Green Brick Partners, Inc. (NYSE:GRBK) Q4 2022 Earnings Conference Call February 28, 2023 12:00 PM ET
Company Participants
Jim Brickman - Co-Founder and Chief Executive Officer
Rick Costello - Chief Financial Officer
Jed Dolson - Chief Operating Officer
Conference Call Participants
Michael Rehaut - JPMorgan
Max Downie - BTIG
Alex Rygiel - B. Riley
Jay McCanless - Wedbush
Operator
Good afternoon and welcome to the Green Brick Partners' Earnings Call for the Fourth Quarter ended December 31, 2022. 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 is also available on the company's website at 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, February 28, 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 then the presentation available on the company's website.
With that, I will now turn the call over to Jim Brickman.
Jim Brickman
Thank you. I am extremely proud that Green Brick finished the year with a record number delivery of over 2,900 homes. Total revenues grew 25% year-over-year to $1.76 billion with an industry-leading gross margin of 29.8%. Our full-year earnings per share increased 62% to $6.02 and return on equity was up 550 basis points from last year to 31.4%. Both measures are the highest in company history.
Despite a record-breaking year, demand was negatively impacted by rising interest rates and consistently high inflation in the second half of the year. However, sales momentum started to pick up in December during a seasonally slower period. December sales were up 43% over the average of the prior six months.
Sales activity in the first two months of 2023 continued to be very strong. We believe our sales success is based upon our geographic footprint with desirable lots in supply constrained locations in Dallas, Atlanta, and Florida. These markets have some of the strongest demographic tailwinds and job growth in the country.