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PLANO, TX --(Marketwired - November 07, 2016) - Green Brick Partners, Inc. GRBK ("we," "Green Brick" or the "Company"), today reported results for its third quarter ended September 30, 2016.
Results for the Third Quarter Ended September 30, 2016:
-- Basic net income attributable to Green Brick per common share ("EPS")
for the three months ended September 30, 2016 was $0.13, an increase of
116.7%, compared to $0.06 for the three months ended September 30, 2015.
Basic adjusted net income attributable to Green Brick per common share
("Adjusted EPS") for the three months ended September 30, 2016 was
$0.20, an increase of 100.0%, compared to $0.10 for the three months
ended September 30, 2015. See "Reconciliation of Non-GAAP Financial
Measures."
-- For the three months ended September 30, 2016, the Company had: pre-tax
income of $9.9 million, an increase of 111.8%, compared to $4.7 million
for the three months ended September 30, 2015; gross profit of $22.3
million, an increase of 41.6%, compared to $15.7 million for the three
months ended September 30, 2015; and revenue of $91.7 million, an
increase of 21.9%, compared to $75.2 million for three months ended
September 30, 2015.
-- Builder operations revenue for the three months ended September 30, 2016
was $87.8 million, an increase of 27.0%, compared to $69.2 million for
the three months ended September 30, 2015. Land development revenue for
the three months ended September 30, 2016 was $3.8 million compared to
$6.0 million for the three months ended September 30, 2015. The decrease
in land development revenue is due to an increase in lot sales to Green
Brick's builders where revenue is not recognized until the house
closing.
-- The dollar value of backlog units as of September 30, 2016 was $138.7
million, an increase of 41.1% compared to September 30, 2015. The
average sales price of homes in backlog increased $22,116, or 5.3%, to
$440,273 for the three months ended September 30, 2016, compared to
$418,157 for the three months ended September 30, 2015.
-- Homes under construction increased 22.5% to 665 as of September 30,
2016, compared to 543 as of September 30, 2015.
Results for the Nine Months Ended September 30, 2016:
-- Basic EPS for the nine months ended September 30, 2016 was $0.33, an
increase of 13.8%, compared to $0.29 for the nine months ended September
30, 2015. Basic Adjusted EPS for the nine months ended September 30,
2016 was $0.52, an increase of 52.9%, compared to $0.34 for the nine
months ended September 30, 2015. See "Reconciliation of Non-GAAP
Financial Measures."
-- For the nine months ended September 30, 2016, the Company had: pre-tax
income of $25.3 million, an increase of 51.1%, compared to $16.8 million
for the nine months ended September 30, 2015; gross profit of $61.5
million, an increase of 25.2%, compared to $49.1 million for the nine
months ended September 30, 2015; and revenue of $260.6 million, an
increase of 26.7%, compared to $205.6 million for nine months ended
September 30, 2015.
-- Builder operations revenue for the nine months ended September 30, 2016
was $248.2 million, an increase of 38.5%, compared to $179.2 million for
the nine months ended September 30, 2015. Land development revenue for
the nine months ended September 30, 2016 was $12.4 million compared to
$26.4 million for the nine months ended September 30, 2015. The decrease
in land development revenue is due to an increase in lot sales to Green
Brick's builders where revenue is not recognized until the house
closing.
"I am very pleased with our strong third quarter, with $9.9 million in pre-tax income, a robust backlog and significant year-to-date increases in housing revenue and other metrics," said James R. Brickman, Green Brick's Chief Executive Officer. "Especially encouraging has been the improvement to our homebuilding gross margin percentage. Many of our peers have experienced declining margins, but because of our superior lot position, strong markets and unique structure, our adjusted gross margin percentage rose to 24.5% in the third quarter of 2016."
Earnings Conference Call:
We will host our earnings conference call to discuss our third quarter ended September 30, 2016 at 12:00 p.m. Eastern Time on Tuesday, November 8, 2016. 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 2626394. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on November 8, 2016 through 11:59 p.m. Eastern Time on November 15, 2016. 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 2626394.
