Financial Performance

Green Brick Partners (GBP) reported strong financial results in the first quarter of 2024, driven by robust housing demand in its markets.

• Revenue was $447 million, down slightly from $452 million in the first quarter of 2023. This was mainly due to a 9% drop in average home sales price to $540,000, offset by an 8% increase in homes delivered.

• Net income rose 10% to $93 million. Earnings per share climbed 9% to $1.82.

• The company’s profit margin on home sales expanded significantly, from 28% to 33%. This reflects GBP’s focus on building homes in sought-after locations and keeping construction costs low.

Home Sales

GBP sold 1,071 net new homes in the first quarter of 2024, roughly even with the year-ago period. The company maintained a robust sales pace of 3.8 sales per month per community despite higher mortgage rates.

• The company’s backlog of homes sold but not yet delivered grew 32% year-over-year to $725 million. This backlog visibility gives GBP clear insight into revenue over the next few quarters.

• Cancellations remained low at 4.1% of gross orders, indicating continued strong buyer demand.

Land and Community Expansion

GBP accelerated expansion in the first quarter, positioning itself to meet sustained housing demand.

• The company increased its lot pipeline by 7% from year-end 2023 to 30,786 lots owned or controlled under option contracts. This ensures GBP has an ample future supply of land to support community count growth.

• GBP expanded its active selling community count by 24% versus the first quarter of 2023. It ended the quarter with 98 communities. This fuels continued gains in sales orders and home deliveries.

Financial Condition

GBP maintains a strong financial position, with ample liquidity to fund expansion.

• The company held $186 million of cash and nothing drawn on its $675 million revolving credit facilities. Debt stood at a modest $309 million.

• Careful use of leverage gives GBP capacity to continue investing in land purchases, development, and home construction to drive growth. Its 18% debt-to-capital ratio remains well below management’s 30% target.

Outlook

GBP reaffirmed its positive view for 2024 based on a robust housing market and its competitive positioning. The company expects:

• Continued community count growth, especially in its Trophy Signature Homes luxury brand.

• Ongoing consumer appetite for its affordably priced homes in desirable locations.

• Strong profitability and cash generation to fund expansion opportunities.

Management remains focused on investing capital to maximize returns and shareholder value over the long term.