Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Investor Presentation (2021)
32 slides from Green Brick Partners's investor presentation, 2021
Slide 1: Investor Presentation Spring 2021
INVESTOR PRESENTATION |SPRING 2021 G R E E N B R I C K P A R T N E R S | SPRING INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and our earnings 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 exp
Slide 3: Management Presenters
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. R
Slide 4: Company Overview
COMPANY OVERVIEW G R E E N B R I C K P A R T N E R S | SPRING INVESTOR PRESENTATION 4
Slide 5: Company at a Glance
COMPANY AT A GLANCE About Green Brick Partners, Inc. Green Brick Partners is a diversified homebuilding and land development company that acquires and develops land, and provides lots and equity or construction financing to its subsidiary Team Builders and affiliates. We are founded on the belief th
Slide 6: Company at a Glance: 2020 Homes Closed and Revenue
COMPANY AT A GLANCE 2020 Total Homes Closed:* 2,665 2020 Total Home Closings Revenue:* $1,086.6 mm *2020 homes closed and closing revenue includes equity interest in Challenger Homes. Unconsolidated units closed totaled 457 closings, and unconsolidated home revenues totaled $162.7 million. 2,208 (co
Slide 7: Company at a Glance: Consistent Growth and Financial Highlights
COMPANY AT A GLANCE Green Brick Demonstrates Consistent Growth With Some of the Highest Risk-Adjusted Returns in the Industry Total Revenue (in millions) Pre-Tax Income Attributable to Green Brick (in millions) $138.7 $976.0 $791.7 $623.6 $78.4 $69.4 $458.3 $391.0 $53.9 $298.8 $39.0 $24.4 FY2015 FY
Slide 8: Diversified Builder with Brands in Major Markets
GREEN BRICK IS A DIVERSIFIED BUILDER WITH 8 BRANDS IN 4 MAJOR MARKETS Team Builders Market Products Offered Price Range Ownership Dallas, TX Single Family $290k - $690k 100% Ft. Worth, TX Financial Services Dallas, TX Townhomes $290k - $530k 100% Ft. Worth, TX Dallas, TX Single Family $470k - $760k
Slide 9: Population Growth Should Drive Future Housing Demand
POPULATION GROWTH SHOULD DRIVE FUTURE HOUSING DEMAND Last 10-Year Resident Population for 25 Latest States Green Brick states are highlighted 10-Year Population State Growth % Growth Texas 4,000 15.9% Colorado 745 14.8% Washington 981 14.6% Florida 2,737 14.6% Arizona 759 11.9% South Carolina 493 10
Slide 10: Our Markets Are Well-Positioned to Generate Future Growth
OUR MARKETS ARE WELL-POSITIONED TO GENERATE FUTURE GROWTH DFW and Atlanta saw the largest decline in active listings of the largest MSA’s in April 2021 spurred by strong employment and affordability • Due to a 69.7% decline in active listings, DFW saw a 12.0% increase in median listing price in Apri
Slide 11: Supply Shortage Exacerbated by Shift Toward Home Ownership
SUPPLY SHORTAGE IS EXACERBATED BY SECULAR SHIFT TOWARD HOME OWNERSHIP Deficit in housing supply expected to persist as supply for for-sale homes reaches 25-year low US Home Ownership Rate vs For-Sale Housing Supply – 1994 to 2020 70.0% 3,000 While national home ownership rate at Q4 2020 was up 70 ba
Slide 12: Aging of Millennial Generation Tailwind for Housing Demand
AGING OF MILLENIAL GENERATION IS EXPECTED TO BE TAILWIND FOR HOUSING DEMAND With the 35-44 year-old demographic considered the most active homebuyer, growth of this buyer segment indicates future strong demand Population of 35-44 Year-Olds in the US Based on Ten-Year Trailing Birth Rates Population
Slide 13: Sustained Growth Through Prudent Land Development
SUSTAINED GROWTH THORUGH PRUDENT LAND DEVELOPMENT We have the strong balance sheet and operational excellence for continued growth Total Period Revenue and Period-End Lot Supply for Green Brick Partners(1) 1,000,000 Sequential growth in total lots of 20000 31% from Q4 2020 to Q1 2021 18,939 800,000
Slide 14: Growth in Owned and Controlled Lots Leads Peers
GREEN BRICK’S GROWTH IN OWNED AND CONTROLLED LOTS LEADS PEERS Total lots grew 31% from Q4 2020 to Q1 2021, our third consecutive quarter to achieve sequential growth above 20% 12-Month Percentage Change in Lots Owned and Controlled GRBK 118.1% CCS 60.6% DHI 47.8% MTH 39.8% LGIH 33.8% MHO 24.1% PHM 2
Slide 15: Land Position
LAND POSITION Land is well positioned in attractive submarkets Atlanta Metro Area Dallas-Ft. Worth Metro Area Submarket Grades Most desirable Desirable area Median desirability More affordable Most affordable GRBK Locations Land position highlights 96 29* 6,026 Average active selling communities Com
Slide 16: Investment Highlights
INVESTMENT HIGHLIGHTS G R E E N B R I C K P A R T N E R S | SPRING INVESTOR PRESENTATION 16
Slide 17: A Seasoned and Aligned Management Team
A SEASONED AND ALIGNED MANAGEMENT TEAM Our management team is comprised of building and finance veterans with decades of experience in our markets Significant expertise in capital allocation, land acquisition, entitlement, development, construction, marketing, and home sales Jim Brickman Founder, CE
