GRBK - Earnings call transcript Q2 2021 | Green Brick Partners, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone and welcome to Green Brick’s Partners Earnings Call for the Second Quarter ended June 30, 2021.

Following today’s remarks, we will hold a question-and-answer session. And as a reminder, this call is being recorded and will be available for playback. A slideshow supporting today’s presentation will accompany today’s webcast and it is available on Green Brick Partners website, www.greenbrickpartners.com.

For listeners joining us by teleconference, go to Investors & Governance, then click on the option that says Reporting, and then scroll down the page until you see the Second Quarter Investor Call Presentation. States that statements conference the our and its within provisions COVID-XX the future you make we Safe our financial reminds Reform on and of forward-looking Litigation aspects anticipated for other business. various the United the and company operational during XXXX, prospects XXXX call, this of will Harbor Act expectations The of Securities and including future Private operations, meaning of of impact forward-looking such subject our that from cautioned are uncertainties based could and are Investors forth results forward-looking materially expectations current statements to to and in on those set differ and risks statements. or cause actual outcomes X, the with the These annual in press second risks filings which earnings company’s and set risk quarterly Exchange and quarter our forth factors described and most XXXX the Tuesday, recent in was Commission. are August Securities release, released on forward-looking made Green update no duty undertakes to any are statements Brick that call. this Partners during

comments call now be financial that required by our on include release information the G these regarding addition, non-GAAP Regulation in would other reconciliation can the presentation metrics Green the metrics. turn of CEO, like Brickman. metrics earnings Green the the to available to ahead, issued the I website. Brick sir. Brick’s company’s yesterday conference will Jim In found over these go and The in Please

Jim Brickman

our Jed Thank Rick Thank everyone. and our Dolson, for COO. Hi, joining you. With is call. me you CFO the Costello,

the investors Reporting webpage a Governance, on are call our At QX top the this. down Investor we be Second new click results you Presentation. return option on the few quarter, to returns then all-time that earnings hit annualized see Brick’s presentation give team expect equity page until XXXX if scroll XX.X%. a greenbrickpartners.com. can effort of our Thanks With industry. & I the As that everybody accelerate. Quarter returns to today, a the provided Investors webpage the our accompanies the Green do on operator joining seconds says better, these the click great us some this of Call you phone and to our by on best mentioned, high Even found this of record will achieved we in at

Our trailing were increased total we basis. XX% QX homebuilding and QX, revenues on our revenues by $X.X doubled. billion a XX-month EPS to From

will year. We quarter be earnings continue continue each revenues to that grow confident this our sequentially and to

on markets on owned Our from XXX% our core and increase the development focus in in has year. dominant our resulted land the reputation and lots presence our controlled prior and

meet grow Our to land has units superior us housing to as ready capacity an to supply June a source of new astounding new XX, construction XXXX our allowed XX% provides and to under compared demand.

is available prices on Atlanta. quarter. homes Foundation margin demand, points gross This the by at least power quarter have basis for we reached XXX markets Our prior up this sales points as basis up Worth from first In our order pricing Brick has Dallas-Fort XXX from Green to and our core and with paced in achieved rising limiting the XX.X% capitalize of those year the sale generally to Board. and Slab

the margins pace performance excess achieved costs. of this will and through have over on price focus financial believe remainder We price our in strong XXXX. sustain of also increases rising input leading We industry

opportunity register initiatives and to planning, division fielded our of a.m. prepared and stream X X more plan growth our operational call, to we Governance Daylight all our remarks our through & for option a Time in encourage in Investors driving p.m. strategy, to will capital event insights of results questions Central Please teams. provide and our we Investor Day today’s detailed webpage. also to section to this XX webcast quarter. flip from addition attendees provide The record event Slide this the presidents under XXXX call the Day the into on In This purchasing our will will the to unique Investor presentation.

