On this page of StockholderLetter.com we present the 4/19/2023 shareholder letter from Green Brick Partners, Inc. — ticker symbol GRBK. Reading current and past GRBK letters to shareholders can bring important insights into the investment thesis.
2022 A N N UA L REPORT
Trophy Signature Homes | Bretton Woods | Frisco, TX Cover image: Trophy Signature Homes | Park Vista | Frisco, TX
S HARE HO L DE R LE T T E R We are pleased to report that during 2022 our dedicated, hardworking employees worked as a team and overcame numerous supply chain and labor challenges, as well as a more difficult sales environment. As a result, Green Brick Partners produced 2022 record total revenues of $1.76 billion, record gross profit of $523 million, record after tax income of $292 million, record high homebuilding gross margins of 30%, record diluted earnings per share of $6.02 and a record return on equity of 31.4%. To top it off, we accomplished this while reducing our debt-to-total capital to 25.7% at year-end while our long-term debt had an average cost of 3.4% with an average maturity of 4.4 years. And unlike many peers, we used no high-cost off balance sheet land banking capital that distorts risk and debt-to-total capital calculations. We believe that a builder s profit starts with superior land investment and lot development expertise. We also believe we have one of the best lot and land positions, operate in the best markets and have the best land development teams in the business. About 80% of our full year revenues were generated in more supply constrained lower risk locations. These superior locations are usually the last to recede when sales slowdown, as sales did in the third and fourth quarter in 2022. These higher quality locations are usually among the first to recover. We do not provide earnings guidance because we think the pressure to meet analysts and some investors short-term expectations is a bad way to run a long-term business. At the same time, we want to update shareholders that our newest largest neighborhoods that opened in the first two months of 2023 are selling well at very nice margins and our cancellation rate continues to drop. So, we are entering 2023 cautiously optimistic. We are always a buyer for well-located land at the right price, but we have a great pipeline of lots. Our focus in 2023 will be on continuing to improve our building operations and efficiency. We also expect to generate significant free cash flow in 2023. In terms of capital allocation, our emphasis will be expanding our value proposition Trophy Signature Homes brand in current and new markets and weighing Trophy s expansion returns against share repurchases and other investment opportunities. +550 bps 31.4% 25.9% 2021 2022 Return On Equity +62% $6.02 $3.72 2021 2022 Earnings Per Share +340 bps 29.8% 26.4% 2021 2022 Homebuilding Gross Margin Thank you for your interest and support. We hope you can visit us in person at current location or our new Plano Legacy Park headquarters location in the fall of 2023. DAVID EINHORN Chairman & Co-Founder JAMES R. BRICKMAN CEO & Co-Founder 3
AB OU T GR E E N BR I CK PARTN E R S Green Brick Partners and its subsidiaries are a diversified homebuilding and land development company. We acquire and develop land and build homes through our 8 brands of builders in five major markets across four states. Green Brick offers a wide range of products that includes single-family homes, townhomes, and condominiums through its subsidiary builders. We are traded under the ticker GRBK on the New York Stock Exchange and are included in Russell 2000 and S&P SmallCap 600 Indexes. Our total revenues have grown almost five-fold from $299 million in 2015 to $1.76 billion in 2022. We have been named by Fortune Magazine as one of the fastest growing public homebuilders and land developers in the country for four consecutive years. This growth is a product of our core values and business philosophies. We are founded on the belief that locally focused land development is the starting point for a builder s profitability and that both homebuilding and land development are best executed on a decentralized basis. Our builders have deep roots in the communities they serve and decades-long relationships with local political, subcontractor, and realtor networks. Financial and operating systems are managed at our corporate headquarters in Plano, Texas. These integrated systems allow our builders to use standardized real-time data to assess and run their business more efficiently. While each of our builders is locally branded and managed, all of them are united by Green Brick Partners common set of values we call HOME, which stands for Honesty, Objectivity, Maturity, and Efficiency. COMPANY H IS TO RY Asset purchase of CB JENI Homes Founding of Centre Living Homes and Normandy Homes JBGL (Predecessor) closed first deal Asset purchase of The Providence Group 2009 2011 Name change to Green Brick Partners Founding of Southgate Homes 2012 2013 Green Brick Title formed 2014 2015 JBGL contributes its assets in a reverse recapitaliza on Green Brick Partners started trading on NASDAQ Joined Russell 2000 Index Raised $174M through an oversubscribed stock offering 4
8 Brands $1.76 BILLION Total revenues $292 MILLION After-tax income 2,916 Homes delivered 25,527 Lots owned and controlled 540 Employees Represents stats for full year 2022 or as of December 31, 2022 Acquisi on of 49.9% interest in Challenger Homes 2017 Asset purchase of GHO Homes Founding of Trophy Signature Homes 2018 The Providence Group | Bellmoore Park | Johns Creek, GA Named by Fortune one of the Fastest Growing Companies for the fourth consecu ve year Announced Aus n expansion through Trophy Signature Homes Bought 100% interest in Southgate Homes Bought 100% interest in CB JENI Homes BHome Mortgage JV formed 2019 Ini al investment grade long term note issuance with Pruden al Total long term notes have grown to $338M as of December 31, 2022 2020 2021 2022 Completed lis ng transfer and began trading on NYSE Raised $50M through preferred shares Achieved total revenues above $1 billion for the first me 10% share buyback Joined S&P SmallCap 600 Index Unsecured lines of credit upsized to $325M Record breaking total revenues of $1.76B Record breaking a er-tax income of $292M 5
 • shareholder letter icon 4/19/2023 Letter Continued (Full PDF)
 • stockholder letter icon 3/18/2024 GRBK Stockholder Letter
 • stockholder letter icon 3/11/2025 GRBK Stockholder Letter
 • stockholder letter icon 4/1/2026 GRBK Stockholder Letter
 • stockholder letter icon More "General Contractors & Builders" Category Stockholder Letters
 • Benford's Law Stocks icon GRBK Benford's Law Stock Score = 96


