Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q2 2017 Earnings Presentation
16 slides from Green Brick Partners's earnings presentation, Aug 7, 2017
Slide 1: Second Quarter 2017 Investor Call Presentation
Green Brick Partners Second Quarter 2017 Investor Call Presentation August 7, 2017 Exhibit 99.2
Slide 2: Forward-looking statements
1 Forward-looking statements This presentation and the oral statements made by representatives of the Company during the course of this presentation that are not historical facts are forward-looking statements. These statements are often, but not always, made through the use of words or phrases such
Slide 3: Management presenters
Jim Brickman Chief Executive OfficerΩ Over Ω 39 years in real estate development and homebuilding CoΩ -founded JBGL with Greenlight Capital in 2008. JBGL was merged into Green Brick in 2014 Previously served as Chairman and CEO of Princeton Homes and Princeton Realty Corp.Ω Rick Costello Chief Fi
Slide 4: Housing starts are highly correlated to jobs
3 Housing starts are highly correlated to jobs and we build in two of the highest job growth markets.
Slide 5: We are less than 2.0% of the starts in two of the largest housing markets
We are less than 2.0% of the starts in two of the largest housing markets, giving us significant opportunity for growth. 4
Slide 6: Dallas market continues 6-year expansion but is still well below the prior peak
5 Dallas market continues 6-year expansion but is still well below the prior peak 31,049 29,865 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 A nn ua l S ta rt s & C lo si ng s Annual Starts Annual Closings Dallas/Fort W
Slide 7: GRBK has almost 3,800 lots in Dallas amid constrained supply
6 GRBK has almost 3,800 lots in Dallas where the market continues its 7-year trend of constrained supply Source: Metrostudy - MetroUSA Dallas/Fort Worth Market Lot Inventory 50,084 19.4 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,0
Slide 8: Atlanta market also continues to expand but is still well below the prior peak
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 U n it s Quarter Atlanta Region 16 Year History Annual Construction Starts and Closings Annual Starts Annual Closings 2Q06 Peaked 22,594 +10% 21,262 +15% 7 Atlanta market also continues to expand but is still well b
Slide 9: GRBK has one of the lowest debt-to-capital ratios amongst public builders
GRBK has one of the lowest debt-to-capital ratios amongst public builders GRBK net debt to capital is about 12% versus an average 40% for covered public builders GRBK’s has no off-balance sheet debt embedded in unconsolidated JV’s, unlike many peers GRBK’s eventual target is approximately 35%
Slide 10: Second quarter 2017 financial highlights
Second quarter 2017 financial highlights 9 Second quarter pre -tax income attributable to Green Brick of $12.0 million was up 9.9% from the same period in 2016 Lots owned and controlled stand at almost 5400 lots, up over 20% year over year Home closing revenues of $ 100.3 million in Q2 2017 were
Slide 11: Second quarter 2017 operational highlights
Second quarter 2017 operational highlights 10
Slide 12: Green Brick at a glance
TX G Green Brick at a glance Uniquely structured residential land development and homebuilding company We build and deliver homes through our current Ω builders in which we own a 50% controlling interest We sell lots and provide lot acquisition and vertical Ω construction financing to our controll
Slide 13: Corporate structure
We are a uniquely structured company that combines residential land development and homebuilding with strong sponsor ownership and controlling interests in our aligned homebuilders. Corporate structure 12 50%50%50%50% 100%
Slide 14: Key takeaways
Key takeaways Significant growth opportunities exist in Dallas and Atlanta ̶ two of the most attractive homebuilder markets in the U.S. We have the balance sheet and management team to support significant growth Proven success in executing our growth strategy with our controlled and aligned bu
Slide 15: Non-GAAP Reconciliation: Adjusted EPS
Non-GAAP Reconciliation 14 Adjusted EPS Reconciliation (Unaudited, in thousands, except per share amounts) Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Basic adjusted EPS Net income attributable to Green Brick – basic $7,689 $13,886 Income tax provision attributable to Green Brick
Slide 16: Non-GAAP Reconciliation (continued): Adjusted Homebuilding Gross Margin
Non-GAAP Reconciliation (continued) 15 Adjusted Homebuilding Gross Margin Reconciliation (Unaudited, in thousands) 12 Months Ended Jun 30, 2016 12 Months Ended Sep 30, 2016 12 Months Ended Dec 31, 2016 12 Months Ended Mar 31, 2017 12 Months Ended June 30, 2017 Sale of Residential Units $304,597 $323