Enterprising Investor
7 years ago
Green Brick Partners, Inc. Reports Strong Third Quarter 2017 Results (11/06/17)
Third Quarter Basic EPS of $0.19 and Basic Adjusted EPS of $0.29, up 46.2% and 45.0%; Third Quarter Pre-Tax Income of $14.6 million, up 48.1%; Third Quarter Revenue of $113.7 million, up 24.0%; Backlog of $164.6 million, up 18.7%
PLANO, TX--(Marketwired - November 06, 2017) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its third quarter ended September 30, 2017.
Results for the Third Quarter Ended September 30, 2017:
•Basic net income attributable to Green Brick per common share ("EPS") for the three months ended September 30, 2017 was $0.19, an increase of 46.2%, compared to $0.13 for the three months ended September 30, 2016. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended September 30, 2017 was $0.29, an increase of 45.0%, compared to $0.20 for the three months ended September 30, 2016. See "Reconciliation of Non-GAAP Financial Measures."
•For the three months ended September 30, 2017, the Company had: pre-tax income of $14.6 million, an increase of 48.1%, compared to $9.9 million for the three months ended September 30, 2016; gross profit of $25.4 million, an increase of 23.1%, compared to $20.6 million for the three months ended September 30, 2016; and revenue of $113.7 million, an increase of 24.0%, compared to $91.7 million for three months ended September 30, 2016.
•Builder operations revenue for the three months ended September 30, 2017 was $108.4 million, an increase of 23.5%, compared to $87.8 million for the three months ended September 30, 2016. Land development revenue for the three months ended September 30, 2017 was $5.3 million, an increase of 37.1%, compared to $3.8 million for the three months ended September 30, 2016.
•The dollar value of backlog units as of September 30, 2017 was $164.6 million, an increase of 18.7% compared to September 30, 2016. The average sales price of homes in backlog increased $48,249, or 11.0%, to $488,522 for the three months ended September 30, 2017, compared to $440,273 for the three months ended September 30, 2016.
•Homes under construction increased 7.5% to 715 as of September 30, 2017, compared to 665 as of September 30, 2016.
Results for the Nine Months Ended September 30, 2017:
•Basic EPS for the nine months ended September 30, 2017 was $0.47, an increase of 42.4%, compared to $0.33 for the nine months ended September 30, 2016. Basic Adjusted EPS for the nine months ended September 30, 2017 was $0.74, an increase of 42.3%, compared to $0.52 for the nine months ended September 30, 2016. See "Reconciliation of Non-GAAP Financial Measures."
•For the nine months ended September 30, 2017, the Company had: pre-tax income of $36.7 million, an increase of 44.9%, compared to $25.3 million for the nine months ended September 30, 2016; gross profit of $69.6 million, an increase of 21.8%, compared to $57.2 million for the nine months ended September 30, 2016; and revenue of $318.0 million, an increase of 22.0%, compared to $260.6 million for nine months ended September 30, 2016.
•Builder operations revenue for the nine months ended September 30, 2017 was $302.2 million, an increase of 21.8%, compared to $248.2 million for the nine months ended September 30, 2016. Land development revenue for the nine months ended September 30, 2017 was $15.8 million, an increase of 27.8%, compared to $12.4 million for the nine months ended September 30, 2016.
"I am pleased to report that in the third quarter we achieved record quarterly pre-tax income of $14.6 million, an increase over third quarter 2016 of 48%. This was achieved on revenue of $113.7 million, which is an increase of 24% over third quarter 2016," said James R. Brickman, Green Brick's Chief Executive Officer. "Despite the significant increase in closings, our backlog grew 19% over third quarter 2016 to $164.6 million. We believe that this momentum will continue due to our superior lot position, strong balance sheet, teamwork and focus on operational excellence"
Earnings Conference Call:
We will host our earnings conference call to discuss our third quarter ended September 30, 2017 at 12:00 p.m. Eastern Time on Tuesday, November 7, 2017. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 97853432. A replay of the call will be available from approximately 3:30 p.m. Eastern Time on November 7, 2017 through 11:59 p.m. Eastern Time on November 14, 2017. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 97853432.
Investment in Unconsolidated Entity:
On August 15, 2017, the Company entered the Colorado market with the acquisition of a 49.9% interest in GB Challenger, LLC, a newly formed Texas limited liability company (the "Challenger Subsidiary"), which holds all of the equity interests in certain homebuilders operating under the name Challenger Homes. The consideration for the acquisition was 1,497,000 unregistered shares of the Company's common stock, par value $0.01 per share, subject to a holdback of 20,000 shares. The Company acquired a noncontrolling interest in Challenger Homes, one of Colorado's leading private homebuilders, and now our sixth builder partner, in order to expand its business with partners that are complementary to its current builder partner group and to gain a presence in the Colorado Springs market. Challenger Homes constructs townhouses, single family homes and luxury patio homes, and is headquartered in Colorado Springs, Colorado. The Company may have the opportunity to acquire an additional 20.1% or, in certain circumstances, all of the remaining interest in the Challenger Subsidiary on or after August 15, 2020. The Company incurred $0.2 million in related acquisition costs. The Company's investment in the Challenger Subsidiary is treated as an unconsolidated investment under the equity method of accounting, carried at cost, and is included in investment in unconsolidated entity in the Company's consolidated balance sheets.
Change in Classification:
Certain indirect project costs previously classified as salary expense and selling, general and administrative expense have been classified as cost of residential units for the three and nine months ended September 30, 2016 to properly present cost of residential units, salary expense, and selling, general and administrative expense.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-strong-third-quarter-2017-results-nasdaq-grbk-2239625.htm
Enterprising Investor
7 years ago
Green Brick Partners, Inc. Reports Strong Second Quarter 2017 Results (8/07/17)
Second Quarter Basic EPS of $0.16 and Basic Adjusted EPS of $0.25, up 14.3% and 13.6%; Second Quarter Pre-Tax Income of $12.0 million, up 9.9%; Second Quarter Revenue of $105.0 million, up 6.1%; Backlog of $165.2 million, up 17.7%
PLANO, TX--(Marketwired - August 07, 2017) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its second quarter ended June 30, 2017.
Results for the Second Quarter Ended June 30, 2017:
Basic net income attributable to Green Brick per common share ("EPS") for the three months ended June 30, 2017 was $0.16, an increase of 14.3%, compared to $0.14 for the three months ended June 30, 2016. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended June 30, 2017 was $0.25, an increase of 13.6%, compared to $0.22 for the three months ended June 30, 2016. See "Reconciliation of Non-GAAP Financial Measures."
For the three months ended June 30, 2017, the Company had: pre-tax income of $12.0 million, an increase of 9.9%, compared to $11.0 million for the three months ended June 30, 2016; gross profit of $22.9 million, an increase of 3.7%, compared to $22.1 million for the three months ended June 30, 2016; and revenue of $105.0 million, an increase of 6.1%, compared to $98.9 million for three months ended June 30, 2016.
Builder operations revenue for the three months ended June 30, 2017 was $100.3 million, an increase of 7.1%, compared to $93.7 million for the three months ended June 30, 2016. Land development revenue for the three months ended June 30, 2017 was $4.6 million, a decrease of 11.5%, compared to $5.2 million for the three months ended June 30, 2016.
The dollar value of backlog units as of June 30, 2017 was $165.2 million, an increase of 17.7% compared to June 30, 2016. The average sales price of homes in backlog increased $41,812, or 9.1%, to $498,955 for the three months ended June 30, 2017, compared to $457,143 for the three months ended June 30, 2016.
Homes under construction increased 8.2% to 714 as of June 30, 2017, compared to 660 as of June 30, 2016.
Results for the Six Months Ended June 30, 2017:
Basic EPS for the six months ended June 30, 2017 was $0.28, an increase of 40.0%, compared to $0.20 for the six months ended June 30, 2016. Basic Adjusted EPS for the six months ended June 30, 2017 was $0.45, an increase of 40.6%, compared to $0.32 for the six months ended June 30, 2016. See "Reconciliation of Non-GAAP Financial Measures."
For the six months ended June 30, 2017, the Company had: pre-tax income of $22.1 million, an increase of 42.8%, compared to $15.5 million for the six months ended June 30, 2016; gross profit of $44.2 million, an increase of 21.0%, compared to $36.5 million for the six months ended June 30, 2016; and revenue of $204.3 million, an increase of 21.0%, compared to $168.9 million for six months ended June 30, 2016.
Builder operations revenue for the six months ended June 30, 2017 was $193.7 million, an increase of 20.8%, compared to $160.4 million for the six months ended June 30, 2016. Land development revenue for the six months ended June 30, 2017 was $10.5 million, an increase of 23.6%, compared to $8.5 million for the six months ended June 30, 2016.
"We had a great second quarter where backlog increased almost 18% from 2016 and more importantly net new home orders increased 13%," said James R. Brickman, Green Brick's Chief Executive Officer. "We currently own or control just under 5,400 home sites, up over 900 lots, from 2016. Our adjusted homebuilding gross margin of 22.4% was among the highest in the industry."
Earnings Conference Call:
We will host our earnings conference call to discuss our second quarter ended June 30, 2017 at 12:00 p.m. Eastern Time on Tuesday, August 8, 2017. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants.
Participants should reference conference ID code 58946666. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on August 8, 2017 through 11:59 p.m. Eastern Time on August 15, 2017. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 58946666.
Change in Classification:
Certain indirect project costs previously classified as salary expense and selling, general and administrative expense have been classified as cost of residential units for the three and six months ended June 30, 2016 to properly present cost of residential units, salary expense, and selling, general and administrative expense.
