Building Products Quarterly
Economic overview Building Products, Building Materials, and Homebuilding companies continued their steady growth during the fourth quarter. New housing starts continue to rise after they topped the 1.1 million unit mark in 2015, and Residential Repair & Remodel and Commercial Construction spending are also experiencing growth rates in the high single digits. All but four of the Building Products subsectors grew their cumulative sales during the first quarter, with year-over-year growth rates mostly coming in stronger than in the previous quarter. Growth rates by subsector were as follows: Cabinetry (+27.2%, aided by Fortune Brands’ acquisition of Norcraft), Metal Structures (+15.3%, aided by acquisitions at both NCI and Gibraltar), Recreational Vehicles / Manufactured Housing (+14.8%, aided by acquisitions at both Drew and Patrick Industries), Distribution / Installation (+9.1%), Plumbing (+6.9%), Lighting (+6.0%), Roofing (+6.0%), Insulation (+5.9%), Windows & Doors (+2.7%), Siding & Decking (+2.2%), Glass (+1.6%), Flooring (+0.5%), and HVAC (+0.5%), while four sectors saw declines: Wood Products (-1.2%), Paint (-1.6%), Tools (-3.3%), and Locks & Security (-4.1%). Momentum carried into the first quarter with the announcement of a few large cap M&A deals including the announced acquisition of Valspar by Sherwin Williams, announced acquisition of Rona by Lowe’s, and the announced acquisition of Icopal by GAF. Middle market M&A activity also continued unabated. Debt activity remained robust, while equity markets activity was very quiet with a secondary offering by Builders FirstSource marking the sole transaction during the quarter. Building Material companies also increased their top line by a combined 5.5%, aided by continuous acquisition activity at Summit Materials and U.S. Concrete. These two companies were also the only ones to issue new debt during the quarter. Public homebuilders continue to grow their top line at a very fast clip (+21.7%). This marked the fifth period out of the last six quarters that homebuilders have grown their top line by over 20% year-over-year. Despite lower affordability, higher household formation and rising rents continue to sustain steady growth in housing starts. Of note, PulteGroup acquired John Wieland Homes for $540 million. In addition, The New Home Company completed a secondary equity offering, while Woodside Homes withdrew its IPO filing during the quarter.
Construction spending Construction spending was $1,113.2 billion over the February 2016 TTM period Residential Spending increased to $429.5 billion in February 2016 Nonresidential Spending increased to $ 683.7 billion in February 2016 1,200
$ in billions
1,000
1,104 848
891
600
652
402
451
651
2002
2003
538
806
788
861
711
440
400
200
1,068 905
547
453 446
1,152
991 487
800
1,167
618
620
500
358
574
911
569
1,097
1,113
674
684
993
618
557
536
254
249
253
287
342
375
423
429
2009
2010
2011
2012
2013
2014
2015
LTM
0 2004
2005
2006
Residential
2007
2008
Nonresidential
Source: U.S. Census Bureau Disclosure: KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of KeyCorp and i ts subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. This report was not issued by our research department. The information contained in this report has been obtained from sources deemed to be reliable but is not represented to be complete, and it should not be relied upon as such. This report does not purport to be a complete analysis of any security, issuer, or industry and is not an offer or a solicitation of an offer to buy or sell any securities. This report is prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual person or entity.
1
Drivers of residential new construction
Unemployment Rate
Personal Savings Rate
12%
10%
10%
8% 8%
6% 6% 4.9%
5.1%
4%
4%
2%
2%
0% 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0% 2005
2016
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
30-Year Mortgage Rate[1]
Consumer Confidence 125
10%
100
8% 92.2
75
6%
50
4%
25
2%
0 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0% 2006
3.66%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: Bureau of Labor Statistics; Federal Reserve Bank of Philadelphia; The Conference Board; Freddie Mac [1] Upfront points stand at 0.6% currently
2
Housing starts 2.4
2.5 2.1
2.0
2.1
2.0 2.0
2.0
2.0 1.6 1.5
(millions)
1.5
1.3
1.5
1.5 1.5 1.4 0.9
1.5
1.3
0.3 0.3
0.9
1.3
0.5
0.6
0.6 0.5
1.0
1.0 1.0 1.0 1.0 1.0 1.0
1.3
0.4
0.7 0.6
1.7 1.7
0.4
1.8
1.8 1.6 1.6
1.6
1.5 0.6 1.3
1.2 0.4 0.6
1.7
1.5 0.5 0.6
1.2
0.4
0.5
1.7
1.0
0.6 0.7 0.7 1.1 1.1
1.4
0.6 0.5
0.4
1.0
0.3
1.2
0.2
1.3
1.5 1.5 1.4
0.3 0.2
0.3
0.3 0.3
1.2
1.1
1.2
0.9 0.9
1.1 1.1 1.1 0.9
0.3 0.3 0.3 0.3
0.7 0.7
1.2 1.1 1.1 1.0
0.9 0.8
1.0
1.8
0.3 0.3
0.3
0.3
Average: 1.4
1.4
1.1
0.3 0.9
0.9
1.5 1.4
0.9 0.8 0.8 0.8 0.8
1.6 1.6
0.4
0.2
0.4 0.4 1.3
1.2
1.2 0.4
0.4
0.3
1.5
1.7
1.1 1.2 1.1 1.2 1.1
1.3 1.3 1.2 1.3 1.4
1.5
1.6
1.0
0.8
1.7
0.3
1.5 1.0
0.6
0.3 0.6 0.6 0.6 0.2 0.1 0.1 0.2 0.4 0.5 0.4
0.4
1.3 0.4
0.4
0.6 0.7 0.5 0.6
0.9
0.0 1960 1962 1964 1966 1968 1970 19 72 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 19 98 2000 2002 2004 2006 2008 2010 2012 2014 2016E
Single Unit Starts
Multi Unit Starts
Drivers of repair & remodel spending Existing Home Sales
Existing Home Sale Prices $250,000
In Millions 8
$210,800
$200,000
Number of Units Sold (Saar)
6
5.1 mm
$150,000 4
$100,000
2
0 Feb-00
$50,000
Feb-02
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
Feb-14
Feb-16
$0 Feb-00
Feb-02
Feb-04
Feb-06
Feb-08
Feb-10
Feb-12
Feb-14
Feb-16
Source: U.S. Census Bureau; National Association of Homebuilders; National Association of Realtors
3
Home center retailer performance Change in Same Store Sales 15%
Same Store Sales
9%
7.1%
5.2%
3%
(3%)
(9%)
(15%) 2007
2008
2009
2010
2011
2012
2013
Lowe's Companies Inc.
2014
2015
The Home Depot, Inc.
Repair & Remodel Spending $160
148
143
141 134
133 122
115
$120
$s in billions
98 81 $80 66
65
66
72
147
115
119
121
126
100
85
74
57
$40
$0 1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Source: Home Depot and Lowe’s SEC filings; Joint Center for Housing Studies, Harvard University
4
Drivers of commercial construction ABI Index
PMI Index
75
75.0%
60
60.0%
50.3
49.5%
45
PMI
ABI
45.0%
30
30.0%
15
15.0%
0 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2016
Commercial Construction Activity 2,000
1,860 1,840 1,800 1,666 1,637
1,670
1,600
1,535
1,530 1,450
1,315 1,305 1,230
1,205
1,200 Square Feet (in millions)
1,340 1,210
1,335
1,315
1,130 980 985
1,350
1,528
1,470 1,460 1,410 1,400
1,260 1,245
1,350 1,2871 ,295
1,200
1,379
Average: 1,276
1,144
1,105 1,005
1,437 1,457 1,404
990 930
1,110 996
970
1,005 942
874
781
776
800
680 704
400
0 1967
1972
1977
1982
1987
1992
1997
2002
2007
2012
2017P
Source: The American Institute of Architects; Institute for Supply Management; NCI Investor Presentation
5
Market performance Stock Index Performance (through March 31, 2016) Building Products Index[1]
Building Materials Index[2]
Home Builders Index[3]
S&P 500
•
90-day: 8.5%
•
90-day: 13.2%
•
90-day: 1.0%
•
90-day: 2.3%
•
12-month: 5.6%
•
3-year: 40.5%
• •
12-month: 11.4% 3-year: 59.8%
• •
12-month: (8.8%) 3-year: 4.2%
• •
12-month: 0.0% 3-year: 31.9%
Building Products
70%
Building Materials
Home Builders
S&P 500
60%
59.8%
50% 40%
40.5%
30%
31.9%
20% 10%
4.2%
0%
During the past 3 months, returns on the Building Products Index registered a high of 8.5% and a low of (16.2%) During the past 3 months, returns on the Building Materials Index registered a high of 13.2% and a low of (15.9%) During the past 3 months, returns on the Home Builders Index registered a high of 1.3% and a low of (19.2%) During the past 3 months, returns on the S&P 500 had a high of 2.6% and a low of (9.1%)
(10%) (20%) (30%) Apr-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Investment Grade and High Yield Debt Spreads (through March 31, 2016) 1,000
A Index
BBB Index
BB Index
B Index
Spread to Maturity (bps)
800 664 600
443
400
236
200
148 0 Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Source: Bloomberg; Thomson Reuters [1] Includes AAON, ALLE, AMWD, AOS, APOG, AWI, AYI, BCC, BECN, BLD, BLDR, BXC, CREE, CSL, CSTE, CVCO, TSX:CWX, DOOR, DW, DXYN, FBHS, GFF, HDS, HUBB, HW, TSX: HWD, IBP, IIIN, IR, ASX:JHX, LII, LPX, LYTS, MAS, MHK, NCS, NTK, NX, OC, TSX:OSB, PATK, PGEM, PGTI, POOL, ROCK, SHW, SSD, STCK, SWK, TGLS, TILE, TREX, UFPI, WMS, LSE:WOS, WSO [2] Includes CBPX, EXP, MLM, SUM, USCR, USG, VMC [3] Includes AVHI, BZH, CAA, CCS, DHI, HOV, KBH, LEN, LGIH, MDC, MHO, MTH, NVR, NWHM, PHM, TMHC, TOL, TPH, UCP, WCIC, WLH
6
Building Products: Key company news 84 Lumber – 3/1/16: Launched new line of portable tiny homes, becoming the first-ever major retailer to tap into this new market Apex Tool Group – 2/8/16: Appointed James J. Roberts as CEO and a member of the Board of Directors Apogee Enterprises, Inc. – 12/1/15: Announced expansion of its flagship manufacturing facility in Owatonna, Minnesota, adding over 360,000 square feet to the site’s existing footprint of 1.2 million square feet Armstrong World Industries, Inc. – 3/16/16: Announced that the Securities and Exchange Commission has declared Armstrong Flooring’s Registration Statement on Form 10 effective Beacon Roofing Supply, Inc. – 3/11/15: Appointed Gregory Jorgensen as Vice President and Chief Accounting Officer Bluelinx Holdings Inc. – 1/26/16: Received notice from the New York Stock Exchange (NYSE) that it was not in compliance with NYSE Listed Company Manual because its average global market capitalization over a consecutive 30 trading-day period was less than $50 million and its stockholders’ equity was less than $50 million – 12/14/15: Announced the approval of stock split of 1:10 ratio by Board of Directors in its 2016 annual stockholders’ meeting BMC Stock Holdings, Inc. – 12/1/15: Appointed Peter Alexander as President, CEO and a member of the Board of Directors, Jim Major as Executive Vice President, Chief Financial Officer and Treasurer and David Bullock as Chairman of the Board of Directors Boise Cascade – 2/24/16: Announced the appointments of Richard Viola as a Senior Vice President of Sales and Marketing for Building Materials Distribution, Mike Brown as Vice President of Operations for Wood Products, Mary Jo Nyblad as Vice President of Commodity Sales and Marketing for Wood Products and Nate Jorgenson as Vice President of Engineered Wood Products Carlisle Companies Incorporated – 2/11/15: Announced the relocation of its headquarters from Charlotte, NC to Phoenix, AZ – 12/11/15: Announced the appointment of D. Christian Koch as CEO and a member of the Board of Directors Contech Engineered Solutions LLC – 2/24/16: Appointed Jim Waters as Chief Financial Officer Continental Materials Corporation – 12/31/15: Announced the retirement of Joseph J. Sum as Chief Financial Officer and appointed Mark S. Nichter as his successor Crystal Window & Door Systems, Ltd. – 2/15/16: Announced that it has started production of aluminum windows and patio doors at the new 336,500-square-foot northeastern Pennsylvania facility Dwyer Group, Inc. – 1/13/16: Appointed Lisa Zoellner as Chief Strategy and Marketing Officer Fortune Brands – 1/14/16: Appointed Brett E. Finley as President of Therma-Tru business unit, effective February 15, 2016 Source: Company websites
7
