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Cautionary Notice
Statements in this presentation which are not purely historical facts or which necessarily depend upon future events,
including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations,
hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are
cautioned not to place undue reliance on forward-looking statements. All forward-looking statements in this presentation
are based upon information available to Builders FirstSource, Inc. on the date of this presentation. Except as required by
law, Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and
uncertainties that could cause actual events or results to differ materially from the events or results described in the
forward-looking statements, including risks or uncertainties related to the Company’s revenues and operating results
being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy. Builders
FirstSource, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could
affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.’s most recent
Form 10-K filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this
presentation are qualified by the factors, risks and uncertainties contained therein
Use of Non-GAAP Financial Measures
This presentation includes financial measures and terms not calculated in accordance with accounting principles generally
accepted in the United States (“GAAP”) in order to provide investors with an alternative method for assessing our
operating results in a manner that enables investors to more thoroughly evaluate our current performance as compared to
past performance. We believe these non-GAAP measures provide investors with a better baseline for modeling our future
earnings expectations. Our management uses these non-GAAP measures for the same purpose. We believe that our
investors should have access to the same set of tools that we use in analyzing our results. These non-GAAP measures
should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute
for or superior to GAAP results. Our calculations of non-GAAP measures are not necessarily comparable to similarly
titled measures reported by other companies. Schedules that reconcile non-GAAP financial
measures to their GAAP equivalents are included later in this presentation.
Safe Harbor & Non-GAAP Financial Measures
2
Contents
Section 1 Company Overview 3
Section 2 Industry Update 9
Section 3 Investment Highlights 13
Section 4 Financial Overview 19
Section 5 Reconciliation of Non-GAAP Financial Measures 27
Company Overview
4
Prefabricated ComponentsLumber & Lumber Sheet Other Products & Services
 Products include
dimensional lumber,
plywood and oriented
strand board (“OSB”)
 Factory-built substitutes
for job side-framing
including floor trusses,
roof trusses, wall
panels, stairs, and
engineered wood
 Cabinets, gypsum,
roofing and insulation.
Services include turn-
key framing, shell
construction, design
assistance, and
installation
Windows & Doors Millwork
 Manufacturing,
assembly and
distribution of
aluminum and vinyl
windows
 Assembly and
distribution of interior
and exterior door units
 Distribution of interior
trim, exterior trim,
columns and posts.
Manufacturing of custom
exterior features under
the Synboard™
brand name
 Third largest building products provider1 operating in the estimated $129.2 billion single family residential
home construction market2
 The Company is a fully-integrated supplier, manufacturer and installer of structural and related building
products
Company Overview
Notes:
1 According to ProSales Magazine among those with manufacturing capabilities, based on 2011 revenues
2 2012 National Association of Home Builder (“NAHB”)
5
Revenue Distribution
 Approximately half of BFS sales are from value added product categories — Prefabricated
Components, Millwork and Windows & Doors
 Over 20% of sales are related to our installation services
Fiscal Year 2012 March YTD 2013
6
 Top 10 customers represented approximately 23% of total sales, with no one customer
exceeding 5% for FY 2012
 Customer mix consists of large national homebuilders, regional homebuilders and local
builders
 Approximately 15% of sales are related to light commercial and multi-family construction
Our Customers
7
BFS has operations in 33 markets in 9 states primarily in the southern and eastern
regions of the United States
 BFS is in 16 of the nation’s
top 50 Metropolitan Statistical
Areas (as ranked by single
family housing permits)
 Approximately 45% of 2012
U.S. housing permits were
issued in states in which BFS
operates
 53 distribution centers and 44
manufacturing facilities, some
of which are co-located
Geographic Footprint
North East
Emmitsburg
Frederick
Port of Rocks
Hagerstown
Manassas
Culpeper
Washington
Hillsborough
High Point
Bristol
Piney FlatsKingsport
Johnson City
Knoxville Asheville
Hendersonville
BrevardCashiers
Blairsville
Gainsville
Atlanta
LaGrange
Columbus
CherryPoint
Edisto Island
Johns Island
Charleston
Pawleys Island
Columbia
Sumter
Goose Creek
Conway
Loris
Florence
Anderson
Seneca
Greenville
Spartanburg
Cowpens
Charlotte
Aberdeen
Fayetteville
Southport
WilmingtonWilmington
Nashville
Chelsea
Shelby
Auburn
Jacksonville
Freeport
Tampa
Bunnell
Orlando
West Palm Beach
Dallas Headquarters
Lewisville
Arlington
Grand Prairie
Houston
San Antonio
Austin
Apex
Clarksville
8
Strong Market Position
BFS is the third largest building products provider in an estimated
$129.2 billion single family residential construction market1
Building Products Suppliers with Manufacturing Capabilities
Note:
1 2012 NAHB
Pro Distributor % Change
ProBuild Holdings $2,838 $3,045 -6.8%
84 Lumber 1,278 1,378 -7.2%
Builders FirstSource 779 700 11.3%
Stock Building Supply 735 818 -10.1%
BMC 631 570 10.7%
Carter Lumber 557 535 4.2%
US LBM 429 270 59.3%
Harvey Building Products 400 n/m n/m
McCoy’s Building Supply 380 377 0.6%
Golden State Lumber 213 212 0.4%
Source: ProSales Magazine, 2011 & 2010
2011 Pro Segment
Sales ($mm)
2010 Pro Segment
Sales ($mm)
Industry Update
10
 Recent downturn in residential new construction market is without precedent since World War II
 Since 2008, housing starts have been well below the long term trend of 1.5 million total starts and
1.1 million single family starts.
