Q4 2020 Green Brick Partners Inc Earnings Call
Welcome to the Conference Center, our conference operator will be with you momentarily. Please be prepared to provide the information required by the company hosting the conference.
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First for Brian Wang.
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And then beyond.
Additionally, we believe the strong bounce back from the high employment scene in April 2020, and the rapid uptake and demand in our core markets is further proof that our focus on business friendly pro growth markets is correct and the best choice that will differentiate green brick from peers.
Thanks to our the superior an economically diversified markets, where we operate green brick is poised to capitalize on on what we believe are long term positive shifts in homeownership.
As seen on slide seven the cohort for the U S population, aged 35% to 44 continues to accelerate after reaching record lows in 2016.
This demographic is considered the most active homebuyer and expected to have a dramatic impact on housing over the next 10 years.
This impact makes it even historical norms as millennials have delayed family formation much longer than in previous generations. In addition, when we look at today's 18 to 29 year old year olds, an astonishing 52 percentage of young adults were estimated to be living with their parents. This past July this is a figure.
<unk> not seen since the great depression.
We believe these factors not only indicate current demand levels will rise in future periods, but also indicate significant pent up demand for housing in our current economy.
We believe these trends bode very well for green brick as our core markets of Dallas Fort worth and Atlanta have a larger millennial population than the national average, which we believe will continue to shift demand to the right.
Jed Dolson, our Chief operating officer, and Executive Vice President will now speak in greater detail to our growth drivers and land position Jed. Thanks.
Thanks, Jim take a look at slide eight growth drivers, which demonstrates that green brick still has a long pathway towards future growth on an annual basis total revenues from 2018 to 2020 have grown 57% over that two year period.
Additionally, our back backlog grew at us standing 160% to $687 million as of December 31, 2020.
These improvements indicate the green brick has been successful in capturing waved some new buyers and we believe is well positioned to continue to capitalize on the booming demand for new homes.
During the last 24 months, we also increased our lots owned and controlled by 79% and grew the average number of selling communities by 45%.
In fact in the last quarter alone Greenberg added a gross 3400 lots to our inventory of lots owned and controlled with trophy signature homes opening 16, new selling communities over the past six months.
With our dramatic growth on lots owned and controlled and record starts of over 1000 units. This quarter. We are confident that we have the necessary levels of sold in speculative inventory to achieve significant growth in 2021 and beyond.
On slide nine we demonstrate how our investment in land has translated to increased capacity to generate top line growth.
As you can see from the chart on this slide a key driver behind our strong financial and operational results has been our ability to convert investments we made in land to a future growth in revenue.
For our 2020 fiscal year, our revenues have grown 23% over the 2019 fiscal year.
Which represents our third consecutive year with top line growth above, 20% and six consecutive year with growth in the double digits.
With our substantial investment in land and lots on the latter half of 2020.
And our continued investment throughout 2021, we believe we continue to maintain significant topline and bottom line growth.
Slide 10 further details on Q4, 2020, and land investments, which resulted in a 20% sequential growth over Q3 and total lots for the company.
As the slide details.
Roughly one half of this land growth was spread across three DFW communities.
These communities represent significant long term investments in our Texas market and will be a dependable source for new lots is our trophy signature homes and CB journey brands continue to expand across the metroplex.
Slide 11 details the growth we have already seen in our trophy brand over the past year.
When picking a new location for one of our builders, we are diligent to targeted on under underwriting.
On an underwritten, 21% unleveraged internal rate of return for new projects.
We believe this process plays a direct role in generating or high <unk>.
Homebuilding gross margin, which ranks among the best in the industry.
As you can see from our community map on this slide we are able to more than double terrific selling communities in 2020 and have been thrilled to see trophy perform.
With both entry level and move up buyers.
Due to the high density of trophies communities.
We were able to underwrite these deals with a much higher absorption pace on our other brands.
This difference is implied in the table at the bottom of slide 11, where you can see that our annual absorption per average selling community is.
Is nearly two times the rate of our other brands as we go forward. We expect that this focus on our larger communities with higher absorption rates will allow green brick to continue growing sales and closing volumes more efficiently without incurring the expense.
And man hours associated with new adding new active selling communities.
Please move to slide 12, John Burns Real estate consulting has published maps of our Atlanta, and Dallas Metropolitan areas, where they have designated grades on submarkets of most desirable being in a market through most affordable being F market.