Building Products: Key company news (continued) Gibraltar Industries – 3/29/16: Announced retirement of Paul Murray as Senior Vice President of Human Resources and Organizational Development Headwaters Incorporated – 2/23/16: Announced acquisition of the technology to manufacture a wide variety of concrete products without the use of portland cement Hubbell Inc. – 12/30/15: Announced the retirement of Gary N. Amato as Executive Vice President, Electrical Segment – 12/23/15: Announced the reclassification of the Company's dual-class common stock into a single class of common stock – 12/9/15: Appointed Maria R. Lee as Vice President of Treasurer and Investor Relations Huttig Building Products Inc. – 3/31/16: Appointed Oscar A. Martinez as Chief Financial Officer Interface Inc. – 1/13/16: Appointed Jay D. Gould as President and Chief Operating Officer – 11/19/15: Announced the retirement of John R. Wells as Senior Vice President Jeld-Wen, Inc. – 11/16/15: Appointed Mark A. Beck as President and Chief Executive Officer Lighting Science Group Corporation – 4/1/16: Appointed Mark D. Gorton as Executive Vice President and Chief Financial Officer Masonite International Corporation – 12/22/15: Announced the approval of Masonite (Africa) Limited commencing voluntary business rescue proceedings under South African debtor relief laws Nortek, Inc. – 2/23/16: Appointed Michael J. Clarke, President and Chief Executive Officer as Interim Chief Financial Officer NCI Building Systems, Inc. – 1/8/16: Announced the promotion of Don Riley as President Patrick Industries, Inc. – 12/10/15: Announced the appointment of Andy L. Nemeth as Executive Vice President of Finance and Chief Financial Officer and Joshua A. Boone as Director of Corporate Finance PGT, Inc. – 12/7/15: Announced the appointment of Danielle Mikesell as Vice President of Marketing, R&D and Customer Service ProVia – 1/4/16: Announced that all corporate entities and products will be aligned under unified ProVia brand – 12/7/15: Announced the retirement of founder Bill Mullet and appointed him as Chairman of the Board
Source: Company websites
8
Building Products: Key company news (continued) Quanex Building Products Corporation
– 1/25/16: Announced the appointment of Scott Zuehlke as Vice President, Investor Relations and Treasurer Revolution Lighting Technologies, Inc. – 12/22/15: Announced that it has received notification from the NASDAQ stock market’s listing qualifications department that for the last 30 consecutive business days the Company’s bid price has closed below the minimum $1.00 per share required for continued inclusion under NASDAQ Listing Rule 5550(a)(2) Sealed Air Corporation – 2/22/16: Appointed Edwina Payne as Vice President and Chief Information Officer Tecnoglass Inc. – 12/22/15: Announced listing of secondary shares on Colombia Stock Exchange Thor Industries, Inc. – 3/21/16: Announced the expansion of production capacity at its Thor Motor Coach subsidiary with purchase of a 128,000square-foot production facility – 2/5/16: Appointed Matt Zimmerman as Chief Executive Officer of Keystone, Ryan Juday as President of CrossRoads RV, Jeff Runels as President of Keystone RV Company and Troy James as President of Dutchmen – 1/25/16: Announced the resignation of Andy Cripe as President of the Company’s CrossRoads subsidiary Watsco Inc. – 1/22/2016: Appointed Aaron J. Nahmad as President of the Company Westlake Chemical Corporation:
– 2/16/16: Announced that it has nominated ten independent directors to Axiall’s Board for 2016 Annual Meeting Winnebago Industries, Inc. – 12/21/15: Appointed Michael J. Happe as President and CEO and a member of Board of Directors – 12/1/15: Announced to expand its facilities through purchase of motorhome production facilities and equipment in Junction City, Oregon Winsupply Inc. – 1/29/16: Appointed Roland Gordon as President of the Company
Source: Company websites
9
Building Products: Operating performance (continued) $ in millions, except per share data Company METAL STRUCTURES NCI Building Systems Inc. Gibraltar Industries, Inc. Insteel Industries Inc. Associated Materials, LLC - Metal Products Total
Sales
Most Recent Quarter EBITDA Margin
$370 282 92 34 $779
$29 17 13 NA $59
Sales
Prior Year Quarter EBITDA Margin
7.9% 6.1% 13.9% NA 7.6%
$323 202 111 40 $676
$20 11 9 NA $39
Year-over-Year Change Sales EBITDA
6.1% 5.2% 8.1% NA 5.8%
14.6% 39.7% (16.5%) (14.0%) 15.3%
48.4% 64.8% 42.2% NA 51.4%
PAINT The Sherwin-Williams Company Masco Corporation - Decorative Architectural Products The Valspar Corporation - Paints Total
$2,605 420 291 $3,316
$367 89 12 $467
14.1% 21.2% 4.0% 14.1%
$2,569 438 363 $3,370
$233 84 36 $352
9.0% 19.2% 9.9% 10.5%
1.4% (4.1%) (19.7%) (1.6%)
57.7% 6.0% (67.2%) 32.7%
PLUMBING Masco Corporation - Plumbing Products Fortune Brands Home & Security, Inc. - Plumbing & Accessories Advanced Drainage Systems, Inc. Total
$846 359 207 $1,411
$147 76 16 $239
17.4% 21.1% 7.9% 16.9%
$804 335 181 $1,320
$133 64 16 $213
16.5% 19.0% 9.1% 16.1%
5.2% 7.0% 14.0% 6.9%
10.5% 19.2% (1.1%) 12.2%
RECREATIONAL VEHICLES / MANUFACTURED HOUSING Thor Industries Inc. Drew Industries Incorporated Patrick Industries Inc. Winnebago Industries, Inc. Cavco Industries, Inc. Skyline Corp. Total
$975 334 249 226 181 59 $2,024
$87 37 23 15 14 2 $178
8.9% 11.1% 9.3% 6.6% 7.5% 3.1% 8.8%
$852 289 190 235 147 50 $1,762
$51 26 14 13 11 1 $116
6.0% 9.1% 7.4% 5.5% 7.3% 1.0% 6.6%
14.4% 15.5% 31.2% (3.8%) 23.5% 18.2% 14.8%
69.9% 40.7% 65.7% 14.6% 27.1% 260.0% 53.4%
ROOFING Carlisle Companies Incorporated - Construction Materials Owens Corning - Building Materials (Roofing) Total
$484 368 $852
$95 63 $158
19.7% 17.1% 18.6%
$463 340 $803
$67 41 $108
14.6% 12.1% 13.5%
4.4% 8.2% 6.0%
41.5% 53.7% 46.1%
SIDING & DECKING Headwaters Incorporated Ply Gem Holdings, Inc - Siding, Fencing, and Stone Axiall Corporation - Building Products Trex Co. Inc. Associated Materials, LLC - Vinyl Siding Products Advanced Environmental Recycling Technologies, Inc. Total
$218 190 190 89 47 17 $752
$40 35 17 17 NA 2 $111
18.4% 18.5% 8.8% 18.7% NA 11.1% 14.7%
$200 192 202 74 54 14 $736
$34 30 9 13 NA 0 $86
16.9% 15.7% 4.4% 17.7% NA 0.0% 11.7%
9.4% (1.1%) (6.0%) 20.2% (11.7%) 22.1% 2.2%
18.9% 16.3% 85.6% 27.5% NA NA 28.5%
TOOLS Stanley Black & Decker, Inc. - Tools & Storage Griffon Corporation - Ames True Temper Q.E.P. Co., Inc. The L.S. Starrett Company P&F Industries Inc. Total
$1,831 118 77 54 18 $2,098
$343 NA 3 3 1 $350
18.7% NA 3.4% 5.6% 8.1% 16.7%
$1,880 133 75 64 18 $2,169
$339 NA 2 6 2 $349
18.1% NA 3.2% 9.4% 9.2% 16.1%
(2.6%) (11.1%) 3.9% (15.9%) (1.5%) (3.3%)
1.0% NA 10.8% (50.0%) (12.9%) 0.1%
WINDOWS & DOORS JELD-WEN, inc. Masonite International Corporation Ply Gem Holdings, Inc - Windows and Doors Masco Corporation - Other Specialty Products Quanex Building Products Corporation - Engineered Components Griffon Corporation - Clopay Building Products Fortune Brands Home & Security, Inc. - Windows and Doors Associated Materials, LLC - Vinyl Windows PGT, Inc. Total
$888 485 240 195 154 143 115 105 93 $2,418
NA 57 14 12 17 NA 17 NA 14 $131
NA 11.7% 5.9% 6.2% 10.8% NA 15.0% NA 15.5% 5.4%
$893 449 258 181 129 139 109 112 85 $2,354
NA 38 (2) 12 6 NA 11 NA 12 $77
NA 8.4% (0.8%) 6.6% 4.4% NA 10.4% NA 14.3% 3.3%
(0.6%) 8.1% (6.8%) 7.7% 19.5% 3.1% 4.7% (6.4%) 9.8% 2.7%
NA 50.7% NM 0.0% 191.8% NA 51.0% NA 19.0% 70.5%
WOOD PRODUCTS Weyerhaeuser Co. - Wood Products Louisiana-Pacific Corp. Boise Cascade Company - Wood Products Simpson Manufacturing Co., Inc. Total
$922 463 292 185 $1,862
$75 34 9 28 $145
8.1% 7.3% 3.0% 15.0% 7.8%
$947 454 317 167 $1,884
$86 (17) 34 21 $125
9.1% (3.7%) 10.8% 12.7% 6.6%
(2.6%) 2.1% (7.8%) 10.9% (1.2%)
(12.8%) NM (74.2%) 30.8% 16.6%
Source: SEC filings
10
Building Products: Operating performance $ in millions, except per share data Company
Sales
Most Recent Quarter EBITDA Margin
CABINETRY Fortune Brands Home & Security, Inc. - Kitchen and Bath Cabinetry Masco Corporation - Cabinets & Related Products Quanex Building Products Corporation - Cabinet Components American Woodmark Corp. Total
$608 254 49 219 $1,129
$71 25 13 23 $131
11.7% 9.8% 26.2% 10.4% 11.6%
DISTRIBUTION / INSTALLATION HD Supply Holdings, Inc. Builders FirstSource, Inc. Beacon Roofing Supply, Inc. Watsco Inc. BMC Stock Holdings, Inc. Boise Cascade Company - Building Materials Distribution Universal Forest Products Inc. Bluelinx Holdings Inc. TopBuild Corp. Pool Corp. Installed Building Products, Inc. The Hillman Companies, Inc. Huttig Building Products Inc. Associated Materials, LLC - Third Party Manufactured Products CCOM Group, Inc. Jewett-Cameron Trading Company Ltd. Total
$1,648 1,456 976 904 728 707 654 428 426 415 191 179 155 72 22 12 $8,975
$167 76 73 59 38 18 41 4 46 12 23 23 3 NA 1 1 $587
10.1% 5.2% 7.5% 6.5% 5.2% 2.6% 6.3% 1.0% 10.8% 2.9% 12.3% 13.0% 1.8% NA 2.9% 8.0% 6.5%
FLOORING Mohawk Industries Inc. Armstrong World Industries, Inc. Interface Inc. The Dixie Group, Inc. Total
$1,998 577 247 108 $2,930
$371 76 35 5 $487
$265 238 66 $570
Sales
Prior Year Quarter EBITDA Margin
$45 0 NA 15 $60
9.9% 0.0% NA 7.7% 6.7%
33.3% 4.5% NA 15.7% 27.2%
56.6% NA NA 55.5% 119.3%
$1,543 1,481 596 877 629 669 620 454 398 376 145 181 145 78 21 8 $8,223
$155 67 34 57 29 13 25 2 20 5 15 32 1 NA 1 1 $457
10.0% 4.5% 5.8% 6.5% 4.5% 1.9% 4.0% 0.4% 5.1% 1.4% 10.5% 17.4% 1.0% NA 2.9% 7.5% 5.6%
6.8% (1.7%) 63.8% 3.1% 15.7% 5.7% 5.4% (5.7%) 7.1% 10.3% 31.8% (1.0%) 7.0% (7.5%) 4.6% 49.6% 9.1%
7.7% 13.7% 113.2% 3.3% 32.7% 41.0% 65.6% 121.0% 126.1% 138.2% 54.1% (26.0%) 100.0% NA 3.1% 60.4% 28.4%
18.6% 13.2% 14.3% 4.7% 16.6%
$1,951 587 272 105 $2,915
$318 81 37 3 $439
16.3% 13.8% 13.7% 2.7% 15.1%
2.4% (1.7%) (9.4%) 3.0% 0.5%
16.4% (6.2%) (5.1%) 82.1% 10.9%
$51 36 13 $100
19.3% 15.0% 19.8% 17.6%
$272 244 44 $561
$46 28 13 $87
17.0% 11.6% 29.0% 15.6%
(2.6%) (2.5%) 50.2% 1.6%
10.8% 25.7% 2.8% 14.5%
$4,122 3,326 834 639 631 97 62 35 $9,746
$700 472 67 123 68 24 9 3 $1,466
17.0% 14.2% 8.0% 19.3% 10.7% 24.3% 14.7% 8.5% 15.0%
$4,192 3,241 813 627 637 85 70 33 $9,697
$710 431 63 89 71 20 9 (2) $1,391
16.9% 13.3% 7.7% 14.2% 11.2% 24.1% 13.2% (7.2%) 14.3%
(1.7%) 2.6% 2.6% 2.0% (0.9%) 14.8% (12.2%) 5.4% 0.5%
(1.4%) 9.7% 6.4% 38.4% (5.2%) 15.8% (2.2%) NM 5.4%
$518 21 $539
$96 2 $98
18.5% 7.5% 18.1%
$490 19 $509
$71 (1) $70
14.5% (3.1%) 13.8%
5.7% 10.3% 5.9%
35.2% NM 38.6%
LIGHTING Hubbell Inc. Acuity Brands, Inc. Cree, Inc. LSI Industries Inc. Revolution Lighting Technologies, Inc. Lighting Science Group Corporation Orion Energy Systems, Inc Energy Focus, Inc. Total
$830 737 436 85 44 20 26 17 $2,194
$140 140 71 7 4 1 (4) 2 $362
16.9% 19.0% 16.2% 8.5% 10.1% 3.7% (14.0%) 9.3% 16.5%
$849 647 413 85 27 23 17 9 $2,070
$142 115 73 5 1 (15) (1) 0 $319
16.7% 17.8% 17.7% 5.4% 3.5% (66.7%) (5.1%) 0.0% 15.4%
(2.3%) 13.8% 5.5% (0.0%) 61.6% (15.2%) 56.0% 95.0% 6.0%
(1.3%) 21.9% (3.2%) 56.0% 371.8% NM NM NA 13.2%
LOCKS & SECURITY Allegion Plc Stanley Black & Decker, Inc. - Security Spectrum Brands Holdings, Inc. - Hardware & Home Improvement Fortune Brands Home & Security, Inc. - Security & Storage Total
$545 538 283 144 $1,510
$118 101 51 22 $291
21.6% 18.8% 17.9% 15.0% 19.3%
$574 590 271 139 $1,574
$118 102 49 18 $287
20.5% 17.2% 18.1% 13.1% 18.2%
(4.9%) (8.8%) 4.2% 3.3% (4.1%)
0.3% (0.6%) 3.3% 18.1% 1.6%
GLASS PPG Industries, Inc. - Glass Apogee Enterprises, Inc. Tecnoglass Inc. Total HVAC United Technologies Corporation - Climate, Controls & Security Ingersoll-Rand Plc - Climate Solutions Lennox International, Inc. AO Smith Corp. Nortek Inc. AAON Inc. Burnham Holdings, Inc. Continental Materials Corp. Total INSULATION Owens Corning - Building Materials (Insulation) LaPolla Industries, Inc. Total
$456 243 NA 189 $888
Year-over-Year Change Sales EBITDA
Source: SEC filings
11
Building Products: Recent M&A activity Close Date
Target (Seller)
3/31/16
U.S. LBM Holdings LLC,
Acquirer American Lumber Corp
Valuation
Highlights
Not Disclosed
American Lumber Corp, also known as ALCO Doors, manufactures interior and
exterior doors for commercial and residential use The acquisition will enable U.S. LBM Holdings to increase its presence in the
Northeast 3/19/16[1]
3/17/16
[1]
3/7/16[1]
The Valspar Corporation
The Sherwin-Williams Company
Window Coverings Business of Newell Rubbermaid Inc. incl. Levolor® and Kirsch®
Hunter Douglas N.V.
