The Providence Group Exhibit 99.2 Pratt Stacks | Atlanta, GA FOURTH QUARTER INVESTOR CALL PRESENTATION 2019 BUILDING COMMUNITIES | DEVELOPING DREAMS
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 expressions concerning matters that are not historical facts and typically include the words “anticipate,” “believe,” “consider,” “estimate,” “expect,” “forecast,” “intend,” “objective,” “plan,” “predict,” “projection,” “seek,” “strategy,” “target,” “will” or other words of similar meaning. Forward-looking statements in this press release and the earnings call include statements regarding the Company’s (i) strategy for growth, the drivers of that growth, and the impact on the Company’s results, and (ii) expectations regarding community count growth and the timing of that growth. These forward-looking statements involve estimates and assumptions which may be affected by risks and uncertainties in the Company’s business, as well as other external factors, which could cause future results to materially differ from those expressed or implied in any forward-looking statement. These risks include, but are not limited to: (1) adverse impacts from general economic conditions, seasonality, cyclicality and competition in the homebuilding industry; (2) a failure to recruit, retain or develop highly skilled and competent employees; (3) unsuccessful integration or management of acquisitions; (4) shortages of labor or raw materials; (5) an inability to acquire land for reasonable prices; (6) an inability to develop or sell communities; (7) government regulation risks; (8) a lack of availability or volatility of mortgage financing; (9) a severe weather event or natural disasters; (10) difficulty in obtaining sufficient capital; (11) poor relations with community residents; and (12) an increase in our debt levels or related service obligations. For a more detailed discussion of these and other risks and uncertainties applicable to the Company please see the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. BUILDING COMMUNITIES | DEVELOPING DREAMS 2
MANAGEMENT PRESENTERS Jim Brickman Rick Costello Jed Dolson Chief Executive Officer Chief Financial Officer President of Texas Region Over 40 years in real estate development Over 25 years of financial and operating Over 15 years of land development and • • • and homebuilding. experience in all aspects of real estate property acquisition. management. Co-founded JBGL with Greenlight Capital in Head of GRBK land acquisitions since 2010. • • 2008. JBGL was merged into Green Brick in Previously served as CFO and COO of GL • 2014. Homes, as AVP of finance of Paragon Group Masters Degree in Engineering, Stanford • and as an auditor for KPMG. University, and Registered Engineer, State of Previously served as Chairman and CEO of Texas. • Princeton Homes and Princeton Realty Corp. M.B.A from Northwestern University’s Kellogg • School. BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS 3
GREEN BRICK IS A DIVERSIFIED BUILDER WITH 8 BRANDS IN 4 MAJOR MARKETS Team Builders Market Products Offered Price Range Structure Atlanta, GA Townhomes $320k - $690k Consolidated (1) Single Family $340k - $1.01M Condominiums $380k - $580k Financial Services Dallas, TX Townhomes $230k - $480k Consolidated (1) / Single Family $330k - $760k Dallas, TX Townhomes $340k - $550k Consolidated (2) Single Family $390k - $850k 49% ownership Dallas, TX Luxury Homes $500k - $1.06M Consolidated (3) 100% ownership Vero Beach, FL Single Family $250k - $750k Consolidated (4) Treasure Coast, FL Patio Homes $200k - $400k Colorado Springs, CO Townhomes $240k - $310k Equity Interest (5) Patio Homes $315k - $385k Single Family $225k - $600k Dallas, TX Single Family $240k - $560k Consolidated (3) Houston, TX (1) GRBK receives lot sale profits and lending profits before non-controlling interests participate in profits (2) 90% ownership (3) 100% ownership (4) 80% ownership (5) 49.9% ownership with contractual pathway to control BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS 4
