Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q1 2023 Earnings Presentation
14 slides from Green Brick Partners's earnings presentation, May 4, 2023
Slide 1: Investor Presentation 2023 First Quarter
Investor Presentation 2023 First Quarter 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation and our conference 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 e
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: Strategic Advantages
Strategic Advantages Net Sales Order YoY Change (Most Recently Reported Quarter) 78% We believe we are well positioned to navigate volatility. • Footprint in the best markets of DFW and Atlanta o Demographic shift, job creation, and in-migration provide long-term 12% tailwinds in our markets o Dalla
Slide 5: Industry-Leading Gross Margins
Industry-Leading Gross Margins Green Brick has maintained one of the best gross margins in the industry. Gross Margin Percentage (Most Recently Reported Quarter) 29.1% 27.8% 26.8% 26.8% 26.4% 26.4% 27.6% 23.5% 25.6% 22.5% 23.1% 22.1% 24.6% 21.6% 20.3% 23.9% 23.5% 19.6% 18.6% 22.4% 21.6% 21.5% 21.5%
Slide 6: Millennials Entering Prime Home Buying Age
Millennials Entering Prime Home Buying Age With the 35-44 year-old demographic considered the most active homebuyer, growth of this buyer segment supports future strong demand Population Of 35-44 Year-Olds In The U.S. Based On Ten-Year Trailing Birth Rates Population segment growth is expected to be
Slide 7: Single-Family Inventory Remains Low
Single-Family Inventory Remains Low Both existing and new single-family home inventory remain near all-time lows across the country 7
Slide 8: Highlights – Q1 2023
Highlights – Q1 2023 • Net new home orders increased 77.5% year-over- Q1 Q1 year, the largest increase among peers. Quarterly 2023 2022 Change absorption rate increased 66.3% year-over-year to 13.3, a record in company history. Net new home orders 1,067 601 77.5% • Residential units revenue increase
Slide 9: Business Priorities
Business Priorities Cancellation Rate (Most Recently Reported Quarter) 36% 32% 30% 30% • Manage closings in current backlog o Actively working with buyers at all stages to secure 21% 19% 20% 18% 18% financing. Buyer credit profiles remain consistent 15% 16% 14% 14% 14% o Cancellation rate dropped si
Slide 10: Finished Lot Position Provides Opportunities
Finished Lot Position Provides Opportunities • Expect to have approximately 6,000 finished lots as 12/31/23. • Approximately 75% of our finished lots as of 12/31/23 are expected to be located in infill locations. Approximately Approximately • New communities provide ample runway to generate favorabl
Slide 11: Expected Lot Deliveries In 2023 - DFW
Expected Lot Deliveries In 2023 - DFW Majority of our DFW lots are being delivered in infill and adjacent “desirable areas” 3,851 Lots Delivered Q1 2023 Expected Lots To Be Delivered in 2023 11
Slide 12: Expected Lot Deliveries In 2023 - Atlanta
Expected Lot Deliveries In 2023 - Atlanta Majority of our Atlanta lots are being delivered in infill and adjacent “desirable areas” 3,851 Lots Delivered Q1 2023 Expected Lots To Be Delivered in 2023 12
Slide 13: Appendix
Green Brick Partners Appendix 13
Slide 14: Appendix: Net Debt To Total Capitalization (as of 3/31/23)
Appendix: Net Debt To Total Capitalization (as of 3/31/23) Cash and cash Gross Net equivalents Total debt, net of debt issuance costs $348,074 $(177,271) $170,803 Total Green Brick Partners, Inc. stockholders’ equity $1,114,154 $- $1,114,154 Total capitalization $1,462,228 $(177,271) $1,284,957 Debt