Green Brick Partners, Inc. (NYSE:GRBK) Q3 2022 Earnings Conference Call November 3, 2022 12:00 PM ET
Company Participants
Jim Brickman - Co-Founder & Chief Executive Officer
Rick Costello - Chief Financial Officer
Jed Dolson - Chief Operating Officer
Conference Call Participants
Carl Reichardt - BTIG
Jay McCanless - Wedbush
Alex Rygiel - B. Riley Securities
Alex Barron - Housing Research Center
Operator
Good afternoon and welcome to Green Brick Partners Earnings Call for the Third Quarter Ended September 30, 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 2022 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 November 3, 2022 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's website.
With that, I will now turn the call over to Jim Brickman.
Jim Brickman
Thank you. During our call today, we are going to discuss the current housing landscape, Green Brick's overall business strategy, and our land and lot position in much more detail than in past calls. Rick will discuss Q3, 2022 financial results in-depth, and then, Jed, will discuss the market dynamics, capital allocation strategy and our supply chain.
We are pleased to report another strong quarter despite multiple challenges the homebuilding industry is facing. Residential revenue for the third quarter of 2022 increase 17.1% year-over-year to $397 million, based on an increase in our average sales price of 33%. This contributed to a record high homebuilding gross margin of 32.4%.
As a result, the company generated $74 million in net income, or $1.57 per diluted share, representing a year-over-year increase of 65%. Year to date, annualized return on equity was 34.9%, about 1,100 basis points higher than last year. We believe this demonstrates our ability to consistently deliver superior returns to our shareholders.