[tables deleted]
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-strong-second-quarter-2017-results-nasdaq-grbk-2229204.htm
Enterprising Investor
8 years ago
Green Brick Partners, Inc. Reports Strong First Quarter 2017 Results (5/08/17)
First Quarter Basic EPS of $0.13 and Basic Adjusted EPS of $0.21, up 116.7% and 133.3%; First Quarter Pre-Tax Income of $10.1 million, up 122.5%; First Quarter Revenue of $99.3 million, up 42.0%; Backlog of $145.2 million, up 12.4%
PLANO, TX--(Marketwired - May 08, 2017) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its first quarter ended March 31, 2017.
Results for the First Quarter Ended March 31, 2017:
Basic net income attributable to Green Brick per common share ("EPS") for the three months ended March 31, 2017 was $0.13, an increase of 116.7%, compared to $0.06 for the three months ended March 31, 2016. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended March 31, 2017 was $0.21, an increase of 133.3%, compared to $0.09 for the three months ended March 31, 2016. See "Reconciliation of Non-GAAP Financial Measures."
For the three months ended March 31, 2017, the Company had: pre-tax income of $10.1 million, an increase of 122.5%, compared to $4.5 million for the three months ended March 31, 2016; gross profit of $21.3 million, an increase of 47.7%, compared to $14.4 million for the three months ended March 31, 2016; and revenue of $99.3 million, an increase of 42.0%, compared to $70.0 million for three months ended March 31, 2016.
Builder operations revenue for the three months ended March 31, 2017 was $93.4 million, an increase of 40.2%, compared to $66.6 million for the three months ended March 31, 2016. Land development revenue for the three months ended March 31, 2017 was $5.9 million, an increase of 78.4%, compared to $3.3 million for the three months ended March 31, 2016.
The dollar value of backlog units as of March 31, 2017 was $145.2 million, an increase of 12.4% compared to March 31, 2016. The average sales price of homes in backlog increased $25,735, or 5.6%, to $487,128 for the three months ended March 31, 2017, compared to $461,393 for the three months ended March 31, 2016.
Homes under construction increased 15.5% to 625 as of March 31, 2017, compared to 541 as of March 31, 2016.
"We had a great first quarter with Q1 pretax income of $10.1 million which was up 123% from 2016," said James R. Brickman, Green Brick's Chief Executive Officer. "I am extremely proud of our team's hard work and operational progress. On March 25th, Green Brick Partners was named Developer of the Year by the Dallas Homebuilders Association and our builders won numerous awards for best single family home and townhome designs. We believe that our superior neighborhoods and home designs will continue to translate into high profit margins and superior results for our investors."
Earnings Conference Call:
We will host our earnings conference call to discuss our first quarter ended March 31, 2017 at 12:00 p.m. Eastern Time on Tuesday, May 9, 2017. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 11704453. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on May 9, 2017 through 11:59 p.m. Eastern Time on May 16, 2017. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 11704453.
Change in Classification:
Certain indirect project costs previously classified as salary expense and selling, general and administrative expense have been classified as cost of residential units for the three months ended March 31, 2016 to properly present cost of residential units, salary expense, and selling, general and administrative expense.
Reconciliation of Non-GAAP Financial Measures:
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
[tables deleted]
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-strong-first-quarter-2017-results-nasdaq-grbk-2214787.htm
Enterprising Investor
8 years ago
Green Brick Partners, Inc. Reports Fourth Quarter and Full Year 2016 Results (3/13/17)
Fourth Quarter Basic EPS of $0.16 and Basic Adjusted EPS of $0.28, up 60.0% and 75.0%, respectively; Fourth Quarter Pre-Tax Income of $13.7 million, up 79.8%; Fourth Quarter Revenue of $119.8 million, up 40.1%; Backlog of $108.0 million, up 22.6%
PLANO, TX--(Marketwired - March 13, 2017) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its fourth quarter and full year ended December 31, 2016.
Results for the Fourth Quarter Ended December 31, 2016:
Basic net income attributable to Green Brick per common share ("EPS") for the three months ended December 31, 2016 was $0.16, compared to $0.10 for the three months ended December 31, 2015. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended December 31, 2016 was $0.28, compared to $0.16 for the three months ended December 31, 2015. See "Reconciliation of Non-GAAP Financial Measures."
For the three months ended December 31, 2016, the Company had: pre-tax income of $13.7 million, an increase of 79.8%, compared to $7.6 million for the three months ended December 31, 2015; gross profit of $29.2 million, an increase of 72.7%, compared to $16.9 million for the three months ended December 31, 2015; and total revenue of $119.8 million, an increase of 40.1%, compared to $85.5 million for the three months ended December 31, 2015.
Builder operations revenue for the three months ended December 31, 2016 was $117.0 million, an increase of 55.8%, compared to $75.1 million for the three months ended December 31, 2015. Land development revenue for the three months ended December 31, 2016 was $2.8 million compared to $10.4 million for the three months ended December 31, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the home closes.
The dollar value of backlog units as of December 31, 2016 was $108.0 million, an increase of 22.6% compared to December 31, 2015. The average sales price of homes in backlog increased approximately $17,335, or 4.0%, to $455,823 for the year ended December 31, 2016, compared to $438,488 for the year ended December 31, 2015.
Homes under construction increased 11.2% to 564 as of December 31, 2016, compared to 507 as of December 31, 2015.
Results for the Year Ended December 31, 2016:
Basic EPS for the year ended December 31, 2016 was $0.49, compared to $0.38 for the year ended December 31, 2015. Basic Adjusted EPS for the year ended December 31, 2016 was $0.80, compared to $0.50 for the year ended December 31, 2015. See "Reconciliation of Non-GAAP Financial Measures."
For the year ended December 31, 2016, the Company had: pre-tax income of $39.0 million, an increase of 60.0%, compared to $24.4 million for the year ended December 31, 2015; gross profit of $86.4 million, an increase of 38.8%, compared to $62.3 million for the year ended December 31, 2015; and total revenue of $380.3 million, an increase of 30.6%, compared to $291.1 million for the year ended December 31, 2015.
Builder operations revenue for the year ended December 31, 2016 was $365.2 million, an increase of 43.6%, compared to $254.3 million for the year ended December 31, 2015. Land development revenue for the year ended December 31, 2016 was $15.2 million compared to $36.9 million for the year ended December 31, 2015. The decrease in land development revenue is due primarily to an increase in lot sales to Green Brick's builders where revenue is not recognized until the home closes.
"Our superior land and lot positions combined with a significant improvement in our operations resulted in pre-tax earnings for the fourth quarter of $13.7 million, up 80% over 2015," said James R. Brickman, Green Brick's Chief Executive Officer. "Pre-tax earnings for the year of $39.0 million was up 60% over 2015 and backlog was up 23% compared to December 31, 2015. Yet again, we are 100% engaged to continue to improve our results in 2017."
Earnings Conference Call:
We will host our earnings conference call to discuss our fourth quarter and the year ended December 31, 2016 at 12:00 p.m. Eastern Time on Tuesday, March 14, 2017. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 63683047. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on March 14, 2017 through 11:59 p.m. Eastern Time on March 21, 2017. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 63683047.
Increase in Lines of Credit:
On March 6, 2017, Flagstar Bank, FSB increased its commitment under the Unsecured Revolving Credit Facility (as defined in our Form 10-K) from $20.0 million to $35.0 million, which increased the aggregate lending commitments available under the Revolving Credit Facility from $70.0 million to $85.0 million.
Change in Classification:
Certain indirect project costs previously classified as salary expense and selling, general and administrative expense have been classified as cost of residential units for the year ended December 31, 2015 to properly present cost of residential units, salary expense, and selling, general and administrative expense.
Reconciliation of Non-GAAP Financial Measures:
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
On July 1, 2015, the Company completed an underwritten public offering of 17,000,000 shares of its common stock at a price to the public of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the "Equity Offering"). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. Due to the effects of the Equity Offering, the weighted average shares outstanding for the three months ended December 31, 2015 is indicative of the Company's future weighted average shares outstanding, however the weighted average shares outstanding for the year ended December 31, 2015 is not and therefore we believe adjusted EPS is a more meaningful measure to our investors.
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-fourth-quarter-and-full-year-2016-results-nasdaq-grbk-2202569.htm
Enterprising Investor
8 years ago
Green Brick Partners entered into amendment to credit agreement (12/01/16)
On December 1, 2016, Green Brick Partners, Inc., a Delaware corporation (the “ Company ”), as borrower, entered into Amendment No. 2 to the Credit Agreement (the “ Amendment No. 2 ”), with the lenders named therein, and Citibank, N.A., as agent, which further amends the Credit Agreement, dated December 15, 2015 (as amended by the First Amendment to the Credit Agreement, dated September 1, 2016, the “ Credit Agreement ”), between the Company, the lenders named therein, and Citibank, N.A., as administrative agent. Among other things, Amendment No. 2 extends the termination date with respect to commitments under the senior, unsecured revolving credit facility (the “ Revolving Credit Facility ”) from December 14, 2018 to December 14, 2019. This extension will become effective upon the payment of an upfront fee of 0.15% of the aggregate amount of any extended commitments on December 15, 2016. Additionally, Citibank, N.A. has agreed to increase its commitment under the Revolving Credit Facility from $25.0 million to $35.0 million, effective on December 15, 2016, which will increase the aggregate lending commitments available under the Revolving Credit Facility from $60.0 million to $70.0 million.
https://www.sec.gov/Archives/edgar/data/1373670/000162612916000988/grbk-8k_120116.htm
Enterprising Investor
8 years ago
Green Brick Partners, Inc. Reports Third Quarter 2016 Results (11/07/16)
Third Quarter Basic EPS of $0.13 and Basic Adjusted EPS of $0.20, up 116.7% and 100.0%; Third Quarter Pre-Tax Income of $9.9 million, up 111.8%; Third Quarter Revenue of $91.7 million, up 21.9%; Backlog of $138.7 million, up 41.1%
PLANO, TX--(Marketwired - November 07, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its third quarter ended September 30, 2016.
