Slide 1: First Quarter 2017 Earnings Call
First Quarter 2017 Earnings Call May 9, 2017
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: Differentiated, diversified, and uniquely positioned for ongoing profitable growth
Differentiated, diversified, and uniquely positioned for ongoing profitable growth Differentiated market leader in a highly fragmented industry Geographic and end market diversity Favorable housing cycle dynamics Potential for continued market share gains and ongoing shift towards higher margin prod
Slide 4: Builders FirstSource: Differentiated market leader in highly fragmented industry
Builders FirstSource: Differentiated market leader in highly fragmented industry We are one of 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 remodeling, in t
Slide 5: Geographic diversity and balanced end market exposure
Geographic diversity and balanced end market exposure We are a diversified company with enhanced scale and an expansive geographic footprint, which allows for better customer reach and less exposure to any one market Presence in 75 of top 100 MSAs and in 40 states Our national scale facilitate
Slide 6: Upside remains in US housing cycle
Upside remains in US housing cycle U.S. housing starts(1) Professional home improvement products spending(2) 2.5 $120 Historic Averages: Total 1.4M (Single Family = 1.0M) Previous recessionary $100 2.0 troughs $80 ($ in billions) 1.5 (Millions) $60 1.0 $40 0.5 $20 0.0 $0 1968 1978 1988 1998 2008 201
Slide 7: Labor shortages and extended building cycle times increase the relative value of our high margin value-added products
Labor shortages and extended building cycle times increase the relative value for of our high margin value-added products Q1 - 17 sales by product category Lumber & Sheet Goods Manufactured product Windows, doors & millwork Other Lumber & 11% Lumber Sheet Goods 34% Siding, Metal & Concrete 9% Gypsum
Slide 8: Framing Lumber Composite approaching a 5 year high, impacted by tariffs on Canadian imports
Framing Lumber Composite approaching a 5 year high, impacted by expectations and preliminary tariffs on imports from Canada On April 24, 2017, the US Department of Commerce (DOC) announced a preliminary determination on the countervailing duty on softwood lumber imports from Canada. These imports
Slide 9: What this means for BLDR
What this means for BLDR Overall, we believe total lumber prices in 2017 will remain Q1 - 17 sales by product category considerably higher than 2016, although not at today’s level Given the uncertainty around the final Canadian tariff, and timing gap between the initial determination and final f
Slide 10: Executing on 2017 priorities - focus on growth
Executing on 2017 priorities - focus on growth Leverage our geographic reach, vendor and Accelerating Capture of Market customer relationships, and leading scale to Q1 Share growth in SF and R&R Share grow faster than the market Added 32 sales people in Q1 We will continue to expand our salesf
Slide 11: Pro Forma Adjusted Financial Overview
Pro Forma Adjusted Financial Overview
Slide 12: Q1 2017 Adjusted results
Q1 2017 Adjusted results Pro Forma Net Revenue Bridge Sales excluding closed locations grew 10.2% ($ in millions) over prior year Sales volume +7.2% in single family new residential construction +6.4% sales volume growth in the repair and remodel / other end market Commodity price inflation
Slide 13: Free cash flow and deleveraging priorities
Free cash flow and deleveraging priorities The following financial attributes… We believe will enable Builders FirstSource to… Strong projected free cash flow generation Generate free cash flow of $145-155M in 2017 Low capital intensive business with ongoing Reduce debt expenditures at 1 - 1.5% of s
Slide 14: Liquidity and debt profile
Liquidity and debt profile Total liquidity at March 31, 2017 was $612M Maturity profile has been extended, with the first tranche of debt coming due in August 2023 • Long term debt weighted average maturity (excluding lease financing obligations) is 6.8 years • Maturity profile allows multi-year
Slide 15: Appendix - Financial Schedules
Appendix - Financial Schedules
Slide 16: Adjusted EBITDA Reconciliation by Quarter
Adjusted EBITDA Reconciliation by Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 Fiscal Quarter 1 T12M 2016 2016 2016 2016 2016 2017 Q1-17 Financial Data Pro forma net sales $ 1,397.1 $ 1,677.3 $ 1,746.0 $ 1,546.9 $ 6,367.3 $ 1,533.1 $ 6,503.2 Sales adjustment for closed locations (6.5) (2.6) (3.3)
Slide 17: Reconciliation from Net Income to Adjusted EBITDA Q1 2017
Reconciliation from Net Income to Adjusted EBITDA Q1 2017 Three months ended March 31, 2017 2016 (in $ millions) Reported GAAP Net Income (Loss) $ 3.8 $ (17.0) Integration related expenses 5.9 5.4 (1) Debt issuance and refinancing cost 2.4 (7.8) Increase/(release) of tax valuation allowance - 5.1 Fa
Slide 18: GAAP Financial Schedules – Income Statement
GAAP Financial Schedules – Income Statement Three Months Ended March 31, 2017 2016 (Unaudited) (In thousands, except per share amounts) Sales $ 1,533,064 $ 1,397,114 Cost of sales 1,157,012 1,047,366 Gross margin 376,052 349,748 Selling, general and administrative expenses 335,775 326,969 Income fro
Slide 19: GAAP Financial Schedules – Balance Sheet
GAAP Financial Schedules – Balance Sheet March 31, December 31, 2017 2016 (Unaudited) (In thousands, except per share amounts) ASSETS Current assets: Cash and cash equivalents $ 4,515 $ 14,449 Accounts receivable, less allowances of $14,090 and $11,571 at March 31, 2017 and December 31, 2016, respec
Slide 20: GAAP Financial Schedules – Cash Flow
GAAP Financial Schedules – Cash Flow Three months ended March 31, 2017 2016 (Unaudited) (In thousands) Cash flows from operating activities: Net income (loss) $ 3,822 $ (16,980 ) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 23,592
Slide 21: p SBuilders
p SBuilders 4FirstSource