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© 2017 BMC. All Rights Reserved.
BMC STOCK HOLDINGS, INC.
INVESTOR PRESENTATION
March 2017
CLICK TO EDIT TITLE DISCLAIMER
2
Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this
document may include, without limitation, statements regarding sales growth, price changes, earnings performance, strategic direction and the demand for our products.
Forward-looking statements are typically identified by words or phrases such as "may," "might," "predict," "future," "seek to," "assume," "goal," "objective," "continue," "will,"
"could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "prospects," "guidance," "possible," "predict," "propose," "potential"
and "forecast," or the negative of such terms and other words, terms and phrases of similar meaning. Forward-looking statements involve estimates, expectations,
projections, goals, forecasts, assumptions, risks and uncertainties, many of which are outside BMC Stock Holdings, Inc.’s (“BMC” or the “Company”) control. BMC cautions
readers that any forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-
looking statement; therefore, investors and shareholders should not place undue reliance on such statement. Such forward-looking statements include, but are not limited
to, statements about the benefits of the recently completed merger (the “Merger”) of Stock Building Supply Holdings, Inc. (“SBS” or “Legacy SBS”) with Building Materials
Holding Corporation (“Legacy BMC”), including future financial and operating results, plans, objectives, expectations and intentions, and other statements that are not
historical facts. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this
communication. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties
relating to: the risk that the Legacy SBS and Legacy BMC businesses will not be integrated successfully or that such integration will take longer, be more difficult, time-
consuming or costly to accomplish than expected; the risk that the cost savings and any other synergies from the Merger may not be fully realized or may take longer to
realize than expected; disruption from the Merger may make it more difficult to maintain relationships with customers, employees or suppliers; the diversion of management
time on Merger-related issues; general worldwide economic conditions and related uncertainties; changes in the markets for BMC's business segments; unanticipated
downturns in business relationships with customers; competitive pressures on the Company's sales and pricing; increases in the cost of material, energy and other
production costs, or unexpected costs that cannot be recouped in product pricing; the introduction of competing technologies; unexpected technical or marketing difficulties;
unexpected claims, charges, litigation or dispute resolutions; the effect of changes in governmental regulations; and other factors discussed or referred to in the "Risk
Factors" section of BMC’s most recent Annual Report on Form 10-K filed on March 1, 2017. All such factors are difficult to predict and are beyond BMC's control. All
forward-looking statements attributable to BMC or persons acting on BMC's behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such
statements speak only as of the date made, and BMC undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Basis of Presentation
The Merger was accounted for as a “reverse acquisition” under the acquisition method of accounting, with Legacy SBS treated as the legal acquirer and Legacy BMC
treated as the acquirer for accounting purposes. As such, the Company has accounted for the Merger by using Legacy BMC historical information and accounting policies
and adding the assets and liabilities of Legacy SBS as of the completion date of the Merger at their estimated fair values. As a result, current year results reported pursuant
to U.S. generally accepted accounting principles (“GAAP”) are not comparable to prior periods.
CLICK TO EDIT TITLE NON-GAAP (ADJUSTED) FINANCIAL MEASURES
3
Adjusted net sales, Adjusted gross profit, Adjusted EBITDA and Adjusted net income are intended as supplemental measures of the Company’s performance that are not
required by, or presented in accordance with, GAAP. The Company believes that Adjusted net sales, Adjusted gross profit, Adjusted EBITDA and Adjusted net income
provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and operating results.
• Adjusted net sales is defined as BMC net sales plus pre-Merger SBS net sales.
• Adjusted gross profit is defined as BMC gross profit plus pre-Merger SBS gross profit and inventory step-up charges.
• Adjusted EBITDA is defined as BMC net income (loss) plus pre-Merger SBS (loss) income from continuing operations, interest expense, income tax expense (benefit),
depreciation and amortization, Merger and integration costs, restructuring expense, inventory step-up charges, non-cash stock compensation expense, loss on debt
extinguishment, headquarters relocation expense, insurance deductible reserve adjustment and fire casualty loss, loss on portfolio transfer, acquisition costs and other
items and impairment of assets.
• Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales or Adjusted net sales.
• Adjusted net income is defined as BMC net (loss) income plus pre-Merger SBS (loss) income from continuing operations, impairment of assets, Merger and integration
costs, inventory step-up charges, non-cash stock compensation expense, loss on debt extinguishment, headquarters relocation expense, loss portfolio transfer, insurance
deductible reserve adjustment, fire casualty loss, tax benefit from NOL adjustments, recognition of previously unrecognized tax benefits and other items, and after tax
effecting those items.