brands broad We We are a the X this our brands. will segment markets, to and in Trophy and products entry rapidly level types that JENI of and of homebuyers expand growth to through stratification wide of diversified appeal of Signature continue array major a price building to with X product CB ranges. our expect with believe will continue a base

the Out under nation just per States, showed the Sunbelt highest this U.S. of same Colorado, states in states of revenues the ownership discussed are a generated in states we their years, population the Georgia Florida, winning years and builders XX% Colorado, is versus the the simpler Brick As for some XX increases million populations percentage top with past previous data. in and largest wholly Georgia Florida, of strategy. adjacent Texas led minority X with generated X Census of the XX% than markets, growth will X.X%. by seen as revenues under operates a XX seen these two prior our expanding in concentration benefit over only much population XX% total period, a that now decade subsidiaries, show owned significant line by population positive people XXXX and Slide evidence the growth structure our its grew which economic calls, is ago. interest. population from in our approximately We the Texas, demographic XX% operates while to from another decade. Green Green over the and and Sunbelt where United detail Brick next this strong X double-digit quantifies all explore in The the growth we resident in trends, slides. believe the are

economic Like many COVID-XX robust Slide in in year. year. every X, from population expect future strength highlight significant years decline in California to States in demographic demand generate to for more Sunbelt years. in Northeastern pandemic We will to states from the our the On led growth migration the country, a economy preserve we disruption strong profiles the created last that rise continue and the our listing and United and these and of present core will positive June seen in major a the early unemployment active in other of and prior markets the home activity commercial XXXX the housing

and However, Worth lowest achieving and side with this rates as on and Worth will remarkably these right the continue is XXXX. for Atlanta third Dallas-Fort resilient, our strong demographic a markets to sustain come. in lowest have core market force. economic on and the the the strong page, shown of in Dallas-Fort continue Atlanta and support It reinforce graph unemployment to years remained our strengths that housing job labor markets trends to We evident May believe demand

of Looking in side largest left of as remarkable active on homes. the respectively. booming the an listings listings and XX% our graph, is capitalize of XX-month largest had markets XX, in at has existing of demand down the Green XXXX shortages evidence drop XX% housing to you the the can This and the Atlanta listings in XX MSAs decline Brick the inventory XXXX and see Worth of pricing of June in Dallas-Fort with is power indicator

rising power in and Atlanta, communities of continued more markets between that believe well-positioned to imbalance than to or offset With DFW XXXX, active housing our Green costs. Green even Brick through persist our Brick succeed in we offset providing ending and supply demand XXXX in We XX% this pricing expect with is and to beyond.

best on XXXX in the now back further the April that Officer Executive and our the speak choice friendly that Dolson, seen growth business in and markets President high unemployment from believe our growth we will and position. continue to in focus demand from differentiate is Jed is correct greater that pro bounce strong detail peers. rapid Chief will uptick drivers Vice Additionally, land the proof our Operating Jed? and us to

Jed Dolson

Thanks, demonstrate X, an how our in we investment translated land increased generate line has to Jim. to Slide growth. top capacity On

a chart growth in been see strong and future convert land can revenue. you driver ability behind has to investments on from this our in slide, financial to our operational key results As the

continue inventory peers as controlled self-developed charged allow third-party to this During This the XX% of development for lots to owned believe one XX% all-time represent to land After year. total we at controlled under expect the end and XXXX, a of new start margins among land lots opportunity XX,XXX increase first company. these our current nearly and lots from be the avoid the by of company. high including profiles a We and by expensive premiums lots of land joint option X,XXX owned to option of increased developers. growth ventures, self-developed our best strong the is returns by Green our half lots, through and Brick’s on the should emphasis

where additional attractive For – Dallas-Fort those located. lot X submarkets of interested, of and are the Slide you provides Atlanta supply on our Dallas is who in detail Worth

of follow Slide Now, growth entry the you our and development, the roughly our X over in lots homebuilders will months, the all with our X pipeline communities under see complete well new development In and more highs shift one-third new starts. subsidiary under affordable established we hit submarkets. to me will this release communities several lots development lots development under new our With to trajectory meet years. lots market, land expect level – under X,XXX that to These to next XX towards quarter. and is next for housing in continued located the

delivery accelerate XX long-term growing should With to Slide lots year we our be land During by expect to units we Green year XXXX. lots our short-term confident finished year. Brick and construction. during are fiscal both ending met, of XXXX, through the fiscal under needs our X,XXX finishing highlights able continue

months the XX% over over and months. past construction are the under units Our X XX% past XX up

seen by price at unit our driven primarily in all our under the XX we during starts XX, months points, brand, June growth increased growth units Indian Trophy XXX% have by its our virtually brands ended XXXX. construction and was While which

larger rates we higher and unit density. continued the to As communities of absorption we go brand Trophy expansion with establish the forward, expect

