Builders FirstSource, Inc.

Good morning and welcome to the Builder's First Source First Quarter 2019 Earnings Conference Call. Today's call is being recorded and will be archived at www.bldr.com. It is now my pleasure to introduce Mr. Bennett Sungbee, Vice President, Investor Relations.

Thank you, Rochelle. Good morning and thank you all for joining us for the Builder's First Source First Quarter 2019 Earnings Conference Call. With me today are Chad Crowe, Chief Executive Officer, and Peter Jackson, Chief Financial Officer. A copy of the slide deck referenced on this call is available on the Investor Relations section of the Builders First Source website at www.blvr.com. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. Any reproduction of this call, in whole or in part, is not permitted without prior written authorization of Builders First Source. And as a reminder, this conference call is being recorded today, May 3, 2019. Builders First Source issued a press release after the market closed yesterday. If you do not have a copy, you can find it on our website at BLDR.com. Before we begin, I would like to remind you that during the course of this conference call, we may make statements concerning the company's future prospects, financial results, business strategies, and industry trends. Such statements are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties, which could cause actual results that differ materially from expectations. Please refer to our most recent Form 10-K filed with the Securities and Exchange Commission and other reports filed with the SEC for more information on those risks. The company undertakes no obligation to publicly update or revise any forward-looking statements. The company will discuss adjusted results on this call. We have provided reconciliations of non-GAAP financial measures to their GAAP equivalents in our earnings press release and detailed explanations of non-GAAP financial measures in our Form 8K filed yesterday, both of which are available on our website. At this time, it is my pleasure to turn the call over to Mr. Chad Crow.

Thank you, Bennett. Good morning, and thank you for joining our call today. I will start with an update on our first quarter achievements, then Peter will discuss our first quarter results in more detail. I will then finish with an update on our strategic priorities and outlook. I'll start on slide three. I'm extremely pleased with our strong start to 2019 as we managed to outperform the market, demonstrating the resilient strength of our company, strategy, and team. We continued to capitalize on our competitive advantages and realize the increasing benefits of our investments and initiatives. While commodity price deflation decreased our net sales by more than 9%, we grew our sales volume by nearly 7%, substantially outperforming recent housing starts. Adjusted EBITDA grew by almost 22% compared to the first quarter last year. Excluding deflation, our value-added product sales grew by an impressive 10% as we continued to benefit from our investments in capacity as well as investments in our sales force. Our team continued to execute our strategy in a challenging quarter, and our results clearly reflected. Our operational excellence initiatives continue to show tangible progress. As we have discussed on prior calls, our primary initiatives are focused in four areas, enhanced business analytics, pricing management tools, our MyBS Builder customer portal, and delivery optimization technology. To date, we have rolled out our delivery optimization system to nearly 170 locations, measurably improving the speed, uptime, and reliability of our distribution network. We expect these initiatives to contribute between $14 and $16 million to our EBITDA in 2019. We are increasingly realizing the growth and margin expansion benefits of our investments in value-added products capacity, while becoming an even more important partner to our customers by helping them solve challenges like increasing costs, labor scarcity, and long cycle times. Our plans to continue expanding our manufacturing and value-added capacity remain on track. During the balance of 2019, we intend to invest in three new truss plants, approximately eight new truss lines and existing plants, door facility expansions, and new machinery and systems to a dozen more. We are extremely proud of our industry-leading production capacity, sales force, and distribution network, and will continue to invest to enhance our position. I will talk more about our value-added products and their potential a little later in the call. I will now turn the call over to Peter, who will review our first quarter financial results in more detail.