Q1 2024 Green Brick Partners Inc Earnings Call Transcript
Key Points
- Record diluted earnings per share of $1.82 for Q1 2024, the highest for any first quarter in company history.
- Achieved a homebuilding gross margin of 33.4%, leading the industry and marking a new company high.
- Strong balance sheet with a net debt to total capital ratio of 8.2% and total debt to total capital ratio of 18.3%, one of the lowest among public homebuilding peers.
- Increased home deliveries by 8% year-over-year to 821 homes, driven by increased levels of finished and finishing spec home inventory.
- Net new home orders were 1,071 for Q1 2024, the second highest in company history, demonstrating strong demand despite higher interest rates.
- Average selling price (ASP) declined 8.6% year-over-year to $540,000, influenced by the closing out of infill communities and opening new communities in surrounding infill adjacent areas.
- Selling, General and Administrative expenses (SG&A) as a percentage of residential units revenue increased by 120 basis points year-over-year to 11.4%, primarily due to payroll and incentive compensation growth.
- Equity income from unconsolidated entities decreased to $2.6 million in Q1 2024, down 38.6% year-over-year, following the sale of the company's interest in Challenger Homes.
- Revenue from new home orders was slightly down year-over-year to $613 million due to the lower ASP.
- Despite strong sales performance, the quarterly absorption rate moderated from record levels in Q1 of 2023.
Ladies and gentlemen, thank you for standing by, and welcome to the Green Brick Partners Inc. First Quarter 2024 earnings call. (Operator Instructions) I will now hand today's call over to Rick Costello, CFO. Please go ahead, sir.
Welcome to Green Brick Partners earnings call for the first quarter ended March 31st, 2024. Following today's remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today's webcast and is also available on the company's website at investors.greenbrickpartners.com.
On the call today is Jim Brickman, Co-Founder and Chief Executive Officer; Jed Dolson, President and Chief Operating Officer; and myself, Rick Costello, Chief Financial Officer. Some of the information discussed on this call is forward-looking, including the Company's financial and operational expectations for 2024 and beyond. In yesterday's press release and SEC filings.
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