Green Brick Partners, Inc. (NYSE:GRBK) Q4 2023 Earnings Call Transcript

James Brickman: Well, actually, we rank them internally but not externally. So I really can’t share [multiple speakers].

Carl Reichardt: See a chance to do it externally, Jim.

James Brickman: Yes — but it’s an interesting process. And I’ll give you an example. We were looking at a very low land transaction in Austin yesterday that’s unique. We’ve been working on it for a very long time. We have a very similar deal in Dallas that we’ve been working on for a very long time. We have a very long firm deal. We’ve been looking in Atlanta. We’ve been trying — working on the entitlement for 2 years. And we’re waiting to see how all those things play out against buying stock and investing more in our business. I can say that we probably aren’t going to be an acquirer of a private builder, everybody ask how is your A&D looking. I look at deals. Actually, the deal flows have slowed down because I think all of the boutique brokers know that any of the deals that they show us are not going to be accretive to our earnings. So our deal flow from an acquisition of a private builder is virtually stopped.

Richard Costello: And Carl, you could see from, I believe, Jed mentioned that our land finished lot and land development spend is going to go up from $430 million to over $700 million or approximately $700 million. That’s subject to deals penciling out and getting ready to close, like Jim just mentioned, as these things require constant attention. But that’s quite an increase. Our cash flow is exceedingly strong, given our margins, given our increasing volumes, et cetera. So it’s a good problem to have. We’re still with $180 million on the balance sheet, nothing drawn on $360 million of lines of credit. We have tremendous liquidity and the ability to move in a moment. So it’s clearly a function of what presents itself in terms of being ready to close on the land side.

Carl Reichardt: That makes a lot of sense. All right, thanks. Appreciate that.

Operator: Since there are no further questions at this time and it does conclude today’s conference call. Thank you so much, and you may now disconnect.