Company management uses Adjusted net sales, Adjusted gross profit, Adjusted EBITDA and Adjusted net income for trend analyses, for purposes of determining
management incentive compensation and for budgeting and planning purposes. Adjusted net sales, Adjusted gross profit and Adjusted EBITDA are used in monthly
financial reports prepared for management and the board of directors. The Company believes that the use of Adjusted net sales, Adjusted gross profit, Adjusted EBITDA
and Adjusted net income provide additional tools for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial
measures with other distribution and retail companies, which may present similar non-GAAP financial measures to investors. However, the Company’s calculation of
Adjusted net sales, Adjusted gross profit, Adjusted EBITDA and Adjusted net income are not necessarily comparable to similarly titled measures reported by other
companies. Company management does not consider Adjusted net sales, Adjusted gross profit, Adjusted EBITDA and Adjusted net income in isolation or as alternatives to
financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA and Adjusted net income is that they exclude significant expenses
and income that are required by GAAP to be recorded in the Company’s financial statements. Some of these limitations are: (i) Adjusted EBITDA and Adjusted net income
do not reflect changes in, or cash requirements for, working capital needs; (ii) Adjusted EBITDA does not reflect interest expense, or the requirements necessary to service
interest or principal payments on debt; (iii) Adjusted EBITDA does not reflect income tax expenses or the cash requirements to pay taxes; (iv) Adjusted net income and
Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments; (v) although depreciation and
amortization charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA and Adjusted net
income do not reflect any cash requirements for such replacements and (vi) Adjusted net income and Adjusted EBITDA do not consider the potentially dilutive impact of
issuing non-cash stock-based compensation. In order to compensate for these limitations, management presents Adjusted net sales, Adjusted gross profit, Adjusted
EBITDA and Adjusted net income in conjunction with GAAP results. Readers should review the reconciliations of net sales to Adjusted net sales, gross profit to Adjusted
gross profit, net income (loss) to Adjusted EBITDA and Adjusted net income, included in the Appendix, and should not rely on any single financial measure to evaluate the
Company’s business.
© 2017 BMC. All Rights Reserved.
COMPANY OVERVIEW 1
CLICK TO EDIT TITLE BMC COMPANY SNAPSHOT
NASDAQ LISTED: BMCH
5
2016 Product & Service Mix A leading national building solutions provider with $3.1
billion of net sales and $193.9 million of Adjusted EBITDA(1)
for 2016
Locations in 17 states representing 63% of 2016 single-
family building permits
Significant market presence in 42 attractive metropolitan
areas
Focus on differentiated, value-added products and services
that meet critical industry needs
Proven growth track record (~28% Adjusted EBITDA CAGR
since 2013) with significant future opportunities as housing
market expands
Design
Services
Component
Manufacturing
Millwork
Manufacturing
Turnkey
Solutions
91 Distribution Yards 49 Ready-Frame,
EWP, Truss & Panel
Manufacturing
50 Millwork
Operations
Installation
Services
Design Centers &
Showrooms
eBusiness
Platform
Logistics, Services
& eCommerce
Distribution
Services
Structural
Components, 15%
Lumber & Sheet
Goods, 30%
Millwork, Windows
& Doors, 29%
Other Bldg.
Products &
Services, 26%
1. See Non-GAAP (Adjusted) Financial Measures page of this presentation for definition of Adjusted EBITDA.
CLICK TO EDIT TITLE STRATEGIC FOOTPRINT IN HIGHLY ATTRACTIVE, LONG-TERM
GROWTH MARKETS
6
Mid & South
Atlantic
27%
West South
Central
33%
Mountain
20%
Pacific
20%
2016 Sales by U.S. Census Division Company Footprint
FL
NM
TX
MT
CO UT
ID
NV
WA
CA
PA
VA
AR
GA
91
Distribution locations
in 17 states
49
Ready-Frame, EWP,
Truss & Panel
Manufacturing Facilities
50
Millwork
operations
63%
of 2016 single-family
building permits
CLICK TO EDIT TITLE
Average
Cost
Share of
Cost
Building Permit Fees $3,601 1.2%
Impact Fee $1,742 0.6%
Water & Sewer Fees Inspections $4,191 1.4%
Architecture, Engineering $4,583 1.6%
Excavation, Foundation & Backfill $32,576 11.3%
Framing & Trusses $48,524 16.8%
Sheathings $1,238 0.5%
Siding $20,717 7.2%
Roofing $10,069 3.5%
Windows & Doors $12,127 4.2%
Plumbing $12,302 4.3%
Electrical $12,181 4.2%
HVAC $12,623 4.4%
Insulation $6,467 2.2%
Drywall $11,744 4.1%
Interior Trim, Doors & Hardware $12,409 4.3%
Painting $9,002 3.1%
Lighting $3,517 1.2%
Cabinets & Countertops $16,056 5.5%
Appliances $4,463 1.5%
Flooring $13,367 4.6%
Plumbing Fixtures $4,465 1.5%
Outdoor Structures (deck, patio) $4,349 1.5%
Landscaping $6,156 2.1%
Driveway $6,240 2.1%
Other $14,706 5.1%
Total $289,415 100.0%
Source: 2015 NAHB Cost of Construction Survey (This survey is conducted every other year by the NAHB.)