Service Experts LLC (American Capital, Ltd.)
EnerCare Solutions Inc.
$11,300.0 million EV 2.7x Revenue 16.3x EBITDA $270.0 million 0.9x Revenue
The Valspar Corporation develops, manufactures and distributes a range of
coatings, paints and other related products worldwide The acquisition will enable The Sherwin-Williams Company to expand its brand
portfolio, customer base and presence in global paints and coating market These brands are leaders in the everyday style market segment and are some of the
oldest and most recognized window coverings in North America The acquisition will enable Hunter Douglas N.V. to expand its brand portfolio and
increase its strong presence in the premium custom window coverings segment $340.8 million EV
Service Experts LLC sells, repairs and installs heating, ventilation, and air
conditioning equipment for home and commercial applications in North America The acquisition will enable EnerCare Solutions Inc.to expand its product portfolio and
consolidate its position in North America’s home service industry 3/7/16
3i Supply Company
Distribution International, Inc.
Not Disclosed
SEAL-KRETE (Clayton Corporation)
RPM International
Not Disclosed
Wrench Group Inc.
Investcorp Bank B.S.C.
3i Supply Company distributes industrial and commercial insulation products The acquisition will enable Distribution International, Inc. to expand its fabrication
capabilities and increase its customer base in Michigan 3/3/16
SEAL-KRETE manufactures concrete care coatings and sealants The acquisition will enable Rust-Oleum Corporation to expand its concrete care
product offering and increase its distribution network in Missouri 3/3/16
Not Disclosed
Wrench Group Inc. provides essential home maintenance and repair services,
including heating, ventilation and air conditioning, plumbing and electrical services The acquisition will enable Investcorp to expand into attractive end markets
3/3/16
The Progressive Group
Patrick Industries, Inc.
$11 million EV 0.5x Revenue
The Progressive Group distributes mobile and home electronic products The acquisition will enable Patrick Industries, Inc. to capitalize on its existing Quest
Audio Video electronics platform and nationwide geographic footprint to expand its presence in the electronics distribution market VFG Group fabricates architectural, industrial, commercial and custom applications The acquisition will enable Trulite Glass & Aluminum Solutions to increase its presence in the Canadian market Tecta America Corp. offers services in the areas of new construction, roofing, repairs, planned maintenance, disaster response and environmental solutions The acquisition will enable Onyx Renewable Partners to increases its solar and roofing solution capabilities Flair Interiors, Inc. manufactures and supplies interior parts for recreational vehicles The acquisition will enable Lippert Components, Inc. to expand its manufacturing capabilities and increase its customer base in the United States
3/2/16
VFG Group
Trulite Glass & Aluminum Solutions
Not Disclosed
2/29/16
Solar Division of Tecta America Corp.
Onyx Renewable Partners
Not Disclosed
2/29/16
Flair Interiors, Inc.
Drew Industries
$8.1 million EV
2/29/16
Parkland Plastics, Inc.
Patrick Industries, Inc.
$25 million EV 0.8x EBITDA
Parkland Plastics, Inc. manufactures recycled polymer-based architectural panels
Not Disclosed
Kern Door Company Inc. installs garage door systems to commercial and residential
The acquisition will enable Patrick Industries, Inc. to expand its product portfolio and
increase its customer base in architectural, industrial and other markets 2/29/16
Kern Door Company Inc.
Installed Building Products, Inc.
customers The acquisition will enable Installed Building Products, Inc. to expand its door
installation capabilities and product portfolio 2/25/16[1]
2/24/16[1]
Window and Door Profiles Business of Royal Group, Inc. (Axiall Corporation) InterWrap, Inc. (Quad-C Management, Inc.)
OpenGate Capital, LLC
Not Disclosed
Royal Group, Inc. designs, manufactures and distributes building materials for the
home remodeling, building, and municipal construction markets The acquisition will enable OpenGate Capital, LLC to increase its scope of activities
in the building product s sector Owens Corning
$450 million EV 1.8x Revenue
InterWrap, Inc. manufactures coated woven packaging products and multi-layer
laminated reinforced plastic substrates The acquisition will enable Owens Corning to expand into new applications and
increase its position in the roofing components segment 2/18/16
Roof Systems of Maine
Tecta America
Not Disclosed
Roof Systems of Maine, Inc. provides commercial and industrial roofing services in
Maine and New Hampshire The acquisition will enable Tecta America to expand its scope of activities in the
building products industry 2/16/16
WinDoor Incorporated and LTE, LLC
PGT Industries, Inc.
$102.0 million EV
WinDoor Incorporated and LTE, LLC manufactures extruded aluminum and vinyl
sliding glass doors and window systems The acquisition will enable PGT Industries, Inc. to expand its product portfolio and
manufacturing capabilities across the United States
Source: Company filings; Capital IQ [1] Announcement Date
12
Building Products: Recent M&A activity (continued) Close Date
Target (Seller)
2/15/16
True Textiles, Inc. (LBC Credit Partners, Inc., Sun Capital Partners and Thomas H. Lee Partners)
Duvaltex Inc.
Nationwide Industries Inc. (P&F Industries Inc. )
Argosy Capital
2/12/16
Acquirer
Valuation Not Disclosed
Highlights True Textiles, Inc. designs, manufactures and sells commercial textiles for
corporate, healthcare, education, and hospitality markets in North America The acquisition will enable Duvaltex Inc. to expand its capabilities in commercial or
contract interior fabrics in the United States and Canada $22.2 million EV
Nationwide Industries Inc. designs and manufactures hardware products and
components for the building materials industry The acquisition will enable Argosy Capital to expand it investment portfolio in building
products industry 2/9/16
2/8/16
Nut & Bolt Products Inc. (Frieda Woronowski and Douglas Garis)
H&S Sales, Inc.
Not Disclosed
Nut & Bolt Products, Inc. distributes various fasteners The acquisition will enable H&S Sales, Inc. to expand its geographic presence in
Western New York The three companies in California and Ontario manufacture high-end, specialty-niche
Metro Roof Products, Headwaters Roofing Enviroshake and Steel Rock Group Roof Products
Not Disclosed
Rona Inc.
$2,188.4 million 0.7x Revenue 14.1x EBITDA
Rona Inc. engages in the distribution and retail of hardware, building materials and
Not Disclosed
Marshall Insulation, LLC provides home insulation contracting services to residential
roofing The acquisition will enable Headwaters Roofing Group to expand its strong presence
in the roofing industry 2/3/16[1]
Lowe's Companies Canada, ULC
home renovation products in Canada The acquisition will enable Lowe's Companies Canada, ULC to increase its strong
presence and create a leading home improvement retailer in the Canadian market 2/2/16
Marshall Insulation, LLC
Installed Building Products, Inc.
and commercial clients in Phoenix The acquisition will enable Installed Building Products, Inc. to expand its customer
base in Arizona 2/2/16
Cascade Windows, Inc. (Altamont Capital Partners)
CenterOak Partners LLC
Not Disclosed
Cascade Windows, Inc. designs, manufactures and sells vinyl windows and sliding
glass doors for homeowners, builders and architects in the Western United States The acquisition will enable CenterOak Partners LLC to expand its investments in
Residential and commercial markets 2/2/16
Robert N. Karpp Company, Inc.
GMS Inc.
Not Disclosed
Robert N. Karpp Company, Inc. supplies drywall specialty products The acquisition will enable GMS Inc. to expand its geographic footprint
2/1/16
Parker's Building Supply
US LBM Holdings, LLC
Not Disclosed
Parker Building Supplies, is an independent Timber and Heavyside Builders'
Merchant based in the Southeast, supplying both the retail and trade sectors The acquisition will enable US LBM Holdings, LLC to expand its product portfolio and
increase its geographical footprint 1/27/16
1/27/16
1/25/16
Wolf-Gordon, Inc. (Corinthian Capital Group, LLC) Highwater Marine Furniture Division, Bennington Marine, LLC
Saw Mill Capital LLC
Key Green Builder Services, LLC
Installed Building Products, Inc.
Not Disclosed
Wolf-Gordon, Inc. provides interiors for commercial markets The acquisition will enable Saw Mill Capital LLC to expand its investments in the
commercial market Lippert Components, Inc. (Drew Industries)
$10.0 million EV 0.5x Revenue
Division of Bennington Marine manufactures various pontoon furniture The acquisition will enable Lippert Components, Inc. to expand its marine furniture
capacity by adding the Highwater manufacturing facility in Elkhart Not Disclosed
Key Green Builder Services, LLC, provides insulation installation services to
customers in Central and South Texas The acquisition will enable Installed Building Products, Inc. to expand its strong
presence and increase the market share in Central and South Texas 1/25/16
Icopal a/s
GAF Corporation
€1.0 billion
Icopal is a leader in modified bitumen membranes and has a significant and growing
presence in single-ply and liquid roofing products The acquisition will enable GAF to leverage best practices and technologies on both
sides of the Atlantic 1/21/16
Building & Wind Business Unit of Ahlstrom Oyj
Owens Corning
$79.5 million EV
Ahlstrom Oyj develops, manufactures and markets fiber-based materials worldwide The acquisition will enable Owens Corning to provide technology, talent and broad
access to markets 1/14/16
1/13/16
Atlas Trillo Heating & Air Conditioning Inc.
American Residential Services LLC
Not Disclosed
HeathCo LLC (The Chamberlain Group, Inc.)
Transom Capital Group
Not Disclosed
Atlas Trillo Heating & Air Conditioning Inc. offers HVAC, plumbing, refrigeration, duct
cleaning, replacement and design, preventative maintenance contracts and repair services The acquisition will enable American Residential Services LLC to expand its geographic footprint in California HeathCo LLC manufactures and markets electrical products, door chimes, motion activated lighting and lighting controls for retail sale The acquisition will enable Transom Capital Group to expand its investment portfolio in electronic components and equipment industry
Source: Company filings; Capital IQ [1] Announcement Date
13
Building Products: Recent M&A activity (continued) Close Date
Target (Seller)
1/12/16
R.F. Supply, Inc.
1/12/16
Aspen Air Conditioning Inc.
Acquirer
Valuation
Highlights
Trulite Glass & Aluminum Solutions, LLC
Not Disclosed
R.F. Supply, Inc. distributes fabricated and flat glass products
American Residential Services LLC
Not Disclosed
The acquisition will enable to Trulite Glass & Aluminum Solutions, LLC to meet the
rapidly increasing demand for quality fabricated products
Aspen Air Conditioning Inc. engages in installation and maintenance of air
conditioners The acquisition will enable American Residential Services LLC to expand its strong
presence in Florida market 1/7/16
Darby Doors, Inc.
US LBM Holdings, LLC
Not Disclosed
Darby Doors, Inc. manufactures and sells doors, millwork, hardware and building
specialties The acquisition will enable US LBM Holdings, LLC to expand its capabilities and
customer base 1/7/16
Paradigm Window Solutions
CapitalWorks LLC
Not Disclosed
Paradigm Window Solutions manufactures premium-quality and Energy Star-rated
vinyl windows and patio doors The acquisition will enable CapitalWorks LLC to increase its portfolio of companies in
the building products segment 1/6/16
SunSetter Products, LP
Springs Window Fashions LLC
Not Disclosed
SunSetter Products, LP manufactures deck and patio awnings in America The acquisition will allow Springs Window Fashions LLC to expand its product
portfolio and geographic presence in America 1/5/16[1]
Blue Heron Enterprises, LLC and Fox Chase Enterprises, LLC
Simpson Strong-Tie Company Inc.
Not Disclosed
Blue Heron Enterprises, LLC manufactures EB-TY (R) hidden deck fastening system Fox Chase Enterprises, LLC manufactures Lumber Loc (R) hidden deck fastening
system based in the United States The transaction will enable Simpson Strong-Tie Company Inc. to expand its product
portfolio and services 1/5/16
Gypsum Supply Co., Inc.
