Slide 1: FY & Q4 2022 Earnings Presentation
FY & Q4 2022 Earnings Presentation D AV E R U S H , C E O PETER JACKSON, CFO FEBRUARY 28, 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 expected market share gains, forecasted financial performance or other s
Slide 3: Dave Rush Appointed as CEO
Dave Rush Appointed as CEO “ I’m honored and humbled to lead the Company’s outstanding and experienced team and execute our strategy to fuel long-term profitable growth while managing through a challenging and dynamic macro environment. D AV E R U S H , C E O 23+ Years of Experience at Builders Firs
Slide 4: 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 5: Record FY 2022 Performance
Record FY 2022 Perfor mance $22.7B $4.4B 19.3% $18.71 Net Sales Adj. EBITDA2 Adj. EBITDA Margin2 Adj. EPS2 14.2% Increase1 43.0% Increase1 390 bps Increase1 81.3% Increase1 2022 Total Capital Deployed: ~$3.5B (M&A of $0.6B, Share Repurchases of $2.6B, Net CapEx of $0.3B) 1) Comparison reflects YoY c
Slide 6: Executing Against Our Strategy in 2022
Executing Against Our Strategy in 2022 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ On October 3, acquired Pima Door & Supply and Sunrise Carpentry with annual sales of ~$10 million ▪ 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 . 6 6
Slide 7: Disciplined M&A Approach Continues
Disciplined M&A Approach Continues Acquisition FY21 Sales1 Date Rationale ▪ Successfully completed a substantial ▪ Provides building components to the single and multi-family markets $92M Q1 2023 throughout Texas number of value-enhancing acquisitions ▪ Deployed ~$2.1bn in capital on 14 ▪ Provides d
Slide 8: Progress Against Deployable Capital Goal
Progress Against Deployable Capital Goal ~$3.5B Deployed ~$3.5B in 2022 ✓ $2.6B deployed to repurchase 41.9M shares at an average 2021 Investor price of $61.79 per share $2.6B Day Goal ✓ $0.6B deployed on 6 acquisitions to expand our footprint into high-growth geographies and enhance our $7B - $10B
Slide 9: Flexible Business Model and Downturn Playbook
Flexible Business Model and Downtur n Playbook Ongoing Actions Downside Actions Value Creation Opportunities ✓ ~70% of SG&A expense is variable Discretionary spending reductions Highly accretive share ✓ Self-adjusting variable Freeze/reduce headcount repurchases compensation – which is ~20% of Tuck-
Slide 10: Continuing to Build Out Digital Solutions Platform
Continuing to Build Out Digital Solutions Platfor m 3-Dimensional Digital Twin Take-Off Model Structural Model Visualization Model ▪ Launched the Minimum Viable Product (MVP) of our builder portal – myBLDR.com; accelerates the ability to sell digital services to more customers ▪ Expansion on track w
Slide 11: Our Next Generation Customer Portal
Our Next Generation Customer Por tal ✓ Launched myBLDR.com MVP, our next generation customer portal. We are currently working with 40 pilot customers in our 4 launch markets ✓ Access point for delivering our Digital Tools and a more collaborative customer experience ✓ Seamlessly connects a homebuild
Slide 12: Q4 2022 Financial Update
Q4 2022 Financial Update Net Sales ($M) Bridge (Q4 2021 vs. Q4 2022) Core Organic Sales Highlights ($140) ($137) ▪ Single-Family: -13.9% with growth slowing during $4,635 -7.7% Core Organic $4,358 -3.2% Selling Days the quarter and a tough comparison against a +7.9% Acquisitions strong prior year Q4
Slide 13: Broad Strength Across Product Portfolio
Broad Strength Across Product Por tfolio Net Sales ($M) by Product Category (Q4 2021 vs. Q4 2022) Value-Added Products Specialty Building Lumber & Lumber Manufactured Products Windows, Doors & Millwork Products & Services Sheet Goods $1,130 $980 $1,681 $925 $849 +15% $1,180 $1,150 +22% $1,097 Q4 202
Slide 14: Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility
Strong Balance Sheet and Ample Liquidity Provide Financial Flexibility Balanced Capital Allocation Priorities Net Leverage Improvement 1 2 1.3x Base Business 4.2x Leverage 3 3.1x 2.5x 1.3x 1.0x 4 0.7x 2017 2018 2019 20201 2021 2022 Strong Free Cash Flow Weighted Average Debt Maturity of ~8 Years2 ($
Slide 15: 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 16: Q1 2023 Projected Net Sales and Adj. EBITDA
Q1 2023 Projected Net Sales and Adj. EBITDA 1 ▪ Adjusted EBITDA margin for Q1 2023 expected to be in the range of 11.7% to 11.9% ▪ The first quarter guide assumes gross margin to be in the 30% to $400M to $3.4B to $3.7B $440M 32% range. Net Sales Adj. EBITDA1 ▪ Projected Net Sales and Adjusted EBITD
Slide 17: 2023 Full Year Assumptions
2023 Full Year Assumptions 2023 Full Year Assumptions Metrics Assumptions 2022 Actual Capital Expenditures1 $300 to $350 million $330 million Interest Expense $150 to $170 million $198 million Effective Tax Rate 23% to 25% 23.0% Depreciation & Amortization Expense2 $525 to $550 million $497 million
Slide 18: Resilient Performance in a Range of 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 different r
Slide 19: Differentiated Market Leader Positioned for Above Market Growth
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 20: 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 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
Slide 27: 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 . 27 27