Additionally, cost has these entry at our risk. focused level pivot been the increased on to of buyers larger communities not

continue leading – position Brick’s to business. a strength markets mitigate some of closings our profile of of in average XX% we a while land which For we our ratio exceeding we maintaining America QX very risk all in creditworthiness low conservative debt markets average best and with fundamental where the from feel achieving a fundings The industry demand buyers, we buyer score A Green saw with we home which for margins. operate, will of FICO of In the have our risk Ventures. for capital score will Mortgage a to of strong XXXX, per believe many of we summary, strong an is XXX data XXX, FICO

quarter second annual results our Next, in Rick detail. and discuss Costello, our more CFO will

Rick Costello

Thanks, Jed. Thank today results. you, everyone us XXXX review second our financial quarter to for joining

about Before remarkable to in-depth I established provides at for look I talk Slide of our growth quarter our for more June is a quarter provide at share some an of take results, Brick’s this the performance record detailed want well Green XXXX. XX, XX growth. our and Trophy metrics brand Trophy presentation look future how context second additional through

has see you on from this percentage closings for the in to XXXX our XX% grown by of can XXXX. XX% Trophy’s ended months As slide, X year June fiscal closings XX, year of full XX% home

trajectory However, our of Trophy growth XX% and runway clear to in has of a Dallas-Fort controlled year owned and related continue believe Trophy, XX% to we Worth. starts its with this our lots

will allocated controlled much and than more owned as longer the from ago, has to year shown nearly two a note communities lots that of with XX,XXX our important Trophy have XX, lots includes lots XXXX X,XXX nearly XXX% to it’s increased that a While lifecycle. each June

lots of XX% XX our So months. XX%, we than line share of the of faster X our growth explains excluding is higher these even capacity these than communities, two Trophy’s Trophy line brand home which why XX% presentation results Signature Trophy’s our our bottom existing believe deliveries the share results. scale is past has top still our of Slide to

our in are of able subsidiaries terms our with other community, requiring to we in absorption Trophy double to count. of expected community lot community growth per First, next be size increase the pace count without average year the

basis. XX% and purchase of This the Trophy’s consolidated This over seen has with returns. And points. utilization cycle allows Trophy XXX gross by months growth changes by XXX more no roughly in improvement of by increasing basis outsized an standard margin year-over-year its reduces last and margin average time during turnover our allowed. inventory financial efficient Second, business for basis on XXX for construction same model finally, stronger improvement allows exceeds points XXX% process points basis the orders XX our

Trophy’s through higher we combination strong SG&A SG&A of our better strong revenues. continued our leverage. higher home in continue growth shorter This by a make should invested continuation of returns leverage homes. home capital. shows times So, will XXXX higher of lower and our believe of Slide investment on the closings year-over-year and case margins, generate our cycle All these all, in enhanced of this profitability in is XX fundamentals Trophy high and Signature closings presentation levels

year. can new to XX months the closings closing last grew as grow related Jim of XX% mentioned continue remaining by revenues a that And the of normal remarkable the year-over-year. grew home On our our XX% this by closings XX%, grew volume believe revenues represents a basis, this in Quarter-over-quarter, earlier, XX%. closings while Green we further and grew our for Brick company quarters

looks and our the year-over-year net new revenue, to XX in Slide our Slide future backlog. at shows orders and historical XX pivots While increases closings our ending