Overbuild/Underbuild
New Construction Market Trends
11
 The residential new construction market has experienced a substantial downturn in recent
years as a result of the recession
 The downturn resulted in the largest decline in housing starts since the Great Depression
falling by 73% from the 2005 peak to the current trough
 Building products sales have had a corresponding decline
 Trends that will drive a recovery in U.S. housing demand include:
 Low interest rates, the aging of housing stock, and population growth due to
immigration and birthrates exceeding death rates
 The National Association of Home Builders (“NAHB”) is predicting that 2013 U.S.
single family housing starts will grow approximately 24% from 2012, with
approximately 664,000 single family housing starts predicted
 NAHB predicts single family housing starts will increase to 855,000 in 2014,
representing a 29% increase over the 2013 forecast
The Macro Environment
BFS is well positioned to take advantage of anticipated renewed demand
12
Commodity Price Trends
Commodity prices have steadily increased since the beginning of the 2012. Higher commodity prices
will typically result in increased gross profit dollars and improved EBITDA flow through.
Investment Highlights
14
Strategic Growth Plan
Management plans to capitalize on the housing market recovery and continue to
focus on profitable, disciplined growth and free cash flow generation
Maximize share of wallet
with customers and
within markets
Leverage our strategic
vendor relationships
Leverage our scalable
cost structure
Selectively pursue
organic expansion and
strategic acquisitions
 Grow sales
to production
homebuilders as they
continue to gain
market share
 Prudently expand
presence in the custom
homebuilder base
 Selectively pursue
opportunities to grow
our multi-family and
light commercial
business
 Preferred channel
partner with strong
financial position
 Relative size and
homebuilder
relationships provide
our vendors access to a
large customer base
with significant
purchasing power
 Standardized process
and technology-based
workflows
 Streamline operations
and enhance working
capital efficiency
 Through the downturn,
realized permanent cost
savings
 No single Pro Segment
supplier accounts for
more than 2% of the
market
 Opportunistic bolt-on
acquisitions could be
highly accretive to the
business
 History of successfully
entering new markets
through greenfield
expansion
15
Fully Integrated Distribution Platform
BFS has an integrated business model that differentiates it from
competitors that operate with a decentralized collection of facilities
 Network of 53 distribution centers and 44 manufacturing facilities, some which are co-
located
 Size of facilities tailored to each market to meet customer needs
 Offering large-scale, full-service branches in larger markets and smaller, more tailored
facilities in secondary markets
 Highly customized, proprietary information technology system drives internal efficiencies
allowing the Company to respond rapidly to customers and reduce their costs
 BFS operates and owns the source code to its enterprise resource planning (“ERP”)
computer system that is tailored to the building supply industry in addition to laser
technology that facilitates precision, speed and efficiency in the manufacturing process
16
 Due to the breadth of its product offering (65,000 SKUs), BFS functions as a “one-stop shop”
 Homebuilders value the convenience and efficiency of using one supplier throughout building process
 BFS provides customers with a full range of services including professional installation, turn-key
framing and shell construction and design
 BFS’s salespeople are typically trained homebuilders who understand the challenges that might be
encountered at the job site
 Just-in-time delivery of just the right amount of product
 Value-added advice and consultation on engineering, building codes and other building matters
BFS acts as both a supplier and advisor to the homebuilding customer
Supplier to
Homebuilders
Trusted Consultant
Full Offering of Manufactured Products and
Construction Services
17 17
Experienced Management Team
Lou Davis
Vice President – Manufacturing
Morris E. Tolly
Senior Vice President – Operations
Floyd F. Sherman
President and CEO
Chad Crow
Senior Vice President and CFO
 13 years of industry experience
 Prior experience: Director of Accounting at Pier One Imports and five
years experience with PriceWaterhouse
 Over 40 years of industry experience
 Prior experience: Area Manager at Pelican Companies, Inc.
