Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q4 2021 Earnings Presentation
21 slides from Green Brick Partners's earnings presentation, March 2022
Slide 1: Investor Presentation: 2021 Fourth Quarter and Full Year
Investor Presentation 2021 Fourth Quarter and Full Year
Slide 2: Forward Looking Statements
Forward Looking Statements This press release 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 ex
Slide 3: Management Presenters
Jim Brickman Chief Executive Officer and Co-Founder Management Presenters Rick Costello Chief Financial Officer Jed Dolson Chief Operating Officer and Executive Vice President 3
Slide 4: 2021 Q4 Highlights
2021 Q4 Highlights • Fourth quarter year-over-year revenue growth of 78%. Q4 Q4 % 2021 2020 Change • Fourth quarter year-over-year income before taxes up 114%. New homes delivered 823 585 40.7% • Improved Q4 SG&A leverage 350 bps. Total revenues $452,251 $254,100 78.0% • Diluted EPS up 114% for the
Slide 5: 2021 Full Year Highlights
2021 Full Year Highlights % 2021 2020 Change New homes delivered 2,834 2,208 28.4% • Total revenue has grown by a compounded annual growth rate of 33% over the last two years. Total revenues $1,402,876 $976,021 43.7% • Lots owned and controlled up 98% year-over-year. Net income attributable to GRBK
Slide 6: Spec Focus
Spec Focus • Our full-year net home orders were flat from 2,885 in 2020 to 2,851 in 2021, but down in Q4 by 44% from Q4 2020 as Units Under Construction we continued to meter sales. As a result, we increased 2500 spec units under construction from 28% in Q1 2021 to 39% in Q4 2021. 2000 2,278 1500 1,
Slide 7: Return on Equity Focus
Return on Equity Focus Net Income Return on Average Equity* 30.0% 25.0% 25.9% 20.0% We have had a substantial increase in return on average equity, with a sizeable increase in net 19.5% 15.0% income of 224% over the last two years. 10.0% 11.8% Operational initiatives: 5.0% 0.0% • Expand Trophy Signa
Slide 8: Gross Margin
Gross Margin Green Brick continues to maintain some of the best margins in the industry, well above most small and mid-cap peers Gross Margin Percentage Year End 12/31/21 30.0% 27.8% 25.0% 26.8% 26.8% 26.2% 26.4% 26.4% 24.9% 24.2% 23.5% 22.5% 23.1% 22.1% 22.3% 20.0% 21.6% 20.3% 19.6% 18.6% 15.0% 10.
Slide 9: Capital Allocation
Capital Allocation Lots Owned and Controlled 35,000 30,000 25,000 28,621 • Closed $337.5 million in low-rate, long-term private Note Purchase Agreements in the last 20,000 2.5 years, including $225 million in 2021 at a 15,000 fixed rate of 3.25% with final maturities in 2028 10,000 14,468 and 2029.
Slide 10: Land Update
Land Update • Land investment remains a top priority with a focus on well-positioned land in attractive submarkets. Eastridge Homesites: 1,178 Lakehaven Homesites: 940 Windmoor 2 • Announced expansion to Austin, Texas through the Homesites: 825 acquisition of 383 acres in Elgin, Texas for a 1,700+ M
Slide 11: Expansion to Austin, TX
Austin MSA Expansion to Austin, TX Population Density • Austin MSA 2021 population of 2.36 million* • Annual population growth of 3%.** • Austin metro area is expected to experience a population growth rate of 42% between 2010 and 2030.*** • 5 th largest starts market in the country in 2021, and 5 t
Slide 12: Expansion to Austin, TX
Austin Major Employers Expansion to Austin, TX • Austin unemployment rate is 2.9% compared to national average of 4%.* • One of the most educated talent pools in the country with 46.6% of adults with at least a bachelor's degree, compared to 32.6% nationally.** • Major employers include: Apple, Face
Slide 13: Demand Wins: Rising Rates VS. Credit Quality and Low Inventory
Demand Wins: Rising Rates VS. Credit Quality and Low Inventory • In September 2021 with 30-year fixed rates near 3.0%, our funded buyers’ average credit score was 758 and their average debt to income ratio was 32.5% (back-end ratio). • In December 2021/January 2022 when 30-year fixed rates ran up fr
Slide 14: Demand Wins: Rising Rates VS. Credit Quality and Low Inventory
Demand Wins: Rising Rates VS. Credit Quality and Low Inventory Resale inventory levels remain at an all-time low across the country, drawing buyers to new construction homes. We continue to raise prices with the release of each lot. Resale Inventory Months of Supply 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0
Slide 15: Demand Wins: Case Studies
Demand Wins: Case Studies Ecco Park – Atlanta, GA | 99 Townhomes • Released first four homes of 99-townhome community mid- January to a VIP list of 2,200+ prospective homebuyers. • Demand remains incredibly strong – sales have moved to a bidding system requiring proof of funds or prequalification le
Slide 16: Debt to Total Capital
Debt to Total Capital Green Brick continues to maintain financial leverage far below the industry average for mid-cap and small-cap peers. Debt to Total Capital as of 12.31.21 60% 58% 50% 45% 40% 43% 40% 40% 35% 36% 37% 37% 30% 28% 28% 20% 10% 0% GRBK MTH TPH KBH LGIH MHO Peer Ave. MDC CCS TMHC BZH
Slide 17: ESG Efforts Update
Green Brick Partners ESG Efforts Update 17
Slide 18: Governance & Oversight Updates; Community Partnerships & Involvement
Governance & Oversight Updates • Creation of sustainability board committee to guide ESG efforts • Board committees are comprised of only independent directors • Board diversity: 29% gender diversity and 66% of board committees chaired by women • Our updated governance scores have improved strongly
Slide 19: Appendix
Green Brick Partners Appendix 19
Slide 20: Appendix: Net Income Return on Average Equity
Appendix: Net Income Return on Average Equity 2021 2020 2019 Net Income - GRBK $190,210 $113,693 $58,656 GRBK Common Equity Beginning $640,242 $523,168 $468,351 GRBK Common Equity Ending $826,852 $640,242 $523,168 GRBK Common Equity Average $733,547 $581,705 $495,760 Net Income Return on Avg GAAP Co
Slide 21: 2021 Fourth Quarter and Full Year
Investor Presentation 2021 Fourth Quarter and Full Year Green Brick Partners |2805 Dallas Parkway Ste 400, Plano TX 75093 | www.greenbrickpartners.com