Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q2 2016 Earnings Presentation
15 slides from Green Brick Partners's earnings presentation, Aug 8, 2016
Slide 1: Second Quarter 2016 Investor Call Presentation
Green Brick Partners Second Quarter 2016 Investor Call Presentation August 8, 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: Second quarter 2016 highlights
Second quarter 2016 highlights 3 Second quarter pre-tax income attributable to Green Brick of $11 million was up 85% from the same period in 2015 Best home sale revenues in our company’s history, with closings valued at $93.7 million in the quarter Year-to-date home closing revenues were up 46
Slide 5: 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 6: Housing starts are highly correlated to jobs
5 Housing starts are highly correlated to jobs and we build in two of the highest job growth markets.
Slide 7: 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. 6
Slide 8: Dallas market continues 5-year expansion but still below prior peak
7 Dallas market continues 5-year expansion but still well below prior peak
Slide 9: GRBK has over 2,800 lots in Dallas
8 GRBK has over 2,800 lots in Dallas where the market continues its 7-year trend of constrained supply
Slide 10: Atlanta market also continues to expand but below prior peak
9 Atlanta market also continues to expand but still well below prior peak
Slide 11: 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 11% versus an average 39% for covered public builders GRBK’s eventual target is approximately 35%. 10 Citi Research data is as of June 30, 2016; “Net Debt” equals Total Debt minus Cash
Slide 12: 2nd quarter 2016 financial highlights
2nd quarter 2016 financial highlights Q2 2016 versus Q2 2015: - Net new orders increased by 41% - Home sales revenues increased by 55% - Average sales price of homes delivered increased by 19% - Dollar value of units in backlog increased by 37% - Average sales price of units in backlog increased b
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 (Unaudited, in thousands, except per share amounts) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Basic Adjusted EPS Net income attributable to Green Brick — basic $6,743 $9,837 Income tax provision attributable to Green Brick $4,213 $5,636 Pre-tax income