GMS Inc.
Not Disclosed
Gypsum Supply Co., Inc. supplies drywall and plaster products to building
contractors The acquisition will enable GMS Inc. to enhance its presence in Michigan and
Northwest Ohio market 1/4/16
Construction Resources, Inc. and Builder Specialties, Inc.
Monomoy Capital Partners
Not Disclosed
Construction Resources, Inc. and Builder Specialties, Inc. distribute building products
for home builders in the Southeast The acquisition will enable Monomoy Capital Partners to increase its portfolio of
companies in the building products segment 12/31/15
Westview Products, Inc.
Sierra Pacific Windows, Inc.
Not Disclosed
Westview Products, Inc. develops sunrooms, window walls, monumental skylights
and curtain walls for both residential and commercial projects The acquisition will enable Sierra Pacific Windows, Inc. to expand its product
portfolio 12/31/15
JC Licht, LLC (Benjamin Moore)
Private Investors incl. Elliot Greenberg
Not Disclosed
JC Licht, LLC offers interior and exterior paints, primers, interior stains and finishes The acquisition will give the company the management and upgrades to make
significant improvements to current procedure 12/30/15
Rooftek Roofing Supplies
ABC Supply Co., Inc.
Not Disclosed
Rooftek Roofing Supplies, Inc. supplies floors and roofing products The transaction will enable ABC Supply Co., Inc. to expand its product portfolio and
services 12/29/15
Statewide Wholesale, Inc.
Beacon Roofing Supply, Inc.
Not Disclosed
US LBM Holdings, LLC
Not Disclosed
Statewide Wholesale, Inc. distributes roofing material and supplies The transaction will enable Beacon Roofing Supply, Inc. to expand its product
portfolio and geographic presence in Denver, CO 12/28/15
Seifer Kitchen Design Center of Pine Brook
Seifer Kitchen Design Center of Pine Brook provides a wide range of cabinetry and
countertop products and services The transaction will enable Direct Cabinet Sales, Inc. to expand its product portfolio
and services 12/23/15
12/22/15[1]
Nexgen Inc.
Trend Windows & Doors Pty Ltd.
US LBM Holdings, LLC
JELD-WEN, Inc.
Not Disclosed
Not Disclosed
Nexgen Inc. engages in the supply of roof & floor trusses, hangers and accessories,
wall panels, hardware, paint, power tools, cabinetry, lumber and lawn and garden tools The transaction will enable US LBM Holdings, LLC to expand its product portfolio and services in the Upper Midwest Trend Windows & Doors Pty Ltd. manufactures and markets aluminum, timber, and thermal energy efficient windows and doors in Australia The acquisition will enable JELD-WEN, Inc. to expand its geographical footprint in Australia
Source: Company filings; Capital IQ [1] Announcement Date
14
Building Products: Recent M&A activity (continued) Close Date
Target (Seller)
12/21/15[1]
Engineered Lumber Business, Georgia-Pacific LLC
Acquirer Boise Cascade Company
NPI Holding Corp
Grupo Verzatec
Valuation
Highlights
$215 million EV 5.4x EBITDA
Georgia-Pacific LLC engineered lumber production facilities at Thorsby, AL and Roxboro,
Not Disclosed
NPI Holding Corp provides innovative interior panel solutions for commercial markets
NC comprises lumber production mills The acquisition will enable Boise Cascade Wood Products, LLC to expand its engineered
wood products business which expects to increase $40 million of EBITDA mid-cycle 12/21/15
The acquisition will enable Grupo Verzatec to provide an unparalleled offering to their
customers 12/18/15
Roofing & Insulation Supply
Beacon Roofing Supply, Inc.
Not Disclosed
Roofing & Insulation Supply, Inc. operates as a wholesale distributor of roofing,
insulation, sheathing and related materials The acquisition will enable Beacon Roofing Supply, Inc. to expand its geographical
footprint in the Western United States 12/15/15
All-American Scaffold LLC
Safway Group Holding LLC
Not Disclosed
All-American Scaffold LLC provides scaffolding and shoring products and related
equipment for commercial or residential new construction or remodeling jobs The acquisition will help Safway Group Holding LLC to increase its comprehensive
coverage in Iowa and throughout the central region 12/15/15
Arrow Storage Products Inc.
ShelterLogic Corp.
Not Disclosed
Arrow Storage Products Inc. is engaged in the design, manufacturing and marketing of
DIY outdoor steel storage solutions The acquisition will help ShelterLogic Corp. to expand its product portfolio and
capabilities in the sheltering and storage category 12/9/15
CMA Supply Co., Inc. (Matrix Capital markets Group, Inc.)
Carter-Waters LLC
BioFoam of North Carolina, LLC
Installed Building Products, Inc.
Not Disclosed
CMA Supply Co., Inc. is a supplier of concrete and masonry accessories in the United
States The acquisition will help Carter-Waters LLC to increase its geographical footprint in the
Missouri, Kansas and Illinois 12/8/15
Not Disclosed
BioFoam of North Carolina, LLC, doing business as Prime Energy Group, installs spray
foam insulation for residential and commercial customers The acquisition will enable Installed Building Products, Inc. to expand its presence in the
strong North Carolina housing market 12/7/15
JW Millwork, LLC
Cedar Creek Wholesale, Inc.
Not Disclosed
JW Millwork, LLC operates a molding and millwork reload distribution center in the United
States The acquisition will enable Cedar Creek Wholesale, Inc. to expands its product offerings
in operating region of the United States 12/1/15
Badgerland Supply, Inc.
GMS Inc.
Not Disclosed
Badgerland Supply, Inc. supplies building materials to Wisconsin and Northern Illinois The acquisition will enable GMS Inc. to increase its portfolio of brands and geographical
12/1/15
Elite Door & Trim, Inc.
National Millwork Inc.
Not Disclosed
Elite Door & Trim, Inc. manufactures doors, hardware and trim products
footprint in Wisconsin The acquisition will help National Millwork Inc. to expand its manufacturing capabilities in
by 2016 12/1/15
Premier Envelope Ltd.
Supremex Inc.
Not Disclosed
Premier Envelope Ltd. manufactures commercial, custom and specialty envelopes for
financial institutions, commercial printers, paper companies, and others The acquisition will help Supremex Inc. to expand its manufacturing capabilities and
increase its customer base in Western Canada 12/1/15
RCI Roofing Supply Company, Inc.
Beacon Roofing Supply, Inc.
Not Disclosed
RCI Roofing Supply Company, Inc. distributes building supplies and materials for
residential and commercial projects throughout the Midwest The acquisition will help Beacon Roofing Supply, Inc. to increase its customer base
across Nebraska, Iowa and Colorado region 12/1/15
E.J. Bartells
Distribution International, Inc.
Not Disclosed
E.J. Bartells, supplier of mechanical and industrial insulation, fabrication, refractory and
HVAC products throughout the Pacific Northwest & Western states The acquisition will help Distribution International, Inc. to expand its product offering in
the Pacific Northwest and Western states of United States 11/19/15
THV Holdings LLC
Soft-Lite LLC
Not Disclosed
THV Holdings offers composite windows, entry doors and storm doors The acquisition will provide Soft-Lite with 100,000 square feet of additional manufacturing
space and the ability to expand their current product offering 11/17/15
M3 Glass Technologies
LongWater Opportunities LLC
Not Disclosed
M3 Glass Technologies produces and sells custom fabricated and decorative glass
products for customers in the United States and internationally The acquisition will enable LongWater Opportunities LLC to bolster the portfolio of
companies in the construction material segment 11/16/15
Action Fire Fab & Supply Inc.
Ferguson Enterprises, Inc.
Not Disclosed
Action Fire Fab & Supply Inc. supplies fire protection solutions The acquisition will enable Ferguson Fire & Fabrication, Inc. to expand its product
portfolio in the fire protection industry
Source: Company filings; Capital IQ [1] Announcement Date
15
Building Products: Recent debt transaction activity Close Date
Company
Type
4/1/16
Boise Cascade Company
Term Loan
3/29/16
Binswanger Enterprises
Mezzanine Capital
3/22/16
Griffon Corporation
3/15/16
Amount (MM)
Use of Proceeds
Maturity
Coupon / Spread
Acquisition Purposes
$75.0
Mar-26
L + 200
NA
NA
NA
NA
Revolving Credit Facility
Debt Refinancing
$350.0
Mar-21
L + 225
Ingersoll-Rand Global Holding Company Limited
Revolving Credit Facility
General Corporate Purposes
$1,000.0
Mar-21
L +1 25
3/10/16
Masco Corporation
Senior Notes
Debt Refinancing
$500.0
Apr-26
4.375%
3/10/16
Masco Corporation
Senior Notes
Debt Refinancing
$400.0
Apr-21
3.500%
3/4/16
Armstrong World Industries
Term Loan B
Debt Refinancing
$250.0
Mar-23
L + 325
3/1/16
Mohawk Industries, Inc.
Term Loan
General Corporate Purposes
$200.0
Mar-19
L + 125
3/1/16
Installed Building Products, Inc.
Senior Credit Facility
Acquisition Purposes
$325.0
Mar-21
L + 150-250
2/23/16
Hubbell Incorporated
Senior Notes
General Corporate Purposes
$400.0
Mar-26
3.35%
2/19/16
Associated Materials, LLC
First-lien Term Loan
General Corporate Purposes
$27.5
Jun-18
L + 425
2/1/16
Bluelinx Holdings Inc.
Term Loan
Debt Refinancing
$159.8
Jul-19
6.35%
2/1/16
PGT, Inc.
Term Loan B
Debt Refinancing
$270.0
Jan-22
L + 575
1/13/16
Trex Co. Inc.
Revolving Credit Facility
Debt Refinancing
$250.0
Jan-21
NA
12/18/15
Stanley Black & Decker, Inc.
Revolving Credit Facility
Debt Refinancing
$1,750.0
Dec-20
NA
12/21/15
Hubbell Incorporated
Revolving Credit Facility
General Corporate Purposes
$1,250.0
Dec-21
NA
12/10/15
Mohawk Industries, Inc.
A/R Securitization Facility
Debt Refinancing
$500.0
Dec-16
NA
12/10/15
Gibraltar Industries, Inc.
Revolving Credit Facility
Asset-based Revolver
$300.0
Dec-20
L + 175
BMC Stock Holdings, Inc.
Revolving Credit Facility
Corporate Purposes
$450
Dec-20
L + 125
11/24/15
US LBM Holdings, LLC
First-lien Term Loan
Debt Refinancing
$40.0
Aug-22
L + 525
11/20/15
Pool Corporation
Revolving Credit Facility
Debt Refinancing
$465.0
Nov-20
NA
11/19/15
ABC Supply
Senior notes
Debt Refinancing
$350.0
Dec-23
5.75%
12/1/15
Building products: Recent equity markets activity Offer Date 11/20/15
Company Builders FirstSource, Inc.