MARKET UPDATE – JOB GROWTH National Economic Overview Top Job Growth Markets Ranked by Change in Employment, TTM December 2019 Rank MSA Employment Growth Growth % 1 Dallas-Fort Worth-Arlington, TX 3,886,800 127,600 3.4% 2 New York-Newark-Jersey City, NY-NJ-PA 10,083,000 97,300 1.0% 3 Los Angeles-Long Beach-Anaheim, CA 6,344,200 93,200 1.5% 4 Houston-The Woodlands-Sugar Land, TX 3,225,700 88,000 2.8% 5 Phoenix-Mesa-Scottsdale, AZ 2,238,300 68,800 3.2% 6 Atlanta-Sandy Springs-Roswell, GA 2,902,000 66,700 2.4% 7 Seattle-Tacoma-Bellevue, WA 2,142,100 65,400 3.1% 8 Washington-Arlington-Alexandria, DC-VA-MD-WV 3,377,200 52,600 1.6% 9 San Francisco-Oakland-Hayward, CA 2,541,600 51,300 2.1% 10 Miami-Fort Lauderdale-West Palm Beach, FL 2,785,600 44,900 1.6% 11 Orlando-Kissimmee-Sanford, FL 1,372,800 43,300 3.3% 12 Austin-Round Rock, TX 1,119,800 37,800 3.5% 13 Chicago-Naperville-Elgin, IL-IN-WI 4,839,200 36,000 0.7% 14 Denver-Aurora-Lakewood, CO 1,551,100 35,100 2.3% 15 San Diego-Carlsbad, CA 1,540,700 34,800 2.3% Source: Metrostudy, December 2019 (1) GRBK has announced expansion of Trophy Signature Homes into Houston, TX BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS 5
MARKET UPDATE - STARTS We are 2% to 5% of the starts in three of the largest housing markets in the U.S., giving us significant opportunity for growth National Housing Market Annual Starts by Market – TTM December 2019 40,000 35,000 34,718 30,000 30,547 26,632 25,000 25,877 24,416 20,000 19,287 18,905 15,000 16,794 14,580 13,748 10,000 5,000 Denver/ Northern Southern Colorado Central Dallas /Ft. Phoenix/ San Antonio California California Austin Springs (1) Florida Houston (2) Worth Atlanta Tucson 0 Source: Metrostudy, December 2019 (1) GRBK has also entered the Colorado Springs market through our unconsolidated investment in Challenger Homes. (2) GRBK has announced expansion of Trophy Signature Homes into Houston, TX BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS 6
LAND POSITION Land is well positioned in attractive submarkets Atlanta Metro Area Dallas Metro Area GRBK Locations Submarket Grades Most desirable Desirable area Most affordable Median desirability More affordable Land position highlights 37* 95 Communities Active selling communities under development as of 12.31.19 *Includes 23 communities under active development and 14 communities in the engineering phase (i.e. pre-development) Source: John Burns Real Estate Consulting (Regional Analysis and Forecast Published October 2019) Note: GRBK Locations are approximately to scale 7 BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS
SUSTAINED GROWTH THROUGH PRUDENT LAND DEVELOPMENT We have the strong balance sheet and operational excellence for continued growth LTM Total Revenues and End of Period Lot Supply for Green Brick Partners* December 2019 9,500 800,000 8,500 700,000 7,500 6,419 600,000 6,500 6,235 5,500 500,000 Dollars ($) Lots 4,500 400,000 4,495 3,500 4,235 300,000 2,500 3,650 3,316 200,000 1,500 2,557 1,843 1,724 100,000 1,084 500 954 840 - (500) 12.31.11 12.31.12 12.31.13 12.31.14 12.31.15 12.31.16 12.31.17 12.31.18 12.31.19 Lots Controlled Lots Owned Total Revenue s * Revenue information prior to October 27, 2014 are from JBGL Builder Finance, LLC and its consolidated subsidiaries and affiliated companies, whose assets were acquired by GRBK on October 27, 2014. BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS 8
GROWTH DRIVERS Green Brick continues to demonstrate industry-leading growth with industry-low financial leverage Total Revenues ($ in Millions) Backlog ($ in Millions) Lots Owned and Controlled $1,000 $400 10000 $350 $800 $ 346.8 8000 8,976 $300 $791.7 $250 $600 6000 6,219 $200 $400 4000 $458.2 $150 $151.5 $100 $200 2000 + 73 % + 129% + 44% $50 $0 $0 0 LTM 12.31.2017 LTM 12.31.2019 12.31.2017 12.31.2019 12.31.2017 12.31.2019 Average Selling Communities Units Started LTM Units Under Construction 90 2000 1400 1200 86 1,297 75 1,889 1500 1000 60 800 45 1000 54 1,162 600 736 30 400 500 + 76% 15 + 59 % + 63% 200 0 0 0 YTD 12.31.2017 YTD 12.31.2019 12.31.2017 12.31.2019 LTM 12.31.2017 LTM 12.31.2019 BUILDING COMMUNITIES | DEVELOPING DREAMS BUILDING COMMUNITIES | DEVELOPING DREAMS 9
Recommend
More recommend
