Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Entity Information [Line Items] | ||
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Incorporation, State or Country Code | DE | |
Entity Registrant Name | Green Brick Partners, Inc. | |
Entity Central Index Key | 0001373670 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Tax Identification Number | 20-5952523 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 45,508,376 | |
Entity Shell Company | false | |
Entity File Number | 001-33530 | |
Entity Address, Address Line One | 2805 Dallas Pkwy | |
Entity Address, Address Line Two | Ste 400 | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75093 | |
City Area Code | (469) | |
Local Phone Number | 573-6755 | |
Entity Small Business | false | |
Common Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | GRBK | |
Security Exchange Name | NYSE | |
Series A Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares (each representing a 1/1000th interest in a share of 5.75% Series A Cumulative Perpetual Preferred Stock, par value $0.01 per share) | |
Trading Symbol | GRBK PRA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Restricted cash | $ 18,416 | $ 16,682 |
Inventory | 1,373,014 | 1,422,680 |
Investments in unconsolidated entities | 77,059 | 74,224 |
Operating Lease, Right-of-Use Asset | 3,076 | 3,458 |
Property and equipment, net | 3,913 | 2,919 |
Earnest money deposits | 19,530 | 23,910 |
Deferred income tax assets, net | 16,448 | 16,448 |
Intangible assets, net | 429 | 452 |
Goodwill | 680 | 680 |
Other assets | 9,364 | 12,346 |
Total assets | 1,706,456 | 1,655,675 |
LIABILITIES AND EQUITY | ||
Accounts payable | 52,862 | 51,804 |
Accrued expenses | 108,492 | 91,281 |
Operating Lease, Liability | 3,187 | 3,582 |
Borrowings on lines of credit, net | (2,453) | (17,395) |
Senior Notes | 335,920 | 335,825 |
Contract with Customer, Liability | 36,948 | 29,112 |
Total liabilities | 549,563 | 543,621 |
Commitments and contingencies | ||
Redeemable noncontrolling interest in equity of consolidated subsidiary | 30,291 | 29,239 |
Green Brick Partners, Inc. stockholders’ equity | ||
Preferred stock, $0.01 par value: 5,000,000 shares authorized; 2,000 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 47,696 | 47,696 |
Common stock, $0.01 par value: 100,000,000 shares authorized; 46,211,430 issued and 45,743,555 outstanding as of March 31, 2023 and 46,032,930 issued and outstanding as of December 31, 2022, respectively | 462 | 460 |
Additional Paid in Capital | 263,545 | 259,410 |
Retained earnings | 817,802 | 754,341 |
Total Green Brick Partners, Inc. stockholders’ equity | 1,114,154 | 1,061,907 |
Noncontrolling interests | 12,448 | 20,908 |
Total equity | 1,126,602 | 1,082,815 |
Total liabilities and equity | 1,706,456 | 1,655,675 |
Cash and Cash Equivalents, at Carrying Value | 177,271 | 76,588 |
Accounts Receivable, after Allowance for Credit Loss | 7,256 | 5,288 |
Treasury Stock, Value | 15,351 | 0 |
Other Notes Payable | $ 14,607 | $ 14,622 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 2,000 | 2,000 |
Preferred stock, shares outstanding (in shares) | 2,000 | 2,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 46,211,430 | 46,032,930 |
Common stock, shares outstanding (in shares) | 45,743,555 | 46,032,930 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Total revenues | $ 452,061 | $ 393,616 |
Cost of Goods and Services Sold | 327,455 | 285,260 |
Total gross profit | 124,606 | 108,356 |
Selling, general and administrative expenses | 45,945 | 34,265 |
Equity in income of unconsolidated entities | 4,221 | 5,687 |
Other income, net | 4,290 | 2,855 |
Income before income taxes | 87,172 | 82,633 |
Income tax expense | 19,031 | 18,437 |
Net income | 68,141 | 64,196 |
Less: Net income attributable to noncontrolling interests | 3,961 | 2,619 |
Net income attributable to Green Brick Partners, Inc. | $ 64,180 | $ 61,577 |
Net income attributable to Green Brick Partners, Inc. per common share: | ||
Basic (in dollars per share) | $ 1.38 | $ 1.20 |
Diluted (in dollars per share) | $ 1.37 | $ 1.20 |
Residential Real Estate [Member] | ||
Total revenues | $ 450,362 | $ 364,661 |
Cost of Goods and Services Sold | 326,124 | 263,430 |
Real Estate, Other [Member] | ||
Total revenues | 1,699 | 28,955 |
Cost of Goods and Services Sold | $ 1,331 | $ 21,830 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Common Stock [Member] | Retained Earnings | Noncontrolling Interest | Preferred stock GRBK PRA | Parent | Treasury Stock, Common |
Treasury Stock, Value | $ 3,167 | |||||||
Common Stock, Shares, Issued | 51,151,911 | |||||||
Common stock, $0.01 par value: 100,000,000 shares authorized; 46,211,430 issued and 45,743,555 outstanding as of March 31, 2023 and 46,032,930 issued and outstanding as of December 31, 2022, respectively | $ 512 | |||||||
Treasury Stock, Common, Shares | 391,939 | |||||||
Additional Paid in Capital | $ 289,641 | |||||||
Retained Earnings (Accumulated Deficit) | 539,866 | |||||||
Stockholders' Equity Attributable to Parent | 874,548 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 14,146 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 888,694 | |||||||
Preferred stock, shares outstanding (in shares) | 2,000 | |||||||
Preferred Stock, Including Additional Paid in Capital | $ 47,696 | |||||||
Common Stock, Shares, Issued | 51,151,911 | |||||||
Temporary Equity, Accretion to Redemption Value, Adjustment | $ 557 | |||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 1,075 | (1,074) | $ (1) | $ 1,075 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 2,752 | 2,751 | 1 | 2,752 | ||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 139,710 | |||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 46,415 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 280 | |||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ 5,718 | $ 5,718 | ||||||
Net income attributable to Green Brick Partners, Inc. | 61,577 | $ 61,577 | 61,577 | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 1,750 | |||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 63,327 | |||||||
Noncontrolling Interest, Change in Redemption Value | (557) | |||||||
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 280 | 280 | ||||||
Dividends, Common Stock, Cash | (655) | (655) | (655) | |||||
Stock Repurchased During Period, Shares | 1,193,037 | |||||||
Stock Repurchased During Period, Value | (25,801) | 25,801 | $ 25,801 | |||||
Treasury Stock, Value | $ 28,968 | |||||||
Common Stock, Shares, Issued | 51,245,206 | |||||||
Common stock, $0.01 par value: 100,000,000 shares authorized; 46,211,430 issued and 45,743,555 outstanding as of March 31, 2023 and 46,032,930 issued and outstanding as of December 31, 2022, respectively | 512 | |||||||
Treasury Stock, Common, Shares | 1,584,976 | |||||||
Additional Paid in Capital | $ 292,155 | |||||||
Retained Earnings (Accumulated Deficit) | 600,788 | |||||||
Stockholders' Equity Attributable to Parent | 912,183 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 10,178 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 922,361 | |||||||
Preferred stock, shares outstanding (in shares) | 2,000 | |||||||
Preferred Stock, Including Additional Paid in Capital | $ 47,696 | |||||||
Common Stock, Shares, Issued | 51,245,206 | |||||||
Treasury Stock, Value | $ 0 | |||||||
Common Stock, Shares, Issued | 46,032,930 | |||||||
Common stock, $0.01 par value: 100,000,000 shares authorized; 46,211,430 issued and 45,743,555 outstanding as of March 31, 2023 and 46,032,930 issued and outstanding as of December 31, 2022, respectively | $ 460 | |||||||
Treasury Stock, Common, Shares | 0 | |||||||
Additional Paid in Capital | $ 259,410 | |||||||
Retained Earnings (Accumulated Deficit) | 754,341 | |||||||
Stockholders' Equity Attributable to Parent | 1,061,907 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 20,908 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,082,815 | |||||||
Preferred stock, shares outstanding (in shares) | 2,000 | 2,000 | ||||||
Preferred Stock, Including Additional Paid in Capital | $ 47,696 | |||||||
Common Stock, Shares, Issued | 46,032,930 | |||||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 1,976 | (1,975) | (1) | (1,976) | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 5,233 | 5,230 | $ 3 | 5,233 | ||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 238,357 | |||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 59,857 | |||||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | $ 567 | 567 | 567 | |||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | 11,056 | 11,056 | ||||||
Net income attributable to Green Brick Partners, Inc. | 64,180 | 64,180 | 64,180 | |||||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | $ 2,596 | |||||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 66,776 | |||||||
Noncontrolling Interest, Change in Redemption Value | 313 | $ 313 | 313 | |||||
Dividends, Common Stock, Cash | (719) | $ (719) | (719) | |||||
Stock Repurchased During Period, Shares | 467,875 | |||||||
Stock Repurchased During Period, Value | (15,351) | $ 15,351 | $ 15,351 | |||||
Treasury Stock, Value | $ 15,351 | |||||||
Common Stock, Shares, Issued | 46,211,430 | |||||||
