Installed Building Products, Inc. · NYSE:IBP
Installed Building Products — Debt Investor Presentation (November 2017)
25 slides from Installed Building Products's debt investor presentation, Nov 16, 2017
Slide 1: Public Lender Presentation
Public Lender Presentation November 16, 2017
Slide 2: Disclaimer
Disclaimer This presentation is being delivered on behalf of Installed Building Products, Inc. (the “Company”). The sole purpose of this presentation is to provide information in connection with the Company’s proposed re-pricing. This presentation does not purport to be all-inclusive or to contain a
Slide 3: Agenda
Agenda I Transaction Overview II Business Update III Financial Update PAGE 3
Slide 4: Transaction Overview
TRANSACTION OVERVIEW SECTION I
Slide 5: Executive Summary
Executive Summary • Installed Building Products, Inc. (“IBP” or the “Company”) is one of the nation’s largest1 installers for the new residential insulation market with a national platform consisting of over 125 locations serving all 48 continental states and the District of Columbia – Since the Ter
Slide 6: Transaction Overview
Transaction Overview ($ in millions) Sources & Uses of Funds Pro Forma Capitalization % of x Pro Forma x As Reported Outstanding Cap Adj. EBITDA(1) Adj. EBITDA(1) Sources of Funds Uses of Funds Current Adj. PF Re-Priced TL B $299 Existing TL B $299 Cash $67 ($1) $66 Cash from the B/S $1 Expenses $1
Slide 7: Summary Terms: Term Loan B
Summary Terms: Term Loan B Borrower Installed Building Products, Inc. (the “Borrower”) Guarantors All current and future domestic material subsidiaries of the borrower, subject to certain exceptions Security 1st lien on all the capital stock and substantially all tangible and intangible assets (excl
Slide 8: Transaction Timeline
Transaction Timeline November 2017 Date Event S M T W T F S 1 2 3 4 November 16 Lender Call 5 6 7 8 9 10 11 12 13 14 15 16 17 18 November 21 Commitments Due 19 20 21 22 23 24 25 26 27 28 29 30 November 27 / 28 Close and Fund - Thanksgiving - Key Dates PAGE 8
Slide 9: Business Update
B INESS UPDATE SECTION II © y e Oe
Slide 10: Local Presence on a National Scale
Local Presence on a National Scale One of the nation’s largest1 installers for the new residential insulation market with a national platform consisting of over 125 locations serving all 48 continental states and the District of Columbia • IBP Branches Note: Shaded states are where IBP has a physica
Slide 11: Q3 2017 Products and End Markets
Q3 2017 Products and End Markets Acquisition of Alpha and strong growth from ancillary products has led to a more balanced product and end market mix Products End Markets By Q3 Net Revenue Down By Q3 Net Revenue Down from from 76% in 75% in Q3 2016 6% Q3 2016 10% 11% 4% 6% 7% 16% 7% 66% 67% Shower D
Slide 12: Benefits of a Streamlined Value Chain
Benefits of a Streamlined Value Chain Scale provides direct link between manufacturers and builders Typical Building Product Value Chain Insulation Value Chain 1 Building Products Manufacturer 1 Insulation Manufacturer 2 Distributor 3 Wholesaler or Purchasing 2 Logistics Retailer Installation 4 Cont
Slide 13: Drivers of Growth and Profitability
Drivers of Growth and Profitability Asset lite model accommodates growth without significant capital needs Capitalize on New Home Total US Housing Starts forecasted to Construction Recovery increase to 5% CAGR from 2016 to 2018E1 Q3 2017 same branch single-family sales Continue to Strengthen Market
Slide 14: Continuing To Grow Market Share
