GRBK - Earnings call transcript Q2 2022 | Green Brick Partners, Inc.

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Operator

Good afternoon and welcome to Green Brick's Partners Earnings Call for the Second Quarter Ended June 30th, 2022.

Following today's remarks, we will hold a question -- a Q&A session.

As a reminder, this call is being recorded. And will be available for playback.

In addition, a presentation will accompany today's Webcast and is available on the company's website, at investors.greenbrickpartners.com.

call Rick Jim and Costello, Chief Officer. the Chief Co-Founder Jed on Operating Officer; Executive Chief us today Brickman, is and Dolson Joining Financial Officer;

as including discussed XXXX its for beyond. future August may from has company In of and differ call Some detailed operational release and on its press results company's filings obligation the financial and no to and information is of statements XXXX expectations. cause forward-looking the SEC release it With make. Regulation the yesterday's to the material company's metrics. Brickman. by the expectations that and are this Xrd The the that, and yesterday risks statements company website. forward-looking any presentation company non-GAAP these call turn other over include the comments G financial can update on issued reconciliation metrics that of the the may company's earnings in I The be required also available Jim now found information will The the in to

Jim Brickman

Thank you. another outstanding share quarter. to We're of results pleased

a labor quarter for we revenues homes supply record margin XXX generated delivered homebuilding and XX.X%, record, and a a total gross of despite second $XXX chain record quarter quarterly achieved environment. of any the million challenging During

XXX%. is with any share The milestone a I'm we that team. results not compare without hard-working take even to the homebuilding a also some this excited and This better Brick talented As representing XXX peers We is joined generating a and $X.XX of on a among per in has quarterly was a in equity the of record a diluted returns size. encourage you annualized a our record of of year-over-year company Green with result, key officially net return our the SmallCap generated July. quarter metrics of operating EPS share, of million to track $XXX income in or best growth possible our any S&P that to an time peers rate XX.X%.

Brick positioned highlights. today, Rick During succeed capital is color the a well seeing our will in And would why call are markets XXXX discuss the like our we housing supply environment. and Jed what chain as our lastly, to Green allocation some to provide QX changing that on as I strategy. in will discuss updates believe well we rapidly on

short-term the interest records the believe the that markets While in long in Fed due floor is to after here Fed's the happened market and continue broke the rate Fed many over XXX May by metrics financial of as aggressive funds seeking This half our basis the to a July single-family inflationary operational see stay in quarter a second hikes we that rate moderation choppy still pressures. to points and key horizon. the market performance quarter. XXth. accelerated on for rate demand Despite equilibrium the from second see new The we began what multiple over to hikes by sales to homes for Xst we is our

reasons. few a Here are

of X presentation XX million their four years. slide ages the of homebuilding and between on the First, prime over entering XX millennials are

is For discretionary them, a a many not buying purchase. of house

for future in of not doubles institutional large that exist a of homeownership housing a On the stability buyers marriage unique the space build that, ecosystem their created the during sector housing believe for will alone rate. group did provide and and housing bubble. In We fact flooded top amount the rent market. more capital homebuyers build-to-rent to of

remains XXXX the near is historical even adjustments inventory financial Next new in the crisis a for homes chart to housing the of of compared and or slide fraction on seen and existing X, great supply the the supply inventory lows and today XXXX.

second the quarter ended Brick spec Green XX with we finished only For homes. specifically,

While reductions believe future XXXX. should we in single-family that store supply recent mitigate expected starts the home increase the decline months, in housing will in inventory coming sale the a over of buildup of

to major growth, slide while supply, Lastly the complicates families. US first-time limited rental X age, seeing as to at and This prices urgency double-digit the will only in versus are the rent due cities occupancy levels. form house whose they housing high as buy homebuyers first decision seen marry among on further remains purchase grow

weak to over evolving housing to business X. Chamber To needs rate tailwinds, as those to in shift experienced long country. we higher and economy shown and activity expansions our will the over the has environment is believe on of in with XXXX. navigate haul. a tremendous Brick companies the the long-term positioned last office the According that resilience best begin a relocations DFW XX announced we growth continue this In XXX of believe a biggest will exhibit or addition the in have months. Green markets Commerce DFW, more in Demographic markets market migration some strategically slide in into operate and booming We over area XXXX economy. into in our Dallas translating