EXTENSIVE PRODUCT AND SERVICE OFFERING
PRODUCT PORTFOLIO REPRESENTS >50% OF COST FOR A TYPICAL NEW HOME
7
CLICK TO EDIT TITLE VALUE-ADDED SERVICES SUPPORT JOB SITE EXCELLENCE
ONE-STEP VALUE CHAIN – SHOWROOM TO JOB-SITE…CONTRACTOR TO CLIENT
8
Providing differentiated solutions and
proprietary services that support our
unique value proposition
Driving enhanced productivity and
customer satisfaction
One-step distributor for premier
building products manufacturers;
critical link in building supply chain
for customers
Keen understanding of unique
construction codes, regional product
preferences and local distribution
infrastructure
Design and
showroom
services
Project
planning
eBusiness
platform
Custom
millwork,
doors,
windows
Ready-Frame ©
and trusses
Job-site
distribution
services
Installation
management
Unique
Service
Platform
CLICK TO EDIT TITLE
Diverse base of customers ranging from well-
known national builders to small regional and
local players
No single customer greater than 5% of total
net sales
Enhanced capabilities to serve attractive
professional repair and remodeling contractor
segment
Select Customers
Multi-Family &
Commercial Contractors
13%
Repair & Remodel
Contractors
12%
Single-Family
Homebuilders
75%
National Homebuilders Regional Homebuilders Multi-family (millwork)
2016 Customer Mix
HIGHLY DIVERSIFIED AND GROWING CUSTOMER BASE
9
CLICK TO EDIT TITLE
BMC Provides Strategic Go-to-Market Options for Suppliers
Diverse base of leading building products manufacturers
One-step value-added distributor providing direct access to thousands of customers
DIVERSITY OF SUPPLIER BASE
STRATEGIC AGREEMENTS IN PLACE WITH LEADING BUILDING PRODUCT SUPPLIERS
10
CLICK TO EDIT TITLE
$14 million in 2016 savings from executive and other redundant positions,
casualty insurance, benefit programs and branch support costs
Enhancements in supply chain and sourcing programs drive $17 million of
cost of goods savings in 2016 operating results
Incremental opportunities from best practices:
Millwork and components manufacturing
Ready-Frame
Logistics, design and eCommerce capabilities
Working capital optimization
$15 million of integration costs in 2016; $8 to $12 million expected in 2017,
primarily related to associate severance and system integration costs
Synergy
Category Description of Benefit
Cost Savings in
2016 Results
Annual Synergies
Expectations(1)
Sales, General &
Administrative
and Other Costs
Rationalization of corporate and branch support costs
Common casualty insurance and employee benefit programs
Fleet and indirect spend programs
Select consolidation of branches in overlapping markets
$14m $19m to $21m
Sourcing and
Supply Chain
(Cost of Goods
Sold)
Alignment of suppliers to optimize purchase quantities
Extend ‘one-step’ supplier sourcing relationships across
combined company
Improve supplier rebates and discounts by leveraging combined
larger purchase volume
$17m $27m to $31m
Total $31m $46m to $52m
Targeted Run-Rate Cost Savings Moving Quickly to Capture Value
2016 By the end of 2017
$31m
$46 to $52m (1)
1. Estimated run-rate cost savings represents annualized savings at the end of 2017.
TIGHTLY MANAGED INTEGRATION PLAN
TO EXTRACT SYNERGIES AND LEVERAGE UNIQUE CAPABILITIES
11
© 2017 BMC. All Rights Reserved.
FOCUSED GROWTH STRATEGY 2
CLICK TO EDIT TITLE
Favorable Foundational Industry Trends
Expand Value-Added Products & Services
Expand Wallet Share in Core Markets
Pursue Strategic Profitable Expansions
Merger Benefits
National scale
Service capabilities meeting
industry demands
Attractive geographies
Proven leadership & deep talent
pool
Solid financial position
Significant synergies
Creating a Best-in-Class Building Solutions Platform
LEVERAGING STRONG FOUNDATION AND CORE CAPABILITIES
TO ACCELERATE PROFITABLE GROWTH
13
CLICK TO EDIT TITLE
Significant Room to Recover from Today’s Levels
(ths)
U.S. S-F Starts Remain Well Below 50 Year Average (1) Poised to Benefit from the Housing Recovery
Adjusted Net Sales per S-F Housing Starts
in BMC Markets (2)
Macro conditions support housing market growth
Population & employment growth
Consumer & builder confidence
Credit availability
Affordability
Government policy
50 year
average
$10,588
$11,176
$11,286
$11,436
2013 2014 2015 2016
1. Source: United States Census Bureau.
2. See Non-GAAP (Adjusted) Financial Measures page of this presentation for definition of Adjusted net sales; 2013 to 2016 Adjusted net sales per S-F Housing Starts in BMC Markets are
calculated on a constant-dollar basis using 2016 annual average commodity prices.