Based on a variety of subjective factors such as quality of schools proximity of jobs and the existence of infrastructure for our quality for quality of life. We have overlaid the locations of our green brick communities with green dots. The preponderance of our communities are on the Submarkets rated is most desirable.
And the current market environment, we believe that our superior market positioning will be key differentiating.
Our results from our peers. This positioning is further strengthened by the lot supply shortages in both the northern suburbs of Dallas and Atlanta.
We will which we believe will be a strategic advantage for us as we expect land development activity for other builders will slow in coming months.
Our community Count grew 8% from Q4 2019 to 103 active selling communities as of December 31, 2020 as.
As we continue to open more communities geared toward first towards the first time homebuyer.
Going forward, we are selling out of some of our smaller neighborhoods and we are developing lots on larger neighborhoods.
That have a higher planned sales velocity, consequently, even though our neighbor cap neighbourhood count is intentionally planned to contract as the year progresses, our lot count and top line revenues are expected to grow significantly.
Our pivot to these larger high absorption absorption communities focused on entry level buyers has not been at the cost of increased risk.
On our Q4 2020 home closings with our unconsolidated mortgage venture venture.
<unk> Green brick saw on average FICO score of 760 with 90% of the fundings exceeding.
FICO score of 700.
The credit worthiness of our average buyer profile is a fundamental strength.
Many of our markets that we operate in which we believe will continue to mitigate risk for our business.
Next Rick Costello, our CFO will discuss our fourth quarter and annual results in more detail.
Thanks, Chad and thank you all for joining us today to review, our 2024th quarter financial results.
Let's start with slide 13 of our presentation, where we compare our fiscal year 2020 gross margins with available peer data.
Our gross margin reported for the full year was 24, 2%. This was up 280 basis points over fiscal year 2019.
And for the fourth quarter 2020 alone gross margins were 25, 1% and up 350 basis points over our margins reported in Q4 2019.
This chart demonstrates that our performance is among the best in the industry. We believe our superior margin experience is evidence of our conservative land underwriting and prudent planning that Chad mentioned earlier.
This is a winning strategy that has well prepared us to manage pace and price during the remainder of 2021 and beyond.
Slide 14 visually demonstrates that we have grown our revenues and provided stable earnings by not concentrating on only one homebuyer segment.
At the end of 2018, two segments accounted for about three quarters of our revenues.
Fast forward two years, and we now address six distinct an individually significant significant customer segments, which all experienced strong revenue growth in sales volume through December 31, 2020.
This revenue growth is in line with our 50% year over year growth in 2020, net new orders and demonstrates the health of our markets now are net new order growth breaks down as follows.
Net new orders of entry level and second time move up single family homes were both up 45% in Q4 2020 versus Q4 2019, demonstrating that today's historic demand is really impacting all price points.
Even more impressive our net sales of townhouse per.
Product Thats priced above 300000 grew by 127% in Q4 2020 versus Q4 2019 now we believe this tremendous growth is evidence that our superior lot position.
And some of the best locations in Dallas Fort Worth and Atlanta is a winning strategy.
Our strong ties to the municipalities, where we operate and our experienced land team have laid the groundwork for our CB journey townhome brand to become the dominant town homebuilder in DFW.
We expect our strong offering of townhome communities to continue driving growth in 2021.
Also our sales for age targeted segment of <unk> homes in Florida were up 56% year over year as we have seen improved demand for product as lockdown restrictions have lifted and homebuyers continue to migrate out of both large urban centers in the northeast and in South Florida.
Finally urban home sales in Q4 2020 were up 29% over Q4 2019. This growth is driven by the move of urban millennials away from dense apartment living as well as the demand for larger more intentional living spaces as Jim mentioned earlier.
Please move to slide 15 related to our financial highlights.
For Q4, 'twenty versus Q4, 19 and year to date comparisons here are our key operational metrics.
Net new orders increased 44% for the quarter.
This increase was a function of a 26% increase in the absorption rate of net orders per community as well as a 13% increase in average selling communities.
For the full year of 2020 are 50% order growth was driven by a 12% increase in average selling communities and a 34% improvement in absorption.
Home deliveries increased by 14% with residential units units revenues up by 10% for the quarter year to date residential revenues improved by 22% due to a 28% increase in homes closed.
Our average sales price of homes over all our brands delivered Dick.
<unk> declined by three 4% for the quarter and for 4% year to date versus the comparable periods in 2019.
