Green Brick Partners(GRBK) - 2024 Q3 - Quarterly Report

Home Deliveries and Sales - Home deliveries increased by 26.8% for the three months ended September 30, 2024, and by 20.3% for the nine months ended September 30, 2024[114]. - Home closings revenue rose by 25.7% for the three months ended September 30, 2024, and by 14.7% for the nine months ended September 30, 2024[115]. - Average sales price of homes delivered decreased by 0.8% for the three months ended September 30, 2024, and by 4.7% for the nine months ended September 30, 2024[114]. - Net new home orders increased by 11.3% for the three months ended September 30, 2024, and by 4.7% for the nine months ended September 30, 2024[117]. - Residential units revenue increased by $192.6 million, or 14.6%, driven by a 20.3% increase in home deliveries[133]. Backlog and Cancellations - Backlog revenue decreased by 6.5% due to an 11.7% decrease in backlog units, despite a 5.8% increase in the average sales price of backlog units[119]. - The cancellation rate for the three months ended September 30, 2024, was 8.5%, compared to 6.1% for the same period in 2023[119]. - Cancellation rate rose to 7.1% for the nine months ended September 30, 2024, compared to 6.5% in the prior year[131]. Financial Performance - Residential units gross margin decreased by 60 basis points to 32.7% for the three months ended September 30, 2024[121]. - Selling, general and administrative expenses as a percentage of revenue decreased by 0.2% for the three months ended September 30, 2024[122]. - Revenue from net new home orders decreased by$ 33.3 million, or 2.1%, to $1,539.5 million for the nine months ended September 30, 2024[130]. - Average selling price of net new home orders declined by 6.5% to$ 549.3 thousand[130]. - Residential units gross margin improved by 290 basis points to 33.6% for the nine months ended September 30, 2024[134]. Land and Lots - Land and lots revenue increased by 178.1% to $18.3 million for the nine months ended September 30, 2024[135]. - Total lots owned increased to 31,425 as of September 30, 2024, from 23,801 at the end of 2023[144]. - The company had earnest money deposits of$ 10.2 million at risk associated with contracts to purchase raw land and finished lots, representing 3,380 total lots[167]. Cash and Debt Management - Unrestricted cash and cash equivalents decreased to $80.1 million as of September 30, 2024, from$ 179.8 million at the end of 2023[145]. - Debt to total capitalization ratio was approximately 16.4% as of September 30, 2024[149]. - As of September 30, 2024, the net debt to total capitalization ratio was 12.5%, indicating a low leverage position[150]. - Total debt, net of debt issuance costs, was $297.3 million, with a net debt figure of$ 217.2 million after accounting for cash and cash equivalents of $80.1 million[152]. - For the nine months ended September 30, 2024, net cash used for operating activities was$ 3.0 million, a significant decrease from $232.7 million provided during the same period in 2023[154]. - The company generated$ 34.6 million from investing activities in the nine months ended September 30, 2024, compared to a net cash outflow of $10.0 million in the prior year[155]. - Net cash used in financing activities was$ 126.4 million for the nine months ended September 30, 2024, up from $69.8 million in the same period in 2023[156]. - As of September 30, 2024, the company maintained an interest coverage ratio of 33.16 to 1.0, well above the required minimum of 2.0 to 1.0[161]. - The Consolidated Tangible Net Worth was reported at$ 1,519.8 million as of September 30, 2024, exceeding the minimum requirement of approximately $960.0 million[161]. Market Trends - The homebuilding industry experiences seasonal fluctuations, with the highest new home order activity typically occurring in spring and summer[169]. - The company plans to prudently employ leverage to continue investing in land acquisition, development, and homebuilding activities[150].