Slide 1: Second Quarter 2019 Earnings Presentation
Second Quarter 2019 Earnings Presentation August 2, 2019
Slide 2: Safe Harbor & Non-GAAP Financial Measures
Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this news release 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 s
Slide 3: Differentiated market leader positioned for ongoing growth and expanding profitability
Differentiated market leader positioned for ongoing growth and expanding profitability Leadership in a highly fragmented industry Exceptional geographic, customer and end market diversity Investment in value-added capacity driving market share gains and margin expansion Ongoing favorable housing mar
Slide 4: H1 2019 Update
H1 2019 Update H1 2019 Highlights H1 2019 Key Figures Estimated sales volume growth of 4%, well above the market, further demonstrating the resilience of our platform Solid Growth across all three customer end-markets and our non- commodity related product categories Net $3.5b Growth Sales A decline
Slide 5: Q2 2019 Financial Highlights
Q2 2019 Financial Highlights Sales volume: +2% led by above market growth in the single family homebuilding end market Net sales and multi-family partially offset by a decline in R&R / Other $1.9b Value-added products: +5% excluding deflation -8.9% Commodity prices: deflation impacted sales -11% ref
Slide 6: Q2 2019 Net Sales by Product Category
Q2 2019 Net Sales by Product Category Q2 2019 sales by product category ($ in millions) Lumber & Lumber Manufactured Window, Doors & Gypsum, Roofing & Siding, Metal & Sheet Goods Products Millwork Insulation Concrete $811.2 $657.0 $601.5 $370.9 $374.3 $359.5 $375.5 $391.0 $312.5 $178.2 $189.5 $191.3
Slide 7: Q2 2019 Net Sales by End Market
Q2 2019 Net Sales by End Market Net sales bridge ($ in millions) Q2 2018 Q2 2019 Deflation Sales mix by end market (% of total) Repair & Remodel / Single family: +3.8% per day, outperforming a down single- Other family starts market 22% R&R / Other: -2.2% per day largely due to lower demand in the M
Slide 8: Free cash flow and capital allocation priorities
Free cash flow and capital allocation priorities Strong financial underpinnings… …allow BLDR to invest in value creation Fund capital expenditures at ~1.5% of sales and Strong EBITDA generation capture value-added growth opportunities Strong free cash flow of $180-210m after capital Relatively low c
Slide 9: Powerful Combination of Network Scale and Regional Density
Powerful Combination of Network Scale and Regional Density National footprint and unmatched scale Local management and regional density Optimize utilization, inventory & equipment between locations Strategically placed manufacturing and distribution centers allow for speed and reliability Mini
Slide 10: Initiatives on track, driving meaningful value creation
Initiatives on track, driving meaningful value creation ~EBITDA Category Financial Targets contribution H1 sales volume ~$130-160m > 50% increase in Adjusted Core Business Growth growth of 4% -- well above market EBITDA as compared to FY2018 (~$750m) Value-Added Product Value-added > $3.00 - $3.50 A
Slide 11: Q2 2019 Recap & Outlook
Q2 2019 Recap & Outlook Q2 / H1 Highlights Market Outlook Q2 2019: Total sales volume grew more than 2% led by above market Builders continue to pivot to home formats and growth in the single family segment price points that are in demand Family Single Growth in single-family and multi-family partia
Slide 12: Appendix – Financial Schedules
Appendix – Financial Schedules www.bldr.com
Slide 13: Reconciliation from Net Income to Adjusted EBITDA
Reconciliation from Net Income to Adjusted EBITDA Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 TTM ($ millions) Net sales $ 1,700.4 $ 2,089.9 $ 2,118.5 $ 1,816.0 $ 7,724.8 $ 1,631.3 $ 1,904.5 $ 7,470.3 Gross margin 411.1 496.3 522.8 492.8 1,922.9 442.0 517.2 1,974.7 Gross margin % 24.2% 23.7% 24.7% 27.
Slide 14: Reconciliation from Net Income to Adjusted EBITDA
Reconciliation from Net Income to Adjusted EBITDA Three months ended Six months ended June 30, June 30, ($ millions) 2019 2018 2019 2018 Reconciliation to Adjusted EBITDA: Reported GAAP Net Income $ 66.6 $ 56.6 $ 102.3 $ 79.8 Integration related expenses 3.2 6.0 8.0 10.4 Debt issuance and refinancin
Slide 15: Interest Reconciliation and Debt Outstanding
Interest Reconciliation and Debt Outstanding Six months ended June 30, 2019 Net Debt Interest Expense Outstanding (in millions) 2027 Secured Notes @ 6.75% Fixed $ 2.4 $ 400.0 2024 Secured Notes @ 5.625% Fixed 9.0 578.9 2024 Term Loan @ 5.7% (Floating LIBOR) 5.0 157.1 Revolving Credit Facility @ 4.4%
Slide 16: GAAP Financial Schedules – Income Statement
GAAP Financial Schedules – Income Statement Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (Unaudited) (In thousands, except per share amounts) Sales $ 1,904,523 $ 2,089,888 $ 3,535,823 $ 3,790,324 Cost of sales 1,387,367 1,593,560 2,576,692 2,882,944 Gross margin 517,156
Slide 17: GAAP Financial Schedules – Balance Sheet
GAAP Financial Schedules – Balance Sheet June 30, December 31, 2019 2018 (Unaudited) (In thousands, except per share amounts) ASSETS Current assets: Cash and cash equivalents $ 10,552 $ 10,127 Accounts receivable, less allowances of $12,772 and $13,054 at June 30, 2019 and December 31, 2018, respect
Slide 18: GAAP Financial Schedules – Cash Flow
GAAP Financial Schedules – Cash Flow Six Months Ended June 30, 2019 2018 (Unaudited) (In thousands) Cash flows from operating activities: Net income $ 102,312 $ 79,842 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 47,390 47,587 Amortization
Slide 19: Investor Relations
Investor Relations Binit Sanghvi 214-765-3804 | binit.sanghvi@bldr.com www.bldr.com