 Over 40 years of industry experience
 Prior experience: Chairman & CEO of Triangle Pacific / Armstrong
Flooring
Area VPs
 Over 40 years of industry experience
 Prior experience: Manufacturing management positions with Wickes, Inc.,
Fabricon, Inc., National Homes Corp
 Average BFS tenure of 20 years
Donald F. McAleenan
Senior VP and General Counsel
 20 years of industry experience
 Prior experience: VP & Deputy General Counsel of Fibreboard, Asst
General Counsel of AT&E, nine years as a securities lawyer
18
Summary
Experienced
Management
Team
Sustained
investment
through the cycle
Fully-integrated
industry-leading
IT system
Comprehensive
value-added
approach to
customer service
Market
Leadership in
Attractive
Fragmented
Markets
Differentiating factors that will enhance BFS’s ability to take advantage of housing
recovery
Financial Overview
20
Review of 2012 Operating Results
 Sales for 2012 were 37.4% higher than 2011 primarily driven by volume, and to a lesser extent,
commodity price inflation
 U.S. single family housing starts (South region) were up only 23.1% over the same period
 U.S. single family units under construction (South region) were up only 7.7% over the same
period
 Combination of these data points, indicate market share gains
 Gross margin decreased slightly from 20.3% in 2011 to 20.0% in 2012. Increased sales volume was
offset by intra-quarter commodity lumber price inflation relative to quarterly customer pricing
commitments. Higher than expected sales volume resulted in us replacing inventory during the latter
half of the quarters at higher costs.
 Selling, general, and administrative expenses have been monitored closely by management and as a
percentage of sales decreased from 24.2% in 2011 to 20.4% in 2012 (excluding stock compensation
expense)
 FY 2012 Adjusted EBITDA improved $21.4 million – $6.4 million compared to ($15.0) million in
2011
21
 After declines in 2007-2009, revenues stabilized in 2010 then grew 11% in 2011 and 37% in 2012
 Historical margins demonstrate the potential for expansion from current margins as the business
builds toward historical scale and leverages a leaner cost structure
 Proven ability to conserve capital through tight working capital management and reduced capital
spending
Summary Financial Performance
$mm except Sales per SF Start 2005 2006 2007 2008 2009 2010 2011 2012
South Region Single Family Housing Starts1
831,300 756,500 539,500 323,600 232,100 247,200 229,200 282,100
South region sales per SF start $2,572 $2,728 $2,722 $3,066 $2,921 $2,833 $3,399 $3,795
U.S. Single Family Housing Starts1
1,715,800 1,465,300 1,046,100 622,000 445,000 471,100 430,500 534,600
U.S. sales per SF start $1,246 $1,408 $1,404 $1,595 $1,523 $1,487 $1,810 $2,003
Total Revenue $2,138.1 $2,063.5 $1,468.4 $992.0 $677.9 $700.3 $779.1 $1,070.7
% growth -3.5% -28.8% -32.4% -31.7% 3.3% 11.2% 37.4%
Gross Profit $543.4 $544.8 $363.2 $215.5 $142.4 $131.8 $157.9 $214.6
% margin 25.4% 26.4% 24.7% 21.7% 21.0% 18.8% 20.3% 20.0%
Operating Expenses2
$388.6 $401.5 $341.9 $280.0 $201.4 $194.1 $193.0 $222.3
% revenue 18.2% 19.5% 23.3% 28.2% 29.7% 27.7% 24.8% 20.8%
Adjusted EBITDA3
$172.7 $169.9 $53.2 ($32.4) ($35.1) ($43.6) ($15.0) $6.4
% margin 8.1% 8.2% 3.6% -3.3% -5.2% -6.2% -1.9% 0.6%
Capex4
$29.7 $27.2 $10.1 $8.2 $2.1 $9.0 $4.8 $10.4
% revenue 1.4% 1.3% 0.7% 0.8% 0.3% 1.3% 0.6% 1.0%
Net Working Capital as % of Revenue5
10.0% 10.4% 11.6% 12.2% 10.2% 9.3% 10.0% 10.0%
Notes:
1 Source: U.S. Census
2 2005 operating expenses adjusted to exclude $35.5mmanti-dilution payment to stock option holders
3 See Adjusted EBITDA reconciliation on page 28
4 2005 and 2006 capexincludes expansion expenditures.
