Green Brick Partners(GRBK) - 2024 Q4 - Annual Report

Home Deliveries and Sales - Home deliveries increased by 21.1% to 3,783 units, while home closings revenue rose by 17.1% to $2,069,756,000 compared to the previous year[147] - Average sales price of homes delivered decreased by 3.4% to$ 547,100 due to product mix and high mortgage rates[147] - Net new home orders increased by 9.7% to 3,681, with revenue from these orders rising by 2.9% to $2,010,439,000[151] - Backlog revenue decreased by 10.7% to$ 495,883,000, driven by a 13.2% decrease in backlog units[153] Financial Performance - Total revenues for 2024 reached $2,098,943, a 18.1% increase from$ 1,777,710 in 2023[228] - Net income attributable to Green Brick Partners, Inc. for 2024 was $381,583, representing a 34.1% increase compared to$ 284,626 in 2023[228] - Gross profit for 2024 was $703,521, up 28.3% from$ 548,182 in 2023[228] - Basic earnings per share increased to $8.51 in 2024, compared to$ 6.20 in 2023, reflecting a 37.2% growth[228] - The company reported a total gross profit margin of approximately 33.5% for 2024, compared to 30.8% in 2023[228] Assets and Liabilities - Total assets as of December 31, 2024, were $2,249,994, a 18.2% increase from$ 1,902,832 in 2023[225] - Total liabilities remained relatively stable at $551,831 in 2024, compared to$ 548,684 in 2023[225] - The company’s investments in unconsolidated entities decreased to $60,582 in 2024 from$ 84,654 in 2023, a reduction of 28.5%[225] - The company’s total liabilities for unconsolidated entities decreased to $30,843,000 in 2024 from$ 67,117,000 in 2023, a decline of 54.0%[340] Cash Flow and Capital Structure - Unrestricted cash and cash equivalents decreased to $141.5 million in 2024 from$ 179.8 million in 2023[171] - Net cash provided by operating activities significantly dropped to $25.9 million in 2024, compared to$ 213.3 million in 2023[180] - Cash and cash equivalents decreased to $141,543 in 2024 from$ 179,756 in 2023, a decline of 21.2%[225] - The debt to total capitalization ratio was approximately 17.2% as of December 31, 2024, indicating a stable financial structure[175] - Net debt to total capitalization ratio remained low at 10.7% as of December 31, 2024, with a target of approximately 20% for growth capital[176] Inventory and Development - Total inventory increased to $1,937.7 million as of December 31, 2024, compared to$ 1,533.2 million as of December 31, 2023[320] - The company’s inventory, including homes completed or under construction and land and lots inventory, was valued at $1,938 million as of December 31, 2024[220] - The increase in inventory was significant at$ 403,312 in 2024, compared to $109,243 in 2023[234] Expenses and Costs - Selling, general and administrative expenses as a percentage of revenue remained stable at 10.8% for the year[159] - Income tax expense rose to$ 94,700,000 from $84,600,000, attributed to higher taxable income[164] - Depreciation expense for the year ended December 31, 2024, totaled$ 4,800,000, up from $3,500,000 in 2023, representing a 37.1% increase[341] Shareholder Equity and Dividends - The company paid dividends of$ 2.9 million on the Series A Preferred Stock for both 2024 and 2023[189] - Total stockholders' equity is projected to reach $1,625,415,000 by December 31, 2024[231] - The company repurchased 860,659 shares of treasury stock for$ 48,035,000 during the reporting period[231] Other Income and Expenses - Other income increased to $29,800,000, up from$ 19,400,000, mainly due to a gain from the sale of an investment[163] - The company recognized a gain of $10,700,000 from the sale of its 49.9% ownership interest in GB Challenger, LLC, receiving approximately$ 64,000,000 in cash[338] Risk Factors - The company’s operations are sensitive to interest rate changes, which could adversely affect revenues, gross margins, and net income[209] - The Company performs ongoing reassessments to determine if it is the primary beneficiary of any Variable Interest Entities (VIEs) it may have[263]