Green Brick Partners Inc (GRBK) 2025 Q2 法說會逐字稿

Good afternoon and welcome to the Green Brick Partners second quarter 2025 earnings conference call.

下午好，歡迎參加 Green Brick Partners 2025 年第二季財報電話會議。

I would now like to turn the call over to Jeff Cox, Interim Chief Financial Officer. Thank you. Please go ahead.

現在我想將電話轉給臨時財務長傑夫考克斯 (Jeff Cox)。謝謝。請繼續。

Good afternoon and welcome to Green Brick Partners earnings call for the second quarter ended June 30, 2025. Following today's remarks, we will hold a question-and-answer 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.

下午好，歡迎參加 Green Brick Partners 截至 2025 年 6 月 30 日的第二季財報電話會議。今天的發言結束後，我們將舉行問答環節。提醒一下，本次通話正在錄音，可供播放。此外，今天的網路直播還將附帶一份演示文稿，也可在公司網站 investors.greenbrickpartners.com 上查閱。

On the call today is Jim Brickman, Co-Founder and Chief Executive Officer; Jed Dolson, President and Chief Operating Officer; and myself, Jeff Cox, Interim Chief Financial Officer.

今天參加電話會議的有聯合創始人兼首席執行官 Jim Brickman、總裁兼首席營運官 Jed Dolson 以及我本人，臨時首席財務官 Jeff Cox。

Some of the information discussed on this call is forward-looking, including a discussion of the company's financial and operational expectations for 2025 and beyond.

本次電話會議討論的一些資訊具有前瞻性，包括對公司 2025 年及以後的財務和營運預期的討論。

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, July 30, 2025, and the company has no obligation to update any forward-looking statement it may make.

在昨天的新聞稿和美國證券交易委員會的文件中，該公司詳細說明了可能導致其未來業績與預期不同的重大風險。該公司的聲明截至今天，即 2025 年 7 月 30 日，本公司沒有義務更新其可能做出的任何前瞻性聲明。

The comments also include non-GAAP financial metrics, 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.

這些評論還包括非公認會計準則財務指標、這些指標的調節以及 G 條例要求的其他信息，這些信息可以在公司昨天發布的收益報告和公司網站上的演示文稿中找到。

With that, I'll turn the call over to Jim.

說完這些，我就把電話轉給吉姆。

Thank you, Jeff. I'm pleased to announce our second quarter results, particularly given the ongoing and persistent affordability challenges faced by many consumers in this housing market.

謝謝你，傑夫。我很高興地宣布我們的第二季業績，特別是考慮到這個房地產市場的許多消費者持續面臨負擔能力的挑戰。

Net income attributable to Green Brick for the second quarter was $82 million or $1.85 per diluted share. As we exited the spring selling season, our performance remained strong despite high interest rates and decreasing consumer confidence. We were focused on balancing price and pace to maximize returns in each of our communities.

第二季歸屬於 Green Brick 的淨收入為 8,200 萬美元，即每股 1.85 美元。隨著春季銷售旺季的結束，儘管利率高企且消費者信心下降，但我們的業績依然強勁。我們專注於平衡價格和速度，以最大化每個社區的回報。

Our builders and their sales teams were able to adapt quickly to changing market conditions to drive traffic and sales. As a result, we set several company records during the quarter. For one, we achieved a record for closings by delivering 1,042 homes, and two, we achieved a record for net new orders of 908, which was the highest for any second quarter in company history.

我們的建築商及其銷售團隊能夠快速適應不斷變化的市場條件，以推動流量和銷售。因此，我們在本季創下了多項公司記錄。一方面，我們交付了 1,042 套房屋，創下了成交量紀錄；另一方面，我們實現了 908 份淨新訂單，創下了公司歷史上第二季度的最高紀錄。

Year over year, both home closings and net new orders increased to approximately 6%, though revenue for the quarter was virtually flat year over year at $547 million. As Jet will discuss in more detail, maintaining that sales volume required price concessions and other incentives as we address the affordability challenges raised in this high interest rate environment.

與去年同期相比，房屋成交量和淨新訂單均增長至約 6%，但本季營收與去年同期基本持平，為 5.47 億美元。正如 Jet 將更詳細地討論的那樣，在我們解決高利率環境下出現的負擔能力挑戰時，堅持銷售量需要價格優惠和其他激勵措施。

As expected, these dynamics put downward pressure on our home building gross margins, which declined 410 basis points year over year and 80 basis points sequentially to 30.4%. Nonetheless, our gross margins remained the highest in the public home building industry and mark the ninth consecutive quarter in which our gross margins exceeded 30%.