Common stock, $0.01 par value: 100,000,000 shares authorized; 46,211,430 issued and 45,743,555 outstanding as of March 31, 2023 and 46,032,930 issued and outstanding as of December 31, 2022, respectively | $ 462 | |||||||
Treasury Stock, Common, Shares | 467,875 | |||||||
Additional Paid in Capital | $ 263,545 | |||||||
Retained Earnings (Accumulated Deficit) | 817,802 | |||||||
Stockholders' Equity Attributable to Parent | 1,114,154 | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 12,448 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,126,602 | |||||||
Preferred stock, shares outstanding (in shares) | 2,000 | 2,000 | ||||||
Preferred Stock, Including Additional Paid in Capital | $ 47,696 | |||||||
Common Stock, Shares, Issued | 46,211,430 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 68,141 | $ 64,196 |
Depreciation, Depletion and Amortization | 754 | 625 |
Gain (Loss) on Disposition of Property Plant Equipment | (146) | 39 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Share-based compensation expense | 5,499 | 2,923 |
Earnest Money Deposits and Pre-acquisition Costs Written-Off | 10 | 59 |
Income (Loss) from Equity Method Investments | (4,221) | (5,687) |
Distributions of income from unconsolidated entities | 2,906 | 3,176 |
Changes in operating assets and liabilities: | ||
Increase in receivables | (1,968) | (179) |
Decrease (increase) in inventory | 49,987 | (123,429) |
Decrease in earnest money deposits | 4,380 | 1,265 |
Decrease in other assets | 2,960 | 4,476 |
Increase in accounts payable | (1,058) | (11,217) |
Increase in accrued expenses | 17,512 | 28,317 |
Increase (Decrease) in Contract with Customer, Liability | 7,835 | (992) |
Net cash provided by (used in) operating activities | 154,707 | (13,994) |
Cash flows from investing activities: | ||
Purchase of property and equipment, net of disposals | (1,581) | (448) |
Net cash used in investing activities | (3,101) | (448) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Borrowings from lines of credit | 22,000 | 112,000 |
Repayments of Lines of Credit | 42,000 | 92,000 |
Payment, Tax Withholding, Share-based Payment Arrangement | 1,975 | 1,075 |
Payments for Repurchase of Common Stock | (15,351) | (25,801) |
Payments to Noncontrolling Interests | 11,056 | 5,718 |
Net cash (used in) provided by financing activities | (49,189) | 1,123 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 102,417 | (13,319) |
Cash and cash equivalents, beginning of period | 78,696 | |
Restricted cash, beginning of period | 16,682 | 14,858 |
Cash and cash equivalents and restricted cash, beginning of period | 93,270 | 93,554 |
Cash and cash equivalents, end of period | 66,083 | |
Restricted cash, end of period | 18,416 | 14,152 |
Cash and cash equivalents and restricted cash, end of period | 195,687 | 80,235 |
Supplemental Cash Flow Information [Abstract] | ||
Income Taxes Paid, Net | 0 | 25 |
Earnest Money Deposits and Pre-acquisition Costs Written-Off | 10 | 59 |
Proceeds from Notes Payable | 0 | 14,472 |
Repayments of Notes Payable | (16) | (14) |
Payments of Debt Issuance Costs | (72) | (86) |
Payments to Acquire Equity Method Investments | (1,520) | 0 |
Payments of Dividends | $ (719) | $ (655) |
Significant Accounting Policies
Significant Accounting Policies Accounting Policies (Notes) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023 or subsequent periods due to seasonal variations and other factors. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners (together, the “Company”, “we”, or “Green Brick”), Inc., its controlled subsidiaries, and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. For a complete set of the Company’s significant accounting policies, refer to Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Recent Accounting Pronouncements |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Green Brick Partners (together, the “Company”, “we”, or “Green Brick”), Inc., its controlled subsidiaries, and variable interest entities (“VIEs”) in which Green Brick Partners, Inc. or one of its controlled subsidiaries is deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. |
Equity Method Investments [Policy Text Block] | The Company uses the equity method of accounting for its investments in unconsolidated entities over which it exercises significant influence but does not have a controlling interest. Under the equity method, the Company’s share of the unconsolidated entities’ earnings or losses, if any, is included in the condensed consolidated statements of income. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 2. INVENTORY A summary of our inventory is as follows (in thousands): March 31, 2023 December 31, 2022 Homes completed or under construction $ 525,571 $ 603,953 Land and lots - developed and under development 796,826 768,194 Land held for future development (1) 48,453 48,369 Land held for sale 2,164 2,164 Total inventory $ 1,373,014 $ 1,422,680 (1) Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred. As of March 31, 2023, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of March 31, 2023, the Company performed further impairment analysis of one selling community with indicators of impairment with a combined corresponding carrying value of approximately $26.6 million. For the three months ended March 31, 2023 and 2022, the Company did not record an impairment adjustment to reduce the carrying value of communities to fair value. A summary of interest costs incurred, capitalized, and expensed is as follows (in thousands): Three Months Ended March 31, 2023 2022 Interest capitalized at beginning of period $ 22,752 $ 19,950 Interest incurred 3,743 3,734 Interest charged to cost of revenues (3,648) (2,933) Interest capitalized at end of period $ 22,847 $ 20,751 Capitalized interest as a percentage of inventory 1.7 % 1.6 % |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Entities | INVESTMENT IN UNCONSOLIDATED ENTITIES A summary of the Company’s investments in unconsolidated entities is as follows (in thousands): March 31, 2023 December 31, 2022 GB Challenger, LLC $ 51,043 $ 49,897 GBTM Sendera, LLC 15,839 14,319 EJB River Holdings, LLC 9,057 8,554 BHome Mortgage, LLC 1,120 1,147 Green Brick Mortgage, LLC — 307 Total investment in unconsolidated entities $ 77,059 $ 74,224 A summary of the unaudited condensed financial information of the five unconsolidated entities that are accounted for by the equity method is as follows (in thousands): March 31, 2023 December 31, 2022 Assets: Cash $ 12,009 $ 15,265 Accounts receivable 5,945 4,972 Bonds and notes receivable 12,341 10,381 Loans held for sale, at fair value 3,155 8,829 Inventory 205,206 195,732 Other assets 10,269 9,352 Total assets $ 248,925 $ 244,531 Liabilities: Accounts payable $ 13,873 $ 10,166 Accrued expenses and other liabilities 12,612 12,177 Notes payable 77,060 82,484 Total liabilities $ 103,545 $ 104,827 Owners’ equity: Green Brick $ 73,569 $ 70,812 Others 71,811 68,892 Total owners’ equity $ 145,380 $ 139,704 Total liabilities and owners’ equity $ 248,925 $ 244,531 Three Months Ended March 31, 2023 2022 Revenues $ 58,323 $ 70,636 Costs and expenses 49,726 59,197 Net earnings of unconsolidated entities $ 8,597 $ 11,439 Company’s share in net earnings of unconsolidated entities $ 4,221 $ 5,687 A summary of the Company’s share in net earnings by unconsolidated entity is as follows: Three Months Ended March 31, 2023 2022 GB Challenger, LLC $ 3,025 $ 4,067 BHome Mortgage, LLC 693 554 EJB River Holdings, LLC 503 738 Green Brick Mortgage, LLC — 328 Total net earnings from unconsolidated entities $ 4,221 $ 5,687 |
Payables and Accruals
Payables and Accruals | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure | 4. ACCRUED EXPENSES A summary of the Company’s accrued expenses is as follows (in thousands): March 31, 2023 December 31, 2022 Real estate development reserve to complete (1) $ 32,554 $ 28,793 Warranty reserve 19,532 17,945 Federal income tax payable 19,293 6,334 Accrued compensation 4,970 13,917 Other accrued expenses 32,143 24,292 Total accrued expenses $ 108,492 $ 91,281 (1) Our real estate development reserve to complete consists of estimated future costs to complete the development of our communities. Warranties Warranty accruals are included within accrued expenses on the condensed consolidated balance sheets. Warranty activity during the three months ended March 31, 2023 and 2022 consisted of the following (in thousands): Three Months Ended March 31, 2023 2022 Warranty accrual, beginning of period $ 17,945 $ 9,378 Warranties issued 2,045 1,814 Changes in liability for existing warranties 633 295 Settlements made (1,091) (874) Warranty accrual, end of period $ 19,532 $ 10,613 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | . DEBT Lines of Credit Borrowings on lines of credit outstanding, net of debt issuance costs, as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): March 31, 2023 December 31, 2022 Secured Revolving Credit Facility $ — $ — Unsecured Revolving Credit Facility — 20,000 Debt issuance costs, net of amortization (2,453) (2,605) Total borrowings on lines of credit, net $ (2,453) $ 17,395 Secured Revolving Credit Facility The Company is party to a revolving credit facility (the “Secured Revolving Credit Facility”) with Inwood National Bank, which