neighborhood, supply-constrained in regulatory units an demonstration development Atlanta of is entitlement, and closed in development multifamily a typically North and strong Second, upcoming and competition. XX% limited to ability processes. lot Development requires residential complicated the submarkets we our and locations. and primarily The a markets mixed-use in build of infill to our local in from lot manage were neighborhood infill excellent year-to-date address very locations. expertise constrained suburbs Those complicated recognized submarkets revenues and knowledge Over which submarkets. pipeline those retail growth within those land XXX-unit generated face our we successfully are XXXX our more navigate of

year-to-date per been stock on through of price Among at one growth Third, average total public in we went the our a sheet strong purchases. despite XXXX, $XX lowest have to July XX.X% had we $XXX balance of focused we peers, and share. since maintaining capital business purchasing debt aggressive an at under stock significant despite of million ratios

always total is rate. fixed XX% represents the our at rate Further, At of June average balance of outstanding we a in to the Fourth, one of believe growth. almost only shares Together we of end growth of with are and quarter, outstanding business in accretive XX% value. of debt XXXX. our positions long-term sheet, weighted and strong future end XX, the interest was repurchases will second best position the as that's of Our stay our that X.X%. XXXX lot our shareholder manage had support our we've opportunistic a way a to

we our over have Rick? incrementally over inception, look that, we'll now operations continue office homebuilding and and turn it With Rick. since time Lastly, I'll for to our improved to to increase efficiency. back ways

Rick Costello

Thank Please X of to you, turn Jim. slide the presentation.

in Our total XXXX XX% to QX revenues year-over-year increased million. $XXX

record driven million Our residential XX% increased revenue closing to ASPs. in year-over-year volume units $XXX by

we the $XXX,XXX. During XXX homes quarter, and climbed for XX% a year-over-year delivered increase year-over-year to XX% ASPs

make on good strides We efficiency. operating to continue

year-over-year revenue our points ratio basis XXX a led of year-over-year highest points margin gross XXX during gross leverage company to our basis increased by history. a low in SG&A Our X.X% improvement the to quarter. in points. improved homebuilding Sequentially, XXX basis residential second margin to the record higher units And XX.X%,

our performance EPS up our result the chart. growth gross mid-cap on quarter, margin Sequentially, have both demonstrated revenue XX% and a margin we In gross second and second chart improvement peers. tops margin consistently of comparative demonstrated EPS growth XXX% the in Diluted in X, As versus on slide superior the was year-over-year on to revenues. bar total as SG&A $X.XX during a quarter in leverage. grew and the small-cap XX%

last XX.X% equity annualized compared return year-to-date year. XX% on as was to Our

July. we earlier, mentioned DFW. started continued discouraged into Jim As a buyers in to accelerated in also slowdown traffic heat our from homes visiting Record-breaking which has June model and see in

net result, orders a new X.X% As year-over-year. freezed

X.X sold during X.X% per average year-over-year our was to the However, homes community. active quarter rate absorption up second selling

ticked to lower second cancellation month and up during the rate many than cancellation peers. our the still quarter XX.X%, Our of increased which each rate quarter overall is

in industry that we XX% range appropriate a to last our a larger put eight money cancellation We rate quality the for of consistently cancellation on has rate prior higher is quarters, the require. varied perspective, XX% topic and believe the buyer in cancellation is and To environment XX.X%. normal of in we amount between lower the that X.X% stated COVID. based rate our earnest the have During to

had As backlog to one, in end of decline $XXX half increase second in of June number the second the decreased moderation an units to The in offset million. compared ASP end was year. quarter. of X,XXX of $XXX,XXX resulting year-over-year June, a backlog XX.X% of X,XXX in homes $XXX,XXX homes partially a the the during units and backlog total of in second homes units ASP the quarter; the at Backlog with by due two, of of of ASP demand backlog of closing we record last an with a XX%