正如預期的那樣，這些動態對我們的房屋建築毛利率造成了下行壓力，毛利率年減 410 個基點，環比下降 80 個基點，至 30.4%。儘管如此，我們的毛利率仍然是公共住宅建築業中最高的，並且連續第九個季度我們的毛利率超過 30%。

Additionally, we returned $60 million of capital to our shareholders in the first half of 2025 through share repurchases, and we still have another $40 million of authorization remaining under our buyback program. Since 2022, we have repurchased approximately 7.9 million shares, reducing our outstanding share account by approximately 16%.

此外，我們在 2025 年上半年透過股票回購向股東返還了 6,000 萬美元的資本，而我們的回購計畫仍有 4,000 萬美元的授權剩餘。自 2022 年以來，我們已回購約 790 萬股，使我們的流通股帳戶減少了約 16%。

Looking ahead, our strategic focus remains on maintaining operational excellence while navigating ongoing market volatility. We are laser focused on maintaining an investment grade balance sheet with our disciplined approach and land acquisition while at the same time ensuring that we are well positioned for future growth.

展望未來，我們的策略重點仍然是維持卓越運營，同時應對持續的市場波動。我們專注於透過嚴謹的方法和土地收購來維持投資等級資產負債表，同時確保我們為未來的成長做好準備。

Our continued emphasis on efficient cost controls, innovative home offerings, and targeted expansion in high volume markets supports our goal of sustaining industry leading profitability metrics and creating long-term shareholder value.

我們持續強調高效的成本控制、創新的家居產品以及在大容量市場的有針對性的擴張，以支持我們維持行業領先的盈利指標和創造長期股東價值的目標。

We are particularly encouraged by the positive reception of our Trophy signature homes brand, which continues to outperform expectations and resonates strongly with both first time and move up buyers. The continued expansion of Trophy in DFW in Austin, along with the upcoming entry into the Houston market later this year, presents significant opportunities as we believe it will allow us to further diversify our revenue base, strengthen our presence in key Texas markets, and provide a runway for sustained growth over the next few years.

我們對我們的 Trophy 標誌性住宅品牌的積極反響感到特別鼓舞，該品牌的表現繼續超出預期，並受到首次購房者和升級購房者的強烈共鳴。Trophy 在奧斯汀 DFW 的持續擴張，以及今年稍後即將進入休斯頓市場，為我們帶來了重大機遇，因為我們相信這將使我們能夠進一步實現收入基礎多元化，加強我們在德克薩斯州主要市場的影響力，並為未來幾年的持續增長奠定基礎。

As we remain vigilant in monitoring macroeconomic trends and adapting to shifts in buyer preferences, we believe that our experienced team and robust land pipeline and desirable infill and infill adjacent locations will drive continued success in the quarters to come.

由於我們始終密切關注宏觀經濟趨勢並適應買家偏好的變化，我們相信，我們經驗豐富的團隊、強大的土地儲備以及理想的填充和填充鄰近位置將在未來幾個季度繼續取得成功。

With that, I'll now turn it over to Jeff to provide more detail regarding our financial results.

現在，我將把時間交給傑夫，讓他提供有關我們財務表現的更多詳細資訊。

Thank you, Jim. As Jim mentioned earlier, we achieved a couple of new records this quarter for home closings and net new orders. Given the challenging economic conditions and increased supply of housing inventory in our markets, discounts and incentives increased year over year as a percentage of residential unit revenue to 7.7% from 4.5%.

謝謝你，吉姆。正如吉姆之前提到的，本季我們在房屋成交量和淨新訂單方面創下了幾個新紀錄。鑑於嚴峻的經濟狀況和市場住房庫存供應的增加，折扣和獎勵佔住宅單位收入的比例同比增長，從 4.5% 上升至 7.7%。

Our average sales price also declined by 5.3% year over year to $525,000 as our affiliated builders adjusted quickly to meet market demand. Home closing revenue was virtually unchanged compared to the same period last year as $547 million. And home building growth margins decreased 410 basis points year over year and 80 basis points sequentially to 30.4% due to higher discounts and incentives primarily for mortgage buy downs.

