Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CFO M AY 3 , 2 0 2 3 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 expected market share gains, forecasted financial performance or other s
Slide 3: Our Strategic Priorities Fuel Long-term Profitable Growth
Our Strategic Priorities Fuel Long -ter m Profitable Growth Organic Growth Drive Continue to Pursue of Value-added Operational Build Our Strategic Products and Excellence High-Performing Tuck-in Services Culture Acquisitions 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
Slide 4: Strong Q1 2023 Performance Against a Challenging Macro Backdrop
Strong Q1 2023 Perfor mance Against a Challenging Macro Backdrop $3.9B $1.4B $632M $2.96 Net Sales Gross Profit Adjusted EBITDA1 Adjusted EPS1 31.6% Decrease2 25.2% Decrease2 36.9% Decrease2 24.1% Decrease2 Gross Margin up Adj. EBITDA1 300bps2 to 35.3% Margin of 16.3% Q1 2023 Total Capital Deployed:
Slide 5: Executing Against Our Strategy in Q1 2023
Executing Against Our Strategy in Q1 2023 ▪ ▪ ▪ ▪ more than 30% ▪ ▪ Continuing to Drive Long-Term Shareholder Value 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 . 5 5
Slide 6: Disciplined M&A Approach Continues
Disciplined M&A Approach Continues Acquisition FY22 Sales Date Rationale ▪ Successfully completed a substantial number of value-enhancing acquisitions ▪ Expanded footprint into high growth geographies and enhanced our value- $10M Q2 2023 ▪ Enhances millwork capabilities in Chattanooga, TN added offe
Slide 7: Progress Against Deployable Capital Goal
Progress Against Deployable Capital Goal ~$4.3B Deployed ~$4.3B since 12/31/21: ✓ $3.2B deployed to repurchase common shares 2021 Investor $3.2B ✓ $0.7B deployed on 9 acquisitions to expand our footprint into high- Day Goal growth geographies and enhance our value-added offerings ✓ $0.4B allocated t
Slide 8: Continuing to Build Our Digital Solutions Platform
Continuing to Build Our Digital Solutions Platfor m 3-Dimensional Digital Twin Take-Off Model Structural Model Visualization Model ▪ Launched myBLDR.com builder portal in Q1, which provides access to our 3-dimensional Home Configure pilot; accelerates ability to sell our digital services to more cus
Slide 9: Digital Solutions: Our Next Gen Customer Portal
Digital Solutions: Our Next Gen Customer Por tal ✓ Access point for delivering our Digital Tools and a more collaborative customer experience ✓ With continued development, we will be able to connect a homebuilder’s processes within one easy-to-use platform ✓ Plan intake and mark-up ✓ Ability to orde
Slide 10: Q1 2023 Financial Update
Q1 2023 Financial Update Net Sales ($M) Bridges (Q1 2022 to Q1 2023) Core Organic Sales Highlights ▪ Single-Family: -34.1% as Single-Family housing $312 demand has slowed $55 ($1,493) ($672) ▪ Multi-Family: +11.5% driven by a strong rental $5,681 market and resulting backlog $3,883 ▪ R&R/Other: +3.1
Slide 11: Broad Strength Across Value-Added Portfolio
Broad Strength Across Value-Added Por tfolio Net Sales ($M) by Product Category (Q1 2022 vs. Q1 2023) Value-Added Products Specialty Building Lumber & Lumber Manufactured Products Windows, Doors & Millwork Products & Services Sheet Goods $2,337 $1,026 $1,058 $953 $1,366 $838 +3% -12% -18% $1,115 $87
Slide 12: Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility
Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility Balanced Capital Allocation Priorities Low Net Leverage Profile 4.2x 1 3.1x 2 2.5x 3 1.3x 1.0x 0.7x 0.8x 4 2017 2018 2019 20201 2021 2022 Q1 2023 Strong Free Cash Flow Weighted Average Debt Maturity of ~8 Years2 ($M) ($M) $2,000
Slide 13: Q2 2023 Projected Net Sales and Adj. EBITDA
Q2 2023 Projected Net Sales and Adj. EBITDA 1 ▪ Adjusted EBITDA margin for Q2 2023 expected to be in the range of 13.1% to 13.7% ▪ The second quarter guide assumes gross margin to be in the 32% to $525M to $4.0B to $4.2B $575M 34% range Net Sales Adj. EBITDA1 ▪ Projected Net Sales and Adjusted EBITD
Slide 14: 2023 Full Year Assumptions
2023 Full Year Assumptions 2023 Full Year Assumptions Metrics Current Assumptions Prior Assumptions Capital Expenditures1 $325 to $375 million $300 to $350 million Interest Expense Unchanged $150 to $170 million Effective Tax Rate Unchanged 23% to 25% Depreciation & Amortization Expense2 $525 to $57
Slide 15: Positioned to Generate Resilient Financial Performance in 2023 Downside Scenarios
Positioned to Generate Resilient Financial Perfor mance in a Range of 2023 Downside Scenarios Estimated Performance Scenario Analysis Based on SF Housing Starts and Commodity Cost Assumptions 2022A Fiscal 2023 Scenarios Assumptions ▪ Price fluctuations can result in materially SF Housing 1,005 (0%)
Slide 16: Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability
Differentiated Market Leader Positioned for Above Market Growth & Expanding Profitability Market leader in a highly fragmented industry Growing portfolio of value-added products and solutions Strategic investment in value-added capacity, driving share gains and margin expansion Exceptional geographi
Slide 17: 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 18: Flexible Business Model and Downturn Playbook
Flexible Business Model and Downtur n Playbook Ongoing Actions Downside Actions Value Creation Opportunities ✓ ~70% of SG&A expense is variable Discretionary spending reductions Highly accretive share ✓ Self-adjusting variable Freeze/reduce headcount repurchases compensation – which is ~20% of Tuck-
Slide 19: Base Business Performance Aligned with Long Term Plan
Base Business 1 Perfor mance Aligned with Long Ter m Plan Over 70% of BFS’s Base Business1 Majority of EBITDA Growth is Driven by Value-Added Products is Non-Commodity and Sustainable Operations Improvement / Synergy Windows, Doors & Millwork Lumber & Lumber Sheet Goods Base Business Commodity <>$40
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