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Green Brick Partners, Inc. Reports Third Quarter 2023 Results


PLANO, Texas, Oct. 31, 2023 (GLOBE NEWSWIRE) -- Green Brick Partners, Inc. (NYSE: GRBK) (“we,” “Green Brick” or the “Company”) today reported results for its third quarter ended September 30, 2023.

“Green Brick produced another outstanding quarter, highlighted by our $1.56 EPS and by gross margins and sales orders far outperforming the market. Benefiting from a more normalized supply chain, lower construction costs, and fewer incentives in our supply-constrained markets, homebuilding gross margin improved 90 bps year-over-year and 200 bps sequentially to 33.3%, the highest among public homebuilders and the best in company history,” said Jim Brickman, CEO and Co-Founder. “Cycle times for homes closed during the third quarter improved another 41 days sequentially, allowing us to close 16% more homes this quarter. Additionally, we ramped up starts by 79% year-over-year to 879 for the quarter, bringing year-to-date starts in line with our delivery pace for the year. We anticipate continuing to start homes at a robust pace to meet demand in our high-performing markets in Texas, Georgia and Florida.”

“In the face of a higher interest rate environment, we continued to lead our public homebuilding peers in year-to-date new order growth. Year-over-year, net new home orders of 788 homes for the third quarter and 2,677 homes year-to-date were up 95% and 73%, respectively. Our quarterly absorption rate remained elevated at 9.2 homes per community, a 74% increase year-over-year. Our cancellation rate dropped 130 bps sequentially to 6.1%, the lowest among our homebuilding peers,” continued Mr. Brickman. “Our industry leading performance was largely due to the lack of existing home supply because existing homeowners are reluctant to sell their homes and forfeit their low interest rate mortgages, as well as a lack of new home competitors in our superior infill and infill-adjacent locations. Thanks to strong demand during the quarter, we were able to grow our backlog by 10.4% year-over-year. Backlog has now increased 69% year-to-date to $623 million.”

Mr. Brickman concluded, “Our focus remains on managing our capital efficiently as we continue sourcing and closing land investments under disciplined underwriting that we believe will be accretive for our growth story. Our balance sheet is stronger than ever. At the end of the quarter, we had $223 million of cash and $360 million in available borrowings in our lines of credit, with a net debt to total capital ratio of 9.0%. Virtually all our outstanding debt was long term and carried a weighted average interest rate of 3.3%.”

Results for the Quarter Ended September 30, 2023:

(Dollars in thousands, except per share data)Three Months Ended
September 30,
New homes delivered 754   650   16.0%
Total revenues$418,978  $407,944   2.7%
Total cost of revenues 279,965   274,625   1.9%
Total gross profit$139,013  $133,319   4.3%
Income before income taxes$98,086  $97,596   0.5%
Net income attributable to Green Brick Partners, Inc.$72,156  $73,520  (1.9)%
Diluted net income attributable to Green Brick Partners, Inc. per common share$1.56  $1.57  (0.6)%
Residential units revenue$415,923  $396,749   4.8%
Average sales price of homes delivered$551.5  $607.3  (9.2)%
Homebuilding gross margin percentage 33.3%  32.4%  90 bps
Backlog$622,560  $564,026  $58,534 
Homes under construction 1,934   2,276  (15.0)%

Results for the Nine Months Ended September 30, 2023:

(Dollars in thousands, except per share data)Nine Months Ended
September 30,
 2023 2022 Change
New homes delivered 2,298   2,189  5.0%
Total revenues$1,327,328  $1,326,704  0.0%
Total cost of revenues 920,774   916,133  0.5%
Total gross profit$406,554  $410,571  (1.0)%
Income before income taxes$289,470  $318,511  (9.1)%
Net income attributable to Green Brick Partners, Inc.$211,606  $236,353  (10.5)%
Diluted net income attributable to Green Brick Partners, Inc. per common share$4.55  $4.82  (5.6)%
Residential units revenue$1,320,730  $1,273,925  3.7%
Average sales price of homes delivered$574.1  $579.4  (0.9)%
Homebuilding gross margin percentage 30.7%  31.1% -40 bps
Selling, general and administrative expenses as a percentage of residential units revenue 10.8%  9.4% 140 bps

Earnings Conference Call:

We will host our earnings conference call to discuss our third quarter ended September 30, 2023 at 12:00 p.m. Eastern Time on Wednesday, November 1, 2023. 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:

A telephone replay of the call will be available through December 1, 2023. 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

