Second Quarter EPS of $0.29 and Adjusted
EPS of $0.41, up 81.3% and 64.0%;Second Quarter
Pre-Tax Income of $20.7 million, up 72.1%;Second
Quarter Revenue of $155.0 million, up
47.7%;Backlog of $314.2 million, up
90.2%
Green Brick Partners, Inc. (NASDAQ: GRBK) (“we,” “Green Brick” or
the “Company”) today reported results for its second quarter ended
June 30, 2018.
Results for the Second Quarter Ended June 30,
2018:
- Basic net income attributable to Green Brick per common share
(“EPS”) for the three months ended June 30, 2018 was $0.29, an
increase of 81.3%, compared to $0.16 for the three months ended
June 30, 2017. Excluding one-time transaction expenses, basic
adjusted pre-tax income attributable to Green Brick per common
share (“Adjusted EPS”) for the three months ended June 30,
2018 was $0.41, an increase of 64.0%, compared to $0.25 for the
three months ended June 30, 2017. See “Reconciliation of
Non-GAAP Financial Measures.”
- For the three months ended June 30, 2018, adjusted pre-tax
income attributable to Green Brick was $20.7 million, an increase
of 72.1%, compared to $12.0 million for the three months ended
June 30, 2017; gross profit was $34.6 million, an increase of
51.0%, compared to $22.9 million for the three months ended
June 30, 2017; and total revenue was $155.0 million, an
increase of 47.7%, compared to $105.0 million for the three months
ended June 30, 2017.
- Revenue from the sale of residential units for the three months
ended June 30, 2018 was $143.9 million, an increase of 43.4%,
compared to $100.3 million for the three months ended June 30,
2017. Revenue from the sale of land and lots for the three months
ended June 30, 2018 was $11.1 million, an increase of 141.7%,
compared to $4.6 million for the three months ended June 30,
2017.
- The dollar value of backlog units as of June 30, 2018 was
$314.2 million, an increase of 90.2% compared to June 30,
2017.
- Homes under construction increased 38.4% to 988 as of
June 30, 2018, compared to 714 as of June 30, 2017.
Results for the Six Months Ended June 30,
2018:
- Basic net income attributable to Green Brick per common share
(“EPS”) for the six months ended June 30, 2018 was $0.52, an
increase of 85.7% compared to $0.28 for the six months ended
June 30, 2017. Excluding one-time transaction expenses, basic
adjusted pre-tax income attributable to Green Brick per common
share for the six months ended June 30, 2018 was $0.70, an
increase of 55.6%, compared to $0.45 for the six months ended
June 30, 2017. See “Reconciliation of Non-GAAP Financial
Measures.”
- For the six months ended June 30, 2018, adjusted pre-tax
income attributable to Green Brick was $35.4 million, an increase
of 60.2%, compared to $22.1 million for the six months ended
June 30, 2017; gross profit was $61.7 million, an increase of
39.7%, compared to $44.2 million for the six months ended
June 30, 2017; and total revenue was $283.3 million an
increase of 38.7%, compared to $204.3 million for the six months
ended June 30, 2017.
- Revenue from the sale of residential units for the six months
ended June 30, 2018 was $264.2 million, an increase of 36.4%,
compared to $193.7 million for the six months ended June 30,
2017. Revenue from the sale of land and lots for the six months
ended June 30, 2018 was $19.0 million, an increase of 80.5%,
compared to $10.5 million for the six months ended June 30,
2017.
“Green Brick's adjusted pre-tax income of $20.7 million was a
record for any quarter, despite being achieved with only 23% net
debt to capital. As we use additional debt and retained earnings to
fund the amazing 90% growth in our second quarter backlog, our 2019
revenue and earnings should continue to significantly grow” said
Jim Brickman, CEO of Green Brick Partners.
David Einhorn, Chairman of the Company’s board of directors,
added, “I am pleased with the forward progress of the company. The
organic growth of the existing operations has consistently exceeded
expectations. And the recent acquisitions have been accretive
and expanded our geographic diversity.”
“We have never been more excited about our future. I want to
thank and congratulate everyone on the Green Brick team for our
success”, continued Mr. Brickman.
Earnings Conference Call:We will host our
earnings conference call to discuss our second quarter ended
June 30, 2018 at 12:00 p.m. Eastern Time on Tuesday, August 7,
2018. The call can be accessed by dialing 800-374-0137 for domestic
participants or 904-685-8013 for international participants.