Results for the Third Quarter Ended September 30, 2016:
•Basic net income attributable to Green Brick per common share ("EPS") for the three months ended September 30, 2016 was $0.13, an increase of 116.7%, compared to $0.06 for the three months ended September 30, 2015. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended September 30, 2016 was $0.20, an increase of 100.0%, compared to $0.10 for the three months ended September 30, 2015. See "Reconciliation of Non-GAAP Financial Measures."
•For the three months ended September 30, 2016, the Company had: pre-tax income of $9.9 million, an increase of 111.8%, compared to $4.7 million for the three months ended September 30, 2015; gross profit of $22.3 million, an increase of 41.6%, compared to $15.7 million for the three months ended September 30, 2015; and revenue of $91.7 million, an increase of 21.9%, compared to $75.2 million for three months ended September 30, 2015.
•Builder operations revenue for the three months ended September 30, 2016 was $87.8 million, an increase of 27.0%, compared to $69.2 million for the three months ended September 30, 2015. Land development revenue for the three months ended September 30, 2016 was $3.8 million compared to $6.0 million for the three months ended September 30, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
•The dollar value of backlog units as of September 30, 2016 was $138.7 million, an increase of 41.1% compared to September 30, 2015. The average sales price of homes in backlog increased $22,116, or 5.3%, to $440,273 for the three months ended September 30, 2016, compared to $418,157 for the three months ended September 30, 2015.
•Homes under construction increased 22.5% to 665 as of September 30, 2016, compared to 543 as of September 30, 2015.
Results for the Nine Months Ended September 30, 2016:
•Basic EPS for the nine months ended September 30, 2016 was $0.33, an increase of 13.8%, compared to $0.29 for the nine months ended September 30, 2015. Basic Adjusted EPS for the nine months ended September 30, 2016 was $0.52, an increase of 52.9%, compared to $0.34 for the nine months ended September 30, 2015. See "Reconciliation of Non-GAAP Financial Measures."
•For the nine months ended September 30, 2016, the Company had: pre-tax income of $25.3 million, an increase of 51.1%, compared to $16.8 million for the nine months ended September 30, 2015; gross profit of $61.5 million, an increase of 25.2%, compared to $49.1 million for the nine months ended September 30, 2015; and revenue of $260.6 million, an increase of 26.7%, compared to $205.6 million for nine months ended September 30, 2015.
•Builder operations revenue for the nine months ended September 30, 2016 was $248.2 million, an increase of 38.5%, compared to $179.2 million for the nine months ended September 30, 2015. Land development revenue for the nine months ended September 30, 2016 was $12.4 million compared to $26.4 million for the nine months ended September 30, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
"I am very pleased with our strong third quarter, with $9.9 million in pre-tax income, a robust backlog and significant year-to-date increases in housing revenue and other metrics," said James R. Brickman, Green Brick's Chief Executive Officer. "Especially encouraging has been the improvement to our homebuilding gross margin percentage. Many of our peers have experienced declining margins, but because of our superior lot position, strong markets and unique structure, our adjusted gross margin percentage rose to 24.5% in the third quarter of 2016."
Earnings Conference Call:
We will host our earnings conference call to discuss our third quarter ended September 30, 2016 at 12:00 p.m. Eastern Time on Tuesday, November 8, 2016. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 2626394. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on November 8, 2016 through 11:59 p.m. Eastern Time on November 15, 2016. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 2626394.
Reclassifications:
Depreciation of model home furnishings for the three and nine months ended September 30, 2015 has been reclassified from depreciation and amortization expense in the consolidated statements of income to cost of residential units to conform to the current year presentation.
Reconciliation of Non-GAAP Financial Measures:
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
On July 1, 2015, the Company completed an underwritten public offering of 17,000,000 shares of its common stock at a price to the public of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the "Equity Offering"). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. Due to the effects of the Equity Offering, the weighted average shares outstanding for the three months ended September 30, 2015 is indicative of the Company's future weighted average shares outstanding, however the weighted average shares outstanding for the nine months ended September 30, 2015 is not.
[tables deleted]
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/update-green-brick-partners-inc-reports-third-quarter-2016-results-2173492.htm
Enterprising Investor
8 years ago
NAR Identifies Top 10 Markets in Dire Need of More Single-family Housing Starts (9/19/16)
WASHINGTON, Sept. 19, 2016 /PRNewswire/ -- Single-family home construction is currently lacking in 80 percent of measured metro areas despite steady job creation and the low activity is creating a housing shortage crisis that is curtailing affordability and threatening to hold back prospective buyers in many of the largest cities in the country, according to new research from the National Association of Realtors®.
NAR's study reviewed new home construction relative to job gains over a three-year period (2013-2015) in 171 metropolitan statistical areas1 (MSAs) throughout the U.S. to determine the markets with the greatest shortage of single-family housing starts. The findings reveal that single-family construction is startlingly underperforming in most of the U.S., with markets in the West making up half of the top ten areas with the largest deficit of newly built homes.
Lawrence Yun, NAR chief economist, says a large swath of the country continues to be plagued by inventory shortages exasperated by critically low homebuilding activity. "Inadequate single-family home construction since the Great Recession has had a detrimental impact on the housing market by accelerating price growth and making it very difficult for prospective buyers to find an affordable home – especially young adults," he said. "Without the expected pick-up in building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded despite mortgage rates at or near historic lows."
NAR analyzed employment growth in relation to single-family housing starts in the three-year period from 2012 through 2015. Historically, the average ratio for the annual change in total jobs to permits is 1.6 for single-family homes. The research found that 80 percent of measured markets had a ratio above 1.6, which indicates inadequate new construction in most of the country. The average ratio for areas examined was 3.4.
Using each metro area's jobs-to-permits ratio, NAR then calculated the amount of permits needed in each metro area to balance the ratio back to its historical average of 1.6. The higher the number of permits required, the more severe the shortage was in each market.
The top 10 metro areas with the biggest need for more single-family housing starts to get back to the historical average ratio are:
New York (218,541 permits required)
Dallas (132,482 permits required)
San Francisco (127,412 permits required)
Miami (118,937 permits required)
Chicago (94,457 permits required)
Atlanta (93,627 permits required)
Seattle (73,135 permits required)
San Jose, California (69,042 permits required)
Denver (67,403 permits required)
San Diego (55,825 permits required)
According to Yun, most of the metro areas with the biggest need for increased construction have strong appetites for buying, home-price growth that outpaces incomes and common instances where homes sell very quickly. Their healthy job markets continue to attract an influx of potential homeowners, only fueling the need for more housing.
"Although a few small cities with high ratios did not make the national rank for absolute permit shortages, their supply shortages are still meaningful at the local level and could become a bigger issue if job gains hold steady and the current pace of construction remains at its nearly non-existent level," adds Yun.
Single-family housing starts are seen as adequate to local job growth (at a ratio of 1.6) in Pensacola, Florida; Huntsville, Alabama; Columbia, South Carolina; and Virginia Beach, Virginia.
"The limited number of listings in several markets means that many available homes are receiving multiple offers and going under contract rather quickly," says NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "It's important in this situation to remain patient and not get caught up offering more than your budget allows. Find a Realtor® with experience serving clients in your desired area and rely on them to deploy a negotiation strategy that ensures success while sticking within budget."
Looking ahead, Yun says the good news is that the ratio in many areas slightly moved downward in 2015 compared to 2014 as builders started to respond accordingly to local supply shortages. However, it'll likely be multiple years before inventory rebounds in many of the markets because homebuilders continue to face a plethora of hurdles, including permit delays, higher construction, regulatory and labor costs, difficulty finding skilled workers and the exhausting process many smaller builders go through to obtain financing.
"Recent NAR survey data show an overwhelming consumer preference towards single-family homes, including among millennials, who are increasingly buying them in suburban areas," concludes Yun. "A mix of new starter-homes for first-time buyers and larger homes for families looking to trade up is needed at this moment to ensure homeownership opportunities remain in reach to qualified prospective buyers at all ages and income levels."
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.1 million members involved in all aspects of the residential and commercial real estate industries.
1Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in MSA definitions is available at: http://www.census.gov/population/estimates/metro-city/List4.txt.
http://www.prnewswire.com/news-releases/nar-identifies-top-10-markets-in-dire-need-of-more-single-family-housing-starts-300330154.html
Enterprising Investor
8 years ago
Dallas area needs more than 132,000 additional home starts, Realtors' report finds (9/19/16)
Almost every sector of the Dallas real estate market has rebounded to pre-recession levels — some properties even more.
But homebuilding is not close to the volumes seen before the economic crash.
Home starts in the Dallas-area are about 40 percent less than they were in 2005.
And shortages of labor and rising construction costs have limited builders.
The Dallas area has one of the largest shortages of new single-family homes on any market in the country, according to a new study by the National Association of Realtors.
Builders would have to start more than 132,000 additional houses to make up for the lack of supply, Realtor researchers say.
Only New York City — with a 218,541 home start deficit — has a bigger shortfall of housing construction among major U.S. markets.
