Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Credit Suisse SMID Conference 2015
18 slides from Green Brick Partners's conference presentation, Sep 16, 2015
Slide 1: Green Brick Partners – Credit Suisse SMID Conference Presentation
Green Brick Partners Credit Suisse SMID Conference Presentation September 16-17, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation and the oral statements made by representatives of Green Brick Partners, Inc. (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
Slide 3: Senior Management
Senior Management n Jim Brickman − Chief Executive Officer − Over 35 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 n R
Slide 4: Green Brick at a Glance
Green Brick at a Glance Controlled Builders n Uniquely structured residential land development and homebuilding company Dallas Products offered − We build and deliver homes through our four CB JENI Townhomes builders in which we own a 50% controlling (2) Normandy Homes Single family interest GA Sout
Slide 5: Key Business Highlights
Key Business Highlights ü Experienced management team ü Uniquely structured business model that maximizes profitability ü Attractive land positions in our core markets Disciplined investment approach coupled with strong land sourcing and ü evaluation capabilities ü Currently focused on high growth D
Slide 6: Experienced Management Team
Experienced Management Team n Our management team is comprised of building and finance veterans that have decades of experience in our core markets with expertise in capital allocation, land acquisition, entitlement, development, construction, marketing and home sales Jim Brickman David Einhorn Foun
Slide 7: Corporate Structure
Corporate Structure Strong sponsor ownership and our controlled builders n We are a uniquely structured company that combines residential land development and homebuilding with strong sponsor ownership and controlling interests in our homebuilders 49.4% 50% 50% 50% 50% 80% 100% Note: Greenlight Capi
Slide 8: Uniquely Structured Business Model
Uniquely Structured Business Model n Three complementary revenue streams n Preserves upside and limits downside n Controlled ownership of local builders with strong local management teams Sale of land to controlled builders Sale of homes 1. Land Acquisition 2. Construction Lending 3. Equity Particip
Slide 9: Our Operating Strategy
Our Operating Strategy n Our business model provides the flexibility to allocate capital and land assets to maximize our profitability n We believe our controlled builder structure creates a virtuous cycle of growth and promotes optimal risk-adjusted returns Virtuous cycle of growth 1 n Target succe
Slide 10: Attractive Land Positions in Our Core Markets
Attractive Land Positions in Our Core Markets n ~76% of our 4,665 lots are owned; the remainder are controlled under option contracts n If we were to include homes under construction in our land positions, our total lots owned and controlled would be almost 5,200 2Q 2015 lots by geography 2Q 2015 in
Slide 11: Disciplined Investment Approach Coupled with Strong Land Sourcing and Evaluation Capabilities
Disciplined Investment Approach Coupled with Strong Land Sourcing and Evaluation Capabilities n We believe that our extensive experience and the strong reputation of our management team combined with our long-standing relationships with other market participants, provide us with a competitive advant
Slide 12: Currently Focused on High-Growth Dallas and Atlanta Markets
Currently Focused on High-Growth Dallas and Atlanta Markets The Dallas and Atlanta metropolitan areas represent two of the most attractive markets in the U.S. in terms of single family permits issued and long-term housing fundamentals Market highlights Single family building permits – Top 10 U.S. ma
Slide 13: Growth through Opening New Communities
Growth through Opening New Communities n As of June 30, 2015, we offered homes in 43 communities − This is a 30% year-to-date increase over the 33 selling communities as of December 31, 2014 − This 30% increase in 2015 follows a 32% increase in 2014 − Management expects community count to grow by >3
Slide 14: Operational performance
Operational performance Revenue New homes delivered ($ in millions) ($ in millions) $246.1 $247.7 $206.0 $200.7 $202.3 $45.5 $41.7 $168.6 $33.7 $93.8 $116.6 $115.8 $73.0 $50.1 $22.9 $112.1 $84.0 $38.4 $52.8 Units: 182 556 587 602 $11.7 2012 2013 2014 LTM 2012 2013 2014 LTM 6/30/2015 6/30/2015 Reside
Slide 15: 2Q 2015 results overview
2Q 2015 results overview n We have confirmed guidance for FY 2015 pre-tax income attributable to Green Brick Partners in the range of $29 to $32 million n Builder operations revenue in 2Q 2015 of $60.4 million compared to $55.0 million in 2Q 2014 n Land development revenue in 1st half of 2015 of $20
Slide 16: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EPS Reconciliation Six months ended (in thousands, except per share amounts) June 30, 2015 Basic Adjusted EPS Net income attributable to Green Brick — basic $7,806 Income tax provision attributable to Green Brick $4,310 Pre-tax income $12,116 Adjusted weighted-averag
Slide 17: We have the Lowest Leveraged Balance Sheet of Any Peer Public Builder
We have the Lowest Leveraged Balance Sheet of Any Peer Public Builder n In July 2015, we successfully completed a $174.5 million public n We believe our strong balance sheet will be positioned to offering of our common stock at a price of $10.00 per share for support the growth of our business: 17.4
Slide 18: Key Takeaways
Key Takeaways n Uniquely structured residential land development and homebuilding company n Significant growth opportunities in Dallas and Atlanta – two of the three most attractive homebuilder markets in the U.S. n Distinct competitive advantage in sourcing and developing land n Success in executin
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