BENEFITTING FROM FAVORABLE INDUSTRY TRENDS
14
0
400
800
1,200
1,600
2,000
19
67
19
70
19
73
19
76
19
79
19
82
19
85
19
88
19
91
19
94
19
97
20
00
20
03
20
06
20
09
20
12
20
15
U.S. Single Family Starts
CLICK TO EDIT TITLE
Other Bldg.
Products &
Services
26%
Lumber & Sheet
Goods
35% Millwork,
Doors &
Windows
25%
Structural
Components
14%
Structural Components,
15%
Lumber & Sheet
Goods, 30%
Millwork, Doors &
Windows, 29%
Other Bldg. Products &
Services, 26%
Includes engineered wood products,
trusses and wall panels
Custom designed and built to reduce job-
site labor, waste and cycle times
Investing in equipment and automation to
improve manufacturing productivity
Capacity expansion in Atlanta, Austin,
Raleigh and Salt Lake City to capture
greater share of growing demand
Whole house framing solution
Designed to reduce builder cycle time, labor
requirement and material waste
2016 sales of ReadyFrame were $103
million
Deployed in all of the company’s 25 major
markets
Includes millwork, interior doors, windows
and cabinets
Developing web-based catalogs and
configuration tools to showcase offerings
Acquired custom millwork manufacturer in
2015 with potential to leverage unique
capabilities across multiple markets
Investing in capacity, showrooms and sales
Ready-Frame® (1) Structural Components Windows, Doors & Millwork
Product & Service Mix Evolution 2016 Growth by Product Category
1. Ready-Frame® sales are divided between the Lumber & Sheet Goods and Structural Components product categories.
Relative GM %
Gro
w
th
Rat
e
Low Mid High
0%
4%
8%
12%
16%
Structural
Components
Millwork, Doors
& Windows
Lumber & Sheet
Goods
Other Bldg.
Products &
Services
2013
2016
EXPANSION OF PRODUCT & SERVICE OFFERING DRIVING SHARE
GAINS AND IMPROVED MIX
15
CLICK TO EDIT TITLE READY-FRAME®
MEETING INDUSTRY NEEDS; FIRST-MOVER POSITION FOR FUTURE OF FRAMING
16
Proprietary job-site framing solution for constructing roof
and floor trusses
Designed to reduce builder cycle time, labor requirement
and material waste
Applicable to single-family, custom, multi-family, and
commercial construction
Enables customers to frame 20-30% more houses in same
time period as stick framing
Whole house, precision pre-cut package
One price per package
Smart bundled (top piece off delivery is first used for
framing)
No cutting lumber, no last minute orders, no errors and
no punch lists
Take off guaranteed to the 1/16”
Green solution with minimal to no on-site waste and
disposal costs
2016 sales grew 46% to $103 million vs. 2015
55% of BMC’s 2016 LBM sales in Seattle were from
ReadyFrame
Opportunity to transition commodity lumber sales to value-
added solutions and grow share
Less Risk. Less Labor. Less Cost.
READY-FRAME video:
https://www.youtube.com/watch?v=REv665u2QRI
CLICK TO EDIT TITLE READY-FRAME®
PROVEN TRACK RECORD OF SHARE GAINS; POISED TO DRIVE FUTURE GROWTH
17
Opportunity
Historical Sales Trend
Proven ability to reduce builder cycle time, labor
requirement and material waste
No other market participant provides a comparable solution
Provides a truly differentiated offering that creates “sticky”
customer relationships
Building on success of offering in legacy markets, rolled out
Ready-Frame® in 9 new markets during 2016; Now
available in all 25 major markets
Ready-Frame® location
$29
$60
$70
$103
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
FY 2013 FY 2014 FY 2015 FY 2016
($m)
CO UT
NV
WA
CA
Washington, DC
MT
ID
NM
TX
GA
NC
PA
CLICK TO EDIT TITLE BMC’S LEAN EBUSINESS EVOLUTION
BUILDING A TECHNOLOGY PLATFORM TO ENABLE AND LEVERAGE PROFITABLE
GROWTH
18
>92%
1. Reduced product costs from Photo Proof of Delivery, which has reduced Claims, including Returns, Damages and Missing Product
2. As of 3/1/17, transactional capabilities are available in 15 markets; rollout expected to continue following ERP conversions.
