Green Brick Partners, Inc. · NYSE:GRBK
Green Brick Partners — Q1 2018 Earnings Presentation
19 slides from Green Brick Partners's earnings presentation, May 7, 2018
Slide 1: Green Brick Partners Q1 2018 Investor Call Presentation
Exhibit 99.2 GREEN BRICK PARTNERS Q1 2018 INVESTOR CALL PRESENTATION MAY 7, 2018 1
Slide 2: Forward Looking Statements
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 a
Slide 3: Management Presenters
MANAGEMENT PRESENTERS Jim Brickman Rick Costello Chief Executive Officer Chief Financial Officer • Over 40 years in real estate development and • Over 26 years of financial and operating experience in homebuilding. all aspects of real estate management. • Co-founded JBGL with Greenlight Capital in 2
Slide 4: Market Update: National Economic Overview
MARKET UPDATE National Economic Overview Top Job Growth Markets Ranked by Change in Employment – February 2018 Source: Metrostudy - MetroUSA 4
Slide 5: Market Update: National Housing Market
MARKET UPDATE We are less than 2.0% of the starts in two of the largest housing markets, giving us significant opportunity for growth National Housing Market Annual Starts by Market – February 2018 GRBK has also entered the Colorado Springs market through our investment in Challenger Homes. Source:
Slide 6: Market Update: Dallas/Fort Worth Market
MARKET UPDATE Dallas market continues 6-year expansion but is still well below the 2006 peak of more than 50,000 starts Dallas/Fort Worth Market SFD-TH – Starts and closings 40,000 Annual Starts Annual Closings 35,000 33,518 30,000 31,923 Annual Starts & Closings 25,000 20,000 15,000 10,000 5,000 So
Slide 7: Market Update: Dallas Lot Inventory
MARKET UPDATE GRBK has nearly 4,600 lots in Dallas where the market continues its 7-year trend of constrained supply Dallas/Fort Worth Market Lot Inventory 100,000 Vacant Developed Lots 80.0 Annual Starts 90,000 VDL Months of Supply 70.0 80,000 60.0 70,000 Months of Supply 50.0 60,000 Lots/Starts 50
Slide 8: Market Update: Atlanta Market
MARKET UPDATE The Atlanta market also continues to expand but is still well below prior peak Atlanta Region 16 Year History Annual Construction Starts and Closings 2Q06 Peaked 2Q06 Peaked 60,000 55,000 50,000 ~70% of activity is in North Atlanta 45,000 where GRBK builds. 40,000 35,000 24,451 +9.9% U
Slide 9: Green Brick at a Glance
GREEN BRICK AT A GLANCE • We are a diversified homebuilding and land Controlled Builders development company. Texas Products Offered • We build and deliver homes through our controlled CB JENI Homes Townhomes, single family builders in which we own a 50% to 80% controlling Normandy Homes Single fami
Slide 10: Homes Closed and Revenues by Builder for Full Year 2017
MARKET UPDATE Homes Closed and Revenues by Builder for Full Year 2017(1)(2)(3) 2017 Total Homes Closed: 1,643 2017 Total Builder Revenues: $652.6M (2) (1)All amounts are approximate. (2)Green Brick Partners owns a 49.9% interest in Challenger Homes as of August 2017, with a pathway to controlled own
Slide 11: GRBK GHO Homes
GRBK GHO HOMES • On April 26th, 2018, GRBK closed on its acquisition of an 80% ownership of GHO Homes. • With this investment, Green Brick has expanded into Florida’s Treasure Coast and has expanded its network of Team BuildersTM to seven. • Green Brick Partners has purchased all of the assets of GH
Slide 12: Corporate Structure
CORPORATE STRUCTURE • We are a diversified homebuilding and land development company with strong sponsor ownership and controlling interests in our aligned homebuilders. Control Control Control Control Control 49.99% with pathway to control Control 12
Slide 13: GRBK: A True Growth Story
GRBK: A TRUE GROWTH STORY We have the strong balance sheet and operational excellence for continued growth 13
Slide 14: Balance Sheet Strength
BALANCE SHEET STRENGTH GRBK has one of the lowest debt-to-capital ratios amongst public builders. We have the capital to continue growing profitably. • GRBK net debt to capital is about 20.5% versus an average 40% for covered public builders • GRBK’s eventual target is approximately 30 to 35% Net De
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS Unaudited Q1 2018 Q1 2017 17 vs 18 Q1 Increase Home Closings - Units 267 226 18% Net New Orders 434 287 51% Homebuilding Revenues ($’s in thousands) $120,366 $93,397 29% 3rd Party Lot Closings ($’s in thousands) $7,899 $5,940 33% Total Revenues ($’s in thousands) $128,265 $99,33
Slide 16: Operational Highlights
OPERATIONAL HIGHLIGHTS LTM Adjusted Gross Margins LTM GRBK Pre-Tax Income to Homebuilding Revenues 16
Slide 17: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION GRBK Pre-tax Income as a Percentage of Homebuilding Revenues 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended Ended (Unaudited, in thousands) Mar 31, 2017 Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 LTM Net income attributable to Green Brick $
Slide 18: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Adjusted Homebuilding Gross Margin Reconciliation 12 Months 12 Months 12 Months 12 Months 12 Months Ended Ended Ended Ended Ended (Unaudited, in thousands) Mar 31, 2017 June 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Sale of Residential Units $391,933 $398,546 $419,156 $
Slide 19: Contact details
2805 North Dallas Parkway, Suite 400 Plano, TX 75093 www.greenbrickpartners.com 19