GRBK - Earnings call transcript Q4 2018 | Green Brick Partners, Inc.

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Operator

Good afternoon, everyone, and welcome to Green Brick Partners' Earnings Call for the Fourth Quarter Ended December 31, 2018.

Following today's remarks, we will hold a question-and-answer session.

As a reminder, this call is being recorded and will be available for playback. A slideshow supporting today's presentation is available on Green Brick Partners website, www.greenbrickpartners.com. Go to Investors & Governance, then click on the option that says Reporting, and then scroll down to the page until you see the fourth quarter investor call presentation. States that statements conference the within provisions the you make it Safe reminds Reform of forward-looking Litigation various the United company during XXXX. call, this will Harbor Act The of Securities Private meaning of such aspects subject Investors other on respect to prospects the current are to based business uncertainties. of expectations statements revenues, are forward-looking with are performance, risks earnings, and cautioned strategies, Partners and that of and Green Brick to could differ such factors actual cause indicated or outcomes from few by materially A forward-looking results those statements. press and statements recent Please most which read Exchange Commission. regarding March factors statement on the risk X, Securities company's the annual released cautionary and contained described forward-looking in and in the quarterly the company's filings was Monday, the release, with update this statements duty Partners are that no during Green Brick call. undertakes any forward-looking to made adjusted Today, and financial referring EPS are adjusted homebuilding the be non-GAAP company margin, which measures. will to gross to and the of that to reconciliation contained in Brick attributable earnings adjusted gross EPS gross are the homebuilding yesterday. issued homebuilding to adjusted Green net income margins The Brick release Green the margin to like now over conference the CEO, Jim would I Brickman. to Green call Brick's turn ahead, sir. go Please

James Brickman

and With Thank of our our Costello, Hi, the is our you Loveland, CFO; Dolson, Texas Jed me everybody. for Rick joining call. Region; Summer CAO. President our

announce do this. quarter mentioned, click says on up capital then the year-over-year. few of and over Governance, our to is Significantly, Brick a everybody of competitive call among excited give the lowest to top operator until attributable builders. this of to to increased equity presentation. a debt that earnings page, click the you XX% see QX year-over-year option and in our investor despite At XXXX, greenbrickpartners.com. in income Investors XX% that revenues XX.X%, public ratios the QX fourth call return up then the Reporting, our to XX% total the down was full scroll XX% XXXX minutes that net adjusted our with having more I'm our & the the despite of As Green Brick's I'll an accompanies year on web presentation at can one increase year-over-year be webpage found million on $XX.X environment. on Green page, backlog

last has As we mentioned family GHO development. join quarter, positive Homes having team a our of very been builders

from which Slide million, diversifying offerings backlog Even XX, Two Dallas price was Atlanta. total country $XXX are our In April. in point, Please XXXX, million include in $XX.X late inception up to or X. flip year-over-year. our since our XX% markets markets added to best lower as to million in they recorded and the And addition of the revenues December we XX%. $XX.X without a GHO to in backlog year-over-year have Homes, homebuilding our core of over of increased GHO, also

approximately there suburban John the Frisco Green is Frito-Lay, fourth south, last the J.C. J.P. our submarkets. being markets by, X,XXX Dallas to and largest one ranging Chase, the Dallas On the markets X core Toyota, sub-markets the demonstrates commercial sixth or the spotlights Frisco. in XX,XXX top is Excuse mean in Atlanta center the the and lots is Estate high X schools $XXX,XXX we Employers a proximity maps they variety Springs, have for factors A-rated USAA. employment. our in Challenger in be Intuit, operates of areas, nation, of our such five with Slide as Texas, of Morgan Penney rated Frisco, of of starts controls X, see of within immediately continued what months, to life. Dallas part Mutual, Homes submarkets be homes and largest subjective of one the top legacy has include by the designated affiliate XX Dallas market. growth. up, job adding of where on Dallas grades Colorado quality new of housing through which and metropolitan Slide in Atlanta and submarket Atlanta Liberty of jobs, During Consulting terms Slide the the quality can almost market starts. published continues Brick number to and generating schools, the of existence Metroplex. based of eight infrastructure market owns the A Burns among and E, Real you me, two for top largest in the

