Slide 1: First Quarter 2019 Earnings Presentation
First Quarter 2019 Earnings Presentation May 3, 2019
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other s
Slide 3: Differentiated market leader positioned for ongoing growth and expanding profitability
Differentiated market leader positioned for ongoing growth and expanding profitability Exceptional geographic and end market diversity Leadership in a highly fragmented industry Ongoing favorable housing market fundamentals Expanding in value-added capacity and sales growth driving market share gain
Slide 4: Q1 2019 Update
Q1 2019 Update Sales volume +6.8% per day1, versus a down single-family housing starts market, further demonstrating the resilience of our platform Growth Growth across all three customer end-markets and four of the core product categories Disciplined execution helped deliver exceptional gross margi
Slide 5: Q1 2019 Financial Highlights
Q1 2019 Financial Highlights Sales volume per day1: +6.8%, a strong start to the year as demand improved across our Revenue customer end markets $1.6b Value-added products: +8.8% sales per day / +10.0% excluding deflation -2.5% Commodity prices: deflation impacted sales per day -9.3% reflecting lowe
Slide 6: Q1 2019 Net Sales by Product Category
Q1 2019 Net Sales by Product Category Q1 2019 sales by product category1 ($ in millions) Lumber & Lumber Manufactured Window, Doors & Gypsum, Roofing & Siding, Metal & Sheet Goods Products Millwork Insulation Concrete $643.9 $317.4 $149.9 $353.4 $294.2 $120.9 $530.7 $332.1 $142.2 $269.8 $309.7 $117.
Slide 7: Q1 2019 Net Sales by End Market
Q1 2019 Net Sales by End Market Net sales bridge ($ in millions) Deflation Sales mix by end market (% of total) Repair & Remodel / Single family: +7.5% per day, outperforming a down single- Other family starts market 22% R&R / Other: +5.2% per day, as overall improvement in demand offset slower acti
Slide 8: Free cash flow and capital allocation priorities
Free cash flow and capital allocation priorities Strong financial underpinning… …allows BLDR to optimally allocate capital Fund capital expenditures at 1.5% of sales and Strong EBITDA generation capture value-added growth opportunities Strong free cash flow of $190-220m after capital Relatively low
Slide 9: Leveraging our strengths to accelerate growth and further expand profitability
Leveraging our strengths to accelerate growth and further expand profitability Organic Investment in Operational Excellence Value Added Product Initiatives growth Strong existing business positioned for ongoing growth and profitability as single-family starts return to historic average Leverage Ma
Slide 10: Initiatives underway, driving meaningful value creation
Initiatives underway, driving meaningful value creation Estimated EBITDA Category Summary Description Growth Core Single family starts return to historic average of 1.1m starts Business Repair and Remodeling growth at ~3% annually ~$130-160m Growth Multi-family starts return to 400K historic a
Slide 11: Value Added Products – Manufactured Products
Value Added Products – Manufactured Products Constraints around traditional job-site framing Significant growth opportunity in Manufactured Products1 Lack of skilled framing labor % of builders expected to use components Injuries and workers compensation ~$6 billion market with upside potential2 Add
Slide 12: Q1 2019 Recap & Outlook
Q1 2019 Recap & Outlook Q1 Highlights Market Outlook Q1 2019: Builders continue to adjust to buyers’ needs Family Single Total sales volume per day +6.8% Market fundamentals remain supportive of a low to mid-single digits percent growth for 2019 Growth across all three end markets Value-added Produc
Slide 13: Appendix – Financial Schedules
Appendix – Financial Schedules www.bldr.com
Slide 14: Reconciliation from Net Income to Adjusted EBITDA
Reconciliation from Net Income to Adjusted EBITDA Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 TTM ($ millions) Net sales $ 1,700.4 $ 2,089.9 $ 2,118.5 $ 1,816.0 $ 7,724.8 $ 1,631.3 $ 7,655.6 Gross margin 411.1 496.3 522.8 492.8 1,922.9 $ 442.0 1,953.9 Gross margin % 24.2% 23.7% 24.7% 27.1% 24.9% 27.1% 25.5%
Slide 15: Reconciliation from Net Income to Adjusted EBITDA
Reconciliation from Net Income to Adjusted EBITDA Three months ended March 31, ($ millions) 2019 2018 Reconciliation to Adjusted EBITDA: Reported GAAP Net Income $ 35.7 $ 23.2 Integration related expenses 4.8 4.4 Debt issuance and refinancing cost (1) (0.7) - Adjusted Net Income $ 39.8 $ 27.6 Weight
Slide 16: Interest Reconciliation and Debt Outstanding
Interest Reconciliation and Debt Outstanding Three months ended March 31, Net Debt Interest Expense Outstanding (in millions) 2024 Secured Notes @ 5.625% Fixed $ 9.6 $ 675.9 2024 Term Loan @ 5.8% (Floating LIBOR) 6.6 457.1 Revolving Credit Facility @ 4.7% (Floating LIBOR) 2.9 222.0 Amortization of d
Slide 17: GAAP Financial Schedules – Income Statement
GAAP Financial Schedules – Income Statement Three Months Ended March 31, 2019 2018 (Unaudited) (In thousands, except per share amounts) Sales $ 1,631,300 $ 1,700,436 Cost of sales 1,189,325 1,289,384 Gross margin 441,975 411,052 Selling, general and administrative expenses 370,084 358,908 Income fro
Slide 18: GAAP Financial Schedules – Balance Sheet
GAAP Financial Schedules – Balance Sheet March 31, December 31, 2019 2018 (Unaudited) (In thousands, except per share amounts) ASSETS Current assets: Cash and cash equivalents $ 11,724 $ 10,127 Accounts receivable, less allowances of $13,004 and $13,054 at March 31, 2019 and December 31, 2018, respe
Slide 19: GAAP Financial Schedules – Cash Flow
GAAP Financial Schedules – Cash Flow Three months ended March 31, 2019 2018 (Unaudited) (In thousands) Cash flows from operating activities: Net income $ 35,708 $ 23,220 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 23,576 22,819 Amortizatio
Slide 20: Investor Relations
Investor Relations Binit Sanghvi 214-765-3804 | binit.sanghvi@bldr.com www.bldr.com