由於我們的附屬建築商迅速調整以滿足市場需求，我們的平均銷售價格也較去年同期下降 5.3% 至 525,000 美元。房屋成交收入與去年同期相比幾乎沒有變化，為 5.47 億美元。由於抵押貸款買斷的折扣和激勵措施增加，房屋建築成長利潤率年減 410 個基點，較上季下降 80 個基點，至 30.4%。

SG&A as a percentage of residential unit revenue for the second quarter increased by 40 basis points year over year to 10.9% as we continue to invest in our future growth.

由於我們持續投資於未來的成長，第二季銷售、一般及行政費用佔住宅單位收入的百分比年增 40 個基點，達到 10.9%。

As a result of lower average sales prices and gross margins, net income attributable to Green Brick for the second quarter decreased 22% year over year to $82 million and diluted earnings per share decreased 20% from our record quarterly earnings in the second quarter of 2024 to $1.85 per share.

由於平均銷售價格和毛利率較低，第二季歸屬於 Green Brick 的淨收入年減 22% 至 8,200 萬美元，每股攤薄收益較 2024 年第二季創紀錄的季度收益下降 20% 至每股 1.85 美元。

Our effective tax rate also increased to 21.9% from 18.5%, due in part to a one-time benefit last year associated with stock options exercised in the second quarter of 2024.

我們的有效稅率也從 18.5% 上升至 21.9%，部分原因是去年與 2024 年第二季行使的股票選擇權相關的一次性福利。

Year-to-date delivery increased 8% year over year to 1,952 homes, and our average sales price declined 2.5% to $534,000. As a result, we generated home closing revenue of just over $1 billion, which increased 5.3% year-to-date from the same period in 2024.

年初至今的交屋量年增 8% 至 1,952 套房屋，平均售價下降 2.5% 至 534,000 美元。結果，我們創造了略高於 10 億美元的房屋成交收入，比 2024 年同期成長了 5.3%。

Home building growth margin decreased 320 basis points to 30.8%. Year-to-date net income attributable to Green Brick decreased 16.8% to $157 million and diluted earnings per share declined 15% to $3.52. As a reminder, we sold our 49.9% interest in challenger homes in the first quarter of last year, which had the impact of adding $0.21 to 2024 diluted earnings per share.

房屋建築成長幅度下降320個基點至30.8%。年初至今，歸屬於Green Brick的淨利潤下降16.8%至1.57億美元，稀釋每股收益下降15%至3.52美元。需要提醒的是，我們去年第一季出售了挑戰者住宅公司(Challenger Homes) 49.9%的股權，這導致2024年稀釋每股收益增加0.21美元。

Net new home orders during the second quarter moderated from a record level of 1,106 in the first quarter of 2025, but we're up 6.2% year over year to 908. Year-to-date, net new home orders increased 4.6% year over year to 2014.

第二季淨新房訂單量較 2025 年第一季創紀錄的 1,106 套有所放緩，但年增 6.2%，達到 908 套。年初至今，新屋淨訂單較 2014 年同期成長 4.6%。

Our average active selling communities remained relatively unchanged year over year at approximately 102, a third of which were Trophy communities, and our sales pace for the second quarter increased 4.7% to approximately three homes per month compared to 2.8 homes per month in the previous year.

我們的平均活躍銷售社區與去年同期相比基本保持不變，約為 102 個，其中三分之一為 Trophy 社區，第二季度的銷售速度增長 4.7%，達到每月約 3 套房屋，而去年同期為每月 2.8 套。

With our continued investment in land and in particular larger master plan communities, our average lot count per owned and controlled community increased 26.3% from the same period last year.

隨著我們對土地，特別是大型總體規劃社區的持續投資，我們擁有和控制的每個社區的平均地塊數量比去年同期增加了 26.3%。

We increased our starts by 10% from the previous quarter to 950 to better match our sales pace, but year over year starts still declined by 3.4%. Units under construction at the end of the quarter were down marginally by 1.1% to approximately 2,200 units.

我們的開工數量較上一季增加了 10%，達到 950 套，以更好地匹配我們的銷售速度，但同比開工數量仍下降了 3.4%。本季末在建屋數量小幅下降 1.1% 至約 2,200 套。

We will continue to monitor market conditions and adjust our start space to manage our inventory levels accordingly. Due to a higher proportion of quick move in sales coupled with a 13-day improvement in our average construction cycle time, our backlog value at the end of the second quarter decreased 21% year over year to $516 million.