XX% by XXXX We Spec under year expect XXXX. as construction total to of or QX current to the QX rose last our of backlog majority of close from units XX% end of XXXX. under end of the units the construction

is of can home under to forego delivery first-time interest While within that and to portion our where believe known. process buyers months a a slightly We buy units range, two rate home level the our be can be willing spec now buyers higher our represents higher delivered Trophy than brand this the date contract many historic construction. after are mortgage selection

proportion our of result Trophy's than a a As brands. contemplates higher business model spec other units

a find as remainder balance which home priorities for good and our shortly. units many spec pace start as backlog our will over it is Jed? turn prices, to between manage year that, to expand on well With of of I'll Jed. One to and sales pace, the the Jed

Jed Dolson

inflation, These for we better rates, slide on and are summarized several priorities our XX. Thank that laser-focused Green volatile high performance you, closely believe and demand, drive operation will we on Rick. are monitoring With Brick. key priorities lumpy are

continue will of closings manage we First, our backlog. to

quarter debt-to-income are of XXX mortgage of of an score XX% second and our year-to-date through buyers partners home our buyers. the Approximately a average During XX.X%. company first-time at credit buyers ratio

remain We rate over with or high. expect who third Currently, our consistently buyer locked scheduled to our companies close quarter quality are When our mortgage their buyers are necessary, utilizing companies rate in to and assisting have through securing financing of are buyers our buydowns. the rates. mortgage our locks XX% in we

affordable transfer earlier, second featuring secure to footage to mortgage financing more more some disqualifications. to XX.X% close. due square homes, to in buyers less went quarter, were to able the mentioned and during cancellation order In primarily we instances, Rick other them for As our rate the up

sales to to basis moderate foot get price To an June flow. Second, seek pace cuts, we community-by-community as July, incentives and will in we approximately These a in incentives buybacks. new slowdown rate included for even offer credits orders signed of counter costs, and a towards starts combination which averaged and on X%. we continue manage our a traffic, closing

construction of allow optional features. stages in some personalization earlier to communities are Additionally, we selling at of

Given lead not our flexibility aggressive market we industry-leading to be we our incentives gross we intend believe position, markets the more That downward. to on required have rate. the do margin of said,

focus on Third we managing capital continue allocation to prudently.

We due edge on will land fortunate allows basis have We us also to us believe give are an attractive current opportunistic. be to market. book today the great that a to relative it margin to cost

company Additionally peers we at we when versus margins We an achieving we our where self-develop advantage and diligent provided generate and to in of land believe destiny ensure capital most of being an lots, will long-term and more even efficient which dates. conservative and has the with that invest and own us only opportunities shareholders. capital and want We've look been we value cautious underwriting controlling our delivery exceptional we're now. level for are

Last, in to Our to fundamental remain We continue intend on example. bullish strengthening we start balance construction long-term its are has track excellent Austin sheet. in been backdrops and XXXX. early an expansion our in

manage sheet changing have strong a today, a to in flexibility us We environment. our more business balance providing

the markets chain. switch Let's supply gears and labor to

relief we're and seeing of in the labor As new trade markets. slow down, starts signs some

example last for we from weeks during an more inquiries crews. For number have increased more have the subcontractors available several work of seen they as

at months, the as to well-trained decelerate front power with also professionals, this coming but times. with pricing are the housing if close The in the but point chain we or construction we at believe seeing remains disruptive cycle used end believe for the see shift and more inflection remains process. finding market we will expect. The starts tight primarily are labor an of lumpy, subcontractors supply We we we

for in this a we in With Jim year processes costs, over turn a Worth tailwind in it believe that we remarks. XXXX home see lumber as technology and and pass position Jim? start position to through With late our largest reflected to builder to those times. I persons in costs great prices decreased into to future Dallas-Fort As [ph]. prices lower the as margin cycle from place, improved and are closing the will we and will that, third our manage the

Jim Brickman

infill In and Jed. sheet, marketplace. offensive efficient allocation, closing, capital be defensive I will you, operations Thank superior we land balance like Green strong positioned locations, in our would to believe team. allow to normalizing thank a Brick our and disciplined entire us

is business We an Green to remain to prepared This in for in creating our company. believe to a value and remarks. housing of manage Brick looking we strength landscape. our forward, concludes focused Going better ways evolving on shareholder continue build a position

now will the open line We for questions.

