Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CEO Designate and CFO PETE BECKMANN, CFO Designate NOVEMBER 5, 2024 Footnote
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations
Slide 3: Clear Strategic Pillars Driving Long-Term Profitable Growth
Clear Strategic Pillars Driving Long-Ter m Profitable Growth Organic Growth with a Drive Continue to Disciplined Focus on Operational Build Our High- Capital Value-Added Excellence & Performing Allocation Products and Invest in Digital Culture Services and Innovation Footnote © C O P Y R I G H T B U
Slide 4: Resilient Q3 2024 Performance
Resilient Q3 2024 Perfor mance $4.2B $1.4B $627M $3.07 Net Sales Gross Profit Adjusted EBITDA1 Adjusted 6.7% Decrease2 12.3% Decrease2 23.0% Decrease2 Diluted EPS1 27.6% Decrease2 Gross Margin Adjusted EBITDA1 of 32.8% Margin of 14.8% Q3 2024 Total Capital Deployed: ~$0.4B 1) Adjusted EBITDA, Adjust
Slide 5: Executing Against Our Strategy
Executing Against Our Strategy ▪ Q3 Single-Family core organic net sales decreased 4.6% amid declining value per start ▪ Multi-Family decreased 30.9% against strong prior year comps, while Repair & Remodel/Other increased 0.8% ▪ Value-added product mix was 49% for Q3 2024 driven by continued Multi-F
Slide 6: Improving Value-Added Mix Through Proven M&A Process
Improving Value-Added Mix Through Proven M&A Process Net Sales Acquisition Date Benefits Growth in Value- 400 bps Added Product Mix Q3 2024 ▪ Leading distributor and installer of windows, doors, and millwork in the Reno area Value-Added Value-Added ▪ Manufacturer and distributor of roof and floor tr
Slide 7: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Q3 2024 Highlights ~$1.7B Successfully Deployed ~$0.4B $270M $95M allocated to ROI- $260M generating growth investments including Digital and automation $128M deployed on 6 $1,170M acquisitions to expand our footprint into high-growth geographies and enhance
Slide 8: Creating a Better Way to Build as Demand for Modern, Digital Solutions Continues to Grow
Creating a Better Way to Build as Demand for Moder n, Digital Solutions Continues to Grow Addressing industry …with industry-leading …to become the premier partner pain points… digital solutions… for builders and suppliers ▪ Lengthy design cycle remains Streamlined design in a Increase Wallet Shar
Slide 9: Q3 2024 Financial Update
Q3 2024 Financial Update Core Organic End Market Sales Highlights Q3 2024 Net Sales ($M) Bridge ▪ Single-Family: -4.6% led by declines in the size, complexity, and value of an average home, as well as a greater mix of entry level homes ($171) ($131) -7.2% Core Organic ▪ Multi-Family: -30.9% against
Slide 10: Q3 2024 Financial Update
Q3 2024 Financial Update Q3 2024 Net Sales Mix by Product Category Q3 2024 Core Organic Product Category Sales1 Highlights Q3 2024 Value-Added ▪ Value-Added Core Organic Sales1 decreased 10% against the Product Mix: ~49% prior year due to a decline in Multi-Family truss and lapping of 26% higher com
Slide 11: Strong Balance Sheet and Liquidity Provide Financial Flexibility
Strong Balance Sheet and Liquidity Provide Financial Flexibility Consistent Capital Allocation Priorities Low Net Leverage1 Profile 1 Maintain a Strong Balance Sheet ▪ Target Base Business leverage ratio of 1.0x to 2.0x 2 Organic Growth 2.5x 1.5x ▪ Drive productivity and growth with investments Base
Slide 12: 2024 Outlook
2024 Outlook 2024 Full Year Outlook Metrics Current Guidance Prior Guidance 2023 Actual Total Net Sales1 $16.25 to $16.55 billion $16.40 to $17.20 billion $17.1 billion Gross Profit Margin1 32.0% to 33.0% 31.5% to 32.5% 35.2% Total Adjusted EBITDA1,4 $2.25 to $2.35 billion $2.20 to $2.40 billion $2.
Slide 13: 2024 Full Year Assumptions
2024 Full Year Assumptions 2024 Full Year Assumptions Metrics Current Assumptions Prior Assumptions Single-Family Starts Growth (BLDR geographies) Up Low-Single Digits Up Low-Single Digits Multi-Family Starts Growth (BLDR geographies) Down 25% to 30% Down 25% to 30% Repair & Remodel Growth (BLDR geo
Slide 14: Positioned to Generate Resilient Financial Performance in a Range of 2025 Scenarios
Positioned to Generate Resilient Financial Perfor mance in a Range of 2025 Scenarios Estimated Performance Scenario Analysis Based on SF Housing Starts and Commodity Cost Assumptions 2024E3 Full Year 2025 Scenarios Assumptions ▪ Price fluctuations can result in SF Housing Up Low materially different
Slide 15: Overview of Base Business Framework
Over view of Base Business Framework ~66% of BFS’s Base Business1 Underlying Base Business Assumptions is Non-Commodity Windows, Doors & Millwork Lumber & Lumber Sheet Goods ▪ Assumes $400/mbf lumber and lumber sheet goods Manufactured Products Specialized Products & Other pricing (in line with 25-y
Slide 16: Base Business Performance Aligned with Long Term Plan
Base Business 1 Perfor mance Aligned with Long Ter m Plan Sales ($B) Adjusted EBITDA2 ($B) $22.7 $4.4 $19.9 $5.0 $17.1 $3.1 $4.2 $16.4 ~7% $2.1 $2.9 $12.8 $0.6 $2.3 ~20% $10.9 $1.3 $0.6 $0.0 $0.3 $15.7 $17.7 $16.5 $16.4 $1.1 $12.5 $0.8 $2.3 $2.3 $2.3 $11.5 $1.8 $0.9 $1.1 ($0.6) ($0.1) 2019PF 2020PF
Slide 17: Strategic Execution Has Driven Sustainable Gross Margin Improvement
Strategic Execution Has Driven Sustainable Gross Margin Improvement Strategic Initiatives Lead to Higher Gross Margins ~45-55 bps ✓ Investment in Value- Added Products: VAP ~200-220 bps made up ~49% of net sales in Q3 2024 vs. ~42% in 2019 ~180-200 bps ✓ Operational Excellence: ~$338M in COGS 31.0%
Slide 18: Strong Operating Model Creates Value for Our Customers and Shareholders
Strong Operating Model Creates Value for Our Customers and Shareholders 1 Creating opportunity by 3 Leveraging robust FCF addressing builder problems generation from resilient and delivering value-added business model and broad products and solutions across product portfolio to fuel cycles; strong t
Slide 19: Appendix
Appendix Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D .
Slide 20: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 20 20
Slide 21: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 21 21
Slide 22: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 22 22
Slide 23: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 23 23
Slide 24: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 24 24
Slide 25: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 25 25
Slide 26: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 26 26
Slide 27: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 27 27
Slide 28: Summary Financial Information & Reconciliations
Summar y Financial Infor mation & Reconciliations Footnote © C O P Y R I G H T B U I L D E R S F I R S T S O U R C E . A L L R I G H T S R E S E R V E D . 28 28