Continuing To Grow Market Share Track record of increasing net revenue per US housing completions since 2005 IBP Net Rev. / US Housing Completions Market Share Expansion ($ / US Completions) 2005 MARKET SHARE MARKET SHARE TODAY IBP 5% IBP 28% OTHERS 95% OTHERS 72% Source: Management, Completions fro
Slide 15: Update on Alpha & Recent Acquisitions
Update on Alpha & Recent Acquisitions IBP continues to execute on its proven M&A playbook and integration strategy Alpha Recent Acquisitions Acquisition closed in January 2017 and represents IBP’s IBP has completed 12 acquisitions year-to-date, largest acquisition to date representing a total of
Slide 16: Financial Update
FINANCIAL UPDATE SECTION III
Slide 17: Strong Top-Line Momentum
Strong Top-Line Momentum 12% CAGR from 2007 to LTM 9/30/17 Total Net Revenue ($ in millions) $1,067 2007 – LTM 9/30/17 CAGR: 12% $863 $663 $518 $365 $432 $307 $301 $232 $223 $238 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9/30/17 2017 LTM
Slide 18: Historical Financial Performance
Historical Financial Performance Net Revenue1 Adjusted EBITDA1 ($ in millions) ($ in millions) $149 $135 2013 – LTM 9/30/17 Organic $1,128 $1,067 2013 – LTM 9/30/17 Organic CAGR: 13.5% CAGR: 34.5% $105 $863 $76 $62 $468 $529 $663 $71 $39 $305 $518 $44 $22 $432 $181 $6 $85 $25 $60 $73 $73 $558 $599 $
Slide 19: Q3 Update
Q3 Update Strong Q3 2017 performance attributable to growth in Significant Year-Over-Year Growth same branch sales of 7.2%. Same branch residential sales increased 11.7% Net Revenue Adj. EBITDA2 Net revenue growth was predominantly attributable to Growth: 31.0% Growth: 33.2% acquisitions and org
Slide 20: PF Net Revenue Bridge
PF Net Revenue Bridge 1 IBP completed 10 acquisitions from October 2016 – September 2017 # Acquisition Date 1 East Coast October 17, 2016 2 3R November 14, 2016 3 Alpha January 5, 2017 4 Arctic January 16, 2017 5 CGA / Atlanta Custom Glazing March 20, 2017 6 Legacy Glass & Supply May 1, 2017 7 Colum
Slide 21: Appendix
l aN | APPENDIX 1 ‘a 7 *
Slide 22: Historical EBITDA & Adjusted EBITDA Reconciliation
Historical EBITDA & Adjusted EBITDA Reconciliation Years Ended December 31, LTM Notes 2013 2014 2015 2016 09/30/2017 Net (loss) income 6.0 13.9 26.5 38.4 41.4 Interest expense 2.3 3.2 3.7 6.2 13.0 Provision for income taxes 1 4.2 8.6 15.4 21.2 21.9 Depreciation and amortization 11.5 15.0 23.2 34.8 4
Slide 23: Historical EBITDA & Adjusted EBITDA Reconciliation Notes
Historical EBITDA & Adjusted EBITDA Reconciliation Notes 1 Excludes income taxes related to discontinued operations 2 Includes settlement expenses related to two lawsuits against us that were settled in January and February 2014, which were included in administrative expenses for the year ended Dece
Slide 24: S&A & Adjusted S&A Reconciliation
S&A & Adjusted S&A Reconciliation ($ in millions) Years Ended December 31, LTM 2013 2014 2015 2016 09/30/2017 S&A 93.1 111.6 137.1 175.1 211.4 Legal settlement and reserves (1.8) - (0.1) - - Acquisition related expenses - - (1.1) (2.3) (3.2) Share-based compensation expense - - (2.1) (1.9) (4.7) Non
Slide 25: Gross Profit & Adjusted Gross Profit Reconciliation
Gross Profit & Adjusted Gross Profit Reconciliation ($ in millions) Years Ended December 31, LTM 2013 2014 2015 2016 09/30/2017 Gross Profit 109.7 140.0 188.3 252.4 311.0 Reserve for workers' compensation 1 - 1.8 - - - Stock compensation expense 2 - - - - 0.5 Adjusted Gross Profit $109.7 $141.8 $188
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