Participants should reference conference ID code 8383968. A replay
of the call will be available from approximately 3:30 p.m. Eastern
Time on August 7, 2018 through 11:59 p.m. Eastern Time on August
14, 2018. To access the replay, the domestic dial-in number is
855-859-2056, the international dial-in number is 404-537-3406 and
the conference ID code is 8383968.
Reconciliation of 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 the Company’s 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.
GREEN BRICK PARTNERS,
INC.CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share
data)(Unaudited)
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Sale of residential
units |
$ |
143,878 |
|
|
$ |
100,345 |
|
|
$ |
264,244 |
|
|
$ |
193,742 |
|
Sale of land and
lots |
|
11,132 |
|
|
|
4,606 |
|
|
|
19,031 |
|
|
|
10,546 |
|
Total
revenues |
|
155,010 |
|
|
|
104,951 |
|
|
|
283,275 |
|
|
|
204,288 |
|
Cost of residential
units |
|
112,316 |
|
|
|
78,553 |
|
|
|
206,825 |
|
|
|
152,314 |
|
Cost of land and
lots |
|
8,076 |
|
|
|
3,472 |
|
|
|
14,702 |
|
|
|
7,762 |
|
Total
cost of sales |
|
120,392 |
|
|
|
82,025 |
|
|
|
221,527 |
|
|
|
160,076 |
|
Total
gross profit |
|
34,618 |
|
|
|
22,926 |
|
|
|
61,748 |
|
|
|
44,212 |
|
Salary expense |
|
6,737 |
|
|
|
5,332 |
|
|
|
13,675 |
|
|
|
10,767 |
|
Selling, general and
administrative expense |
|
7,280 |
|
|
|
4,167 |
|
|
|
13,105 |
|
|
|
8,445 |
|
Operating
profit |
|
20,601 |
|
|
|
13,427 |
|
|
|
34,968 |
|
|
|
25,000 |
|
Equity in income of
unconsolidated entities |
|
2,279 |
|
|
|
— |
|
|
|
3,815 |
|
|
|
— |
|
Other income, net |
|
1,350 |
|
|
|
386 |
|
|
|
2,058 |
|
|
|
928 |
|
Income
before taxes |
|
24,230 |
|
|
|
13,813 |
|
|
|
40,841 |
|
|
|
25,928 |
|
Income tax
provision |
|
5,235 |
|
|
|
4,382 |
|
|
|
8,607 |
|
|
|
8,271 |
|
Net income |
|
18,995 |
|
|
|
9,431 |
|
|
|
32,234 |
|
|
|
17,657 |
|
Less: Net income
attributable to noncontrolling interests |
|
4,126 |
|
|
|
1,742 |
|
|
|
6,162 |
|
|
|
3,771 |
|
Net income attributable
to Green Brick Partners, Inc. |
$ |
14,869 |
|
|
$ |
7,689 |
|
|
$ |
26,072 |
|
|
$ |
13,886 |
|
|
|
|
|
|
|
|
|
Net income attributable
to Green Brick Partners, Inc. per common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
$ |
0.16 |
|
$ |
0.52 |
|
$ |
0.28 |
Diluted |
$ |
0.29 |
|
$ |
0.16 |
|
$ |
0.51 |
|
$ |
0.28 |
Weighted average common
shares used in the calculation of net income
attributable to Green Brick Partners, Inc. per common
share: |
|
|
|
|
|
|
|
Basic |
|
50,664 |
|
|
|
49,047 |
|
|
|
50,620 |
|
|
|
49,003 |
|
Diluted |
|
50,783 |
|
|
|
49,123 |
|
|
|
50,751 |
|
|
|
49,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GREEN BRICK PARTNERS,
INC.SUPPLEMENTAL
INFORMATION(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
|
|
Six Months EndedJune 30, |
|
|
New Homes Delivered and Home Sales Revenue |
|
2018 |
|
2017 |
|
Change |
|
% |
|
2018 |
|
2017 |
|
Change |
|
% |
New homes
delivered |
|
327 |
|
|
237 |
|
|
90 |
|
|
38.0 |
% |
|
594 |
|
|
463 |
|
|
131 |
|
|
28.3 |
% |
Home sales
revenue ($ in thousands) |
|
$ |
143,878 |
|
|
$ |
100,345 |
|
|
$ |
43,533 |
|
|
43.4 |
% |
|
$ |
264,244 |
|
|
$ |
193,742 |
|
|
$ |
70,502 |
|
|
36.4 |
% |
Average sales price of
homes delivered |
|
$ |
439,994 |
|
|
$ |
423,397 |
|
|
$ |
16,597 |
|
|
3.9 |
% |
|
$ |
444,855 |
|
|
$ |
418,449 |
|
|
$ |
26,406 |
|
|
6.3 |
% |
|
|
Three Months EndedJune 30, |
