Green Brick Partners, Inc. (NYSE:GRBK) Q2 2023 Earnings Conference Call August 3, 2023 12:00 PM ET
Company Participants
Jim Brickman - Co-Founder and CEO
Rick Costello - Chief Financial Officer
Jed Dolson - Chief Operating Officer
Conference Call Participants
Carl Reichardt - BTIG
Alex Rygiel - B. Riley
Jay McCanless - Wedbush
Operator
Good afternoon. And welcome to Green Brick Partners Earnings Call for the Second Quarter ended June 30, 2023. Following today’s remarks, we will hold a Q&A session. As a reminder, this call is being recorded and will be available for playback. In addition, a presentation will accompany today’s webcast and also is available on the company website at investors.greenbank -- sorry, investors.greenbrickpartners.com.
Joining us on the call today is Jim Brickman, Co-Founder and Chief Executive Officer; Rick Costello, Chief Financial Officer; and Jed Dolson, Chief Operating Officer.
Some of the information discussed on this call is forward-looking, including the company’s financial and operational expectations for 2023 and beyond. In yesterday’s press release and SEC filings, the company detailed material risks that may cause its future results to differ from its expectations. The company’s statements are as of today, August 3, 2023, and the company has no obligation to update any forward-looking statements it may make.
The comments also include non-GAAP financial metrics. The reconciliation of these metrics and the other information required by Regulation G can be found in the earnings release that the company issued yesterday and in the presentation available on the company website.
With that, I turn the call over to Jim Brickman.
Jim Brickman
Thank you. I am pleased to report that Green Brick delivered another outstanding quarter, highlighted by our 27.2% annualized return on book equity for the second quarter. The level of execution displayed by our teams and reflected in our key performance metrics has been extraordinary.
During the second quarter, we delivered 783 homes, generating $454 million in home closing revenues. This is the second highest in company history. Most notably, our homebuilding gross margin increased 370 basis points sequentially to 31.3%, the highest among public homebuilders as shown on slide five. This is only 110 basis points lower than our record high homebuilding gross margin of 32.4% achieved in Q3 2022.
Net income during the second quarter was $75 million. Earnings per diluted share was $1.63, which was up 19% sequentially and the second highest diluted EPS in company history. We believe our exceptional results are result of our infill and infill adjacent locations, self-development land strategy and focus on operational efficiency.