Reclassifications:
Depreciation of model home furnishings for the three and nine months ended September 30, 2015 has been reclassified from depreciation and amortization expense in the consolidated statements of income to cost of residential units to conform to the current year presentation.
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 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.
On July 1, 2015, the Company completed an underwritten public offering of 17,000,000 shares of its common stock at a price to the public of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the "Equity Offering"). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. Due to the effects of the Equity Offering, the weighted average shares outstanding for the three months ended September 30, 2015 is indicative of the Company's future weighted average shares outstanding, however the weighted average shares outstanding for the nine months ended September 30, 2015 is not.
GREEN BRICK PARTNERS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- --------------------
2016 2015 2016 2015
---------- ---------- --------- ---------
Sale of residential units $ 87,827 $ 69,165 $ 248,187 $ 179,195
Sale of land and lots 3,843 6,033 12,377 26,442
---------- ---------- --------- ---------
Total revenues 91,670 75,198 260,564 205,637
---------- ---------- --------- ---------
Cost of residential units 66,737 55,263 190,665 137,431
Cost of land and lots 2,676 4,217 8,389 19,095
---------- ---------- --------- ---------
Total cost of sales 69,413 59,480 199,054 156,526
---------- ---------- --------- ---------
Total gross profit 22,257 15,718 61,510 49,111
Salary expense (6,587) (5,062) (19,506) (14,571)
Selling, general and
administrative expense (4,334) (3,385) (12,792) (9,700)
---------- ---------- --------- ---------
Operating profit 11,336 7,271 29,212 24,840
Interest expense - - - (281)
Depreciation and amortization
expense (78) (531) (199) (873)
Interest on direct financing
leases income - - - 13
Other income, net 564 402 2,400 1,008
---------- ---------- --------- ---------
Income before provision for
income taxes 11,822 7,142 31,413 24,707
Income tax provision 3,657 1,856 9,340 6,229
---------- ---------- --------- ---------
Net income 8,165 5,286 22,073 18,478
Less: net income attributable
to noncontrolling interests 1,922 2,460 5,993 7,846
---------- ---------- --------- ---------
Net income attributable to
Green Brick Partners, Inc. $ 6,243 $ 2,826 $ 16,080 $ 10,632
========== ========== ========= =========
Net income attributable to
Green Brick Partners, Inc.
per common share:
Basic $ 0.13 $ 0.06 $ 0.33 $ 0.29
Diluted $ 0.13 $ 0.06 $ 0.33 $ 0.29
Weighted average common shares
used in the calculation of
net income attributable to
Green Brick Partners, Inc.
per common share:
Basic 48,899 48,495 48,868 37,125
Diluted 48,907 48,595 48,871 37,161
GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)
Three Months
Ended Increase Nine Months Ended Increase
September 30, (Decrease) September 30, (Decrease)
----------------- ------------- ----------------- ------------
New Homes
Delivered
and Home
Sales
Revenue 2016 2015 Change % 2016 2015 Change %
---------- -------- -------- ------- ---- -------- -------- ------- ----
New homes
delivered 196 154 42 27.3% 569 461 108 23.4%
Home sales
revenue
($ in
thousands
) $ 87,827 $ 69,165 $18,662 27.0% $248,187 $179,195 $68,992 38.5%
Average
sales
price of
home
delivered $448,097 $449,123 $(1,026) (0.2)% $436,181 $388,709 $47,472 12.2%
Three Months
Ended Increase Nine Months Ended Increase
September 30, (Decrease) September 30, (Decrease)
----------------- ------------- ----------------- --------------
Land and
Lots
Sales
Revenue 2016 2015 Change % 2016 2015 Change %
---------------- -------- ------- ----- -------- -------- -------- -----
Land and
lots
sold 28 54 (26)(48.1)% 95 239 (144)(60.3)%
Land and
lots
sales
revenue
($ in
thousan
ds) $ 3,843 $ 6,033 $(2,190)(36.3)% $ 12,377 $ 26,442 $(14,065)(53.2)%