|
|
|
Six Months EndedJune 30, |
|
|
Land and Lots Sales Revenue |
|
2018 |
|
2017 |
|
Change |
|
% |
|
2018 |
|
2017 |
|
Change |
|
% |
Lots sold |
|
53 |
|
|
37 |
|
|
16 |
|
|
43.2 |
% |
|
101 |
|
|
84 |
|
|
17 |
|
|
20.2 |
% |
Lots sales
revenue ($ in thousands) |
|
$ |
8,453 |
|
|
$ |
4,606 |
|
|
$ |
3,847 |
|
|
83.5 |
% |
|
$ |
15,202 |
|
|
$ |
10,546 |
|
|
$ |
4,656 |
|
|
44.1 |
% |
Average sales price of
lots sold |
|
$ |
159,491 |
|
|
$ |
124,481 |
|
|
$ |
35,010 |
|
|
28.1 |
% |
|
$ |
150,515 |
|
|
$ |
125,547 |
|
|
$ |
24,968 |
|
|
19.9 |
% |
Land sales
revenue ($ in thousands) |
|
$ |
2,679 |
|
|
$ |
— |
|
|
$ |
2,679 |
|
|
— |
% |
|
$ |
3,829 |
|
|
$ |
— |
|
|
$ |
3,829 |
|
|
— |
% |
|
Three Months EndedJune 30, |
|
|
|
Six Months EndedJune 30, |
|
|
New Home Orders and Backlog |
2018 |
|
2017 |
|
Change |
|
% |
|
2018 |
|
2017 |
|
Change |
|
% |
Net new home
orders |
387 |
|
|
270 |
|
|
117 |
|
|
43.3 |
% |
|
821 |
|
|
557 |
|
|
264 |
|
|
47.4 |
% |
Average selling
communities |
62 |
|
|
52 |
|
|
10 |
|
|
19.2 |
% |
|
62 |
|
|
53 |
|
|
9 |
|
|
17.0 |
% |
Selling communities at
end of period |
69 |
|
|
54 |
|
|
15 |
|
|
27.8 |
% |
|
|
|
|
|
|
|
|
Backlog ($ in
thousands) |
$ |
314,177 |
|
|
$ |
165,154 |
|
|
$ |
149,023 |
|
|
90.2 |
% |
|
|
|
|
|
|
|
|
Backlog (units) |
700 |
|
|
331 |
|
|
369 |
|
|
111.5 |
% |
|
|
|
|
|
|
|
|
Average sales price of
backlog |
$ |
448,824 |
|
|
$ |
498,955 |
|
|
$ |
(50,131 |
) |
|
(10.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the non-GAAP measure of adjusted
EPS for the three and six months ended June 30, 2018 and 2017
and reconciles these amounts to net income attributable to Green
Brick as reported and prepared in accordance with GAAP. Adjusted
EPS for the three and six months ended June 30, 2018 and 2017
represents adjusted pre-tax income for the period presented,
divided by the weighted average number of common shares outstanding
for the three and six months ended June 30, 2018 and 2017,
respectively. Adjusted pre-tax income represents net income
attributable to Green Brick for the period, excluding the provision
for income taxes attributable to Green Brick and one-time
transaction expenses related to a public secondary offering of the
Company's shares.
|
|
|
(Unaudited, in thousands, except per share
amounts): |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
income attributable to Green Brick |
|
$ |
14,869 |
|
|
$ |
7,689 |
|
|
$ |
26,072 |
|
|
$ |
13,886 |
|
Income
tax provision attributable to Green Brick |
|
|
5,149 |
|
|
|
4,349 |
|
|
|
8,484 |
|
|
|
8,204 |
|
Transaction expenses |
|
|
705 |
|
|
|
— |
|
|
|
827 |
|
|
|
— |
|
Adjusted
pre-tax income attributable to Green Brick |
|
$ |
20,723 |
|
|
$ |
12,038 |
|
|
$ |
35,383 |
|
|
$ |
22,090 |
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding —basic |
|
|
50,664 |
|
|
|
49,047 |
|
|
|
50,620 |
|
|
|
49,003 |
|
Basic
adjusted EPS |
|
$ |
0.41 |
|
$ |
0.25 |
|
$ |
0.70 |
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding —diluted |
|
|
50,783 |
|
|
|
49,123 |
|
|
|
50,751 |
|
|
|
49,070 |
|
Diluted
adjusted EPS |
|
$ |
0.41 |
|
$ |
0.25 |
|
$ |
0.70 |
|
$ |
0.45 |
|
The following table represents the non-GAAP measure of adjusted
homebuilding gross margin for the three and six months ended
June 30, 2018 and 2017 and reconciles these amounts to
homebuilding gross margin, the most directly comparable GAAP
measure.