5 Calculated as monthly average of net working capital divided by total annual revenue
Fiscal Year
22
Recent Quarterly Performance
 Recent quarterly performance demonstrates strong revenue trends with six
consecutive quarters of revenue growth greater than 30%
Q2 Q3 Q4 2012 2012 2012 2012 2013
$mm except Sales per SF Start 2011 2011 2011 Q1 Q2 Q3 Q4 Q1
South Region Single Family Housing Starts1
63,800 61,700 51,600 62,000 77,200 78,100 65,300 79,000
South region sales per SF start $3,235 $3,520 $3,734 $3,539 $3,522 $3,736 $4,404 $4,047
U.S. Single Family Housing Starts1
123,400 117,700 99,900 105,500 151,100 150,100 128,600 135,200
U.S. sales per SF start $1,673 $1,845 $1,929 $2,080 $1,799 $1,944 $2,236 $2,365
Total Revenue $206.4 $217.2 $192.7 $219.4 $271.9 $291.8 $287.6 $319.7
% growth y-o-y -2.4% 20.4% 31.0% 34.7% 31.7% 34.3% 49.2% 34.7%
Gross Profit $42.8 $44.4 $39.3 $45.1 $53.7 $57.7 $58.1 $62.3
% margin 20.7% 20.4% 20.4% 20.6% 19.7% 19.8% 20.2% 19.5%
Operating Expenses $49.0 $50.2 $47.1 $50.8 $55.0 $58.7 $57.8 $61.1
% revenue 23.7% 23.1% 24.4% 23.2% 20.2% 20.1% 20.1% 19.1%
Adjusted EBITDA2
($1.3) ($0.7) ($3.3) ($2.1) $2.1 $3.0 $3.4 $5.4
% margin -0.6% -0.3% -1.7% -1.0% 0.8% 1.0% 1.2% 1.7%
Capex $1.1 $1.1 $2.1 $1.7 $2.3 $5.2 $1.2 $1.0
% revenue 0.5% 0.5% 1.1% 0.8% 0.8% 1.8% 0.4% 0.3%
Notes:
1 Source: U.S. Census
2 See Quarterly Adjusted EBITDA reconciliation on page 29
23
Market Share Gains
 Consistent growth in sales per single-family housing start indicates market share
gains
24
Sales & Adjusted EBITDA Trends
 Consistent sales and adjusted EBITDA growth
 Six straight quarters of y/o/y sales growth greater than 30%
 Nine straight quarters of y/o/y adjusted EBITDA improvement
25
March YTD 2013 Update
 Sales for Q1 2013 were $319.7 million, a 45.7% increase over sales of $219.4 million for Q1 2012
 Sales growth estimated to be driven by volume (29.7%) and price (16.0%)
 U.S. single family housing starts (South region) were up only 27.4% over the same period
 U.S. single family units under construction (South region) were up only 23.2% over the same
period
 Gross margin was 19.5% for Q1 2013 compared to 20.6% for Q1 2012. Increased sales volume was
offset by intra-quarter commodity lumber price inflation relative to quarterly customer pricing
commitments.
 At March 31, 2013, our LTM Adjusted EBITDA had improved $7.5 million – $5.4 million
compared to ($2.1) million for the same period in 2012
26
Capital Structure Summary
$mm 3/31/2013 Coupon Maturity Call Provisions
Cash & Cash Equivalents $117.7
Term Loan *
225.0 L+950 bps (2% Libor floor) Sep-15 Interest make-whole through Dec 2014
Second-lien Floating Rate Notes 139.7 L+1000 bps (3% Libor floor) Feb-16 Currently callable at 100
Other debt 4.0
Total Debt 368.7
Stockholders' Equity 37.1
Total Capitalization 405.8
Net Debt $251.0
* Financing also includes a stand-alone LC facility that provides for the issuance of up to $10mmletters of credit and a sub-facility that
provides for the issuance of up to $15mmletters of credit
Reconciliation of
Non-GAAP Financial Measures
28
Adjusted EBITDA Reconciliation
$mm 2005 2006 2007 2008 2009 2010 2011 2012
Net Income (Loss) $48.6 $68.9 ($23.8) ($139.5) ($61.9) ($95.5) ($65.0) ($56.9)
Reconciling Items:
Depreciation & amortization 16.9 20.4 22.4 20.8 17.9 15.4 14.0 11.1
Interest expense 47.2 28.7 27.7 25.6 27.0 31.7 24.9 45.1
Income tax expense (benefit) 27.0 43.3 (4.3) (17.7) (30.8) (1.1) 2.2 0.6
(Income) loss from discontinued operations, net of tax (3.6) 2.3 21.1 18.9 5.0 1.2 0.4 2.4
Asset impairments - - 0.4 46.9 0.5 0.8 - 0.0
Stock compensation expense 0.0 4.1 7.0 8.5 2.9 4.3 4.6 3.6
Litigation settlement - - - - - (1.2) - (0.6)
Transaction costs - - 1.1 2.8 3.2 (0.0) 1.2 -
Facility closure costs 0.8 0.6 0.1 1.2 1.2 0.6 2.5 1.0
Anti-dilution payment to stock option holders 35.5 - - - - - - -
Other 0.2 1.6 1.5 (0.1) (0.0) 0.2 0.2 (0.0)
Adjusted EBITDA $172.7 $169.9 $53.2 ($32.4) ($35.1) ($43.6) ($15.0) $6.4
Fiscal Year
29
Quarterly Adjusted EBITDA Reconciliation
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
$mm 2011 2011 2011 2012 2012 2012 2012 2013
Net Loss ($15.5) ($11.6) ($16.7) ($19.2) ($12.1) ($13.6) ($12.0) ($11.8)
Reconciling Items:
Depreciation & amortization 3.5 3.4 3.5 2.9 2.5 2.9 2.9 2.8
Interest expense 5.7 5.3 8.1 13.1 10.5 10.6 11.0 12.5
Income tax expense (benefit) 1.7 0.3 0.3 0.2 0.1 0.0 0.2 0.3
Loss from discontinued operations, net of tax 0.1 0.1 0.1 0.1 0.1 1.3 1.0 0.2
Stock compensation expense 0.9 1.7 0.9 0.8 0.9 0.9 1.0 1.3
Transaction costs 0.3 - - - 0 0 - -
Facility closure costs 1.9 0.1 0.4 0.1 0.1 0.7 0.1 0.1
Other 0.1 (0.0) 0.1 0.0 (0.0) 0.0 (0.6) (0.0)
Adjusted EBITDA ($1.3) ($0.7) ($3.3) ($2.1) $2.1 $3.0 $3.4 $5.4

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Q1 2013 bldr investor presentation

  • 1.
