The following is a summary of the Green Brick Partners, Inc. (GRBK) Q1 2024 Earnings Call Transcript:
Financial Performance:
Green Brick Partners reported a Q1 2024 diluted earnings per share of $1.82, a record for Q1.
They reported a record home building gross margin of 33.4%, positioning them at the forefront of the home building industry.
The company's book value grew 27% from a year ago, reaching $29.67 per share at the end of Q1 2024.
An attractive return on equity of 25.5% for Q1 was reported on an annualized basis.
They managed to decrease their debt to total capital ratio by 550 basis points to 18.3%, while their net debt to total capital ratio dropped to 8.2% by the end of Q1.
Net income attributable to Green Brick increased significantly by 30% to $83 million, along with a 33% increase in diluted earnings per share to $1.82.
Business Progress:
The company witnessed robust demand across markets and brands, managing to sell 1,071 net new homes in Q1 2024 with a low cancellation rate.
Plans are underway for revenue growth to be driven by demand for infill and infill-adjacent sub-markets.
Significant growth was reported in the community counts, land acquisition, and development portfolios, which positions the business for sustained growth.
Expansion of Trophy homes in Dallas, Austin, and Houston markets is expected to contribute to Green Brick's growth strategy.
Collaboration with Hersh Family Investments has started to develop a new approximately 2,000-lot community in Salina, Texas.
Green Brick is accelerating self-development of land, with 86%-88% of lots owned and self-developed, strengthening their return on assets and equity.
Opportunities for pursuing new communities are being explored with a goal to maintain the gross margin and manage cancellation risks effectively.
More details: Green Brick Partners IR
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