Now these declines in ASP are attributable to the increasing contribution of trophy signature homes and CB journey homes Townhome Division to our total revenues both of these per builder sell homes at average sales prices that are below the average price for the company.
Emphasized earlier, we believe this improved affordability will serve to preserve and improve our market share.
Year over year homes under construction are up 37% year over year with homes started up during 2020 by 43% from 2019.
During the quarter, we started a record 1000 for homes up 99% year over year and up sequentially, 41% from the third quarter.
Combined in the second half of 2020, we started 2741 homes.
Which should provide us with the inventory for another year of strong topline and Bottomline growth.
Yes.
The dollar value of units in backlog increase as said before by 98% year over year and 24% sequentially from Q3 for Q4. This trend has continued during the first two months of 2021 with sales up 80% from the prior year period, and we expect this year to date growth in back.
Log to drive strong closing growth in 2021.
As I highlighted earlier homebuilding gross margin was up 350 basis points over Q4, 2019, and adjusted homebuilding gross margin was up 340 basis points quarter over quarter.
From Q3 to Q4 of this year gross margin was up 30 basis points for the full fiscal year, our 2020 homebuilding consolidated margin and adjusted homebuilding gross margins were up 280 basis points and 290 basis points respectively.
Turning to operating leverage our SG&A expense dropped 90 basis points from 12, 4% in 2019 to 11, 5% for fiscal year 2020. This decrease in the annual SG&A leverage ratio was primarily driven by strong revenue growth during the year and reduced head count level.
For most of 2020.
Our interest coverage of $18 nine for Q4 2020 represents a 142% growth over Q4, 2019, and clearly demonstrates our capacity to generate positive cash flow will be above our needs.
Year to date, our interest coverage of $15 six times represents a 111% improvement year over year.
Our bottom line Q for 2020 basic EPS of <unk> 58 for the quarter was an increase of 81% over Q4 of 2019 Likewise for the full year, our basic EPS of $2 25 is 94% higher than the same period last year.
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And finally, our net income return on average book equity grew from 12, 3% in Q4 of <unk> 19 to 18, 8% doing cure for Q4 of 2020, an increase of 650 basis points combined with our low debt leverage our risk adjusted.
Returns are remarkable.
Please turn to slide 16 here, we compared our performance versus our small and mid cap peers to demonstrate why we believe that our risk adjusted growth and returns are uniquely strong. We've provided five measures in the previous slide we have already discussed a remarkable 22 for growth in resin.
Initial units revenue in 2020 over the prior year, which as Jim mentioned earlier was primarily driven by organic growth at Seabee journey and trophy signature brands.
With bolt team builders focused on increasing our offerings of affordable product. This growth is expected to bring further diversification and reductions in our overall average sales price that dynamic growth rate can be seen in the first day to column, where our growth ranks us near the top of our peers.
And as we demonstrated again this quarter our industry, leading gross margins drove excellent returns on revenues again this quarter.
Also included on Slide 15 is our year to date interest coverage, which is a function of great earnings combined with conservative lower levels of financial leverage and lower price debt.
Our lower leverage as reflected in our low debt net debt to capital for the fourth metric, which indicates our reliance on organic growth rather than leverage to maine's strong operating cash flows.
Finally, we include pre tax return on average invested capital to measure each builders return disregarding differences in leverage and tax rates.
Lastly from a financial side. Please look at slide 17, which focuses on our lower lever, which leverage which I just discussed now as Jim distressed at the start of the call. We were able to achieve a record setting fiscal 2020 results, while maintaining one of the lowest debt to capital ratios amongst public builders.
Our lower leverage positions green brick to continue limiting risk while generating industry, leading return on equity of 19, 5% in 2020 as we just saw on slide 15.
Also as mentioned in Jim's opening remarks, we are thrilled to announce the closing of our $125 million offering of senior unsecured notes issued in February of 2021. These notes are due in 2028 at a fixed rate of 325%.
We believe our lower relative to interest costs will be a positive tailwind for gross margins and from profitability as the company continues to grow and scale through 2021, and 2022 importantly, we're developing long term relationships with other exceptional institutional partners as part of this club deal.
On the institutional investors, who purchased the notes were represented by Prudential bearings, Hartford, securing and Voya.
Prudential private capital structure of the club deal.
I'll now turn the call back to Jim who will wrap up our part of the call prior to opening things for Q&A.
Okay. Thanks, Rick.
