Slide 1: First Quarter 2016 Earnings Call
First Quarter 2016 Earnings Call May 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 3 Substantial expected cost savings Opportunity for continued market share gains and 4 ongoing shift towards higher margin p
Slide 4: Builders FirstSource: a diversified, national pro dealer with pro forma annual sales of $6.2B
Builders FirstSource: a diversified, national pro dealer with pro forma annual sales of $6.2B We are the largest LBM (Lumber and Building Material) supplier of building products, prefabricated components and value- added services, primarily for new residential construction and repair and remodelin
Slide 5: 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 6: Combination of Builders FirstSource and ProBuild – already producing significant value
Combination of Builders FirstSource and ProBuild – already producing significant value 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 nearest LBM competit
Slide 7: Integration of ProBuild on track, with substantial cost savings expected
Integration of ProBuild on track, with substantial cost savings expected $ Run Rate Category Summary Description Total (M) Procurement One entity receives larger rebate percentages due to larger purchasing volume $30-36 Combined company negotiating more favorable terms due to increased scale Net
Slide 8: Labor shortages and recent increases to cycle times may spur further demand for our value-added products
Labor shortages and recent increases to cycle times may spur further demand for our value-added products First quarter sales by product category Lumber & Sheet Goods Manufactured product Windows, doors & millwork Other Lumber & 11% Lumber Sheet Goods 33% Siding, Metal & Concrete 9% Includes dimens
Slide 9: Acquisition Adjusted Financial Overview
Acquisition Adjusted Financial Overview 8
Slide 10: Q1 2016 Adjusted Results
Q1 2016 Adjusted Results Pro Forma Net Revenue Bridge 136 ($ in millions) Strong 9.1% sales volume growth, on a pro forma basis, was partially offset by commodity deflation 41 (86) (3) 1,397 Sales volume grew approximately 16.0% in the 1,284 161 homebuilding end market The company experienced
Slide 11: Liquidity and Interest
Liquidity and Interest Total liquidity at March 31, 2016 was $623 million As of quarter end, Adjusted Pro Forma EBITDA (on a trailing 12 month basis) was $354.3 million and net debt was $1,966.0 million. This implies a multiple of 5.5x net debt / Adjusted Pro Forma EBITDA. The company reduce
Slide 12: Debt Maturities and De-leveraging Priorities
Debt Maturities and De-leveraging Priorities While we expect to borrow under our revolving credit facility for seasonal working capital and other operating needs, we expect to pay down additional debt in 2016 with free cash flow Maturity profile allows multi-year runway of EBITDA growth and cash
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three months ended March 31, 2016 2015 (1) (in $ millions) Reported GAAP Net Income (Loss) $ (17.0) $ (7.1) ProBuild Net Income (Loss) - (21.0) Pro forma interest adjustment - (23.9) Acquisition depreciation and amortization adjustments - (10.7) Other pro forma adjustm
Slide 14: Adjusted EBITDA Reconciliation by Quarter
Adjusted EBITDA Reconciliation by Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 Fiscal Quarter 1 LTM 2015 2015 2015 2015 2015 2016 March 31, 2016 Financial Data Pro forma net sales $ 1,284.1 $ 1,627.8 $ 1,699.0 $ 1,455.9 $ 6,066.8 $ 1,397.1 $ 6,179.8 Sales adjustment for closed locations (3.5) (0.
Slide 15: p SBuilders
p SBuilders 4FirstSource