Q3 2024 Green Brick Partners Inc Earnings Call Transcript
Key Points
- Green Brick Partners Inc (GRBK) achieved its best third quarter in company history with 956 new home closings and a 26% year-over-year increase in home closings revenue to $523 million.
- The company has maintained industry-leading gross margins, with a year-to-date home building gross margin of 33.6%, up 290 basis points from the previous year.
- Green Brick Partners Inc (GRBK) has a strong financial position with a net debt to total capital ratio of 12.5% and a total debt to total capital ratio of 16.4%, with a weighted average interest rate of 3.4%.
- The company has a robust land strategy, owning and controlling over 37,000 lots, which positions it well for future growth and provides a five-year lot supply for its builders.
- Green Brick Partners Inc (GRBK) reported a 23.5% increase in net income to $89 million and a 26.9% increase in earnings per share to $1.98, setting a record for any third quarter in its history.
- The average selling price (ASP) for new home orders decreased by 9.8% year over year to $518,000, due to a shift in community mix and a higher percentage of sales from the lower ASP Trophy brand.
- Home building gross margins decreased by 60 basis points year over year to 32.7% in the third quarter, partly due to increased incentives and discounts.
- The backlog value at the end of the third quarter decreased by 6.5% year over year to $582 million.
- The company faces challenges in the current economic environment, with limited demand due to buyer psychology and affordability concerns.
- Green Brick Partners Inc (GRBK) anticipates potential borrowing on its lines of credit due to significant land acquisition and development spending, which may impact its cash flow.
Hello, everyone. My name is Jessica, and I will be your conference operator today. At this time. I would like to welcome everyone to the Green Brick Partners Inc third quarter, '24 earnings call. (Operator instructions) Thank you.
I would now like to turn the call over to Richard Costello, Chief Financial Officer. Please go ahead.
Good afternoon and welcome to Green Partners earnings call for the third quarter ended September 30, 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
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