Builders Firstsource, Inc. · NYSE:BLDR
Builders Firstsource — Investor Presentation (November 2005)
26 slides from Builders Firstsource's investor presentation, November 2005
Slide 1: Builders FirstSource, Inc. Investor Presentation
Builders FirstSource, Inc. November 2005 Investor Presentation
Slide 2: Forward-Looking Statements; Use of Non-GAAP Financial Measures
Forward-Looking Statements; Use of Non-GAAP Financial Measures Cautionary Notice Statements in this presentation which are not purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations,
Slide 3: Builders FirstSource Overview
Builders FirstSource Overview
Slide 4: Company Overview: Who are we and what do we do?
Company Overview Who are we and What do we do? ♦ 5th largest building products provider in $145 billion industry with operations in 20 of the nation’s top 50 MSAs (as ranked by single family housing permits) ♦ Fully integrated, one-stop supplier, combining manufacturing, supply and installation of a
Slide 5: Company Overview: Who are our customers?
Company Overview Who are we and What do we do? ♦ Homebuilders Who are our customers? ♦ Focus on the nation’s largest homebuilders, the “Production Homebuilders” ♦ Top 10 customers represent approximately 26% of total sales, with no one customer exceeding 5% in fiscal year 2004 4
Slide 6: Company Overview: Products and Services Offered
Company Overview Who are we and Lumber and Prefabricated Windows What do we do? Lumber Sheet Goods Components and Doors $655.9mm of Sales $376.8mm of Sales $330.7mm of Sales Who are our customers? (37.0% of Total) (21.3% of Total) (18.7% of Total) What products and services do we offer? Other Buildi
Slide 7: Company Overview: How have we improved?
Company Overview Who are we and What do we do? Pre-Integration Today Heavy Dependency on Balanced Mix; Distribution, Product Offering Who are our customers? Lumber and Lumber Sheet Goods Manufacturing, and Installed Regions / Divisions 8 3 What products and services do we offer? IT Systems 22 2 21.3
Slide 8: Company Overview: How will we grow?
Company Overview Who are we and What do we do? Organic Growth New Operations Acquisitions Who are our customers? What products and services do we offer? How have we improved? ♦ Improved sales and ♦ Build new component ♦ Opportunistic approach market management to plants and distribution increase mar
Slide 9: Operations Review
Operations Review ~\ Builders 4FirstSource
Slide 10: Operations Review: What differentiates us?
Operations Review What differentiates us? ♦ Leading positions in attractive local markets ♦ Favorable portfolio mix - 48% of our sales are value- added sales involving manufacturing, assembly or installation ♦ Large and fast-growing manufacturing platform ♦ Industry-leading scale and fully integrate
Slide 11: Leading Market Position
Leading Market Position What differentiates us? BLDR boasts the #1 or #2 position in nearly 75% of our markets ♦ Markets are very local-centric, making relationships and expertise Leading Market Positions with local building codes critical to success ♦ Significant barriers to entry insulate market l
Slide 12: Favorable Portfolio Mix
Favorable Portfolio Mix What differentiates us? Majority of BLDR sales are from value-added products ♦ Since 2001 BLDR has steadily increased our sales mix of higher-margin Leading Market Positions manufactured products (prefabricated components, millwork and windows/doors) Value-Added Products ♦ BL
Slide 13: Large and Fast-Growing Manufacturing Platform
Large and Fast-Growing Manufacturing Platform What differentiates us? BLDR is benefiting from the homebuilders’ shift to prefabricated components Leading Market Positions ♦ Roof trusses and panels account for the majority of prefabricated components sales Value-Added Products ♦ Continue to focus on
Slide 14: Industry-Leading Scale
Industry-Leading Scale What differentiates us? BLDR has nearly twice the sales/facility of our nearest competitor, which drives higher operating leverage and profitability Leading Market Positions 2004 Pro Sales per Distribution Center ($mm) 1 35 Value-Added Products $32.6mm 30 Fast-Growing Manufact
Slide 15: Market Overview
Market Overview ~\ Builders 4FirstSource
Slide 16: Strong Industry Fundamentals—Housing Market
Strong Industry Fundamentals—Housing Market Total Housing Starts: 1964–2014E US Homeownership Rates (%) NAHB Estimates 2004 2005E 2006E Single-Family Starts 1,005 1,663 1,563 Multi-Family Starts 347 351 340 Housing Starts in Units (000s) 2,500 Total Starts 1,952 2,014 1,903 1,900 70 2,000 68 1,500 R
Slide 17: Strong Industry Fundamentals—Production Homebuilders
Strong Industry Fundamentals—Production Homebuilders The Production Homebuilders are by far the fastest-growing segment of the homebuilder market BLDR Sales to the Top 10 Homebuilders ♦ BLDR sales to the Top 10 homebuilders have 500 .1% : 20 grown at a 20% CAGR since 2001 GR 400 CA ♦ Top 10 builders
Slide 18: Financial Overview
Financial Overview ~\ Builders 4FirstSource
Slide 19: Historical Financial Results
Historical Financial Results BLDR has demonstrated an impressive record of organic sales growth and profitability over the last three years Fiscal Year Ended December 31, 9 mos. ended (US$mm) 2002 2003 2004 9/30/05 9/30/04 Net Sales 1,500.0 1,675.1 2,058.0 1,771.9 1,552.5 Growth (%) (0.9%) 11.7% 22.
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Well-positioned for growth with appropriate capital structure, strong cash flow and low capital expenditure requirements Year Ended December 31, March 31, June 30, September 30, (US$mm) 2004 2005 2005 2005 Cash 50.6 12.1 4.0 34.0 Total Assets 697.0 709.5 732.1 766.1 Debt: Te
Slide 21: Financial Goals
Financial Goals BLDR is committed to a continuous improvement philosophy Top Line Driven by market share gains, new facilities and Growth acquisitions Continued margin expansion to top quartile due to Profitability portfolio migration toward higher-margin manufactured products and increased operatin
Slide 22: Builders FirstSource—Investment Highlights
Builders FirstSource—Investment Highlights Industry-leading scale drives higher operating leverage and profitability Fully integrated supplier to production homebuilders – the fastest-growing segment of the builder market Strategic growth initiatives – market share gains, increased manufacturing cap
Slide 23: Appendix
Appendix ~\ Builders 4FirstSource
Slide 24: Appendix A – Non-GAAP Reconciliations
Appendix A – Non-GAAP Reconciliations Nine Months Ended September 30, (US$mm) 2005 2004 Reported net income $ 29.1 $ 36.6 Adjustments: Stock compensation expense 36.4 0.4 Write-off of unamortized debt issuance costs 10.3 2.2 Refinancing costs 2.4 - Termination penalty for prepayment of term loan 1.7
Slide 25: Appendix A – Non-GAAP Reconciliations, Continued
Appendix A – Non-GAAP Reconciliations, Continued Nine Months Ended September 30, (US$mm) 2005 2004 Reported net income $ 29.1 $ 36.6 Adjustments: Depreciation and amortization expense 14.3 14.5 Interest expense 39.6 18.7 Income tax expense 18.8 22.8 EBITDA 101.8 92.6 Add: stock compensation expense
Slide 26: Bu de S
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