"Inadequate single-family home construction since the Great Recession has had a detrimental impact on the housing market by accelerating price growth and making it very difficult for prospective buyers to find an affordable home — especially young adults," Realtors' chief economist Lawrence Yun said in the study. "Without the expected pickup in building as job gains rose in recent years, new and existing inventory has shrunk, prices have shot up and affordability has eroded despite mortgage rates at or near historic lows."
The Realtors' analysts looked at housing construction and demand for major U.S. markets in 2012-2015. NAR then estimated the amount of home construction needed in each metro area to get back to each market's historical average.
New home construction in North Texas peaked in 2005 with almost 50,0000 starts. At the worst of the recession, housing starts fell to 13,625 in 2009.
Even with strong demand for homes in the area and record prices, home starts are expected to reach only about 30,000 in 2016.
Local analysts say that it's doubtful that single-family home building activity will return to the levels seen here 10 years ago because of multiple factors limiting construction.
"Clearly we have a shortage of housing here," said Ted Wilson with Dallas-based housing analyst Residential Strategies. "The construction capacity issues are limiting what the builders can produce."
Wilson said typically there is demand for a new single-family home for every two new jobs created in a market.
"Over the last five years here in D-FW we've created about 518,000 new jobs," he said. "Looking at that the math would suggest about 258,000 housing units would have been needed.
"Over that 5-year period we've constructed almost 115,000."
Along with New York and Dallas, other major U.S. metro areas with a severe shortage of new home starts include San Francisco (127,412 permits required), Miami (118,937 permits required), Chicago (94,457 permits required) and Atlanta (93,627 permits required), according to the Realtors.
http://www.dallasnews.com/business/headlines/20160919-dallas-area-needs-more-than-132000-additional-home-starts-realtors-report-finds.ece
Enterprising Investor
8 years ago
Green Brick Partners Announces Additional Lender and Expansion of Credit Facility (9/01/16)
PLANO, TX--(Marketwired - September 01, 2016) - Plano-based Green Brick Partners, Inc. (NASDAQ: GRBK) (the "Company") announces that Flagstar Bank has agreed to join its line of credit facility with a $20 million funding commitment. Citibank, N.A. serves as administrative agent for the revolving credit facility and also participates as a lender.
This addition of Flagstar Bank increases the aggregate commitment on the line of credit to $60 million. The facility is unsecured with a rate tied to 30-day LIBOR, which yields a current pay rate of approximately 3%.
Further, the Company announces that it has received approvals from Citibank and Credit Suisse, both lenders to the credit facility, to expand the maximum amount of the credit facility. The accordion feature of the facility allows Green Brick Partners to expand the line of credit from its current maximum size of $75 million to the new approved limit of $110 million. With this agreement, the Company can obtain commitments for another $50 million, as needed, that would bring the aggregate lender commitments to $110 million.
Green Brick Partners is filing an 8-K with the U.S. Securities and Exchange Commission with further information about this agreement.
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-announces-additional-lender-and-expansion-of-credit-facility-2155141.htm
Enterprising Investor
8 years ago
Green Brick Partners, Inc. Reports Second Quarter 2016 Results (8/08/16)
Second Quarter Basic EPS of $0.14 and Basic Adjusted EPS of $0.22, up 16.7% and 83.3%; Second Quarter Pre-Tax Income of $11.0 Million, up 85.2%; Second Quarter Revenue of $98.9 Million, up 37.4%; Backlog of $140.3 Million, up 37.1%
PLANO, TX--(Marketwired - August 08, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its second quarter ended June 30, 2016.
Results for the Second Quarter Ended June 30, 2016:
•Basic net income attributable to Green Brick per common share ("EPS") for the three months ended June 30, 2016 was $0.14, as compared to $0.12 for the three months ended June 30, 2015. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended June 30, 2016 was $0.22, as compared to $0.12 for the three months ended June 30, 2015. See "Reconciliation of Non-GAAP Financial Measures."
•For the three months ended June 30, 2016, the Company had: pre-tax income of $11.0 million, an increase of 85.2%, compared to $5.9 million for the three months ended June 30, 2015; gross profit of $23.6 million, an increase of 37.1%, compared to $17.2 million for the three months ended June 30, 2015; and revenue of $98.9 million, an increase of 37.4%, compared to $72.0 million for three months ended June 30, 2015.
•Builder operations revenue for the three months ended June 30, 2016 was $93.7 million, an increase of 55.3%, compared to $60.4 million for the three months ended June 30, 2015. Land development revenue for the three months ended June 30, 2016 was $5.2 million compared to $11.6 million for the three months ended June 30, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
•The dollar value of backlog units as of June 30, 2016 was $140.3 million, an increase of 37.1% compared to June 30, 2015. The average sales price of homes in backlog increased $45,894, or 11.2%, to $457,143 for the three months ended June 30, 2016, compared to $411,249 for the three months ended June 30, 2015.
•Homes under construction increased 26.4% to 660 as of June 30, 2016, compared to 522 as of June 30, 2015.
Results for the Six Months Ended June 30, 2016:
•Basic EPS for the six months ended June 30, 2016 was $0.20, as compared to $0.25 for the six months ended June 30, 2015. Basic Adjusted EPS for the six months ended June 30, 2016 was $0.32, as compared to $0.25 for the six months ended June 30, 2015. See "Reconciliation of Non-GAAP Financial Measures."
•For the six months ended June 30, 2016, the Company had: pre-tax income of $15.5 million, an increase of 27.7%, compared to $12.1 million for the six months ended June 30, 2015; gross profit of $39.3 million, an increase of 17.5%, compared to $33.4 million for the six months ended June 30, 2015; and revenue of $168.9 million, an increase of 29.5%, compared to $130.4 million for six months ended June 30, 2015.
•Builder operations revenue for the six months ended June 30, 2016 was $160.4 million, an increase of 45.7%, compared to $110.0 million for the six months ended June 30, 2015. Land development revenue for the six months ended June 30, 2016 was $8.5 million compared to $20.4 million for the six months ended June 30, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
"Our strong $99 million revenue and 85% increase in pre-tax earnings in the second quarter were the result of Green Brick's and our builders' dedication, hard work and superior long term lot positions. Despite our record closings, our backlog still rose 9% from Q1 2016 and 37% from Q2 2015. Our financial results should continue to improve over the long term. Thank you for your support."
Earnings Conference Call:
We will host our earnings conference call to discuss our second quarter ended June 30, 2016 at 12:00 p.m. Eastern Time on Tuesday, August 9, 2016. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 53484482. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on August 9, 2016 through 11:59 p.m. Eastern Time on August 16, 2016. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 53484482.
Reclassifications:
Depreciation of model home furnishings for the three and six months ended June 30, 2015 has been reclassified from depreciation and amortization expense, which is included in other income, net in the consolidated statements of income to cost of residential units to conform to the current year presentation.
Reconciliation of Non-GAAP Financial Measures:
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
On July 1, 2015, the Company completed an underwritten public offering of 17,000,000 shares of its common stock at a price to the public of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the "Equity Offering"). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. Due to the effects of the Equity Offering, the weighted average shares outstanding for the three and six months ended June 30, 2015 is not indicative of the Company's future weighted average shares outstanding.
[tables deleted]
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-second-quarter-2016-results-nasdaq-grbk-2148836.htm
Enterprising Investor
9 years ago
The next Uptown? Ross Avenue gets a remake on downtown Dallas’ near east side (5/12/16)
By Steve Brown
Thousands of commuters streaming into downtown Dallas are noticing big changes on Ross Avenue.
The busy thoroughfare on downtown’s near east side is getting a major makeover with hundreds of new apartments, townhouses, shops and restaurants.
It’s quite a turnabout for a streetscape that for decades was dominated by used car lots, second-hand stores and dodgy dives.
“I say the Ross corridor is Uptown lite,” said real estate broker Mike Turner. “It’s the gateway to the Arts District and seeing big changes.”
Even more change could be on the way.
The potential sale of the Dallas Independent School District’s almost 10-acre property at Ross and Washington Avenue could create the largest redevelopment the neighborhood has seen in decades.
Developers are lining up with interest in the school district’s three corners, which are expected to be up for grabs after the DISD relocates its operations to a new building n North Dallas.
“There is tremendous interest in the DISD property,” Turner said. “We could see some very positive developments on Ross Avenue that would solidify the east side of downtown.”
Ross Avenue has been in transition for more than a century.
During the late 1800s and early 1900s, Ross was a silk stocking residential street lined with some of Dallas' most opulent mansions.
Starting in the 1920s, businesses began knocking down the grand homes to make way for commercial uses.
Following World War II, the street became best known for its rows of used car lots, garages, second-hand furniture stores and mom-and-pop eateries and bars.
About a decade ago, Dallas rezoned the Ross strip to send away the car lots and repair shops in hopes of attracting new development.
Apartment builders were the first to bite — locking up land for several large projects.
Trammell Crow Residential just broke ground for its second large rental community on Bennett Avenue. The 321-unit project is about a block west of Ross.
“To us it’s one of the best markets outside Uptown in the city,” said Crow Residential senior managing director Steve Bancroft. “You have Lower Greenville expanding down Ross and the Arts District pushing up.
“And apartment rents are $350 to $500 less than in Uptown.”
Crow Residential sold its first Ross apartment development late last year to Olympus Property of Fort Worth. That rental community has 368 units.
“Olympus at Ross is one of the finest housing communities in the area,” said Olympus Property’s Chandler Wonderly.
Just around the corner on Hall Street, Mill Creek Residential Trust has filed permits to build a 340-unit, $42 million apartment project.