我們將繼續監測市場狀況並調整起始空間以相應地管理我們的庫存水準。由於快速銷售比例較高，加上平均施工週期縮短了 13 天，我們第二季末的積壓訂單價值較去年同期下降 21% 至 5.16 億美元。

Backlog the average sales price decreased 3.3% to $707,000 due primarily to higher discounts and incentives. Trophy, our spec home builder, represented only 15% of our overall backlog value, consistent with previous quarters, but they accounted for nearly half of our closing volume.

積壓的平均銷售價格下降 3.3% 至 707,000 美元，主要原因是折扣和獎勵增加。我們的規範住宅建築商 Trophy 僅占我們整體積壓訂單價值的 15%，與前幾季一致，但他們卻佔了我們成交量的近一半。

Lastly, we believe our investment grade balance sheet continues to serve as a solid foundation for future growth, providing us with exceptional financial strength to navigate market headwinds and deploy capital opportunistically.

最後，我們相信，我們的投資等級資產負債表將繼續為未來的成長奠定堅實的基礎，為我們應對市場逆風和適時部署資本提供卓越的財務實力。

At the end of the second quarter, our net debt to total capital ratio declined to 9.4%, and our debt to total capital ratio was only 14.4%, the lowest level since 2015 and among the best of our small and mid-cap public home building peers.

截至第二季末，我們的淨負債與總資本比率下降至9.4%，負債與總資本比率僅為14.4%，為2015年以來的最低水平，在中小型上市房屋建築同業中處於領先地位。

Our long term notes bear interest at a low average fixed rate of 3.4%. At the end of the quarter, we maintained a robust cash position of $112 million with no outstanding borrowings on our syndicated line of credit.

我們的長期票據的平均固定利率較低，為 3.4%。截至本季末，我們維持了 1.12 億美元的穩健現金狀況，且銀團信貸額度上沒有未償還借款。

With total liquidity of $477 million we believe we are well positioned to weather more challenging market conditions, to opportunistically deploy capital to maximize shareholder returns, and to accelerate growth as the housing market improves.

憑藉 4.77 億美元的總流動資金，我們相信我們有能力應對更具挑戰性的市場條件，抓住機會部署資本以最大化股東回報，並隨著房地產市場的改善而加速成長。

With that, I'll now turn it over to Jed.

現在，我將把發言權交給傑德。

Thank you, Jeff. We believe a combination of high interest rates, seasonality and weakened consumer confidence contributed to a more challenging quarter compared to the prior year. Demand was impacted across all of our markets, but especially within our Trophy brand, as interest rates ticked up over 7% for portions of April and May.

謝謝你，傑夫。我們認為，高利率、季節性因素和消費者信心減弱等因素導致本季的經營狀況比去年同期更加艱難。我們所有市場的需求都受到了影響，尤其是 Trophy 品牌，因為 4 月和 5 月部分時間利率上漲了 7% 以上。

However, our builders were quick to adapt to the evolving market conditions and regained traction in sales volumes in the latter part of the quarter. Trophy in particular, which represented 52% of net new orders by volume, saw its orders grow by 9.3% year over year.

然而，我們的建築商迅速適應了不斷變化的市場條件，並在本季後半段重新獲得了銷售量的拉力。尤其是 Trophy，其訂單量佔淨新訂單量的 52%，其訂單量年增 9.3%。

While our cancellation rate for the second quarter increased sequentially to 9.9% from 9.2% in the previous year, it continued to remain among the lowest in the public homebuilding industry, and we believe demonstrates the creditworthiness of our buyers quality of our product and desirability of the land and lot positions where we build.

雖然我們第二季的取消率從去年的 9.2% 環比上升至 9.9%，但仍是公共住宅建築業中最低的，我們相信這表明了我們買家的信譽、我們產品的品質以及我們建造的土地和地段位置的吸引力。

We continue to address the affordability challenges faced by consumers by providing our homebuyers with price concessions and allowances towards interest rate buydowns and closing costs. Incentives for net new orders during the second quarter were higher by 320 bps year over year and 100 bps sequentially, increasing to 7.7%.

我們持續向購屋者提供價格優惠以及利率降低和成交費用補貼，以解決消費者面臨的負擔能力挑戰。第二季淨新訂單激勵年增 320 個基點，較上季增加 100 個基點，增至 7.7%。

These tools proved effective in driving traffic and sales philosophy, especially with our quick move-in homes, with our superior infill and infill adjacent communities and industry-leading gross margins, we believe we are well positioned to adjust pricing as needed to meet market demand and maintaining our sales pace.

