Installed Building Products, Inc. · NYSE:IBP
Installed Building Products — Investor Presentation (2014)
20 slides from Installed Building Products's investor presentation, 2014
Slide 1: Investor Presentation YTD Q3 2014
Investor Presentation YTD Q3 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: Strong Geographical Footprint
Strong Geographical Footprint Strong presence in existing markets with a geographical footprint that provides services to all 48 continental states Investor Presentation - YTD Q3 2014 2
Slide 4: Products & End Markets
Products & End Markets Focused insulation installation offering, coupled with complementary products for end markets having significant cyclical upside Net Revenue by Product – LTM 9/14 Net Revenue by End Market – LTM 9/14 Other Building New Multi- Products Family Rain Gutters Repair & 5% 6% 6% Remo
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 Building Products Manufacturer Insulation Manufacturer Insulation Value Chain Typical Value Chain Distributor Wholesaler or Retailer Purchasing Logistics Contr
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 (2013)1 Closing (2013)2 D.R. Horton Lennar 3% 2% Pulte Group 2% Knauf NVR Owens Corning 2% CertainTeed Other
Slide 7: Investment Strengths
Investment Strengths Local market leadership with national scale Proven ability to gain market share Highly efficient and scalable operating model Proven acquisition track record Highly experienced and incentivized management team Investor Presentation - YTD Q3 2014 6
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: 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 ─ Total Housing Starts forecasted to Home Construction increase at 13% CAGR from 2013 to Market Recovery 2015E1 Continue to ─ Same branch single-family sales gr
Slide 10: Proven Ability to Gain Market Share
Proven Ability to Gain Market Share Continued US Housing Improvement Market Trend Total US housing starts forecasted to increase at a 13% Lag time between housing starts and completions is CAGR from 2013 to 2015E greater when the rate of change in starts is higher • Approximately 75% of net revenue
Slide 11: 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 12: 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 Select
Slide 13: Highly Experienced and Incentivized Management Team
Highly Experienced and Incentivized 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
Slide 14: Strong Top-Line Momentum
Strong Top-Line Momentum $500 IBP has increased its net revenue divided by total $492 U.S. housing completions by 250% since 2005 $400 $432 • Result of acquiring local installation operations, gaining market share organically, and cross-selling $365 complementary services $350 • YTD single family sa
Slide 15: Financial Results
Financial Results ($ in millions) 2011 2012 2013 YTD 9/2013 YTD 9/2014 Completions (000's) 585 649 765 546 645 Net Revenue $238 $301 $432 $313 $373 % Growth 7.0% 26.3% 43.4% 19.2% Net Revenue/US $408 $464 $565 $573 $578 Completions COGS 181 227 322 234 272 Gross Profit 57 74 110 78 101 % Margin 24.0
Slide 16: Improving Financial Performance
Improving Financial Performance Gross Profit Selling and Administrative1 $150 30.0% $125 50.0% $132 $104 $125 $110 $91 $100 40.0% (% of net revenue) 27.5% (in millions) $100 (% margin) $71 (in millions) $74 26.8% $75 $64 30.0% $75 25.0% $57 25.4% 26.9% $50 23.7% 20.0% $50 24.6% 21.1% 24.0% 21.1% 22.
Slide 17: Q3 2014 Performance
Q3 2014 Performance Net Revenue Adjusted EBITDA1 $160 14.0% $140.5 $140 $16 $14.6 12.0% $116.0 $120 10.0% (% margin) (in millions) (in millions) $12 10.4% $100 $8.6 8.0% $80 $8 7.4% 6.0% $60 4.0% $40 $4 $20 2.0% $0 $0 0.0% Q3 2013 Q3 2014 Q3 2013 Q3 2014 $ in millions % of net revenue • Strong Q3 pe
Slide 18: Appendix
Appendix
Slide 19: EBITDA and adjusted EBITDA Reconciliation
EBITDA and adjusted EBITDA Reconciliation ($ in millions) 2011 2012 2013 LTM 9/14 Net (loss) income ($9.0) ($1.9) $6.0 $11.3 Interest expense 7.01 2.0 2.3 2.8 Provision for income taxes2 1.4 0.6 4.2 7.0 Depreciation and amortization 9.1 7.9 11.6 14.1 EBITDA $8.5 $8.5 $24.1 $35.2 Gain on extinguishme
Slide 20: 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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