Operator

line Rygiel Instructions] comes from [Operator of Riley. Your first question the B. you. Thank Alex with

open. line Your now is

Alex Rygiel

quarter. Very morning, Good gentlemen. you. nice Thank

you when new plans flexibility Can discuss longer for are You've possibly to average got number a of in altering those buyer a large that need here. under accommodate is a price? homes your time a a in selling bit orders softening at very construction

Jim Brickman

than move-up we Jed I supply impact our going infill to in first-time of is that This really now pricing out as is the that can from generated of on Jim Alex. revenues and entry buyer Yes, trying really a demand is more Brickman, But competitive dependent our bit figure this. talk how is and XX% being elastic less builder you Alex, in other buyer. about call is first-time everybody how markets. little or level about brands. first-time still and are to chime noted after right Trophy constrained our

anything now those think we add really to do it's right of just going And is to about into visibility be have good want Jed, that level markets. spotty in to buyer. It's going taking don't really right what feel improve have place to and lot not entry sure. that? we a So time now you we but first very you we're

Jed Dolson

don't Jim the what per A A echo just locations, said a the would locations of I neighborhood. in we ton have lots

we're accordingly. philosophy lots are sales think hard new in we're at/or and very community, And adjust will ASPs some of shoots up bunch replace. to green below the first-time seeing impossible at prices possibly coming neighborhoods then we we So near below or the Oftentimes opening the buyer will entry-level months those be a in to -- of low the where XXX,XXX.

forward. to good bring an product affordable So about we able feel being going

Alex Rygiel

what so try pressure have on one some of price model be then margins if to challenges any And that the Excellent. of could from gross we incentives is of Brick's on back to And if gross back forecast into XXXX, and kind history and these discounts level in margins when I forth. from and Green didn't level decline the a then. moderated. XX% back demand so did follow company to XX% we look and a

in that dynamics I'm maybe looking how next the in So be for you different? and of months better to the out understanding of that XX some that XXXX caused a margin played could erosion gross

Jim Brickman

around. time of this question. differences There lot a Yeah. Good are

in XXXX, and chunk replacing margins inexpensive off down of whole of the We're those very lots our lots. XXXX one of XXXX, high-margin First very went lots had we we purchased burned was lots. most reasons those in a with self-developed all our of of business and were the

So that part of erosion. for the was reason margin

experienced four better margin the forward. were book years XXXX than you're we so really The better. like running like, very ago. second that is going or just just purchasing on because a and since And that, is we running in worked our back-office think we hard our degradation four national component going accounts years, don't see company today were we have really And great those big much operations. I This XX% XXXX have to anything business we in to lot

Alex Rygiel

you very Thank Excellent. much.

Operator

comes of with question the Reichardt next line BTIG. Your Carl from

open. Your line is now

Carl Reichardt

Thanks everybody.

your little You've hearing about you ahead current talked a your are to ramps, of holding back? think with from about speed full decision that Is about we're still impact little others. bit some communities? Jed open a Can or starts slowing talk conditions those how it starting you might to bit new

Jed Dolson

set about No. after We're Many the them We're full bought, right COVID steam ahead. were excited of in. coming communities. new

at lower those costs, were very majority they cost land the communities. for So bought of base. is development much were This the attractive

them buyers. So about geared community. entry-level are new where We're -- most extremely toward the of excited

Carl Reichardt

how How Jim, potential Jed. the I here, number seeing change on your market XX% market. that knowing got focused on your process is the lot and own And those I'm yours? you more you the and who position your then option Okay. position you're of their pricing with to option. folks, talked of Thanks, how contrast hard profile you've are and low And lots know where to a about sort the are that seeing position you have in do interested relatively compared times a versus of basis, owned you're in risk sits of, lots versus work getting the

