Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q2 2023 Earnings Presentation
15 slides from Green Brick Partners's earnings presentation, Aug 3, 2023
Slide 1: Investor Presentation 2023 Second Quarter
Investor Presentation 2023 Second 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 YTD Net Sales Orders YoY Change (Two Most Recently Reported Quarters) 65% We believe we are well positioned to capture future demand and increase 46% market share. • Footprint in two of the best markets of DFW and Atlanta o Demographic shift, job creation, and in-migration provi
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) 31.3% 27.8% 26.8% 26.8% 26.4% 26.4% 29.6% 23.5% 22.5% 23.1% 22.1% 26.4% 21.6% 20.3% 19.6% 18.6% 24.4% 24.3% 24.2% 23.6% 23.3% 22.5% 22.1% 2
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 historical lows across the country 7
Slide 8: Highlights – Q2 2023
Highlights – Q2 2023 • Net new home orders increased 50.8% year-over- year, the largest increase among peers and the Q2 Q2 highest second quarter in company history. 2023 2022 Change Quarterly absorption rate increased 39.4% year- over-year to 9.9. Net new home orders 822 545 50.8% • Residential uni
Slide 9: Highlights – YTD 2023
Highlights – YTD 2023 • Net new home orders increased 64.8% year-over- YTD YTD year, the largest increase among peers. Change 2023 2022 Absorption rate increased 53.3% year-over-year to 11.5. Net new home orders 1,889 1,146 64.8% • Residential units revenue increased 3.1% year- New homes delivered 1
Slide 10: Business Priorities
Cancellation Rate (Most Recently Reported Quarter) Business Priorities 26% 22% 20% 21% 18% 18% • Manage closings in current backlog 16% o Actively working with buyers at all stages to secure 15% 14% 14% financing. Buyer credit profiles remain consistent 13% 12% 12% 11% 11% o Cancellation rate remain
Slide 11: Finished Lot Position Provides Opportunities
Finished Lot Position Provides Opportunities • We have completed over 2,000 lots through 6/30/2023. Expect to have approximately 6,100 finished lots as of 12/31/2023, versus approximately 2,900 finished lots as of 12/31/2022, after averaging about 2,850 home starts per year for 2020 through 2022. Ap
Slide 12: 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” 12
Slide 13: 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 YTD as of 6/30/2023 Lots To Be Delivered in 2023 13
Slide 14: Appendix
Green Brick Partners Appendix 14
Slide 15: Appendix: Net Debt To Total Capitalization (as of 6/30/23)
Appendix: Net Debt To Total Capitalization (as of 6/30/23) Less: Cash and Gross Net cash equivalents Total debt, net of debt issuance costs $348,393 $209,595 $138,798 Total Green Brick Partners, Inc. stockholders’ equity $1,174,077 $0 $1,174,077 Total capitalization $1,522,470 $209,595 $1,312,875 De