3. At 12/31/16, go-forward ERP was in place in 2/3 of the Company’s locations
Single
ERP
Logistics Solutions
↑ Driver Productivity
↑ Customer Satisfaction
↑ Asset Utilization
↓ Product Costs1
E-Commerce
2
↑ Ease of Accessibility
↑ Customer Productivity
↑ Associate Productivity
↑ New Customer Leads
Installation Services
↑ Resource Management
↑ Communication & Document
Management
↑ Completion Performance
Integrating Value-Added Solutions Around a Single ERP
3
CLICK TO EDIT TITLE 24X7 TRANSACTIONAL FRONT-END TO ERP
ENHANCES CUSTOMER EXPERIENCE / PRODUCTIVITY
19
Easy, Fast, Convenient
Intuitive interface
Accessible 24x7
Mobile based platform
Full breadth of products
Customer specific pricing
Product availability and lead
times
Professional Resources
Robust building science content:
articles, videos, project
management tools
“How-to” articles
Product search with photos,
specs, comparison tools
Idea gallery with room scenes
Interactive design tools
Work More Efficiently
Order Management Tools: place
orders, check order status, create
reorder lists
Account management Tools: Pay
invoices, assign users and admin
permissions, view history
Configure custom millwork
Manage business digitally
Introducing a Brand New Tool for our Customer’s Belt
CLICK TO EDIT TITLE POSITIONED TO UTILIZE M&A TO DRIVE FUTURE GROWTH
FRAGMENTED MARKET COMBINED WITH PROVEN AND DISCIPLINED M&A PROCESS
Fragmentation Presents Significant Consolidation Opportunities
4.8x (3)
1.8x (3)
Disciplined targeting, negotiating and execution capability
has yielded highly successful acquisition track record
Expanded into new markets
Enhanced existing network density
Augmented product offering
Efficiently and effectively extracted synergies
Leverage profile provides financial flexibility to pursue
accretive M&A
Builders FirstSource 6%
[CATEGORY
NAME] [VALUE]
84 Lumber 3%
US LBM 3%
Carter Lumber 1%
Others 84%
$6,367
$3,094
$2,504 $2,401
$1,109
$417
($m)
M&A Opportunity LBM Dealer Market Fragmentation (1)
LBM Dealers Annual Total Net Sales (2)
Average of Top
100 LBM Dealers
Public LBM Dealers Leverage (3) Profile
1. Source: 2015 ProSales 100 rankings of pro dealers with manufacturing capabilities
2. Source: 2015 ProSales 100 rankings of pro dealers with manufacturing capabilities for all but BMC and Builders First Source. For BMC and Builders First Source reported 2016 actuals were used.
3. Leverage for BLDR is the ratio of Adjusted net debt at December 31, 2016 to Adjusted EBITDA for the twelve months ended December 31, 2016. BMC’s calculation of leverage is the ratio of Long Term
Debt to LTM Adjusted EBITDA at December 31, 2016. Neither method are necessarily comparable to similarly titled measures reported by other companies.
20
As of 12/31/16
As of 12/31/16
© 2017 BMC. All Rights Reserved.
FINANCIAL OVERVIEW 3
CLICK TO EDIT TITLE
$93
$114
$130
$194
2013 2014 2015 2016
$2,407
$2,607
$2,801
$3,094
2013 2014 2015 2016
$531
$603
$670
$745
2013 2014 2015 2016
CAGR: 10.1%
PROVEN TRACK RECORD OF GROWTH
22
Adjusted net sales(1) CAGR(2) of 10.1%
from 2013 to 2016 compared to single-
family starts CAGR of 8.2%
Adjusted gross profit(1) as a percent of
adjusted net sales increased 200 basis
points since 2013
Adjusted EBITDA(1) CAGR of 28% from
2013 to 2016 driven by operating
leverage and strategic growth initiatives
and $31 million of Merger-related cost
synergies to date
Adjusted net sales (1) ($m)
Adjusted gross profit (1) ($m)
Adjusted EBITDA (1) ($m)
1. See Non-GAAP (Adjusted) Financial Measures page of this presentation for definition of Adjusted net sales, Adjusted gross profit and Adjusted EBITDA.
