BRP - Earnings call transcript Q3 2020 | The Baldwin Insurance Group, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Brookfield Residential Properties’ Third Quarter 2020 Conference Call. [Operator Instructions] I would now like to turn the conference over to Thomas Lui, Executive Vice President and Chief Financial Officer. Please go ahead.

Thomas Lui

afternoon to on Coast. those good and East and morning good on you to the those Coast Thank the West you for conference us for XXXX Thank quarter third Brookfield call Residential’s today. joining Alan Norris, and Officer. With me our is Chief Chairman Executive for as The well parties. beneficial holders securities investors, other interested securities analysts, holders of call current and Residential’s Brookfield is debt and intended prospective as market makers financial responding the new forward-looking at would, this our operating I initiatives questions about U.S. in talking statements applicable you will in time, we and and to that including and make meaning and performance, statements, Canadian remind forward-looking of within security laws. These events, events materially from statements that historical are trends subject and such statements. to may differ unknown of reflect future future known events and to do not relate and predictions risks

information I now on our the filings historical on an U.S. and market. on and see will operations who their information Canada the overview risks call with please company, provide of these and and will potential our available our pass website. For the impact to our Alan securities in regulators more our

Alan Norris

with you, continued backlog and momentum Thank both good Residential XXXX had of afternoon morning, execution an the Thomas active and and and of quarter continued said. Canada. Thomas our third as good sales U.S. Brookfield in the

heading demand consumers larger fundamentals, and suburbs continue and positive U.S. year With flight degree a the May, strong be in which markets across including for to a pattern at of XXXX. supported our results seek interest end the housing our many the primes as of operational of have some season, underlying demand our the improve backlog a launched pent-up low markets, we Despite with we to on rates homes. to selling change in continue Ontario the missing projected into by and

XX%, and our our with we from primarily operations of XX%. our was new increase Ontario of Canadian XX% increase seeing an Alberta from months increase For an in XXXX, a the XX, well. operations September U.S. our overall increase with increase X as saw net The ended our slight operations orders home from Canadian market

However, off a conditions. leveling economic some as recently we in the of result are seeing Alberta

same We adequate XXXX, as activity, revolving units Our further value increasing facility positive laddering until XX% September that September million terms Residential amended with substantially its structure, XX, $XXX at the compared on prior September, senior note maturities $XXX revolving additional unsecured conditions. providing XXXX million reflected X,XXX until liquidity XXXX. of believe million, no as $XXX maturities unsecured facility North sales of and year. and and Brookfield XXXX of XX, backlog when this a the our well credit to extended with our capital enhances the and the at American improving In both September credit

Our outlook remainder the continues the year for of to improve.

would fourth sustained of the in our COVID-XX starting of momentum from a of that June, able traditionally activity business the we With were core quarter recover the pandemic result a make spring selling the portion sales loss the from up closings. significant affecting of as weeks season our interruption to some

XX% addition, than In lower improvement anticipated be and the rate continued has year. third compared to when recent quarter of our X% cancellation to an the for in prior

the selling spring replenish developed business increased of homebuilders lots XXXX development ‘XX and seasons. as for demand to also ahead their land seeing inventory land Our U.S. is look

across the interest we positive guidance activity to we of our As our have updated a result have the operations. reflect been experiencing, XXXX conditions

entities. share approximately X,XXX of lots, homes or our our Assuming business to no further quarter, restrictions X,XXX excluding interruptions in U.S. operations unconsolidated the anticipate significant fourth we and close

For XXX homes lots. and XXX close approximately our we markets, Canadian expect to

pass will that expect the operating lot I results. the over the in of the majority quarter the the who activity, of home an closings quarter year’s and will closings fourth quarter XXXX. closings approximately the fourth up be year’s half makes to year call and the be of of historically, financial provide will While Thomas, overview we now of our of year’s will

Thomas Lui

you, Thank Alan.