provides for an aggregate commitment amount of $35.0 million. On February 9, 2022, the Company entered into the Eighth Amendment to this credit agreement to extend its maturity date to May 1, 2025 and to reduce the minimum interest rate from 4.00% to 3.15%. All other material terms of the credit agreement, as amended, remained unchanged. The entire unpaid principal balance and any accrued but unpaid interest is due and payable on the maturity date. As of March 31, 2023, there were no letters of credit outstanding and a net available commitment amount of $35.0 million. Unsecured Revolving Credit Facility The Company is party to a credit agreement, providing for a senior, unsecured revolving credit facility (the “Unsecured Revolving Credit Facility”). On December 9, 2022, the Company entered into the Tenth Amendment to this credit agreement which increased the secured outstanding commitments from $300.0 million to $325.0 million and extended the termination date by one year to December 14, 2025. The Tenth Amendment also replaced LIBOR as the benchmark interest rate with the Secure Overnight Financing Rate (“SOFR”). The Unsecured Revolving Credit Facility is guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. Senior Unsecured Notes Senior unsecured notes, net of debt issuance costs, as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): March 31, 2023 December 31, 2022 4.00% senior unsecured notes due in 2026 (“2026 Notes”) $ 75,000 $ 75,000 3.35% senior unsecured notes due in 2027 (“2027 Notes”) 37,500 37,500 3.25% senior unsecured notes due in 2028 (“2028 Notes”) 125,000 125,000 3.25% senior unsecured notes due in 2029 (“2029 Notes”) 100,000 100,000 Debt issuance costs, net of amortization (1,580) (1,675) Total senior unsecured notes, net $ 335,920 $ 335,825 The Senior Unsecured Notes are guaranteed on an unsecured senior basis by the Company’s significant subsidiaries and certain other subsidiaries. Optional prepayment of each of the Notes is allowed with a payment of a “make-whole” penalty which fluctuates depending on market interest rates. Interest is payable quarterly in arrears. 2026 Notes Principal on the 2026 Notes is required to be paid in increments of $12.5 million on August 8, 2024 and $12.5 million on August 8, 2025. The final principal payment of $50.0 million is due on August 8, 2026. 2027 Notes The aggregate principal amount of senior unsecured notes 2027 Notes is due on August 26, 2027. 2028 Notes Principal on the 2028 Notes is due in increments of $25.0 million on February 25, 2024; $25.0 million on February 25, 2025; $25.0 million on February 25, 2026; $25.0 million on February 25, 2027 and $25.0 million on February 25, 2028. 2029 Notes Principal on the 2029 Notes of $30.0 million is due on December 28, 2028. The remaining principal amount of $70.0 million is due on December 28, 2029. Our debt instruments require us to maintain specific financial covenants, each of which we were in compliance with as of March 31, 2023. Notes payable On February 7, 2022, a subsidiary of the Company entered into a Promissory Note agreement with another homebuilder for $28.8 million in connection with the acquisition of a tract of land in Bastrop County, Texas. The Company agreed to pay $14.4 million per the governing Joint Ownership and Development Agreement. The Promissory Note matures on February 7, 2024 and carries an annual fixed rate of 0.6%. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combination | The Company has a noncontrolling interest attributable to the 20% minority interest in GRBK GHO Homes, LLC (“GRBK GHO”) owned by our Florida-based partner that is included as redeemable noncontrolling interest in equity of consolidated subsidiary in the Company’s condensed consolidated financial statements. On March 23, 2023, the Company and the minority partner amended the operating agreement of GRBK GHO to change the start of the put and purchase options from April 2024 to April 2027. Refer to Note 2 in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for details on the put/call structure of this agreement. The following table shows the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Redeemable noncontrolling interest, beginning of period $ 29,239 $ 21,867 Net income attributable to redeemable noncontrolling interest partner 1,365 869 Change in fair value of redeemable noncontrolling interest (313) (557) Redeemable noncontrolling interest, end of period $ 30,291 $ 22,179 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | . STOCKHOLDERS’ EQUITY 2021 Share Repurchase Program During the three months ended March 31, 2022, the Company completed discrete open market repurchases under the stock repurchase program approved in 2021 of 1,193,037 shares for approximately $25.8 million. There are no amounts remaining under the 2021 plan. 2022 Share Repurchase Program On April 27, 2022, the Board of Directors (the “Board”) approved a new stock repurchase program (the “2022 Repurchase Plan”) that authorizes the Company to purchase, from time to time, up to $100.0 million of our outstanding common stock through open market repurchases in compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. The 2022 Repurchase Plan has no time deadline and will continue until otherwise modified or terminated by the Board at any time in its sole discretion. 2023 Share Repurchase Program On April 27, 2023, the Board approved a new stock repurchase program (the “2023 Repurchase Plan”) that authorizes the Company to purchase, from time to time, up to an additional $100.0 million of our outstanding common stock, upon completion of our 2022 Repurchase Plan, through open market repurchases in compliance with Rule 10b-18 under the Exchange Act and/or in privately negotiated transactions at management’s discretion based on market and business conditions, applicable legal requirements and other factors. Shares repurchased will be retired. The 2023 Repurchase Plan has no time deadline and will continue until otherwise modified or terminated by the Board at any time in its sole discretion. During the three months ended March 31, 2023, the Company repurchased 467,875 shares for approximately $15.4 million, excluding excise tax. As of March 31, 2023, the remaining dollar value of shares that may be repurchased under the 2022 Repurchase Plan was $33.3 million, excluding excise tax. The repurchased shares will be retired. Preferred Stock The table below presents a summary of the perpetual preferred stock outstanding at March 31, 2023 and December 31, 2022. Series Description Initial date of issuance Total Shares Outstanding Liquidation Preference per Share (in dollars) Carrying Value (in thousands) Per Annum Dividend Rate Redemption Period Series A (1) 5.75% Cumulative Perpetual December 2021 2,000 $ 25 $ 50,000 5.75 % n/a (1) Ownership is held in the form of Depositary Shares, each representing a 1/1,000th interest in a share of preferred stock, paying a quarterly cash dividend, if and when declared. Dividends Dividends paid on our Series A preferred stock were $0.7 million for each of the three months ended March 31, 2023 and 2022, respectively. |
Revenue from Contract with Cust
Revenue from Contract with Customer | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregation of Revenue The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Residential units revenue Land and lots revenue Residential units revenue Land and lots revenue Primary Geographical Market Central $ 344,464 $ 1,699 $ 261,698 $ 28,861 Southeast 105,898 — 102,963 94 Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Type of Customer Homebuyers $ 450,362 $ — $ 364,661 $ — Homebuilders and Multi-family Developers — 1,699 — 28,955 Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Product Type Residential units $ 450,362 $ — $ 364,661 $ — Land and lots — 1,699 — 28,955 Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Timing of Revenue Recognition Transferred at a point in time $ 449,430 $ 1,699 $ 363,063 $ 28,955 Transferred over time 932 — 1,598 — Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Revenue recognized over time represents revenue from mechanic’s lien contracts. Contract Balances Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands): March 31, 2023 December 31, 2022 Customer and builder deposits $ 36,948 $ 29,112 The difference between the opening and closing balances of customer and builder deposits results from the timing difference between the customers’ payments of deposits and the Company’s delivery of the home, impacted slightly by terminations of contracts. The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, 2023 2022 Type of Customer Homebuyers $ 12,653 $ 20,795 Homebuilders and Multi-Family Developers — 100 Total deposits recognized as revenue $ 12,653 $ 20,895 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations on our land sale and lot option contracts is $5.3 million. The Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur in the remainder of 2023. The timing of lot takedowns is contingent upon a number of factors, including customer needs, the number of lots being purchased, receipt of acceptance of the plat by the municipality, weather-related delays, and agreed-upon lot takedown schedules. Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, |
