Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q4 2016 Earnings Presentation
16 slides from Green Brick Partners's earnings presentation, Mar 13, 2017
Slide 1: Green Brick Partners Fourth Quarter 2016 Investor Call Presentation
Green Brick Partners Fourth Quarter 2016 Investor Call Presentation March 13, 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: Fourth quarter 2016 highlights
Fourth quarter 2016 highlights 3 Fourth quarter pre-tax income attributable to Green Brick of $13.7 million was up 80% from the same period in 2015 Full year home closing revenues of $365 million in 2016 were up 44% from 2015 Net new orders of 880 in 2016 increased 36% compared to 2015 Adjus
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: Less than 1.5% of starts in two of the fastest 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. 5
Slide 7: Dallas market continues 5-year expansion but still below prior peak
6 Dallas market continues 5-year expansion but still well below prior peak Dallas/Fort Worth Market SFD-TH – Starts and Closings Source: Metrostudy - MetroUSA 29,897 28,052 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 A
Slide 8: GRBK has over 3,500 lots in Dallas amid constrained supply
7 GRBK has over 3,500 lots in Dallas where the market continues its 7-year trend of constrained supply Dallas/Fort Worth Market Lot Inventory Source: Metrostudy - MetroUSA 47,006 18.9 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 80,000 90,000 100,000
Slide 9: Atlanta market also continues to expand but still below prior peak
8 Atlanta market also continues to expand but 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 it s Quarter Atlanta Region 16 Year History Annual Construction Starts and Closings Annual Starts Annual Cl
Slide 10: GRBK has one of the lowest debt-to-capital ratios amongst public builders
GRBK has one of the lowest debt-to-capital ratios amongst public builders GRBK net debt to capital is under 12% 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: Fourth quarter 2016 financial highlights
Fourth quarter 2016 financial highlights Q4 2016 versus Q4 2015: - Net new orders increased by 23% - Home sales revenues increased by 56% - Dollar value of units in backlog increased by 23% Full year 2016 versus full year 2015: - Net new orders increased by 36% - Home sales revenues increased by
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 Dec 31, 2016 Year Ended Dec 31, 2016 Basic adjusted EPS Net income attributable to Green Brick – basic $7,676 $23,756 Income tax provision attributable to Green Brick $6,001
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 Dec 31, 2015 12 Months Ended Mar 31, 2016 12 Months Ended Jun 30, 2016 12 Months Ended Sep 30, 2016 12 Months Ended Dec 31, 2016 Homebuilding gross margin $52,499 $53,39