Green Brick Partners, Inc. (GRBK)

[Enterprising Investor]

Green Brick Partners, Inc. Reports Third Quarter 2016 Results (11/07/16)

Third Quarter Basic EPS of $0.13 and Basic Adjusted EPS of $0.20, up 116.7% and 100.0%; Third Quarter Pre-Tax Income of $9.9 million, up 111.8%; Third Quarter Revenue of $91.7 million, up 21.9%; Backlog of $138.7 million, up 41.1%

PLANO, TX--(Marketwired - November 07, 2016) - Green Brick Partners, Inc. (NASDAQ: GRBK) ("we," "Green Brick" or the "Company"), today reported results for its third quarter ended September 30, 2016.

Results for the Third Quarter Ended September 30, 2016:

•Basic net income attributable to Green Brick per common share ("EPS") for the three months ended September 30, 2016 was $0.13, an increase of 116.7%, compared to $0.06 for the three months ended September 30, 2015. Basic adjusted net income attributable to Green Brick per common share ("Adjusted EPS") for the three months ended September 30, 2016 was $0.20, an increase of 100.0%, compared to $0.10 for the three months ended September 30, 2015. See "Reconciliation of Non-GAAP Financial Measures."

•For the three months ended September 30, 2016, the Company had: pre-tax income of $9.9 million, an increase of 111.8%, compared to $4.7 million for the three months ended September 30, 2015; gross profit of $22.3 million, an increase of 41.6%, compared to $15.7 million for the three months ended September 30, 2015; and revenue of $91.7 million, an increase of 21.9%, compared to $75.2 million for three months ended September 30, 2015.

•Builder operations revenue for the three months ended September 30, 2016 was $87.8 million, an increase of 27.0%, compared to $69.2 million for the three months ended September 30, 2015. Land development revenue for the three months ended September 30, 2016 was $3.8 million compared to $6.0 million for the three months ended September 30, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.

•The dollar value of backlog units as of September 30, 2016 was $138.7 million, an increase of 41.1% compared to September 30, 2015. The average sales price of homes in backlog increased $22,116, or 5.3%, to $440,273 for the three months ended September 30, 2016, compared to $418,157 for the three months ended September 30, 2015.

•Homes under construction increased 22.5% to 665 as of September 30, 2016, compared to 543 as of September 30, 2015.

Results for the Nine Months Ended September 30, 2016:

•Basic EPS for the nine months ended September 30, 2016 was $0.33, an increase of 13.8%, compared to $0.29 for the nine months ended September 30, 2015. Basic Adjusted EPS for the nine months ended September 30, 2016 was $0.52, an increase of 52.9%, compared to $0.34 for the nine months ended September 30, 2015. See "Reconciliation of Non-GAAP Financial Measures."

•For the nine months ended September 30, 2016, the Company had: pre-tax income of $25.3 million, an increase of 51.1%, compared to $16.8 million for the nine months ended September 30, 2015; gross profit of $61.5 million, an increase of 25.2%, compared to $49.1 million for the nine months ended September 30, 2015; and revenue of $260.6 million, an increase of 26.7%, compared to $205.6 million for nine months ended September 30, 2015.

•Builder operations revenue for the nine months ended September 30, 2016 was $248.2 million, an increase of 38.5%, compared to $179.2 million for the nine months ended September 30, 2015. Land development revenue for the nine months ended September 30, 2016 was $12.4 million compared to $26.4 million for the nine months ended September 30, 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the house closing.

"I am very pleased with our strong third quarter, with $9.9 million in pre-tax income, a robust backlog and significant year-to-date increases in housing revenue and other metrics," said James R. Brickman, Green Brick's Chief Executive Officer. "Especially encouraging has been the improvement to our homebuilding gross margin percentage. Many of our peers have experienced declining margins, but because of our superior lot position, strong markets and unique structure, our adjusted gross margin percentage rose to 24.5% in the third quarter of 2016."

Earnings Conference Call:

We will host our earnings conference call to discuss our third quarter ended September 30, 2016 at 12:00 p.m. Eastern Time on Tuesday, November 8, 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 2626394. A replay of the call will be available from approximately 3:00 p.m. Eastern Time on November 8, 2016 through 11:59 p.m. Eastern Time on November 15, 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 2626394.

Reclassifications:

Depreciation of model home furnishings for the three and nine months ended September 30, 2015 has been reclassified from depreciation and amortization expense 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 September 30, 2015 is indicative of the Company's future weighted average shares outstanding, however the weighted average shares outstanding for the nine months ended September 30, 2015 is not.

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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.

http://www.marketwired.com/press-release/update-green-brick-partners-inc-reports-third-quarter-2016-results-2173492.htm