33.3% INCREASE IN RESIDENTIAL UNITS REVENUE
35.8% INCREASE IN BACKLOG DOLLARS
13.6% EARNINGS PER SHARE INCREASE

PLANO, Texas, May 02, 2019 (GLOBE NEWSWIRE) — Green Brick Partners, Inc. (Nasdaq: GRBK) (“we,” “Green Brick” or the “Company”) today reported results for its first quarter ended March 31, 2019.

Results for the First Quarter Ended March 31, 2019:

  • Basic net income attributable to Green Brick per common share (“EPS”) for the three months ended March 31, 2019 was $0.25, an increase of 13.6%, compared to $0.22 for the three months ended March 31, 2018.
  • For the three months ended March 31, 2019, net income attributable to Green Brick was $12.6 million, an increase of 12.5%, compared to $11.2 million for the three months ended March 31, 2018; gross profit was $35.4 million, an increase of 8.4%, compared to $32.6 million for the three months ended March 31, 2018; and total revenue was $168.6 million, an increase of 30.6%, compared to $129.2 million for the three months ended March 31, 2018.
  • Residential units revenue for the three months ended March 31, 2019 was $161.6 million, an increase of 33.3%, compared to $121.3 million for the three months ended March 31, 2018. Land and lots revenue for the three months ended March 31, 2019 was $7.0 million, a decrease of 10.9%, compared to $7.9 million for the three months ended March 31, 2018.
  • The dollar value of backlog units as of March 31, 2019 was $307.5 million, an increase of 35.8% compared to $226.5 million as of March 31, 2018.
  • Average active selling communities increased from 55 communities as of March 31, 2018 to 78 communities as of March 31, 2019, an increase of 41.8%.
  • Homes under construction increased 53.9% to 1,170 as of March 31, 2019, compared to 760 as of March 31, 2018.

“I am pleased that we had the best first quarter performance in our company’s history, with a 33.3% increase in home building revenues, record first quarter home closings, and $12.6 million net income attributable to Green Brick, up 12.5% year over year. Though the competitive market pressured margins, our business model demonstrated its strength, as we are growing through a tougher market. We are on track to achieve moderate pre-tax income growth in 2019 while still maintaining one of the most solid balance sheets in the industry. Finally, our newest homebuilder brand, Trophy Signature Homes, is off to a great start and we expect continued momentum into the second half of 2019”, said Jim Brickman, CEO of Green Brick Partners, Inc.

Earnings Conference Call:

We will host our earnings conference call to discuss our first quarter ended March 31, 2019 at 12:00 p.m. Eastern Time on Friday, May 3, 2019. 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 2132679. A replay of the call will be available from approximately 3:30 p.m. Eastern Time on May 3, 2019 through 11:59 p.m. Eastern Time on May 10, 2019. 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 2132679.

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.

Reclassifications:

Beginning in the first quarter of 2019, the Company reclassified its sales commission expenses from cost of residential units to selling, general and administrative expense in the consolidated statements of income in order to be more readily comparable with a majority of its peers. There was no impact to net income from the reclassification in any period. Following this reclassification, the Company’s homebuilding gross margin was 20.8% for the three months ended March 31, 2019. Sales commission expenses represented 4.0% of the residential units revenue for the three months ended March 31, 2019.

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

    Three Months Ended March 31,
    2019   2018
Residential units revenue   $ 161,588     $ 121,264  
Land and lots revenue   7,040     7,899  
Total revenues   168,628     129,163  
Cost of residential units   127,828     89,903  
Cost of land and lots   5,434     6,626  
Total cost of revenues   133,262     96,529  
Total gross profit   35,366     32,634  
Selling, general and administrative expense   23,532     18,129  
Change in fair value of contingent consideration   454      
Operating profit   11,380     14,505  
Equity in income of unconsolidated entities   1,846     1,536  
Other income, net   2,093     570  
Income before income taxes   15,319     16,611  
Income tax expense   3,828     3,372  
Net income   11,491     13,239  
Less: Net (loss) income attributable to noncontrolling interests   (1,114 )   2,036  
Net income attributable to Green Brick Partners, Inc.   $ 12,605     $ 11,203  
         
Net income attributable to Green Brick Partners, Inc. per common share:        
Basic   $ 0.25     $ 0.22  
Diluted   $ 0.25     $ 0.22  
Weighted average common shares used in the calculation of net income attributable to Green Brick Partners, Inc. per common share:        
Basic   50,563     50,577  
Diluted   50,605     50,718  
             

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

    March 31, 2019   December 31, 2018
ASSETS
Cash   $ 23,873     $ 38,315  
Restricted cash   2,741     3,440  
Receivables   2,774     4,842  
Inventory   690,817     668,961  
Investment in unconsolidated entities   21,843     20,269  
Right-of-use assets – operating leases   3,877      
Property and equipment, net   4,464     4,690  
Earnest money deposits   13,474     16,793  
Deferred income tax assets, net   17,454     16,499  
Intangible assets, net   765     856  
Goodwill   680     680  
Other assets   10,258     8,681  
Total assets   $ 793,020     $ 784,026  
LIABILITIES AND EQUITY
Liabilities:        
Accounts payable   $ 21,640     $ 26,091  
Accrued expenses   31,914     29,201  
Customer and builder deposits   30,335     31,978  
Lease liabilities – operating leases   3,996      
Borrowings on lines of credit, net   206,522     200,386  
Contingent consideration   2,661     2,207  
Total liabilities   297,068     289,863  
Commitments and contingencies        
Redeemable noncontrolling interest in equity of consolidated subsidiary   10,295     8,531  
Equity:        
Green Brick Partners, Inc. stockholders’ equity        
Preferred stock, $0.01 par value: 5,000,000 shares authorized; none issued and outstanding        
Common shares, $0.01 par value: 100,000,000 shares authorized; 50,820,548 and 50,719,884 issued and 50,675,930 and 50,583,128 outstanding as of March 31, 2019 and December 31, 2018, respectively   508     507  
Treasury stock at cost, 144,618 and 136,756 shares as of March 31, 2019 and December 31, 2018, respectively   (1,041 )   (981 )
Additional paid-in capital   291,271     291,299  
Retained earnings   190,131     177,526  
    Total Green Brick Partners, Inc. stockholders’ equity   480,869     468,351  
Noncontrolling interests   4,788     17,281  
Total equity   485,657     485,632  
Total liabilities and equity   $ 793,020     $ 784,026  
                 