Despite were that this of up construction buyer While schedules basis deliveries QX increases and significant to the taken for XX home company orders improve year-over-year, and increases metered price successfully were QX Consequently, just determine as expectations by price company, over XXXX orders new the better net not capture net demand we of our are last ability our orders net double home match orders. the on XX% home volatility. up sufficient price new X% to sales were net months limit new to during year. XXX%

spec sales homes months, something provided to basis under units now previous XXXX, pace last quarters which us our construction, absorption both by during our better three nearly XXX has sold of seen but X.X XX% spec under over peers, limit in ended result, the points at slab construction shift slowdown homes XX, X sales home haven’t quarter. our allowed record before, XX% to XX% a orders of XXXX months of ability up we of rate despite year. our that’s per a the months but sales almost XXXX new homes at during the is X the XX, a of to from average XXXX, homes a mix exceed quarter a new versus June XX, to months June selling but mix metered sales universally per we still X.X X% ended XX% at sales year-to-date June of during X ending ago below community backlog homes. beginning net of of with the XXX% small XXXX limiting XX, the absorption XX% ended per March prior, level is Likewise, ago sequentially The far align by XX, up only X X least the and months X X.X record home community have rate during This we Like and homes homes closing deliver as and spec from of respectively. poured. June many year As the number decline years ‘XX that the of the the the saw QX is as

better risk homes costs. We higher year. and higher normalize will a of are mix construction and we will level specs. month. this drive spec mix so construction think versus improving margins quarter less total We are our levels have homes our to each as homes back Prices pace rising for and to sale well of of our holding versus we pre-sold continue under Bottom every volumes returns backlog lead of backlog as backlog and closing successive line, we our

the and us position this should on construction superior margin increased level flow selling X completion a is gross us X strength expected under making our a this to Managing and better or The ahead. selling get than units decisions of type will a X capital. months spec all months to margin return capture of sales some houses higher contribute houses like before prices. So, to corporate return

margin Now, points XXXX XXX basis up gross basis Q-over-Q. XX XXX was was QX adjusted of highlights. gross from to margins up Adjusted points QX. financial over basis let’s Sequentially, margin were move up ‘XX for our QX to and gross points Slide XXX related

gross year homebuilding ended points points adjusted the For XXX months the and from and up homebuilding gross June same margin period. XXX margin X basis basis XX, respectively were XXXX, prior

gross is to growth next year-over-year robust future backlog Our power see of in margin our strong over to expected ending we the continue quarters translate as closings. the two benefits pricing in

down expense XXX the at leverage, quarter our X.X% SG&A operating XX.X%. at for points to prior was QX basis ‘XX of year Turning with

from year. was SG&A XXX of ratio to points XX.X% XX.X% total down revenues prior expense for QX year-to-date basis Our the of

So, through improve. leverage to and to this of remainder full year, the year revenues with expected we quarterly increasing expect top line continue operating

Our XX% interest of XXXX, for our while prior coverage of ‘XX for ‘XX higher QX, XX% same represents the year-to-date growth QX interest coverage over at was period. year XX.Xx QX XX.Xx than

clearly strong our generate demonstrates Our our interest positive cash well flow capacity needs. coverage to above

line, a XX% EPS doubling of Now, any this from was is record a in QX over our of $X.XX the and diluted for $X.XX XXXX represents QX sequentially of year. QX XXXX and bottom quarter increase

For our prior up XX% $X.XX June period. diluted the EPS from months the X ended of year XX, was

prior recall QX $X.X a – energy from XXXX, million benefited will tax Now, related last of we benefit if of tax credits tax from years. QX to year open you during

XX% are debt second And low So, to need get of leverage, our average pre-tax Pre-tax to we grew book net earlier, ‘XX quarter Jim quarter. referred in on peer remarkable. operational really margins ‘XX return which with the equity, our basis QX better our income at with performance, available we where improvement reach risk sense our of points XXX data. QX XXXX. income. grew of our to an look over our income a presentation annualized in to gross outstanding XX move returns compare our Please adjusted to truly Combined this Slide income XX.X%

was as This and our of year-to-date. remainder conservative during is our best business, evidence and to is experience well and XXXX operating margin chart demonstrates among planning. that land for our has the that superior industry. scale in is we manage prepared reported us beyond. strategy gross efficiencies the underwriting, Our the margin believe and XX.X% price We pace our the prudent winning XX.X% This quarter performance of a

as the demonstrates XXXX we visually XX realize segments. to sequentially We grown by margin to backlog price continue our expect closings. on that continue through our appreciation provided homebuyer gross future Slide several revenues during rise to earnings we have stable in and strong concentrating

