Green Brick Partners(GRBK)

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Green Brick Partners(GRBK) - 2022 Q2 - Earnings Call Presentation
2022-08-04 19:54
Investor Presentation 2022 Second Quarter Forward Looking Statements This presentation 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," "pl ...
Green Brick Partners (GRBK) Investor Presentation - Slideshow
2022-05-25 18:52
PRESENTATION | Spring 2022 4949 PARTNERS Forward Looking 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," "pl ...
Green Brick Partners(GRBK) - 2022 Q1 - Earnings Call Transcript
2022-05-04 20:24
Financial Data and Key Metrics Changes - The company reported a 68% year-over-year increase in total revenues to $394 million and a 135% year-over-year increase in EPS [7][10] - Gross margins reached 27.8%, the highest since Q1 2015, with a year-over-year increase of 240 basis points [14][15] - Annualized return on equity (ROE) was 28.8%, up from 25.9% in 2021 [16] Business Line Data and Key Metrics Changes - Residential units revenue also increased by 68% year-over-year to $365 million, driven by higher closing volume and average selling prices (ASPs) [10] - The company delivered 658 homes, a 27.5% increase compared to the previous year [10] - ASPs increased by 32% year-over-year to $552,000 [10] Market Data and Key Metrics Changes - The backlog of homes at the end of March was 1,423, with an ASP of $609,000, up 24% year-over-year [11] - The company noted strong demand in its markets, particularly in infill locations, which accounted for over 80% of closing revenues [33] Company Strategy and Development Direction - The company is focusing on disciplined capital allocation, investing in lot growth, and expanding into new markets while maintaining a 20% internal rate of return [21][22] - The company plans to start home construction in Austin in early 2023, reflecting its strategy to enter high-growth markets [21] - The management emphasized a focus on price over pace to sustain gross margins [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while higher mortgage rates may impact demand, demographic shifts and low existing housing inventory will sustain a healthy housing market [29][30] - The company believes that the shortage of both resale and new single-family homes will likely persist, providing a favorable environment for growth [35] - Management expressed confidence in the company's ability to enhance shareholder value despite market challenges [20][35] Other Important Information - The company completed a $50 million stock repurchase program, representing 4.8% of outstanding shares, and plans to continue buybacks with an additional $100 million authorized [26][27] - The company welcomed a new Independent Director to its Board, enhancing its governance [36] Q&A Session Summary Question: Supply chain outlook - Management indicated that the supply chain situation remains stable, with improvements in tracking shipments, but challenges persist due to international shipping issues [42][43] Question: Trophy brand performance - Trophy performed exceptionally well in A and B market locations, with strong sales metrics compared to other brands [47] Question: Rate locks and buyer activity - Approximately 40% of buyers have rate locks, and the company is monitoring this closely [72] Question: Pricing power in a rising rate environment - Management believes pricing power remains strong in upper infill locations, while being more moderate in perimeter locations [106] Question: Built time and supply chain issues - Built times are elongated due to ongoing supply chain challenges, particularly in labor [108]
Green Brick Partners(GRBK) - 2022 Q1 - Earnings Call Presentation
2022-05-04 18:31
Investor Presentation 2022 First Quarter Forward Looking 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," "pl ...
Green Brick Partners(GRBK) - 2021 Q4 - Earnings Call Presentation
2022-03-03 20:54
Financial Performance - Q4 2021 - Total revenues increased by 78% year-over-year, reaching $452.251 million compared to $254.1 million in Q4 2020[5] - Net income attributable to GRBK increased by 116.6% year-over-year, reaching $63.471 million compared to $29.310 million in Q4 2020[5] - Diluted EPS increased by 113.8% year-over-year, reaching $1.24 compared to $0.58 in Q4 2020[5] - Average sales price of homes delivered increased by 21.3% to $509.3K in Q4 2021[5] - Homebuilding gross margin improved by 110 bps to 26.2% in Q4 2021[5] - SG&A as a percentage of residential units revenue decreased by 350 bps to 8.8% in Q4 2021[5] Financial Performance - Full Year 2021 - Total revenues increased by 43.7% year-over-year, reaching $1.402876 billion compared to $976.021 million in 2020[8] - Net income attributable to GRBK increased by 67.3% year-over-year, reaching $190.210 million compared to $113.693 million in 2020[8] - Diluted EPS increased by 66.1% year-over-year, reaching $3.72 compared to $2.24 in 2020[8] - Average sales price of homes delivered increased by 10.1% to $460.7K in 2021[8] - Homebuilding gross margin improved by 220 bps to 26.4% in 2021[8] - SG&A as a percentage of residential units revenue decreased by 180 bps to 10.3% in 2021[8] - Backlog increased by 26.6% to $869.856 million in 2021[8] Land and Expansion - Lots owned and controlled increased by 98% year-over-year[8, 27] - The company announced expansion to Austin, Texas market[3, 24, 27]
Green Brick Partners(GRBK) - 2021 Q4 - Earnings Call Transcript
2022-03-02 21:26
