Record Total Revenues of $373.8 Million, Up 60.5%
Record Income Before Income Taxes of $74.0 Million, Up 104.4%
Backlog of $974.3 Million, Up 118.2%
Home Building Gross Margin Up 360 bps
Record Lots Owned and Controlled Up 132.7%

PLANO, Texas, Aug. 03, 2021 (GLOBE NEWSWIRE) — Green Brick Partners, Inc. (Nasdaq: GRBK) (“we,” “Green Brick” or the “Company”) today reported record results for its second quarter ended June 30, 2021.

“With our all-time record results achieved this quarter, Green Brick’s annualized Q2 2021 return on equity hit a new high at 30.2%. Thanks to a great team effort, we provided our investors some of the best returns in the industry. Even better, we expect these returns to accelerate,” said Jim Brickman, CEO and Co-Founder. “Our total revenues were $1.1 billion on a trailing twelve months basis. From Q1 to Q2, we increased home building revenues by 54% and our EPS doubled. We continue to be confident that our revenues and earnings will continue to grow sequentially each quarter this year.”

“Our core focus on land development and our dominant presence and reputation in our markets has resulted in a 133% increase in our lots owned and controlled from a year prior. Our superior capacity to source new land has allowed us to grow our units under construction an astounding 95% as compared to June 30, 2020 and provides a ready supply of new housing to meet current demand.”

Results for the Quarter Ended June 30, 2021:

For the quarter ended June 30, 2021, our net new home deliveries, residential units revenue, and net income per share reflect a record for any quarter since the Company’s inception. Homes under construction and lots owned and controlled also represent a Company record as of the end of any quarter.

(Dollars in thousands, except per share data) Three Months Ended June 30,
2021 2020 Increase
New homes delivered 757 553 36.9 %
Total revenues $ 373,806 $ 232,833 60.5 %
Total cost of revenues 272,830 178,938 52.5 %
Total gross profit $ 100,976 $ 53,895 87.4 %
Income before income taxes $ 73,977 $ 36,185 104.4 %
Net income attributable to Green Brick Partners, Inc. $ 52,263 $ 33,647 55.3 %
Diluted net income attributable to Green Brick Partners, Inc. per share $ 1.02 $ 0.66 54.5 %
Residential units revenue $ 333,500 $ 228,667 45.8 %
Homebuilding gross margin percentage 26.8 % 23.2 % 360 bps
Backlog $ 974,349 $ 446,573 118.2 %
Lots owned and controlled 21,351 9,176 132.7 %
Homes under construction 2,486 1,273 95.3 %
Net income attributable to Green Brick Partners, Inc. as a percentage of the average total Green Brick Partners, Inc. stockholders’ equity 30.2 % 24.1 % 610 bps

“Our gross margin reached 26.8% this quarter, up 360 basis points from the prior year and up 140 basis points from the first quarter, as Green Brick has achieved pricing power in our core markets of Dallas-Ft. Worth and Atlanta,” said Rick Costello, CFO. “In order to capitalize on rising prices and demand, we have paced sales with price increases in excess of rising input costs. We believe this focus on price over pace will sustain our industry-leading margins and strong financial performance through the remainder of 2021.”

Green Brick, like every other company in the United States and the global economy, has been impacted by the coronavirus, or COVID-19, pandemic and the impact of governmental actions taken to combat the pandemic. After an initial decline in orders and construction at the onset of the crisis, orders have subsequently achieved all-time highs. The significant increase in new home demand that we have seen since the second half of 2020 has, in turn, led to increased demand for the raw materials, products and appliances for new homes. Due to the increased demand for certain materials, we have and may continue to experience price increases, shortages and significant extensions to our lead time for the delivery of materials such as lumber, appliances and windows.

Earnings Conference Call:
We will host our earnings conference call to discuss our second quarter ended June 30, 2021 at 12:00 p.m. Eastern Time on Wednesday, August 4, 2021. The call can be accessed by dialing 877-407-0890 for domestic participants or 201-389-0918 for international participants and should reference meeting number 13721299. Participants may also join the call via webcast at: greenbrickpartners.com/reporting/.

The webcast replay will be available from the Company’s website at greenbrickpartners.com/reporting/ through September 30th, 2021. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on August 4th, 2021 through 11:59 p.m. Eastern Time on September 1st, 2021. To access the replay, the domestic dial-in number is 877-660-6853, the international dial-in number is 201-612-7415 and the conference ID code is 13721299.

Non-GAAP Financial Measures and Key Financial Metrics:

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.

GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Residential units revenue $ 333,500 $ 228,667 $ 550,736 $ 419,854
Land and lots revenue 40,306 4,166 57,549 26,246
Total revenues 373,806 232,833 608,285 446,100
Cost of residential units 244,165 175,723 406,237 322,910
Cost of land and lots 28,665 3,215 42,083 20,326
Total cost of revenues 272,830 178,938 448,320 343,236
Total gross profit 100,976 53,895 159,965 102,864
Selling, general and administrative expenses (33,985 ) (25,672 ) (63,473 ) (52,541 )
Equity in income of unconsolidated entities 4,593 5,174 8,484 7,739
Other income, net 2,393 2,788 4,263 879
Income before income taxes 73,977 36,185 109,239 58,941
Income tax expense 15,694 1,348 23,195 7,388
Net income 58,283 34,837 86,044 51,553
Less: Net income attributable to noncontrolling interests 6,020 1,190 7,812 1,989
Net income attributable to Green Brick Partners, Inc. $ 52,263 $ 33,647 $ 78,232 $ 49,564
Net income attributable to Green Brick Partners, Inc. per common share:
Basic $ 1.03 $ 0.67 $ 1.54 $ 0.98
Diluted $ 1.02 $ 0.66 $ 1.53 $ 0.98
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:
Basic 50,701 50,583 50,667 50,519
Diluted 51,064 50,692 51,029 50,669

GREEN BRICK PARTNERS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

June 30, 2021 December 31, 2020
ASSETS
Cash and cash equivalents $ 33,517 $ 19,479
Restricted cash 23,598 14,156
Receivables 7,007 5,224
Inventory 1,106,141 844,635
Investments in unconsolidated entities 50,342 46,443
Right-of-use assets – operating leases 4,528 2,538
Property and equipment, net 3,712 3,595
Earnest money deposits 20,161 22,242
Deferred income tax assets, net 15,376 15,376
Intangible assets, net 580 622
Goodwill 680 680
Other assets 21,494 13,857
Total assets $ 1,287,136 $ 988,847
LIABILITIES AND EQUITY
Liabilities:
Accounts payable $ 45,761 $ 24,521
Accrued expenses 57,425 40,416
Customer and builder deposits 63,700 38,131
Lease liabilities – operating leases 4,582 2,591
Borrowings on lines of credit, net 130,605 106,687
Senior unsecured notes, net 235,624 111,056
Notes payable 233 2,125
Contingent consideration 368
Total liabilities 537,930 325,895
Commitments and contingencies
Redeemable noncontrolling interest in equity of consolidated subsidiary 17,515 13,543
Equity:
Green Brick Partners, Inc. stockholders’ equity
Preferred stock, $0.01 par value: 5,000,000 shares authorized; none issued and outstanding
Common stock, $0.01 par value: 100,000,000 shares authorized; 51,151,911 and 51,053,858 issued and 50,759,972 and 50,661,919 outstanding as of June 30, 2021 and December 31, 2020, respectively 511 511
Treasury stock, at cost, 391,939 shares (3,167 ) (3,167 )
Additional paid-in capital 292,157 293,242
Retained earnings 427,888 349,656
Total Green Brick Partners, Inc. stockholders’ equity 717,389 640,242
Noncontrolling interests 14,302 9,167
Total equity 731,691 649,409
Total liabilities and equity $ 1,287,136 $ 988,847

GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)

Residential Units Revenue and New Homes Delivered
(dollars in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 Change % 2021 2020 Change %
Home closings revenue $ 332,279 $ 226,785 $ 105,494 46.5 % $ 548,413 $ 416,033 $ 132,380 31.8 %
Mechanic’s lien contracts revenue 1,221 1,882 (661 ) (35.1 )% 2,323 3,821 (1,498 ) (39.2 ) %
Residential units revenue $ 333,500 $ 228,667 $ 104,833 45.8 % $ 550,736 $ 419,854 $ 130,882 31.2 %
New homes delivered 757 553 204 36.9 % 1,273 1,001 272 27.2 %
Average sales price of homes delivered $ 438.9 $ 410.1 $ 28.8 7.0 % $ 430.8 $ 415.6 $ 15.2 3.7 %

Land and Lots Revenue
(dollars in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 Change % 2021 2020 Change %
Lots revenue $ 4,615 $ 4,166 $ 449 10.8 % $ 13,058 $ 26,246 $ (13,188 ) (50.2 ) %
Land revenue 35,691 35,691 100 % 44,491 44,491 100.0 %
Land and lots revenue $ 40,306 $ 4,166 $ 36,140 867.5 % $ 57,549 $ 26,246 $ 31,303 119.3 %
Lots closed 63 26 37 142.3 % 142 164 (22 ) (13.4 ) %
Average sales price of lots closed $ 73.3 $ 160.2 $ (86.9 ) (54.2 )% $ 92.0 $ 160.0 $ (68.0 ) (42.5 ) %

New Home Orders and Backlog
(dollars in thousands)
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 Change % 2021 2020 Change %
Net new home orders 604 582 22 3.8 % 1,686 1,214 472 38.9 %
Cancellation rate 7.6 % 16.9 % (9.3 ) % (55.0 )% 6.6 % 16.6 % (10.0 ) % (60.2 ) %
Absorption rate per average active selling community per quarter 6.8 6.3 0.5 7.9 % 9.1 6.5 2.6 40.0 %
Average active selling communities 89 92 (3 ) (3.3 )% 93 93 %
Active selling communities at end of period 87 90 (3 ) (3.3 )%
Backlog $ 974,349 $ 446,573 $ 527,776 118.2 %
Backlog (units) 1,876 999 877 87.8 %
Average sales price of backlog $ 519.4 $ 447.0 $ 72.4 16.2 %