the Fast For revenues. more XX, and significant revenue year. which June ended XX% XXXX, X X months two for X forward and segments, years we the than X segments experienced strong X years ago, of customer growth in months first address our now all of distinct accounted the

time For XXXX, they increase home just an revenues, segment represent combined closings our the to segment, XX% move-up home X points revenues. ended first X,XXX closings plus represent months of now XX, combined June our over to of XX% ago when years X entry-level of basis

affordable of Now was more of reallocation capital through brand. Trophy the intentional inventory Signature this created our expansion Homes our to

entry demand. should Green of turn greater which the housing an portion to XXXX, Slide Please remainder we in position believe expect Brick to We our to today’s capture segment continue to level XX. expand of even

adjusted we and Here uniquely demonstrate strong. returns believe that compared peers risk we versus small to and are growth our why our performance mid-cap our have

months in a time, other June debt X to nearest and or revenues, is capital and XX, XXXX ended the XXXX. have margin return and pre-tax We June covered growth is measures. XX, which percentage, on the lots as controlled provided period, coverage, income measures the in in owned the homebuilding XX of point measure growth capital gross invested X interest of

Brick to the of for near Green perform of With Green continues of group. results Brick’s these each at or peer the top strength metrics, our

as In fact, earlier. we exceed peers margins our gross even of some high large the cap discussed

we supply, peer in land and when to leading consider homebuilding expect has our alone. more of during capital with returns the the balance for are growth on $XXX included million balance sequential additionally in returns Our elevate year second lot revenues which lots this even capital the impressive the expected of the on year. growth of during continuing of income And our investment of acquisitions you quarter XXXX,

turn of leverage. on record-setting Lastly, XX, were to maintaining will We again, the builders, capital cap please reminding at who to opening the funding Jim? debt prior our Slide slides, among land and lowest our million quarter. able while things back to part focuses on up mid lower call of you Q&A. which for and acquisitions during lock ratios the the results, up $XXX financial achieve to now small look cap of our call wrap while will the I one Jim

Jim Brickman

Okay. Thanks, Rick.

of results new our and and event Virtual our QX will go turn story the of I remarkable to to in story, company’s under swiftly click Our exceed and will for back highs the each work team. record now register, Green will Green in line by materially step our the we returns you this Inaugural this are understand quarter please XXXX quarter hope We a.m. that tomorrow for for Investor to this critical Day & and point into inflection growth line unrivaled are prospects corporate adjusted attend. subsidiary XXXX achieved industry. call Green the we diligent Brick able are combination Governance. new the questions. believe results the growth operational to-date, impressive website our be To outstanding believe years this $X just moves builders Investors in operator planning you noon our better each We our truly join has to results as first Brick’s invite bottom X Investor the of how risk financial achieved Brick’s in our Time. to revenues hard provide from Central quarter, Day and this company continued to To us and billion With of growth believe Daylight year. reaching the top insight

Operator

Please proceed with with is question first our And your from JPMorgan. Michael Instructions] question. Rehaut [Operator

Maggie Wellborn

Maggie on taking questions. Mike. is for for Thanks my this Hi,

you I elevated into thinking would how more normalized of year dig year. next going quarters starts more thing are this see this of for the bit remainder pace do a into also, absorption, you at towards the of got pivot half communities increases. of look higher construction. have increased the under forward. you got Trophy mix back competing the But of like And first a homes have as the starts that year, the levels, as kind and have the sales you to about of little the you also three with price you got spec The After

talk of So, quarters? should as how about of the those about can or you quarter we think kind we balance factors, all next two

Jim Brickman

bit Yes. And than and And on and having we chime really, But starts. Jim Jed is little can normalized this normalized. Rick it’s a in are this. more

are to – particularly Trophy complete the going starts, grow in We brand.

strong seeing very are still We demand.

how intentionally for buyers. don’t of is, a delayed strong selling options investors understand lot there. aren’t some really going really we demand we know There have home be think that homes, that I because is and demand to

considered Atlanta, we community sales that X,XXX We XX for show community have big opening lot we like interest is And an up even example, haven’t people a in had community. for one yet. really not that on

a like So, It’s in no would And that’s indicators is why examples environment probably have taken whole a of community have capture higher The to could lot point is there And community. in have lot the that. We not no inflationary doing strong. orders. that a road. demand cost down make we is like that. there that But we a pre-sold margins we have time of very product point long me entitle. in we And an pre-selling this. took

Maggie Wellborn

Got it.