Type Follow-On Equity Offering
Gross Amount (MM)
Shares Offered $92.8
7,000,000
Offering Price $13.25
Source: Company filings; Capital IQ
16
Building Products: Public trading levels $ in millions, except per share data Company Manufacturing (Large Cap) The Sherwin-Williams Company Ingersoll-Rand Plc Stanley Black & Decker, Inc. Mohawk Industries Inc. Masco Corporation Fortune Brands Home & Security, Inc. Acuity Brands, Inc. Allegion Plc Owens Corning Lennox International, Inc. Carlisle Companies Incorporated AO Smith Corp. Hubbell Inc. James Hardie Industries plc
Share Price
March 31, 2016 Market Enterprise Cap Value
$284.67 $62.01 $105.21 $190.90 $31.45 $56.04 $218.14 $63.71 $47.28 $135.19 $99.50 $76.31 $105.93 $12.56
$26,994 $16,054 $15,939 $14,140 $10,643 $8,769 $9,624 $6,170 $5,511 $6,125 $6,473 $6,760 $6,000 $5,599
$28,751 $19,619 $19,399 $17,287 $12,543 $9,706 $9,416 $7,521 $7,326 $6,830 $6,811 $6,363 $6,297 $6,028
Sales
$11,339 $13,301 $11,172 $8,072 $7,142 $4,579 $2,796 $2,068 $5,350 $3,467 $3,543 $2,537 $3,390 $1,704
LTM Adjusted EBITDA EBITDA Margin
$1,813 $1,881 $1,787 $1,469 $1,054 $649 $458 $446 $841 $440 $642 $462 $594 $420
Median Mean Manufacturing (Mid Cap) Armstrong World Industries, Inc. Cree, Inc. Norbord, Inc. Masonite International Corporation Louisiana-Pacific Corp. Nortek Inc. Headwaters Incorporated Ply Gem Holdings, Inc Advanced Drainage Systems, Inc. Drew Industries Incorporated Simpson Manufacturing Co., Inc. Griffon Corporation Trex Co. Inc. AAON Inc. NCI Building Systems Inc. Interface Inc. Apogee Enterprises, Inc. CaesarStone Sdot-Yam Ltd. American Woodmark Corp. Gibraltar Industries, Inc. Median Mean
$48.37 $29.10 $19.93 $65.50 $17.12 $48.29 $19.84 $14.05 $21.30 $64.46 $38.17 $15.45 $47.93 $28.00 $14.20 $18.54 $43.89 $34.35 $74.59 $28.60
$2,694 $2,927 $1,717 $2,039 $2,454 $792 $1,512 $958 $1,127 $1,582 $1,848 $699 $1,490 $1,502 $1,043 $1,222 $1,288 $1,211 $1,232 $901
$3,463 $2,515 $2,483 $2,432 $2,383 $2,160 $1,971 $1,921 $1,863 $1,620 $1,589 $1,549 $1,491 $1,471 $1,403 $1,360 $1,217 $1,172 $1,070 $1,041
$2,420 $1,653 $1,509 $1,872 $1,893 $2,526 $914 $1,840 $1,178 $1,403 $794 $2,008 $441 $359 $1,611 $1,002 $966 $500 $913 $1,041
$391 $134 $116 $183 $67 $267 $172 $185 $131 $164 $141 $171 $92 $83 $140 $144 $119 $123 $101 $90
Net Debt / EBITDA
Enterprise Value / EBITDA LTM CY2016 CY2017
Price / EPS CY2016 CY2017
16.0% 14.1% 16.0% 18.2% 14.8% 14.2% 16.4% 21.5% 15.7% 12.7% 18.1% 18.2% 17.5% 24.6%
1.0x 1.9x 1.9x 2.1x 1.6x 1.4x (0.5x) 3.0x 2.1x 1.6x 0.5x (0.9x) 0.5x 1.0x
15.9x 10.4x 10.9x 11.8x 11.9x 15.0x 20.6x 16.9x 8.7x 15.5x 10.6x 13.8x 10.6x 14.4x
14.7x 10.2x 10.4x 10.6x 10.7x 12.7x 15.7x 14.6x 7.7x 13.1x 9.9x 12.4x 11.0x 12.8x
13.5x 9.6x 9.8x 9.9x 9.8x 11.3x 13.3x 13.4x 7.1x 12.0x 9.4x 11.3x 10.2x 11.2x
22.9x 15.9x 17.1x 16.0x 21.3x 22.5x 27.9x 19.0x 15.9x 21.4x 18.5x 21.7x 20.0x 22.0x
20.4x 14.4x 15.4x 14.8x 17.7x 19.3x 23.3x 16.9x 13.6x 18.7x 16.9x 19.4x 18.1x 18.4x
16.2% 17.0%
1.5x 1.2x
12.8x 13.3x
11.7x 11.9x
10.7x 10.8x
20.6x 20.2x
17.9x 17.7x
16.2% 8.1% 7.7% 9.8% 3.5% 10.5% 18.8% 10.0% 11.1% 11.7% 17.7% 8.5% 20.9% 23.3% 8.7% 14.4% 12.4% 24.7% 11.0% 8.7%
2.0x (3.1x) 6.6x 2.1x (1.1x) 5.1x 2.6x 5.2x 3.0x 0.2x (1.8x) 5.0x 0.0x (0.4x) 2.6x 1.0x (0.6x) (0.4x) (1.6x) 1.6x
8.9x 18.8x 21.4x 13.3x NM 8.1x 11.5x 10.4x 14.2x 9.9x 11.3x 9.0x 16.2x 17.6x 10.1x 9.4x 10.2x 9.5x 10.6x 11.5x
8.5x 8.6x 8.1x 9.8x 9.7x 7.5x 9.8x 8.3x 7.5x 8.2x 9.8x 8.7x 12.9x 15.6x 8.6x 8.3x 8.1x 8.3x 8.9x 9.1x
7.7x 8.6x 5.3x 8.3x 6.2x 7.1x 8.9x 7.0x 6.6x 7.5x 8.8x NA 11.4x 13.9x 7.3x 7.3x 6.8x 7.2x NA 8.3x
19.1x 24.5x 14.0x 23.3x 36.2x 14.3x 14.7x 11.0x 17.1x 17.2x 23.5x 17.4x 23.7x 28.9x 20.5x 15.1x 16.7x 13.3x 18.6x 21.6x
16.0x 21.5x 7.9x 17.4x 15.5x 11.3x 12.5x 9.1x 13.9x 15.9x 20.2x NA 20.6x 25.2x 15.3x 13.2x 13.7x 11.2x NA 18.6x
11.1% 12.9%
1.3x 1.4x
10.6x 12.2x
8.6x 9.2x
7.4x 8.0x
18.0x 19.5x
15.4x 15.5x
Source: SEC filings
17
Building Products: Public trading levels (continued) $ in millions, except per share data Company
Manufacturing (Small Cap) Boise Cascade Company Patrick Industries Inc. Quanex Building Products Corporation Cavco Industries, Inc. PGT, Inc. Insteel Industries Inc. Tecnoglass Inc. LSI Industries Inc. The Dixie Group, Inc.
Share Price
March 31, 2016 Market Enterprise Cap Value
$20.72 $45.39 $17.36 $93.46 $9.84 $30.57 $12.65 $11.75 $4.21
$803 $702 $596 $858 $506 $583 $340 $298 $66
$963 $906 $889 $819 $764 $537 $459 $269 $196
Sales
$3,633 $920 $719 $676 $390 $429 $239 $315 $422
LTM Adjusted EBITDA EBITDA Margin
$158 $87 $73 $44 $67 $48 $66 $21 $20
Median Mean Distribution / Installation Wolseley plc HD Supply Holdings, Inc. Watsco Inc. Pool Corp. Beacon Roofing Supply, Inc. Builders FirstSource, Inc. Universal Forest Products Inc. BMC Stock Holdings, Inc. TopBuild Corp. Installed Building Products, Inc. Bluelinx Holdings Inc. CanWel Building Materials Group Ltd. Hardwoods Distribution Inc. Median Mean
$56.73 $33.07 $134.74 $87.74 $41.01 $11.27 $85.82 $16.62 $29.74 $26.61 $0.61 $3.60 $13.90
$14,608 $6,714 $4,007 $3,843 $2,476 $1,267 $1,738 $1,089 $1,148 $835 $55 $153 $233
$16,467 $10,756 $4,464 $4,162 $3,564 $3,153 $1,743 $1,559 $1,229 $972 $452 $273 $254
$19,710 $7,388 $4,113 $2,363 $2,896 $6,067 $2,887 $2,702 $1,617 $663 $1,917 $636 $441
$1,416 $878 $353 $242 $178 $313 $177 $120 $96 $71 $25 $25 $27
Net Debt / EBITDA
Enterprise Value / EBITDA LTM CY2016 CY2017
Price / EPS CY2016 CY2017
4.4% 9.4% 10.2% 6.5% 17.3% 11.2% 27.4% 6.8% 4.6%
1.0x 2.4x 4.0x (0.9x) 3.8x (1.0x) 1.8x (1.3x) 6.7x
6.1x 10.4x 12.1x 18.6x 11.4x 11.2x 7.0x 12.6x 10.0x
6.7x 8.3x 7.6x 13.8x 9.2x 8.2x 5.4x 11.2x NA
4.8x 7.8x 6.6x NA 7.3x NA NA 9.3x NA
21.6x 14.2x 19.9x 24.2x 17.2x 16.9x 9.9x 27.3x 17.5x
13.6x 12.6x 13.9x 19.5x 12.5x NA NA 21.0x 10.5x
9.4% 10.9%
1.8x 1.8x
11.2x 11.0x
8.3x 8.8x
7.3x 7.2x
17.5x 18.7x
13.6x 14.8x
7.2% 11.9% 8.6% 10.2% 6.1% 5.2% 6.1% 4.4% 5.9% 10.7% 1.3% 3.9% 6.1%
1.3x 4.6x 0.6x 1.3x 6.1x 6.0x (0.0x) 3.9x 0.8x 1.9x NM 4.9x 0.8x
11.6x 12.3x 12.6x 17.2x 20.1x 10.1x 9.9x 13.0x 12.8x 13.7x 18.2x 11.1x 9.5x
10.4x 11.1x 11.8x 16.2x 10.3x 7.6x 9.2x 8.6x 9.6x 9.5x NA 8.6x 8.3x
9.5x 10.1x 10.8x 14.6x 9.5x 6.4x 8.7x 6.8x 7.8x 7.8x NA 7.8x 7.7x
14.9x 13.1x 24.5x 26.6x 19.0x 13.2x 19.5x 21.0x 16.6x 19.6x NA 10.2x 13.7x
13.4x 10.8x 22.1x 23.4x 15.6x 7.5x 18.2x 13.8x 13.1x 15.0x NA 8.9x 12.4x
6.1% 6.7%
1.6x 2.7x
12.6x 13.2x
9.5x 10.1x
8.3x 9.0x
17.8x 17.6x
13.6x 14.5x
Source: SEC filings
18
Building Products: Debt comparables Ratings
As of 3/31/2016
Issuer
Moody's
S&P
Security
Amount
Acuity Brands Lighting Inc Carlisle Cos Inc Carlisle Cos Inc Carlisle Cos Inc Fortune Brands Home & Security Inc Fortune Brands Home & Security Inc Hubbell Inc Hubbell Inc Hubbell Inc Ingersoll-Rand Global Holding Co Ltd Ingersoll-Rand Global Holding Co Ltd Ingersoll-Rand Global Holding Co Ltd Ingersoll-Rand Global Holding Co Ltd Lennox International Inc Masco Corp Masco Corp Masco Corp Masco Corp Masco Corp Masco Corp Masco Corp Masco Corp Mohawk Industries Inc Owens Corning Owens Corning Owens Corning Owens Corning Owens Corning Sherwin-Williams Co/The Sherwin-Williams Co/The Sherwin-Williams Co/The Sherwin-Williams Co/The Sherwin-Williams Co/The Stanley Black & Decker Inc Stanley Black & Decker Inc Stanley Black & Decker Inc [1] Stanley Black & Decker Inc Stanley Black & Decker Inc Valspar Corp/The Valspar Corp/The Valspar Corp/The Valspar Corp/The Valspar Corp/The Valspar Corp/The
Baa2 Baa2 Baa2 Baa2 Baa3 Baa3 A3 A3 A3 Baa2 Baa2 Baa2 Baa2 Baa3 Ba2 Ba2 Ba2 Ba2 Ba2 Ba2 Ba2 Ba2 Baa2 Ba1 Ba1 Ba1 Ba1 Ba1 A3 /*A3 /*A3 /*A3 /*A3 /*Baa1 Baa1 Baa1 Baa1 Baa2 Baa2 /*Baa2 /*Baa2 /*Baa2 /*Baa2 /*Baa2 /*-
BBB BBB BBB BBB BBB BBB A A A BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBB BBBBBBBBBBBBBBBA /*A /*A /*A /*A /*A A A A BBB+ BBB BBB BBB BBB BBB BBB
Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Subordinated Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
$350 $150 $250 $350 $400 $500 $300 $300 $400 $750 $350 $700 $500 $200 $114 $500 $400 $400 $500 $500 $296 $300 $600 $158 $144 $600 $400 $550 $700 $400 $140 $300 $400 $400 $800 $150 $400 $400 $150 $300 $400 $250 $350 $250
Maturity Coupon
Price
Yield to Maturity
Spread to Maturity
G-Spread
2.91% 1.93% 3.06% 3.44% 2.77% 3.82% 1.85% 2.91% 3.41% 2.28% 2.08% 3.25% 4.50% 1.82% 3.47% 3.06% 3.31% 4.06% 4.12% 4.19% 6.25% 6.30% 3.38% 2.81% 3.91% 4.00% 4.30% 6.20% 1.50% 3.35% 4.04% 4.41% 4.57% 2.29% 2.77% 3.53% 4.36% 3.54% 2.25% 2.69% 3.25% 3.53% 3.58% 4.82%
+205 bp +138 bp +187 bp +224 bp +158 bp +204 bp +112 bp +172 bp +163 bp +155 bp +123 bp +147 bp +189 bp +109 bp +274 bp +186 bp +211 bp +287 bp +235 bp +241 bp +448 bp +369 bp +160 bp +226 bp +306 bp +280 bp +253 bp +359 bp +77 bp +158 bp +226 bp +180 bp +196 bp +109 bp +158 bp +175 bp +175 bp +282 bp +153 bp +183 bp +206 bp +176 bp +180 bp +221 bp