Jim Brickman

to play It's going to watch question. Interesting out. really be this interesting

that I Street, they're -- magically at make smartest the In think land are expense. land-light for oversimplified all, that sudden first the this model, all a really of room allowing provide that their of in not financing land of Wall bankers has money people model. this and just builders the at some

requirement a lots. prices very And lots number where they're So for land that two, any wholesale one. have is is banker. paying our these builders Number builder of not lots, goes That's buy paying high land-light, capital a cost on for that retail to has a these lots. takedown prices

these in escalators and price lots, price lots. X% be don't land-light slowing in lots balance slowdown their are investors is, Number "Oh three now in lots retail economy, builders of taking that an their sheet. I think on we're going -- economic said, putting to have So that many understand a down

on X% a XX%, money to land-light putting to we're at they down year. walk expensive would time have in this options. can, they So that good next Fourth are Well is, are expensive same today, most a of from deals can be first deposit builders taking -- from. lost point they gosh the lot that going that's lot more away as their retail away lots earnest proposition really lot walk very of the price but

going a have But out land-light we're ball, balance next really that to say real over the they're position can some crystal them going I I think that, bought don't to is a in to how lots strong about putting I price be on at year. the sheet. this So, guys, a relative very high work

Carl Reichardt

Jim. Thanks,

You have you might sounded didn't did or prepared it? that like speed anything It have.

you If don't if mind, we…

Jim Brickman

been to talk about about I've No, call. for the this wanting XX last conference

Carl Reichardt

I you, if substantial one in Well, the this was particular quarter last in squeeze stock at to for amount me on more have more bought was repurchase. don't us. over in, back which of share you obviously, a to least the one mind And surprise you

how to I Can will $XX capital particularly You of that, million sort getting dollars that, through think look continue the on authorization. potential investing have that other of, buybacks price uses though those left more you million, And once you -- about even you is $XX assume you're lots that substantially buybacks. then have? to the compared and average than higher do developing you'll the at that

Jim Brickman

the I'm of not builders than excited everything the things growing are the time the growing been all, of over going we be next is that aggressively the first the stock. Well, I as look land, to about months. And ever XX have all more opportunities one buying revenues of a really in business, buying probably in at past way

that I want haven't that may private probably last don't market GHO, the private job the buying we did to think ago builders into just year much builders more see for competitive because to more have a and possibly in that year the I see since a we reserve we years great we're capital be going going to really bought the next a and seen attractive five but landscape year. I sold before, potential it's think going XXXX, sector acquisition opportunities and

Carl Reichardt

much. so it, guys. you Thank Appreciate

Operator

Your with next Wedbush Securities. comes Jay from question McCanless

Your open. line is now

Jay McCanless

for Good my Thanks morning, taking questions. everyone.

you comment your hear to maybe the inflection down in an encouraged about supply I'm Jed, chain. that? dial on Could So

Jed Dolson

yards I land inventories on very It's Yes goes pipe water able still line expensive. as prices being water increase. I'm as point to an the think comes it's ranging. We eventually because lines side being a that all manufactured. wide enough excess mean the – using from that big aren't come hold as example just there get sure. will that needed. when It the development to suppliers X-inch down

using seeing that but now. as case and just right time that So again study time one I'm again we're

there supply are chain So better items much we're but some hard that today. get to are still seeing

Jay McCanless

vertical Okay. And when construction? they'll be on

Jed Dolson

it's – are mean instances that for set Yes the said Those the get. seeing some I I because use you we hard enter. like punch your could chips. same any smart are in we're for to code that coils thing be that door still mean Those ones HVAC were locks to

been at everything it's last So of even we're cured not or but shape than much has year. year better time this were this the we in much, start

Jay McCanless

for Great. it this the versus order in and decline or Dallas look And core at did both more talk about you markets, geographic your I differences them Atlanta, then pronounced areas equally, mean suffer two was others? of certain could in I quarter, that? when

