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Dec 31, 2021
Green Brick Q4 2021 Earnings Report
Reported record fourth quarter results driven by significant revenue growth and increased profitability.
Key Takeaways
Green Brick Partners reported record results for the fourth quarter ended December 31, 2021, with a 78% increase in total revenue and a 117.6% increase in income before taxes. The company's growth strategy includes investment in lots owned and controlled, expansion into new markets, and a focus on increasing spec inventory.
Total revenue increased by 78% year-over-year, reflecting a record quarter for closings.
Income before taxes increased by 117.6% compared to the same quarter last year.
The company almost doubled its number of lots owned and controlled during 2021.
Net income return on average equity was 31.9% for the fourth quarter annualized.
Green Brick
Green Brick
Green Brick Revenue by Segment
Revenue by Segment
Residential Units Revenue
CapyFin.comLand and Lots Revenue
CapyFin.com Forward Guidance
Green Brick expects to continue its growth trajectory by capitalizing on market opportunities and managing its operations efficiently, despite facing challenges such as increased costs and supply chain disruptions.
Positive Outlook
- Company believes land position and backlog will position it to grow their business in 2022 and beyond
- Intent to increase the number of spec homes in their portfolio and the impact of that strategy on their ability to capture the most current price increases and to maximize profitability
- Company's strategy for growth, the drivers and acceleration of that growth, and the impact on their results during 2022
- Company's ability to capitalize on market opportunities and the impact on results
- Company presence in high job growth markets coupled with credit worthy buyers who can afford larger homes and bigger mortgages allow the company to continue to raise prices with new releases of lots
Challenges Ahead
- Continuing impacts from the COVID-19 pandemic
- Changes in macroeconomic conditions, including interest rates and unemployment rates, that could adversely impact demand for new homes or the ability of potential buyers to qualify
- Shortages, delays or increased costs of raw materials, especially in light of COVID-19 and increased demand for materials, or increases in other operating costs, including costs related to labor, real estate taxes and insurance, which in each case exceed their ability to increase prices
- A shortage of labor
- An inability to acquire land in their markets at anticipated prices or difficulty in obtaining land-use entitlements
Revenue & Expenses
Visualization of income flow from segment revenue to net income