Green Brick Partners(GRBK) - 2024 Q2 - Quarterly Results

Performance Highlights Green Brick Partners achieved record Q2 2024 results, with substantial growth in home closings revenue and diluted EPS, maintaining strong margins Q2 2024 Key Financial Metrics (YoY) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Home Closings Revenue | $546.9M | $454.1M | +20.4% | | New Homes Delivered | 987 | 783 | +26.1% | | Homebuilding Gross Margin | 34.5% | 31.3% | +320 bps | | Diluted EPS | $2.32 | $1.63 | +42.3% | | Net New Home Orders | 855 | 822 | +4.0% | Six Months Ended June 30, 2024 Key Financial Metrics (YoY) | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1,008.0M | $908.4M | +11.0% | | Net Income | $188.7M | $139.5M | +35.3% | | Diluted EPS | $4.14 | $3.00 | +38.0% | | Homebuilding Gross Margin | 34.0% | 29.5% | +450 bps | - The company maintains a strong and lowly leveraged balance sheet, with a net debt to total capital ratio of 10.9% and a total debt to total capital ratio of 17.7% at the end of Q2 2024[4] - Strategic focus on infill and infill-adjacent locations continues to be a key driver, accounting for approximately 80% of revenues in the first half of 2024[4] - The company expanded its land pipeline by adding over 2,500 future home sites during the second quarter and repurchased approximately 1.5% of its shares for $38.4 million[4] Financial Statements The consolidated financial statements reflect strong Q2 and H1 2024 performance, with significant revenue and profitability growth, and a solid balance sheet position Consolidated Statements of Income The income statement shows substantial year-over-year growth in total revenues and net income for both Q2 and the first half of 2024 Income Statement Highlights (in thousands) | Account | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $560,631 | $456,289 | $1,007,969 | $908,350 | | Total Gross Profit | $189,666 | $142,935 | $337,923 | $267,541 | | Income Before Income Taxes | $139,177 | $104,212 | $254,810 | $191,384 | | Net Income Attributable to GRBK | $105,358 | $75,270 | $188,659 | $139,450 | Earnings Per Share (Diluted) | Period | Diluted EPS | | :--- | :--- | | Q2 2024 | $2.32 | | Q2 2023 | $1.63 | | H1 2024 | $4.14 | | H1 2023 | $3.00 | Consolidated Balance Sheets The balance sheet as of June 30, 2024, shows growth in total assets, primarily inventory, and an increase in stockholders' equity, maintaining a solid financial position Key Balance Sheet Items (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $133,294 | $179,756 | | Inventory | $1,792,056 | $1,533,223 | | Total Assets | $2,064,402 | $1,902,832 | | Total Liabilities | $561,766 | $548,684 | | Total GRBK Stockholders' Equity | $1,439,235 | $1,300,704 | Operational and Supplemental Data This section details operational performance, highlighting increased home deliveries, active communities, and a significant expansion of the company's owned and controlled land pipeline Homebuilding Operations Q2 2024 homebuilding operations saw a significant increase in new homes delivered, though the average sales price experienced a slight decrease Residential Units Metrics (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | New homes delivered | 987 | 783 | +26.1% | | Home closings revenue (in thousands) | $546,948 | $454,136 | +20.4% | | Average sales price (in thousands) | $554.2 | $580.0 | -4.4% | New Home Orders and Backlog Net new home orders saw moderate growth in Q2 2024, accompanied by a slight increase in the cancellation rate and an expanded backlog value New Orders and Backlog Metrics (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net new home orders | 855 | 822 | +4.0% | | Cancellation rate | 9.2% | 7.4% | +1.8% | | Average active selling communities | 101 | 83 | +21.7% | | Backlog value (in thousands) | $650,349 | $585,951 | +11.0% | | Backlog units | 889 | 882 | +0.8% | Land Position The company significantly expanded its total lots owned and controlled as of June 30, 2024, reinforcing its self-development land strategy Total Lots Owned and Controlled | Category | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total lots owned | 28,519 | 23,801 | | Total lots controlled | 4,794 | 4,880 | | Total lots owned and controlled | 33,313 | 28,681 | - Self-developed lots represent 97.2% of the total lots owned and controlled as of June 30, 2024, up from 95.9% at the end of 2023, underscoring the company's commitment to its self-development strategy[22] Non-GAAP Financial Measures This section reconciles non-GAAP financial measures, including adjusted homebuilding gross margin and the net debt to total capitalization ratio, used for performance evaluation Adjusted Homebuilding Gross Margin Reconciliation | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Homebuilding gross margin % (GAAP) | 34.5% | 31.3% | | Adjusted homebuilding gross margin % (Non-GAAP) | 35.1% | 32.2% | Net Debt to Total Capitalization Reconciliation (as of June 30, 2024) | Metric | Value | | :--- | :--- | | Total debt, net | $309.6M | | Less: Cash and cash equivalents | ($133.3M) | | Net debt | $176.3M | | Total GRBK stockholders' equity | $1,439.2M | | Net debt to total capitalization ratio | 10.9% | Other Information This section provides administrative details, including the earnings call schedule, a corporate overview, and standard forward-looking and cautionary statements Earnings Conference Call An earnings conference call is scheduled for August 1, 2024, to discuss the second quarter 2024 financial results - An earnings call is scheduled for August 1, 2024, to provide further details on the quarterly performance[9] About Green Brick Partners, Inc. Green Brick Partners, Inc. operates as a diversified homebuilding and land development company across Texas, Georgia, and Florida through various subsidiaries - The company operates as a diversified homebuilding and land development entity in Texas, Georgia, and Florida through various subsidiary homebuilders[27] Forward-Looking and Cautionary Statements This section includes standard cautionary language regarding forward-looking statements, outlining various risks and uncertainties that could impact future results - The report includes forward-looking statements concerning business strategy, market demand, and future performance, which are subject to risks such as macroeconomic conditions, interest rates, and supply chain disruptions[28][29]