inflation, and the COVID-19 pandemic 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; (10) a lack of availability or volatility of mortgage financing; (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:
Benting Hu
Vice President of Finance
(469) 808-1014
IR@greenbrickpartners.com