|
(Unaudited, in thousands): |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Homebuilding gross
margin |
|
$ |
31,562 |
|
|
$ |
21,792 |
|
|
$ |
57,419 |
|
|
$ |
41,428 |
|
Add back: Capitalized
interest charged to cost of sales |
|
851 |
|
|
698 |
|
|
1,611 |
|
|
1,303 |
|
Adjusted homebuilding
gross margin |
|
$ |
32,413 |
|
|
$ |
22,490 |
|
|
$ |
59,030 |
|
|
$ |
42,731 |
|
|
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a diversified
homebuilding and land development company. The Company acquires and
develops land, provides land and construction financing to its
controlled builders and participates in the profits of its
controlled builders. Green Brick owns a controlling interest in
four homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes
(a division of CB JENI Homes), Southgate Homes, and Centre Living
Homes), as well as a homebuilder in Atlanta, Georgia (The
Providence Group) and a homebuilder in Port St. Lucie, Florida (GHO
Homes). Green Brick also owns a noncontrolling interest in
Challenger Homes in Colorado Springs, Colorado. The Company is
engaged in all aspects of the homebuilding process, including land
acquisition and development, entitlements, design, construction,
marketing and sales and the creation of brand images at our
residential neighborhoods and master planned communities. For more
information about Green Brick Partners Inc.'s homebuilding
partners, please
visit https://greenbrickpartners.com/team-builders/.
Forward-Looking and Cautionary Statements:
Any statements in this press release about Green Brick’s
expectations, beliefs, plans, objectives, prospects, financial
condition, assumptions or future events or performance that are not
historical facts are forward-looking statements. These statements
are often, but not always, made through the use of words or phrases
such as “may,” “will,” “should,” “could,” “would,” “predicts,”
“potential,” “continue,” “expects,” “anticipates,” “future,”
“outlook,” “strategy,” “positioned,” “intends,” “plans,”
“believes,” “projects,” “estimates” and similar expressions, as
well as statements in the future tense. These statements are based
on assumptions that Green Brick has made in light of its experience
in the industry as well as its perceptions of historical trends,
current conditions, expected future developments and other factors
it believes are appropriate under the circumstances. Accordingly,
all such forward-looking statements involve estimates and
assumptions that are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from
the results expressed in the statements. Among the factors that
could cause actual results to differ materially from those
projected in the forward-looking statements are the following:
general economic conditions, seasonality, cyclicality and
competition in the homebuilding industry; demand for real estate
investments in the geographic markets in which we operate;
significant inflation or deflation; labor and raw material
shortages; the failure to recruit, retain and develop highly
skilled and competent employees; an inability to acquire land
suitable for residential homebuilding at reasonable prices; an
inability to develop and sell communities successfully or within
expected timeframes; risks related to regulatory approvals and
government regulation; the interpretation of or changes to tax,
labor and environmental laws and regulations; volatility of
mortgage interest rates; the unavailability of mortgage financing;
the occurrence of severe weather or natural disasters; risks
related to future growth through strategic investments, joint
ventures, partnerships and/or acquisitions; risks related to
holding noncontrolling interests in strategic investments, joint
ventures, partnerships and/or acquisitions; the inability to obtain
suitable bonding for the development of housing projects;
difficulty in obtaining sufficient capital; the occurrence of a
major health and safety incident; poor relations with the residents
of our communities; information technology failures and data
security breaches; product liability claims, litigation and
warranty claims; our debt and related service obligations; required
accounting changes; inability to maintain effective internal
control over financial reporting; and other risks and uncertainties
inherent in our business. Additional factors that could cause
actual results to differ from those anticipated are discussed in
the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the Company’s
annual and quarterly reports filed with the Securities and Exchange
Commission. Because the factors referred to above could cause
actual results or outcomes to differ materially from those
expressed or implied in any forward-looking statements made by
Green Brick, you should not place undue reliance on any such
forward-looking statements. Further, any forward-looking statement
speaks only as of the date of this press release, and Green Brick
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after such date.
Contact: Richard A. CostelloChief Financial Officer(469)
573-6755
A PDF is available
at http://resource.globenewswire.com/Resource/Download/bdf362c3-b7d1-4744-84d8-3e2586088595
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