Brick taken locations overlaid have green dots. and those communities the We Green maps of with our

lots can you submarkets. A most locations. in primarily controls in What is not the constraints you best the of communities locations. lots preponderance in A-rated the about is X,XXX do graph in As how very using almost see, Green are and prior X,XXX supply of Brick Dallas in Atlanta, tell or Metroplex our the own these lots

Some has with from That equilibrium kept leverage the been entitlement of has are land buyers strong have has investors with impacted generally we supply offset in cycle locations experience held complicated this business in hands our prices prices. cycle. more to seeing sellers opportunistic and fairly time On sheet markets. we lowering These of nutshell, markets as a builder completed Dallas decades of us our an compression and land prime to compression. margin said, in with extended. of demand asked total like Even land we we look land is as margin versus factors development. land low controlled in or growth Atlanta, X. in are development combined become has in lots Because lots prices of process friendly can the Green balance XX%. sellers the grown not Land contract the you land In a in look get the in revenues knows lots related experience, our revenues. can the growth first a XXXX, the see our because story and and full and two broker the direct by the of end and with annual correlation at by chart owned that resulting Takes growth Brick's quickly our total in the usually see XX% and decades Slide our deals opportunity. owned of at close an buyer look years at revenue stable. since we controlled the closer between annual And and investment event and have total

drivers our Next, will the Jed Dolson, growth Region President our Jed? Texas diversification. our of discuss and

Jed Dolson

drivers. truly revenues best one Jim. from Thanks XXXX a growth in the homebuilder for Brick more in at basis, growth is year-over-year space. look the growth our XX% of period, On setup two-year million stories label public backlog a impressive as of to year-end. Slide The is total XX, Take the XXXX future. is XX% even over that our grew $XXX Green but to

also XX%. lots XXXX, and XX% controlled by of we increased During communities owned by average and grew our the selling number

we XXXX, units XX% X,XXX versus by of an units. XXXX, our number up started increase During with to increased

QX of have fact, In average we quarter starting to over per QX units XXXX. from XXX

have year-end year-over-year under construction, XXXX. X,XXX of from XX% XXXX, the units As of increase an we of end

starts diversification development. focus On of we years In increased to So further we Green offerings. and Brick and our on construction the of land planning, our has dynamic the growth. lot significantly XXXX, inventory product highlight acquisition Slide community, XX, sustain townhome to thanks backlog,

years helped In XXXX. to XX% our revenues has price. sales from single-family the fact, townhome two Over our control we've XXXX period, versus growth the our average of by this us growth grown this XX% over of last

growth we homes versus two average diversification XXXX, eight our we've highlights already our Over segments. efforts. price last in in product risen homebuilding of months - and XXXX significant X.X% GHO is has targeted years, in entered the This In only XX% and single-family consolidated purchase growth of XX% categories, just both total. XXXX saw townhomes. and GHO in our sales Homes specifically in With by Florida revenues. slide XX% After also age the balanced age-targeted specifically XXXX,

revenues and we will In closings states, During the half buyer of which We Trophy Slide we Georgia address in in growth offer XX% Homes demonstrates, in and XXXX, in XXXX. grew of Texas, growth concentrating points revenue our five Signature price - introduction affordable experienced not all level with segments move Florida consumer the distinct our our have we of time segment. risk new by of strong second XX% now points. on with home an first of one entry first price three limited see our XX% XX segment. XXXX, any

in top in a X, consumer are of move saw three risk XXXX remember segments to without consumer and growing to sales homebuyers. and of part our reliance prices constantly XX%. on on of Brick's A our include Our additional are locations. group desirable product limit back please But submarket offerings the strategy different single communities longer-term growth diversify segments types Green ranging saw XX% what located most of to from The Slide you

quarter CFO Next, will in results more fourth Rick detail. Costello, our our discuss

Richard Costello

you Jed, review and XXXX fourth Thanks all thank financial our to joining today for quarter results. us

First, let's highlights I'm the review then going Slide to start XX. move and details. into with