這些工具在推動流量和銷售理念方面被證明是有效的，特別是我們的快速入住房屋，憑藉我們優越的填充和填充鄰近社區以及行業領先的毛利率，我們相信我們完全有能力根據需要調整價格以滿足市場需求並保持我們的銷售速度。

While we recognize the importance of preserving our margins, we also recognize that our industry-leading margins provide us with significant additional pricing flexibility to compete effectively in a volatile market.

雖然我們認識到保持利潤率的重要性，但我們也認識到，我們行業領先的利潤率為我們提供了顯著的額外定價靈活性，使我們能夠在動蕩的市場中有效競爭。

Green Brick mortgage, which launched in the latter half of 2024, continue to roll out its operation within our DFW community and planned expansion into Austin, Atlanta and Houston later this year and early next year. Green Brick mortgage closed and funded over 140 loans during the second quarter with an average FICO for 745 and an average debt-to-income ratio of 38%, consistent with the previous quarter.

Green Brick 抵押貸款於 2024 年下半年推出，將繼續在我們的 DFW 社區內開展業務，並計劃在今年稍後和明年年初擴展到奧斯汀、亞特蘭大和休士頓。Green Brick 抵押貸款公司在第二季完成並提供了超過 140 筆貸款，平均 FICO 為 745，平均債務收入比為 38%，與上一季持平。

We are excited about the future prospects of our wholly owned mortgage company is that it continues to increase its capture rate, provide top-tier service to our home buyers and gives us increased visibility into our backlog.

我們對我們的全資抵押貸款公司的未來前景感到興奮，因為它將繼續提高其捕獲率，為我們的購房者提供一流的服務，並讓我們更清楚地了解我們的積壓訂單。

Operationally, we continue to make meaningful strides in reducing costs and enhancing our operational efficiency. The cost for labor and materials for homes closed this quarter was down approximately 4,000 homes compared to the same period last year.

在營運方面，我們在降低成本和提高營運效率方面繼續取得重大進展。本季成交房屋的人工和材料成本與去年同期相比下降了約 4,000 套。

Furthermore, we achieved a major milestone by reducing our average construction cycle funds to just under five months. This is an improvement of 13 days from a year ago. In particular, Trophy's average cycle time in DSW was only 3.5 months.

此外，我們將平均建設週期資金縮短至不到五個月，並實現了一個重要的里程碑。這比一年前提高了 13 天。尤其是Trophy在DSW的平均週期時間僅3.5個月。

Labor availability remains relatively stable across all of our markets. We recognize the concerns surrounding tariffs and continue to work closely with our vendors and suppliers to mitigate any potential impact.

我們所有市場的勞動力供給都保持相對穩定。我們認識到圍繞關稅的擔憂，並繼續與我們的供應商和供應商密切合作，以減輕任何潛在的影響。

We believe tariffs will have a minimal impact on our closings and our earnings this year, although we acknowledge that the lack of certainty with respect to final tariff timing, scope or percentages make it impossible to analyze potential tariff impact with precision.

我們相信，關稅對我們今年的收盤價和收益的影響將微乎其微，儘管我們承認，由於最終關稅時間、範圍或百分比缺乏確定性，因此無法準確分析潛在的關稅影響。

As we navigate through various macro challenges, we are carefully recalibrating our capital allocation plan to align both our long-term growth objectives and respond to challenging market conditions.

在應對各種宏觀挑戰的過程中，我們正在仔細重新調整我們的資本配置計劃，以協調我們的長期成長目標並應對充滿挑戰的市場條件。

During the quarter, we spent $49 million on land and lot acquisition and another $85 million on land development, bringing our year-to-date spend to $109 million and $139 million, respectively. We continue to project approximately $300 million in land and development spending for the full year of 2025, which we believe is laying the foundation for strong growth in subsequent years.

本季度，我們花了 4,900 萬美元用於土地和地塊收購，又花了 8,500 萬美元用於土地開發，使我們年初至今的支出分別達到 1.09 億美元和 1.39 億美元。我們繼續預測 2025 年全年的土地和開發支出約為 3 億美元，我們相信這為接下來幾年的強勁成長奠定了基礎。

Given the strength of our existing land pipeline, we remain patient and selective with future land opportunities without compromising the ability to grow our business in the near in intermediate term.