(In thousands, except per share data)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2023 2022 2023 2022
Residential units revenue$415,923  $396,749  $1,320,730  $1,273,925 
Land and lots revenue 3,055   11,195   6,598   52,779 
Total revenues 418,978   407,944   1,327,328   1,326,704 
Cost of residential units 277,446   268,536   915,600   879,108 
Cost of land and lots 2,519   6,089   5,174   37,025 
Total cost of revenues 279,965   274,625   920,774   916,133 
Total gross profit 139,013   133,319   406,554   410,571 
Selling, general and administrative expenses (46,884)  (43,251)  (142,058)  (119,314)
Equity in income of unconsolidated entities 1,345   5,697   11,265   19,907 
Other income, net 4,612   1,831   13,709   7,347 
Income before income taxes 98,086   97,596   289,470   318,511 
Income tax expense 20,975   16,963   63,154   65,678 
Net income 77,111   80,633   226,316   252,833 
Less: Net income attributable to noncontrolling interests 4,955   7,113   14,710   16,480 
Net income attributable to Green Brick Partners, Inc.$72,156  $73,520  $211,606  $236,353 
Net income attributable to Green Brick Partners, Inc. per common share:       
Basic$1.58  $1.58  $4.60  $4.86 
Diluted$1.56  $1.57  $4.55  $4.82 
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:       
Basic 45,320   46,032   45,543   48,205 
Diluted 45,792   46,390   45,988   48,544 

(In thousands, except share data)

 September 30, 2023 December 31, 2022
Cash and cash equivalents$223,453  $76,588
Restricted cash 22,708   16,682
Receivables 9,955   5,288
Inventory 1,462,264   1,422,680
Investments in unconsolidated entities 80,210   74,224
Right-of-use assets - operating leases 7,877   3,458
Property and equipment, net 5,402   2,919
Earnest money deposits 18,212   23,910
Deferred income tax assets, net 16,448   16,448
Intangible assets, net 388   452
Goodwill 680   680
Other assets 19,049   12,346
Total assets$1,866,646  $1,655,675
Accounts payable$56,565  $51,804
Accrued expenses 110,909   91,281
Customer and builder deposits 47,239   29,112
Lease liabilities - operating leases 7,923   3,582
Borrowings on lines of credit, net (1,983)  17,395
Senior unsecured notes, net 336,112   335,825
Notes payable 12,998   14,622
Total liabilities 569,763   543,621
Commitments and contingencies   
Redeemable noncontrolling interest in equity of consolidated subsidiary 35,236   29,239
Green Brick Partners, Inc. stockholders’ equity   
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively 47,603   47,696
Common stock, $0.01 par value: 100,000,000 shares authorized; 45,378,364 issued and outstanding as of September 30, 2023 and 46,032,930 issued and outstanding as of December 31, 2022, respectively 454   460
Additional paid-in capital 256,759   259,410
Retained earnings 940,400   754,341
Total Green Brick Partners, Inc. stockholders’ equity 1,245,216   1,061,907
Noncontrolling interests 16,431   20,908
Total equity 1,261,647   1,082,815
Total liabilities and equity$1,866,646  $1,655,675


Residential Units Revenue and New Homes Delivered
(dollars in thousands)

 Three Months Ended
September 30,
     Nine Months Ended
September 30,
 2023 2022 Change % 2023 2022 Change %
Home closings revenue $415,827 $394,731 $21,096  5.3% $1,319,393 $1,268,329 $51,064  4.0%
Mechanic’s lien contracts revenue  96  2,018  (1,922) (95.2)%  1,337  5,596  (4,259) (76.1)%
Residential units revenue $415,923 $396,749 $19,174  4.8% $1,320,730 $1,273,925 $46,805  3.7%
New homes delivered  754  650  104  16.0%  2,298  2,189  109  5.0%
Average sales price of homes delivered $551.5 $607.3 $(55.8) (9.2)% $574.1 $579.4 $(5.3) (0.9)%

Land and Lots Revenue
(dollars in thousands)
 Three Months Ended
September 30,
     Nine Months Ended
September 30,
 2023 2022 Change % 2023 2022 Change %
Lots revenue $2,026 $3,991 $(1,965) (49.2)% $5,569 $18,027 $(12,458) (69.1)%
Land revenue  1,029  7,204  (6,175) (85.7)%  1,029  34,752  (33,723) (97.0)%
Land and lots revenue $3,055 $11,195 $(8,140) (72.7)% $6,598 $52,779 $(46,181) (87.5)%
Lots closed  19  57  (38) (66.7)%  55  274  (219) (79.9)%
Average sales price of lots closed $106.6 $70.0 $36.6  52.3% $101.3 $65.8 $35.5  54.0%

New Home Orders and Backlog
(dollars in thousands)
 Three Months Ended
September 30,
     Nine Months Ended
September 30,
 Change % 2023
 Change %
Net new home orders  788   404   384  95.0%  2,677   1,550   1,127  72.7%
Revenue from net new home orders $452,436  $251,276  $201,160  80.1% $1,572,859  $962,497  $610,362  63.4%
Average selling price of net new home orders $574.2  $622.0  $(47.8) (7.7)% $587.5  $621.0  $(33.5) (5.4)%
Cancellation rate  6.1%  17.6% (11.5)% (65.3)%  6.5%  11.8% (5.3)% (44.9)%
Absorption rate per average active selling community per quarter  9.2   5.3   3.9  73.6%  10.8   6.8   4.0  58.8%
Average active selling communities  86   76   10  13.2%  83   76   7  9.2%
Active selling communities at end of period  86   74   12  16.2%        
Backlog $622,560  $564,026  $58,534  10.4%        
Backlog units  916   841   75  8.9%        
Average sales price of backlog $679.7  $670.7  $9.0  1.3%        


