NYSE$GRBK

Green Brick Partners Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record fourth quarter results driven by significant revenue growth and increased profitability.

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.

Headline financials

Total Revenue

$452M

Previous: $254M+78.0%
EPS (adj)

$1.24

Previous: $0.58+113.8%
New Homes Delivered

823

No prior period
Homebuilding Gross Margin

26.2%

No prior period
Capital Expenditures

$243K

Previous: $1.16M-79.1%
Free Cash Flow

$21.9M

Previous: -$30.2M+172.5%
Net Income

$67.1M

Previous: $29.3M+128.9%
Operating Income

$82.6M

No prior period
Gross Profit

$111M

Previous: $63.9M+73.5%
Cash & Equivalents

$78.7M

Previous: $19.5M+304.0%
Total Assets

$1.42B

Previous: $989M+43.8%
Stock-Based Comp

$3.08M

Previous: $2.1M+46.8%

Revenue & EPS history

Green Brick · Revenue · Quarterly

$452M

Q4 2021+78%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Green Brick · $452M total across 2 segments · Q4 2021

  • Residential Units
    $420M
  • Land and Lots
    $32.2M

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.

Tailwinds

  • 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

Headwinds

  • 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

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 Q4 2021

Historical avgQ4 2021

+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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