鑑於我們現有的土地儲備實力，我們將對未來的土地機會保持耐心和選擇性，同時不會損害我們近期或中期業務成長的能力。

At the end of the second quarter, we grew our total lots and owned income control by 21% year over year to 40,200, of which over 35,000 were owned on our balance sheet and approximately 5,000 were controlled. Trophy comprises approximately 70% of our total lots under one controlled.

截至第二季末，我們的總地塊數和自有收入控制量年增 21%，達到 40,200 塊，其中資產負債表上擁有超過 35,000 塊，控制量約為 5,000 塊。獎盃約占我們所有拍品總數的 70%，且受同一家公司控制。

Excluding approximately 25,000 lots and long-term master plan communities or lot supply is approximately five years. Lastly, we are on schedule to open our first community in Houston. The construction of our first model home will begin in August with our grand opening plan this fall. We are excited about expanding Trophy's footprint into one of the largest homebuilding markets in the US.

不包括約 25,000 個地塊和長期總體規劃社區或地塊供應約為五年。最後，我們將按計劃在休士頓開設我們的第一個社區。我們的第一間樣品屋將於八月開始建造，並計劃於今年秋天盛大開幕。我們很高興能夠將 Trophy 的業務範圍擴展到美國最大的住宅建築市場之一。

With that, I'll turn it over to Jim for closing remarks.

接下來，我將把發言權交給吉姆，請他做最後發言。

Thank you, Jed. As the housing market continues to evolve, we believe we are well positioned to navigate these market dynamics more effectively than our peers, and strategically position ourselves for future growth. I also want to thank our dedicated employees for their hard work and contributions.

謝謝你，傑德。隨著房地產市場的不斷發展，我們相信我們有能力比同業更有效地駕馭這些市場動態，並為未來的成長做好策略定位。我還要感謝我們敬業的員工的辛勤工作和貢獻。

Their tireless efforts, expertise and dedication have been instrumental and driving our company's success even in the face of challenging market conditions. This concludes our prepared remarks, and we will now open the line for questions.

他們的不懈努力、專業知識和奉獻精神對我們公司的成功起到了重要作用，即使在充滿挑戰的市場條件下也是如此。我們的準備好的演講到此結束，現在我們將開始回答問題。

(Operator Instructions)

（操作員指示）

Rohit Seth, B. Riley Securities.

Rohit Seth，B. Riley 證券。

Hey, thanks for taking my question. My question -- first one is on the incentive trajectory. Just keep incentives up to close to 8%. Curious to see what the incentive run rate is so far in July and we expect to further increases as we go through the year?

嘿，謝謝你回答我的問題。我的問題——第一個問題是關於激勵軌跡的。只需將激勵措施保持在接近 8% 的水平即可。想知道截至目前七月份的激勵執行率是多少，我們預期全年激勵執行率還會進一步增加嗎？

Yeah. Hi, this is Jim. We don't forward look July. We're just trying to explain June right now. But generally, we're seeing things level out, but things are still very spotty by neighborhood. We look at our sales report every morning and try Jed's more active than this than anyone else in our business. But talk to me one week, we're really excited. We think things are picking up. Incentives are going down in the next week, it's a total change in the neighborhood.

是的。你好，我是吉姆。我們不展望七月。我們現在只是想解釋六月。但總體而言，我們看到情況正在趨於平穩，但各個社區的情況仍然參差不齊。我們每天早上都會查看銷售報告，並嘗試讓傑德比我們行業中的其他任何人都更加活躍。但一週後跟我談話，我們真的很興奮。我們認為情況正在好轉。下週激勵措施將會減少，這對社區來說是一個徹底的改變。

Yeah. Understood. All right. And second question on gross margins. Can you give us a sense of how much the gross margin decline was just pure price incentives versus mix with the more sales of Trophy?

是的。明白了。好的。第二個問題是關於毛利率的。您能否告訴我們，毛利率下降有多少是純粹的價格誘因造成的，有多少是與 Trophy 銷量增加有關？

Sure. Yeah, this is Jeff. Yes. Most of it was just due to mortgage rate buydowns. That seems to be the most effective tool that we have right now of the overall roughly 5% decline in average sales price. I would say that a little under 2% was related to mix. Trophy's closing volume did increase year over year by about 4%, so that is having a small impact there. But most of it, like I said, is towards the increased incentives for the mortgage rate buydowns.