+192 bp +164 bp +194 bp +200 bp +171 bp +212 bp +110 bp +143 bp +163 bp +150 bp +125 bp +169 bp +200 bp +121 bp +274 bp +203 bp +211 bp +269 bp +244 bp +242 bp +433 bp +425 bp +191 bp +236 bp +301 bp +255 bp +263 bp +397 bp +82 bp +164 bp +222 bp +192 bp +197 bp +100 bp +130 bp +165 bp +197 bp +272 bp +165 bp +178 bp +195 bp +184 bp +183 bp +225 bp
(EBITDA Debt / Net Debt EBITDA / CapEx) / EBITDA / EBITDA Interest Interest
Investment Grade 12/15/2019 8/15/2016 12/15/2020 11/15/2022 6/15/2020 6/15/2025 6/1/2018 11/15/2022 3/1/2026 8/15/2018 1/15/2019 6/15/2023 6/15/2043 5/15/2017 4/15/2018 3/15/2020 4/1/2021 3/15/2022 4/1/2025 4/1/2026 8/1/2029 8/15/2032 2/1/2023 12/1/2016 6/15/2019 12/15/2022 12/1/2024 12/1/2036 12/15/2017 8/1/2025 2/1/2027 12/15/2042 8/1/2045 12/1/2021 11/1/2022 7/1/2028 9/1/2040 12/15/2053 5/1/2017 6/15/2019 1/15/2022 2/1/2025 1/15/2026 2/1/2045
6.000% 6.125% 5.125% 3.750% 3.000% 4.000% 5.950% 3.625% 3.350% 6.875% 2.875% 4.250% 5.750% 4.900% 6.625% 7.125% 3.500% 5.950% 4.450% 4.375% 7.750% 6.500% 3.850% 6.500% 9.000% 4.200% 4.200% 7.000% 1.350% 3.450% 7.375% 4.000% 4.550% 3.400% 2.900% 7.050% 5.200% 5.750% 6.050% 7.250% 4.200% 3.300% 3.950% 4.400%
110.75 101.50 108.50 101.75 100.88 101.38 108.63 104.25 99.50 110.50 102.13 106.38 119.56 103.38 106.13 115.00 100.88 109.88 102.38 101.50 113.38 102.00 102.75 102.38 115.13 101.13 99.25 109.25 99.75 100.75 129.00 93.63 99.75 105.63 100.75 134.75 112.50 105.63 104.00 113.88 104.75 98.25 103.00 93.50
Ratings Issuer
American Builders & Contractors Supply American Builders & Contractors Supply Apex Tool Group LLC Associated Materials LLC Atrium Windows & Doors Inc Beacon Roofing Supply Inc BMC Stock Holdings Inc Boise Cascade Co Builders FirstSource Inc Builders FirstSource Inc CPG Merger Sub LLC Euramax International Inc GAF Materials GAF Materials GAF Materials GAF Materials Gibraltar Industries Inc Griffon Corp HD Supply Inc HD Supply Inc HD Supply Inc Headwaters Inc Hillman Group Inc/The Louisiana-Pacific Corp Masonite International Corp NCI Building Systems Inc Norbord Inc Norbord Inc Nortek Inc Northwest Hardwoods Inc [2] Ply Gem Industries Inc PrimeSource Buidling Products [3] RSI Home Products Inc Springs Industries Inc
As of 3/31/2016
Moody's
S&P
Security
B3 B3 Caa1 Caa3 Caa1 B3 Caa1 B1 B3 Caa2 Caa2 Caa2 Ba2 Ba2 Ba2 Ba2 B1 B1 Ba3 B3 Caa1 B3 Caa1 Ba3 B2 B3 Ba2 Ba2 B3 B3 Caa1 Caa1 B1 B2
BB BB BBBB+ B+ BBB+ BCCC+ BBBBBBBBBBBBBBBBBBB B B B CCC+ BBBB BBBBBBBB CCC+ CCC+ B+ B
Senior Notes Senior Notes Senior Notes 1st Lien Notes Secured Notes Senior Notes 1st Lien Notes Senior Notes 1st Lien Notes Senior Notes Senior Notes Secured Notes Senior Notes Senior Notes Senior Notes Senior Notes Subordinated Notes Senior Notes 1st Lien Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes 1st Lien Notes 1st Lien Notes Senior Notes 1st Lien Notes Senior Notes Senior Notes 2nd Lien Notes Secured Notes
Amount
$500 $350 $450 $830 $305 $300 $250 $300 $618 $418 $315 $385 $500 $500 $1,100 $1,100 $210 $600 $1,250 $1,275 $1,000 $150 $330 $350 $475 $250 $240 $315 $735 $300 $500 $200 $575 $470
Maturity Coupon
4/15/2021 12/15/2023 2/1/2021 11/1/2017 5/1/2019 10/1/2023 9/15/2018 11/1/2020 6/1/2021 8/15/2023 10/1/2021 8/15/2020 2/15/2021 2/15/2023 11/15/2024 10/15/2025 2/1/2021 3/1/2022 12/15/2021 7/15/2020 7/15/2020 1/15/2019 7/15/2022 6/1/2020 3/15/2023 1/15/2023 12/1/2020 4/15/2023 4/15/2021 8/1/2021 2/1/2022 5/15/2023 3/15/2023 6/1/2021
5.625% 5.750% 7.000% 9.125% 7.750% 6.375% 9.000% 6.375% 7.625% 10.750% 8.000% 12.000% 5.125% 5.500% 5.375% 6.000% 6.250% 5.250% 5.250% 7.500% 11.500% 7.250% 6.375% 7.500% 5.625% 8.250% 5.375% 6.250% 8.500% 7.500% 6.500% 9.000% 6.500% 6.250%
Price
103.00 104.00 82.00 76.50 75.00 106.00 103.50 99.75 104.00 100.00 92.63 90.63 102.00 103.50 102.00 105.00 101.50 98.00 104.00 105.00 109.50 102.13 83.50 102.50 104.75 104.50 99.50 96.25 104.00 67.50 100.00 90.50 104.50 100.50
Yield to Worst
Yield to Worst Date
Spread to Worst
4.55% 4.93% 12.02% 28.70% 18.82% 5.11% 6.42% 6.44% 6.21% 10.75% 9.77% 14.99% 4.55% 4.69% 5.01% 5.19% 5.66% 5.65% 4.30% 4.88% 28.48% 5.96% 9.97% 6.24% 4.54% 7.12% 5.50% 6.93% 6.44% 17.01% 6.50% 10.95% 5.45% 6.07%
4/15/2019 12/15/2021 2/1/2021 11/1/2017 5/1/2019 10/1/2021 9/15/2017 11/1/2020 6/1/2019 8/15/2021 10/1/2021 8/15/2020 2/15/2020 2/15/2021 11/15/2022 10/15/2023 2/1/2019 3/1/2022 12/15/2020 10/15/2016 4/27/2016 1/15/2018 7/15/2022 6/1/2018 3/15/2021 1/15/2021 12/1/2020 4/15/2023 4/15/2017 8/1/2021 2/1/2020 5/15/2023 3/15/2021 6/1/2019
+369 bp +374 bp +1,082 bp +2,797 bp +1,797 bp +391 bp +569 bp +524 bp +535 bp +955 bp +857 bp +1,379 bp +336 bp +349 bp +382 bp +341 bp +481 bp +445 bp +310 bp +433 bp +2,811 bp +524 bp +877 bp +551 bp +334 bp +592 bp +430 bp +516 bp +572 bp +1,582 bp +530 bp +918 bp +425 bp +521 bp
0.8x 1.2x
-0.5x 0.5x
13.9x 18.3x
12.0x 16.2x
1.8x 1.1x
1.4x
NM
16.3x
0.5x
19.2x
16.7x
2.3x
1.9x
10.9x
9.5x
1.7x 3.2x
1.6x 1.6x
17.5x 4.7x
14.7x 4.0x
2.2x 2.2x
2.1x 2.1x
NM 8.4x
13.6x 4.5x
1.1x
1.0x
NM
NM
2.2x
1.9x
9.9x
8.2x
2.9x
2.7x
9.1x
7.7x
(EBITDA Debt / Net Debt EBITDA / CapEx) / EBITDA / EBITDA Interest Interest
NA
NA
NA
NA
NA 10.3x NA NA NA 2.2x 6.2x
NA NM NA NA NA 1.0x 6.0x
NA 1.1x NA NA NA 7.0x 5.7x
NA 0.9x NA NA NA 3.1x 4.9x
NA NA NA
NA NA NA
NA NA NA
NA NA NA
2.3x 5.3x 4.9x
1.6x 5.0x 4.6x
6.0x 3.5x 2.2x
5.2x 1.9x 2.0x
3.3x 9.0x 5.4x 2.6x 3.1x 6.7x
2.6x 8.9x -1.1x 2.1x 2.6x 6.6x
2.8x 1.8x 2.1x 5.5x 4.3x 2.2x
2.2x 1.4x NM 4.0x 3.7x 1.1x
5.2x NA 5.8x NA NA NA
5.1x NA 5.2x NA NA NA
2.8x NA 2.5x NA NA NA
2.2x NA 2.0x NA NA NA
Source: SEC filings; Bloomberg Note: Results as of the most recent trailing twelve month period; “/*+” indicates a rating under review for an upgrade [1] Issued out of Black & Decker Holdings Inc [2] Issued out of Hardwoods Acquisition Inc [3] Issued out of RSI Home Products Inc
19
Building Materials: Key company news Eagle Materials Inc. – 1/25/16: Announced the retirement of Steve Rowley as President and CEO and member of the Board of Directors and the succession by Dave Powers, currently Executive Vice President of Gypsum Wallboard at Eagle U.S. Concrete, Inc. – 1/14/16: Appointed Joseph C. Tusa, Jr. as Senior Vice President and Chief Financial Officer
Building Materials: Recent M&A activity Close Date 3/21/16
Target (Seller) Boxley Materials Company, Inc.
Acquirer
Valuation
Summit Materials, Inc.
Not Disclosed
Highlights Boxley Materials Company, Inc. produces and supplies various crushed limestone,
granite, and sandstone to contractors and road builders The acquisition will enable Summit Materials to expand its geographic footprint in the
Mid-Atlantic region 3/15/16
Colorado Precast Concrete, Inc.
Oldcastle
Not Disclosed
Colorado Precast Concrete, Inc. manufactures concrete products from a combination
of cement and aggregate The acquisition will enable Oldcastle Precast, Inc. to increase its strong presence in
Colorado, Wyoming and Montana markets 2/29/16[1]
Eurobloq Inc.
Brampton Brick Ltd.
Not Disclosed
Eurobloq Inc. manufactures concrete The acquisition will enable Brampton Brick Ltd. to expand its manufacturing and
distributing capabilities in Canada 2/29/16
Greco Bros. Ready Mix Concrete Co., Inc.
U.S. Concrete
Not Disclosed
Greco Bros. Ready Mix Concrete Co., Inc. manufactures and markets ready mixed
concrete in New York The acquisition will enable Ferrara Brothers Building Materials Corp. to optimize its
service efficiencies , enhance raw material purchasing savings and increase its customer base in the United States 2/1/16
Sherman-Dixie Concrete Industries, Inc.
Forterra Building Products
Not Disclosed
Sherman-Dixie Concrete Industries, Inc. manufactures and markets precast concrete
pipes and storms, and sanitary civil engineered systems The acquisition will enable Forterra Building Products to increase its customer base
and high-quality suite of precast concrete solutions 12/22/15
50% of Knauf / USG Verwaltungs GmbH and Knauf / USG Systems GmbH & Co. KG
Knauf Aquapanel GmbH
$52 million EV
Joint venture between USG and Knauf manufactures and distributes Aquapanel brand
cement panels in Europe The sale will allow USG to focus on strengthening North American operations and
growing business in Asia and Australia
Building Materials: Recent debt activity Close Date
Company
Type
2/24/16
Summit Materials
Senior notes
11/18/15
U.S. Concrete, Inc.
Revolving Credit Facility
Use of Proceeds
Amount (MM)
Maturity
Coupon / Spread
Acquisition Purposes
$250.0
Apr-22
8.500%
General Corporate Purposes
$250.0
Nov-20
L + 125
Source: Company websites; Company filings; Capital IQ [1] Announcement Date
20
Building Materials: Public Trading Levels $ in millions, except per share data Company United States Vulcan Materials Company Martin Marietta Materials, Inc. USG Corporation Eagle Materials Inc. Summit Materials, Inc. U.S. Concrete, Inc. Continental Building Products, Inc.