2. Adjusted net sales CAGR calculated on a constant-dollar basis using 2016 annual average commodity prices.
Performance Highlights
CAGR: 11.9%
CAGR: 28.0%
CLICK TO EDIT TITLE FULL YEAR 2016 FINANCIAL RESULTS
23
2016 Financial Performance 2016 Commentary
Full year net sales growth of 10.5%, compared to 2015
Adjusted net sales(1)
Millwork, doors & windows up 13.1%
Structural components up 12.2%
Lumber and sheet good price inflation increased total net
sales by 1.2%
2016 Ready-Frame® sales growth of 46% to $102.9m,
compared to 2015
Adjusted EBITDA(1) margin improvement of 170 basis points
to compared to 2015
Capex, including capital leases, of $53.2m primarily to fund
purchases of vehicles and equipment
Operating cash flow increased to $106.9m for 2016
$31 million of cost savings synergies recorded during 2016;
To date, approximately 45% relates to SG&A cost reductions
and 55% relate to sourcing (cost of sales)
1. See Non-GAAP (Adjusted) Financial Measures pages of this presentation for definition of Adjusted Net Sales, Adjusted Gross Profit and Adjusted EBITDA
($ in millions except per share amounts)
(Unaudited) 2015 2016 % Chg
Structural Components $420.3 $471.6 12.2%
Lumber & Lumber Sheet Goods 864.9 921.3 6.5%
Millwork, Doors & Windows 794.6 898.8 13.1%
Other Bldg Products & Services 720.8 802.1 11.3%
Total Adjusted Net Sales
(1)
$2,800.6 $3,093.7 10.5%
Adjusted Gross Profit
(1)
$670.1 $744.8 11.2%
% margin 23.9% 24.1%
Adjusted EBITDA
(1)
$129.5 $193.9 49.7%
% margin 4.6% 6.3%
Capital Expenditures $53.2
% of Sales 1.7%
CLICK TO EDIT TITLE STRONG BALANCE SHEET TO SUPPORT GROWTH
FLEXIBILITY FOR CONTINUED INVESTMENTS AND DISCIPLINED, ACCRETIVE M&A
24
1. See Non-GAAP (Adjusted) Financial Measures page of this presentation for definition of Adjusted EBITDA
2. With transactions completed in September 2016, these new 5.5% Senior Secured Notes due 2024 replaced the Company’s 9.0% Senior Secured Notes due 2018
Improving Adjusted EBITDA trends
Working capital usage ~12% of sales with improvement
opportunity through Merger
Full Year 2017 CAPEX expected to be $60 to $70
million
2017 depreciation expense expected to be $50 to $55
million
2017 amortization expense expected to be $14 to $16
million
2017 interest expense expected to be ~$25 million
Targeting $46 to $52 million of annual run rate cost
synergies by the end of 2017
Attractive Cash Flow Dynamics
12/31/2016 Long-Term Debt
$344.8 million
Long-Term Debt/ LTM 12/31/2016
Adjusted EBITDA (1)
1.8x
$375 million revolving ABL facility with extended
maturity; No outstanding borrowings at 12/31/16
$350 million 5.5% Senior Secured Notes
maturing 2024 (2)
Longer-term leverage target of 2.0x to 3.0x
allows flexibility to make strategic investments
Balance Sheet Positioned to Invest
CLICK TO EDIT TITLE SOLID BALANCE SHEET AND AMPLE LIQUIDITY SUPPORT
BUSINESS STRATEGY AND INITIATIVES
25
Selectively Pursue
Strategic Acquisitions
Ample Liquidity
Improve Growth and
Margin Profile
Increase Productivity and
Reduce Expenses
Conservative
Capital Structure
Grow scale and expand product and service offerings to drive
improved mix and margin expansion
Open new locations in selected markets, relocate facilities as
needed, and increase capacity at existing facilities
Use technology to improve customer service and reduce waste
Integrate and upgrade existing ERP platforms to standardize
processes
Continue to develop talent training program
Modest Total Leverage of 1.8x as of 12/31/20161
Longer-term Total Leverage target of 2.0x to 3.0x
Consider acquisition opportunities that enhance margin profile
and through the cycle performance
Previous acquisitions include: Robert Bowden Inc. (Sep 2015)
and VNS Corporation (May 2015)
$375 million ABL Revolving Credit Facility due 2020
$274 million of availability for strategic investments and seasonal
working capital needs
1Total Leverage is calculated as the ratio of Long-Term Debt to LTM Adjusted EBITDA
CLICK TO EDIT TITLE BMC INVESTMENT HIGHLIGHTS
A MARKET LEADER FOR GROWTH
26
Market leader with
national scale and
local expertise
Strategic footprint in
highly attractive
long-term growth
markets
Extensive value-
added product and
service capabilities
support share gains
Strong balance sheet
that supports growth
Significant synergies
being realized from
Legacy BMC and
SBS combination
Well positioned to
utilize M&A to drive
future growth
Highly fragmented
industry poised for
continued recovery
Low cost, high
service integrated
supply chain and
diverse customer
base
© 2017 BMC. All Rights Reserved.