Compensation Related Costs, Sha
Compensation Related Costs, Share Based Payments | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | SHARE-BASED COMPENSATION The Company’s stock compensation plan, the 2014 Omnibus Equity Incentive Plan, is administered by the Board and allows for the grant of stock awards (“SAs”), restricted stock awards (“RSAs”), performance restricted stock units (“PRSUs”), and stock options. Share-Based Award Activity During the three months ended March 31, 2023, the Company granted SAs to executive officers, RSAs to employees and non-employee members of the Board, and PRSUs to employees. The SAs granted to the executive officers were 100% vested and non-forfeitable on the grant date. Non-vested stock awards are usually granted with a one-year vesting for non-employee directors, two-year cliff vesting for employee RSAs, and three-year cliff vesting for PRSUs. The fair value of all share awards were recorded as share-based compensation expense on the grant date and over the vesting period, respectively. The Company withheld 59,857 shares of common stock from executive officers at a total cost of $2.0 million, to satisfy statutory minimum tax requirements upon grant of the SAs. A summary of share-based awards activity during the three months ended March 31, 2023 is as follows: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Nonvested, December 31, 2022 38 $ 23.94 Granted 179 $ 33.21 Vested (123) $ 33.01 Forfeited — $ — Nonvested, March 31, 2023 94 $ 29.69 Stock Options A summary of stock options activity during the three months ended March 31, 2023 is as follows: Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Options outstanding, December 31, 2022 500 $ 7.49 Granted — — Exercised — — Forfeited — — Options outstanding, March 31, 2023 500 $ 7.49 1.58 $ 13,785 Options exercisable, March 31, 2023 500 $ 7.49 1.58 $ 13,785 Share-Based Compensation Expense |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Three Months Ended March 31, (in thousands) 2023 2022 Revenues: (1) Builder operations Central $ 344,464 $ 261,698 Southeast 105,898 103,057 Total builder operations 450,362 364,755 Land development 1,699 28,861 Total revenues $ 452,061 $ 393,616 Gross profit: Builder operations Central $ 102,405 $ 84,064 Southeast 33,329 25,776 Total builder operations 135,734 109,840 Land development 688 7,414 Corporate, other and unallocated (2) (11,816) (8,898) Total gross profit $ 124,606 $ 108,356 Income before income taxes: Builder operations Central $ 68,017 $ 59,485 Southeast 22,271 15,494 Total builder operations 90,288 74,979 Land development 775 7,585 Corporate, other and unallocated (3) (3,891) 69 Income before income taxes $ 87,172 $ 82,633 March 31, 2023 December 31, 2022 Inventory: Builder operations Central $ 460,388 $ 515,981 Southeast 297,729 293,787 Total builder operations 758,117 809,768 Land development 572,985 570,065 Corporate, other and unallocated (4) 41,912 42,847 Total inventory $ 1,373,014 $ 1,422,680 Goodwill: Builder operations - Southeast $ 680 $ 680 (1) The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. For the three months ended March 31, 2023, Builders did not have revenues from land or lot closings, compared to $0.1 million for the three months ended March 31, 2022. (2) Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments. (3) Corporate, other and unallocated loss before income taxes includes results from Green Brick Title, Ventana Insurance, and investments in unconsolidated subsidiaries, in addition to capitalized cost adjustments that are not allocated to operating segments. (4) Corporate, other and unallocated inventory consists of capitalized overhead and interest related to work in process and land under development. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | The Company’s income tax expense for the three months ended March 31, 2023 and 2022 was $19.0 million and $18.4 million, respectively. The effective tax rate was 21.8% for the three months ended March 31, 2023, compared to 22.3% in the comparable prior year period. The change in the effective tax rate for the three months ended March 31, 2023 relates primarily to the benefit from the 45L Energy Efficient Home Credit enacted by Congress in August 2022 as part of the Inflation Reduction Act of 2022 (“the 2022 Act”). The 2022 Act extends and modifies the new energy efficient home credit that Congress had enacted through the Taxpayer Certainty and Disaster Tax Relief Acts of 2019 and 2020. This tax credit had expired at the end of 2021, but following its enactment in August 2022, the 2022 Act extended the tax credit through 2032. |
Net Income Attributable to Gree
Net Income Attributable to Green Brick Partners, Inc. Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Attributable to Green Brick Partners, Inc. Per Share | The Company’s RSAs have the right to receive forfeitable dividends on an equal basis with common stock and our PRSUs do not participate in dividends with common stock and therefore are not considered participating securities that must be included in the calculation of net income per share using the two-class method. Basic earnings per common share is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding during each period, adjusted for non-vested shares of RSAs and PRSUs during each period. Net income applicable to common stockholders is net income adjusted for preferred stock dividends including dividends declared and cumulative dividends related to the current dividend period that have not been declared as of period end. Diluted earnings per share is calculated using the treasury stock method and includes the effect of all dilutive securities, including stock options and restricted stock awards. The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net income attributable to Green Brick Partners, Inc. $ 64,180 $ 61,577 Cumulative preferred stock dividends (719) (719) Net income applicable to common stockholders $ 63,461 $ 60,858 Weighted-average number of common shares outstanding - basic 45,945 50,586 Basic net income attributable to Green Brick Partners, Inc. per common share $ 1.38 $ 1.20 Weighted-average number of common shares outstanding - basic 45,945 50,586 Dilutive effect of stock options and restricted stock awards 406 338 Weighted-average number of common shares outstanding - diluted 46,351 50,924 Diluted net income attributable to Green Brick Partners, Inc. per common share $ 1.37 $ 1.20 The following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands): Three Months Ended March 31, 2023 2022 Antidilutive options to purchase common stock and restricted stock awards (67) 29 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value of Financial Instruments The Company’s financial instruments, none of which are held for trading purposes, include cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, customer and builder deposits, borrowings on lines of credit, senior unsecured notes, and notes payable. Per the fair value hierarchy, level 1 financial instruments include: cash and cash equivalents, restricted cash, receivables, earnest money deposits, other assets, accounts payable, accrued expenses, and customer and builder deposits due to their short-term nature. The Company estimates that, due to the short-term nature of the underlying financial instruments or the proximity of the underlying transaction to the applicable reporting date, the fair value of level 1 financial instruments does not differ materially from the aggregate carrying values recorded in the condensed consolidated financial statements as of March 31, 2023 and December 31, 2022. Level 2 financial instruments include borrowings on lines of credit, senior unsecured notes, and notes payable. Due to the short-term nature and floating interest rate terms, the carrying amounts of borrowings on lines of credit are deemed to approximate fair value. The estimated fair value of the senior unsecured notes as of March 31, 2023 and December 31, 2022 was $312.1 million and $306.1 million, respectively. The aggregate principal balance of the senior unsecured notes was $337.5 million as of March 31, 2023 and December 31, 2022. There were no transfers between the levels of the fair value hierarchy for any of our financial instruments during the three months ended March 31, 2023 and 2022. |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 |
Related Party Disclosures
