Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CFO AUGUST 6, 2024 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: Clear Strategic Pillars Driving Long-Term Profitable Growth
Clear Strategic Pillars Driving Long-Ter m Profitable Growth Organic Growth with a Drive Continue to Disciplined Focus on Operational Build Our High- Capital Value-Added Excellence & Performing Allocation Products and Invest in Digital Culture Services and Innovation Footnote © C O P Y R I G H T B U
Slide 4: Resilient Q2 2024 Performance
Resilient Q2 2024 Perfor mance $4.5B $1.5B $670M $3.50 Net Sales Gross Profit Adjusted EBITDA1 Adjusted EPS1 1.6% Decrease2 8.3% Decrease2 12.9% Decrease2 10.0% Decrease2 Gross Margin Adjusted EBITDA1 of 32.8% Margin of 15.0% Q2 2024 Total Capital Deployed: ~$1.1B 1) Adjusted EBITDA, Adjusted EBITDA
Slide 5: Executing Against Our Strategy
Executing Against Our Strategy ▪ Q2 core organic net sales for Single-Family increased 1.1% led by higher sales of early-stage homebuilding products ▪ Multi-Family decreased 31.3% against strong prior year comps, while Repair & Remodel/Other increased 1.5% ▪ Value-added product mix was 49% for Q2 20
Slide 6: Improving Value-Added Mix Through Proven M&A Process
Improving Value-Added Mix Through Proven M&A Process Net Sales Acquisition Date Benefits Growth in Value- 400 bps Added Product Mix Q2 2024 ▪ Expands presence in Northern Florida with custom builders Value-Added Value-Added Product Mix: Product Mix: ▪ Establishes truss manufacturing within Metro Det
Slide 7: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Successfully Deployed ~$1.3B ~$1.1B in Q2 2024 $0.2B $0.1B $85M allocated to ROI- generating growth investments including Digital and automation $1.0B $74M deployed on 3 acquisitions to expand our footprint into high-growth geographies and enhance our value-a
Slide 8: Creating a Better Way to Build as Demand for Modern, Digital Solutions Grows
Creating a Better Way to Build as Demand for Moder n, Digital Solutions Continues to Grow Addressing industry …with industry-leading …to become the premier partner pain points… digital solutions… for builders and suppliers ▪ Lengthy design cycle remains Streamlined design in a Increase Wallet Shar
Slide 9: BFS Digital Platform: Customer Case Studies
BFS Digital Platfor m: Customer Case Studies REGIONAL PRODUCTION BUILDER REGIONAL CUSTOM BUILDER NATIONAL SPEC BUILDER HIGH-END CUSTOM BUILDER $400K - $900K / HOME $350K - $1M / HOME $200K - $600K / HOME $1M - $5M / HOME 1,200 STARTS / YEAR 200 STARTS / YEAR 6,500 STARTS / YEAR 40 STARTS / YEAR OPER
Slide 10: Q2 2024 Financial Update
Q2 2024 Financial Update Core Organic Sales Highlights Q2 2024 Net Sales ($M) Bridge ▪ Single-Family: +1.1% led by higher starts, partially offset by a decline in the size, complexity, and value of an average home ($86) $14 -3.8% Core Organic +0.3% Inflation ▪ Multi-Family: -31.3% against strong pri
Slide 11: Q2 2024 Financial Update
Q2 2024 Financial Update Q2 2024 Net Sales Mix by Product Category Q2 2024 Core Organic Sales1 Highlights Q2 2024 Value-Added ▪ Value-Added Core Organic Sales1 decreased 9% due to a decline Product Mix: ~49% in Multi-Family truss and lapping higher completion levels 24% 24% – Manufactured Products d
Slide 12: Strong Balance Sheet and Liquidity Provide Financial Flexibility
Strong Balance Sheet and Liquidity Provide Financial Flexibility Consistent Capital Allocation Priorities Low Net Leverage Profile 1 Maintain a Strong Balance Sheet ▪ Target Base Business leverage ratio of 1.0x to 2.0x Organic Growth 1.7x 2 2.5x Base Business ▪ Drive productivity and growth with inv
Slide 13: 2024 Outlook
2024 Outlook 2024 Full Year Outlook Metrics Current Guidance Prior Guidance 2023 Actual Total Net Sales1 $16.4 to $17.2 billion $17.5 to $18.5 billion $17.1 billion Gross Profit Margin1 31.5% to 32.5% 30% to 33% 35.2% Total Adjusted EBITDA1,3 $2.2 to $2.4 billion $2.4 to $2.8 billion $2.9 billion To
Slide 14: 2024 Full Year Assumptions
2024 Full Year Assumptions 2024 Full Year Assumptions Metrics Current Assumptions Prior Assumptions Single-Family Starts Growth (BLDR geographies) Up Low-Single Digits Up Mid-Single Digits Multi-Family Starts Growth (BLDR geographies) Down 25% to 30% Down 20% to 30% Repair & Remodel Growth (BLDR geo
Slide 15: Overview of Base Business Framework
Over view of Base Business Framework ~65% 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 $17.1 $3.1 $4.2 $16.8 ~8% $2.1 $2.9 $12.8 $0.6 $2.3 ~21% $10.9 $1.3 $0.6 $0.0 $0.3 $15.7 $17.7 $16.5 $16.8 $1.1 $12.5 $0.8 $2.3 $2.3 $2.3 $11.5 $1.8 $0.9 $1.1 ($0.6) ($0.1) 2019PF 2020PF
Slide 17: Strong Operating Model Creates Value for Our Customers and Shareholders
Strong Operating Model Creates Value for Our Customers and Shareholders 1 Creating opportunity by 3 Leveraging robust FCF addressing builder problems generation from resilient and delivering value-added business model and broad products and solutions across product portfolio to fuel cycles; strong t
Slide 18: 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 19: 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 . 19 19
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