Jim Brickman

a a every take sales we report our neighborhood really you on don't that get look foreign daily on Rick, at this markets. We in why house basis. in Jed, or every

why take the Rick, and Jed rest you the of So question? don't

Jed Dolson

quarter. seen universal and look -- When our pointed We've we market now be in winter, in we of as the kind within sales Austin. opening we the we out the half a up decline Texas this Dallas at second are release of in we'll the in talked

us parts Florida demand the the over smaller yes, of Atlanta still And see the state, can you, – example. we much storm years. do seeing the So we of better of the Texas strong much companies I tell our Florida. and declines to and than than other other is and weathering across talked Dallas peers division been our smaller for and mortgage in has state parts that business for a

again months. like really our as where before months we is really and has in XX our we're So land next Jim book about the to business out of basis like excited And pointed book. we -- our XX we

Rick Costello

is Jay. Hey, Rick. This

going One was interest of were rate there then we're back happening and from had then. we keenly sales accumulation you of getting This metering But just XXXX-XXXX and couple lighter quarter, us difference create terms back -- on very worth have of the And months' the a basis. B, sales. position the back is much is multiple aware through lighter going of worth backlog; not pipe XX for short-term is spike sales reasons of inventory a the end low an were of huge of because sales finished era that to metering months the period coming a when recent phenomenon we things not because the that units of have the as yes, in A, of sales. to for simply there's we a what two

see, when that to adjustment inventory. we're do be conundrum to how no interested an interesting really an you going there's it's So have inventory

we're going the just margins and certainly preferred the position. So we go well as to through But as in adjusting starting a very with best industry it. is be watching

Jim Brickman

And annual add that in in I to analysts homes continue the think example, rate. Rick, we are the generally to running were a in thing because though for XX,XXX-ish quarter did start expecting rate. start a XX,XXX first let at correct me builders start Dallas, one

in or reduction is XX,XXX and to who a to starts is knows to some reduce going there demand. going But what be anybody number be. if the So we

or the going be confident about finish to So XX,XXX, that those and still lot XX,XXX some is at position. XX,XXX, for a quarters. largest a markets Atlanta, yes, United two are probably In to little in housing our there day, it's the have starts to it's States Dallas be the we very we are market going three us. whether best the next over the of more still going end of unique the think is market But start we

And Florida came week than ranked with a very is location interestingly, out locations. still very market in We better Burns a are totally last just infill higher the report John or Atlanta seasonal. AAA Dallas. that is

own gangbusters Colorado Our Colorado really and just Denver Springs we that Denver. builder and has is of in still XX.X% slowed Springs down.

pretty that's at about how much looking So the market. we're

Jay McCanless

Thank That’s you, guys. Okay. Appreciate it. great.

Operator

comes with Your the Barron Housing from Alex of Research. next question line

line Your is open. now

Alex Barron

Yes, just wondering more be if your do guys could to something you actions feel cuts this temporary thank you what might which or or approach And comment it general whether gentlemen. price something philosophy you incentives competitive extended? by be I slowdown your -- is? was that on is others is that

Jim Brickman

Jed?

Jed Dolson

discount home, are finished margins. backlog be incentivized to so Yes that. builders backlog be going with more that want big changes that over It close -- finished eventual at builders varies would not place. to the all be want to And take to less sure. they have homes. Spec higher I are going are because going can really they to to backlogs or to hesitant they'll incentivize take on price sit like

Fort public in have builder and you and So, every MDC a Dallas Worth, MVR except lot private. you here -- have sorry of

a have to going different is everybody there's strategy. So,

and So, I universal now operate in country private would in. And public strategy have. think say across right you that of mix we're wide builders of because markets just I the carries not that the the that that seeing we a

Alex Barron

Right. I so cutting didn't prices I builders understand the strategies, think each but of kind you see because several different has to me merited it frankly for surprised soon starting reasons which I'm that, resorting if doing not stated how sales are thinking backlog. that guys scare doing doing with that do or in I'm of others you or if But wondering it sustain people just you would that? that

