NYSE:BLD. Company Overview

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1 NYSE:BLD Company Overview Third Quarter 2016

2 Safe Harbor Statements contained in this presentation that are not historical and reflect our views about future periods and events, including our future performance, constitute forward-looking statements under the Private Securities Litigation Reform Act of Forward-looking statements can be identified by words such as will, would, anticipate, expect, believe, plan, hope, estimates, suggests, has the potential to, should or intend, and other words and phrases of similar meanings, the negative of these terms, and similar references to future periods. Forward-looking statements are based on management s current expectations and are subject to risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our future performance may be affected by our reliance on residential new construction, residential repair/remodel, and commercial construction; our reliance on third-party suppliers and manufacturers; our ability to attract, develop and retain talented personnel and our sales and labor force; our ability to maintain consistent practices across our locations; our ability to maintain our competitive position; and our ability to realize the expected benefits of the Separation. We discuss the material risks we face under the caption entitled Risk Factors in our most recent Annual Report on Form 10-K filed with the SEC and under similar headings in our subsequently filed Quarterly Reports on Forms 10-Q. Our forward-looking statements in this presentation speak only as of the date of this presentation. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise. 2

3 About TopBuild We are the largest purchaser, installer and distributor of insulation in the United States. 3

4 History Prior to Highly acquisitive; assembled critical mass Lowered breakeven point from 1.3M housing starts to 750k Completed ERP system, scalable and driving efficiencies Optimized national footprint Streamlined labor force Focused product offering Established operating model driving agility Diversified business mix Leverage unrivaled national scale Expansion Rationalization Positioning for growth 4

5 History Spun off from Masco June 30, 2015 Advantages Faster decision making More proactive within competitive environment Enhanced customer service, local empowerment Streamlined internal functions and processes Dedicated Board of Directors Experienced, cycle-tested management team 5

6 Solid Foundation Residential and commercial installation Over 175 branches Recognized local brands Distributor of insulation and select building products Over 70 distribution centers One stop shop Applying the principles of building science to new home construction 6

7 Critical Component of Insulation Supply Chain Primary manufacturers of fiberglass insulation Insulation Manufacturers #1 in residential installation 35% share of new housing starts Builder & Contractors Residential new construction is highly fragmented Over 50,000 home builders in the US 50% of housing starts are covered by large national and regional builders 7

8 Capitalizing on the Power of Two National footprint, local-brand appeal Consistency and reliability valued by customers Strong value proposition and relationships with local contractors and other customers Small Contractors, Lumber Yards, Retail 50,000+ Builders and General Contractors We reach customers regardless of size or geographic location. 8

9 TruTeam Growth Drivers Residential new construction and repair and remodel Commercial construction Stricter energy codes Competitive Advantages Strong relationships with manufacturers Strong local presence and brands Reliable and consistent service Building science expertise 9

10 TruTeam Product Mix FIREPROOFING/ STOPPING FIREPLACES OTHER GARAGE DOORS AFTER PAINT GUTTERS INSULATION 73% As a % of 2015 TruTeam revenue 10

11 TruTeam Residential Customer Base Multi- Family 12% Regional 23% Custom Builders 38% Big Builders 27% As a % of 2015 TruTeam revenue 11

12 Service Partners Growth Drivers Residential new construction and repair and remodel Stricter energy codes Helping contractors grow their business Competitive Advantages One stop shop for delivery and service Unrivaled national scale Credit availability Strong relationships with manufacturers 12

13 Service Partners ROOFING Product Mix OTHER GUTTERS ACCESSORIES Insulation 67 % As a % of 2015 Service Partners revenue 13

14 Service Partners Customer Base Gypsum Supply Dealers 5% Manufactured Housing 3% Other 1% Lumberyards 8% Contractors 83% As a % of 2015 Service Partners revenue 14

15 1 Multiple Avenues to Grow 2 Increase residential market share 1 Leverage growth in residential construction 3 Expand commercial share 4 Capitalize on stricter energy efficient codes 15

16 1. Leverage Growth in Residential Construction 1,500 Housing Starts (Millions of Units) 1,300 1, Year Average Growth Potential Year Average 500 Housing starts well below historical average 16

