Slide 1: Fourth Quarter and Fiscal Year 2015 Earnings Call
Fourth Quarter and Fiscal Year 2015 Earnings Call March 2016
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & 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, beliefs, expectations
Slide 3: Industry leader with significant opportunity to drive profitable growth
Industry leader with significant opportunity to drive profitable growth 1 Market leader in a highly fragmented industry Geographic diversity and balanced end market 2 exposure Opportunity for continued market share gains and 3 ongoing shift towards higher margin products 4 Substantial expected cost
Slide 4: Builders FirstSource: a diversified, national pro dealer with pro forma annual sales of $6.1B
Builders FirstSource: a diversified, national pro dealer with pro forma annual sales of $6.1B We are the largest supplier of building products, prefabricated components and value-added services, primarily for new residential construction and repair and remodeling, in the U.S. professional market s
Slide 5: Combination of Builders FirstSource and ProBuild - creating value for our shareholders and customers
Combination of Builders FirstSource and ProBuild - creating value for our shareholders and customers Acquisition benefits include: Leading scale and diversification Created the leading dealer in the sector - the largest distributor of building products to the pro channel; more than 2X our neares
Slide 6: Acquisition of ProBuild presents substantial expected cost savings
Acquisition of ProBuild presents substantial expected cost savings $ Run Rate Category Summary Description Total (M) Procurement One entity receives larger rebate percentages due to larger purchasing volume $30-36 Combined company negotiating more favorable terms due to increased scale Network
Slide 7: Greatly improved geographic and end market diversity
Greatly improved geographic and end market diversity We have created a more diversified company with enhanced scale and an improved geographic footprint, which allows for better customer reach and less exposure to any one market. Our national scale facilitates strategic partnerships with custome
Slide 8: Labor shortages and recent increases to cycle times may spur further demand for our value-added products
Labor shortages and recent increases to cycle times may spur further demand for our value-added products Pro forma 2015 sales by product category Lumber & Sheet Goods Manufactured product Windows, doors & millwork Other Lumber & 12% Lumber Sheet Goods 33% Siding, Metal & Concrete 9% Includes dimen
Slide 9: Acquisition Adjusted Financial Overview
Acquisition Adjusted Financial Overview 8
Slide 10: Q4 2015 Adjusted Results
Q4 2015 Adjusted Results Pro Forma Net Revenue Bridge 136 ($ in millions) Strong sales volume growth was offset by commodity deflation Adjusted sales volume grew approximately 13 8.1% in the homebuilding end market, in line 1,481 93 (121) (10) 1,456 with the 8.5% single family start growth 3.8
Slide 11: 2015 Adjusted Results
2015 Adjusted Results Pro Forma Net Revenue Bridge 136 ($ in millions) Sales volume growth was offset by commodity deflation Adjusted sales volume grew 5.9% in the homebuilding end market 74 6,083 277 (290) (77) 5.3% volume growth in the repair and 6,067 remodel end market was slightly better
Slide 12: Liquidity and Interest
Liquidity and Interest Total liquidity at December 31, 2015 was $684 million, consisting of net borrowing availability under the revolving credit facility and cash on hand As of December, 31, 2015, the company had reduced the amount outstanding under the revolving credit facility to $60 million
Slide 13: Debt Maturities and De-leveraging Priorities
Debt Maturities and De-leveraging Priorities Maturity profile allows multi-year runway of EBITDA growth and cash flow generation to reduce debt levels before refinancing is required. Long Term Bond Maturity Profile (1) ($ in millions) $618 $574 $418 $5 $5 $5 $5 $5 2016 2017 2018 2019 2020 2021 202
Slide 14: Adjusted EBITDA Reconciliation – Assumes January 1, 2014 Acquisition Close Date
Adjusted EBITDA Reconciliation – Assumes January 1, 2014 Acquisition Close Date Three months ended Twelve months ended December 31, December 31, 2015 2014 2015 2014 (in $ millions) Reported GAAP Net Income (Loss) $ (10.6) $ 2.4 $ (22.8) $ 18.2 (1) Pre-Close ProBuild Net Income - 10.7 32.0 25.2 Pro f
Slide 15: Restated Adjusted EBITDA Reconciliation by Quarter for 2015
Restated Adjusted EBITDA Reconciliation by Quarter for 2015 – Assumes January 1, 2015 Acquisition Close Date Pro forma results presented below reflect the ProBuild acquisition as if it had closed January 1, 2015 affecting non cash depreciation and amortization only. In 2016, we expect depreciati
Slide 16: SBuilders
SBuilders 4FirstSource