XX% started of value up basis, 'XX 'XX per deliveries home under of XX% by sales quarter, the are XX%. For on Jed months units sales of just by by metrics. in quarter then with XX% year-over-year. by deliveries year-over-year The QX are up for versus increased of year-over-year. home total XX XXXX last the key XX% and new orders and by like X% increased up up increased home increased for by for here home XX% Net some construction with year-over-year homes QX operational and comparisons, Year-over-year all XX% revenues, for XX%. by revenues, for with Home the backlog said,

XX% pre-tax quarter XX% XX% was adjusted for up our up Our for for adjusted was quarter, and income income year-over-year. the but and year-over-year for flat net the up

details. more for Now

compared new quarter increase QX, fourth to the number of of X% For XXX homes, was orders an the home of XXXX. net

XX% and to approximately with price a our of ASP approximately the is than price XXXX. XX, of bit were million, XXXX sales a points of the quarter, XXXX. closed an decline increase year-over-year fourth Brick XXXX to which Brick's the of acquisition GHO XX% the December X% its home a XX, versus X% XXX closed million $XXX,XXX ASP units to $XXX,XXX, to The revenues percent total Get over over of Brick for net X% quarter function This increase XX% over XXXX Most XXXX. number, QX XXXX, builders. grew in to sales XX% in addition homes, of operations home the the change full other of XXXX. million new QX homes by lower the drivers. homes a XX% are grew the sells for from again Year-over-year, than primarily our total $XXX.X at of is growth price Similarly, all GHO $XXX.X over the it versus XXXX fourth the all quarter from X,XXX. sold, revenues to homes year, quarter, $XXX.X segment for Homebuilding of XXXX. year-over-year Homes, for Green of whose XX, with homes for prior XXx value million points. backlog builder orders XXX home and because the the unclosed $XXX an million, of at year. X,XXX from $XXX.X was a year-over-year had of closed of backlog a versus up decrease up our At grew down for XXXX. average by for our delivered hear Homes, and QX increase was about quarter December quarter in in XXXX homes the of both average December price quite XX% lower XXXX, X,XXX XXXX, Green here sales of revenues At and Green but For XX% XXXX, XX% more

and introduce some growth on a XX-month review last our Let's of metrics key basis.

of Regarding last X,XXX stand our new homes Again, backlog up XX% orders end of QX XX the up net XX% the for year-over-year. at X,XXX, is months as XXXX. sales, from

XXXX, of year-over-year had selling an QX Brick a For of Green XX%. communities, XX active increase average

XX% XXX XX, Regarding lots about over year just from XXXX. as homes for accomplished the owned versus X,XXX of last of X,XXX and was in XX, in an period XX% homes units, XX%. December to this from construction XX, X,XXX months, the starting XXXX. inventory compared homes increased December And X,XXX XXXX, we XX December units of last under as that number despite under lots lots, to December up XX as controlled to ago the months. X,XXX as increase grown has of of X,XXX Homes started of lots And increase an of XX,

that GHO from acquisition decline. Our half full of gross accounting is XX%, homebuilding Homes XX, X.X% to our year XXXX. December margin adjustments down related XX.X% about year-over-year represented of Purchase through

half our of homebuilding this margin accounting amortization more into GHO and About for or half of QX to in QX as decline is capitalized of developed temporary of During as well incentives. interest to gross related XXXX, gross XX.X% a XXXX. the parties GHO. sales was declined QX fourth our the portion due decline other But of quarter increase lots from - purchase XX.X% homes margin by increase to our sold third adjustments in the for

As sales when Green gross price the are the margins higher evaluate Brick for our best because structure. profits in discussed the last quarter, house of homebuilding land of our We developer our development margin produce returns to versus is business. lots cost constantly

into of well income takes here, both measured chart demonstrates as is our begins operating as XX the consideration with are critical pre-tax peers. left measures performance and expenses. Slide new as the Pretax margins our performance. three Now against income on measures building There two

a see, stands cap cap you XX.X% above of far or This and our at margin mid approaches pre-tax As of can and for income puts pre-tax largest builders. our percentage the XXXX. revenues performance the peers us as small

that cap of on return adjusted $XX.X Brick's in invested as million total invested heads note XXXX for our to income and stands income performance above A on pre-tax rising cap return capital. XX.X% income measure XX% up should on in and of reflected ROIC, XXXX mid million pre-tax year-over-year, XXXX Again pre-tax XXXX. return is You here, in second capital. from peers shoulders Green small in was $XX.X based our