當然。是的，這是傑夫。是的。其中大部分只是由於抵押貸款利率下降。這似乎是我們目前應對平均銷售價格整體下降約 5% 的最有效的工具。我想說略低於 2% 與混合有關。Trophy 的成交量確實同比增長了約 4%，因此影響很小。但正如我所說，其中大部分是為了增加抵押貸款利率降低的激勵措施。

All right. Thank you. That's all I had.

好的。謝謝。這就是我所擁有的一切。

Alex Rygiel, Texas Capital.

德州首府的 Alex Rygiel。

Thanks, gentlemen, next quarter. Your starts in the second quarter increased in the first quarter. How do you -- how do you think about your starts in the second half of the year? And I know you don't project things like that. But given last year's kind of seasonality of pretty meaningful strength in the quantity of communities and whatnot that you're opening. Any direction there would be helpful.

謝謝，先生們，下個季度。您第二季的開工量比第一季增加。您如何看待下半年的開局？我知道你不會計劃這樣的事情。但考慮到去年的季節性，您開設的社區數量和其他方面都有相當大的成長。任何方向都會有幫助。

Yeah. This is Jed. Thanks, Alex. We're going to match starts to sales -- so sales have been fairly consistent throughout the year, and we think our starts cadence will be will mirror that.

是的。這是傑德。謝謝，亞歷克斯。我們將把開工率與銷售額相匹配——因此全年銷售額一直相當穩定，我們認為我們的開工節奏也將反映這一點。

That's helpful. And then another way that can maybe ask the gross margin question. So homebuilding gross margins were down 410 basis points year over year. Incentives obviously rose 320 basis points, and that's probably the majority of the gross margin weakness.

這很有幫助。然後另一種方式也許可以問毛利率問題。因此，房屋建築毛利率較去年同期下降了 410 個基點。激勵措施顯然上漲了 320 個基點，這可能是毛利率下降的主要原因。

What was the remaining sort of 90 basis points of margin headwind. It sounds like building materials were lower. So was the remaining margin headwind due to a shift in mix of our product Trophy product or something else?

剩餘的 90 個基點的利潤逆風是什麼？聽起來建築材料的價格較低。那麼，剩餘的利潤逆風是由於我們的產品組合的變化（獎杯產品）還是其他原因造成的？

Yeah, Alex, this is Jeff again. The balance is primarily due to mix. Trophy's margins are still relatively in line with the rest of our brands in the company, but their mix did increase. And as you know, Trophy targets primarily the first time, first move-up buyer. And when rates were over 7% last quarter.

是的，亞歷克斯，我又是傑夫。平衡主要源於混合。Trophy 的利潤率與公司其他品牌的利潤率仍然相對一致，但其產品組合確實有所增加。如您所知，Trophy 主要針對的是首次購屋者，也就是首次升級的購屋者。上個季度利率超過了 7%。

We really had to continue to incentivize our homes to get some traction and get those sold and closed. Great news is we were very effective in doing so the number of quick move-in homes that we had this year that both sold and closed in the quarter was around 50% versus in the prior year. It was around 40%. So we're seeing a lot of buyers taking advantage of the mortgage rate buydowns to close quickly.

我們確實必須繼續激勵我們的房屋以獲得一些吸引力並將其出售和關閉。好消息是，我們的做法非常有效，今年本季售出和成交的快速入住房屋數量比去年同期增加了約 50%。大約是40%。因此，我們看到很多買家利用抵押貸款利率降低來快速完成交易。

And then last question. How do you think about your inventory level today?

最後一個問題。您認為您目前的庫存水準如何？

Yeah, this is Jed. We are seeing the buyer, and this changes month-to-month, but currently, we're seeing the buyer really focused on finished homes across all of our brands with the exception of our Florida division. So we want to have plenty of finished homes.

是的，這是傑德。我們正在看買家，而且這種情況每個月都在變化，但目前，我們看到買家真正關注的是我們所有品牌（佛羅裡達分部除外）的成品房屋。所以我們希望擁有大量完工的房屋。

The buyers wanting that to take out the uncertainty of the mortgage rates and not, frankly, for reasons we don't completely understand not go through the build process. So we are still selling some build jobs, especially at our upper end line, but entry level is predominantly all specs right now.

買家希望透過這種方式消除抵押貸款利率的不確定性，坦白說，出於我們並不完全理解的原因，他們不想經歷建設過程。因此，我們仍在銷售一些建造產品，尤其是高端產品，但入門級產品目前主要是所有規格。

Okay. Thank you very much.

