Slide 1: Third Quarter 2016 Earnings Call
Third Quarter 2016 Earnings Call November 4, 2016
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: Investment opportunity with significant potential to drive profitable growth
Investment opportunity with significant potential to drive profitable growth Market leader in a highly fragmented industry Geographic diversity and balanced end market exposure Substantial expected cost savings Opportunity for continued market share gains and ongoing shift towards higher margin prod
Slide 4: Builders FirstSource: Market leader in highly fragmented industry
Builders FirstSource: Market leader in highly fragmented industry We are one of the largest LBM (Lumber and Building Material) suppliers of building products, prefabricated components and value-added services in the U.S. professional market segment, primarily for new residential construction and r
Slide 5: Geographic diversity and balanced end market exposure
Geographic diversity and balanced end market exposure Presence in 74 of top 100 MSAs and in 40 states • We have created a diversified company with enhanced scale and an improved geographic footprint, which allows for better customer reach and less exposure to any one market. Our national scale f
Slide 6: Integration on track, with substantial cost savings expected
Integration on track, with substantial cost savings expected Integration highlights All aspects of the integration, including system conversions and facility consolidations, are progressing as planned − Closed all planned overlapping locations − Converted 77 locations onto Builder’s ERP − On track
Slide 7: Labor shortages and recent increases to cycle times may spur further demand
Labor shortages and recent increases to cycle times may spur further demand for our high margin value-added products 3Q16 sales by product category Lumber & Sheet Goods Manufactured product Windows, doors & millwork Other Lumber & 11% Lumber Sheet Goods 34% Siding, Metal & Concrete 9% Includes dim
Slide 8: Pro Forma Adjusted Financial Overview
Pro Forma Adjusted Financial Overview 7
Slide 9: Q3 2016 Adjusted Results
Q3 2016 Adjusted Results Pro Forma Net Revenue Bridge 3.1% sales growth on a pro forma basis ($ in millions) 136 Sales volume grew ~1.0% in the new residential homebuilding end market The company experienced ~2.8% growth in the repair and remodel end market (5) 9 45 - Commodity price inflati
Slide 10: Refinancing transactions year to date have reduced go forward cash interest by ~$34M annually
Refinancing transactions year to date have reduced go forward cash interest by ~$34M annually Multiple refinancing transactions, including debt exchanges, calling and refinancing of our secured notes, repricing the term loan, and repurchasing and retiring high interest notes, have reduced annual c
Slide 11: Liquidity, Cash Flow, and Deleveraging Priorities
Liquidity, Cash Flow, and Deleveraging Priorities Total liquidity at September 30, 2016 was $631.9M While we expect to borrow under our revolving credit facility for seasonal working capital and other operating needs, we expect to pay down additional debt in 2016 with free cash flow of $75-85M,
Slide 12: Appendix - Financial Schedules
Appendix - Financial Schedules 11
Slide 13: Adjusted EBITDA Reconciliation by Quarter and T12M
Adjusted EBITDA Reconciliation by Quarter and T12M Quarter 1 Quarter 2 Quarter 3 Quarter 4 Fiscal Quarter 1 Quarter 2 Quarter 3 LTM Sept 2015 2015 2015 2015 2015 2016 2016 2016 2016 Financial Data Pro forma net sales $ 1,284.1 $ 1,627.8 $ 1,699.0 $ 1,455.9 $ 6,066.8 $ 1,397.1 $ 1,677.3 $ 1,746.0 $ 6
Slide 14: Adjusted EBITDA Reconciliation Q3 and YTD
Adjusted EBITDA Reconciliation Q3 and YTD Three months ended Nine months ended September 30, September 30, 2016 2015 (1) 2016 2015 (1) (in $ millions) Reported GAAP Net Income (Loss) $ 125.5 $ (8.7) $ 137.9 $ (12.2) ProBuild Net Income (Loss) - 5.6 - 32.0 Pro forma interest adjustment - 6.1 - (41.8)
Slide 15: GAAP Financial Schedules – Income Statement
GAAP Financial Schedules – Income Statement The Company acquired ProBuild on July 31, 2015. Accordingly, ProBuild’s financial results are not included in the Generally Accepted Accounting Principles (“GAAP”) results for any periods prior to the Closing Date Three Months Ended Nine Months Ended Sep
Slide 16: GAAP Financial Schedules – Balance Sheet
GAAP Financial Schedules – Balance Sheet September 30, December 31, 2016 2015 (Unaudited) (In thousands, except per share amounts) ASSETS Current assets: Cash and cash equivalents $ 5,850 $ 65,063 Accounts receivable, less allowances of $10,923 and $8,049 at September 30, 2016 and December 31, 2015,
Slide 17: GAAP Financial Schedules – Cash Flow
GAAP Financial Schedules – Cash Flow Nine months ended September 30, 2016 2015 (Unaudited) (In thousands) Cash flows from operating activities: Net income (loss) $ 137,930 $ (12,251 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and
Slide 18: SBuilders FirstSource
SBuilders 4FirstSource