the For our the comparable loss XXXX. $X September loss income year. the results equity was with same before no in our ended unconsolidated period in months in Included X is $XX which was similar XX, a million, taxes XXXX to XXXX, affiliates investments million prior in QX from

income to were to September homes is $XX lower interest million in home expenses a increase gross closed. and in of were Housing and average Ontario our by million. Program, selling home million, partially partially XX other offset and $X of compared at by a of $X expense XX, gross X% income relating expense expense $XX of a the the $X million, X selling, to million respectively the administrative margin closings, operating and in an of to other XXXX due decrease and margin and $X offset increase During million looking When representing XX, September product XXXX. housing due which $X $XX of months ended and XXXX. now ended in is respectively net price segment, the $X $XX net XXXX primarily this million, of Consolidated increase by Homebuilder months was prior an unconsolidated decrease million loss The income. and mix closings decrease XXX in Calgary $XX a increase income the million $X when from in general and compared affiliate and markets activity from by tax XX% in entities, our in XXX primarily lots, of This increased to Canada $XXX is lease $XXX for and an million of in primarily revenue for from decrease Finance geographic million housing additional and million, homes which X an a was XXX of lot quarter, delivered of XX% in income the adjusted result year gross we margin the million. million recorded million $X for

selling and totaled million the timing and acres comparative to million mix the decrease million and decrease homes current and from reduced $XX period in The California by the in and there product of gross XXXX. gross Austin result market. XX% $X XXXX million, California our mix in XXXX. comparable million, in XXX no U.S. decrease same Land decrease closings mainly million $X due in raw lot Austin multifamily sales finished land margin $XX partially Eastern primarily of fewer and million XXXX, in XXX California lower home acres to and Housing in land to continued these home X gross of commercial and decrease compared were when in XX% sales margins and increased more segment Southern The with when mix when margin a a single-family industrial the compared the a of our result was is gross where prices entry-level average reflect average $X million in average closings, was of our gross million, to XXX margins the closed XXXX. a fewer being selling due selling by million, or The price Land was move-up segment market, closed our the product were as in margin the due of sold This lot closings a decrease both primarily closings our Eastern average and Southern and of average of margins of California million, was lower by land $XX to by $XX Central Our and shift this coming partially coming was at compared U.S. in due geographic additional from over offset an land our market. to Playa $XX million, home homes in price of XX% lower respectively prices price markets. year. segment, have had through XXXX. mainly single-family totaled community our within offset California current gross due This segment are and closings $XX There of operating to our are home a average that partially our $XX additional in lot primarily closings home by XX market. additional Vista of closings was and the Austin closings home XX In the $XX our homes an XXX lot. our this Canadian Arizona selling Northern to per lot of Central selling primarily million no more comparative prices. primarily to $X period product. segment, Land increase decreased prices $XX entry-level lot typically these first XX revenue the selling

of Arizona our – similar these XXX market the our lot a of communities new in came no Arizona community, in were owned of new from a XXXX. wholly Specifically wholly in where closings market, there launch

at home for and offset year. billion. quickly XXXX, construction sheet, sales as activities assets land totaled development and of balance the Looking $X.X our Land XX, assets to September continue our reflect by activity housing

However, result of the far balance land fewer in is lower as acquisitions a XXXX. made thus

our total quarter of of increased Our XX% venture. XX% us of increase will wraps XX, to affiliates result continued it unconsolidated the as underlying operator the up was $X Thank of investments. contribution our who I – turn net a in At and the Rental for today. as debt value construction results. a unconsolidated our conference will now of formal housing in entities, XXXX. sorry, you to compared a Brookfield land call ratio land The change investment third September back of and moderate and result Brookfield’s inventory was Single at for development decreased the capitalization our remarks joining December this questions. in XX, Family entities for entities XXXX, to in That to million investment unconsolidated fair and

Alan Norris

most interest I prepared our operator. of remarks Brookfield your Thanks, Residential. appreciate issues. addressed Hopefully, everybody’s in

end chatting forward Thank to year call. you with at you. our Looking all

Operator

concludes This call. today’s conference

day. have You lines. your you may pleasant participating for Thank and disconnect a

The Baldwin Insurance Group, Inc. (BWIN) 8 Nov 202020 Q3 Earnings call transcript