Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q1 2018 Earnings Presentation
19 slides from Green Brick Partners's earnings presentation, May 7, 2018
Slide 1: y s & cS
y s & 2 cS 5
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and the oral stalements made by representatives of the Company during Ihe course of this presentation thal are no! historical facts are forward-looking statements, These statements are offen, but not aways, made through the use of words or phrases such as
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 Really Corp. J
Slide 4: Market Update: National Economic Overview
MARKET UPDATE National Economic Overview Top Job Growth Markets Ranked by Change in Employment - February 2018 Total Annual Job Annual Job Rank MSA. Employment _ Growth Growth % 1__New York-Newark-Jersey City, NY-NJ-PA 9,623,600 124,200 1.3% 2 allas-Fort Worth-Arlinc 1 3, 00 3__Los Angeles-Long Beac
Slide 5: Market Update: National Housing Market
MARKET UPDATE We are less than 2.0% of the starts in two of the largest housing markets, giving us significant opportunity for growth National Housing Market Annual Starts by Market — February 2018 Dallos/Fl. Worlh souston 24958) Central Reda es] 7] southern California 2390] Denver/Colorado Springs
Slide 6: Market Update: Dallas/Fort Worth Market
MARKET UPDATE Dallas market continues 6-year expansion but is still well below the 2006 peak of more than 50,000 starts. Dallas/Fort Worth Market SFD-TH ~ Starts and closings 40,000 Annual Starts Annual dosings 35,000 30,000 ~ 34,923 Annual Sats & Gosings BO g 8 Source: Metrostudy - MetroUSA 1908 19
Slide 7: Market Update: Dallas Lot Inventory
MARKET UPDATE GRBK has nearly 4,600 lots in Dallas where the market continues its 7-year trend of constrained supply Dallas/Fort Worth Market Lot Inventory 100,000 ‘=Vecant Developed Lats 80.0 ‘mes Annual Starts ==VDL Months of Supply g $ 8 Lots/Starts 5.8 Aiddng 0 suuow it. Poeetee ssi ee 10.0 Sour
Slide 8: Market Update: Atlanta Market
MARKET UPDATE The Atlanta market also continues to expand but is still well below prior peak Allanta Region 16 Year History Annual Construction Starts and Closings 5.000 50,000 mv 70% of activity isin North Atlanta \ where GRBK build: soo \ 24,451 : AS 49.9% = =o fJowe o
Slide 9: Green Brick at a Glance
GREEN BRICK AT A GLANCE Controlled Builders Products Offered + We are a diversified homebuilding and land development company. + We build and deliver homes through our controlled builders in which we own a 50% to 80% controlling interest as well as our investment in unconsolidated builder partners.
Slide 10: Homes Closed and Revenues by Builder for Full Year 2017
Homes Closed and Revenues by Builder for Full Year 20172) se 2017 Total Homes Closed: 1,643 2017 Total Builder Revenues: $652.6M Chtenee Homes”) Revenues SM Isaauenser Combined DFW Builders (JAll amounts are approximate. (2)Green Brick Partners owns a 49.9% interest in Challenger Homes as of 17, wit
Slide 11: GRBK GHO Homes
GRBK GHO HOMES On April 26th, 2018, GRBK closed on its acquisition of an 80% ownership of GHO Homes. With this investment, Green Brick has expanded into Florida’s Treasure Coast and has expanded its network of Team Builders™ to seven, Green Brick Partners has purchased all of the assets of GHO Homes
Slide 12: Corporate Structure
CORPORATE STRUCTURE + Weare a diversified homebuilding and land development company with strong sponsor ownershio and controlling interests in our aligned homebuilders. ARTNERS I GREEN BRICK P Control | Control | Control | Control | Control PROVIDENCE CB JENIDA i Aas GHOFA =| CHALLENGER | SOUTHGATE
Slide 13: GRBK: A True Growth Story
GRBK: A TRUE GROWTH STORY We have the strong balance sheet and inued growth Annual Revenue Growth for Green Brick Partners and Predecessor os otal Revenue 300,000 z 3 400,000 —Revenves from 2 Homebuilding © 300,000 6 2 200,000 g 3 = 100,000 2009 2010 aon 2012 2013 2014 2015 2016 2017_ LIM Q1 2018 fe
Slide 14: Balance Sheet Strength
BALANCE SHEET STRENGTH GRBK has one of the lowest debt-to-capital ratios amongst public builders. We have the capital to continue growing profitably. * GRBK net debt to capital is about 20.5% versus an average 40% for covered public builders ~ GRBK's eventual target is approximately 30 to 35% Net De
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS Unaudited QI 2018 Q12017 17 vs 18 QI Increase Home Closings - Units 267 226 18% Net New Orders 434 287 51% Homebuilding Revenues ($'s in thousands) $120,366 $93,397 29% 3rd Party Lot Closings ($'s in thousands) $7,899 $5,940 33% Total Revenues ($'s in thousands) $128,265 $99,337
Slide 16: Operational Highlights
OPERATIONAL HIGHLIGHTS LTM Adjusted Gross Margins LTM GRBK Pre-Tax Income to Homebuilding Revenues $500,000 24% +18% ele 23.1% 3 BAR 23.0% $450,000 ama 23% $419,156 i $398,546 DNB ze $400,000 : $350,000 $300,000 20% avy ay aay aay ais a Qn? Qa aay ale Ean
Slide 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION GRBK Pre-tax Income as a 12Months 12 Months 12 Months 12. Months 12 Months Ended Ended Ended Ended Ende (Unaudited, in thousands} Mar 31,2017 Jun 30,2017 Sep 30,2017 Dec 31,2017 Mar 31, 2018 LIM Net income attributable to Green Brick $26,859 $27,805 $30,842 $14,970 $19.976 LT
Slide 18: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted ilding Gross Margin 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ende: Ended Ended (Unaudited, in thousands) Mar 31, 2017 June 30,2017 Sep 30,2017 Dec 31, 2017 Mar 31, 2018 Sale of Residential Units $391,933 $398,546 $419,156 $435,644 $462,613 Homebu
Slide 19: Green Brick Partners
GREEN BRICK PARTNERS 2805 North Dallas Parkway, Suite 400 Plano, TX 75093 www.greenbrickpartners.com