Green Brick Partners, Inc. has recently released its 10-Q report, providing insights into its financial performance and operations. The company, based in Plano, Texas, is a diversified homebuilding and land development firm operating through three segments: Builder operations Central, Builder operations Southeast, and Land Development. Green Brick is engaged in all aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, and sales for its residential neighborhoods and master-planned communities.
In the recently reported period, Green Brick saw a 26.1% increase in home deliveries and a 20.4% increase in home closings revenue for the three months ended June 30, 2024, compared to the same period in 2023. The average sales price of homes delivered decreased by 4.4%, while net new home orders increased by 4.0%. Additionally, the homebuilding gross margin percentage increased by 320 basis points (bps) during the same period.
For the six months ended June 30, 2024, Green Brick reported a 17.1% increase in new homes delivered, contributing to a 9.6% increase in home closings revenue. However, the average sales price of homes delivered decreased by 6.4% during this period. The company also saw a 2.0% increase in net new home orders, while the residential units gross margin increased by 450 bps to 34.0%.
Furthermore, Green Brick reported a 36.7% increase in lots revenue for the six months ended June 30, 2024, driven by a 97.2% increase in lots closed. The company also experienced a 395.3% surge in land and lots revenue during the same period.
The selling, general, and administrative expenses as a percentage of revenue decreased by 0.5% for the three months ended June 30, 2024, attributed to an increase in builder operations revenues with better leveraging of overhead costs. However, the equity in income of unconsolidated entities decreased by 79.2% for the same period, mainly due to the sale of ownership interest in Challenger during the three months ended March 31, 2024.
In terms of income tax, Green Brick reported an expense of $23.9 million for the three months ended June 30, 2024, compared to $23.1 million for the same period in 2023. The increase was primarily due to higher taxable income, partially offset by a lower effective tax rate, lower state tax rates, and a discrete tax benefit for equity compensation deductions.
The market has reacted to these announcements by moving the company's shares -2.1% to a price of $73.15. For more information, read the company's full 10-Q submission here.