APPENDIX
BMC STOCK HOLDINGS REPORTED (GAAP) INCOME STATEMENT
($ths) FY 2013 FY 2014 Q1 15 Q2 15 Q3 15 Q4 15 FY 2015 Q1 16 Q2 16 Q3 16 Q4 16 FY 2016
Net sales 1,210,156 1,311,498 292,826 357,287 416,471 510,162 1,576,746 727,418 797,547 821,204 747,574 3,093,743
Cost of sales 953,609 1,016,424 226,129 273,469 319,370 396,368 1,215,336 560,801 605,892 618,238 566,847 2,351,778
Gross profit 256,547 295,074 66,697 83,818 97,101 113,794 361,410 166,617 191,655 202,966 180,727 741,965
SG&A 200,588 229,316 62,861 67,503 76,436 100,043 306,843 141,781 139,897 149,498 140,623 571,799
Depreciation expense 9,168 11,492 3,444 3,262 3,549 5,445 15,700 8,792 9,290 9,784 10,575 38,441
Amortization expense 1,310 - - 264 735 2,627 3,626 5,245 5,288 5,349 4,839 20,721
Impairment of assets 73 134 - - 82 (82) - 11,883 - - 45 11,928
Merger and integration costs - - - 3,042 998 18,953 22,993 2,836 3,597 4,655 4,252 15,340
Income (loss) from operations 45,408 54,132 392 9,747 15,301 (13,192) 12,248 (3,920) 33,583 33,680 20,393 83,736
Interest expense (18,786) (27,090) (6,730) (6,730) (7,038) (7,054) (27,552) (8,231) (8,121) (7,668) (6,111) (30,131)
Loss on debt extinguishment - - - - - - - - - (12,529) - (12,529)
Other income (expense), net 1,306 1,413 669 347 (48) (184) 784 1,455 1,411 735 469 4,070
Income (loss) before income
taxes
27,928 28,455 (5,669) 3,364 8,215 (20,430) (14,520) (10,696) 26,873 14,218 14,751 45,146
Income tax expense (benefit) 6,273 (65,577) (2,108) 1,239 4,168 (12,988) (9,689) (3,940) 8,891 4,982 4,333 14,266
Net income (loss) 21,655 94,032 (3,561) 2,125 4,047 (7,442) (4,831) (6,756) 17,982 9,236 10,418 30,880 28
BMC STOCK HOLDINGS RECONCILIATION OF NON-GAAP ITEMS
ADJUSTED NET SALES, ADJUSTED GROSS PROFIT
($ths) FY 2013 FY 2014 Q1 15 Q2 15 Q3 15 Q4 15 FY 2015 Q1 16 Q2 16 Q3 16 Q4 16 FY 2016
Net sales 1,210,156 1,311,498 292,826 357,287 416,471 510,162 1,576,746 727,418 797,547 821,204 747,574 3,093,743
Pre-merger SBS net sales 1,197,037 1,295,716 297,620 350,065 358,540 217,650 1,223,875 - - - - -
Adjusted net sales 2,407,193 2,607,214 590,446 707,352 775,011 727,812 2,800,621 727,418 797,547 821,204 747,574 3,093,743
Structural components 347,689 380,065 86,010 106,859 119,918 107,550 420,337 110,381 123,234 126,818 111,186 471,619
Lumber & sheet goods 848,202 875,725 192,297 224,703 238,580 209,288 864,868 209,302 238,463 244,885 228,654 921,304
Millwork, doors & windows 597,805 689,532 168,300 195,796 212,685 217,862 794,643 217,899 229,099 233,418 218,353 898,769
Other building prods & svcs 613,497 661,892 143,839 179,994 203,828 193,112 720,773 189,836 206,751 216,083 189,381 802,051
Adjusted net sales by
product category
2,407,193 2,607,214 590,446 707,352 775,011 727,812 2,800,621 727,418 797,547 821,204 747,574 3,093,743
Gross profit 256,547 295,074 66,697 83,818 97,101 113,794 361,410 166,617 191,655 202,966 180,727 741,965
Pre-merger SBS gross profit 274,403 307,654 71,321 86,411 89,139 51,522 298,393 - - - - -
Inventory step-up charges - - - - - 10,285 10,285 2,884 - - - 2,884
Adjusted gross profit 530,950 602,728 138,018 170,229 186,240 175,601 670,088 169,501 191,655 202,966 180,727 744,849
Adjusted gross margin % 22.1% 23.1% 23.4% 24.1% 24.0% 24.1% 23.9% 23.3% 24.0% 24.7% 24.2% 24.1%
29
BMC STOCK HOLDINGS RECONCILIATION OF NON-GAAP ITEMS
ADJUSTED EBITDA
($ths) FY 2013 FY 2014 Q1 15 Q2 15 Q3 15 Q4 15 FY 2015 Q1 16 Q2 16 Q3 16 Q4 16 FY 2016
Net income (loss) 21,655 94,032 (3,561) 2,125 4,047 (7,442) (4,831) (6,756) 17,982 9,236 10,418 30,880
Pre-merger SBS (loss) income
from continuing operations
(5,036) 10,087 1,851 2,531 6,024 (3,564) 6,842 - - - - -