The Mill Creek rental community is across Hall Street from where Kroger plans to build a 78,000-square-foot supermarket on a block the grocer bought last year.
The new apartments and grocery store will be a huge transformation to the street that’s just blocks from downtown.
“It once was definitely a stretch of road you didn’t want your car to break down on,” said Thomas Glendenning with Shop Cos.
Shop Cos. has leased up a new retail strip that’s just opening at the east corner of Ross and Hall.
“This is one of the more attractive redevelopments I’ve seen with the large steel frame windows and the brick façade,” Glendenning said. “We have been very successful in landing some amazing tenants.”
Little Woodrow’s — a Houston-based bar and eatery — has rented part of the revamped building at 3300 Ross.
Glendenning said Burgundy’s Local meat shop and burger joint from Fort Worth has leased part of the building.
And a third space is going to Bar & Garden, a California-based specialty spirit shop.
“It’s not going to be the kind of place you’d buy a bottle of Jack Daniels,” Glendenning said. “But if you are a connoisseur of small batch bourbons, this is for you.”
With the apartment and townhouse population growing in the area just east of downtown, Glendenning expects to see more restaurant, bar and shop storefronts popping up.
“It’s going to be more of what you would imagine on Lower Greenville or Henderson,” he said. “But it will also have some of what Lemmon Avenue offers.
“Ross is going to have a lot of basic services for the community.”
New convenience stores, bank branches and fast-food outlets are also on the way.
Real estate brokers say that prices on choice properties along Ross now top $40 a foot.
“Land speculation is out of the game,” said broker Newt Walker. “The only people buying over there are developers or someone who has a direct use for the property.”
Walker said fractured ownership of properties in the area makes it hard for developers to put together large tracts.
“The DISD property will be one of the largest properties ever available along Ross,” he said.
http://www.dallasnews.com/business/commercial-real-estate/headlines/20160512-the-next-uptown-ross-avenue-gets-a-remake-on-downtown-dallas-near-east-side.ece
Enterprising Investor
9 years ago
Green Brick Partners Announces Two New Townhome Developments Near Downtown Dallas (5/18/16)
PLANO, TX--(Marketwired - May 18, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) recently acquired land at 3200 Ross Avenue near Downtown Dallas for development of 19 townhomes. The homes will be built by Green Brick Partners subsidiary Centre Living Homes. The four story townhomes will have approximately 2,300 square feet with rooftop decks overlooking the downtown skyline and priced from the low $500s.
"This is a limited opportunity to offer new, modern-style townhomes in the thriving Ross Avenue corridor," said Centre Living Homes President, Trevor Brickman. "The initial homes in the development are scheduled to be available in late 2016."
In a separate transaction, Green Brick Partners also acquired 26 townhome sites near downtown Dallas at Live Oak and Fitzhugh Avenue. The two and three story homes will be built by Centre Living Homes and will feature two and three bedroom plans ranging from 1,800 square feet. The townhomes will be priced from the $350s with the first homes scheduled to be available in the spring of 2017.
Centre Living is currently selling ultra-modern townhomes with private courtyards designed by award winning architect Buchanan Architecture at Colvin Court in the 4000 block of Gilbert Avenue priced from the high 500s.
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes LLC) as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process including land acquisition and the development, entitlement, design, construction, marketing and sales for its residential neighborhoods and master planned communities. For more information about Green Brick Partners and its homebuilding partners, go to www.greenbrickpartners.com.
About Centre Living Homes:
Centre Living Homes is a custom homebuilding company dedicated to quality, state of the art construction, excellent craftsmanship, modern features and personal service beyond the sale. The Company designs and builds in premier, centrally located Dallas neighborhoods with a uniquely modern architectural style. For more information about Centre Living Homes, go to www.centrelivinghomes.com.
http://www.marketwired.com/press-release/green-brick-partners-announces-two-new-townhome-developments-near-downtown-dallas-2126256.htm
Enterprising Investor
9 years ago
Green Brick and Inwood National Bank Amend Loan Agreement (5/03/16)
JBGL Mustang, LLC, a Texas limited liability company, JBGL Exchange, LLC, a Texas limited liability company, JBGL Chateau, LLC, a Texas limited liability company, Johns Creek 206, LLC, a Georgia limited liability company, and GRBK Frisco LLC, a Texas limited liability company and JBGL Builder Finance, LLC, a Texas limited liability company, all subsidiaries of the Green Brick, have amended the Loan Agreement to change the calculation of the borrowing base, which imposed a limit on the availability under the revolving credit facility equal to the sum of fifty percent (50%) of the total value of land and sixty five percent (65%) of the total value of lots owned by the Grantors, each as determined by an independent appraiser, with the value of land being restricted from being more than sixty five percent (65%) of the borrowing base. The Amendment also implements a non-usage fee, beginning on 8/01/17, equal to 0.25% of the average unfunded amount of the $50.0 million commitment amount over a trailing 12 month period which will be due on or before August 1st of each year during the term of the revolving credit facility. In connection with the Amendment, the Company modified the promissory note evidencing the amounts borrowed under the Loan Agreement to extend the maturity date from 7/30/17 to 5/01/19. Also GRBK Frisco LLC entered into a Guaranty Agreement, dated 5/03/16, to guarantee amounts outstanding under the Loan Agreement and a Deed of Trust and Security Agreement, dated 5/03/16, creating a lien and security interest upon certain real property and personal property located in Frisco, Texas.
http://www.sec.gov/Archives/edgar/data/1373670/000162612916000616/grbk-8k_050316.htm
Enterprising Investor
9 years ago
Green Brick Partners, Inc. Reports First Quarter 2016 Results (5/09/16)
First Quarter Pre-Tax Income of $4.5 million; First Quarter Revenue of $70.0 million; First Quarter Basic Adjusted EPS of $0.09; Backlog of $129.2 million, up 39.3%
PLANO, TX--(Marketwired - May 09, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its first quarter ended March 31, 2016.
Results for the First Quarter Ended March 31, 2016:
• For the three months ended March 31, 2016, the Company had revenue of $70.0 million, gross profit of $15.7 million, and pre-tax income of $4.5 million. This compares to revenues of $58.5 million, gross profit of $16.2 million, and pre-tax income of $6.2 million for the first quarter ended March 31, 2015. The decrease in pre-tax income is attributable to an increase in amortization of capitalized interest of $1.0 million and to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
• Builder operations revenue for the three months ended March 31, 2016 was $66.6 million, an increase of 34.2%, compared to $49.7 million for the three months ended March 31, 2015. Land development revenue for the three months ended March 31, 2016 was $3.3 million compared to $8.8 million for the three months ended March 31, 2015.
• The dollar value of backlog units as of March 31, 2016 was $129.2 million, an increase of 39.3% compared to March 31, 2015. The average sales price of homes in backlog increased $78,112, or 20.4%, to $461,393 for the three months ended March 31, 2016, compared to $383,281 for the three months ended March 31, 2015.
• Homes under construction increased 4.6% to 541 as of March 31, 2016, compared to 517 as of March 31, 2015.
• Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended March 31, 2016 was $0.09. See "Reconciliation of Non-GAAP Financial Measures."
"We are very pleased with Green Brick's progress this quarter. In addition, the 47% increase in Q1 2016 backlog from year-end and 29% increase in net orders should translate into substantially higher revenue and earnings as the year progresses," said James R. Brickman, Green Brick's Chief Executive Officer. "In addition, during the last two quarters, we have acquired approximately 1,000 home sites in Atlanta and Dallas that we expect to develop into profitable neighborhoods in 2017 and beyond."
Earnings Conference Call:
We will host our earnings conference call to discuss our first quarter ended March 31, 2016 at 12:00 p.m. Eastern Time on Tuesday, May 10, 2016. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 2401401. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on May 10, 2016 through 11:59 p.m. Eastern Time on May 17, 2016. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 2401401.
Reclassifications:
Depreciation of model home furnishings for the three months ended March 31, 2015 has been reclassified from depreciation and amortization expense, which is included in other income, net in the consolidated statements of income to cost of residential units to conform to the current year presentation.
Reconciliation of Non-GAAP Financial Measures:
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
On July 1, 2015, the Company completed an underwritten public offering of 17,000,000 shares of its common stock at a price to the public of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the "Equity Offering"). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. Due to the effects of the Equity Offering, the weighted average shares outstanding for the three months ended March 31, 2015 is not indicative of the Company's future weighted average shares outstanding.
[tables deleted]
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-first-quarter-2016-results-nasdaq-grbk-2122943.htm
Enterprising Investor
9 years ago
Why finding housing in booming D-FW market is so difficult (5/06/16)
By Steve Brown
About 80,000 people moved to North Texas last year, or more than 200 newcomers a day.
Unless local folks are renting out space in their attics, I don’t know where all these new people are going to live.
We’ve been underbuilding housing in North Texas since the end of the recession.
And there’s no sign that the shortage of homes in the Dallas-Fort Worth area will ease — at least not as long as our economy is blazing hot.
Last year, D-FW had the second-highest residential construction total of any U.S. market, according to just-released data from the U.S. Census Bureau. Builders filed permits for more than 57,000 D-FW homes, apartments, condos and townhouses.
Only New York City, with 86,424 building permits, had more residential construction.
In D-FW, slightly more than half of the permits recorded in 2015 were for single-family homes. The rest went for apartments.
Apartment construction in North Texas is at the highest point in decades, and there are plenty of rental units on the way for the thousands of young professionals coming to the area to work for State Farm Insurance, Toyota, Liberty Mutual Insurance and others.
But the tight inventory that has frustrated would-be homebuyers for more than two years shows no sign of a thaw.
