Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Investor Presentation (September 2021)
34 slides from Green Brick Partners's investor presentation, September 2021
Slide 1: Green Brick Partners Investor Presentation Summer 2021
INVESTOR PRESENTATION |SUMMER 2021 GREEN BRICK PARTNERS INVESTOR PRESENTATION SUMMER 2021
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 INTRODUCTION events or trends an
Slide 3: Management Presenters
MANAGEMENT PRESENTERS INTRODUCTION 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 R
Slide 4: Company Overview
COMPANY OVERVIEW GREEN BRICK PARTNERS INVESTOR PRESENTATION SUMMER 2021 4 4
Slide 5: Company at a Glance
COMPANY AT A GLANCE About Green Brick Partners, Inc. ABOUT US Green Brick Partners is a diversified homebuilding and land development company that acquires and develops land, and provides lots and equity or construction financing to its subsidiary Team Builders and affiliates. We are founded on the
Slide 6: Company at a Glance
COMPANY AT A GLANCE LOCATIONS 2020 Total Homes Closed:* 2,665 2020 Total Home Closings Revenue:* $1,086.6 mm GREEN BRICK PARTNERS INVESTOR PRESENTATION *2020 homes closed and closing revenue includes equity interest in Challenger Homes. Unconsolidated units closed totaled 457 closings, and unconsoli
Slide 7: Company at a Glance: Growth Story
COMPANY AT A GLANCE Green Brick Demonstrates Consistent Growth With Some of the Highest Risk-Adjusted Returns in the Industry GROWTH TOTAL REVENUES (IN MILLIONS) PRE-TAX INCOME ATTRIBUTABLE TO GREEN BRICK (IN MILLIONS) STORY $1,138.2 $183.2 % 2 7.5 .3 % GR: $976.0 44 CA R: G 21 CA $138.7 20 1 Q2 $79
Slide 8: Diversified Builder with Brands in Major Markets
GREEN BRICK IS A DIVERSIFIED BUILDER WITH 8 BRANDS IN 4 MAJOR MARKETS BRANDS & SUBSIDIARY MARKET PRODUCTS PRICE RANGE OWNERSHIP HOMEBUILDER OFFERED SERVICES Dallas, TX Trophy Signature Homes Ft. Worth, TX Single Family $290k - $830k 100% Dallas, TX CB JENI Homes Ft. Worth, TX Townhomes $290k - $500k
Slide 9: Population Growth Is Expected to Drive Future Housing Demand
POPULATION GROWTH IS EXPECTED TO DRIVE FUTURE HOUSING DEMAND Last 10-Year Resident Population Growth for 25 Largest States DEMOGRAPHIC TRENDS 10-Year Population State Growth % Growth Texas 4,000 15.9% Colorado 745 14.8% Washington 981 14.6% GREEN BRICK STATES ARE HIGHLIGHTED Florida 2,737 14.6% Ariz
Slide 10: 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 June 2021, spurred by strong MARKET employment and affordability UPDATE • Due to a 59.0% decline in active listings, DFW saw an 8.7% increase in median listing
Slide 11: Aging of Millennial Generation Is Tailwind for Housing Demand
AGING OF MILLENIAL GENERATION IS EXPECTED TO BE TAILWIND FOR HOUSING DEMAND With the 35-44 year-old demographic considered the most active homebuyer, growth of this buyer segment indicates future strong demand POPULATION OF 35-44 YEAR-OLDS IN THE US BASED ON TEN-YEAR TRAILING BIRTH RATES 43,000 Popu
Slide 12: Sustained Growth Through Prudent Land Development
SUSTAINED GROWTH THROUGH PRUDENT LAND DEVELOPMENT Our results demonstrate the strong balance sheet, lot position, and operational excellence required for continued growth EXPANDING TOTAL PERIOD REVENUE AND PERIOD-END LOT SUPPLY FOR GREEN BRICK PARTNERS (1) LOT POSITION 1,200,000 25,000 48% growth in
Slide 13: Growth in Owned and Controlled Lots Leads Peers