17 1. Leverage Growth in Residential Construction Largest network in U.S. Cover 99 of top 100 MSAs Can serve 95% of all housing starts 17

18 2. Increase Residential Market Share National footprint, local-brand appeal Consistency and reliability valued by customers Strong value proposition and relationships with local contractors and other customers Small Contractors, Lumber Yards, Retail 50,000+ Builders and General Contractors Capitalizing on the power of two 18

19 3. Expand Commercial Share Dedicated team to identify and bid projects Margins > residential new construction Greater barriers to entry We are a large player in $4B highly fragmented industry 19

20 3. Expand Commercial Share Light Commercial Large Project Commercial Larger footprint projects that crossover in application between light and heavy commercial Typical $50K - $200K Retail, Small Office, Hotel, Education, < 3 Stories Typical $2K - $50K Heavy Commercial Hospitals, Universities, Institutional, Stadiums/Arenas, High Rises > 3 Stories Typical: $200K + 20

21 3. Expand Commercial Share Light Commercial Large Project Thermal & Sound Batts Heavy Commercial Spray Foam Horizontal Thermal Insulation / Expand MBI presence with SP Air/Vapor Barrier Slab Edge Firestop Spray Fireproofing Simple Complex Top Wall Firestop Expansion Joints 21

22 22 4. Capitalize on Stricter Energy Efficient Codes

23 4. Capitalize on Stricter Energy Efficient Codes Applying the principles of building science to new home construction Customer Value Proposition Pre-construction plan reviews Home energy analysis software Diagnostic testing Benefits to TopBuild More stringent energy codes require more and higher rated Insulation Another important channel to interact with customer Leveraging our expertise to grow market share 23

24 Employer of Choice For Installers: Full range of benefits Strong focus on safety 6-8 weeks paid training period $42K-$45K average annual salary 66% paid on piece rate Clear career path For Customers: Highly trained installers Background checks Work eligibility verified 24

25 25 Financials

26 TopBuild Financial Model Multiple Growth Opportunities Strong Earnings Limited Investment to Support Growth Strong Cash Generation Balance Sheet Organic Growth Strategic Acquisitions Return of Capital Great Financial Flexibility 26

27 Strong Balance Sheet Total Debt to Adj. EBITDA* 1.32X Conservative Net Leverage Long-term debt $185.0 Less: Cash (104.5) Total net debt $ 80.5 Adj. EBITDA (LTM) $140.5 *at 9/30/16 27

28 Balanced Capital Allocation Plan M&A Accretive/Strategic Acquisitions Residential new construction Commercial Return of Capital $50M Share Repurchase Program 28

29 Third Quarter 2016 ($ in 000s) Sales Y-O-Y Change Gross Profit Margin Y-O-Y Change Adjusted Operating Profit Margin Y-O-Y Change Adjusted Net Income per Share Y-O-Y Change CAPEX % of Sales $453, % 23.9% 190 bps 8.7% 140 bps $ % $10, % Working Capital % to sales (LTM) 8.9% Cash Balance $104,497 Total Liquidity $180,417 29

30 Third Quarter 2016 ($ in 000s) Sales Y-O-Y Change Adjusted Operating Profit Y-O-Y Change Adjusted Operating Margin Y-O-Y Change $300, % $32, % 10.8% 300 bps $174, % $15,536 (8.1%) 8.9% (100 bps) 30

31 Guidance Assumptions Minimum 20% long-term incremental EBITDA margins 38% effective tax rate YE working capital 6.5% revenue Capex < 1% of revenue Residential: RNC: 50K housing starts = $45M incremental revenue R&R: GDP + 1-2% Commercial 12% CAGR

32 TopBuild Key Strengths Unrivaled national scale Established business platform Strong local relationships Cycle-tested management team Buying power with manufacturers Robust balance sheet Multiple avenues to grow 32

33 TopBuild Key Initiatives Leverage growth in new home construction Expand market share, residential and commercial Capitalize on stricter energy efficient codes Continue streamlining and simplifying business Deliver value for our shareholders 33