  • 2. 1 Cautionary Notice Statements in this presentation which are not purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements in this presentation are based upon information available to Builders FirstSource, Inc. on the date of this presentation. Except as required by law, Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company’s revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy. Builders FirstSource, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.’s most recent Form 10-K filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this presentation are qualified by the factors, risks and uncertainties contained therein Use of Non-GAAP Financial Measures This presentation includes financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (“GAAP”) in order to provide investors with an alternative method for assessing our operating results in a manner that enables investors to more thoroughly evaluate our current performance as compared to past performance. We believe these non-GAAP measures provide investors with a better baseline for modeling our future earnings expectations. Our management uses these non-GAAP measures for the same purpose. We believe that our investors should have access to the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Our calculations of non-GAAP measures are not necessarily comparable to similarly titled measures reported by other companies. Schedules that reconcile non-GAAP financial measures to their GAAP equivalents are included later in this presentation. Safe Harbor & Non-GAAP Financial Measures
  • 3. 2 Contents Section 1 Company Overview 3 Section 2 Industry Update 9 Section 3 Investment Highlights 13 Section 4 Financial Overview 19 Section 5 Reconciliation of Non-GAAP Financial Measures 27
  • 5. 4 Prefabricated ComponentsLumber & Lumber Sheet Other Products & Services  Products include dimensional lumber, plywood and oriented strand board (“OSB”)  Factory-built substitutes for job side-framing including floor trusses, roof trusses, wall panels, stairs, and engineered wood  Cabinets, gypsum, roofing and insulation. Services include turn- key framing, shell construction, design assistance, and installation Windows & Doors Millwork  Manufacturing, assembly and distribution of aluminum and vinyl windows  Assembly and distribution of interior and exterior door units  Distribution of interior trim, exterior trim, columns and posts. Manufacturing of custom exterior features under the Synboard™ brand name  Third largest building products provider1 operating in the estimated $129.2 billion single family residential home construction market2  The Company is a fully-integrated supplier, manufacturer and installer of structural and related building products Company Overview Notes: 1 According to ProSales Magazine among those with manufacturing capabilities, based on 2011 revenues 2 2012 National Association of Home Builder (“NAHB”)
  • 6. 5 Revenue Distribution  Approximately half of BFS sales are from value added product categories — Prefabricated Components, Millwork and Windows & Doors  Over 20% of sales are related to our installation services Fiscal Year 2012 March YTD 2013
  • 7. 6  Top 10 customers represented approximately 23% of total sales, with no one customer exceeding 5% for FY 2012  Customer mix consists of large national homebuilders, regional homebuilders and local builders  Approximately 15% of sales are related to light commercial and multi-family construction Our Customers
  • 8. 7 BFS has operations in 33 markets in 9 states primarily in the southern and eastern regions of the United States  BFS is in 16 of the nation’s top 50 Metropolitan Statistical Areas (as ranked by single family housing permits)  Approximately 45% of 2012 U.S. housing permits were issued in states in which BFS operates  53 distribution centers and 44 manufacturing facilities, some of which are co-located Geographic Footprint North East Emmitsburg Frederick Port of Rocks Hagerstown Manassas Culpeper Washington Hillsborough High Point Bristol Piney FlatsKingsport Johnson City Knoxville Asheville Hendersonville BrevardCashiers Blairsville Gainsville Atlanta LaGrange Columbus CherryPoint Edisto Island Johns Island Charleston Pawleys Island Columbia Sumter Goose Creek Conway Loris Florence Anderson Seneca Greenville Spartanburg Cowpens Charlotte Aberdeen Fayetteville Southport WilmingtonWilmington Nashville Chelsea Shelby Auburn Jacksonville Freeport Tampa Bunnell Orlando West Palm Beach Dallas Headquarters Lewisville Arlington Grand Prairie Houston San Antonio Austin Apex Clarksville
  • 9. 8 Strong Market Position BFS is the third largest building products provider in an estimated $129.2 billion single family residential construction market1 Building Products Suppliers with Manufacturing Capabilities Note: 1 2012 NAHB Pro Distributor % Change ProBuild Holdings $2,838 $3,045 -6.8% 84 Lumber 1,278 1,378 -7.2% Builders FirstSource 779 700 11.3% Stock Building Supply 735 818 -10.1% BMC 631 570 10.7% Carter Lumber 557 535 4.2% US LBM 429 270 59.3% Harvey Building Products 400 n/m n/m McCoy’s Building Supply 380 377 0.6% Golden State Lumber 213 212 0.4% Source: ProSales Magazine, 2011 & 2010 2011 Pro Segment Sales ($mm) 2010 Pro Segment Sales ($mm)
  • 11. 10  Recent downturn in residential new construction market is without precedent since World War II  Since 2008, housing starts have been well below the long term trend of 1.5 million total starts and 1.1 million single family starts. Overbuild/Underbuild New Construction Market Trends
  • 12. 11  The residential new construction market has experienced a substantial downturn in recent years as a result of the recession  The downturn resulted in the largest decline in housing starts since the Great Depression falling by 73% from the 2005 peak to the current trough  Building products sales have had a corresponding decline  Trends that will drive a recovery in U.S. housing demand include:  Low interest rates, the aging of housing stock, and population growth due to immigration and birthrates exceeding death rates  The National Association of Home Builders (“NAHB”) is predicting that 2013 U.S. single family housing starts will grow approximately 24% from 2012, with approximately 664,000 single family housing starts predicted  NAHB predicts single family housing starts will increase to 855,000 in 2014, representing a 29% increase over the 2013 forecast The Macro Environment BFS is well positioned to take advantage of anticipated renewed demand
  • 13. 12 Commodity Price Trends Commodity prices have steadily increased since the beginning of the 2012. Higher commodity prices will typically result in increased gross profit dollars and improved EBITDA flow through.