GROWTH IN OWNED AND CONTROLLED LOTS LEADS PEERS Total lots grew 13% from Q1 2021 to Q2 2021, our fourth consecutive quarter to achieve double-digit growth UNRIVALED 12-MONTH PERCENTAGE CHANGE IN LOTS OWNED AND CONTROLLED LOT GROWTH GRBK 132.7% CCS 88.4% LGIH 71.3% DHI 54.1% MTH 46.5% MDC 37.5% KBH 2
Slide 14: Land Position
LAND POSITION Land is well positioned in attractive submarkets SUBMARKET LOCATIONS ATLANTA METRO AREA DALLAS-FT. WORTH METRO AREA √ SUBMARKET GRADES GRBK LOCATIONS MOST DESIRABLE DESIRABLE AREA MEDIAN DESIRABILITY MORE AFFORDABLE MOST AFFORDABLE GREEN BRICK PARTNERS INVESTOR PRESENTATION SUMMER 2021
Slide 15: Availability of Finished Lot Supply
AVAILABILITY OF FINISHED LOT SUPPLY Delivery of finished lots expected over the next 18 months should provide ample runway for sustained delivery growth FINISHED LOTS 42* 1,800 COMMUNITIES LOTS ANTICIPATED TO BE UNDER DEVELOPMENT FINISHED IN THE NEXT 6 MONTHS 89 4,600 AVERAGE ACTIVE SELLING COMMUNIT
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS GREEN BRICK PARTNERS INVESTOR PRESENTATION SUMMER 2021 16 16
Slide 17: A Seasoned and Aligned Management Team
A SEASONED AND ALIGNED MANAGEMENT TEAM Our management team is comprised of building and finance veterans with decades of experience in our markets Significant expertise in capital allocation, land acquisition, entitlement, development, construction, marketing, and home sales MANAGEMENT TEAM Jim Bric
Slide 18: Building Award-Winning Homes and Communities
BUILDING AWARD-WINNING HOMES AND COMMUNITIES NATIONAL RECOGNITION 2021 2020 2019 Forbes Magazine Fortune Magazine Fortune Magazine #5 on the 2021 America’s “100 Fastest Growing Companies” “100 Fastest Growing Companies” Best Small Companies List in the world in the world D Magazine's D CEO Best Land
Slide 19: Shift to Larger Trophy Communities Accelerates Growth
SHIFT TO LARGER AND HIGHER ABSORPTION TROPHY COMMUNITIES ACCLERATES GROWTH IN 2021 Green Brick has grown units under construction by 40% in 6 months UNITS UNDER CONSTRUCTION CONSOLIDATED UNITS UNDER TROPHY UNITS UNDER CONSTRUCTION CONSTRUCTION 1,200 Trophy started 1,409 homes over Units under 800 95
Slide 20: Trophy Signature Homes Growth Trajectory
FUTURE DELIVERIES WILL CONTINUE TO MOVE TOWARDS TROPHY THE ENTRY-LEVEL AND FIRST-TIME MOVE-UP BUYER SIGNATURE With DFW starts and closings running at 57k and 45k units, respectively, over the last 12 months, Trophy has the capacity HOMES for higher growth Growth Trajectory COMPARISON OF TROPHY VOLUM
Slide 21: Trophy Signature Homes Demonstrates Excellent Financial Results
TROPHY SIGNATURE HOMES DEMONSTRATES EXCELLENT FINANCIAL RESULTS TROPHY Growth of Trophy brand is expected to provide a significant opportunity to drive our industry-leading results even higher SIGNATURE HOMES METRICS AVERAGE EXPECTED TROPHY STATISTICS VS OTHER SUBSIDIARIES 160+ Lots 12% SIZE OF FY 2
Slide 22: Green Brick Continues to Demonstrate Strong Top-Line Growth
GREEN BRICK CONTINUES TO DEMONSTRATE STRONG TOP-LINE GROWTH HOME Consolidated average sales price increased 4.8% sequentially from Q1 21 but declined 0.3% on a last twelve months basis CLOSINGS due to successful expansion of entry-level segment REVENUE NEW HOMES DELIVERED FOR THE HOME CLOSINGS REVEN
Slide 23: Substantial Backlog Provides Visibility in Future Closings