Brick's Green change the for year's Now law tax of most of an line. of share over our last million. tax you increase amount $XX bottom asset once was that's EPS per $X.XX XXXX the QX, XXXX for is adjust important in for deferred XX% the XXXX write-off

For XXXX, versus for per $X.XX for the full $X.XX per XXXX all share increase year of of XX%. EPS share an was

consider XX.X% XXXX, the net cap for the but line story. is return of rest peers, which our income Slide Our at stands on in with let's mid small for and equity cap XX

As low shown net of of while We've increasing the public interest been equity leverage keeping, has any our grow been able debt on of to on financial one lines Slide rate XX, credit. ratios return our through despite accomplished to capital builder. rapidly, lowest revolving

the our year-end closely net our an all to that builders. this other cash, are have at this of the on back ratio chart XX%, have side Brick's chart, XX%. XX.X%. average ranges to are on to As debt shows net of an is peers seven debt prior the similar Green XXXX, where XX% gradual debt of equity, will minus a and look Jim? wrap over up that things debt that return more this turn on capital increase the of Brick. to small between XX% call of builders of slide call leveraged the increased part average but the to but ratios capital peer to has leverage for XX% versus mid Green seven Jim, we XX.X%, Q&A. wrong builders were to now left opening those net side to they that return cap up cap is with accomplishing the than equity or over continued Note The to more financial XX% I'll point to peer who

James Brickman

our through financial increase further examples through of session. Thanks, to the Q&A return concrete these leverage during continue glad can drivers services. any of Slide We'll we provides discuss Okay. Rick. financial how XX and the be operational and of equity on to expansion

market the competitive. be Going forward, we expect to more

before up are believe industry peers many on above In margins of we by is lot the peers. in builders of our investors the the expect team cap or of I breakeven in impacted markets, mid profits we want than have and total margin continued we from also of Green Hence, cap marketplace XX% absorbed of the remind and have and small capital less and XX% controlled because only more returns are growth, profit share. December received we summary, to until many our Brick. backlog our business we invested our still received competitive Fortunately, highest XXXX, we that XX, some that our far most any by compression is model. best lending we

call addition coming a now to the excited to quarters. builders turn Signature operator are Trophy the be forward family to We this very questions. years. back for in accretive and about Homes development of over of very look of impact the the will coming the more sharing our believe Operator? builder and I'll this I

Operator

Tim from Your Instructions] the [Operator Deutsche Bank. from Daley question line of comes first

open. is line Your

Tim Daley

volume So growth quarter. the the in my first regarding is one

curious, understand did we growth the when just you was were us Southeast and how help the performed acquisition? as region, you trended the volumes I And the compare well, could in So to Challenger out take a rates the GHO guys Central how if quarter?

Jed Dolson

performance, quarter the expectations. inside of estimate strong they the year, invested can year, above for far had one performance Challenger by the the something That's that earn-out certain end once we on capital. happened was was a their exceed because they return have of in the an that had so not Challenger they that things numbers earned early but that the

doesn't share quarter, So calculation excellent performance. they that but in owing had much as fourth that to an our take earn-out show because quarter

your question relative In of terms was a basis each performance of specifically on in related quarter-to-quarter - to the...

Tim Daley

net the like regions growth a orders trends kind two between central... the in of organic Yes,

James Brickman

be this and in Atlanta. than they Dallas now are This projected than Jim. Atlanta are greater is to into greater growth year The organic right trends going

drivers is and XXXX going do in not have Providence Jed pleased we in they of Trophy their expand Signature performing We in big best nor one probably we Homes. market. very the , Dallas do how expect to the that in to platform expanded have Dallas with for as as one of that many Atlanta, lots we be going are we are Group the bought Trophy? platform, But into builders much

Jed Dolson

Over X,XXX.