Slide 18: Building Award-Winning Homes and Communities
BUILDING AWARD-WINNING HOMES AND COMMUNITIES 2020 2019 2018 Atlanta Homebuilders Association Fortune Magazine Fortune Magazine OBIE Award “100 Fastest Growing Companies” in the world “100 Fastest Growing Companies” in the world Community of the Year - Townes at Chastain Builder Magazine Builder Maga
Slide 19: Shift to Larger Trophy Communities Accelerates Growth in 2021
SHIFT TO LARGER AND HIGHER ABSORPTION TROPHY COMMUNITIES ACCLERATES GROWTH IN 2021 Green Brick has grown units under construction by 69% in 6 months Consolidated Units Under Construction Trophy Units Under Construction Trophy started 453 homes in Q1 2021, 900 bringing ending units 2,500 Units under
Slide 20: Strong Top-Line Growth
GREEN BRICK CONTINUES TO DEMONSTRATE STRONG TOP-LINE GROWTH Average sales price declined 0.8% for the quarter and 4.1% on a last twelve months basis due to successful expansion of entry-level segment New Homes Delivered for the Home Closings Revenue for the Periods Ended March 31 Periods Ended March
Slide 21: Strong Demand Expected to Accelerate Revenues
STRONG DEMAND IS EXPECTED TO ACCELERATE REVENUES BEGINNING NEXT QUARTER Record net new orders in Q1 2021and ending backlog as of 3.31.2021 were achieved along with significant price increases Net New Home Orders for the Ending Backlog as of Periods Ended March 31 March 31 1,250 4,000 2,500 $1,125 1,
Slide 22: Financial Results Show Strong Risk-Adjusted Returns
GREEN BRICK’S FINANCIAL RESULTS CONTINUE TO DEMONSTRATE STRONG RISK-ADJUSTED RETURNS Robust year over year growth in Q1 2021 is expected to significantly expand over the next three quarters. Q1 2021 Q1 2020 Increase Homebuilding Gross Margin 25.4% 23.1% 230 bps Adjusted Homebuilding Gross Margin(1)
Slide 23: Raising Prices Faster Than Costs
THE COMPANY CONTINUES TO RAISE PRICES FASTER THAN COSTS Green Brick maintains some of the best margins in the industry, well above mot small and mid-cap peers GRBK Gross Margin Percentage was 25.4% for the three months ended March 31, 2021 versus an average 21.9% for covered public builders (Peer da
Slide 24: Homebuyer Customer Diversification
HOMEBUYER CUSTOMER DIVERSIFICATION IN TEXAS, GEORGIA, & FLORIDA MARKETS We also manage risk by diversifying our homebuyer customer mix Homebuyer Customer Mix Last Twelve Months GRBK Home Closings Revenue by Product Type LTM Q1 2019 Home Closings Revenue LTM Q1 2021 Home Closings Revenue Entry-level
Slide 25: Strong Risk-Adjusted Growth Relative to Peers
GREEN BRICK PROVIDES STRONG RISK-ADJUSTED GROWTH RELATIVE TO PEERS Based on our key performance indicators, we believe Green Brick has one of the best growth opportunity profiles among peers small and mid-cap peers Last Twelve Months Ending 3.31.2021 or Nearest Date Growth in Pre-Tax Income Growth i
Slide 26: Balance Sheet Strength
BALANCE SHEET STRENGTH Green Brick continues to maintain its position as one of the lowest leveraged public builders GRBK Debt to Capital was 26.4% as of March 31, 2021 versus an average 38.3% for covered public builders (Peer data based on most recent filings as of 5.4.2021). Debt to Total Capital
Slide 27: Appendix
APPENDIX G R E E N B R I C K P A R T N E R S | SPRING INVESTOR PRESENTATION 27
Slide 28: Non-GAAP Reconciliation
NON-GAAP RECONICILATION Adjusted homebuilding gross margin reconciliation Three Months Ended Three Months Ended (Unaudited, in Thousands) March 31, 2021 March 31, 2020 Residential Units Revenue $217,236 $191,187 Less: Mechanic’s Lien Contracts Revenue (1,102) (1,939) Home Closings Revenue $216,134 $
Slide 29: Non-GAAP Reconciliation: EBITDA and Interest Coverage
NON-GAAP RECONICLIATION Adjusted GRBK Pre-tax Income, EBITDA, and Interest Coverage Ratio Three Months Three Months Last Twelve Months (Unaudited, in Thousands) Ended Ended Ended March 31, 2021 March 31, 2020 March 31, 2021 Net Income Attributable to Green Brick $ 25,969 $ 15,917 $123,745 Add Back:
Slide 30: Non-GAAP Reconciliation: Return on Average Invested Capital
NON-GAAP RECONCILIATION GRBK Pre-Tax Income Return on Average Invested Capital (Unaudited, in Thousands) Three Months Three Months Last Twelve Months Ended Ended Ended March 31, 2021 March 31, 2020 March 31, 2021 Net Income Attributable to Green Brick $ 25,969 $ 15,917 $123,745 Income Tax Expense At
Slide 31: Financial Highlights (Unaudited)
FINANCIAL HIGHLIGHTS (UNAUDITED) Q1 Q1 Qtr over Qtr (Dollars in Millions, Except EPS) Notes 2021 2020 Change New Homes Delivered 516 448 15.2% Net New Home Orders 1,082 632 71.2% Record net new orders. We beat Q4 2020 orders of 848 by 28%. Average Active Selling Communities 96 94 2.1% Absorption Rat
Slide 32: | SPRING 2021
INVESTOR PRESENTATION |SPRING 2021 2805 Dallas Parkway, Suite 400 Plano, Texas 75093 | www.greenbrickpartners.com G R E E N B R I C K P A R T N E R S | SPRING INVESTOR PRESENTATION