Share Price
March 31, 2016 Market Enterprise Cap Value
$105.57 $159.51 $24.81 $70.11 $19.45 $59.58 $18.56
$14,204 $10,305 $3,618 $3,497 $968 $887 $756
Sales
$15,901 $11,723 $5,157 $3,982 $2,246 $1,165 $1,036
$3,422 $3,268 $3,776 $1,115 $1,432 $975 $422
LTM Adjusted EBITDA EBITDA Margin
$826 $767 $522 $312 $284 $118 $94
Median Mean
Net Debt / EBITDA
Enterprise Value / Sales Adjusted EBITDA CY2016 CY2017 CY2016 CY2017
Price / EPS CY2016 CY2017
24.1% 23.5% 13.8% 28.0% 19.8% 12.1% 22.2%
2.1x 1.8x 2.9x 1.6x 4.0x 2.4x 3.0x
4.1x 3.1x 1.3x 3.3x 1.4x 1.0x 2.3x
3.6x 2.7x 1.2x 2.9x 1.2x 0.9x 2.2x
14.9x 12.3x 8.4x 9.7x 6.3x 7.4x 7.8x
12.0x 10.3x 7.4x 8.2x 5.5x 6.3x 7.1x
32.2x 24.1x 16.4x 17.6x 16.2x 17.5x 17.3x
23.2x 17.7x 12.7x 14.3x 12.8x 13.8x 13.5x
22.2% 20.5%
2.4x 2.5x
2.3x 2.4x
2.2x 2.1x
8.4x 9.5x
7.4x 8.1x
17.5x 20.2x
13.8x 15.4x
Building Materials: Operating Performance $ in millions, except per share data Company BUILDING MATERIALS USG Corporation Vulcan Materials Company Martin Marietta Materials, Inc. Summit Materials, Inc. Eagle Materials Inc. U.S. Concrete, Inc. New Enterprise Stone & Lime Co., Inc. Continental Building Products, Inc. Granite Construction Incorporated (Construction Materials) Monarch Cement Co. Smith-Midland Corporation Total
Sales
Most Recent Quarter EBITDA Margin
$925 857 781 360 277 264 202 110 66 39 8 $3,889
$234 244 191 90 97 33 45 33 NA 0 1 $967
25.3% 28.5% 24.4% 25.1% 35.1% 12.4% 22.1% 30.0% NA 0.5% 6.5% 24.9%
Sales
Prior Year Quarter EBITDA Margin
$954 755 780 294 292 180 210 121 63 35 4 $3,686
$205 173 188 62 102 19 31 34 NA 7 (1) $822
21.5% 22.9% 24.2% 21.2% 35.1% 10.6% 15.0% 28.5% NA 19.6% (17.4%) 22.3%
Year-over-Year Change Sales EBITDA
(3.0%) 13.5% 0.2% 22.3% (4.8%) 46.8% (3.6%) (8.6%) 5.5% 11.2% 73.8% 5.5%
14.1% 40.9% 1.2% 44.8% (4.8%) 72.1% 42.2% (3.8%) NA (97.1%) NM 17.7%
Source: SEC filings; Bloomberg Note: Results as of the most recent trailing twelve month period
21
Building Materials: Debt comparables Ratings Issuer
As of 3/31/2016
Moody's
S&P
Security
Amount
Ba1 Ba1 Ba1 Ba1 Ba2 Ba2 Ba2 Ba2
BBB BBB BBB BBB BBB BBB BBB BBB
Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
$300 $400 $125 $230 $273 $600 $400 $250
Maturity Coupon
Price
Yield to Maturity
Spread to Maturity
G-Spread
3.08% 4.21% 4.22% 6.05% 2.53% 3.66% 4.09% 6.39%
+235 bp +244 bp +244 bp +344 bp 6/15/2018 6/15/2021 1/1/2025 11/30/2037
+235 bp +257 bp +246 bp +380 bp +177 bp +241 bp +227 bp +375 bp
(EBITDA Debt / Net Debt EBITDA / CapEx) / EBITDA / EBITDA Interest Interest
Investment Grade Martin Marietta Materials Inc Martin Marietta Materials Inc Martin Marietta Materials Inc Martin Marietta Materials Inc Vulcan Materials Co Vulcan Materials Co Vulcan Materials Co Vulcan Materials Co
4/15/2018 7/2/2024 12/1/2025 5/1/2037 6/15/2018 6/15/2021 4/1/2025 11/30/2037
6.600% 4.250% 7.000% 6.250% 7.000% 7.500% 4.500% 7.150%
106.88 100.25 121.88 102.38 109.50 118.00 103.00 108.88
Ratings Issuer
As of 3/31/2016
Moody's
S&P
Security
Amount
Caa3 Caa1 Caa1 B3 B3 B3 B1 B1 B1
CCC B B BBB B BB+ BB+ BB+
Senior Notes Senior Notes Senior Notes 1st Lien Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
$250 $250 $650 $200 $500 $500 $250 $350 $350
Maturity Coupon
Price
Yield to Worst
Yield to Worst Date
Spread to Worst
20.56% 7.64% 6.97% 5.42% 1.35% 3.05% 3.59% 4.50% 4.92%
9/1/2018 4/15/2021 7/15/2023 12/1/2016 11/15/2016 1/15/2018 5/2/2016 11/1/2019 3/1/2023
+1,983 bp +644 bp +519 bp +487 bp +80 bp +232 bp +322 bp +364 bp +314 bp
2.1x
1.8x
10.8x
6.3x
2.4x
2.1x
4.0x
2.6x
(EBITDA Debt / Net Debt EBITDA / CapEx) / EBITDA / EBITDA Interest Interest
High Yield New Enterprise Stone & Lime Summit Materials LLC Summit Materials LLC US Concrete Inc USG Corp USG Corp USG Corp USG Corp USG Corp
9/1/2018 4/15/2022 7/15/2023 12/1/2018 11/15/2016 1/15/2018 3/30/2020 11/1/2021 3/1/2025
11.000% 8.500% 6.125% 8.500% 6.300% 9.750% 7.875% 5.875% 5.500%
82.50 103.50 95.25 104.00 103.00 111.50 104.25 104.50 103.38
6.7x 4.7x
6.5x 4.0x
1.2x 3.2x
0.9x 2.2x
2.4x 4.2x
2.4x 2.9x
5.4x 3.3x
4.3x 2.7x
Source: SEC filings; Bloomberg Note: Results as of the most recent trailing twelve month period
22
Homebuilders: Key company news Artisan Outdoor, LLC – 1/26/16: Appointed Roger Bruce as Chief Executive Officer Comstock Holding Companies, Inc. – 11/20/15: Received notice of default from Two Rivers Associates LLC under Sales Contracts for the purported failure to purchase the Two Rivers Contracts Deer Valley Corporation – 1/18/16: Announced the resignation of Joel Stephen Logan as the Chief Operating Officer and Vice President, President of Deer Valley Homebuilders, Inc., and Vice President of Deer Valley Home Repair Services, Inc. Meritage Homes Corporation – 1/7/16: Announced the appointment of Hilla Sferruzza as Executive Vice President and Chief Financial Officer post retirement of Larry W. Seay NVR, Inc. – 1/5/16: Appointed Jeffrey D. Martchek as President of Homebuilding Operations PulteGroup Inc. – 2/15/16: Appointed Ryan Marshall as President and Harmon Smith as Chief Operating Officer Skyline Corporation – 2/4/16: Appointed Jeff Newport as Senior Vice President of Operations Taylor Morrison – 12/1/15: Appointed of Alan Laing as Executive Vice President of homebuilding operations The New Home Company – 3/15/16: Appointed Joan Marcus-Colvin as Chief Marketing Officer and promoted Megan Eltringham to Vice President of Marketing – 1/13/16: Appointed Alan Laing as Executive Vice President of homebuilding operations UCP, Inc. – 1/19/16: Appointed James M. Pirrello as Chief Financial Officer. effective January 15, 2016 Woodside Homes, Inc. – 12/1/15: Announced plans to withdraw its initial public offering of $200 million
Source: Company websites; Company filings; Capital IQ
23
Homebuilders: Recent M&A activity Close Date 1/8/16
12/15/16
Target (Seller)
Acquirer
Valuation
Acadia Homes & Neighborhoods LLC
Taylor Morrison Home Corporation
$85.0 million EV
JW Homes, LLC
PulteGroup, Inc.
$450.0 million EV
Highlights Acadia Homes & Neighborhoods offers new construction homes in the Atlanta Market The acquisition will enable Taylor Morrison Home Corporation to expand its strong
presence in Atlanta market JW Homes, LLC, doing business as John Wieland Homes and Neighborhoods,
operates as a homebuilding company The acquisition will enable Installed Building Products, Inc. to expand its presence in
the Southeast United States
Homebuilders: Recent debt activity Close Date
Company
Type
Use of Proceeds
Amount (MM)
Maturity
Coupon / Spread
3/11/16
Beazer Homes USA Inc.
Term Loan
Debt Refinancing
$140.0
Mar-18
L + 550
2/26/16
Lennar Corporation
Senior Notes
Debt Refinancing
$500.0
Apr-21
4.750%
2/25/16
PulteGroup, Inc.
Senior Notes
Debt Refinancing
$700.0
Mar-26
5.500%
2/25/16
PulteGroup, Inc.
Senior Notes
Debt Refinancing
$300.0
Mar-21
4.250%
2/9/16
WCI Communities Inc.
Revolving Credit Facility
Corporate Purposes
$115.0
Feb-20
L + 100
1/6/16
LGI Homes, Inc.
Revolving Credit Facility
Corporate Purposes
$300.0
May-18
L + 350
12/23/15
Century Communities, Inc.
Revolving Credit Facility
Corporate Purposes
$300.0
2018
L + 2.75% - 3.25%
12/17/15
The New Home Company
Revolving Credit Facility
Debt Refinancing
$200.0
Apr-18
NA
11/23/15
M/I Homes
Senior notes
Corporate Purposes
$300.0
Jan-21
6.750%
11/20/15
United Built Homes
Revolving Credit Facility
Debt Refinancing
$150.0
Dec-17
NA
Homebuilders: Recent equity markets activity Offer Date 12/7/15
Company The New Home Company Inc.
Type Follow-On Equity Offering
Gross Amount (MM)
Shares Offered $43.8
3,500,000
Offering Price $12.50
Source: Company websites; Company filings; Capital IQ
24
Homebuilders: Quarterly performance $ in millions, except per share data Company
Sales
Most Recent Quarter Net Income Margin
HOMEBUILDERS DR Horton Inc. PulteGroup, Inc. Lennar Corporation CalAtlantic Group, Inc. NVR, Inc. Taylor Morrison Home Corporation Toll Brothers Inc. TRI Pointe Group, Inc. Meritage Homes Corporation KB Home MDC Holdings Inc. Hovnanian Enterprises Inc. M/I Homes, Inc. William Lyon Homes Shea Homes Limited Partnership Beazer Homes USA Inc. AV Homes, Inc. Century Communities, Inc. The New Home Company Inc. LGI Homes, Inc. WCI Communities Inc. UCP, Inc. Comstock Holding Companies, Inc. Total
$2,416 2,062 1,994 1,700 1,558 970 929 880 785 678 579 576 469 403 397 344 226 206 195 177 165 107 12 $17,828
$158 228 144 78 134 18 73 85 53 13 23 (16) 13 26 52 1 16 13 12 16 10 3 (1) $1,151
6.5% 11.1% 7.2% 4.6% 8.6% 1.8% 7.9% 9.7% 6.7% 1.9% 3.9% (2.8%) 2.8% 6.5% 13.1% 0.3% 7.0% 6.4% 6.3% 8.9% 5.9% 3.0% (8.9%) 6.5%
Sales
Prior Year Quarter Net Income Margin
$2,303 1,823 1,644 762 1,330 1,012 853 635 702 580 506 446 368 360 420 266 104 141 73 108 151 46 18 $14,650
$143 217 115 65 99 28 81 41 49 8 15 (14) 11 18 60 (22) 2 7 5 8 13 (2) (0) $945
6.2% 11.9% 7.0% 8.5% 7.5% 2.8% 9.5% 6.5% 7.0% 1.3% 2.9% (3.2%) 3.0% 5.0% 14.2% (8.4%) 1.5% 5.1% 7.3% 6.9% 8.4% (4.3%) (0.9%) 6.5%
Year-over-Year Change Sales Net Income
4.9% 13.1% 21.3% 123.2% 17.1% (4.1%) 8.8% 38.6% 11.8% 16.9% 14.5% 29.1% 27.4% 11.9% (5.4%) 29.6% 117.1% 46.4% 166.7% 63.0% 9.6% 131.3% (33.1%) 21.7%
10.7% 5.0% 25.3% 19.9% 34.7% (36.6%) (10.0%) 105.4% 7.5% 68.3% 54.3% NM 20.8% 46.0% (12.7%) NM 890.9% 83.1% 129.8% 108.8% (22.9%) NM NM 21.8%
Source: SEC filings [1] Homebuilding segment results
25
Homebuilders: Public Trading Levels $ in millions, except per share data Company Lennar Corporation DR Horton Inc. PulteGroup, Inc. Toll Brothers Inc. NVR, Inc. CalAtlantic Group, Inc. Taylor Morrison Home Corporation KB Home TRI Pointe Group, Inc. Meritage Homes Corporation Hovnanian Enterprises Inc. MDC Holdings Inc. Beazer Homes USA Inc. William Lyon Homes M/I Homes, Inc. LGI Homes, Inc. Century Communities, Inc. WCI Communities Inc. AV Homes, Inc. UCP, Inc. The New Home Company Inc. Mean Median
Share Price
March 31, 2016 Market Enterprise Cap Value
$48.36 $30.23 $18.71 $29.51 $1,732.40 $33.42 $14.12 $14.28 $11.78 $36.46 $1.56 $25.06 $8.72 $14.49 $18.65 $24.21 $17.07 $18.58 $11.36 $8.04 $12.26
$10,332 $11,373 $6,481 $5,003 $7,528 $4,054 $1,726 $1,318 $1,907 $1,458 $230 $1,228 $277 $459 $460 $491 $363 $489 $257 $65 $253
$16,237 $13,863 $8,170 $8,043 $7,729 $7,694 $4,736 $3,647 $2,888 $2,324 $2,253 $1,936 $1,635 $1,554 $1,109 $761 $724 $640 $537 $309 $291
LTM Sales $9,824 $10,938 $5,982 $4,246 $5,168 $3,540 $2,977 $3,130 $2,401 $2,579 $2,278 $1,909 $1,706 $1,107 $1,418 $630 $734 $564 $518 $279 $430
