Installed Building Products, Inc. · NYSE:IBP
Installed Building Products — Investor Presentation (March 2014)
20 slides from Installed Building Products's investor presentation, Mar 26, 2014
Slide 1: Investor Presentation
Exhibit 99.3 Investor Presentation March 27, 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. All statements other than historical facts included in this presentation may be forward-looking. Generally, the words “will,” “may
Slide 3: Evolution into an Industry Leader
Evolution into an Industry Leader The second largest1 new residential insulation installer in the US with over 100 locations serving 46 states Service area covers more than 50% of total permits issued vs. 24% in 2005 with a #1 or #2 position in greater than half of the markets served 2 Note: Shaded
Slide 4: 2013 Product & End Markets
2013 Product & End Markets Focused insulation installation offering, coupled with complementary products for end markets having significant cyclical upside Net Revenue by Product – FY 2013 Net Revenue by End Market – FY 2013 Other New Multi- Building Family Rain Products Repair & 6% Shower Gutters 6
Slide 5: Benefits of a Unique Value Chain Structure
Benefits of a Unique Value Chain Structure Scale provides a direct link between manufacturers and builders through a streamlined value chain Typical Value Chain Insulation Value Chain Building Products Manufacturer Insulation Manufacturer Distributor Purchasing, Logistics, Wholesaler or Retailer Ins
Slide 6: Critical Position in an Attractive Industry
Critical Position in an Attractive Industry Primary link between a concentrated manufacturer base and a highly fragmented customer base North America Insulation Homebuilders by Manufacturers (2012)1 Closings (2012) 2 Pulte Group D.R. Horton 3% Lennar Other 3% 2% NVR 1% KB Homes 1% Top 3 Other Other
Slide 7: Strong Supplier and Customer Relationships
Strong Supplier and Customer Relationships Key strategic relationships with manufacturers and an attractive, diversified customer base Key Strategic Suppliers Diversified Customer Base • Predominately purchases materials direct from • Sells to diverse set of national, regional and manufacturers cust
Slide 8: Local Market Leadership with National Scale
Local Market Leadership with National Scale Leading market positions serviced through local trade names • Maintains local trade names and existing management, strengthening the relationship between the Company and its customers • Business is primarily won or lost at the local level Local IBP trade n
Slide 9: Experienced and Focused Management Team
Experienced and Focused Management Team Strong operational focus and proven understanding of the industry • Field management structure is comprised of deeply experienced managers at all levels • Team has effectively managed through several housing cycles, established a proven acquisition strategy, a
Slide 10: Multiple Ways to Drive Growth and Profitability
Multiple Ways to Drive Growth and Profitability Capitalize on New Home Construction Market Recovery – Total housing starts forecasted to increase at 19% CAGR from 2013 to 2015E 1 Pursue Value Enhancing Strategic Acquisitions – Attractive opportunities in fragmented market of independent contractors
Slide 11: US Housing Improving From Cyclical Lows
US Housing Improving From Cyclical Lows Total US housing starts forecasted to increase at a 19% CAGR from 2013 to 2015E • Approximately 80% of net revenue directly tied to US residential new construction • Strong competitive and geographic positions 2,500 2,068 1,956 2,000 1,848 1,801 Average Histor
Slide 12: Proven Ability to Drive Growth and Gain Market Share
Proven Ability to Drive Growth and Gain Market Share Track record of increasing net revenue per US completion every year since 2005 Net Revenue / US Completions ($/US Completions) • Second largest insulation installer for residential new $600 $565 construction in the US • Our service area covers 55%
Slide 13: Demonstrated Track Record of Successful Acquisitions
Demonstrated Track Record of Successful Acquisitions 90+ successfully integrated acquisitions • Key components of the acquisition strategy include: – Ability to realize synergies within scalable infrastructure – Targeting profitable markets – Acquiring operations with strong reputation and customer
Slide 14: Clear Strategy for Value Enhancing Acquisitions
Clear Strategy for Value Enhancing Acquisitions Fragmented industry allows for geographic expansion through sizable acquisitions and strengthening of existing branches via smaller tuck-ins Proven Model for Acquisitions Key Areas of Opportunity Geographic expansion or existing market tuck-in Selectiv
Slide 15: Strong Top-Line Momentum
Strong Top-Line Momentum % growth 9.9% 4.2% (16.0%) (24.4%) (3.9%) 7.0% 26.3% 43.4% US Completions 1,979 1,503 1,120 794 652 585 649 765 % growth 2.5% (24.1%) (25.5%) (29.1%) (18.0%) (10.3%) 11.0% 17.9% Net Rev/Compl. $177 $243 $274 $292 $342 $408 $464 $ 565 % growth 7.3% 37.3% 12.8% 6.6% 17.1% 19.3
Slide 16: Improving Financial Performance
Improving Financial Performance Gross Profit Selling and Administrative1 $125 30.0% $125 50.0% $110 $100 $100 $91 40.0% 27.5% $74 $71 $75 $75 $64 30.0% $57 25.0% 25.4% 26.9% $50 $50 23.7% 20.0% 24.6% 21.1% 24.0% 22.5% $25 $25 10.0% $0 20.0% $0 0.0% 2011 2012 2013 2011 2012 2013 Adjusted EBITDA2 Work
Slide 17: Financial Results
Financial Results ($ in millions) 2011 2012 2013 Completions (000's) 585 649 765 Net Revenue $238 $301 $432 % Growth 7.0% 26.3% 43.4% Net Revenue/US Completions $408 $464 $565 COGS 181 227 322 % of Net Revenue 76.0% 75.4% 74.6% Gross Profit 57 74 110 % Margin 24.0% 24.6% 25.4% 1 Selling and Administ
Slide 18: Appendix
Appendix
Slide 19: EBITDA and adjusted EBITDA Reconciliation
EBITDA and adjusted EBITDA Reconciliation ($ in millions) 2011 2012 2013 Net (loss) income ($9.0) ($1.9) $6.4 Interest expense 7.0 1 2.0 2.3 2 Provision for income taxes 1.4 0.6 4.2 Depreciation and amortization 9.1 7.9 11.6 EBITDA $8.5 $8.5 $24.1 3 Gain on extinguishment of debt (18.5) -- -- 4 Reca
Slide 20: IBP Management
IBP Management Jeffrey Edwards • Joined the Company in 1995 Chairman, President & • Over 25 years of experience in the building supply and homebuilding industry CEO Michael Miller • Joined the Company in 2000 Executive VP & • Previously served as Senior Vice President/Managing Director responsible f
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