Green Brick Partners, Inc. (NASDAQ: GRBK), Plano, Texas, late Monday reported net income of $13.1 million, or $0.16 per share, for the four quarter of 2016 ended Dec. 31. The gain was up from $7.1 million, or $0.10 per share, in the comparable quarter in 2015. Analysts polled by Dow Jones were expecting a gain of $0.14 per share.
Builder operations revenue for the quarter was $117.0 million, an increase of 55.8%, compared to $75.1 million in the 2015 quarter. Land development revenue in the quarter was $2.8 million compared to $10.4 million in the fourth quarter of 2015. The decrease in land development revenue is due to an increase in lot sales to Green Brick's builders where revenue is not recognized until the home closes.
The dollar value of backlog units as of December 31, 2016 was $108.0 million, an increase of 22.6% compared to December 31, 2015. The average sales price of homes in backlog increased approximately $17,335, or 4.0%, to $455,823 for the year ended December 31, 2016, compared to $438,488 for the year ended December 31, 2015.
Homes under construction increased 11.2% to 564 as of December 31, 2016, compared to 507 as of December 31, 2015.
"Our superior land and lot positions combined with a significant improvement in our operations resulted in pre-tax earnings for the fourth quarter of $13.7 million, up 80% over 2015," said James R. Brickman, Green Brick's CEO. "Pre-tax earnings for the year of $39.0 million was up 60% over 2015 and backlog was up 23% compared to December 31, 2015. Yet again, we are 100% engaged to continue to improve our results in 2017."
Green Brick is structured as a combination of residential land development and home building company. It acquires and develops land, provides land and construction financing to its controlled builders and participates in the profits of its controlled builders. The company owns a controlling interest in four home-building companies in Dallas, Texas (CB JENI Homes DFW LLC, Normandy Homes (a division of CB JENI), Southgate Homes DFW LLC, and Centre Living Homes, LLC), as well as The Providence Group of Georgia, L.L.C. in Atlanta.