Total Debt / Capital
Sales CY2016 CY2017
Enterprise Value / Adjusted EBITDA CY2016 CY2017
Price / Ent. Value / Tangible Inventory Book Value
54.3% 38.5% 34.5% 44.8% 33.6% 56.4% 78.6% 62.1% 43.8% 47.9% 115.9% 43.1% 70.4% 79.3% 52.7% 56.7% 50.4% 37.9% 65.1% 64.7% 27.3%
1.5x 1.1x 1.1x 1.5x 1.3x 1.2x 1.4x 1.0x 1.1x 0.8x 0.8x 0.8x 0.9x 1.1x 0.7x 0.9x 0.8x 1.0x 0.8x 0.9x 0.5x
1.3x 1.0x 1.0x 1.4x 1.2x 1.1x 1.2x 0.9x 1.0x 0.7x 0.7x 0.7x 0.8x 0.9x 0.6x 0.8x 0.7x 0.7x 0.6x 0.6x 0.4x
13.5x 11.1x 9.8x 16.0x 11.9x 15.1x 17.0x 21.7x 9.8x 10.0x 15.9x 17.1x 11.3x 10.6x 8.5x 9.2x 11.3x 8.3x 21.6x NM 13.5x
10.7x 9.0x 7.8x 8.4x 10.6x 8.7x 12.7x 13.7x 8.3x 9.4x 10.2x 12.3x 12.6x 8.3x NA 7.2x 9.5x 9.3x NA NA NA
2.2x 1.7x 1.5x 1.1x 7.7x 1.3x 1.5x 1.1x 1.1x 1.1x 1.4x 1.1x 0.9x 0.9x 1.0x 1.4x 0.9x 1.2x 0.9x 0.9x 1.4x
1.8x 1.9x 1.4x 1.2x 6.3x 1.4x 3.8x 0.8x 1.3x 1.2x NM 1.0x 0.4x 1.6x 0.8x 2.1x 0.9x 1.1x 1.5x 0.8x 1.1x
55.1% 52.7%
1.0x 1.0x
0.9x 0.8x
11.6x 13.2x
9.4x 9.9x
1.1x 1.5x
1.2x 1.6x
Source: SEC filings [1] Homebuilding segment results [2] Excludes land held for sale
26
Homebuilders: Debt comparables[1] Ratings Issuer
Moody's
S&P
As of 3/31/2016 Security
Amount
Senior Notes 2nd Lien Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes 1st Lien Notes 2nd Lien Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes Senior Notes
$200 $300 $143 $235 $200 $200 $280 $230 $575 $300 $400 $300 $250 $260 $373 $350 $400 $500 $500 $350 $300 $400 $577 $220 $150 $250 $265 $300 $400 $350 $450 $350 $250 $240 $400 $400 $250 $275 $500 $600 $500 $575 $400 $500 $300 $250 $250 $350 $175 $300 $300 $200 $465 $123 $300 $700 $300 $400 $300 $550 $350 $350 $400 $350 $250 $420 $400 $250 $350 $450 $450 $250 $200 $150 $425 $350 $305
Maturity Coupon
Price
Yield to Worst
Yield to Worst Date
Spread to Worst
9.36% 5.00% -3.34% 10.91% 12.11% 12.07% 2.22% 2.43% 2.73% 4.13% 4.34% 4.61% 4.88% 8.00% 0.72% 2.23% 1.81% 2.96% 3.03% 4.28% 4.57% 4.27% 12.25% 19.21% 28.87% 27.05% 3.55% 3.92% 4.70% 6.43% 7.02% 7.42% 7.81% 2.84% 2.73% 2.80% 3.20% 3.28% 3.36% 3.70% 4.06% 4.61% 4.87% 8.49% 6.96% 5.26% 4.86% 8.15% 4.43% 5.54% 5.95% 6.02% 2.95% 2.91% 3.91% 5.77% 6.56% 6.18% 6.23% 5.60% 6.69% 5.22% 2.36% 2.24% 6.91% 4.43% 4.67% 5.06% 4.87% 4.80% 5.97% 7.07% 7.54% 7.73% 7.42% 8.04% 9.25%
7/1/2019 7/15/2017 4/11/2016 5/15/2019 9/15/2021 2/1/2023 9/15/2016 5/15/2017 5/15/2018 5/1/2020 1/15/2021 6/15/2021 10/1/2022 5/15/2022 4/15/2016 5/15/2017 11/15/2017 12/1/2018 2/15/2020 6/15/2022 11/15/2022 5/15/2023 10/15/2020 11/15/2020 1/15/2019 11/1/2019 9/15/2017 6/15/2018 2/15/2019 3/15/2020 12/15/2021 9/15/2022 5/15/2023 4/15/2016 6/1/2017 9/15/2017 6/1/2018 10/1/2018 4/16/2019 8/15/2019 2/1/2021 8/15/2022 12/15/2023 5/30/2025 1/15/2021 2/1/2020 10/15/2023 1/15/2043 2/1/2018 4/15/2020 4/1/2022 6/1/2025 5/1/2016 10/15/2017 2/1/2021 3/1/2026 6/15/2032 5/15/2033 2/15/2035 4/15/2021 4/15/2023 12/1/2023 10/15/2017 11/30/2018 11/1/2019 11/15/2021 4/15/2023 10/15/2023 11/15/2025 6/15/2019 6/15/2024 8/15/2021 2/1/2023 4/15/2019 11/15/2018 8/15/2022 12/15/2021
+850 bp +427 bp -371 bp +1,005 bp +1,091 bp +1,029 bp +167 bp +171 bp +200 bp +294 bp +314 bp +341 bp +368 bp +680 bp +35 bp +150 bp +108 bp +210 bp +183 bp +309 bp +280 bp +249 bp +1,105 bp +1,801 bp +2,802 bp +2,619 bp +282 bp +320 bp +385 bp +523 bp +583 bp +623 bp +603 bp +247 bp +200 bp +207 bp +247 bp +256 bp +251 bp +285 bp +286 bp +342 bp +310 bp +672 bp +576 bp +406 bp +308 bp +554 bp +370 bp +434 bp +475 bp +424 bp +258 bp +218 bp +271 bp +399 bp +396 bp +358 bp +362 bp +440 bp +491 bp +345 bp +164 bp +152 bp +605 bp +323 bp +290 bp +329 bp +310 bp +394 bp +420 bp +587 bp +577 bp +687 bp +670 bp +684 bp +805 bp
(EBITDA Debt / Net Debt EBITDA / CapEx) / EBITDA / EBITDA Interest Interest
High Yield AV Homes Inc Caa1 BBeazer Homes USA Inc Ba3 B+ Beazer Homes USA Inc Caa1 CCC+ Beazer Homes USA Inc Caa1 CCC+ Beazer Homes USA Inc Caa1 CCC+ Beazer Homes USA Inc Caa1 CCC+ CalAtlantic Group Inc Ba2 BB CalAtlantic Group Inc Ba2 BB CalAtlantic Group Inc Ba2 BB CalAtlantic Group Inc Ba2 BB CalAtlantic Group Inc Ba2 BB CalAtlantic Group Inc Ba2 BB CalAtlantic Group Inc Ba2 BB Century Communities Inc B3 B DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ DR Horton Inc Ba1 BB+ K Hovnanian Enterprises Inc B1 /*BK Hovnanian Enterprises Inc Caa1 /*- CCC K Hovnanian Enterprises Inc Caa2 /*- CCC K Hovnanian Enterprises Inc Caa2 /*- CCC KB Home B2 B KB Home B2 B KB Home B2 B KB Home B2 B KB Home B2 B KB Home B2 B KB Home B2 B Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB Lennar Corp Ba2 BB M/I Homes Inc B1 B+ MDC Holdings Inc Ba2 BB+ MDC Holdings Inc Ba2 BB+ MDC Holdings Inc Ba2 BB+ Meritage Homes Corp Ba3 BBMeritage Homes Corp Ba3 BBMeritage Homes Corp Ba3 BBMeritage Homes Corp Ba3 BBPulteGroup Inc [1] Ba1 BB+ PulteGroup Inc Ba1 BB+ PulteGroup Inc Ba1 BB+ PulteGroup Inc Ba1 BB+ PulteGroup Inc Ba1 BB+ PulteGroup Inc Ba1 BB+ PulteGroup Inc Ba1 BB+ Taylor Morrison Communities Inc B2 BBTaylor Morrison Communities Inc B2 BBTaylor Morrison Communities Inc B2 BBToll Brothers Finance Corp Ba1 BB+ Toll Brothers Finance Corp Ba1 BB+ Toll Brothers Finance Corp Ba1 BB+ Toll Brothers Finance Corp Ba1 BB+ Toll Brothers Finance Corp Ba1 BB+ Toll Brothers Finance Corp Ba1 BB+ Toll Brothers Finance Corp Ba1 BB+ TRI Pointe Group Inc / TRI Pointe Homes B1 IncBBTRI Pointe Group Inc / TRI Pointe Homes B1 IncBBWCI Communities Inc B3 B+ Weekley Homes LLC B2 BBWilliam Lyon Homes Inc B3 BWilliam Lyon Homes Inc B3 BWilliam Lyon Homes Inc B3 BWoodside Homes Co LLC B3 B
7/1/2019 4/15/2018 6/15/2016 5/15/2019 9/15/2021 2/1/2023 9/15/2016 5/15/2017 5/15/2018 5/1/2020 1/15/2021 12/15/2021 10/1/2022 5/15/2022 4/15/2016 5/15/2017 2/15/2018 3/1/2019 2/15/2020 9/15/2022 2/15/2023 8/15/2023 10/15/2020 11/15/2020 1/15/2019 11/1/2019 9/15/2017 6/15/2018 5/15/2019 3/15/2020 12/15/2021 9/15/2022 5/15/2023 4/15/2016 6/1/2017 12/15/2017 6/1/2018 12/1/2018 6/15/2019 11/15/2019 4/1/2021 11/15/2022 12/15/2023 5/30/2025 1/15/2021 2/1/2020 1/15/2024 1/15/2043 3/1/2018 4/15/2020 4/1/2022 6/1/2025 5/1/2016 10/15/2017 3/1/2021 3/1/2026 6/15/2032 5/15/2033 2/15/2035 4/15/2021 4/15/2023 3/1/2024 10/15/2017 12/31/2018 11/1/2019 2/15/2022 4/15/2023 1/15/2024 11/15/2025 6/15/2019 6/15/2024 8/15/2021 2/1/2023 4/15/2019 11/15/2020 8/15/2022 12/15/2021
8.500% 6.625% 8.125% 9.125% 7.500% 7.250% 10.750% 8.400% 8.375% 6.625% 8.375% 6.250% 5.375% 6.875% 6.500% 4.750% 3.625% 3.750% 4.000% 4.375% 4.750% 5.750% 7.250% 9.125% 7.000% 8.000% 9.100% 7.250% 4.750% 8.000% 7.000% 7.500% 7.625% 6.500% 12.250% 4.750% 6.950% 4.125% 4.500% 4.500% 4.750% 4.750% 4.875% 4.750% 6.750% 5.625% 5.500% 6.000% 4.500% 7.150% 7.000% 6.000% 6.500% 7.625% 4.250% 5.500% 7.875% 6.375% 6.000% 5.250% 5.875% 5.625% 8.910% 4.000% 6.750% 5.875% 4.375% 5.625% 4.875% 4.375% 5.875% 6.875% 6.000% 5.750% 8.500% 7.000% 6.750%
97.63 102.00 101.50 95.38 82.00 78.00 103.75 106.50 111.50 109.25 117.25 107.50 102.75 94.63 100.16 102.75 102.88 102.00 103.50 100.50 101.00 109.00 83.00 70.00 60.00 58.00 107.75 106.92 100.13 105.40 99.88 100.38 99.00 100.10 110.75 102.75 107.75 102.00 103.25 102.50 103.00 100.75 100.00 76.50 99.13 101.25 104.00 76.75 100.13 105.75 105.25 99.88 100.25 107.00 101.50 98.00 113.00 102.00 97.50 98.50 95.50 102.50 109.77 104.50 99.50 107.13 98.25 103.50 100.00 98.75 99.38 99.13 91.88 94.75 102.50 94.88 89.13
13.2x 10.4x
NM 9.4x
1.0x 1.3x
1.0x 1.1x
7.5x
7.2x
NM
NM
6.1x 3.0x
5.6x 2.0x
NM 6.4x
NM 6.0x
14.4x
NM
1.5x
1.5x
15.8x
NM
8.3x
8.3x
5.5x
4.7x
NM
NM
4.7x 8.3x
4.6x 6.2x
8.2x NM
8.0x NM
4.8x
3.7x
NM
NM
2.9x
2.0x
NM
NM
6.1x
5.6x
NM
NM
6.7x
6.0x
16.3x
16.0x
4.0x
3.2x
NM
NM
3.7x NA 7.5x
1.9x NA 7.2x
NM NM NM
NM NM NM
NA
NA
NA
NA
Source: SEC filings; Bloomberg Note: Results as of the most recent trailing twelve month period [1] Excludes convertible notes and notes with less than $100 million currently outstanding
27
February 2016
February 2016
$800,000,000 Revolving Credit Facility and Term Loan
Lender
$325,000,000 Revolving Credit Facility and Term Loan Joint Lead Arranger, Sole Bookrunner, and Administrative Agent
December 2015
November 2015
March 2016
$350,000,000 Revolving Credit Facility
February 2016
December 2015
a portfolio company of
a portfolio company of
has been acquired by
has been acquired by
Joint Lead Arranger and Joint Bookrunner
Sell-Side Advisor
Sell-Side Advisor
September 2015
July 2015
July 2015
$800,000,000 Senior Unsecured Notes
has announced its divestiture of Fittings & Tubing Business to
$300,000,000 Revolving Credit Facility
$350,000,000 ABL Credit Facility
Joint Lead Arranger and Joint Bookrunner
Participant
$35,500,000 Sell-Side Advisor
$2,200,000,000 ABL Facility, Term Loan, and Senior Unsecured Notes Joint Lead Arranger and Joint Bookrunner
July 2015
July 2015
April 2015
April 2015
March 2015
$1,000,000,000 Senior Unsecured Credit Facilities
ABL Credit Facility and Term Loan
$250,000,000 Sr. Secured Credit Facilities
$200,000,000 Sr. Secured Credit Facilities
$230,000,000 Sr. Secured Credit Facilities
Lender
Sole Lender
Joint Lead Arranger and Joint Bookrunner
Joint Lead Arranger, Sole Bookrunner, and Admin. Agent
Lender
March 2015
December 2014
December 2014
December 2014
November 2014
$62,000,000 Sr. Secured Credit Facilities
Incremental Term Loan
$300,000,000 ABL Credit Facility
Joint Lead Arranger, Joint Bookrunner, and Administrative Agent
Joint Bookrunner
Co-Manager
a portfolio company of $250,000,000 Revolving Credit Facility
has been acquired by
Lender
Sell-Side Advisor
Joint Lead Arranger, Joint Bookrunner, and Administrative Agent
October 2014
September 2014
September 2014
September 2014
July 2014
$235,000,000 Sr. Secured Credit Facilities Joint Lead Arranger, Joint Bookrunner, and Syndication Agent
$150,000,000 Sr. Unsecured Mirror Notes
$100,000,000 Sr. Secured Credit Facilities
Co-Manager
Sole Arranger, Sole Bookrunner, and Admin. Agent
was acquired by $1,075,000,000 Sr. Secured Credit Facilities Joint Lead Arranger and Joint Bookrunner
$111,000,000 Sell-Side Advisor
BUILDING PRODUCTS TEAM CONTACTS For additional information on KeyBanc Capital Markets, please contact any of the individuals listed below. Pat Curry Managing Director 212.476.7428
[email protected]
Sokol Cano Director 212.476.7449
[email protected]
Luke Pasch Analyst 212.476.7422
[email protected]
Ross Anderskow Analyst 212.476.7494
[email protected]
28