 September 30, 2023 December 31, 2022
 Central Southeast Total Central Southeast Total
Lots owned           
Finished lots4,456  1,144  5,600  1,901  998  2,899 
Lots in communities under development7,706  1,253  8,959  10,309  1,698  12,007 
Land held for future development(1)6,600    6,600  6,575    6,575 
Total lots owned18,762  2,397  21,159  18,785  2,696  21,481 
Lots controlled           
Lots under third party option contracts1,364  3  1,367  2,212  6  2,218 
Land under option for future acquisition and development1,961  128  2,089  110  18  128 
Lots under option through unconsolidated development joint ventures1,259  345  1,604  1,289  411  1,700 
Total lots controlled4,584  476  5,060  3,611  435  4,046 
Total lots owned and controlled(2)23,346  2,873  26,219  22,396  3,131  25,527 
Percentage of lots owned80.4% 83.4% 80.7% 83.9% 86.1% 84.2%

(1)Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors.
(2)Total lots excludes lots with homes under construction.

The following table presents additional information on the lots we owned as of September 30, 2023 and December 31, 2022.

 September 30, 2023 December 31, 2022
Total lots owned21,159  21,481 
Add certain lots included in Total Lots Controlled   
Land under option for future acquisition and development2,089  128 
Lots under option through unconsolidated development joint ventures1,604  1,700 
Total lots self-developed24,852  23,309 
Self-developed lots as a percentage of total lots owned and controlled94.8% 91.3%

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 nine months ended September 30, 2023 and 2022 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

(Unaudited, in thousands):
 Three Months Ended
September 30,
 Nine Months Ended
September 30,
 2023 2022 2023 2022
Residential units revenue $415,923  $396,749  $1,320,730  $1,273,925 
Less: Mechanic’s lien contracts revenue  (96)  (2,018)  (1,337)  (5,596)
Home closings revenue $415,827  $394,731  $1,319,393  $1,268,329 
Homebuilding gross margin $138,427  $127,861  $404,644  $393,940 
Homebuilding gross margin percentage  33.3%  32.4%  30.7%  31.1%
Homebuilding gross margin  138,427   127,861   404,644   393,940 
Add back: Capitalized interest charged to cost of revenues  2,968   3,105   10,456   10,303 
Adjusted homebuilding gross margin $141,395  $130,966  $415,100  $404,243 
Adjusted homebuilding gross margin percentage  34.0%  33.2%  31.5%  31.9%

Net debt to total capitalization is calculated as the total debt less cash and cash equivalents, divided by the sum of total Green Brick Partners, Inc. stockholders’ equity and total debt less cash and cash equivalents. The closest GAAP financial measure to the net debt to total capitalization ratio is the debt to total capitalization ratio. The following table represents a reconciliation of the net debt to total capitalization ratio as of September 30, 2023:

 Gross Cash and cash equivalents Net
Total debt, net of debt issuance costs$347,127  $(223,453) $123,674 
Total Green Brick Partners, Inc. stockholders’ equity 1,245,216      1,245,216 
Total capitalization$1,592,343  $(223,453) $1,368,890 
Debt to total capitalization ratio 21.8%    
Net debt to total capitalization ratio     9.0%

About Green Brick Partners, Inc.

Green Brick Partners, Inc. is a diversified homebuilding and land development company that operates in Texas, Georgia, and Florida and has a non-controlling interest in a Colorado homebuilder. 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 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

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, including our ability to maintain industry-leading performance and gross margins; (ii) our expectations regarding trends in our markets, such as demand for single-family homes and levels of resale inventory; (iii) our ability to mitigate inventory buildup and manage pace of sales and starts, including maintaining robust level of starts; (iv) our ability to increase our market share; (v) our priorities and strategies for growth, the drivers of that growth, and the impact on our future results, including in the Austin market and expansion of our Trophy brand; (vi) our capital resources and flexibility to capitalize on market opportunities and the impact on our financial and operational performance; (vii) the advantages of our lot and land strategies and locations, including the benefits to our margins and adaptability; (viii) our beliefs that we operate in the most advantageous markets in the U.S. and the resilience of our core markets; (ix) our intention to continue strengthening our financial position and reducing leverage; (x) our beliefs regarding our position and scale, including our ability to manage costs and cycle times; (xi) our expectations regarding returns on capital, including the impact of improvements in cycle times, supply chain and labor availability and (x) our expectations and strategy on land sourcing and its impact on our growth. 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 rate and inflation 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 for homebuyers; (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.

Benting Hu
Vice President of Finance

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