Jim Brickman

set meet the market. market Jim. the we Well, we Obviously Alex, this don't is

little perimeter I We sell bit call we from starts. neighborhood And that location Horton the to watch we we're because great competitor haven't are street we're we're from going a XX,XXX a infill like are but does. dollars, think XX,XXX have But that's can Horton of in builder whether said or we some not it if down our aware very neighborhoods, in to As cutting. we incrementally for as street are are immune. read a XX% when that with from Horton said, to investor to interest get down D.R. price more Obviously, we seen very any -- what our we a day-by-day. more major going closely does revenues homes doing the we Horton's this. Horton what insulated of very be into

Alex Barron

much. very you Thank great. Okay,

Operator

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

is open. now line Your

Unidentified Analyst

terms rate? Hi proactive the cancellation you've been an And had? is if hoping close? Mike. have Have about how anything seen been for everyone. can -- you on ask guys This can still of I in sure guys does was if you of impact anything have seen that much in Andrew making customers I you

Jim Brickman

entry-level rate Yes. And more Trophy, obviously cancellation brands. brand in than elevated our it is in other the is at

no really to figure have trying crystal We trend. to rates cancellation are out going how ball

is buyer anything battle rate Jed terms want cancellation the with you that you entry-level the But a Our that? do time mortgages. to Trophy just all at for have very qualified add low. be really it's going to think to we keeping people in of

Jed Dolson

buyers' kind contract change do come Yes. at our of right a the but stress buyer. closing life when test change been is backlog, it's remorse either I the we some mean after the cancellations a underwriting table very the most buyer in has like and -- there's it's or for or of --

second. at to the hard ones last the it's that don't So, predict cancel

Jim Brickman

is level cancellations I and for contract multiple to differentiators buyers buyer minus want earnest maintain mean some of to try our to of bit understand and want a -- we to to getting whereas in our even allow a I we're do perimeter our don't We're backlog peers will for $XXXX, doing money we even we better. the home deposit. the other think neighborhoods that little that plus or a entry have in and a because one

aren't So, we really pool that going buyer. bottom after bottom,

Unidentified Analyst

for No Yes. I a a SG&A there. had kind guess just Can guys sense. outlook speak improvement that nice you know lot rest you makes I of the follow-up. the year? of a to of

Jim Brickman

consistent. you just backlog. take we it's tremendous of more had we going We bit look little because be our convert if just had basis, annualized Yes, amount a -- great a quarter pretty to a an we're to on think revenues is lumpy. a able improvement SG&A

So revenues the company to quarter. it down through many all gets you're to going push each how

Unidentified Analyst

all you the on Congrats the Okay. for so me. taking for much Thank question. That’s quarter.

Jim Brickman

you. Thank

Operator

Bill Capital. with line Your Dezellem question comes from the next Tieton of

line is now open. Your

Bill Dezellem

of couple questions. A you. Thank

First of from in specifically competitors what seeing their of markets in rates? your you are terms all, start

Jim Brickman

and with the four dinner division board Across Jed Jed had take the week of presidents it's varied. just this and last can rest

aggressively largest starts. starts large think Other really we're very and between. was in reduced starts have builder to it's were all of us builders is not the and cutting Some are kind I much neighborhoods one perimeter very they cutting fourth that in builder

Bill Dezellem

homes And requesting taking other in then make to be in their you reduce homes Thanks. any may behavior smaller terms that or terms price? of what more or seeing of affordable are buyer actions buyers the

Jim Brickman

smaller any And Well weren't we XXXX three surprised ran interest buy low a of had opened up to we let's Jed house. houses plans months to we foot some feet. first say converting bigger square rates. the when aren't houses. now that these We're ago people in selling people And XXXX square really we for floor communities, were driving from to time XXXX these

Jed Dolson

We're a wanted homes XXXX really square nobody Yes. that XXXX to foot year by people ago. seeing

Bill Dezellem

Great. Thank you.

Operator

call. are no for concludes This attending. further questions. today's you Thank There conference

disconnect. You may now

Green Brick Partners (GRBK) 4 Aug 222022 Q2 Earnings call transcript