The inventory of homes listed for sale with real estate agents in North Texas is stuck near a two-month supply. That’s about a third of what’s considered a normal market.
Even with steady increases in construction, home starts in the D-FW area remain about 40 percent below where they were 10 years ago.
Builders had about 30,000 home starts in 2015.
“We won’t see the Dallas-Fort Worth homebuilding market get back to the 2005-06 level of 50,000-plus starts anytime soon,” said David Brown, senior vice president of housing analyst Metrostudy Inc. “The region’s population, household and job growth trends could support starts in excess of 40,000 homes during this cycle, but only if builders can deliver homes at prices the buyers can afford in the locations they want to live.”
Most of the houses built in Dallas-Fort Worth are expensive properties aimed at move-up and affluent buyers.
“Back in 2006, over 60 percent of the new home starts were priced under $200,000,” Brown said. “Today less than 20 percent of the starts are at these most affordable prices.”
Also, a shortage of labor, affordable building sites and rising construction costs are keeping a lid on how many houses builders can produce each year.
The housing industry won’t build its way out of the current property pinch.
And homebuyers who head out to house-hunt this spring are finding a cutthroat market with bidding wars for choice properties.
Apartment developers are doing their part to put roofs over everybody’s head. More than 40,000 rental units are in the development pipeline in North Texas.
But apartment analysts say don’t expect a lot more construction volume from the apartment builders. Indeed, they may be pulling back a bit.
“The number of apartment units permitted in Dallas-Fort Worth so far during 2016 — roughly 4,700 units — is off 20 percent or so from early 2015’s volume,” said Greg Willett, vice president of MPF Research. “While those figures can move around a lot from one month to the next, the numbers do suggest we’re now past the peak for starts.”
http://www.dallasnews.com/business/columnists/steve-brown/20160506-steve-brown-why-finding-housing-in-booming-d-fw-market-is-so-difficult.ece
Enterprising Investor
9 years ago
North Texas new home costs soar to record prices, topping $300,000 mark (4/27/16)
By Steve Brown/Real Estate Editor
If you want a new home in North Texas you’ll have to pay more than ever before.
Median new home prices in the Dallas-Fort Worth area now top $300,000 – almost 50 percent more than what you’d pay for a mid-priced preowned home in the area.
“We are at an all-time high for new home prices,” said Paige Shipp, regional director for housing analyst Metrostudy. “Prices continue their upward shift, as builders report the greatest demand, and strongest sales for the first quarter are between $250,000 and $400,000.”
Almost a third of the new houses started so far in 2016 will be priced at more than $400,000, according to the latest Metrostudy report.
Rising construction and labor costs are making it almost impossible for builders to construct low-cost houses in North Texas.
“Due to rapidly rising land and development costs, developers argue there is little hope for the revival of the sub-$200,000 new home market,” Shipp said. “An entry level home on a typical 50-foot-by-110-foot lot is no longer feasible.
“The land, development and constructions cost are too high,” she said. “Not to mention the exorbitant fees municipalities charge.”
Median new home prices have increased by almost 60 percent in North Texas in the last decade, Metrostudy figures show.
In the first quarter, starts of houses that will sell for $500,000 to $749,000 rose more than 50 percent, the research firm found. And starts of homes priced at $750,000 and more were up by more than 30 percent.
Builders say that shortages of construction materials including cement and a lack of labor in the market are putting even more pressure on prices this year.
Even so, total home starts rose 22 percent in the first quarter from 2015 levels, Metrostudy reports.
http://bizbeatblog.dallasnews.com/2016/04/north-texas-new-home-costs-soar-to-record-prices.html/
Enterprising Investor
9 years ago
$80M ‘City Center’ could transform Alpharetta (2/20/15)
By Douglas Sams
An Atlanta development team wants to launch the next phase of the Alpharetta City Center project, an attempt to create a more walkable downtown filled with restaurants, boutiques, apartments and single-family homes.
The $80 million development could break ground as early as this fall, depending on the speed of the zoning process. The first restaurants could open in 2016, with the remainder of the project targeted for completion the following year.
The development team, led by Atlanta-based MidCity Real Estate Partners and Morris & Fellows, is finalizing arrangements with capital partners.
The project could include 220 housing units, 75,000 square feet of retail and restaurant space, and 33,000 square feet of office. It's an extension of the $30 million first phase of the Alpharetta City Center project that is anchored by city hall.
The development team also includes Atlanta-based South City Partners and Hedgewood Homes.
The entire city center development would cover 25 acres. The master architect of the 10-acre second phase is Atlanta-based Smallwood, Reynolds, Stewart, Stewart & Associates Inc., the same firm involved in planning the redevelopment of several blocks in the Buckhead Village. The firm's portfolio includes the $1 billion Buckhead Atlanta mixed-use project, the biggest catalyst for the transformation of that district.
Alpharetta is in the midst of its own transformation.
In the era of the rapid growth of suburban Atlanta, Alpharetta was bisected by Highway 9 and lined on either side by strip malls, fast-food chains and big-box stores.
Now, city center developers want to take a page out of affluent suburban cities with walkable downtown districts, such as Naperville, Ill., a suburb of Chicago; and Walnut Creek, Calif., where investors like the job growth and short commutes to San Francisco.
In Atlanta, MidCity's founder and president, Kirk Demetrops, said Alpharetta is becoming more like Virgina Highland, one of intown's older neighborhoods known for popular bars such as Dark Horse Tavern and traditional Sunday brunch destinations, such as Murphy's.
"People from the Atlanta suburbs have been going to restaurants in Virginia Highland for years, but you just can't get there easily anymore," Demetrops said, referring to the region's traffic woes.
Alpharetta now has 12 restaurants in its downtown, up from just two a few years ago. The city center hopes to continue that trend.
Cheri Morris, whose firm Morris & Fellows focuses on downtown revitalization, said her efforts would target local chef-driven concepts along Main Street. There may also be rooftop dining.
"We notice when a district starts to emerge it starts with restaurants — edgy, innovative, chef-driven restaurants," Morris said.
It's been a winning formula for Avalon, the $600 million mixed-use project at Georgia 400 and Old Milton Parkway, a development that one day may link to downtown Alpharetta's city center.
North American Properties, which developed Avalon, has lured some of intown Atlanta's best-known chefs like Ford Fry, Shaun Doty and Steve Palmer to launch new concepts in the suburbs.
In the past, that almost never happened, Demetrops said.
But Atlanta's suburban cities are adopting more of an intown feel. North American Properties in Alpharetta, and Atlanta developers Carter and Selig Enterprises in Sandy Springs, are examples of developers exploring projects that can create walkable downtowns outside the Perimeter.
The trend is bringing new life to downtowns that experienced an exodus of business in the 1980s and 1990s, when suburban shopping centers and regional malls dominated the landscape. That period came during the rapid expansion or roads and highways, fueling suburban sprawl.
But those forgotten downtowns retained the charm and authenticity of their old brick buildings, many of which are being converted into lofts, restaurants and shops. "It left behind some beautiful bones to work," Morris said.
What might give speed to Alpharetta's transformation is its affluence and strong concentration of jobs, especially technology companies. Avalon, Demetrops said, has also been a catalyst.
The development team recently presented their plans to city officials and residents. The developers will likely take the project before the city planning commission in March.
The second phase of the city center project could come before the council as early as April.
http://www.bizjournals.com/atlanta/print-edition/2015/02/20/80m-city-center-could-transform-alpharetta.html
Enterprising Investor
9 years ago
Green Brick Partners Announces Two New Developments in Alpharetta and Suwanee, Georgia (4/06/16)
PLANO, TX--(Marketwired - April 06, 2016) - Plano-based Green Brick Partners, Inc. (NASDAQ: GRBK) has acquired land in two separate transactions in the metro Atlanta area for the construction of 153 single family homes and townhomes with a build out value of approximately $75 million. The homes will be constructed and offered for sale by The Providence Group of Georgia, a subsidiary of Green Brick Partners.
At Academy Street in Alpharetta, the Company acquired 10.4 acres for the construction of a mix of 83 single-family and townhome units. This neighborhood is located in the heart of downtown Alpharetta directly across the street from the newly developed City Center and City Hall. The central location is walkable to shopping, dining and entertainment venues in downtown Alpharetta and is adjacent to Brooke Street Park, a 5-acre public park. Pricing for the single-family homes is expected to be from the $590's while pricing for townhomes is expected to be from the $450's.
Warren Jolly, President of The Providence Group, said, "At Academy Street, The Providence Group will offer a diverse selection of homes in this highly desirable neighborhood within walking distance to the numerous restaurants and shopping in thriving historic downtown Alpharetta."
At Suwanee Station in Suwanee, the Company acquired 6.4 acres for the construction of 70 townhomes with pricing expected from the $260's. The community is located in the Peachtree Ridge School Cluster in western Gwinnett County on Peachtree Industrial Boulevard between Sugarloaf Parkway and McGinnis Ferry Road.
James R. Brickman, CEO of Green Brick Partners added, "This is another winning example where Green Brick will provide development and construction funding for The Providence Group, our largest Team Builder and one of the leading builders in Georgia."
Home construction is anticipated to begin in December, 2016 at Academy Street in Alpharetta and October, 2016 at Suwanee Station.
About Green Brick Partners:
Green Brick Partners (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes LLC, Normandy Homes (a division of CB JENI), Southgate Homes LLC and Centre Living Homes LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia LLC). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales at its residential neighborhoods and master planned communities. The company currently controls approximately 4,700 prime home sites in high-growth submarkets throughout the Dallas and Atlanta metropolitan areas. For more information about the Company and its new home developments, please visit the Company's website at www.greenbrickpartners.com.