Related Party Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | During the three months ended March 31, 2023 and 2022, the Company had the following related party transactions in the normal course of business. Corporate Officers Trevor Brickman, the son of Green Brick’s Chief Executive Officer, is the President of CLH20, LLC (“Centre Living”). Green Brick’s ownership interest in Centre Living is 90% and Trevor Brickman’s ownership interest is 10%. Green Brick has 90% voting control over the operations of Centre Living. As such, 100% of Centre Living’s operations are included within our condensed consolidated financial statements. GRBK GHO GRBK GHO leases office space from entities affiliated with the president of GRBK GHO. During the three months ended March 31, 2023 and 2022, GRBK GHO incurred de minimis and $0.1 million rent expense, respectively, under such lease agreements. As of March 31, 2023, there were no amounts due to the affiliated entities related to such lease agreements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Letters of Credit and Performance Bonds During the ordinary course of business, certain regulatory agencies and municipalities require the Company to post letters of credit or performance bonds related to development projects. As of March 31, 2023 and December 31, 2022, letters of credit and performance bonds outstanding were $3.1 million and $5.0 million. The Company does not believe that it is likely that any material claims will be made under a letter of credit or performance bond in the foreseeable future. Operating Leases The Company has leases associated with office and design center space in Georgia, Texas, and Florida that, at the commencement date, have a lease term of more than 12 months and are classified as operating leases. The exercise of any extension options available in such operating lease contracts is not reasonably certain. Operating lease cost of $0.4 million for each of the three months ended March 31, 2023 and 2022, is included in selling, general and administrative expenses in the condensed consolidated statements of income. Cash paid for amounts included in the measurement of operating lease liabilities was $0.4 million for each of the three months ended March 31, 2023 and 2022. As of March 31, 2023, the weighted-average remaining lease term and the weighted-average discount rate used in calculating our lease liabilities were 4.4 years and 4.0%, respectively. The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of March 31, 2023 are presented below (in thousands): Remainder of 2023 $ 1,028 2024 590 2025 566 2026 504 2027 447 Thereafter 380 Total future lease payments $ 3,515 Less: Interest 328 Present value of lease liabilities $ 3,187 The Company elected the short-term lease recognition exemption for all leases that, at the commencement date, have a lease term of 12 months or less and do not include an option to purchase the underlying asset that the Company is reasonably certain to exercise. For such leases, the Company does not recognize right-of-use assets or lease liabilities and instead recognizes lease payments in the condensed consolidated income statements on a straight-line basis. Short-term lease cost of $0.2 million for each of the three months ended March 31, 2023 and 2022, is included in selling, general and administrative expenses in the condensed consolidated statements of income. Legal Matters Lawsuits, claims and proceedings may be instituted or asserted against us in the normal course of business. The Company is also subject to local, state and federal laws and regulations related to land development activities, house construction standards, sales practices, title company regulations, employment practices and environmental protection. As a result, the Company may be subject to periodic examinations or inquiry by agencies administering these laws and regulations. The Company records an accrual for legal claims and regulatory matters when they are probable of occurring and a potential loss is reasonably estimable. The Company accrues for these matters based on facts and circumstances specific to each matter and revises these estimates when necessary. In view of the inherent difficulty of predicting outcomes of legal claims and related contingencies, the Company generally cannot predict their ultimate resolution, related timing or eventual loss. If evaluations indicate loss contingencies that could be material are not probable, but are reasonably possible, the Company will disclose their nature with an estimate of the possible range of losses or a statement that such loss is not reasonably estimable. We believe that the disposition of legal claims and related contingencies will not have a material adverse effect on our results of operations and liquidity or on our financial condition. |
Significant Accounting Polici_2
Significant Accounting Policies Changes in Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and applicable regulations of the Securities and Exchange Commission (“SEC”), but do not include all of the information and footnotes required for complete financial statements. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements for the periods presented reflect all adjustments of a normal, recurring nature necessary to fairly state our financial position, results of operations and cash flows. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023 or subsequent periods due to seasonal variations and other factors. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes, including the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Real Estate Inventory | A summary of our inventory is as follows (in thousands): March 31, 2023 December 31, 2022 Homes completed or under construction $ 525,571 $ 603,953 Land and lots - developed and under development 796,826 768,194 Land held for future development (1) 48,453 48,369 Land held for sale 2,164 2,164 Total inventory $ 1,373,014 $ 1,422,680 (1) Land held for future development consists of raw land parcels where development activities have been postponed due to market conditions or other factors. All applicable carrying costs, including property taxes, are expensed as incurred. As of March 31, 2023, the Company reviewed the performance and outlook for all of its communities for indicators of potential impairment and performed detailed impairment analysis when such indicators were identified. As of March 31, 2023, the Company performed further impairment analysis of one selling community with indicators of impairment with a combined corresponding carrying value of approximately $26.6 million. For the three months ended March 31, 2023 and 2022, the Company did not record an impairment adjustment to reduce the carrying value of communities to fair value. |
Summary of Real Estate Inventory Capitalized Interest Costs | A summary of interest costs incurred, capitalized, and expensed is as follows (in thousands): Three Months Ended March 31, 2023 2022 Interest capitalized at beginning of period $ 22,752 $ 19,950 Interest incurred 3,743 3,734 Interest charged to cost of revenues (3,648) (2,933) Interest capitalized at end of period $ 22,847 $ 20,751 Capitalized interest as a percentage of inventory 1.7 % 1.6 % |
Payables and Accruals (Tables)
Payables and Accruals (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | March 31, 2023 December 31, 2022 Real estate development reserve to complete (1) $ 32,554 $ 28,793 Warranty reserve 19,532 17,945 Federal income tax payable 19,293 6,334 Accrued compensation 4,970 13,917 Other accrued expenses 32,143 24,292 Total accrued expenses $ 108,492 $ 91,281 |
Schedule of Warranty Activity | Three Months Ended March 31, 2023 2022 Warranty accrual, beginning of period $ 17,945 $ 9,378 Warranties issued 2,045 1,814 Changes in liability for existing warranties 633 295 Settlements made (1,091) (874) Warranty accrual, end of period $ 19,532 $ 10,613 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Lines of Credit Outstanding | Lines of Credit Borrowings on lines of credit outstanding, net of debt issuance costs, as of March 31, 2023 and December 31, 2022 consisted of the following (in thousands): March 31, 2023 December 31, 2022 Secured Revolving Credit Facility $ — $ — Unsecured Revolving Credit Facility — 20,000 Debt issuance costs, net of amortization (2,453) (2,605) Total borrowings on lines of credit, net $ (2,453) $ 17,395 |
Schedule of Debt | March 31, 2023 December 31, 2022 4.00% senior unsecured notes due in 2026 (“2026 Notes”) $ 75,000 $ 75,000 3.35% senior unsecured notes due in 2027 (“2027 Notes”) 37,500 37,500 3.25% senior unsecured notes due in 2028 (“2028 Notes”) 125,000 125,000 3.25% senior unsecured notes due in 2029 (“2029 Notes”) 100,000 100,000 Debt issuance costs, net of amortization (1,580) (1,675) Total senior unsecured notes, net $ 335,920 $ 335,825 |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The following table shows the changes in redeemable noncontrolling interest in equity of consolidated subsidiary during the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Redeemable noncontrolling interest, beginning of period $ 29,239 $ 21,867 Net income attributable to redeemable noncontrolling interest partner 1,365 869 Change in fair value of redeemable noncontrolling interest (313) (557) Redeemable noncontrolling interest, end of period $ 30,291 $ 22,179 |
Compensation Related Costs, S_2