Jed Dolson

on continue little to a that just Maggie Also bit.

quarter point have that’s getting some as There ticked Horton meter to builders their D.R. spec to they was fewer have similar homes who started up are out this fewer a as spec, there and And We what of percentage X%, from basis do. to well. what XXX very not they XX% XX%. did increase sales. are

certainty they not model can’t number is such customers tell when closing. We homes. on money table. our based are a backlog on going Our to with We leave the large of having be

price by are in out We process increases. potential earlier we are selling the losing on

seek get So a going to of to as of it a want the our closing – to go for those of we lot year. back what we be Yes, still this down half construction are as have to in levels. we we backlog got But under us, houses some. portion back

Maggie Wellborn

you. of continue see prices how an And much more update for if And more second could think give ASP Okay. you where looking idea much the raised during you And you runway prices quarter. forward, have on pricing, you before kind Thank us raising how also, you up? to might end some year pushback? to maybe the on start any give think could of you you

Jim Brickman

Jed, you this process. manage take that since

Jed Dolson

per raising a on We to monthly community per month. X% been Sure. basis, we varying, have prices, X%

in excited business input of past to the But our very do have the provide lumber still cost about an really product think cases, we very seen $XX,XXX lumber consumer. that thing I is how want one doing fall we are the some are we packs excited months. but because we the and dramatically what affordable side In is falling. about two is not price to raising,

still is there to for think some fall. we that So, room

to going excited We that and margins should about are lead increased that forward.

Maggie Wellborn

it Got it. sneak more if could in there. one And I

improved I think mentioned company? are gross the you margins basis, quarter. versus an the that the Trophy’s where above company But of on rest the margins, for Trophy’s absolute average

Rick Costello

as geography, We by We We give as came don’t, know. most we don’t or don’t about information by this we we margins in market typically give gave the started the be about guidance guidance. don’t touch But better. close as you giving call to brand to gross has disclose that paying or Maggie, can we many Hopefully, on so areas margins. geography. gross year expect attention that telling to we the the rest of by that. brand

Maggie Wellborn

you. Thank Okay.

Operator

question. Alex your And from B. our is with with Please next proceed question Rygiel Riley.

Alex Rygiel

of the very then So should of into backside other building nice the expense lumber of curve? when When think are to And quarter your might lumber the of building materials or you. back peak goes about a understanding down. earlier costs costs, see questions, one third talking right about that little through therefore, going Thank sort of sort And is Is circling products the P&L? we gentlemen, that later in that? has quarter? we now the for all how we on bit that material come

Jim Brickman

number we part Jed that am able, than like We going markets. being neighborhoods the the conference a third quarter, pass quarter see we within chime how quickly. that they don’t strong going are calls on. and reacting lagging were to have markets prices those went really later. margin question. to costs third our of think of I quarter concerned affect effect about read because take in are able quarter fourth very Where up, and fourth to strong I more were other would lumber and have of costs in raise We I Okay. where degradation in very able are margins. and I lumber quickly people to to the

in so third And quarter and seeing are that this we the quarter not fourth year.

Purchasing call is In Day. Jack hope building everyone costs, Investor He in Wilkins our on this that town. our Director. attend terms I of is National material really can

of But you that. in But what can Investor get nutshell, the Day. at we this still of agents really And process terms doing we operating minefield who are And think well. are constraints. purchasing a our tomorrow the have are and to expect managed All granular see the it’s a meet in that Day, going purchasing business. people we there going be supply out how a very on and you to bottlenecks we look our really on Investor are to in

Alex Rygiel

talk the your strategy? That’s to little sales, sales great. term, longer in land land about then over obviously, ticked you quarter. bit And turning a intermediate Can up

Jim Brickman

I had this of year. that sold a large a But retail we lot site want with? were left to business chime and month you of have bit little it want Jed on a an And we many multifamily – multifamily developer, this. in Sure. institutional a site transaction. we done lots with. And to odd that And was We we how a were one

Jed Dolson

XXX.

