Green Brick Partners, Inc. (NASDAQ: GRBK), Plano, Tx., reported a profit of $6.2 million for the third quarter ended Sept. 30, or $0.13 per share, an increase of 116.7% from the same quarter last year. Wall Street was looking for a gain of 11 cents a share.

For the quarter, the company reported:

  • Pre-tax income of $9.9 million, an increase of 111.8%, compared to $4.7 million for the three months ended September 30, 2015.
  • Gross profit of $22.3 million, an increase of 41.6%, compared to $15.7 million for the prior-year quarter.
  • Revenue of $91.7 million, an increase of 21.9%, compared to $75.2 million for the year-earlier period.
  • Closings up 27.3% to 196, closing revenue up 27% to $87.8 million.
  • Orders up 45.7% to 204.

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

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

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

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