GRBK 4/19/2023 Shareholder/Stockholder Letter Transcript:

2022
A N N UA L
REPORT

Trophy Signature Homes | Bretton Woods | Frisco, TX
Cover image: Trophy Signature Homes | Park Vista | Frisco, TX

S HARE HO L DE R LE T T E R
We are pleased to report that during 2022 our dedicated, hardworking
employees worked as a team and overcame numerous supply chain and labor
challenges, as well as a more difficult sales environment. As a result, Green
Brick Partners produced 2022 record total revenues of $1.76 billion, record
gross profit of $523 million, record after tax income of $292 million, record
high homebuilding gross margins of 30%, record diluted earnings per share of
$6.02 and a record return on equity of 31.4%. To top it off, we accomplished
this while reducing our debt-to-total capital to 25.7% at year-end while our
long-term debt had an average cost of 3.4% with an average maturity of 4.4
years. And unlike many peers, we used no high-cost off balance sheet land
banking capital that distorts risk and debt-to-total capital calculations.
We believe that a builder   s profit starts with superior land investment and lot
development expertise. We also believe we have one of the best lot and land
positions, operate in the best markets and have the best land development
teams in the business. About 80% of our full year revenues were generated
in more supply constrained lower risk locations. These superior locations are
usually the last to recede when sales slowdown, as sales did in the third and
fourth quarter in 2022. These higher quality locations are usually among the
first to recover.
We do not provide earnings guidance because we think the pressure to meet
analysts    and some investors    short-term expectations is a bad way to run a
long-term business. At the same time, we want to update shareholders that
our newest largest neighborhoods that opened in the first two months of
2023 are selling well at very nice margins and our cancellation rate continues
to drop. So, we are entering 2023 cautiously optimistic.
We are always a buyer for well-located land at the right price, but we have a
great pipeline of lots. Our focus in 2023 will be on continuing to improve our
building operations and efficiency.
We also expect to generate significant free cash flow in 2023. In terms of
capital allocation, our emphasis will be expanding our value proposition
Trophy Signature Homes brand in current and new markets and weighing
Trophy   s expansion returns against share repurchases and other investment
opportunities.
+550 bps
31.4%
25.9%
2021
2022
Return On Equity
+62%
$6.02
$3.72
2021
2022
Earnings Per Share
+340 bps
29.8%
26.4%
2021
2022
Homebuilding Gross Margin
Thank you for your interest and support. We hope you can visit us in person
at current location or our new Plano Legacy Park headquarters location in
the fall of 2023.
DAVID EINHORN
Chairman & Co-Founder
JAMES R. BRICKMAN
CEO & Co-Founder
3

