Slide 1: Q3 2021 Earnings Presentation
Q3 2021 Earnings Presentation November 4, 2021 Dave Flitman, CEO | Peter Jackson, CFO BLDR.com
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice • Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other
Slide 3: Highlights of Record Q3 2021 Results
Highlights of Record Q3 2021 Results Record Sales Performance Net sales $5.5b • Focused execution, core growth, and disciplined pricing drove record results +62.7% YoY • Strong demand for single family living remain tailwinds for our products and services (+16.1% Core Organic1) Operational Performan
Slide 4: Q3 2021 Core Organic
Q3 2021 Core Organic Net sales bridge2 (Q3 2021 compared to combined pro forma Q3 2020) ($M) Q3 2020 Non-Commodity Commodity Q3 2021 1,306 817 5,509 +16.1% Core Organic +8.0% Acquisitions 3,386 EBITDA highlights: Repair & Remodel / Other Core organic1 sales highlights: • Non commodity Adjusted 17% Q
Slide 5: Q3 2021 - Broad Strength Across Product Portfolio
Q3 2021 - Broad Strength Across Product Portfolio Net sales by product category (Q3 2021 compared to combined pro forma Q3 2020) ($M/ % change) Specialized Products: Lumber & Lumber Value-Added Products: Manufactured Window, Doors & Siding, Metal & Gypsum, Roofing & Sheet Goods: Products Millwork Co
Slide 6: Expect to Deliver 10%+ Adjusted EBITDA Margin on 2021E Base Business
Expect to Deliver 10%+ Adjusted EBITDA Margin on 2021E Base Business1 …The Majority of our EBITDA Growth is Driven by Value-Added Products Over 60% of BFS’s Base Business1 is Non-Commodity… and Sustainable Operations Improvement / Synergy Windows, Doors & Millwork Lumber & Lumber Sheet Goods Base bu
Slide 7: Continued M&A in 2021
Continued M&A in 2021 Recent Acquisitions Acquisition Annual Sales Date Rationale • Successfully completed value-enhancing 2017 2017 ▪ Provides technology enhancing workflow, construction acquisitions in 2021 20142014 FY21 budgeting and scheduling, and field task assignments N/A Q3 2013 2013 ▪ Align
Slide 8: Cal Truss Acquisition Strengthens West Coast Presence
Cal Truss Acquisition Strengthens West Coast Presence Transaction Announcement: September 2021 | Purchase Price: ~$179.5 Million A Well-Positioned Independent Component Manufacturer Cal Truss Acquisition Overview • At the time of the acquisition, the largest independent producer of value- California
Slide 9: Pursue Accretive Tuck-in M&A
Pursue Accretive Tuck-in M&A 500+ US Building Products Businesses Totaling ~$80B in Sales1 Mapped • Broaden product portfolio in target Geographic markets Scale • Deepen presence in existing service 13 areas by expanding product portfolios 6 • Enhance opportunities to partner with Value Add customer
Slide 10: Synergy Target One Year Ahead of Schedule
Synergy Target One Year Ahead of Schedule Estimated Cost Savings(1) Major Milestones ($ in millions) $140m to $160m Focus On Customers And Employees • Second Wave of ERP conversions initiated • Completed 24 ERP conversions successfully to date $90m to $110m Expect to realize savings of ~$100m Focus
Slide 11: Strong Balance Sheet and Liquidity Provide Financial Flexibility
Strong Balance Sheet and Liquidity Provide Financial Flexibility Pro Forma Net Leverage1 Improvement Balanced Capital Allocation Priorities 1. Maintain a strong balance sheet; July $1 billion debt offering at 4 ¼% 2. Reinvest in our business to drive growth and productivity 1.1x on Base Business 3.
Slide 12: Raised 2021 Outlook
Raised 2021 Outlook 2021 Full Year Financial Expectations Metrics Current Guidance Prior Guidance 2020 Pro Forma Baseline Sales1 (YoY Growth) $19.3 to $19.8 billion (+51% to +55%) $18.0 to $19.0 billion (+41% to +48%) $12.8 billion Adjusted EBITDA2 (YoY Growth) $2.85 to $2.95 billion (+166% to +176%
Slide 13: Differentiated Market Leader Positioned for Above Market Growth
Differentiated Market Leader Positioned for Above Market Growth and Expanding Profitability Leadership in a highly fragmented industry Exceptional geographic, customer, and end market diversity Strategic investment in value-added capacity, driving share gains and margin expansion Focus on maintainin
Slide 14: Question & Answer Session
Question A n swe r Session 14 | © 2021 Builders FirstSource. All Rights Reserved
Slide 15: Michael Neese, SVP, Investor Relations
Michael Neese SVP, Investor Relations Michael.Neese@bldr.com 214-765-3804 15 | © 2021 Builders FirstSource. All Rights Reserved. www.bldr.com
Slide 16: Base Business Sales and Adj. EBITDA projection by commodity price
Base Business 1 Sales and Adj. EBITDA projection by commodity price Illustrative FY 2021E Assumptions: AEBITDA • Provided a grid with various commodity cost assumptions and the corresponding profits if you assume static commodity prices. Sales ($Bn) ($Bn) Please keep in mind that shorter term price
Slide 17: Reconciliations: Condensed Consolidated Statement of Operations
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share amounts) 2021 2020 2021 2020 Net sales $ 5,508,590 $ 2,295,450 $ 15,259,047 $ 6,028,
Slide 18: Reconciliations: Condensed Consolidated Statement of Cash Flows
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) Nine Months Ended September 30, (in thousands) 2021 2020 Cash flows from operating activities: Net income $ 1,282,960 $ 173,623 Adjustments to reconcile net income to net cash provi
Slide 19: Reconciliations: Condensed Consolidated Balance Sheet
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) September 30, December 31, (in thousands, except per share amounts) 2021 2020 ASSETS Current assets: Cash and cash equivalents $ 224,735 $ 423,806 Accounts receivable, less allowances of $38,
Slide 20: Reconciliations: Adjusted Non-GAAP Financial Measures
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Reconciliation of Adjusted Non-GAAP Financial Measures to their GAAP Equivalents (unaudited) Three Months Ended Nine Months Ended Twelve Months Ended September 30, September 30, September 30, (in millions) 2021 2020 2021 2020 2021 Reconcili
Slide 21: Reconciliations: Financial Data
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Financial Data (unaudited) Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per share amounts) 2021 2020 2021 2020 Net sales $ 5,508.6 $ 2,295.5 $ 15,259.0 $ 6,028.1 Cost of sales 3,796.1 1,724.8 10,893.
Slide 22: Reconciliations: Interest Reconciliation
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Interest Reconciliation (unaudited) Three Months Ended Nine Months Ended September 30, 2021 September 30, 2021 Interest Net Debt Interest Net Debt (in millions) Expense Outstanding Expense Outstanding 2032 Unsecured notes @ 4.25% $ 8.1 $ 1,
Slide 23: Reconciliations: Sales by Product Category
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Sales by Product Category (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 % of % of % % of % of % (in millions) Net Sales Net Sales Net Sales Net Sales Change Net Sales Net Sales Net Sales Ne
Slide 24: Reconciliations: Combined Financial Data
Reconciliations BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Combined Financial Data (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in millions) (Pro Forma) (Pro Forma) Net sales $ 5,508.6 $ 3,385.8 $ 15,259.0 $ 9,019.2 Gross margin 1,712.5 844.2 4,3