  • 15. 14 Strategic Growth Plan Management plans to capitalize on the housing market recovery and continue to focus on profitable, disciplined growth and free cash flow generation Maximize share of wallet with customers and within markets Leverage our strategic vendor relationships Leverage our scalable cost structure Selectively pursue organic expansion and strategic acquisitions  Grow sales to production homebuilders as they continue to gain market share  Prudently expand presence in the custom homebuilder base  Selectively pursue opportunities to grow our multi-family and light commercial business  Preferred channel partner with strong financial position  Relative size and homebuilder relationships provide our vendors access to a large customer base with significant purchasing power  Standardized process and technology-based workflows  Streamline operations and enhance working capital efficiency  Through the downturn, realized permanent cost savings  No single Pro Segment supplier accounts for more than 2% of the market  Opportunistic bolt-on acquisitions could be highly accretive to the business  History of successfully entering new markets through greenfield expansion
  • 16. 15 Fully Integrated Distribution Platform BFS has an integrated business model that differentiates it from competitors that operate with a decentralized collection of facilities  Network of 53 distribution centers and 44 manufacturing facilities, some which are co- located  Size of facilities tailored to each market to meet customer needs  Offering large-scale, full-service branches in larger markets and smaller, more tailored facilities in secondary markets  Highly customized, proprietary information technology system drives internal efficiencies allowing the Company to respond rapidly to customers and reduce their costs  BFS operates and owns the source code to its enterprise resource planning (“ERP”) computer system that is tailored to the building supply industry in addition to laser technology that facilitates precision, speed and efficiency in the manufacturing process
  • 17. 16  Due to the breadth of its product offering (65,000 SKUs), BFS functions as a “one-stop shop”  Homebuilders value the convenience and efficiency of using one supplier throughout building process  BFS provides customers with a full range of services including professional installation, turn-key framing and shell construction and design  BFS’s salespeople are typically trained homebuilders who understand the challenges that might be encountered at the job site  Just-in-time delivery of just the right amount of product  Value-added advice and consultation on engineering, building codes and other building matters BFS acts as both a supplier and advisor to the homebuilding customer Supplier to Homebuilders Trusted Consultant Full Offering of Manufactured Products and Construction Services
  • 18. 17 17 Experienced Management Team Lou Davis Vice President – Manufacturing Morris E. Tolly Senior Vice President – Operations Floyd F. Sherman President and CEO Chad Crow Senior Vice President and CFO  13 years of industry experience  Prior experience: Director of Accounting at Pier One Imports and five years experience with PriceWaterhouse  Over 40 years of industry experience  Prior experience: Area Manager at Pelican Companies, Inc.  Over 40 years of industry experience  Prior experience: Chairman & CEO of Triangle Pacific / Armstrong Flooring Area VPs  Over 40 years of industry experience  Prior experience: Manufacturing management positions with Wickes, Inc., Fabricon, Inc., National Homes Corp  Average BFS tenure of 20 years Donald F. McAleenan Senior VP and General Counsel  20 years of industry experience  Prior experience: VP & Deputy General Counsel of Fibreboard, Asst General Counsel of AT&E, nine years as a securities lawyer
