Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q1 2021 Earnings Presentation
23 slides from Green Brick Partners's earnings presentation, 2021
Slide 1: First Quarter 2021 Investor Call Presentation
FIRST QUARTER|2021 INVESTOR CALL PRESENTATION G R E E N B R I C K P A R T N E R S | Q1 2021 INVESTOR CALL PRESENTATION
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 Chief Executive Officer • Over 40 years in real estate development and homebuilding. • Co-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. R
Slide 4: Green Brick Is a Diversified Builder with 8 Brands in 4 Major Markets
GREEN BRICK IS A DIVERSIFIED BUILDER WITH 8 BRANDS IN 4 MAJOR MARKETS Team Builders Market Products Offered Price Range Ownership Dallas, TX Single Family $290k - $690k 100% Ft. Worth, TX Financial Services Dallas, TX Townhomes $290k - $530k 100% Ft. Worth, TX Dallas, TX Single Family $470k - $760k
Slide 5: Population Growth Should Drive Future Housing Demand
POPULATION GROWTH SHOULD DRIVE FUTURE HOUSING DEMAND Last 10-Year Resident Population Growth for 25 Largest States 10-Year Green Brick states are highlighted Population State Growth % Growth Texas 4,000 15.9% Colorado 745 14.8% Washington 981 14.6% Florida 2,737 14.6% Arizona 759 11.9% South Carolin
Slide 6: Our Markets Are Well-Positioned to Generate Future Growth
OUR MARKETS ARE WELL-POSITIONED TO GENERATE FUTURE GROWTH DFW and Atlanta saw the largest decline in active listings of the largest MSA’s in April 2021, spurred by strong employment and affordability • Due to a 69.7% decline in active listings, DFW saw a 12.0% increase in median listing price in Apr
Slide 7: Sustained Growth Through Prudent Land Development
SUSTAINED GROWTH THROUGH PRUDENT LAND DEVELOPMENT We have the strong balance sheet and operational excellence for continued growth Total Period Revenue and Period-End Lot Supply for Green Brick Partners(1) 1,000,000 Sequential growth in total lots of 20000 31% from Q4 2020 to Q1 2021 18,939 800,000
Slide 8: Green Brick's Growth in Owned and Controlled Lots Leads Peers
GREEN BRICK’S GROWTH IN OWNED AND CONTROLLED LOTS LEADS PEERS Total lots grew 31% from Q4 2020 to Q1 2021, our third consecutive quarter to achieve sequential growth above 20%. 12-Month Percentage Change in Lots Owned and Controlled GRBK 118.1% CCS 60.6% DHI 47.8% MTH 39.8% LGIH 33.8% MHO 24.1% PHM
Slide 9: Land Position
LAND POSITION Land is well positioned in attractive submarkets Atlanta Metro Area Dallas-Ft. Worth Metro Area Submarket Grades Most desirable Desirable area Median desirability More affordable Most affordable GRBK Locations Land position highlights 96 29* 6,026 Average active selling communities Com
Slide 10: Shift to Larger and Higher Absorption Trophy Communities Accelerates Growth in 2021
SHIFT TO LARGER AND HIGHER ABSORPTION TROPHY COMMUNITIES ACCLERATES GROWTH IN 2021 Green Brick has grown units under construction by 69% in 6 months Consolidated Units Under Construction Trophy Units Under Construction Trophy started 453 homes in Q1 2021, 900 bringing ending units 2,500 Units under
Slide 11: Green Brick Continues to Demonstrate Strong Top-Line Growth
GREEN BRICK CONTINUES TO DEMONSTRATE STRONG TOP-LINE GROWTH Average sales price declined 0.8% for the quarter and 4.1% on a last twelve months basis due to successful expansion of entry-level segment New Homes Delivered for the Home Closings Revenue for the Periods Ended March 31 Periods Ended March
Slide 12: Strong Demand Is Expected to Accelerate Revenues Beginning Next Quarter
