Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CFO NOVEMBER 1, 2023 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: 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: Resilient Q3 2023 Performance
Resilient Q3 2023 Perfor mance $4.5B $1.6B $813M $4.24 Net Sales Gross Profit Adjusted EBITDA1 Adjusted EPS1 21.3% Decrease2 21.5% Decrease2 30.6% Decrease2 18.5% Decrease2 Gross Margin of Adj. EBITDA1 34.9% Margin of 17.9% Q3 2023 Total Capital Deployed: ~$0.4B (M&A of $58M, Share Repurchases of $0
Slide 5: Executing Against Our Strategy
Executing Against Our Strategy ▪ decreased 19.2% amid a weaker housing market ▪ Multi-Family increased 6.4% as we continue to work through the backlog, while Repair and Remodel/Other increased 1.4% ▪ ▪ ▪ 29% ▪ ▪ Completed five acquisitions through September 2023 with aggregate FY22 sales of ~$350 mi
Slide 6: Disciplined M&A Approach Improving Mix
Disciplined M&A Approach Improving Mix Acquisition Date Rationale Net Sales Q4 2021 Q3 2023 ▪ Expands presence in Florida Panhandle with custom Value-Added Value-Added Q3 2023 builder customers Product Mix: Product Mix: 45% 51% ▪ Expands presence in Detroit and provides capacity for 19% Q3 2023 6% M
Slide 7: Progress Against Deployable Capital Goal
Progress Against Deployable Capital Goal ~$5.7B Deployed ~$5.7B1 since 12/31/21: ✓ $4.2B deployed to repurchase 2021 Investor $4.2B common shares Day Goal ✓ $0.8B deployed on 11 acquisitions to expand our footprint into high- growth geographies and enhance our value-added offerings $7B - $10B $0.8B
Slide 8: Digital Strategy is on Track
Digital Strategy is on Track Build Optimize ▪ Digital Tools allow our customers more control and transparency over their design, cost estimating, and construction processes ▪ Further enhancements have been delivered in Q3 to our Paradigm Estimate Marked-Up Plan myBLDR.com customer portal, providing
Slide 9: myBLDR.com Milestones and Enhancements
myBLDR.com Milestones and Enhancements Consolidated Builder Views Consolidated BFS Sales Tools ✓ We are progressing in product development and adoption ✓ Enhanced dashboards and tools for both customers and employees ✓ Home Configure enhancements for identifying favorites, locking designs, and compa
Slide 10: Q3 2023 Financial Update
Q3 2023 Financial Update Core Organic Sales Highlights Net Sales ($M) Bridge (Q3 2022 vs. Q3 2023) ▪ Single-Family: -19.2% due to a weaker housing market ($703) ▪ Multi-Family: +6.4% driven by recent acquisitions and -13.5% Core Organic ($524) $5,761 -1.6% Day Adjustment favorable margins 2.9% Acqui
Slide 11: Broad Resiliency Across Value-Added Portfolio
Broad Resiliency Across Value-Added Por tfolio Q3 2023 Net Sales Mix by Product Category Core Organic Sales1 Highlights Value-Added Product Mix: ~51% ▪ Value-Added Core Organic Sales decreased ~17% due to challenging comps year-over-year 24% 27% ▪ Manufactured Products decreased ~19% $4.5B ▪ Windows
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 1.5x 2 2.5x Base Business Leverage 3 1.3x 1.0x 0.7x 1.1x 4 1 2017 2018 2019 2020 2021 2022 Q3 2023 Strong Free Cash Flow Weighted Average Debt Maturity o
Slide 13: 2023 Outlook
2023 Outlook 2023 Full Year Financial Expectations Metrics Current Guidance 2022 Actual Base Business Sales1 $16.4 billion $17.7 billion Base Business Adjusted EBITDA1 $2.2 billion $2.3 billion Base Business Adjusted EBITDA Margin1 13.5% 13.1% Total Net Sales2 3 $16.8 to $17.1 billion $22.7 billion
Slide 14: 2023 Full Year Assumptions
2023 Full Year Assumptions 2023 Full Year Assumptions Metrics Current Assumptions Prior Assumptions1 Single-Family Starts Growth (BLDR geographies) Down Low Double-Digits to High Single-Digits Unchanged Multi-Family Starts Growth (BLDR geographies) Up Low Double-Digits Unchanged Repair & Remodel Gro
Slide 15: Overview of Base Business Framework
Over view of Base Business Framework ~70% 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 $4.2 $17.0 9.3% $3.1 $2.1 25.7% $0.6 $2.8 $12.8 $1.3 $0.6 $10.9 $0.3 $17.7 $16.4 $15.7 $1.1 $11.5 $12.5 $0.8 $2.3 $2.2 $1.8 $0.9 $1.1 ($0.6) ($0.1) 2019 2020 2021 2022 2023E 2019 2020 202
Slide 17: Positioned to Generate Resilient Financial Performance in a Range of 2024 Scenarios
Positioned to Generate Resilient Financial Perfor mance in a Range of 2024 Scenarios Estimated Performance Scenario Analysis Based on SF Housing Starts and Commodity Cost Assumptions 2023E3 Fiscal 2024 Scenarios Assumptions ▪ Price fluctuations can result in materially SF Housing Down LDD different
Slide 18: 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 growth and margin expansion Exceptional geographic, cu
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