Builders FirstSource, Inc.

Good morning and welcome to the Builders First Source second quarter conference call. At this time, all participants are in a listen-only mode. Following the company's remarks, we will conduct a question-and-answer session. Today's call is being recorded and will be available at www.bldr.com. It is now my pleasure to introduce Mr. Bennett Sung Vee, Vice President, Investor Relations.

Thank you, Kathy. Good morning and welcome to the Builders First Source second quarter earnings conference call. With me today are Chad Crowe, Chief Executive Officer, and Peter Jackson, Chief Financial Officer. A copy of the slide presentation referenced on this call is available on the Investor Relations section of the Builders First Source website at BLDR.com. Before we begin, let me note 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 to 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. I will now turn the call over to Chad Crow.

Thank you, Bennett. Good morning, and thank you for joining us. I will start on slide three. I am very pleased to share with you another outstanding quarter of execution and results delivered by the 15,000 team members of Builders FirstSource. During the second quarter of 2019, we made significant progress in the execution of our strategic plan and again delivered above-market growth, expanded margins, and exceptional free cash flow generation. We continued our strategic investments in market-leading, value-added products and solutions while realizing the growth, margin, and customer value benefits from these investments made over the last several years. Our operational excellence initiatives also continue to gain momentum and are delivering measurable results. And, of course, our strong cash flow and working capital management continue to underpin our investments, while at the same time enabling the reduction of our ratio of net financial debt to adjusted EBITDA to 2.7 times at the end of the quarter. Our second quarter results and performance built on a strong start to 2019, providing momentum as we enter the strength of the selling season. In the first half of 2019, we grew our estimated sales volume, excluding commodity deflation, by more than 4%, well above overall housing starts, which actually declined during the period. In the first six months of the year, net sales declined by 7% as sales volume growth was offset by commodity price deflation of more than 10%. Consistent with our strategic plan, value-added products led to growth, increasing in estimated sales volume by 7% in the first half as we continue to realize the benefits of our investments. Adjusted EBITDA grew by 11% compared to the first half of last year as our team delivered on our objectives, demonstrating strong margin management and overall execution. Our operational excellence initiatives are gaining momentum and remain on track. As mentioned on previous calls, our primary initiatives consist of specific action plans underway in four key areas. Enhanced business analytics, pricing management tools, our MyDFS builder customer portal, and delivery optimization technology. During the first half, we completed the rollout of our delivery optimization system to approximately 200 locations. measurably improving the speed, uptime, and reliability of our distribution network and continue to realize the benefits of our pricing tool implementation as well. We continue to expect a benefit between $14 and $16 million to our EBITDA in 2019 from these initiatives. As our customers continue to face increased labor costs and scarcity, they increasingly look to partner with us for solutions. Our market-leading manufacturing and value-added capacity and capabilities have positioned us well to meet this growing opportunity. In July of 2019, we purchased three manufacturing facilities in Arizona and Nevada, expanding our presence to 40 states and 77 of the top 100 MSAs. During the balance of 2019, we also plan to add three new truss plants, approximately eight new truss lines and existing plants, as well as door facility expansions and new machinery and a dozen more of our value-added operations. Our industry-leading production capacity, sales force, and distribution network are key to our competitive advantage, and we will continue to invest in extending our leading position. Later in the call, I will talk more about the competitive advantage that we are further leveraging through the combination of our national scale, local management focus, and network market densities. I'll now turn the call over to Peter, who will review our second quarter results in more detail. Thank you, Chad.