James Brickman

think invested revenues lots so this year you're Yes, to are really, we've going where than position. really not for of start less get see X% land going because our growth I and - the to going we're XXXX, on stream to with think coming we've XXXX X,XXX rifle Atlanta, in projecting I in whereas we're Trophy, that into growth two loaded communities going we're

Tim Daley

kind laying of is equity the 'XX. should very then return there. in the for about the drivers out And my helpful increase we that and question second SG&A leverage be Obviously for XX regarding Slide that thinking on

So just this fourth we thinking that in kind But we GHO wasn't kind XQ from quarter, of we the same were the 'XX? were quarter? year-over-year that Or about in the in was that was the experienced operating expecting. leverage - there any one-off that expense the basis in you drag saw SG&A experienced of improvement obviously, on that

Richard Costello

things well really the even shown of year. would a had was couple in those homes during completed I a occurs, a weather did of of on starting happening in the think, closed, there increase QX increase end communities in growth also an an there. units we specs. QX. just in the finished basis as had probably an If year. count of better the in the as certainly SG&A that just homes There advance issues We impact But completion issues some of opening increase and have stronger community leverage. organically But We not that top increase year-over-year completed was - also even our line did have because from close in and of have as were the backlog

Tim Daley

your line, synergies that other kind the than just brands. of does across SG&A basis see be slide the the thinking percent differences a a is the I leverage return versus half come and see we GHO and time. rest it assume, it's more reasonable down going Thanks and year-over-year of of 'XX? the thanks of any call for to overhead a in about of a then to latter the rather bit that sort regional start as year that revenues out the given as lapping growth of SG&A obviously, year to we the But GHO on of of And kind could terms in total the transaction

Richard Costello

this how to should just Slide anywhere - see communities our We we and feel ramped absolutely. have near growth our inventories rate. When Green place, up place. and overhead like Absolutely, on increase in lot Brick's can construction actually you the XX, close overall we not in revenue we've the showed

builders leverage. dynamic that new some they JENI So Homes, CB for that a gives instance, amount grew also like positive those terms units Homes, leverage. in And should us Normandy then SG&A under of the by additional construction contributing of experience each

James Brickman

just This little is Jim, more bit again, a color. let me provide

$XXX $XXX you help would longer not can SG&A quarter-to-quarter, our million, on think understand our home of revenue but that business, our the I office just to and that over We can think with I million really increasing where we million term. grow plus or the next we peers. think SG&A moving the leverage top where four minus and of $X that's years, up picking us business start

builder One is Challenger purchasing the two, talked be of goal year our like a and so are just tremendous threefold. efficiencies we now, we and three, is right efficiencies. X,XXX with services; our cost of business leverage and as to operational SG&A expansion financial home to with reverse grown about; we've finding And the engineer

Operator

Your Credit of comes next question Suisse. Maklari from from the Susan line

is line Your open.

Chris Kalata

Susan. growth year. from actually with what order the my taking you Chris competitor seen? on for is order far questions. quarter? we've on roughly seen that for heard the that's in My are This question trends And breakout from monthly just first last line morning, This you've able is this flat, orders is Thanks to you've so

Jed Dolson

breakout. that saw soft generally, out We we typically fourth a able are everybody growth, quarter. break order monthly don't but But share to the

pickup that the and with think two a over to backlog I sales up, like, hope up. up every we as investor we'd much call they the wondering, really just going continues. seen We are weeks up listen in I to we've spring saw and as happen orders start - January, February good up, last not sales. pretty Everybody's are Our they're what's to pick is,

Chris Kalata

ground, then environment second are to And some your just on margins the is my sacrifice the going just of to question, share. that on given competitive maintain peers larger

want pressures? how able you ways you're what address that how to seeing compares Just are to - that see is what and these

James Brickman

to guess, extent. more little I markets. because this Jim supply always a Well, We're It's some bit in protected price is versus we're again. pace more constrained

we a For $XXX,XXX Alpharetta, that a small some example, in range. A to real expecting in plus price where - with We're The single-family what an single-family Texas, lot consider that McKinney, inducements we're homes minus have had market the we and more a strong competing to concessions. lot of in flipside B of homes. $XXX,XXX market low doing to where are sales we We're having offer townhomes lot a in - story is product.