好的。非常感謝。

I'd like to add one thing to that, Alex. One of the things we are seeing -- and one of the advantages of having an investment-grade balance sheet in some of our public peers that are very strong financially used. We think that many of the more leveraged extended private builders or even some of the weaker public builders are not going to be building as many specs going forward. We do see the lending environment really getting much more restrictive there.

我想補充一點，亞歷克斯。我們看到的一件事——也是我們的一些財務狀況非常強勁的上市公司擁有投資等級資產負債表的優勢之一。我們認為，許多槓桿率較高的私人建築商，甚至一些實力較弱的公共建築商，未來都不會建造那麼多規格的建築。我們確實看到那裡的貸款環境變得越來越嚴格。

Okay. Thank you very much.

好的。非常感謝。

Alex Rygiel, Texas Capital.

德州首府的 Alex Rygiel。

Thanks, Jim. That was really helpful. I had another question. pretty significant building materials distributor call earlier today. And there was sort of maybe a suggestion out there that inventory levels might be a little high across the industry itself. So I was wondering if you could maybe comment on inventory levels amongst maybe some of your competitors or in your unique geographies that you happen to be in.

謝謝，吉姆。這真的很有幫助。我還有一個問題。今天早些時候，相當重要的建築材料經銷商打來電話。可能有跡象表明，整個行業的庫存水準可能有點高。所以我想知道您是否可以評論一下您的一些競爭對手或您所在的獨特地區的庫存水準。

Alex, this is Jed. I'll take that. So at the entry level, I'd say a typical Trophy community, we have two lot sizes per community. Yes, we're running, say 14 to 15 finished specs at any one time in that community, which has two lot sizes, and that's averaging typically what our monthly sales are in that community. So I think the way we're looking at is we want to have one to two months of finished inventory for the buyer to move in.

亞歷克斯，這是傑德。我會接受的。因此，在入門級，我會說一個典型的獎盃社區，每個社區有兩種地塊大小。是的，我們在該社區中同時運行 14 到 15 個成品規格，該社區有兩種批量大小，這通常是我們在該社區的月平均銷售額。所以我認為我們考慮的方式是，我們希望有一到兩個月的成品庫存供買家入住。

And something that's interesting that we're seeing is we're spending a lot of time out in the field looking at our competitors and also our own neighborhood’s is we're seeing very little resale activity within the communities.

有趣的是，我們發現我們花了很多時間在實地考察我們的競爭對手以及我們自己的社區，我們發現社區內的轉售活動非常少。

And I think people are -- the existing residents are happy with their mortgage rates. And so we are really able to buy down the rates into the [4.99%] range, and that's we continue to do that, and we continue to have success doing that and fighting very little retail activity.

我認為現有居民對他們的抵押貸款利率感到滿意。因此，我們確實能夠將利率降至 [4.99%] 範圍內，而且我們將繼續這樣做，並且繼續取得成功，同時對抗極少的零售活動。

One of the other differentiators that we see is that when you go into our neighbourhood’s is we've never really sold to investors. And our cancellation rate is single digit. We think our backlog even when we do sign up a buyer, we think it's a higher quality. And what was your cancellation rate? 9%, Jeff?

我們看到的另一個區別是，當你走進我們的社區時，你會發現我們從未真正向投資者出售產品。我們的取消率是一位數。我們認為，即使我們確實簽下了買家，我們的積壓訂單品質也會更高。您的取消率是多少？9%，傑夫？

Yeah, just under 10%.

是的，略低於 10%。

So I think we can even be more aggressive in writing deals.

因此我認為我們在簽訂協議時可以更加積極。

Yeah. This is Jeff. And the credit quality, to Jim's point, of our buyers has continued to be very strong. Average FICO scores on closings last quarter was 745 and the debt-to-income ratio was 38%. So we haven't seen a lot of movement there. And our mortgage company is doing a great job of prequalifying buyers so that we know that they can close quickly.

是的。這是傑夫。正如吉姆所說，我們的買家的信用品質一直非常強勁。上季結算時的平均 FICO 分數為 745，債務收入比為 38%。因此我們沒有看到那裡有太多動靜。我們的抵押貸款公司在買家資格預審方面做得很好，因此我們知道他們可以快速完成交易。

It's very helpful. Thank you.

這非常有幫助。謝謝。

We have no further questions in queue. This will conclude today's conference call. Thank you for your participation. You may now disconnect.

我們沒有其他問題。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。