Compensation Related Costs, Share Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Awards Activity | A summary of share-based awards activity during the three months ended March 31, 2023 is as follows: Number of Shares Weighted Average Grant Date Fair Value per Share (in thousands) Nonvested, December 31, 2022 38 $ 23.94 Granted 179 $ 33.21 Vested (123) $ 33.01 Forfeited — $ — Nonvested, March 31, 2023 94 $ 29.69 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Financial information relating to the Company’s reportable segments is as follows. Operational results of each reportable segment are not necessarily indicative of the results that would have been achieved had the reportable segment been an independent, stand-alone entity during the periods presented. Three Months Ended March 31, (in thousands) 2023 2022 Revenues: (1) Builder operations Central $ 344,464 $ 261,698 Southeast 105,898 103,057 Total builder operations 450,362 364,755 Land development 1,699 28,861 Total revenues $ 452,061 $ 393,616 Gross profit: Builder operations Central $ 102,405 $ 84,064 Southeast 33,329 25,776 Total builder operations 135,734 109,840 Land development 688 7,414 Corporate, other and unallocated (2) (11,816) (8,898) Total gross profit $ 124,606 $ 108,356 Income before income taxes: Builder operations Central $ 68,017 $ 59,485 Southeast 22,271 15,494 Total builder operations 90,288 74,979 Land development 775 7,585 Corporate, other and unallocated (3) (3,891) 69 Income before income taxes $ 87,172 $ 82,633 March 31, 2023 December 31, 2022 Inventory: Builder operations Central $ 460,388 $ 515,981 Southeast 297,729 293,787 Total builder operations 758,117 809,768 Land development 572,985 570,065 Corporate, other and unallocated (4) 41,912 42,847 Total inventory $ 1,373,014 $ 1,422,680 Goodwill: Builder operations - Southeast $ 680 $ 680 (1) The sum of Builder operations Central and Southeast segments’ revenues does not equal residential units revenue included in the condensed consolidated statements of income in periods when our builders have revenues from land or lot closings. For the three months ended March 31, 2023, Builders did not have revenues from land or lot closings, compared to $0.1 million for the three months ended March 31, 2022. (2) Corporate, other and unallocated gross loss is comprised of capitalized overhead and capitalized interest adjustments that are not allocated to builder operations and land development segments. (3) Corporate, other and unallocated loss before income taxes includes results from Green Brick Title, Ventana Insurance, and investments in unconsolidated subsidiaries, in addition to capitalized cost adjustments that are not allocated to operating segments. (4) Corporate, other and unallocated inventory consists of capitalized overhead and interest related to work in process and land under development. |
Net Income Attributable to Gr_2
Net Income Attributable to Green Brick Partners, Inc. Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted net income attributable to Green Brick Partners, Inc. per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net income attributable to Green Brick Partners, Inc. $ 64,180 $ 61,577 Cumulative preferred stock dividends (719) (719) Net income applicable to common stockholders $ 63,461 $ 60,858 Weighted-average number of common shares outstanding - basic 45,945 50,586 Basic net income attributable to Green Brick Partners, Inc. per common share $ 1.38 $ 1.20 Weighted-average number of common shares outstanding - basic 45,945 50,586 Dilutive effect of stock options and restricted stock awards 406 338 Weighted-average number of common shares outstanding - diluted 46,351 50,924 Diluted net income attributable to Green Brick Partners, Inc. per common share $ 1.37 $ 1.20 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares which could potentially dilute earnings per share in the future are not included in the determination of diluted net income attributable to Green Brick Partners, Inc. per common share (in thousands): Three Months Ended March 31, 2023 2022 Antidilutive options to purchase common stock and restricted stock awards (67) 29 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Warranty Activity | Three Months Ended March 31, 2023 2022 Warranty accrual, beginning of period $ 17,945 $ 9,378 Warranties issued 2,045 1,814 Changes in liability for existing warranties 633 295 Settlements made (1,091) (874) Warranty accrual, end of period $ 19,532 $ 10,613 |
Lessee, Operating Lease, Liability, Maturity | The future annual undiscounted cash flows in relation to the operating leases and a reconciliation of such undiscounted cash flows to the operating lease liabilities recognized in the condensed consolidated balance sheet as of March 31, 2023 are presented below (in thousands): Remainder of 2023 $ 1,028 2024 590 2025 566 2026 504 2027 447 Thereafter 380 Total future lease payments $ 3,515 Less: Interest 328 Present value of lease liabilities $ 3,187 |
Significant Accounting Polici_3
Significant Accounting Policies Leases, Adoption of ASC 842 (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Lease, Liability | $ 3,187 | $ 3,582 |
Operating Lease, Right-of-Use Asset | $ 3,076 | $ 3,458 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Finished Homes and Homes under Construction | $ 525,571 | $ 603,953 | |
Inventory, Real Estate, Land and Land Development Costs | 796,826 | 768,194 | |
Inventory, Land Held-for-sale | 2,164 | 2,164 | |
Total inventory | $ 1,373,014 | 1,422,680 | |
Document Period End Date | Mar. 31, 2023 | ||
Earnest Money Deposits and Pre-acquisition Costs Written-Off | $ 10 | $ 59 | |
Land held for future development | 48,453 | $ 48,369 | |
Carrying value of inventory evaluated for impairment | $ 26,600 |
Inventory (Capitalization of In
Inventory (Capitalization of Interest) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Real Estate Inventory, Capitalized Interest Costs [Roll Forward] | ||
Interest capitalized at beginning of period | $ 22,752 | $ 19,950 |
Interest incurred | 3,743 | 3,734 |
Interest charged to cost of revenues | (3,648) | (2,933) |
Interest capitalized at end of period | $ 22,847 | $ 20,751 |
Document Period End Date | Mar. 31, 2023 | |
Capitalized interest as a percentage of inventory | 1.70% | 1.60% |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Summary of Financial Information of Investment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||||
Company’s share in net earnings of unconsolidated entities | $ 4,221 | $ 5,687 | ||
Assets | 1,706,456 | $ 1,655,675 | ||
Liabilities | 549,563 | 543,621 | ||
Stockholders' Equity Attributable to Parent | 1,114,154 | 912,183 | 1,061,907 | $ 874,548 |
Stockholders' Equity Attributable to Noncontrolling Interest | 12,448 | 10,178 | 20,908 | 14,146 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,126,602 | 922,361 | 1,082,815 | 888,694 |
Liabilities and Equity | 1,706,456 | 1,655,675 | ||
Total revenues | 452,061 | 393,616 | ||
Net income | 68,141 | 64,196 | ||
Cash | 66,083 | 78,696 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 12,448 | 10,178 | 20,908 | 14,146 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,126,602 | 922,361 | 1,082,815 | 888,694 |
Total revenues | 452,061 | 393,616 | ||
Net income | 68,141 | 64,196 | ||
Equity in income of unconsolidated entities | 4,221 | 5,687 | ||
Assets | 1,706,456 | 1,655,675 | ||
Cash | 66,083 | 78,696 | ||
Liabilities | 549,563 | 543,621 | ||
Stockholders' Equity Attributable to Parent | 1,114,154 | 912,183 | 1,061,907 | $ 874,548 |
Liabilities and Equity | 1,706,456 | 1,655,675 | ||
Equity Method Investment Nonconsolidated Investees | ||||
Income Statement [Abstract] | ||||
Company’s share in net earnings of unconsolidated entities | 4,221 | 5,687 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in income of unconsolidated entities | 4,221 | 5,687 | ||
Equity Method Investment Nonconsolidated Investees | ||||
Income Statement [Abstract] | ||||
Assets | 248,925 | 244,531 | ||
Liabilities | 103,545 | 104,827 | ||
Stockholders' Equity Attributable to Parent | 73,569 | 70,812 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 71,811 | 68,892 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 145,380 | 139,704 | ||
Liabilities and Equity | 248,925 | 244,531 | ||
Total revenues | 58,323 | 70,636 | ||
Net income | 8,597 | 11,439 | ||
Cash | 12,009 | 15,265 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 71,811 | 68,892 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 145,380 | 139,704 | ||
Total revenues | 58,323 | 70,636 | ||
Net income | 8,597 | 11,439 | ||
Accounts and Other Receivables, Net, Current | 5,945 | 4,972 | ||
Financing Receivable, after Allowance for Credit Loss | 12,341 | 10,381 | ||
Financing Receivable, Held-for-Sale | 3,155 | 8,829 | ||
Inventory, Net | 205,206 | 195,732 | ||
Other Assets, Current | 10,269 | 9,352 | ||
Accounts Payable, Current | 13,873 | 10,166 | ||
Accrued Liabilities, Current | 12,612 | 12,177 | ||
Notes Payable, Current | 77,060 | 82,484 | ||
Costs and Expenses | 49,726 | $ 59,197 | ||
Assets | 248,925 | 244,531 | ||
Cash | 12,009 | 15,265 | ||
Liabilities | 103,545 | 104,827 | ||
Stockholders' Equity Attributable to Parent | 73,569 | 70,812 | ||
Liabilities and Equity | $ 248,925 | $ 244,531 |
Investment in Unconsolidated _3
Investment in Unconsolidated Entities (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Goodwill | $ 680 | $ 680 | |
Investments in unconsolidated entities | 77,059 | $ 74,224 | |
Equity in income of unconsolidated entity | $ 4,221 | $ 5,687 |
Investment in Unconsolidated _4
Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of unconsolidated entities | $ 4,221 | $ 5,687 | |
Investments in unconsolidated entities | 77,059 | $ 74,224 | |
GB Challenger, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of unconsolidated entities | 3,025 | 4,067 | |