I much but business board, So it's that pretty have saving guess for we is margins. the grace of across the the our some highest

to good we're and a that of - a our line we're and comes this As of going have builders top the year. XX% off we hit just bottom mentioned, grow think still lot line I

Operator

next comes the line from Rehaut Michael JPMorgan. from of Your question

open. is Your line

Michael Rehaut

It's on Mike the results so far. Rehaut. Congrats

here. get to hoping was Just few a questions

you last be the directionally where been the community some how XXXX, and months. First most typical in around to And of lot think them your start-off But I shaping gross might over given of just from understand, demand of on end count about of seen giving up maybe at could all, you able of flux perspective? giving the growth of specifically thoughts the about are thinking obviously, few have time, out have be a a kind point quarter. for first XXXX and this guidance margins metrics peers, that all refrained by some how the in trends we've guys

was backlog, thoughts at community might So, you given two see you at to be first metrics, point by gross you're think count And margins what hopeful into if least this directional already and the give some quarter, doing? 'XX? us months those your I two could around again,

James Brickman

they're and about they're to Florida, in slightly. community going to I'm you stable. Atlanta, Dallas? Atlanta up probably talk going don't count Jed, address why go about Florida.

Jed Dolson

growth think We previously Dallas, opportunities, more have Jim we mentioned. as

community year-over-year. So could XX%, see grew in Dallas I think XX% we count

Michael Rehaut

don't of year? And so the of is front in I with Dallas just prorate I assume the half for the The I up apologize, XX% all me. have that business community and count, full XX%, then numbers you roughly to right

Jed Dolson

than community count. I our it's Yes, a companywide little believe more of half

Michael Rehaut

be the lower, directional thoughts helpful? just XQ thoughts the And gross it the margin. the I'm you pre-interest. drivers little mentioned of XXXX? gross after that be thinking higher, - and of XX% XX% quarter, incentives you interest as Jim, the any ended any more increase then terms part as we think gross there kind margins be referenced would - directionally, do around margin around of market an of in that XXXX you thinking where you I bit your new competitive Should first on for to base of expect XQ to roughly kind in into you go in for you Or

James Brickman

Well, you that I ball with help I that could wish had I a crystal answer.

two see things I think we're going to happening.

to I margin like for continue and see McKinney, market compression. Texas competitive our going think we're a to in example townhouse in very markets some

Flower constrained. We have community supply in a Mound large

I think long time. that's a going margins for really to great produce

school have We neighborhood margin. a that in a competition to and a Coppell, it's high district has that's going AAA little be very

in we don't tell communities know So ramped the margins can as I I between - margin effect net some getting taking up, these answer we're that lower of communities that. compression. mitigate is hoping new we're and I you to going to But that think the some

Jed Dolson

And on price goes that there's competitive the certainly discovery consumer side. side the in

down been our in ultimately coming in an base sub-contractor or some we're opportunity because big is going impacts question Atlanta, demand for on to the that. retraits But positive in submarkets instance, the starts the be, back, of happen good. There One are competition for is margin Dallas. interest what's with has rates going to doing and traffic and is the mark constantly to

we're So ball is crystal our clouded. but optimistic,

James Brickman

seeing more are traffic, and got actually clears bit a and traffic traffic inventory year, is up buyers reports week are than actually waiting we're see our and affecting we spring. deal but it's that to really traffic, wanting a the the last last it's Well pricing still we interesting in how just quite and

Michael Rehaut

apologize last margin pushing quick sales I on on question a one if the and I'm then I pace. One point just and had

quarter, up, look first backlog book Just up thoughts might XQ? be you've first margins of already set XQ on of into Any shaping months as two obviously this versus how you the you directionally have your kind gross quarter. the

Richard Costello

still is of share that details you estimate is, where start that's revenues We're pace see are to we not - can our to see QX. do harder going that, can backlog you directionally of probably be, can the our say side. that but the portion what so mean allocated margin on what the I on you to not to have pressure going

