NYSE$GRBK

Green Brick Partners Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Green Brick reported record results in the second quarter of 2020, marked by substantial growth in EPS, home deliveries, and backlog.

Green Brick Partners reported record second-quarter results, with significant increases in EPS, home deliveries, and backlog. The company's performance was driven by strong sales growth and effective management despite the challenges posed by the COVID-19 pandemic.

  • Achieved record basic EPS of $0.67 per share, a 131.0% increase year-over-year.
  • Experienced a 40.4% increase in home deliveries, setting a new company record.
  • Increased homebuilding gross margin to 23.2%, up 130 basis points.
  • Grew new home orders by 28.5% and backlog to a record $446.6 million, up 34.8%.

Headline financials

Total Revenue

$233M

Previous: $184M+26.9%
EPS (adj)

$0.66

Previous: $0.29+127.6%
Capital Expenditures

-$1.18M

Previous: -$1.14M-3.2%
Free Cash Flow

$32.5M

Previous: $13.3M+143.8%
Net Income

$33.6M

Previous: $14.5M+132.7%
Operating Income

$28.2M

Previous: $18M+56.9%
Gross Profit

$53.9M

Previous: $40.3M+33.8%
Cash & Equivalents

$43.2M

Previous: $34.4M+25.5%
Total Assets

$910M

Previous: $833M+9.3%

Revenue & EPS history

Green Brick · Revenue · Quarterly

$233M

Q2 2020+26.9%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Green Brick · $233M total across 2 segments · Q2 2020

  • Residential Units
    $229M+30.6%
  • Land and Lots
    $4.17M-50.7%

Forward guidance

The company is cautiously optimistic about future success, driven by pro-business markets and the quality of homes offered by its Team Builders. Sales growth was largely made possible by the success of Trophy Signature Homes. The company continues to see growth into Q3.

Tailwinds

  • Continued growth into the third quarter, as evidenced by a 29% increase in net sales in July 2020 compared to July 2019.
  • Initiated moderate product price increases to offset cost input increases like lumber, expecting to maintain industry-leading high margins.
  • Success of Trophy Signature Homes, closing 122 units for $43.5 million in revenues and selling 152 units this quarter.
  • Trophy expects to open 15 new selling communities by the end of 2020, with most openings in the third quarter.
  • Recovery and expansion of sales activity related to low mortgage interest rates, increased home ownership by millennials, and the desire to leave high-density living conditions.

Headwinds

  • The length and extent of the impact of the COVID-19 pandemic on the Company’s financial performance depends on future developments.
  • Sales slowed significantly during the final two weeks of March and through the end of April due to shelter-in-place restrictions.
  • Net sales in April 2020 were down by 43% from April 2019 due to the impact of shelter-in-place restrictions.
  • The COVID-19 pandemic has led to stay-at-home orders and social distancing guidelines that have seriously disrupted activities in large segments of the economy.
  • The impact of the COVID-19 pandemic on global supply chains.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.7%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.9%

Avg return

30 days after

54%

34 / 63 earnings

Positive

+47.8%

Q3 2010

Best reaction

-26.5%

Q1 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.0%-3.5%-16.8%
Q3 2025+2.8%-1.6%+5.4%
Q1 2025+3.1%+1.9%+0.2%
Q4 2024+5.8%+2.4%-0.2%
Q3 2024-8.6%-7.1%-5.3%
Q2 2024-2.5%-7.4%+5.4%
Q1 2024+1.7%+4.2%+0.9%
Q4 2023-4.3%-9.4%+5.5%
Q3 2023+8.4%+17.3%+24.0%
Q2 2023-9.2%-6.8%-10.8%
Q1 2023+24.6%+36.3%+39.2%
Q4 2022+3.7%+9.7%+13.3%
Q3 2022-11.3%-14.0%+4.0%
Q2 2022+13.7%+8.2%-9.0%
Q1 2022+12.0%+6.7%+20.5%
Q4 2021+3.1%-1.8%-14.8%
Q3 2021-6.5%-2.6%+2.4%
Q2 2021-3.9%-0.9%-1.0%
Q1 2021-11.3%-6.4%-17.0%
Q4 2020+0.3%+8.0%+25.6%
Q3 2020+3.0%+13.7%+29.7%
Q2 2020+6.3%+3.2%+5.2%
Q1 2020+2.1%+3.8%+26.3%
Q4 2019-2.3%-9.6%-39.8%
Q3 2019+4.1%+13.5%+16.6%
Q2 2019+5.5%+4.5%+1.7%
Q1 2019+1.6%+2.6%-2.6%
Q4 2018-3.1%-2.8%+1.4%
Q3 2018-2.0%-7.2%-15.7%
Q2 2018+5.9%+11.2%+7.4%
Q1 2018+2.4%+5.7%+14.4%
Q4 2017-0.9%-3.8%+0.9%
Q3 2017-0.5%+2.8%+1.8%
Q2 2017-6.7%-11.1%-18.2%
Q1 2017+0.5%+6.4%+4.7%
Q4 2016+1.6%+4.9%+9.9%
Q3 2016+4.5%+10.3%+25.2%
Q2 2016+3.9%+3.3%+8.8%
Q1 2016-1.1%
Q4 2015+16.2%
Q3 2015-4.2%
Q2 2015+6.2%
Q1 2015+0.5%
Q4 2014+5.0%
Q3 2014+2.8%
Q2 2014+4.3%
Q1 2014-14.3%
Q4 2013-10.8%
Q3 2013+6.2%
Q2 2013-12.0%
Q1 2013-2.7%
Q4 2012-1.4%
Q3 2012-12.3%
Q2 2012-8.4%
Q1 2012-26.5%
Q1 2011-26.5%
Q4 2011+6.9%
Q3 2011+47.8%
Q3 2010+47.8%
Q2 2011-5.3%
Q4 2010-6.0%
Q2 2010-5.9%
Q1 2010-15.4%

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