Interest expense 22,579 29,774 7,441 7,407 7,783 7,558 30,189 8,231 8,121 7,668 6,111 30,131
Income tax expense (benefit) 9,147 (59,237) (5,699) 3,676 7,188 (15,139) (9,974) (3,940) 8,891 4,982 4,333 14,266
Depreciation and amortization 25,827 28,799 8,344 8,678 9,643 12,586 39,251 16,682 17,139 17,276 17,583 68,680
Merger and integration costs - - 207 6,304 2,181 29,306 37,998 2,836 3,597 4,655 4,252 15,340
Restructuring expense 141 73 192 205 (14) - 383 - - - - -
Inventory step-up charges - - - - - 10,285 10,285 2,884 - - - 2,884
Non-cash stock compensation
expense
3,474 6,079 1,518 1,529 1,524 881 5,452 1,889 1,804 1,851 1,708 7,252
Loss on debt extinguishment - - - - - - - - - 12,529 - 12,529
Headquarters relocation - 2,054 1,377 1,075 359 1,054 3,865 - - - - -
Insurance deductible reserve
adj. and fire casualty loss
1,772 669 378 (13) 694 1,967 3,026 - - - - -
Loss on portfolio transfer - - 2,826 - - - 2,826 - - - - -
Acquisition costs and other
items
12,995 1,828 711 1,601 1,496 408 4,216 - - - - -
Impairment of assets - - - - 82 (82) - 11,883 - - 45 11,928
Adjusted EBITDA 92,554 114,158 15,585 35,118 41,007 37,818 129,528 33,709 57,534 58,197 44,450 193,890
Adjusted EBITDA margin 3.8% 4.4% 2.6% 5.0% 5.3% 5.2% 4.6% 4.6% 7.2% 7.1% 5.9% 6.3%
30
BMC STOCK HOLDINGS RECONCILIATION OF NON-GAAP ITEMS
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
(in $ths, except per share amounts) Q4 2015 Q4 2016 FY 2015 FY 2016
Net (loss) income (7,442) 10,418 (4,831) 30,880
Pre-merger SBS (loss) income from continuing operations (3,564) - 6,842 -
Impairment of Assets (82) 45 - 11,928
Merger and integration costs 29,306 4,252 37,998 15,340
Inventory step-up charges 10,285 - 10,285 2,884
Non-cash stock compensation expense 881 1,708 5,452 7,252
Loss on debt extinguishment - - - 12,529
Headquarters relocation 1,054 - 3,865 -
Loss portfolio transfer - - 2,826 -
Insurance reserve adjustments and fire casualty loss 1,967 - 3,026 -
Tax benefit from NOL adjustments (8,054) - (8,054) -
Other items 408 - 4,599 -
Recognition of previously unrecognized tax benefits - - (3,008) -
Tax effect of adjustments to net income (13,398) (2,153) (20,628) (18,234)
Adjusted net income 11,361 14,270 38,372 62,579
Diluted weighted avg. shares used to calculate Adjusted net income per diluted share 65,857 67,065 65,683 66,609
Adjusted net income per diluted share $0.17 $0.21 $0.58 $0.94
31
SUMMARY OF PRE-MERGER SBS INCOME STATEMENT
($ths) FY 2013 FY 2014 Q1 2015 Q2 2015 Q3 2015 Oct / Nov YTD Nov 2015
Net sales 1,197,037 1,295,716 297,620 350,065 358,540 217,650 1,223,875
Cost of sales 922,634 988,062 226,299 263,654 269,401 166,128 925,482
Gross profit 274,403 307,654 71,321 86,411 89,139 51,522 298,393
SG&A 254,935 279,717 69,925 74,655 75,286 44,456 264,322
Depreciation expense 5,890 6,731 2,075 2,243 2,493 1,684 8,495
Amortization expense 2,236 2,253 563 597 596 398 2,154
Impairment of assets held for sale 432 48 - - - - -
Merger and integration costs - - 207 3,262 1,183 10,353 15,005
Public offering transaction-related
costs
10,008 508 - - - - -
Restructuring expense 141 73 192 205 (14) - 383
Income (loss) from continuing
operations
761 18,324 (1,641) 5,449 9,595 (5,369) 8,034
Interest expense (3,793) (2,684) (711) (677) (745) (504) (2,637)
Other income, net 870 787 612 196 194 158 1,160
(Loss) income before income
taxes
(2,162) 16,427 (1,740) 4,968 9,044 (5,715) 6,557
Income tax expense (benefit) 2,874 6,340 (3,591) 2,437 3,020 (2,151) (285)
Income from discontinued
operations
401 332 8 39 7 - 54
Net (loss) income (4,635) 10,419 1,859 2,570 6,031 (3,564) 6,896
32