Installed Building Products, Inc. · NYSE:IBP
Installed Building Products — Q3 2015 Earnings Presentation
21 slides from Installed Building Products's earnings presentation, Oct 28, 2015
Slide 1: Investor Presentation Q3 2015 Results
INVESTOR PRESENTATION Q3 2015 RESULTS OCTOBER 28, 2015
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” as defined under U.S. federal securities laws. Forward-looking statements are generally identified by the use of the words “will,” “may,” “believes,” “expects,” “forecasts,” “intends,” “anticipates,” “projects,” “plans” and “seeks,”
Slide 3: Business Overview
BUSINESS OVERVIEW
Slide 4: Local Presence on a National Scale
Local Presence on a National Scale The second largest1 new residential insulation installer in the US with over 125 locations serving all 48 continental states and the District of Columbia Note: Shaded states are where we have a physical presence. Some dots represent multiple locations. • IBP Branch
Slide 5: Products & End Markets
Products & End Markets Insulation Garage Doors NET REVENUE NET REVENUE BY PRODUCT BY END Q3-2015 MARKET Shelving & Mirrors Q3-2015 Shower Doors, Rain Gutters INSULATION 78% NEW SINGLE-FAMILY 76% GARAGE DOORS 6% COMMERCIAL 11% SHOWER DOORS, SHELVING & MIRRORS 5% REPAIR & REMODEL 7% Other RAIN GUTTERS
Slide 6: 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 INSULATION VALUE CHAIN Building Products Manufacturer Insulation Manufacturer TYPICAL VALUE CHAIN Distributor Wholesaler or Retailer Purchasing / Logistics / I
Slide 7: Multiple Ways to Drive Growth and Profitability
Multiple Ways to Drive Growth and Profitability Asset lite model can accommodate growth without significant capital needs Capitalize on New Home Total US Housing Starts forecasted to increase at 13% CAGR from 2014 to Construction Market 2016E1 Recovery Continue to Strengthen IBP same branch single-f
Slide 8: Track Record of Successful Acquisitions
Track Record of Successful Acquisitions 100+ successfully integrated acquisitions Key components of the 54 acquisition strategy include: • Ability to realize synergies within scalable infrastructure • Targeting profitable markets • Acquiring operations with strong reputation and customer base 21 23
Slide 9: Industry Highlights
INDUSTRY HIGHLIGHTS
Slide 10: 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 Value to suppliers: Value to customers: • Strong relationships with the largest • Full service capabilities eliminate “nuisance” manufacturers work for customers •
Slide 11: Housing Market History
Housing Market History Continued US Housing Improvement Market Trend Total US housing starts forecasted to Lag time between US housing starts and increase at a 13% CAGR from 2014 to 2016E US housing completions is greater when the rate of change in starts is • Approximately 75% of IBP net revenue de
Slide 12: Proven Ability to Grow and Gain Market Share
Proven Ability to Grow and Gain Market Share Track record of increasing net revenue per US housing completion since 2005 IBP NET REVENUE / US HOUSING COMPLETIONS Second largest insulation installer for ($/US Completions) residential new construction in the US $800 $700 We estimate that the markets w
Slide 13: Financial Performance
FINANCIAL PERFORMANCE
Slide 14: Strong Top-Line Momentum
Strong Top-Line Momentum $700 2011 to 2014: 29.5% CAGR $616 $600 $518 IBP Net Revenue $500 $432 (in millions) $350 $365 $400 $307 $301 $300 $232 $223 $238 $200 $100 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM 9/15 Revenue Growth 9.9% 4.2% -16.0% -24.4% -3.9% 7.0% 26.3% 43.4% 19.9% 25.3% Tota
Slide 15: Summary Financial Results
Summary Financial Results (in millions) 2011 2012 2013 2014 Q3 2014 Q3 2015 US Housing Completions 585 649 764 884 247 272 (000's) Net Revenue $ 238 $ 301 $ 432 $ 518 $ 140 $ 182 % Net Revenue Growth 7.0% 26.3% 43.4% 19.9% 21.1% 29.3% Same Branch Sales Growth 7.0% 20.5% 29.6% 16.4% 17.7% 8.4% Net Re
Slide 16: Improving Financial Performance
Improving Financial Performance Administrative 2 Adjusted Gross $175 $175 40.0% $140 $127 50.0% $142 $120 $110 $150 Selling & (% of net revenue) 40.0% (% of net revenues) Profit1 35.0% $100 $91 $125 $110 (in millions) (in millions) $80 $64 $71 30.0% $100 $74 30.0% $75 $57 $60 20.0% 26.9% 23.7% 21.1%
Slide 17: Strong Balance Sheet
Strong Balance Sheet ($ in millions) 2011 2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 Cash $ 2.5 $ 3.9 $ 4.1 $ 10.8 $ 6.3 $ 5.6 $ 5.3 Revolver 16.7 17.2 27.3 - 30.1 - - Term Loan Due April 30, 2020 - - - - - 49.4 48.8 Delayed Draw Term Loan - - - - - 15.0 35.0 Previous Term Loan - - - 24.7 24.4 - - Vehic
Slide 18: Q3 2015 Performance
Q3 2015 Performance Adjusted EBITDA1 29.3% Growth 53.9% Growth Net Revenue $200 $181.6 $30 $160 $140.5 $25 $22.4 (in millions) $20 (in millions) $120 $14.6 $15 $80 $10 $40 $5 $0 $0 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Strong Q3 performance attributable to growth in same branch single family sales of 8.9%
Slide 19: Appendix
APPENDIX
Slide 20: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation LTM LTM LTM (in millions) 2011 2012 2013 2014 3/15 6/15 9/15 Net (loss) income $ (9.0) $ (1.9) $ 6.0 $ 13.9 $ 14.8 $ 19.0 $ 22.3 1 Interest expense 7.0 2.0 2.3 3.2 3.3 3.6 3.6 2 Provision for income taxes 1.4 0.6 4.2 8.6 9.3 11.5 12.8 Depreciation and amorti
Slide 21: EBITDA and Adjusted EBITDA Reconciliation Notes
EBITDA and Adjusted EBITDA Reconciliation Notes 1 Consists of interest expense of $3.7 on debt and related-party interest of $3.3. The related-party interest was forgiven in connection with the Recapitalization 2 Excludes income taxes related to discontinued operations 3 Represents the gain recorded
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