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Mar 31, 2020
Green Brick Q1 2020 Earnings Report
Reported record first quarter results with record basic EPS and increased homebuilding gross margin.
Key Takeaways
Green Brick Partners reported a strong first quarter with record EPS of $0.32, a 28% increase year-over-year, and a record backlog of $427.3 million, up 38.9% year-over-year. The company also saw a 42.3% increase in net new home orders and a 230 basis point improvement in homebuilding gross margin to 23.1%.
Achieved record EPS of $0.32, a 28.0% increase year-over-year.
Homebuilding gross margin improved by 230 basis points to 23.1%.
Net new home orders increased by 42.3%.
Record backlog reached $427.3 million, a 38.9% increase year-over-year.
Green Brick
Green Brick
Green Brick Revenue by Segment
Revenue by Segment
Residential Units Revenue
CapyFin.comLand and Lots Revenue
CapyFin.com Forward Guidance
The company expects an adverse impact on net new sales to continue in the second quarter and beyond, consequently, closings, and therefore results of operations, for the balance of 2020 will be more impacted than the first quarter. The length and extent of the impact of the COVID-19 pandemic on the Company’s financial performance, including the ability to execute on our future financial results, will depend on future developments, including the duration and spread of the pandemic and related government restrictions, all of which are uncertain and cannot be predicted.
Positive Outlook
- Focused on completing and closing the record amount of sold homes in backlog that are under construction.
- Temporarily limited the construction of unsold, speculative units to the next completion stage of construction.
- Temporarily limited purchases of lots and land and development of land to reflect the lower levels of home sales orders that are anticipated for 2020.
- Limited the number of new communities in which we had planned to open in 2020 based on an evaluation of competition and supply.
- Taken steps to reduce overall headcount and selling, general and administrative expenses to align with anticipated activity in the upcoming quarters at an annualized estimated savings of $10.4 million.
Challenges Ahead
- Anticipates continued year-over-year deterioration in sales.
- Expects an adverse impact on net new sales will continue in the second quarter and beyond.
- Closings, and therefore results of operations, for the balance of 2020 will be more impacted than the first quarter.
- The length and extent of the impact of the COVID-19 pandemic on the Company’s financial performance will depend on future developments.
- The impact of governmental actions taken to combat the pandemic is uncertain and cannot be predicted.