Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Investor Presentation (June 2020)
24 slides from Green Brick Partners's investor presentation, June 2020
Slide 1: Summer Investor Presentation June 2020
Exhibit 99.2 The Providence Group Pratt Stacks | Atlanta, GA SUMMER INVESTOR PRESENTATION JUNE 2020 BUILDING COMMUNITIES | DEVELOPING DREAMS
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and our earnings call contain “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar exp
Slide 3: Management Presenters
MANAGEMENT PRESENTERS Jim Brickman Rick Costello Chief Executive Officer Chief Financial Officer • Over 40 years in real estate development and homebuilding. • Over 25 years of financial and operating experience in all aspects of real estate management. • Co-founded JBGL with Greenlight Capital in 2
Slide 4: Company Overview
COMPANY OVERVIEW BUILDING COMMUNITIES | DEVELOPING DREAMS 4
Slide 5: Company at a Glance
COMPANY AT A GLANCE 2019 Total Homes Closed:* 2,196 2019 Total Home Closings Revenue:* $911.1mm *2019 homes closed and closing revenue includes equity interest in Challenger Homes. Unconsolidated units closed totaled 477 closings, and unconsolidated home revenues totaled $158.8 million. 1,719 (conso
Slide 6: Green Brick Is a Diversified Builder with Brands in Major Markets
GREEN BRICK IS A DIVERSIFIED BUILDER WITH 8 BRANDS IN 4 MAJOR MARKETS Team Builders Market Products Offered Price Range Structure Atlanta, GA Townhomes $320k - $690k Consolidated(1) Single Family $340k - $1.01M Condominiums $380k - $580k Financial Services Dallas, TX Townhomes $230k - $480k Consolid
Slide 7: Land Position
LAND POSITION Land is well positioned in attractive submarkets Atlanta Metro Area Dallas Metro Area GRBK Locations Submarket Grades Most desirable Desirable area Median desirability More affordable Most affordable Land position highlights 93 29* Active selling communities Communities as of 3.31.20 u
Slide 8: Green Brick Partners and Team Builders COVID-19 Response
GREEN BRICK PARTNERS AND TEAM BUILDERS COVID-19 RESPONSE Measures taken as part of comprehensive COVID-19 response Land Spend Purchasing • Reduced our purchases of lots and land. • Cost savings from renegotiations with trade partners for both labor and materials • Significantly slowed most land deve
Slide 9: Our Markets and COVID-19
OUR MARKETS AND COVID-19 DFW MAP OF RECESSION RESISTANT CITIES / COUNTIES North Texas tops the list of recession resistant markets in the country Denton County Collin County • Of the several North Texas suburbs where Green Brick builds, three municipalities are in the top four and four are in the to
Slide 10: Our Markets and COVID-19
OUR MARKETS AND COVID-19 Multiple factors further mitigate our risk in markets outside of Texas • Atlanta: In the lot-constrained North Atlanta suburbs, Green Brick owns nearly 1,500 lots which are entitled for a breadth of products including condo, townhome, and single-family units. After reviewing
Slide 11: Backlog
BACKLOG 3.31.2020 Record Backlog is up 39% YOY and 23% Sequentially Comparison of Prior Year Closings to Total of Q1 Actual Closings plus March 31st Ending Backlog 1,800 1,719 82.5% of PY 1,600 closings 1,400 448 79.7% of PY 1,200 1,287 closings 1,000 75.2% of PY 368 990 970 closings 800 844 62.1% o
Slide 12: COVID-19 Preparedness
COVID-19 PREPAREDNESS Based on our assumed key performance indicators, we believe Green Brick is one of the best prepared public builders for the current recession Percentage of Closed and Sold Rank(1) Builder Gross Margin % Interest Coverage % Owned Lots vs Controlled Homes vs Prior Year Closings(2
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS BUILDING COMMUNITIES | DEVELOPING DREAMS 13
Slide 14: Seasoned and Aligned Management Team
SEASONED AND ALIGNED MANAGEMENT TEAM • Our management team is comprised of building and finance veterans with decades of experience in our markets • Significant expertise in capital allocation, land acquisition, entitlement, development, construction, marketing, and home sales • Strong institutional
Slide 15: Balance Sheet Strength
BALANCE SHEET STRENGTH Green Brick continues to maintain its position as one of the lowest leveraged public builders • GRBK Net Debt* to Capital is 27.9% as of March 31, 2020 versus an average 39.5% for covered public builders (Peer data based on most recent filings as of 5.7.2020). Net Debt* to Tot
Slide 16: Industry-Leading Gross Margin
INDUSTRY-LEADING GROSS MARGIN Green Brick maintains some of the best margins in the industry, well above most small and mid-cap peers • GRBK Gross Margin Percentage is 23.1% for the quarter ended March 31, 2020 versus an average 19.0% for covered public builders (Peer data based on most recent filin
Slide 17: Green Brick Is a Diversified Builder
GREEN BRICK IS A DIVERSIFIED BUILDER Home Closings Revenue Revenue in Millions, ASP in Thousands Townhomes, Condominiums, Single-Family Total and Attached Homes $200 $120 $120 $180 $100 $100 $124.2 $160 $189.2 $140 $80 $80 $120 $60 $60 $100 $65.0 $120.4 $62.4 $80 $40 $58.0 $40 $60 $40 $20 +12% $20 +
Slide 18: Homebuyer Customer Diversification in Texas, Georgia, & Florida Markets
HOMEBUYER CUSTOMER DIVERSIFICATION IN TEXAS, GEORGIA, & FLORIDA MARKETS We also manage risk by diversifying our homebuyer customer mix Homebuyer Customer Mix Quarterly GRBK Home Closings Revenue by Product Type Q1 2018 Home Closings Revenue Q1 2020 Home Closings Revenue 10% 12% 6% 6% 5% 37% 22% 57%
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in Millions, Except EPS) Q1 2020 Q1 2019 Qtr over Qtr Change Notes New Homes Delivered 448 368 21.7% Strong order growth and margin improvement demonstrate the Net New Home Orders 632 444 42.3% health of markets prior to COVID-19 pandemic. Average Selling Co
Slide 20: Appendix
APPENDIX BUILDING COMMUNITIES | DEVELOPING DREAMS 20
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Homebuilding Gross Margin Reconciliation Three Months Ended Three Months Ended (Unaudited, in Thousands) March 31, 2020 March 31, 2019 Residential Units Revenue $191,187 $161,588 Less: Mechanic’s Lien Contracts Revenue (1,939) (2,355) Home Closings Revenue $189,248 $
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted GRBK Pre-tax Income, EBITDA, and Interest Coverage Ratio Three Months Ended Three Months Ended (Unaudited, in Thousands) March 31, 2020 March 31, 2019 Net Income Attributable to Green Brick $ 15,917 $ 12,605 Income Tax Expense Attributable to Green Brick 5,988 3,794
Slide 23: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Supporting Calculations for Covid-19 Preparedness Ranking on Slide 12 Percentage of Closed and Sold Gross Rank Peer Rank Peer Homes vs Prior Year Closings Margin % Percentage of Builder % Owned 1 MDC 88.9% 1 LGIH 23.4% Closed and Sold Gross Interest Rank by Rank by Lots vs Me
Slide 24: Summer Investor Presentation June 2020
Southgate Homes Edgewood | Frisco, TX SUMMER INVESTOR PRESENTATION JUNE 2020 2805 Dallas Parkway, Suite 400 Plano, Texas 75093 | www.greenbrickpartners.com BUILDING COMMUNITIES | DEVELOPING DREAMS
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