Investments in unconsolidated entities | 51,043 | 49,897 | |
GBTM Sendera, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | 15,839 | 14,319 | |
EJB River Holdings, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of unconsolidated entities | 503 | 738 | |
Investments in unconsolidated entities | 9,057 | 8,554 | |
BHome Mortgage, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of unconsolidated entities | 693 | 554 | |
Investments in unconsolidated entities | 1,120 | 1,147 | |
Green Brick Mortgage, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of unconsolidated entities | 328 | ||
Investments in unconsolidated entities | 0 | $ 307 | |
Equity Method Investment Nonconsolidated Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in income of unconsolidated entities | $ 4,221 | $ 5,687 |
Payables and Accruals (Details)
Payables and Accruals (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||||
Inventory, Real Estate, Land and Land Development Costs | $ 796,826 | $ 768,194 | ||
other accrued liabilities [Line Items] | ||||
Inventory, Real Estate, Land and Land Development Costs | 796,826 | 768,194 | ||
Standard Product Warranty Accrual | 19,532 | 17,945 | $ 10,613 | $ 9,378 |
Accrued expenses | 108,492 | 91,281 | ||
Accrued Expenses | ||||
Payables and Accruals [Abstract] | ||||
Inventory, Real Estate, Land and Land Development Costs | 32,554 | 28,793 | ||
other accrued liabilities [Line Items] | ||||
Accrued Income Taxes | 19,293 | 6,334 | ||
Inventory, Real Estate, Land and Land Development Costs | 32,554 | 28,793 | ||
Standard Product Warranty Accrual | 19,532 | 17,945 | ||
Accrued Bonuses | 4,970 | 13,917 | ||
Other Accrued Liabilities | 32,143 | 24,292 | ||
Other Accrued Liabilities | $ 32,143 | $ 24,292 |
Debt (Schedule of Lines of Cred
Debt (Schedule of Lines of Credit Outstanding) (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 09, 2022 | Jul. 30, 2015 | |
Line of Credit Facility [Line Items] | |||||
Document Period End Date | Mar. 31, 2023 | ||||
Debt issuance costs, net of amortization | $ (2,453,000) | $ (2,605,000) | |||
Debt Issuance Costs, Line of Credit Arrangements, Net | 2,453,000 | 17,395,000 | |||
Letters of Credit Outstanding, Amount | 3,100,000 | 5,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 35,000,000 | ||||
Payments of Debt Issuance Costs | 72,000 | $ 86,000 | |||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Line of Credit | 0 | 0 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325,000,000 | $ 35,000,000 | |||
Unsecured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Line of Credit | $ 0 | $ (20,000,000) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 3 Months Ended | |||||||||||||||
Mar. 31, 2023 | Mar. 31, 2022 | Feb. 28, 2029 | Feb. 28, 2028 | Feb. 08, 2028 | Feb. 08, 2027 | Aug. 08, 2026 | Aug. 08, 2025 | Feb. 25, 2025 | Feb. 08, 2025 | Aug. 08, 2024 | Feb. 25, 2024 | Dec. 31, 2022 | Dec. 09, 2022 | Feb. 07, 2022 | Jul. 30, 2015 | |
Debt Instrument [Line Items] | ||||||||||||||||
Document Period End Date | Mar. 31, 2023 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.60% | |||||||||||||||
Payments of Debt Issuance Costs | $ 72,000 | $ 86,000 | ||||||||||||||
Debt issuance costs, net of amortization | (2,453,000) | $ (2,605,000) | ||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 35,000,000 | |||||||||||||||
Senior Notes | 335,920,000 | 335,825,000 | ||||||||||||||
Letters of Credit Outstanding, Amount | 3,100,000 | 5,000,000 | ||||||||||||||
2026 Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 75,000,000 | 75,000,000 | ||||||||||||||
2027 Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 37,500,000 | 37,500,000 | ||||||||||||||
2028 Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 125,000,000 | 125,000,000 | ||||||||||||||
2029 Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 100,000,000 | 100,000,000 | ||||||||||||||
Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt issuance costs, net of amortization | (1,580,000) | (1,675,000) | ||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325,000,000 | $ 35,000,000 | ||||||||||||||
Borrowings on lines of credit | $ 0 | $ 0 | ||||||||||||||
Forecast [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | $ 70,000,000 | $ 30 | $ 25,000,000 | $ 25,000,000 | $ 50,000,000 | $ 12,500,000 | $ 25,000,000 | $ 25,000,000 | $ 12,500,000 | $ 25,000,000 |
Business Combination (Narrative
Business Combination (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets acquired | |||||
Goodwill | $ 680 | $ 680 | |||
Liabilities assumed | |||||
Homebuilding revenues | 452,061 | $ 393,616 | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 87,172 | 82,633 | |||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 1,365 | 869 | |||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | 30,291 | 22,179 | $ 29,239 | $ 21,867 | |
Noncontrolling Interest, Change in Redemption Value | $ (313) | $ 557 | |||
GHO Homes [Member] | |||||
Liabilities assumed | |||||
Ownership percentage by noncontrolling owners | 20% |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Apr. 27, 2023 | Apr. 27, 2022 | |
Equity [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||
Dividends, Cash | $ (700) | |||
Payments for Repurchase of Common Stock | 15,351 | $ 25,801 | ||
Stock Repurchased and Retired During Period, Shares | 1,193,037 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 33,300 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||
Subsequent Event [Member] | ||||
Equity [Abstract] | ||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Disaggregation of Revenue | The following reflects the disaggregation of revenue by primary geographic market, type of customer, product type, and timing of revenue recognition for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Residential units revenue Land and lots revenue Residential units revenue Land and lots revenue Primary Geographical Market Central $ 344,464 $ 1,699 $ 261,698 $ 28,861 Southeast 105,898 — 102,963 94 Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Type of Customer Homebuyers $ 450,362 $ — $ 364,661 $ — Homebuilders and Multi-family Developers — 1,699 — 28,955 Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Product Type Residential units $ 450,362 $ — $ 364,661 $ — Land and lots — 1,699 — 28,955 Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Timing of Revenue Recognition Transferred at a point in time $ 449,430 $ 1,699 $ 363,063 $ 28,955 Transferred over time 932 — 1,598 — Total revenues $ 450,362 $ 1,699 $ 364,661 $ 28,955 Revenue recognized over time represents revenue from mechanic’s lien contracts. | ||||
Opening and Closing Contract Balances Included in Customer and Builder Deposits on Balance Sheet and Deposits Recognized as Revenue | Opening and closing contract balances included in customer and builder deposits on the condensed consolidated balance sheets are as follows (in thousands): March 31, 2023 December 31, 2022 Customer and builder deposits $ 36,948 $ 29,112 The amount of deposits on residential units and land and lots held as of the beginning of the period and recognized as revenue during the three months ended March 31, 2023 and 2022 are as follows (in thousands): Three Months Ended March 31, 2023 2022 Type of Customer Homebuyers $ 12,653 $ 20,795 Homebuilders and Multi-Family Developers — 100 Total deposits recognized as revenue $ 12,653 $ 20,895 | ||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 452,061 | $ 393,616 | |||
Revenue recognized | 12,653 | 20,895 | |||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | 30,291 | 22,179 | $ 29,239 | $ 21,867 | |
Contract with Customer, Liability | 36,948 | $ 29,112 | |||
Residential Real Estate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 450,362 | 364,661 | |||
Residential Real Estate [Member] | Transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 449,430 | 363,063 | |||
Residential Real Estate [Member] | Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 932 | 1,598 | |||
Real Estate, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,699 | 28,955 | |||
Real Estate, Other [Member] | Transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,699 | 28,955 | |||
Real Estate, Other [Member] | Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 0 | 0 | |||
Homebuilders [Member] | Residential Real Estate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 0 | 0 | |||
Revenue recognized | 0 | 100 | |||
Homebuilders [Member] | Real Estate, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,699 | 28,955 | |||
Homebuyers [Member] | Residential Real Estate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 450,362 | 364,661 | |||
Revenue recognized | 12,653 | 20,795 | |||
Homebuyers [Member] | Real Estate, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 0 | 0 | |||
Central | Residential Real Estate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 344,464 | 261,698 | |||
Central | Real Estate, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,699 | 28,861 | |||
Southeast [Domain] | Residential Real Estate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 105,898 | 102,963 | |||
Southeast [Domain] | Real Estate, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 0 | 94 | |||