AB OU T GR E E N BR I CK PARTN E R S
Green Brick Partners and its subsidiaries are a diversified homebuilding and land development company. We acquire
and develop land and build homes through our 8 brands of builders in five major markets across four states. Green
Brick offers a wide range of products that includes single-family homes, townhomes, and condominiums through its
subsidiary builders. We are traded under the ticker    GRBK    on the New York Stock Exchange and are included in Russell
2000 and S&P SmallCap 600 Indexes. Our total revenues have grown almost five-fold from $299 million in 2015
to $1.76 billion in 2022. We have been named by Fortune Magazine as one of the fastest growing public
homebuilders and land developers in the country for four consecutive years. This growth is a product of our core
values and business philosophies.
We are founded on the belief that locally focused land development is the starting point for a builder   s profitability and
that both homebuilding and land development are best executed on a decentralized basis. Our builders have deep roots
in the communities they serve and decades-long relationships with local political, subcontractor, and realtor networks.
Financial and operating systems are managed at our corporate headquarters in Plano, Texas. These integrated systems
allow our builders to use standardized real-time data to assess and run their business more efficiently. While each of
our builders is locally branded and managed, all of them are united by Green Brick Partners    common set of values we
call HOME, which stands for Honesty, Objectivity, Maturity, and Efficiency.
COMPANY H IS TO RY
    Asset purchase of
CB JENI Homes
    Founding of Centre
Living Homes and
Normandy Homes
    JBGL (Predecessor)
closed first deal
    Asset purchase of
The Providence Group
2009
2011
    Name change to
Green Brick Partners
    Founding of
Southgate Homes
2012
2013
    Green Brick Title formed
2014
2015
    JBGL contributes its
assets in a reverse
recapitaliza on
    Green Brick Partners
started trading on
NASDAQ
    Joined Russell 2000 Index
    Raised $174M through an
oversubscribed stock offering
4

8 Brands
$1.76 BILLION
Total revenues
$292 MILLION
After-tax income
2,916
Homes delivered
25,527
Lots owned and controlled
540 Employees
Represents stats for full year 2022 or as of December 31, 2022
    Acquisi on of 49.9%
interest in Challenger
Homes
2017
    Asset purchase of
GHO Homes
    Founding of Trophy
Signature Homes
2018
The Providence Group | Bellmoore Park | Johns Creek, GA
    Named by Fortune one of
the Fastest Growing
Companies for the fourth
consecu ve year
    Announced Aus n
expansion through
Trophy Signature Homes
    Bought 100% interest
in Southgate Homes     Bought 100% interest in
CB JENI Homes
    BHome Mortgage JV
formed
2019
    Ini al investment grade
long term note issuance
with Pruden al
    Total long term notes
have grown to $338M
as of December 31, 2022
2020
2021
2022
    Completed lis ng
transfer and began
trading on NYSE
    Raised $50M through
preferred shares
    Achieved total revenues
above $1 billion for the
first  me
    10% share buyback
    Joined S&P SmallCap
600 Index
    Unsecured lines of
credit upsized to $325M
    Record breaking total
revenues of $1.76B
    Record breaking a  er-tax
income of $292M
5


shareholder letter icon 4/19/2023 Letter Continued (Full PDF)
 

GRBK Stockholder/Shareholder Letter (Green Brick Partners, Inc.) 4/19/2023 | www.StockholderLetter.com
Copyright © 2023 - 2026, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.