Michael Rehaut

One a the you took last guys pace like for quarter hit the fourth the sales industry, quarter. your tougher in on down for - one, it XX%

quarter. was the robust. most up You still have of spring that pace the you the - the still couple picked And first been tough weeks, as that comp has down last has the viewed a more but to in and XXXX improvement a which of sequential bit XXXX, referenced over industry some of pointing earlier versus

builders? year-over-year that something the down should So is we sales for that other to yourselves expect similar remaining pace

Richard Costello

down QX. the to Yet community, more was but February tough XXXX XXXX, for got the think probably and but it was XXXX, tough mentioned last Jim and be real comp. like XXXX, was January more average yes, of take not, between lot XXXX if quarter, I before, a looking a - very - like similar real we've year per was seen, like rest you the comp it the to a

Operator

of from comes [Operator question Reichardt Instructions] line from Carl next the BTIG. Your

line is open. Your

Carl Reichardt

I questions Trophy Signature. a ask about to Jed, couple wanted of

you now, think of and just expecting maybe for out total, end talk are square year, be plans and then and you're that's got X,XXX of of said X,XXX you bit they can the locations about where a price And XXXX, XXXX? points roll-out sort X,XXX. this footage and little that to in X,XXX the what should of that you've is I guess is we quarter, So at lots base the I the out were you using? the

Jed Dolson

Yes, sure.

the bit having we're and more right the we're probably I to more So like opportunistic need opportunistic nimble - little now. and builder a start-up Trophy with is average than

starts Frisco, actually Texas, already. be ground in first are our we've So going to broken

in communities have advantage lot different of resets. in we'll So where taken Frisco two we've

- be year, have from this community XXXs. streams Princeton, and in our revenue will revenue Texas have that will low from also will in QX, the We in

that So entry opportunistic Frisco probably situation, first be and than time just as to mentioned, ASP level little we is given a bit Jim move long want higher Trophy up. but term, typical

James Brickman

size year? last What

Jed Dolson

foot. X,XXX square

Carl Reichardt

you're is your you to or XXXX. And growth, it's lot been expect today this when and curious feel how year upside continue. land growth at at I'm think of the rebound? count the for I trajectory Jim, especially then at to that - out flatten it spend land before you the new robustness a looking backlog. look Do about look going thinking about you Do to the sort I'm I spend accelerating when as Rick do market the of

lot a got of You've lots on houses already.

what's thinking your you're - look in for the spend right you market at 'XX? land as what now So

Richard Costello

in many and our is aren't the a resorting of things they are of and two to we have three that to all on on profit we're that deals to we at very or I'm of very in position land land really particularly good for time. those way about buy a deals, not encouraged as a for of other we've XX% and peers, we're now for debt right position on those expensive sites some much banking year. closing. now comes one deals capital those one, competition kinds been in And that we're working those right Well, long other going XX% by a really or tomorrow And land the process looking another. that seeing they've at out of and builders. planning to of options looking one are well been And and think entitlement cautiously have over very deciding Atlanta three

operates of land XXXX in term, book. somehow like, the of also now. which we're really sure lot of So business a day, the well, our about pretty excited end we're and side like land comes margins in profit not that the we're long our Unlike how it's XXXX the about is pretty right the guys say, that new model of at out encouraged land

Carl Reichardt

looking now, that them. closely terms And something more the how about the Is right question, of for at builders? in off the you're smaller attractive 'XX, status model for of what's talked I is that - sort there? you table do much then Thanks. written being think is think environment last your about look is we the haven't now acquisitions. potentially a we've How lot

Richard Costello

that how relative the are take business it's two only on we think take spread because very a they and two at we are asks high we're capital look capital to not disconnect constantly our that at looking going now. private we acquisitions and business buy look invested builder a and how is have Well, basis and because unless builders big why bid trailing going leveraged between a and that's There's return at and we still just There we they we they as business. on their looking, have they're place going private return made right a forward. are and we to be really that forward, going on builders, to

ask that would hand, going have a but - to So spread just bid is say, we're deal in I now. and a there between love right would to

Operator

thank There today's are and concludes no This participation. questions. conference call. further Ladies gentlemen, for your you

disconnect. now may You

Green Brick Partners (GRBK) 5 Mar 192018 Q4 Earnings call transcript