Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q1 2017 Earnings Presentation
16 slides from Green Brick Partners's earnings presentation, May 8, 2017
Slide 1: First Quarter 2017 Investor Call Presentation
Green Brick Partners First Quarter 2017 Investor Call Presentation May 8, 2017 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: First quarter 2017 highlights
First quarter 2017 highlights 3 First quarter pre-tax income attributable to Green Brick of $10.1 million was up 123% from the same period in 2016 Home closing revenues of $93.4 million in Q1 2017 were up 40% from Q1 2016 on a 40% increase in new homes delivered Net new orders of 287 homes in
Slide 5: Housing starts are highly correlated to jobs
4 Housing starts are highly correlated to jobs and we build in two of the highest job growth markets.
Slide 6: We are less than 1.5% of the starts in two large markets
We are less than 1.5% of the starts in two of the largest housing markets, giving us significant opportunity for growth. 5
Slide 7: Dallas market continues 6-year expansion
6 Dallas market continues 6-year expansion but is still well below the prior peak Dallas/Fort Worth Market SFD-TH – Starts and Closings Source: Metrostudy - MetroUSA
Slide 8: GRBK has over 3,400 lots in Dallas
7 GRBK has over 3,400 lots in Dallas where the market continues its 7-year trend of constrained supply Dallas/Fort Worth Market Lot Inventory Source: Metrostudy - MetroUSA
Slide 9: Atlanta market also continues to expand
21,616 +14% 20,337 +15% 8 Atlanta market also continues to expand but is still well below the prior peak Source: Metrostudy - MetroUSA 73% of activity is in North Atlanta.
Slide 10: GRBK has 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 10% versus an average 40% for covered public builders GRBK’s has no off-balance sheet debt embedded in unconsolidated JV’s, unlike many peers GRBK’s eventual target is approximately 35%
Slide 11: First quarter 2017 financial highlights
First quarter 2017 financial highlights Q1 2017 versus Q1 2016: - Net new orders increased by 20% - Home sales revenues increased by 40% - Home deliveries also increased by 40% - Dollar value of units in backlog increased by 12% 10
Slide 12: 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 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: Adjusted EPS
Non-GAAP Reconciliation 14 Adjusted EPS Reconciliation (Unaudited, in thousands, except per share amounts) Three Months Ended March 31, 2017 Basic adjusted EPS Net income attributable to Green Brick – basic $6,197 Income tax provision attributable to Green Brick $3,855 Pre-tax income $10,052 Adjuste
Slide 16: Non-GAAP Reconciliation (continued): Adjusted Homebuilding Gross Margin
Non-GAAP Reconciliation (continued) 15 Adjusted Homebuilding Gross Margin Reconciliation (Unaudited, in thousands) 12 Months Ended Mar 31, 2016 12 Months Ended Jun 30, 2016 12 Months Ended Sep 30, 2016 12 Months Ended Dec 31, 2016 12 Months Ended Mar 31, 2017 Sale of Residential Units $271,234 $304,