  • 19. 18 Summary Experienced Management Team Sustained investment through the cycle Fully-integrated industry-leading IT system Comprehensive value-added approach to customer service Market Leadership in Attractive Fragmented Markets Differentiating factors that will enhance BFS’s ability to take advantage of housing recovery
  • 21. 20 Review of 2012 Operating Results  Sales for 2012 were 37.4% higher than 2011 primarily driven by volume, and to a lesser extent, commodity price inflation  U.S. single family housing starts (South region) were up only 23.1% over the same period  U.S. single family units under construction (South region) were up only 7.7% over the same period  Combination of these data points, indicate market share gains  Gross margin decreased slightly from 20.3% in 2011 to 20.0% in 2012. Increased sales volume was offset by intra-quarter commodity lumber price inflation relative to quarterly customer pricing commitments. Higher than expected sales volume resulted in us replacing inventory during the latter half of the quarters at higher costs.  Selling, general, and administrative expenses have been monitored closely by management and as a percentage of sales decreased from 24.2% in 2011 to 20.4% in 2012 (excluding stock compensation expense)  FY 2012 Adjusted EBITDA improved $21.4 million – $6.4 million compared to ($15.0) million in 2011
  • 22. 21  After declines in 2007-2009, revenues stabilized in 2010 then grew 11% in 2011 and 37% in 2012  Historical margins demonstrate the potential for expansion from current margins as the business builds toward historical scale and leverages a leaner cost structure  Proven ability to conserve capital through tight working capital management and reduced capital spending Summary Financial Performance $mm except Sales per SF Start 2005 2006 2007 2008 2009 2010 2011 2012 South Region Single Family Housing Starts1 831,300 756,500 539,500 323,600 232,100 247,200 229,200 282,100 South region sales per SF start $2,572 $2,728 $2,722 $3,066 $2,921 $2,833 $3,399 $3,795 U.S. Single Family Housing Starts1 1,715,800 1,465,300 1,046,100 622,000 445,000 471,100 430,500 534,600 U.S. sales per SF start $1,246 $1,408 $1,404 $1,595 $1,523 $1,487 $1,810 $2,003 Total Revenue $2,138.1 $2,063.5 $1,468.4 $992.0 $677.9 $700.3 $779.1 $1,070.7 % growth -3.5% -28.8% -32.4% -31.7% 3.3% 11.2% 37.4% Gross Profit $543.4 $544.8 $363.2 $215.5 $142.4 $131.8 $157.9 $214.6 % margin 25.4% 26.4% 24.7% 21.7% 21.0% 18.8% 20.3% 20.0% Operating Expenses2 $388.6 $401.5 $341.9 $280.0 $201.4 $194.1 $193.0 $222.3 % revenue 18.2% 19.5% 23.3% 28.2% 29.7% 27.7% 24.8% 20.8% Adjusted EBITDA3 $172.7 $169.9 $53.2 ($32.4) ($35.1) ($43.6) ($15.0) $6.4 % margin 8.1% 8.2% 3.6% -3.3% -5.2% -6.2% -1.9% 0.6% Capex4 $29.7 $27.2 $10.1 $8.2 $2.1 $9.0 $4.8 $10.4 % revenue 1.4% 1.3% 0.7% 0.8% 0.3% 1.3% 0.6% 1.0% Net Working Capital as % of Revenue5 10.0% 10.4% 11.6% 12.2% 10.2% 9.3% 10.0% 10.0% Notes: 1 Source: U.S. Census 2 2005 operating expenses adjusted to exclude $35.5mmanti-dilution payment to stock option holders 3 See Adjusted EBITDA reconciliation on page 28 4 2005 and 2006 capexincludes expansion expenditures. 5 Calculated as monthly average of net working capital divided by total annual revenue Fiscal Year
  • 23. 22 Recent Quarterly Performance  Recent quarterly performance demonstrates strong revenue trends with six consecutive quarters of revenue growth greater than 30% Q2 Q3 Q4 2012 2012 2012 2012 2013 $mm except Sales per SF Start 2011 2011 2011 Q1 Q2 Q3 Q4 Q1 South Region Single Family Housing Starts1 63,800 61,700 51,600 62,000 77,200 78,100 65,300 79,000 South region sales per SF start $3,235 $3,520 $3,734 $3,539 $3,522 $3,736 $4,404 $4,047 U.S. Single Family Housing Starts1 123,400 117,700 99,900 105,500 151,100 150,100 128,600 135,200 U.S. sales per SF start $1,673 $1,845 $1,929 $2,080 $1,799 $1,944 $2,236 $2,365 Total Revenue $206.4 $217.2 $192.7 $219.4 $271.9 $291.8 $287.6 $319.7 % growth y-o-y -2.4% 20.4% 31.0% 34.7% 31.7% 34.3% 49.2% 34.7% Gross Profit $42.8 $44.4 $39.3 $45.1 $53.7 $57.7 $58.1 $62.3 % margin 20.7% 20.4% 20.4% 20.6% 19.7% 19.8% 20.2% 19.5% Operating Expenses $49.0 $50.2 $47.1 $50.8 $55.0 $58.7 $57.8 $61.1 % revenue 23.7% 23.1% 24.4% 23.2% 20.2% 20.1% 20.1% 19.1% Adjusted EBITDA2 ($1.3) ($0.7) ($3.3) ($2.1) $2.1 $3.0 $3.4 $5.4 % margin -0.6% -0.3% -1.7% -1.0% 0.8% 1.0% 1.2% 1.7% Capex $1.1 $1.1 $2.1 $1.7 $2.3 $5.2 $1.2 $1.0 % revenue 0.5% 0.5% 1.1% 0.8% 0.8% 1.8% 0.4% 0.3% Notes: 1 Source: U.S. Census 2 See Quarterly Adjusted EBITDA reconciliation on page 29