Land Subdivider and Developers | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 1,699 | 28,861 | |||
Land Subdivider and Developers | Residential Real Estate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 0 | 0 | |||
Homebuilders [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 450,362 | 364,755 | |||
Homebuilders [Member] | Real Estate, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 100 | ||||
Homebuilders [Member] | Land and Lots [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | 0 | 0 | |||
Homebuilders [Member] | Southeast [Domain] | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenues | $ 105,898 | $ 103,057 |
Revenue Recognition (Transactio
Revenue Recognition (Transaction Price Allocated to Remaining Performance Obligations) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Remaining Performance Obligation, Expected Timing of Satisfaction | he Company will recognize the remaining revenue when the lots are taken down, or upon closing for the sale of a land parcel, which is expected to occur in the remainder of 2023. |
Revenue, Practical Expedient, Remaining Performance Obligation, Description | Our contracts with homebuyers have a duration of less than one year. As such, the Company uses the practical expedient as allowed under ASC 606, Revenue from Contracts with Customers, and therefore has not disclosed the transaction price allocated to remaining performance obligations as of the end of the reporting period. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 5.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Compensation Related Costs, S_3
Compensation Related Costs, Share Based Payments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 6 months 29 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 500,000 | 500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 7.49 | $ 7.49 | |
Granted (in shares) | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 13,785 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 7.49 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 6 months 29 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 13,785 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 29.69 | $ 23.94 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 94,000 | 38,000 | |
Granted (in dollars per share) | $ 33.21 | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (59,857) | (46,415) | |
Share-based compensation expense | $ 5,499 | $ 2,923 | |
Compensation cost not yet recognized | $ 2,700 | ||
Period for recognition | 2 years | ||
Percentage of awards vested and forfeitable at time of grant | 100% | ||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ 1,976 | $ 1,075 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 123,000 | ||
Vested (in dollars per share) | $ 33.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Document Period End Date | Mar. 31, 2023 | ||
Forfeited (in dollars per share) | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 179,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Entity Emerging Growth Company | false | ||
Revenues: | |||
Total revenues | $ 452,061 | $ 393,616 | |
Gross profit: | |||
Gross Profit | 124,606 | 108,356 | |
Income before income taxes: | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 87,172 | 82,633 | |
Inventory | |||
Inventory | 1,373,014 | $ 1,422,680 | |
Goodwill | |||
Goodwill | 680 | 680 | |
Inventory | 1,373,014 | 1,422,680 | |
Corporate and Other [Member] | |||
Gross profit: | |||
Gross Profit | (11,816) | (8,898) | |
Income before income taxes: | |||
Results of Operations, Income before Income Taxes | (3,891) | 69 | |
Goodwill | |||
Inventory | 41,912 | 42,847 | |
Southeast [Domain] | |||
Goodwill | |||
Goodwill | 680 | 680 | |
Homebuilders [Member] | |||
Revenues: | |||
Total revenues | 450,362 | 364,755 | |
Gross profit: | |||
Gross Profit | 135,734 | 109,840 | |
Income before income taxes: | |||
Results of Operations, Income before Income Taxes | 90,288 | 74,979 | |
Goodwill | |||
Inventory | 758,117 | 809,768 | |
Homebuilders [Member] | Southeast [Domain] | |||
Revenues: | |||
Total revenues | 105,898 | 103,057 | |
Gross profit: | |||
Gross Profit | 33,329 | 25,776 | |
Income before income taxes: | |||
Results of Operations, Income before Income Taxes | 22,271 | 15,494 | |
Goodwill | |||
Inventory | 297,729 | 293,787 | |
Homebuilders [Member] | Central | |||
Gross profit: | |||
Gross Profit | 102,405 | 84,064 | |
Income before income taxes: | |||
Results of Operations, Income before Income Taxes | 68,017 | 59,485 | |
Goodwill | |||
Inventory | 460,388 | 515,981 | |
Homebuilders [Member] | Central America | |||
Revenues: | |||
Total revenues | 344,464 | 261,698 | |
Land Subdivider and Developers | |||
Revenues: | |||
Total revenues | 1,699 | 28,861 | |
Gross profit: | |||
Gross Profit | 688 | 7,414 | |
Income before income taxes: | |||
Results of Operations, Income before Income Taxes | 775 | 7,585 | |
Goodwill | |||
Inventory | 572,985 | $ 570,065 | |
Real Estate, Other [Member] | |||
Revenues: | |||
Total revenues | 1,699 | 28,955 | |
Real Estate, Other [Member] | Southeast [Domain] | |||
Revenues: | |||
Total revenues | 0 | 94 | |
Real Estate, Other [Member] | Central | |||
Revenues: | |||
Total revenues | 1,699 | 28,861 | |
Real Estate, Other [Member] | Homebuilders [Member] | |||
Revenues: | |||
Total revenues | 100 | ||
Residential Real Estate [Member] | |||
Revenues: | |||
Total revenues | 450,362 | 364,661 | |
Residential Real Estate [Member] | Southeast [Domain] | |||
Revenues: | |||
Total revenues | 105,898 | 102,963 | |
Residential Real Estate [Member] | Central | |||
Revenues: | |||
Total revenues | 344,464 | 261,698 | |
Residential Real Estate [Member] | Land Subdivider and Developers | |||
Revenues: | |||
Total revenues | 0 | 0 | |
Land and Lots [Member] | Homebuilders [Member] | |||
Revenues: | |||
Total revenues | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 19,031 | $ 18,437 |
Effective tax rate | 21.80% | 22.30% |
Net Income Attributable to Gr_3
Net Income Attributable to Green Brick Partners, Inc. Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Green Brick Partners, Inc. | $ 64,180 | $ 61,577 |
Weighted-average number of shares outstanding —basic (in shares) | 45,945 | 50,586 |
Basic net income attributable to Green Brick Partners, Inc. per share (in dollars per share) | $ 1.38 | $ 1.20 |
Dilutive effect of stock options and restricted stock awards (in shares) | 406 | 338 |
Weighted-average number of shares outstanding —diluted (in shares) | 46,351 | 50,924 |
Diluted net income attributable to Green Brick Partners, Inc. per share (in dollars per share) | $ 1.37 | $ 1.20 |
Net Income Attributable to Gr_4
Net Income Attributable to Green Brick Partners, Inc. Per Share (Antidilutive Options Excluded From Calculation of Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Antidilutive options to purchase common stock and restricted stock awards (in shares) | (67) | (29) |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Carrying Value and Estimated Fair Value of Financial Instruments) (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Debt Instrument, Fair Value Disclosure | $ 312.1 |
Notes Payable | $ 14.4 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |
Costs and Expenses, Related Party | $ 0.1 |
Centre Living | |
Related Party Transactions [Abstract] | |
Ownership percentage by noncontrolling owners | 10% |
Related Party Transaction [Line Items] | |
Ownership percentage by noncontrolling owners | 10% |
Ownership percentage by parent | 90% |
Office Space Lease Agreements | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Amounts of Transaction | $ 0 |
GHO Homes [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Amounts of Transaction | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Warranty activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Letters of Credit Outstanding, Amount | $ 3,100 | $ 5,000 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty accrual, beginning of period | 17,945 | $ 9,378 | |
Warranties issued | 2,045 | 1,814 | |
Standard Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | 633 | 295 | |
Settlements made | (1,091) | (874) | |
Warranty accrual, end of period | $ 19,532 | $ 10,613 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Annual Minimum Operating Lease Payments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Lease, Liability | $ 3,187 | $ 3,582 |
Remainder of 2023 | 1,028 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 566 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 504 | |
2021 | 447 | |
Total future lease payments | 3,515 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 590 | |
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 380 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 328 |
Commitments and Contingencies O
Commitments and Contingencies Operating Leases Disclosures - ASC 842 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Earnest Money Deposits and Pre-acquisition Costs Written-Off | $ 10 | $ 59 |
Short-term Lease, Cost | 200 | 200 |
Operating Lease, Expense | 400 | 400 |
Operating Lease, Payments | $ 400 | $ 400 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 4 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4% |