The outstanding order growth, we are seeing today continues to accelerate thanks to historically low mortgage interest rates.
The aging of the millennial generation.
The migration of renters from high density living conditions to homes and us operating in the best housing markets in the country.
And the first two months of this year net new orders were up 80% over the first two months of 2020.
We achieved this remarkable growth despite the strong comparisons last year, where net orders in January and February were up 76% from the same prior period in 2019.
We are now raising prices faster than costs and are not executing contract offers when or where our capacity is constrained.
We expect these higher prices to lead to slower orders, but even higher profitability, which should flow through the income statement in the latter half of the year.
Additionally, our board of directors approved a two year for $50 million share repurchase program on March one 2021. This authorization provides an additional opportunity for green brick to increase the value for our shareholders. In addition to our continued robust investment in land and lots.
Despite the challenges we faced this past year I believe green brick has entered 2021 as a stronger and more efficient company.
I am confident that the teams we have in place will continue to strive to build and sales superior quality homes for our homebuyers I'll now turn the call back to the operator for questions. Thank you.
As a reminder to ask a question you will need to press star one on your telephone.
John Good question principal balance Keith please standby, while we compile the Q&A roster.
Our first question comes from Michael Rehaut with Jpmorgan you May proceed with your question.
Hi, This is Maggie on for Mike.
First question I guess I had.
Yes.
On how.
Sales pace or orders trended throughout <unk> and <unk>, Inc.
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I think last quarter, you had said that October was going to be operating round somewhere on the 80% range and then.
Obviously for Q finished at 44% and then you saw the big step up again.
As we came into <unk> in January and February sales.
Can you talk about what you were seeing there in any kind of dynamics driving the different growth rates and how you.
Tibet.
Environment.
And also I guess more recently have you seen any change in demand.
Given the recent step up in rates.
Yes. This is Jim and I'm going to have Jed to answer the second part of the question. Obviously, many management's job is to balance pace price building cadence and our lot position I think Jed why don't you take Maggie through kind of what we're doing.
And to answer a question, yes sure.
From a high level, we have seen very strong demand since December one.
Last year, we saw we saw strong demand prior to that but it really hit the accelerator.
For us in December we've consistently raised prices on a monthly basis.
We are still seeing strong demand, albeit a little moderation.
As a result of the mortgage rate spikes the past two weeks.
We are now seeing mortgage rates jumped from in Q4, they were on the two 6%.
Two 7% range and we're now seeing them in the two point sorry, the 325 to $3 five range.
Is that enough.
Right.
Yeah, Okay. Thank you and then.
Yes, Sir.
Lee.
On.
Asps.
Obviously, you talked about raising price.
You said, you're raising price higher than cost right now.
But at the same time.
Trophy and CB journey.
They are coming.
<unk> to grow as part of the business.
I think last quarter, you made a comment.
Somewhere around there for 'twenty range would be kind of a good.
Good way to think about.
Pete.
Through 2021, but as I look at the average order price from the average price in backlog.
It's significantly higher so how can we think about asps this year.
Yes, Maggie this is Jed again I'll take that.
It is going to be higher this year I think we are projecting it to be more on the $4 50 range.
When we talked in last quarter, we thought lumber prices were going down and they were trending down temporarily they did a head fake and they've really gone up this year.
Lumber is double what it was this time last year on our lumber packs. So part of that is part of the ASP rise is the lumber price increases.
As far as our backlog ASP versus our closing ASP.
We typically see a lot of buyers, especially at our CV genic townhouse and our trophy entry level builders that per.
Purchase spec homes that are 30 to 60 days out we're lucky enough at those two brands to have inventory still while many of our competitors have.
Limited inventory so.
That's why our backlog asps.
Is higher than our closing ASP, but I think.
As.
We look for the year I think for 50 ASP would be a good number.
Maggie for some additional cash.
<unk> on both the backlog and on.
Our sales success.
If you if you were to take on a historical look you will find consistently that our ASP backlog runs quite a bit hotter than our actual ASP for the reasons such as just laid out.
And we really have some of the.
The more most expensive product that we sell is in backlog for quite a period as well.
I was just looking at the.
Absorption rates and.
Absorption was really started to kick up in 2000 and.
19 in November and December we had really seen that.
Move for at a pretty strong rate in November December January February until Covid hit in March.
So.
While our October number was was really bright to get the overall.