Average
sales
price
of land
and
lots
sold $137,259 $111,716 $25,543 22.9% $130,284 $110,635 $ 19,649 17.8%
Three Months
Ended Increase Nine Months Ended Increase
September 30, (Decrease) September 30, (Decrease)
----------------- -------------- ----------------- ------------
New Home
Orders &
Backlog 2016 2015 Change % 2016 2015 Change %
---------- -------- -------- -------- ----- -------- -------- ------- ----
Net new
home
orders 204 140 64 45.7% 683 487 196 40.2%
Average
selling
communiti
es 49 43 6 14.0% 47 41 6 14.6%
Selling
communiti
es at end
of period 49 42 7 16.7% 49 42 7 16.7%
Backlog ($
in
thousands
) $138,686 $98,267 $40,419 41.1%
Backlog
(units) 315 235 80 34.0%
Average
sales
price of
backlog $440,273 $418,157 $22,116 5.3%
The following table calculates the non-GAAP measure of Adjusted EPS for the three and nine months ended September 30, 2016 and September 30, 2015 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 nine months ended September 30, 2016 and September 30, 2015 means pre-tax income for the period presented divided by the weighted average number of common shares outstanding for the three and nine months ended September 30, 2016. Pre-tax income represents net income attributable to Green Brick for the period excluding provision for income taxes attributable to Green Brick.
(In thousands, except per share Three Months Ended Nine Months Ended
amounts): September 30, September 30,
--------------------- ---------------------
2016 2015 2016 2015
-------------------------------- ---------- ---------- ---------- ----------
Basic Adjusted EPS
Net income attributable to Green
Brick -basic $ 6,243 $ 2,826 $ 16,080 $ 10,632
Income tax provision
attributable to Green Brick $ 3,624 $ 1,832 $ 9,260 $ 6,143
---------- ---------- ---------- ----------
Pre-tax income $ 9,867 $ 4,658 $ 25,340 $ 16,775
Adjusted weighted-average number
of shares outstanding -basic 48,899 48,899 48,868 48,868
---------- ---------- ---------- ----------
Basic Adjusted EPS $ 0.20 $ 0.10 $ 0.52 $ 0.34
========== ========== ========== ==========
Diluted Adjusted EPS
Net income attributable to Green
Brick -diluted $ 6,243 $ 2,826 $ 16,080 $ 10,632
Income tax provision
attributable to Green Brick $ 3,624 $ 1,832 $ 9,260 $ 6,143
---------- ---------- ---------- ----------
Pre-tax income $ 9,867 $ 4,658 $ 25,340 $ 16,775
Adjusted weighted-average number
of shares outstanding -diluted 48,907 48,907 48,871 48,871
---------- ---------- ---------- ----------
Diluted Adjusted EPS $ 0.20 $ 0.10 $ 0.52 $ 0.34
========== ========== ========== ==========
The following table calculates the non-GAAP measure of Adjusted Homebuilding Gross Margin for the three and nine months ended September 30, 2016 and September 30, 2015 and reconciles these amounts to homebuilding gross margin, as reported and prepared in accordance with GAAP.
Three Months Ended Nine Months Ended
(In thousands): September 30, September 30,
--------------------- ---------------------
2016 2015 2016 2015
-------------------------------- ---------- ---------- ---------- ----------
Homebuilding gross margin $ 21,090 $ 13,902 $ 57,522 $ 41,764
Add back: capitalized interest
charged to cost of sales $ 426 $ 1,389 $ 2,051 $ 2,315
---------- ---------- ---------- ----------
Adjusted Homebuilding Gross
Margin $ 21,516 $ 15,291 $ 59,573 $ 44,079
========== ========== ========== ==========
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. GRBK is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
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; 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; an 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.
Attachment Available: http://www.marketwire.com/library/MwGo/2016/11/8/11G121132/Third_Quarter_2016_Investor_Call_Presentation_Nove-f9987adbd09d89dead93ecc722f72bd0.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact:
Richard A. Costello
Chief Financial Officer
(469) 573-6755
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