Green Brick Partners, Inc. (GRBK)

[Enterprising Investor]

Green Brick Partners, Inc. Reports First Quarter 2016 Results (5/09/16)

First Quarter Pre-Tax Income of $4.5 million; First Quarter Revenue of $70.0 million; First Quarter Basic Adjusted EPS of $0.09; Backlog of $129.2 million, up 39.3%

PLANO, TX--(Marketwired - May 09, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its first quarter ended March 31, 2016.

Results for the First Quarter Ended March 31, 2016:

• For the three months ended March 31, 2016, the Company had revenue of $70.0 million, gross profit of $15.7 million, and pre-tax income of $4.5 million. This compares to revenues of $58.5 million, gross profit of $16.2 million, and pre-tax income of $6.2 million for the first quarter ended March 31, 2015. The decrease in pre-tax income is attributable to an increase in amortization of capitalized interest of $1.0 million and to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.

• Builder operations revenue for the three months ended March 31, 2016 was $66.6 million, an increase of 34.2%, compared to $49.7 million for the three months ended March 31, 2015. Land development revenue for the three months ended March 31, 2016 was $3.3 million compared to $8.8 million for the three months ended March 31, 2015.

• The dollar value of backlog units as of March 31, 2016 was $129.2 million, an increase of 39.3% compared to March 31, 2015. The average sales price of homes in backlog increased $78,112, or 20.4%, to $461,393 for the three months ended March 31, 2016, compared to $383,281 for the three months ended March 31, 2015.

• Homes under construction increased 4.6% to 541 as of March 31, 2016, compared to 517 as of March 31, 2015.

• Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended March 31, 2016 was $0.09. See "Reconciliation of Non-GAAP Financial Measures."

"We are very pleased with Green Brick's progress this quarter. In addition, the 47% increase in Q1 2016 backlog from year-end and 29% increase in net orders should translate into substantially higher revenue and earnings as the year progresses," said James R. Brickman, Green Brick's Chief Executive Officer. "In addition, during the last two quarters, we have acquired approximately 1,000 home sites in Atlanta and Dallas that we expect to develop into profitable neighborhoods in 2017 and beyond."

Earnings Conference Call:

We will host our earnings conference call to discuss our first quarter ended March 31, 2016 at 12:00 p.m. Eastern Time on Tuesday, May 10, 2016. The call can be accessed by dialing 800-374-0137 for domestic participants or 904-685-8013 for international participants. Participants should reference conference ID code 2401401. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on May 10, 2016 through 11:59 p.m. Eastern Time on May 17, 2016. To access the replay, the domestic dial-in number is 855-859-2056, the international dial-in number is 404-537-3406 and the conference ID code is 2401401.

Reclassifications:

Depreciation of model home furnishings for the three months ended March 31, 2015 has been reclassified from depreciation and amortization expense, which is included in other income, net in the consolidated statements of income to cost of residential units to conform to the current year presentation.

Reconciliation of Non-GAAP Financial Measures:

In this press release, we utilize certain financial measures that are non-GAAP financial measures as defined by the Securities and Exchange Commission. We present these measures because we believe they and similar measures are useful to management and investors in evaluating the Company's operating performance and financing structure. We also believe these measures facilitate the comparison of our operating performance and financing structure with other companies in our industry. Because these measures are not calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), they may not be comparable to other similarly titled measures of other companies and should not be considered in isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

On July 1, 2015, the Company completed an underwritten public offering of 17,000,000 shares of its common stock at a price to the public of $10.00 per share and granted to the underwriters a 30-day option to purchase up to an aggregate of 841,500 additional shares of common stock to cover over-allotments (the "Equity Offering"). On July 23, 2015, the underwriters exercised the option and purchased 444,897 additional shares. Due to the effects of the Equity Offering, the weighted average shares outstanding for the three months ended March 31, 2015 is not indicative of the Company's future weighted average shares outstanding.

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About Green Brick Partners, Inc.:

Green Brick Partners, Inc. (NASDAQ: GRBK) is a uniquely structured company that combines residential land development and homebuilding. The Company acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The Company owns a controlling interest in four homebuilding companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as a leading homebuilder in Atlanta, Georgia (The Providence Group of Georgia, L.L.C.). The Company is engaged in all aspects of the homebuilding process, including land acquisition and the development, entitlements, design, construction, marketing and sales and the creation of brand images at its residential neighborhoods and master planned communities. For more information about Green Brick Partners, Inc.'s homebuilding partners go to www.greenbrickpartners.com/building-partners.html.

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