<unk> 40 per 4% increase for Q4 was against a very strong comp, but whats really remarkable is January and February where we're up 80% over some very strong comps like Jim said for 2020, those two months were up 79% over 2019, So we were really.
Doing exceptionally well in early 2020, which just speaks to how strong demand is and when we say that we're trying to slow sales. We're not trying to go below our strong absorption rates, we're trying to just moderate.
Our pace to a level that is sustainable from a production standpoint.
Got it that's really helpful.
Thanks.
Thanks for your for your questions.
Thank you. Our next question comes from call right line with <unk>. You May proceed with your question.
Hi, everybody.
So Greg on that question.
Your comment you just made this is kind of what I want to follow up on so up 80% in the first two months.
What that seems to tell me is that raising prices isn't working to stay on absorption.
So.
What.
Although the rates may be according to Chad. The last couple of weeks. So I guess im a little confused as to what is the production target that whats kind of the growth rate in sales you think matches production.
This is Jim and Jeff is going to chime in on this too because this is obviously a major topic of discussion internally among top management, but.
January and February sales pace really would not be sustainable even though the demand is there just because of construction capacity within our business. It.
It was a wonderful problem to have nobody wants to tell a customer that you can't.
Execute a contract in neighborhood they want to buy a home, but we've actually had to do that.
On some neighborhoods, where we have kept sales and we're really not accepting his officer offers so.
Our demand is so robust that we're really trying to manage that to serve our customers and.
Maintain our profit margins are hopefully improve these profit margins and pass through the lumber costs.
Jed.
So I wouldn't take January and February and multiply it times six of those two months and forecast our business at the same time I think our book business is just really doing remarkably well on Jed what do you want to chime in on that.
Yes, I mean, I think Jim pretty much covered it.
Yeah, and Karl from a from a production standpoint.
We started.
In excess of 1700 homes on the last six months of the year.
I think that right. There is probably a lot more telling in terms of what our current capacity is yes.
Yes that brick that's what I was going to ask them.
On that that starts pace is something you think is <unk>.
Relatively sustainable.
Over the course of that over a course of a rolling six month period does that is that the right way to think about it then yes, Sir yes, Carl on the other thing that we're seeing in our businesses.
Our higher end builders are the more exposed in this cycle are lower and abilities have to have as much simpler process on a much faster inventory turn.
And the bottlenecks and supply constraints that we're seeing are much more impact the higher price points and lower price points and as you know, we're really focused on those lower price points more than the higher price points now.
How nice that actually gets right to my second question, which is as trophy signature I think.
Taste, a 23% I think of total turnover now which is.
Significant.
From zero, a few years ago, where do you want that business to beach and sort of what percentage of your business would you like trophy signature to be and I might as well add on to that you talked before a little bit about potential market expansion you were thinking about prior to Covid. How are you thinking about that now that we're starting to see an easing of the pandemic.
New market expansion for trophy or any brand.
Likely on the table in the next 12 months.
Likely is always a hard thing for me to handicap because.
You never know what makes sense until you really underwrite it and we're not currently underwriting any new markets for trophy. Although we are evaluating two markets that we think would be natural markets for trophy to expand into over the next few years.
We have such growth in Dallas with trophy that we're just blessed trying to manage that growth right now in terms of our other builders on how we allocate capital I think a good way to look at it would be.
Don't plan really on most of our builders, reducing any of our capital commitments to them.
Providence Group has a five or 600 start builder there. They are in a much more complicated infill complex market. We just plan on recycling that cash but really.
If you look at your earnings estimates.
And you take a look on what that implies in earnings in 2021, and if we borrow about 25% to 30% debt to capital.
Net 200, plus or minus $1 million, we really want to use to expand trophy.
Because it's scalable.
It's easier to manage.
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That's really where our growth is going to be.
Okay. Thank you Jim Thanks, everybody.
Thanks Carl.
Thank you. Our next question comes from Alex Rygiel with B Riley you May proceed with your question.
Thank you and nice quarter gentlemen.
Based on upon your late based upon your land underwriting hurdles are higher prices necessary to achieve gross margins of 25% or higher.
This is jed.
We do not factor price escalation in our underwriting models.
So we're not we're not factor in cost escalation either.
Excellent and can you also talk about the competitive environment.
Are you seeing competitors in your geographies.
Raise prices as well as aggressively as you are attempting to.
Absolutely.
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I would say the big publics less so because they control more losses, but the smaller privates.
And some of the smaller publics that don't have the community count or the lot runway are very aggressive trying to moderate sales as they get from a to b yes.
