Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q4 2017 Earnings Presentation
21 slides from Green Brick Partners's earnings presentation, Mar 12, 2018
Slide 1: Green Brick Partners Q4 2017 Investor Call Presentation
1 GREEN BRICK PARTNERS Q4 2017 INVESTOR CALL PRESENTATION MARCH 12, 2018 Exhibit 99.2
Slide 2: Forward Looking Statements
2 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
3 MANAGEMENT PRESENTERS 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 Realty Corp.
Slide 4: Market Update: Housing market is under supplied
4 MARKET UPDATE The housing market is being under supplied • Demand is there; the new challenge is building new homes that buyers want in locations they can afford.
Slide 5: Market Update: National Economic Overview
5 MARKET UPDATE National Economic Overview Top Job Growth Markets Ranked by Change in Employment – December 2017 Housing starts are highly correlated to jobs and we build in two of the highest job growth markets Source: Metrostudy - MetroUSA
Slide 6: Market Update: Share of starts in two largest markets
6 MARKET UPDATE We are less than 2.0% of the starts in two of the largest housing markets, giving us significant opportunity for growth Source: Metrostudy - MetroUSA GRBK has also entered the Colorado Springs market through our investment in Challenger Homes.
Slide 7: Market Update: Dallas/Fort Worth Market starts and closings
7 MARKET UPDATE Dallas/Fort Worth Market SFD-TH – Starts and closings Dallas market continues 6-year expansion but is still well below prior peak Source: Metrostudy - MetroUSA 33,243 31,708 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4
Slide 8: Market Update: Dallas/Fort Worth Lot Inventory
8 MARKET UPDATE Dallas/Fort Worth Market Lot Inventory GRBK has almost 4,600 lots in Dallas where the market continues its 7-year trend of constrained supply Source: Metrostudy - MetroUSA 50,344 18.2 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 80,00
Slide 9: Market Update: Atlanta market
9 MARKET UPDATE The Atlanta market also continues to expand but is still well below prior peak Source: Metrostudy - MetroUSA 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 U n i t s Quarter Atlanta Region 16 Year History Annual Construction Starts and Closings A
Slide 10: Green Brick at a Glance
10 GREEN BRICK AT A GLANCE • We are a diversified homebuilding and land development company • We build and deliver homes through our controlled builders in which we own a 50% controlling interest as well as our investment in unconsolidated builder partners • We sell lots and provide lot acquisition
Slide 11: Challenger Homes
11 CHALLENGER HOMES • On August 15, 2017, GRBK acquired a 49.9% ownership of Challenger Homes, effective August 1, 2017 • With this investment in an unconsolidated subsidiary, Green Brick has expanded into Colorado Springs and the Pikes Peak Region: • In January 2017, Forbes declared the region one
Slide 12: Corporate Structure
12 CORPORATE STRUCTURE • We are a diversified homebuilding and land development company with strong sponsor ownership and controlling interests in our aligned homebuilders. 50%50%50%50% 49.99% 100%
Slide 13: Quarterly Spotlight: Heritage Creekside, Plano, TX
13 QUARTERLY SPOTLIGHT Heritage Creekside, Plano, TX – Modern Townhomes in the Heart of a Connected Community • Heritage Creekside is a neighborhood made up of creek side urban apartments, lofts, townhomes and single-family homes all within walking distance from a mix of shops, restaurants, hotels,
Slide 14: GRBK: A True Growth Story
14 GRBK: A TRUE GROWTH STORY We have the strong balance sheet and operational excellence for continued growth
Slide 15: Balance Sheet Strength
15 BALANCE SHEET STRENGTH GRBK has one of the lowest debt-to-capital ratios amongst public builders Citi Research data for comparative companies is reported as of November 3, 2017; “Net Debt” equals Total Debt minus Cash. Net Debt to Total Capital Q4 2017 • GRBK net debt to capital is about 16% vers
Slide 16: Financial Highlights
16 FINANCIAL HIGHLIGHTS Quarter over Quarter Year over Year Q4 2016 Q4 2017 Increase 2016 2017 Increase Net New Home Orders 197 265 35% 880 1,063 21% Home Closings - Units 275 292 6% 844 990 17% Home Closing Revenues $117.0 $133.5 14% $365.2 $435.6 19% Ending Active Selling Communities 50 55 10% Hom
Slide 17: Operational Highlights
17 OPERATIONAL HIGHLIGHTS LTM Adjusted Gross Margins LTM GRBK Pre-Tax Income to Homebuilding Revenues
Slide 18: Key Takeaways
18 KEY TAKEAWAYS • Significant growth opportunities exist in Dallas, Atlanta and Colorado Springs ̶ three of the most attractive homebuilder markets in the U .S. • We have the four pillars to support significant growth: lot position, balance sheet, management team, and builders. • Proven success in
Slide 19: Non-GAAP Reconciliation: GRBK Pre-tax Income Percentage
19 NON-GAAP RECONCILIATION GRBK Pre-tax Income as a Percentage of Homebuilding Revenues (Unaudited, in thousands) 12 Months Ended Dec 31, 2016 12 Months Ended Mar 31, 2017 12 Months Ended June 30, 2017 12 Months Ended Sep 30, 2017 12 Months Ended Dec 31, 2017 LTM Net income attributable to Green Bri
Slide 20: Non-GAAP Reconciliation: Adjusted Homebuilding Gross Margin
20 NON-GAAP RECONCILIATION Adjusted Homebuilding Gross Margin Reconciliation (Unaudited, in thousands) 12 Months Ended Dec 31, 2016 12 Months Ended Mar 31, 2017 12 Months Ended June 30, 2017 12 Months Ended Sep 30, 2017 12 Months Ended Dec 31, 2017 Sale of Residential Units $365,164 $391,933 $398,54
Slide 21: 2805 North Dallas Parkway, Suite Plano, TX 75093 www.greenbrickpartners.com
21 2805 North Dallas Parkway, Suite 400 Plano, TX 75093 www.greenbrickpartners.com