About The Providence Group:
The Providence Group of Georgia LLC was ranked the No. 7 largest builder in Atlanta by the Atlanta Business Chronicle in August 2015, and No. 95 on the Builder 100 list announced by BUILDER Magazine in May 2014. The Providence Group is a subsidiary of Green Brick Partners (NASDAQ: GRBK). For more information about The Providence Group and its commitment to Luxury Living by Design, visit www.theprovidencegroup.com.
http://www.marketwired.com/press-release/green-brick-partners-announces-two-new-developments-alpharetta-suwanee-georgia-nasdaq-grbk-2112444.htm
Enterprising Investor
9 years ago
Green Brick Partners Names Daniel Brosey Vice President of Marketing (3/30/16)
PLANO, TX--(Marketwired - March 30, 2016) - Green Brick Partners (NASDAQ: GRBK) is pleased to announce that Daniel Brosey has joined the Company as Vice President of Marketing. In this new role, Mr. Brosey is responsible for leading all marketing activities for Green Brick Partners and working closely with its partner building companies to further strengthen their individual marketing capabilities.
Mr. Brosey has been an industry leader in upgrading the homebuilder marketing function in the areas of branding, digital marketing and lead-generation. He brings a strong performance record of using modern marketing techniques to keep pace with the rapid change that the Internet and mobile technologies have brought to the homebuilding industry.
Previously, Mr. Brosey served as head of marketing for a large, private builder headquartered in Dallas where he established its corporate marketing department and built its marketing and Internet lead-generation function to originate one-third of the company's total sales volume. His work has won seven awards for marketing excellence from the Texas Association of Builders.
Mr. Brosey comments, "I am excited to be a part of Green Brick Partners. The company is well-positioned and has an excellent platform for creating and implementing an effective marketing strategy."
Jim Brickman, CEO of Green Brick Partners, said, "We are eager to welcome Dan to our company. His extensive experience and marketing background will be a valuable asset to Green Brick Partners and our builders."
Mr. Brosey has over 20 years of experience in marketing management in a variety of industries. Prior to his tenure in homebuilding, Mr. Brosey served as VP of Marketing for a publicly-traded wireless communications company and began his marketing career in consumer brand management.
Mr. Brosey received his M.B.A. from Southern Methodist University in Dallas and undergraduate degrees from the University of Texas at Austin.
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-names-daniel-brosey-vice-president-of-marketing-nasdaq-grbk-2110281.htm
Enterprising Investor
9 years ago
Green Brick Partners, Inc. Reports Preliminary Fourth Quarter and Full Year 2015 Results (3/10/16)
Fiscal Year Revenue of $291.1 Million, up 18.3%; Fourth Quarter Revenue of $85.5 Million, up 26.5%; Full Year Pre-Tax Income of $24.4 Million; Fourth Quarter Pre-Tax Income of $7.6 Million; Full Year Basic Adjusted EPS of $0.61; Fourth Quarter Basic Adjusted EPS of $0.16; Announces Share Repurchase Program
PLANO, TX--(Marketwired - March 10, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported preliminary results for its fourth quarter and full year ended December 31, 2015.
Results for the Fourth Quarter Ended December 31, 2015 (Unaudited):
• For the three months ended December 31, 2015, the Company expects revenue of $85.5 million, gross profit of $18.4 million, and pre-tax income of $7.6 million, compared to revenue of $67.6 million, gross profit of $15.2 million, and pre-tax income of $6.4 million for the three months ended December 31, 2014, increases of 26.5%, 21.3%, and 19.7%, respectively.
• Builder operations revenue for the three months ended December 31, 2015 is expected to be $75.1 million, an increase of 33.9%, compared to $56.1 million for the three months ended December 31, 2014. Land development revenue for the three months ended December 31, 2015 is expected to be $10.4 million compared to $11.5 million for the three months ended December 31, 2014. The decrease in land development revenue is due primarily to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
• Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended December 31, 2015 is expected to be $0.16, an increase of 23.1% compared to $0.13 for the three months ended December 31, 2014. See "Reconciliation of Non-GAAP Financial Measures."
Results for the Year Ended December 31, 2015 (Unaudited):
• For the year ended December 31, 2015, the Company expects revenue of $291.1 million, gross profit of $67.5 million, and pre-tax income of $24.4 million.
• Builder operations revenue for the year ended December 31, 2015 is expected to be $254.3 million, an increase of 26.7%, compared to $200.7 million for the year ended December 31, 2014. Land development revenue for the year ended December 31, 2015 is expected to be $36.9 million compared to $45.5 million for the year ended December 31, 2014. The decrease in land development revenue is due primarily to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.
• The dollar value of backlog units as of December 31, 2015 is expected to be $88.1 million, an increase of 12.2% compared to December 31, 2014. The average sales price of homes in backlog increased approximately $62,600, or 16.7%, to $438,500 for the year ended December 31, 2015, compared to $375,847 for the year ended December 31, 2014. Homes under construction increased approximately 9.5% to 507 as of December 31, 2015, compared to 463 as of December 31, 2014.
• The Company increased homebuilding starts by approximately 8.2% to 699 units during the year ended December 31, 2015, from 646 units for the year ended December 31, 2014.
•Basic Adjusted EPS for the year ended December 31, 2015 is expected to be $0.61. See "Reconciliation of Non-GAAP Financial Measures."
"We had a very good fourth quarter with building revenues up 34% from the prior year period and a record pre-tax net income. Even after that strong closing performance, we continue to be encouraged headed into 2016 with our backlog still 12% larger than 2015," said James R. Brickman, Green Brick's Chief Executive Officer. "As our new communities continue opening this year, we expect to see continued improvement in our top and bottom line. At the end of 2015, we also purchased land for two large communities in Dallas for a total of about 800 home sites that we expect will be highly accretive to earnings in 2017 and beyond. Finally, we achieved these results having the lowest leverage of any public builder which gives us tremendous operating flexibility and the ability to be opportunistic."
Share Repurchase Program
During March 2016, the Company's Board of Directors has authorized a share repurchase program of up to 1,000,000 shares of the Company's common stock through 2017. The timing, volume and nature of share repurchases will be at the discretion of management and dependent on market conditions, corporate and regulatory requirements and other factors, and may be suspended or discontinued at any time. The authorized repurchases will be made from time to time in the open market, through block trades or in privately negotiated transactions. No assurance can be given that any particular amount of common stock will be repurchased. All or part of the repurchases may be implemented under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when the Company might otherwise be prevented from doing so under insider trading laws or because of self-imposed blackout periods. This repurchase program may be modified, extended or terminated by the Board of Directors at any time. The Company intends to finance the repurchases with available cash.
Earnings Conference Call:
We will host our earnings conference call to discuss our unaudited fourth quarter and the year ended December 31, 2015 at 12:00 p.m. Eastern Time on Friday, March 11, 2016. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 49742269. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on March 11, 2016 through 11:59 p.m. Eastern Time on March 18, 2016. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 49742269.
Explanatory Note Regarding Historical Results:
Results for periods prior to the completion of the Company's acquisition of JBGL Builder Finance LLC and its consolidated subsidiaries and affiliated companies (collectively, "Builder Finance"), and JBGL Capital Companies ("Capital"), a combined group of commonly managed limited liability companies and partnerships (collectively with Builder Finance, "JBGL") on October 27, 2014 (the "Transaction") are JBGL's historical results, as the Transaction is reflected as a "reverse recapitalization."
Reclassifications:
Depreciation of model home furnishings for the three months and year ended December 31, 2014 has been reclassified from depreciation and amortization expense, which is included in other income, net in the consolidated statements of income to cost of residential units to conform to the current year presentation.
Reconciliation of Non-GAAP Financial Measures:
In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
Due to the tax effects of the Transaction on October 27, 2014, net income attributable to Green Brick per share for the three months and year ended December 31, 2015 is not comparable to net income attributable to Green Brick per share for the three months and year ended December 31, 2014. Furthermore, the weighted average shares outstanding for the year ended December 31, 2014 (which only reflects the effects of the rights offering conducted as part of the Transaction during the three months ended December 31, 2014) is not indicative of the Company's future weighted average shares outstanding.
Form 10-K:
The unaudited results are based on management's review of operations for the fourth quarter and year ended December 31, 2015, and remain subject to change. Due to the Company's transition from being a "smaller reporting company" to an "accelerated filer", the Company has not finished its internal control testing or the evaluation of its compliance and reporting processes and, accordingly, the audit of its financial information is still in process. As of the date hereof, the Company anticipates it will file a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission in order to extend the filing deadline for the Company's Annual Report on Form 10-K for the year ended December 31, 2015 from March 15, 2016 to March 30, 2016.
[tables deleted]
About Green Brick Partners, Inc.:
Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.
http://www.marketwired.com/press-release/green-brick-partners-inc-reports-preliminary-fourth-quarter-full-year-2015-results-nasdaq-grbk-2105022.htm
Enterprising Investor
9 years ago
Green Brick Partners: Uniquely Structured Land Developer With Significant Embedded Value (2/02/16)
Summary
•Green Brick Partners is a small homebuilder focusing on the Dallas and Atlanta markets.
•GRBK is backed by David Einhorn who founded its predecessor JGBL, is the chairman of the board, and 49.4% owner.
•Sources of value include the land the company purchased during 2009-2015, the NOLs obtained through the recent reverse merger, and the underlying operating business.
•Our target price on GRBK using a blended valuation is $10.55 (83% Upside).