Yes, and we're on we are doing a lot of transactions with one other mid cap public builders that we really enjoy doing business with and pretty much. We're in lockstep in these neighborhoods, where we're building with them on raising prices.
Great. Thank you.
Thank you. Our next question comes from Alex Barron with housing Research Center and you May proceed with your question.
Yes, Thank you gentlemen.
Great job on the quarter.
I was just curious if you can comment on are you guys seeing.
Notable increase on acceleration out of state buyers and are moving into places like Texas.
Yes. This is Jed I'll take that the answer is yes.
We thought when Toyota relocated their national headquarters to.
Plano a couple of years ago, we thought that was going to be the peak of in migration.
That has just turned out to be the.
First wave of in migration, we are seeing.
Companies from both coasts relocate here on a daily basis, and our buyer profile is significantly out of state, especially at the higher price points.
I don't know if you heard this Jim this is Jim and one of the.
It really changes in this market is that.
<unk>.
For the existing house inventory is so low that realtors and the low price point, we're in the $4 million price point and the park cities are literally knocking on doors right now trying to get listings.
From people to sell homes, because the inventory levels are so low.
And we don't see that really changing very much right now just because our industry doesn't have the capacity to just overbuild like it did in past building cycles that I've experienced in the <unk> for example, the industry from this.
Zoning entitling land to getting it through the municipalities to actually building the homes. The capacity is so great.
That's a constraint and we just don't have the same competitive dynamic that we used to have with existing homes.
Okay great.
I was also hoping you could elaborate on the 80% growth machine so far this year.
Are.
Is there any way you can break that down by on.
I don't know geography of price points.
It was expense of how different regions.
For product type for doing that.
Relative to that.
Yes. This is Jeff this is Jed again I'll take that.
The 80% growth rate the first two months is not sustainable.
I think Carl.
We set a target for what is sustainable a couple of questions ago.
We are seeing strong demand across every one of our regions at every one of our price points right now.
So it's really a balancing act of <unk>.
<unk> price to match input cost increases.
<unk>.
And get to a good Billboard cadence.
As far as building.
Being able to start the number of homes that we sell each month Ryan.
Brian on trophy is much easier and that building cadence than on a higher price points builders that struggle with a more complicated process and at higher much more customer intensive process.
Okay understandable, if I could ask one last one.
On your share buyback you mentioned.
We allocated 50 million essentially to buyback is that expected to be.
Consistent across the quarters.
Or is that more opportunistic.
Well it depends on whether the stock price is consistent across the quarters like yes.
So I really don't know how to answer that question would be on opportunistic case by case basis, depending on how we view, our land and lot investments versus buying our own stock.
Stock at that given point in time.
Yes.
It seems like a good deal right now thank you.
Thank you for that.
Thank you and as a reminder is asking a question you will need to press star one on your telephone. Our next question comes from Bill <unk> Zone with tightened capital you May proceed with your question.
Thank you I have a.
Nitpicking question, but your SG&A was up versus the third quarter.
On both on an absolute dollars hand, and on a percentage of revenue basis on on lower revenues, which is a little bit counterintuitive, but would you talk to.
On the dynamics there please.
Sure Bill Thanks for the question.
Really in the in the short run most of our overhead is going to be fixed over the long run. It's all variable, but as you just mentioned we had lower revenue base at a point in time when we increased.
It starts 99% year over year, so obviously that requires additional field overhead and back office overhead. So it's a function of spending the money in advance of recognizing the revenues from a growth standpoint, and also the fact that the revenues were a little bit lower in the quarter then.
On the previous so.
That pretty much sums it up.
Thank you Rick share.
Sure.
Thank you. Our next question comes from Art Winston with pilot Advisors. You May proceed with your question.
Thank you.
You guys for a very large amount of locks in a very short period of time.
It's premature but as you look back on it do you think that almost all of the money was well spent.
This is Jed, yes, absolutely, we think of as well as fat we've seen land prices.
Most of the most of the land that we closed in Q4, we contracted in June or July or before or before and some of it was pre pandemic Lam that we.
Temporarily put on hold or terminated and then picked back up we've seen a dramatic increase in land costs.
Compared to the.
The price that we purchased those parcels on it.
Thank you.
Youre welcome Thanks Art.
Thank you ladies and gentlemen.
This concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
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Okay.
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Okay.
Yes.
This growth.
Good day.
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