Attached files
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| EX-99.1 - EXHIBIT 99.1 GREEN BRICK PARTNERS, INC. EARNINGS RELEASE 6.30.2016 - Green Brick Partners, Inc. | ex991grbkearningsrelease63.htm |
| 8-K - FORM 8-K 6.30.2016 - Green Brick Partners, Inc. | a6302016grbkform8-k.htm |
Green Brick Partners
Second Quarter 2016 Investor Call Presentation
August 8, 2016
Exhibit 99.2
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 as “may,” “will,” “should,” “could,”
“would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “outlook,” “strategy,” “positioned,” “intends,” “plans,” “believes,” “projects,”
“estimates” and similar expressions, as well as statements in the future tense. Although the Company believes that the assumptions underlying these
statements are reasonable, individuals considering such statements for any purpose are cautioned that such forward-looking statements are inherently
uncertain and necessarily involve risks that may affect the Company’s business prospects and performance, causing actual results to differ from those discussed
during the presentation, and any such difference may be material. Factors that could cause actual results to differ from those anticipated are discussed in the
Company’s annual and quarterly reports filed with the SEC.
Any forward-looking statements made are subject to risks and uncertainties, many of which are beyond management’s control. These risks include the risks
described in the Company’s filings with the SEC. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the
Company’s actual results and plans could differ materially from those expressed in any forward-looking statements.
Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements are
made only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new
information or future events.
The Company presents Basic Adjusted EPS and Diluted Adjusted EPS and Basic and Diluted Adjusted weighted-average number of shares outstanding, Income
before taxes attributable to GRBK and Adjusted Homebuilding Gross Margin. The Company believes these and similar measures are useful to management and
investors in evaluating its operating performance and financing structure. The Company also believes these measures facilitate the comparison of their
operating performance and financing structure with other companies in the industry. Because these measures are not calculated in accordance with Generally
Accepted Accounting Principles (“GAAP”), they may not be comparable to other similarly titled measures of other companies and should not be considered in
isolation or as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
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
− Chief Financial Officer
− Over 25 years of financial and operating experience in all aspects of real estate
management
− Previously served as CFO and COO of GL Homes, as AVP of finance of Paragon Group and
as an auditor for KPMG
Management presenters
2
Second quarter 2016 highlights
3
Second quarter pre-tax income attributable to Green Brick
of $11 million was up 85% from the same period in 2015
Best home sale revenues in our company’s history, with
closings valued at $93.7 million in the quarter
Year-to-date home closing revenues were up 46% more
than the first half of 2015
Total revenue in the quarter was $98.9 million, up 37%
from the same period of 2015
Our units in backlog increased to a record 307 homes
Backlog at June 30, 2016 is now at approximately $140.3
million, up 59% from year-end
Net new orders increased 38% during the first 2 quarters
of 2016 compared to the first half of 2015
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 controlled builders
Currently focused on the high growth metropolitan
areas of Dallas and Atlanta
Attractive land position of ~4,500 well-located
residential lots as of June 30, 2016
− Over 80% of our residential lots are owned
− Virtually all of our owned lots are owned at
corporate level vs. at the controlled builder level
Products offered
Townhomes, single family
Single family
Luxury homes
Townhomes,
contractor on luxury homes
Townhomes, single family,
luxury homes
4
Dallas
CB JENI
Normandy Homes
Southgate Homes
Centre Living Homes
Atlanta
The Providence Group
Controlled builders
5
Housing starts are highly correlated to jobs and we build in
two of the highest job growth markets.
We are less than 1.5% of the starts in two of the fastest growing
housing markets, giving us significant opportunity for growth.
6
7
Dallas market continues 5-year expansion but
still well below prior peak
8
GRBK has over 2,800 lots in Dallas where the market
continues its 7-year trend of constrained supply
9
Atlanta market also continues to expand
but still well below prior peak
GRBK has one of the lowest debt-to-capital
ratios amongst public builders
GRBK net debt to capital is under 11% versus an average 39% for covered public builders
GRBK’s eventual target is approximately 35%.
10
Citi Research data is as of June 30, 2016; “Net Debt” equals Total Debt minus Cash
2nd quarter 2016 financial highlights
Q2 2016 versus Q2 2015:
- Net new orders increased by 41%
- Home sales revenues increased by 55%
- Average sales price of homes delivered increased by 19%
- Dollar value of units in backlog increased by 37%
- Average sales price of units in backlog increased by 11% to over $457,000
Year-to-date 2016 versus year-to-date 2015:
- Net new orders increased by 38%
- Home sales revenues increased by 46%
11
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%
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 builders
Our operating model and low leverage results in
superior risk adjusted returns.
13
Non-GAAP Reconciliation
14
(Unaudited, in thousands, except per share amounts)
Three Months Ended
June 30, 2016
Six Months Ended
June 30, 2016
Basic Adjusted EPS
Net income attributable to Green Brick — basic $6,743 $9,837
Income tax provision attributable to Green Brick $4,213 $5,636
Pre-tax income $10,956 $15,437
Adjusted weighted-average number of shares outstanding —
basic
48,894 48,852
Basic Adjusted EPS $0.22 $0.32
Diluted Adjusted EPS
Net income attributable to Green Brick — diluted $6,743 $9,837
Income tax provision attributable to Green Brick $4,213 $5,636
Pre-tax income $10,956 $15,473
Adjusted weighted-average number of shares outstanding —
diluted
48,894 48,852
Diluted Adjusted EPS $0.22 $0.32
Homebuilding Gross Margin $21,733 $36,432
Add back: Capitalized interest charged to cost of sales 648 1,625
Adjusted Homebuilding Gross Margin $22,381 $38,057
Adjusted EPS Reconciliation and Adjusted Homebuilding
Gross Margin