SUBSTANTIAL BACKLOG WILL CONTINUE TO PROVIDE VISIBILITY IN FUTURE CLOSINGS FINANCIAL Backlog is up 118% YOY. Our backlog is the second-highest in our history, despite closing a record number of units in Q2 2021. HIGHLIGHTS Net New Orders By metering sales during Q2, the Company successfully increase
Slide 24: Financial Results Demonstrate Strong Risk-Adjusted Returns
GREEN BRICK’S FINANCIAL RESULTS CONTINUE TO DEMONSTRATE STRONG RISK-ADJUSTED RETURNS Robust year over year growth in Q2 2021 is expected to continue over the next two quarters. YTD YTD Q2 2021 Q2 2020 Increase Q2 2021 Q2 2020 Increase Homebuilding Gross Margin 26.8% 23.2% 360 bps 26.3% 23.1% 320 bps
Slide 25: 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 GROSS GRBK Gross Margin Percentage was 26.3% for the six months ended June 30, 2021 versus an average 22.3% for covered MARGIN public builde
Slide 26: Reduced Risk by Diversifying Customer Mix
GREEN BRICK HAS REDUCED RISK BY DIVERSIFYING CUSTOMER MIX Entry-level plus first-time move-up segments have increased from 16% to 41% over two years. HOMEBUYER Homebuyer Customer Mix DIVERSIFICATION Last Six Months GRBK Home Closings Revenue by Product Type YTD Q2 2019 HOME CLOSINGS REVENUE YTD Q2 2
Slide 27: 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 PEER peers small and mid-cap peers COMPARISON LAST TWELVE MONTHS ENDING 6.30.2021 OR NEAREST DATE Growth in Pre-Tax
Slide 28: Balance Sheet Strength
BALANCE SHEET STRENGTH Green Brick continues to maintain financial leverage below the industry average for mid-cap and small-cap peers. FINANCIAL LEVERAGE GRBK Debt to Capital was 33.8% as of June 30, 2021 versus an average 42.0% for covered mid-cap and small-cap public builders (Peer data based on
Slide 29: Appendix
APPENDIX GREEN BRICK PARTNERS INVESTOR PRESENTATION SUMMER 2021 29 29
Slide 30: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Homebuilding Gross Margin Reconciliation APPENDIX Six Months Six Months Three Months Ended Three Months Ended (Unaudited, in Thousands) Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Residential Units Revenue $333,500 $228,667 $550,736 $419,854 L
Slide 31: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION GRBK Pre-tax Income, EBITDA, and Interest Coverage Ratio APPENDIX Three Months Three Months Six Months Six Months (Unaudited, in Thousands) Ended Ended Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net Income Attributable to Green Brick $ 52,263 $ 33,647
Slide 32: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION GRBK Pre-tax Income Return on Average Invested Capital APPENDIX Three Months Three Months Six Months Six Months (Unaudited, in Thousands) Ended Ended Ended Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Net Income Attributable to Green Brick $ 52,263 $ 33,647 $
Slide 33: Financial Highlights
FINANCIAL HIGHLIGHTS (Unaudited) Q2 Q2 Qtr over Qtr YTD Q2 YTD Q2 YTD over YTD APPENDIX (Dollars in Millions, Except EPS) 2021 2020 Change 2021 2020 Change New Homes Delivered 757 553 36.9% 1,273 1,001 27.2% Net New Home Orders 604 582 3.8% 1,686 1,214 38.9% Average Active Selling Communities 89 92
Slide 34: Green Brick Partners Contact
INVESTOR PRESENTATION |SUMMER 2021 GREEN BRICK PARTNERS 2805 Dallas Parkway, Suite 400 Plano, Texas 75093 | www.greenbrickpartners.com INVESTOR PRESENTATION SUMMER 2021
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