  • 24. 23 Market Share Gains  Consistent growth in sales per single-family housing start indicates market share gains
  • 25. 24 Sales & Adjusted EBITDA Trends  Consistent sales and adjusted EBITDA growth  Six straight quarters of y/o/y sales growth greater than 30%  Nine straight quarters of y/o/y adjusted EBITDA improvement
  • 26. 25 March YTD 2013 Update  Sales for Q1 2013 were $319.7 million, a 45.7% increase over sales of $219.4 million for Q1 2012  Sales growth estimated to be driven by volume (29.7%) and price (16.0%)  U.S. single family housing starts (South region) were up only 27.4% over the same period  U.S. single family units under construction (South region) were up only 23.2% over the same period  Gross margin was 19.5% for Q1 2013 compared to 20.6% for Q1 2012. Increased sales volume was offset by intra-quarter commodity lumber price inflation relative to quarterly customer pricing commitments.  At March 31, 2013, our LTM Adjusted EBITDA had improved $7.5 million – $5.4 million compared to ($2.1) million for the same period in 2012
  • 27. 26 Capital Structure Summary $mm 3/31/2013 Coupon Maturity Call Provisions Cash & Cash Equivalents $117.7 Term Loan * 225.0 L+950 bps (2% Libor floor) Sep-15 Interest make-whole through Dec 2014 Second-lien Floating Rate Notes 139.7 L+1000 bps (3% Libor floor) Feb-16 Currently callable at 100 Other debt 4.0 Total Debt 368.7 Stockholders' Equity 37.1 Total Capitalization 405.8 Net Debt $251.0 * Financing also includes a stand-alone LC facility that provides for the issuance of up to $10mmletters of credit and a sub-facility that provides for the issuance of up to $15mmletters of credit
  • 29. 28 Adjusted EBITDA Reconciliation $mm 2005 2006 2007 2008 2009 2010 2011 2012 Net Income (Loss) $48.6 $68.9 ($23.8) ($139.5) ($61.9) ($95.5) ($65.0) ($56.9) Reconciling Items: Depreciation & amortization 16.9 20.4 22.4 20.8 17.9 15.4 14.0 11.1 Interest expense 47.2 28.7 27.7 25.6 27.0 31.7 24.9 45.1 Income tax expense (benefit) 27.0 43.3 (4.3) (17.7) (30.8) (1.1) 2.2 0.6 (Income) loss from discontinued operations, net of tax (3.6) 2.3 21.1 18.9 5.0 1.2 0.4 2.4 Asset impairments - - 0.4 46.9 0.5 0.8 - 0.0 Stock compensation expense 0.0 4.1 7.0 8.5 2.9 4.3 4.6 3.6 Litigation settlement - - - - - (1.2) - (0.6) Transaction costs - - 1.1 2.8 3.2 (0.0) 1.2 - Facility closure costs 0.8 0.6 0.1 1.2 1.2 0.6 2.5 1.0 Anti-dilution payment to stock option holders 35.5 - - - - - - - Other 0.2 1.6 1.5 (0.1) (0.0) 0.2 0.2 (0.0) Adjusted EBITDA $172.7 $169.9 $53.2 ($32.4) ($35.1) ($43.6) ($15.0) $6.4 Fiscal Year
  • 30. 29 Quarterly Adjusted EBITDA Reconciliation Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 $mm 2011 2011 2011 2012 2012 2012 2012 2013 Net Loss ($15.5) ($11.6) ($16.7) ($19.2) ($12.1) ($13.6) ($12.0) ($11.8) Reconciling Items: Depreciation & amortization 3.5 3.4 3.5 2.9 2.5 2.9 2.9 2.8 Interest expense 5.7 5.3 8.1 13.1 10.5 10.6 11.0 12.5 Income tax expense (benefit) 1.7 0.3 0.3 0.2 0.1 0.0 0.2 0.3 Loss from discontinued operations, net of tax 0.1 0.1 0.1 0.1 0.1 1.3 1.0 0.2 Stock compensation expense 0.9 1.7 0.9 0.8 0.9 0.9 1.0 1.3 Transaction costs 0.3 - - - 0 0 - - Facility closure costs 1.9 0.1 0.4 0.1 0.1 0.7 0.1 0.1 Other 0.1 (0.0) 0.1 0.0 (0.0) 0.0 (0.6) (0.0) Adjusted EBITDA ($1.3) ($0.7) ($3.3) ($2.1) $2.1 $3.0 $3.4 $5.4