Green Brick Partners (NASDAQ:GRBK) or "Green Brick" is a land developer and homebuilder that came into existence through a relationship between David Einhorn, Greenlight Capital Founder, and James Brickman, a veteran of real estate construction. Einhorn and Brickman were friends for many years before creating a vehicle in 2008 to take advantage of the distressed housing industry called JBGL (I assume this stands for James Brickman Green Light). The company was created with two branches; JBGL Capital LP, and JBGL Builder Finance. I will get into the exact company structure later in detail, but a key point to remember is it is largely a land developer and financier but also owns controlling stakes in four homebuilders.
The company has a storied past since founding, and it is very interesting for anyone that follows David Einhorn and his hedge fund Greenlight Capital. The current corporate vehicle came to be through a "reverse" merger between a previously backed Greenlight Capital investment BioFuel Energy Corp. (which was a defunct shell company prior to the merger) and JGBL in October of 2014. BioFuel purchased JGBL via a loan and rights offering from Greenlight and Dan Loeb's Third Point Capital which raised the cash in order to facilitate the transaction. It's all pretty interesting and worth a read in the "Basis of Presentation" section of its 10-Q.
Why exactly did Greenlight and Third Point want to complete this reverse merger to bring JGBL to the public markets? Because BioFuel Energy Corp. had $64m of deferred tax assets related to its NOLs which were rolled into the surviving entity Green Brick. It was a way to retain the value of BioFuel Energy while at the same time bringing JGBL to public markets cheaply. Basically, it solves two separate problems for David Einhorn at the same time all while retaining some value for him and his investors.
Business Structure
Green Brick Partners is structured in a way that reduces execution risks while still allowing the company to take advantage of some of the upside from a strong residential real estate market. The company owns 50% controlling stakes in the following four homebuilders: CB JENI Lifestyle Homes, Southgate Homes, The Providence Group, and Centre Living Homes. All of its homebuilders operate either in the Dallas/Fort Worth area or Atlanta area. Below is the corporate structure:
[charts and tables deleted]
Green Brick holds and purchases land for development. Its land inventory was built up starting in 2009 and was purchased at likely some distressed prices. It is a pretty good assumption that a portion (likely around 25%) of the land inventory held on the company's books is worth considerably more now than when it purchased it. Green Brick develops the land and then provides financing to its controlled homebuilders to build on them or sell them to third parties. The controlled homebuilders are obligated to finance all properties and construction through Green Brick. Green Brick gets to participate in the profits from the residual profits of its controlled homebuilders as well. Through this model, Green Brick derives revenue through three channels; sale of residual units, sale of land and lots, and interest and fees associated with construction financing.
These three revenue sources tend to vary wildly based on when lots are being sold, developed, or constructed upon. These quarterly variations are likely one reason why the stock is so cheap right now. Last quarter, the company reported net income of just $2.8m (an all-time low since becoming public), and it cut the full-year guidance. The explanation for this rough quarter and guidance cut was explained via a press release in November 2015:
“Due to a number of factors including weather, new community development, labor shortages and an extended building cycle pushing back closings in its core markets, the company is amending its previously disclosed 2015 guidance."
It sounds in part like timing and in part like market effects that actually highlight the tight housing markets in which the company operates. The underlying fundamentals of the company and the housing markets it operates remain strong, and the weakness was not indicative of an impairment of the long-term business prospects. The management of the company focuses on the long-term prospects of the business and does not try to game the quarterly EPS, which I always think is a positive when looking into company management.
Management & Business Philosophy
Understanding management and its long-term incentives is important to understanding the long-term prospects of any company. As I highlighted above, Green Brick was founded and is run by Jim Brickman and David Einhorn. Mr. Brickman is the current CEO of Green Brick. He has 35 years of experience within the real estate industry. Reading transcripts from previous investor calls and press releases, Mr. Brickman continually stresses that they manage the company for the long term and they are building a sustainable long-term land development and homebuilding business. Mr. Brickman is a substantial owner of the company, owning 3.2% of it directly and more of it through family trusts. He is what I would call an owner operator, as he owns a significant stake in the company while he runs it.
Mr. Einhorn is a significant shareholder, owning 49.4% of the outstanding shares of Green Brick and is the chairman of the board of the company. Green Brick is a core holding of his, as he founded the company and shares his "Greenlight" name with it. GRBK is a long-term vehicle for Einhorn set up to achieve +20% returns on equity over the long term through the structure he and Brickman designed. While Einhorn has received some flack lately from some of his recent investment mistakes, his long-term track record speaks for itself. I tend to believe that the structure is unique and reduces risks while incentivizing its controlled homebuilders to build efficiently, which Einhorn and Brickman leverage to build long-term value.
Sources Of Value & Valuation
Green Brick has two balance sheet items that I believe the market is currently undervaluing. Much of the land held on the company's balance sheet is held in inventory at a cost basis, meaning it largely undervalues those assets. Specifically, the land purchased between 2009 and 2012 is likely held at a discount to current market prices. It is hard to tell exactly how much of its land that was purchased at distressed prices still sits on its balance sheet, but based on the rapid growth of the land in inventory over the last five years, I suspect it must be below 25%. The current land inventory is held at $318m, which may be worth $350-400m at current land prices. It is very hard to tell, but you can assume it's worth at least book value, call it $300m. The second balance sheet item that should benefit Green Brick for the next few years is $83.4m in deferred tax assets related to the BioFuel Energy shell company that Green Brick assumed in 2014. Both of these items alone likely cover the current enterprise value of the company at $300M, which basically gives you the operating business for free. That is embedded value. Another way to look at it is, if you were going to try and rebuild this company today, what would it cost. It would cost at least $500m to recreate Green Brick for the land, NOLs, and the stakes in the homebuilders.
A company like Green Brick can be valued in two different ways. The first way is via a discounted cash flow analysis focusing on the future cash flows of the business. The second way is via a sum-of-the-parts analysis evaluating the current valuation of the assets on its balance sheet and then adding market valuation assumptions of the operating business on top of that. Please note this valuation does not take into account the recent announcement of its Frisco Springs development or the associated debt it took on in order to facilitate that transaction.
Utilizing a DCF Model focusing on the future cash flows of the company, I calculated a per share value of $9.14. See below a summary of that Model. This gives little value to its embedded balance sheet value (discount land and tax loss assets).
Utilizing a sum-of-the-parts analysis, which may be slightly more appropriate as the company has significant embedded balance sheet value, I calculated a value per share of $11.70. I assumed an EBITDA valuation of 4x for the current land development and homebuilding operating businesses and a 10% mark up on the valuation of its inventory due to the fact, I believe, some of it was purchased at distressed prices during 2009-2012. See below a summary of the model:
Blending the two valuation methods, I came to a target price of $10.55 per share.
Conclusion
Green Brick Partners is a great value at $5.75 a share if you believe the operating model is worth anything, and likely a fair value just for the balance sheet assets. The current net current asset value of the company is $5.05 per share, which even understates the current value of the land inventory that the company holds on its balance sheet. I believe shares in the company are worth around $10-11, roughly 83% upside to the current share price of $5.75. The management and insiders involved are incentivized and aligned to deliver long-term value to shareholders, which will be realized over the next few years as the company's operating history grows and the underlying value of the land is realized.
http://seekingalpha.com/article/3855996-green-brick-partners-uniquely-structured-land-developer-significant-embedded-value
Enterprising Investor
9 years ago
Green Brick Partners Announces $170 Million Dollar Development in Frisco, Texas and December Progress (1/11/16)
PLANO, TX--(Marketwired - January 11, 2016) - Plano-based Green Brick Partners, Inc. acquired 96 acres in Frisco, Texas along Eldorado Parkway between the Dallas North Tollway and Preston Road. The future development, Frisco Springs, will consist of 350 homes ranging in size from townhomes to traditional single family homes.
Jed Dolson, Green Brick's Head of Acquisitions, said, "The first phase of residential development will commence in early summer of 2016, with model homes opening in spring of 2017. Frisco Springs will be one of the most desirable neighborhoods in Frisco and only minutes from the Five Billion Dollar Mile that includes new headquarters for Toyota, Liberty Mutual, the 6000 worker JPMorgan Chase new office campus and the Cowboys new training facilities and stadium."
All the planned townhomes will be built by Green Brick Partner's subsidiary, CB JENI Homes. The homes are designed around 20 acres of open space with walking trails connecting owners to the $1.5 million dollar amenity center, complete with a pool, work out room, and entertaining areas.
The single family home sites, that are up to a quarter acre in size, are planned for sale to third party builders.
"We are excited to expand from of our Canals at Grand Park experience, offering homes targeting empty nesters and young professionals with even better amenities and access to employments centers at Legacy West and Frisco Station," said Steve Schermerhorn, Division President of CB JENI Homes.
Green Brick's CEO Jim Brickman said, "December was a very busy month. We increased our unsecured credit facilities by $40 million and added 800 AAA location home sites to our pipeline that should contribute to our profitability for years to come."
Green Brick Partners (NASDAQ: GRBK) owns a controlling interest in four homebuilding companies in the Dallas area -- Normandy Homes, CB JENI Homes, Centre Living Homes and Southgate Homes. Its Providence Group is a leading homebuilder in Atlanta. The company currently controls approximately 4,800 prime home sites and is building in Allen, Carrollton, Flower Mound, Frisco, Keller, McKinney and Plano as well as in other DFW markets and in Atlanta, Georgia markets.
http://www.marketwired.com/press-release/green-brick-partners-announces-170-million-dollar-development-frisco-texas-december-nasdaq-grbk-2086981.htm
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