Financial Data and Key Metrics Changes - In Q4 2021, total revenues reached a record $452 million, an increase of 78% from Q4 2020, with residential units revenues increasing by 70% year-over-year [9][11] - The company delivered 823 homes in Q4 2021, representing a growth of 41% over Q4 2020 [9] - Full year 2021 total revenues were $1.4 billion, a 44% increase from 2020, with diluted EPS of $3.72, growing 66% over 2020 [14][16] - Gross margin for Q4 2021 was 26.2%, up 110 basis points from Q4 2020, while the full year gross margin was 26.4%, up 220 basis points from 2020 [10][15] Business Line Data and Key Metrics Changes - The company’s focus on spec homes led to an increase in spec units under construction from 28% to 39% by the end of 2021 [19] - The average sales price (ASP) for Q4 was $509,000, up 21.3% year-over-year, while the full year ASP was $461,000, up 10.1% [21] Market Data and Key Metrics Changes - The company is expanding into the Austin market, purchasing 383 acres for a new community, Trinity Ranch, expected to start construction in early 2023 [30] - Resale inventory levels are at all-time lows, with Austin having only 0.5 months of supply, contributing to strong demand for new homes [35] Company Strategy and Development Direction - The company plans to invest $285 million in land development to deliver over 4,700 finished home sites across 43 communities in 2022 [26] - The strategy includes a disciplined approach to capital allocation, focusing on lot growth and expanding into new markets [25] Management's Comments on Operating Environment and Future Outlook - Management believes that the current demand for homes is strong, despite rising interest rates, and anticipates continued price increases due to limited resale inventory [36][58] - The company expects double-digit growth in ASP and community count for 2022, with a focus on maintaining gross margins [46][48] Other Important Information - The company was named to Forbes' 2022 America's Best Small Companies list and Fortune's 2021 fastest-growing companies list [11][17] - The company completed a $50 million offering of Series A preferred shares and a $100 million note purchase agreement [12] Q&A Session Summary Question: Guidance for 2022 closings and ASP - Management expects double-digit growth in ASP and community count, with some lumpiness due to product mix [46][48] Question: Sustainability of gross margins - Management does not anticipate a reduction in margins and believes there is potential for improvement [50] Question: Impact of rising interest rates on demand - No increase in incentives has been observed, and demand remains robust despite rising rates [54][56] Question: Community count and absorption rates - Community count is expected to increase in the second half of 2022, with higher absorption rates for Trophy communities [87][88] Question: Cancel rates in Q4 - The increase in cancel rates was a one-quarter aberration, with rates returning to lower levels in early 2022 [76][78] Question: Land sales and margins - Recent land sales had low margins due to an exchange with another builder, but overall land sales are expected to improve [110] Question: Tax rate for 2022 - The tax rate is expected to be closer to 24% for 2022 due to changes in state taxes [106]
Green Brick Partners (GRBK) Investor Presentation
2021-11-23 18:35
INVESTOR | FALL 2021 GREEN BRICK PARTNERS F O R WA R D - L O O K I N G S T A T E M E N T S INTRODUCTION This presentation 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," "estimat ...
Green Brick Partners(GRBK) - 2021 Q3 - Earnings Call Transcript
2021-11-03 22:48
Green Brick Partners, Inc. (NYSE:GRBK) Q3 2021 Earnings Conference Call November 3, 2021 ET Company Participants Jim Brickman - Chief Executive Officer Jed Dolson - Chief Operating Officer Rick Costello - Chief Financial Officer Conference Call Participants Carl Reichardt - BTIG Alex Rygiel - B. Riley David Papson - CDT Capital Bill Dezellem - Tieton Capital Alex Barron - Housing Research Center Operator Good afternoon, everyone and welcome to Green Brick’s Partners Earnings Call for the Third Quarter ended ...
Green Brick Partners(GRBK) - 2021 Q2 - Earnings Call Transcript
2021-08-04 19:57
Financial Data and Key Metrics Changes - The company achieved an annualized return on equity of 30.2%, a record high, with total revenues reaching $1.1 billion on a trailing 12-month basis [7][34] - Homebuilding revenues increased by 54% from Q1 to Q2, and earnings per share (EPS) doubled [7] - Gross margin reached 26.8%, up 360 basis points year-over-year and 140 basis points from Q1 [9][31] Business Line Data and Key Metrics Changes - Lots owned and controlled increased by 133% year-over-year, totaling 21,351 lots, marking a 48% increase since the start of the year [8][16] - Units under construction rose by 95% compared to June 30, 2020, with a 40% increase over the past six months [18] - The Trophy brand saw a 315% increase in units under construction over the past 12 months, contributing significantly to overall growth [18] Market Data and Key Metrics Changes - The Dallas-Fort Worth and Atlanta markets experienced a 59% and 53% decline in active home listings, respectively, indicating strong housing demand [14] - Population growth in Texas, Colorado, Florida, and Georgia has been robust, supporting housing demand in these markets [12] Company Strategy and Development Direction - The company focuses on land development and has limited available homes for sale to maintain pricing power, which is expected to sustain margins [10] - The strategy includes expanding the entry-level segment through the Trophy Signature and CB JENI brands, which are expected to grow rapidly [11][36] - The company plans to continue its conservative approach to land acquisitions while maintaining a low debt-to-capital ratio [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue and earnings growth, citing strong demand and a favorable economic environment in core markets [7][15] - The company anticipates that the imbalance between housing demand and supply will persist, providing ongoing pricing power [14] Other Important Information - The company has a strong emphasis on self-developing lots to avoid high premiums from third-party developers, which is expected to enhance margins [16] - The company plans to provide more insights into its growth strategy and operational initiatives during an upcoming Investor Day [10][41] Q&A Session Summary Question: How does the company view sales for the remainder of the year? - Management indicated that they are experiencing normalized starts and are intentionally delaying sales to capture higher margins due to strong demand [45][46] Question: What price increases were implemented during the quarter? - The company raised prices by 3% to 5% per community per month and noted a significant drop in lumber costs, which should enhance margins [49][50] Question: Can you discuss the decline in new home orders from Q1 to Q2? - Management explained that the decline was intentional, as they chose to limit sales to maximize margins in a rising price environment [62][63]
Green Brick Partners(GRBK) - 2021 Q2 - Earnings Call Presentation
2021-08-04 14:42
SECOND QUARTER | 2021 GREEN BRICK PARTNERS FORWARD - LOOKING STATEMENTS INTRODUCTION This presentation 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," "fore ...