   June 30, 2021 December 31, 2020
Lots owned (1)
Central 14,115 6,823
Southeast 2,212 2,097
Total lots owned 16,327 8,920
Lots controlled (1)
Central 4,126 4,398
Southeast 898 1,150
Total lots controlled 5,024 5,548
Total lots owned and controlled (1) 21,351 14,468
Percentage of lots owned 76.5 % 61.7 %

____________________
(1)   Excludes lots with homes under construction.

GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)

The following table presents additional information on the lots we owned as of June 30, 2021 and December 31, 2020.

June 30, 2021 December 31, 2020
Total lots owned 16,327 8,920
Add certain lots included in Total Lots Controlled
Land under option for future acquisition and development 606 740
Lots under option through unconsolidated development joint ventures 1,844 1,838
Total lots self-developed 18,777 11,498
Self-developed lots as a percentage of total lots owned and controlled 87.9 % 79.5 %

Reconciliation of Non-GAAP Financial Measures

The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three and six months ended June 30, 2021 and 2020 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

(Unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Residential units revenue $ 333,500 $ 228,667 $ 550,736 $ 419,854
Less: Mechanic’s lien contracts revenue (1,221 ) (1,882 ) (2,323 ) (3,821 )
Home closings revenue $ 332,279 $ 226,785 $ 548,413 $ 416,033
Homebuilding gross margin $ 89,055 $ 52,609 $ 143,959 $ 96,266
Homebuilding gross margin percentage 26.8 % 23.2 % 26.3 % 23.1 %
Homebuilding gross margin 89,055 52,609 143,959 96,266
Add back: Capitalized interest charged to cost of revenues 2,533 2,707 4,346 4,888
Adjusted homebuilding gross margin $ 91,588 $ 55,316 $ 148,305 $ 101,154
Adjusted homebuilding gross margin percentage 27.6 % 24.4 % 27.0 % 24.3 %

The following table presents the pre-tax income for the three and six months ended June 30, 2021 and 2020, which represents net income attributable to Green Brick for the period excluding the provision for income taxes attributable to Green Brick, and reconciles these amounts to net income attributable to Green Brick, the most directly comparable GAAP measure.

(Unaudited, in thousands): Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income attributable to Green Brick Partners, Inc. $ 52,263 $ 33,647 $ 78,232 $ 49,564
Income tax expense attributable to Green Brick Partners, Inc. 15,693 1,348 23,193 7,386
Pre-tax income attributable to Green Brick Partners, Inc. $ 67,956 $ 34,995 $ 101,425 $ 56,950

The following table presents the non-GAAP measure of net income attributable to Green Brick Partners, Inc. for the three months ended June 30, 2021 and 2020, divided by the average total Green Brick Partners, Inc. stockholder’s equity to calculate our return on average equity. We believe this non-GAAP financial measure is relevant in measuring our profitability in relation to stockholder’s equity and should only be used to supplement Green Brick’s GAAP results.

 (Unaudited, in thousands): Three Months Ended June 30,
2021 2020
Net income attributable to Green Brick Partners, Inc. $ 52,263 $ 33,647
Beginning total Green Brick Partners, Inc. stockholders’ equity 666,131 542,982
Ending total Green Brick Partners, Inc. stockholders’ equity 717,389 575,759
Average total Green Brick Partners, Inc. stockholders’ equity $ 691,760 559,371
Net income attributable to Green Brick Partners, Inc. as a percentage of the average total Green Brick Partners, Inc. stockholders’ equity 30.2 % 24.1 %

About Green Brick Partners, Inc.

Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns five homebuilders in Dallas, 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 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, Providence Group Title, and Green Brick Mortgage. Green Brick is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for 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:

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 include statements regarding (i) our strategy for growth, the drivers and acceleration of that growth, and the impact on our results over the remainder of 2021, (ii) our margins and performance through 2021 as compared to the industry, (iii) our ability to capitalize on market opportunities and the impact on our results and (iv) our land and lot acquisition strategy and its impact on our ability to meet market demand. 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) continuing impacts from the COVID-19 pandemic, (2) general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (3) changes in macroeconomic conditions, including interest rates and unemployment rates, that could adversely impact demand for new homes or the ability of potential buyers to qualify; (4) shortages, delays or increased costs of raw materials, especially in light of COVID-19 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; (5) a shortage of labor, (6) an inability to acquire land in our markets at anticipated prices or difficulty in obtaining land-use entitlements; (7) our inability to successfully execute our strategies, including an inability to grow our operations or expand our Trophy brand; (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 or a rise in interest rates; (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 and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.