Slide 1: Third Quarter 2016 Investor Call Presentation
Green Brick Partners Third Quarter 2016 Investor Call Presentation November 7, 2016 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 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. Rick Costello − Chi
Slide 4: Third quarter 2016 highlights
Third quarter 2016 highlights 3 Third quarter pre-tax income attributable to Green Brick of $9.9 million was up 112% from the same period in 2015 Year-to-date home closing revenues of $248 million in 2016 were up 39% more than the first three quarters of 2015 Year-to-date net new orders of 683
Slide 5: Housing starts are highly correlated to jobs
4 Housing starts are highly correlated to jobs and we build in two of the highest job growth markets.
Slide 6: Less than 1.5% of starts in two fast-growing housing markets
We are less than 1.5% of the starts in two of the fastest growing housing markets, giving us significant opportunity for growth. 5
Slide 7: Dallas market continues 5-year expansion but below prior peak
6 Dallas market continues 5-year expansion but still well below prior peak Dallas/Fort Worth Market SFD-TH – Starts and Closings 29,481 26,825 - 10,000 20,000 30,000 40,000 50,000 60,000 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 A nn ua l S ta rt s & C lo si ng s Annual Starts Annual Cl
Slide 8: Dallas lot inventory and constrained supply
7 GRBK has over 3,400 lots in Dallas where the market continues its 7-year trend of constrained supply Dallas/Fort Worth Market Lot Inventory 45,578 18.6 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 90,000 100,000 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11
Slide 9: Atlanta market continues to expand but below prior peak
8 Atlanta market also continues to expand but still well below prior peak Source: Metrostudy - MetroUSA
Slide 10: One of the lowest debt-to-capital ratios among public builders
GRBK has one of the lowest debt-to-capital ratios amongst public builders GRBK net debt to capital is under 16% 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 11: Third quarter 2016 financial highlights
Third quarter 2016 financial highlights Q3 2016 versus Q3 2015: - Net new orders increased by 46% - Home sales revenues increased by 27% - Dollar value of units in backlog increased by 41% Year-to-date 2016 versus year-to-date 2015: - Net new orders increased by 40% - Home sales revenues increas
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 builders in which we own a 50% controlling interest − We sell lots and provide lot acquisition and vertical 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
Non-GAAP Reconciliation 14 Adjusted EPS Reconciliation and Adjusted Homebuilding Gross Margin (Unaudited, in thousands, except per share amounts) Three Months Ended Sep 30, 2016 Nine Months Ended Sep 30, 2016 Basic adjusted EPS Net income attributable to Green Brick – basic $6,243 $16,080 Income tax