Jim Brickman

after We made that. on nice lots, the XXX sales. gain a

still left with is taking lots that these XXX need business done have nice to people. communicate what land We with And despite these were to we profit. a that investors

our these should Our basis than produce higher homes producing already. lots these values, is today’s in company margins on

we So, multifamily sell off into we on have you don’t situation a to we retail parcel on We lots. we may we But uses, them opportunity don’t anything? really unique coordinate selling that. do because really the do left. a where a more any plan where or plan Jed have will come anymore large don’t selling

Jed Dolson

additional No comments.

Alex Rygiel

helpful. you. very It’s Thank

Operator

from with Management. [Operator Please our Capital is Tieton question. Dezellem Instructions] proceed next And with your Bill question

Bill Dezellem

from really home you. ignorance the of a all sales, an to know XXX new orders a of am allow. you that’s I amazing questions about Great. Thank but on limiting being here, in you second quarter. fall point quarter? new I about talk Can of X,XXX first ask down couple Congratulations have if And will home going orders in the quite dramatic quarter from a the the you talked first off.

Jim Brickman

to going great end think It they Yes. be when investors is said, to fall seeing our we pleased the results because are that year it of an very we demand. strategy, X,XXX. off. And fall make doesn’t I the And off. intentional sense are as see a sell of the was at it But

Let’s we is X% X% margin when harvest sense sold greater doesn’t there, say make say. when to can price delaying see could by let’s X,XXX or it X,XXX, environment we sell sales we homes, can in But we that rising a process. have – demand

Jed Dolson

and is does first it the are the we price until deals wait we closed delivery. until X,XXX than in the add that would even But double. is builder. we have later a Where if on to process, customers. really all in we construction Bill, that backlog quarter, That’s if which our XXX. gotten and be is our business, out wait And in more process, just sold houses further in more increases our to not typical along later to passed our backlog

visibility to to to on the going control actually customers to better they dates better to ability So, it’s our It’s are margins. of to going going better the close. lead give construction lead our and

Jim Brickman

are we a of customer with processing. the a cycle times it’s because And we during relatively not homes started a improved lot dealing this

Bill Dezellem

That’s helpful.

is doing you a talking are in doing, the So you not what you been call, that essentially, only highlights about point dramatic the but it that are way. this have on data

Jim Brickman

Yes.

Bill Dezellem

having a is When point down growing are from you Okay. and Thank do Again, the first? this accomplish in backlog versus earnings of One How sequentially? more you. revenues anticipate question. or the ignorance. units see, start the

Jed Dolson

QX QX, quarter we XXX in mean deliveries. three quarters over strong very these year, starts not seen for that row. X,XXX have for had were last per a We starts really QX. And we of I including level closings,

Jim Brickman

under most the have homes We construction. build

by have I considerable margin. think ever we had, a

the investors really that’s not that of think I fully things one comprehending. are

Bill Dezellem

identified one other out. a the that starts noticed that things four as the high under quarters have And is you construction units at trailing pointed as are record or is we

just quarters attention we paying any more the individual? should to one than So, four trailing start be

Jim Brickman

so Many to risk with demand a and we strong of completed we sell, we not trailing and two want of current homes, to we are of prices margin homes, so and to have you have up context think before those today. to pre-sale. get house put startups can’t. more the months pick remained quarters, said was a didn’t spec we we lot think in than trying those what at intentional. more in actually are trying still start they we I but would And as because of sell because supply these four because selling the the just bottlenecks, rather has to can And it

Bill Dezellem

are on and again Well managing you. understand done. the us quarter helping puzzle. the Congratulations you pieces Thank how a for great of

Jim Brickman

Bill. you, Thank

Operator

for call we have end turn And session. now will over the remarks. of closing the question-and-answer to management reached I the

Jim Brickman

reminder, useful sign And on joining And today. of information. you website and will page everybody lot the go a investor tomorrow’s and up call I thank for you. again, to I find please our Investor Day. for think our Thank

Green Brick Partners (GRBK) 4 Aug 212021 Q2 Earnings call transcript