STRONG DEMAND IS EXPECTED TO ACCELERATE REVENUES BEGINNING NEXT QUARTER Record net new orders in Q1 2021and ending backlog as of 3.31.2021 were achieved along with significant price increases Net New Home Orders for the Ending Backlog as of Periods Ended March 31 March 31 1,250 4,000 2,500 $1,125 1,
Slide 13: Financial Results Continue to Demonstrate Strong Risk-Adjusted Returns
GREEN BRICK’S FINANCIAL RESULTS CONTINUE TO DEMONSTRATE STRONG RISK-ADJUSTED RETURNS Robust year over year growth in Q1 2021 is expected to significantly expand over the next three quarters. Q1 2021 Q1 2020 Increase Homebuilding Gross Margin 25.4% 23.1% 230 bps Adjusted Homebuilding Gross Margin(1)
Slide 14: The Company Continues to Raise Prices Faster Than Costs
THE COMPANY CONTINUES TO RAISE PRICES FASTER THAN COSTS Green Brick maintains some of the best margins in the industry, well above most small and mid-cap peers GRBK Gross Margin Percentage is 25.4% for the three months ended March 31, 2021 versus an average 21.9% for covered public builders (Peer da
Slide 15: 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 Last Twelve Months GRBK Home Closings Revenue by Product Type LTM Q1 2019 Home Closings Revenue LTM Q1 2021 Home Closings Revenue Entry-level
Slide 16: Green Brick Provides Strong Risk-Adjusted Growth Relative to Peers
GREEN BRICK PROVIDES STRONG RISK-ADJUSTED GROWTH RELATIVE TO PEERS Based on our key performance indicators, we believe Green Brick has one of the best growth opportunity profiles among peers small and mid-cap peers Last Twelve Months Ending 3.31.2021 or Nearest Date Growth in Pre-Tax Income Growth i
Slide 17: Balance Sheet Strength
BALANCE SHEET STRENGTH Green Brick continues to maintain its position as one of the lowest leveraged public builders GRBK Debt to Capital is 26.4% as of March 31, 2021 versus an average 38.3% for covered public builders (Peer data based on most recent filings as of 5.4.2021). Debt to Total Capital E
Slide 18: Appendix
APPENDIX G R E E N B R I C K P A R T N E R S | Q1 2021 INVESTOR CALL PRESENTATION 18
Slide 19: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Homebuilding Gross Margin Reconciliation Three Months Ended Three Months Ended (Unaudited, in Thousands) March 31, 2021 March 31, 2020 Residential Units Revenue $217,236 $191,187 Less: Mechanic’s Lien Contracts Revenue (1,102) (1,939) Home Closings Revenue $216,134 $
Slide 20: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted GRBK Pre-tax Income, EBITDA, and Interest Coverage Ratio Three Months Three Months Last Twelve Months (Unaudited, in Thousands) Ended Ended Ended March 31, 2021 March 31, 2020 March 31, 2021 Net Income Attributable to Green Brick $ 25,969 $ 15,917 $123,745 Add Back:
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION GRBK Pre-tax Income Return on Average Invested Capital (Unaudited, in Thousands) Three Months Three Months Twelve Months Ended Ended Ended March 31, 2021 March 31, 2020 March 31, 2020 Net Income Attributable to Green Brick $ 25,969 $ 15,917 $123,745 Income Tax Expense Attribu
Slide 22: Financial Highlights
FINANCIAL HIGHLIGHTS (Unaudited) Q1 Q1 Qtr over Qtr (Dollars in Millions, Except EPS) Notes 2021 2020 Change New Homes Delivered 516 448 15.2% Net New Home Orders 1,082 632 71.2% Record net new orders. We beat Q4 2020 orders of 848 by 28%. Average Active Selling Communities 96 94 2.1% Absorption Rat
Slide 23: First Quarter 2021 Investor Call Presentation
FIRST QUARTER|2021 INVESTOR CALL PRESENTATION 2805 Dallas Parkway, Suite 400 Plano, Texas 75093 | www.greenbrickpartners.com G R E E N B R I C K P A R T N E R S | Q1 2021 INVESTOR CALL PRESENTATION