GREEN BRICK PARTNERS, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)

Residential Units Sales Revenue and New Homes Delivered   Three Months Ended March 31,    
  2019   2018   Change   %
Home closings revenue (dollars in thousands)   $ 159,233     $ 120,366     $ 38,867     32.3  %
Mechanic’s lien contracts revenue (dollars in thousands)   2,355     898     1,457     162.2  %
Residential units revenue (dollars in thousands)   $ 161,588     $ 121,264     $ 40,324     33.3  %
New homes delivered   368     267     101     37.8  %
Average sales price of homes delivered   $ 432,698     $ 450,809     $ (18,111 )   (4.0 )%
Land and Lots Sales Revenue   Three Months Ended March 31,    
  2019   2018   Change   %
Lots revenue (dollars in thousands)   $ 7,030     $ 6,749     $ 281     4.2  %
Land revenue (dollars in thousands)   10     1,150     (1,140 )   (99.1 )%
Land and lots revenue (dollars in thousands)   $ 7,040     $ 7,899     $ (859 )   (10.9 )%
Lots closed   47     48     (1 )   (2.1 )%
Average sales price of lots closed   $ 149,574     $ 140,604     $ 8,970     6.4  %
New Home Orders and Backlog   Three Months Ended March 31,    
  2019   2018   Change   %
Net new home orders   444     434     10     2.3  %
Cancellation rate   15.4 %   10.3 %   5.1  %   49.5  %
Absorption rate per active selling community   5.7     7.9     (2.2 )   (27.8 )%
Average active selling communities   78     55     23     41.8  %
Active selling communities at end of period   79     54     25     46.3  %
Backlog (dollars in thousands)   $ 307,548     $ 226,516     $ 81,032     35.8  %
Backlog (units)   658     477     181     37.9  %
Average sales price of backlog   $ 467,398     $ 474,876     $ (7,478 )   (1.6 )%
    March 31, 2019   December 31, 2018
Lots owned        
Central   4,381     4,447  
Southeast   1,805     1,788  
Total lots owned   6,186     6,235  
Lots controlled        
Central   1,455     853  
Southeast   853     990  
Total lots controlled   2,308     1,843  
Total lots owned and controlled (1)   8,494     8,078  
Percentage of lots owned   72.8 %   77.2 %

____________
(1)  Total lots excludes lots with homes under construction.

Reconciliation of Non-GAAP Financial Measures

The following table represents the non-GAAP measure of adjusted homebuilding gross margin for the three months ended March 31, 2019 and 2018 and reconciles these amounts to homebuilding gross margin, the most directly comparable GAAP measure.

    Three Months Ended March 31, 
(Unaudited, in thousands):     2019       2018  
Residential units revenue      161,588       121,264  
Less: Mechanic’s lien contracts revenue     (2,355 )     (898 )
Home closings revenue   $ 159,233     $ 120,366  
Homebuilding gross margin   $ 33,150     $ 31,223  
Add back: Capitalized interest charged to cost of revenues     1,007       759  
Adjusted homebuilding gross margin   $ 34,157     $ 31,982  
Adjusted homebuilding gross margin percentage     21.5 %     26.6 %

About Green Brick Partners, Inc.:

Green Brick Partners, Inc. (Nasdaq: GRBK) is a diversified homebuilding and land development company. Green Brick owns a controlling interest in five homebuilders in Dallas, Texas (CB JENI Homes, Normandy Homes, Southgate Homes, Centre Living Homes, and Trophy Signature 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 and retains interests in related financial services platforms, including Green Brick Title, Providence Group Title, and Green Brick 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’s homebuilding partners and financial services platforms, 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,” “predicts,” “potential,” “expects,” “future,” “positioned,” “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, as of the date of this press release. All such forward-looking statements involve estimates and assumptions that are subject to factors that could cause actual results to differ materially from the results expressed in the statements, and you should not place undue reliance on any such forward-looking statements. Among the factors that could cause actual results to differ materially are the following: general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; the failure to recruit, retain and develop highly skilled and competent employees; management and integration of acquisitions; labor and raw material shortages; an inability to acquire land for reasonable prices; an inability to develop and sell communities; government regulation risks; mortgage financing availability and volatility; severe weather or natural disasters; difficulty in obtaining sufficient capital; poor relations with community residents; and our debt and related service obligations. Additional factors that could cause actual results to differ 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. Green Brick undertakes no obligation to update any forward-looking statement except as required by law.

Contact: Richard A. Costello
Chief Financial Officer
(469) 573-6755

2805 Dallas Parkway, Suite 400 Plano, TX 75093 | © 2017, Green Brick Partners. All Rights Reserved. | Terms & Conditions of Website Use