Green Brick Partners(GRBK) - 2023 Q1 - Quarterly Report

PART I FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements, management's analysis of financial condition and operations, and an assessment of internal controls and procedures Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2023, detailing the balance sheet, income statement, equity changes, and cash flows Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $177,271 | $76,588 | | Inventory | $1,373,014 | $1,422,680 | | Total assets | $1,706,456 | $1,655,675 | | Liabilities & Equity | | | | Total liabilities | $549,563 | $543,621 | | Total equity | $1,126,602 | $1,082,815 | | Total liabilities and equity | $1,706,456 | $1,655,675 | Condensed Consolidated Statements of Income Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total revenues | $452,061 | $393,616 | | Total gross profit | $124,606 | $108,356 | | Income before income taxes | $87,172 | $82,633 | | Net income | $68,141 | $64,196 | | Diluted EPS | $1.37 | $1.20 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $154,707 | $(13,994) | | Net cash used in investing activities | $(3,101) | $(448) | | Net cash (used in) provided by financing activities | $(49,189) | $1,123 | | Net increase (decrease) in cash | $102,417 | $(13,319) | Notes to the Unaudited Condensed Consolidated Financial Statements This section details accounting policies, inventory, debt, segment performance, and share repurchase activities, providing context for the financial statements Inventory Breakdown (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Homes completed or under construction | $525,571 | $603,950 | | Land and lots - developed and under development | $796,826 | $768,190 | | Total inventory | $1,373,014 | $1,422,680 | Debt Summary (in thousands) | Debt Type | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Borrowings on lines of credit, net | $(2,453) | $17,395 | | Senior unsecured notes, net | $335,920 | $335,825 | | Notes payable | $14,607 | $14,622 | - During Q1 2023, the company repurchased 467,875 shares for approximately $15.4 million under its 2022 Repurchase Plan. As of March 31, 2023, $33.3 million remained available for repurchase under the plan[53] Segment Revenues (in thousands) | Segment | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Builder operations - Central | $344,464 | $261,690 | | Builder operations - Southeast | $105,898 | $103,050 | | Land development | $1,699 | $28,860 | | Total revenues | $452,061 | $393,610 | Management's Discussion and Analysis of Financial Condition and Results of Operations This section discusses Q1 2023 performance drivers, including increased home deliveries and orders, and the company's financial position and debt strategy Key Operating Metrics (Q1 2023 vs Q1 2022) | Metric | Change | | :--- | :--- | | Home deliveries | Increased by 15.7% | | Home closings revenue | Increased by 23.8% | | Average sales price of homes delivered | Increased by 7.0% | | Net new home orders | Increased by 77.5% | - The absorption rate per average active selling community reached an all-time high of 13.3 homes for the quarter, a 66.3% increase year-over-year[103] - The company's cancellation rate improved, decreasing to 6.2% in Q1 2023 from 8.0% in Q1 2022[103][106] - The company maintains a low net debt to total capitalization ratio of 13.3% as of March 31, 2023, and targets a ratio of 30% to 35% to fund future growth[126][128] Controls and Procedures Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2023[146] - No changes in internal controls that materially affected or are reasonably likely to materially affect internal control over financial reporting occurred during the quarter ended March 31, 2023[147] PART II OTHER INFORMATION This section provides details on unregistered sales of equity securities, including share repurchases, and lists the exhibits filed with the report Unregistered Sales of Equity Securities and Use of Proceeds This section details the company's stock repurchase activity for Q1 2023, including shares repurchased and remaining authorization under the plan Issuer Purchases of Equity Securities (Q1 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2023 | — | $— | $48,683,000 | | Feb 2023 | — | $— | $48,683,000 | | Mar 2023 | 467,875 | $32.81 | $33,345,000 | Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL interactive data files - The filing includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[151] - XBRL Instance, Schema, Calculation, Definition, Label, and Presentation documents are submitted electronically with the filing[151] Signatures The Form 10-Q report was officially signed and authorized on May 3, 2023, by the Chief Executive Officer and Chief Financial Officer - The report was signed by CEO James R. Brickman and CFO Richard A. Costello[156] - The signing date of the report is May 3, 2023[156]