Builders FirstSource, Inc.

Good morning and welcome to Builders First Sources' third 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 Lee, Vice President, Investor Relations. Please go ahead.

Thank you, Chantel. Good morning, and welcome to Builders First Source third quarter 2019 earnings conference call. With me on the call today are Chad Crow, 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 8-K filed yesterday, both of which are also available on our website.

I will now turn the call over to Chad Crow. Good morning, and thank you for joining us. I will start on slide two. Our team delivered an impressive performance in the third quarter, building on our year-to-date progress to produce above-market growth, expand margins, and generate outstanding cash flow. I am proud to say that we recorded the 13th straight quarter of year-over-year increases in adjusted EBITDA and achieved an EBITDA margin of 8.1% of sales, our highest quarterly percentage since our 2015 acquisition of ProBuild. Our ongoing strategic investments in market-leading value-added products capacity has provided the targeted growth, margin, and customer value benefits we anticipated. Our operational excellence initiatives also continued to gain momentum and are contributing to our results. And notably, Our strong cash flow and working capital management continue to fund our investments, which included an acquisition of three strategic trust manufacturing plants and further pay down of debt. We were especially pleased to achieve the low end of our long-term targeted ratio of net debt to adjusted EBITDA of two and a half times as of the end of the quarter. We believe our success is a direct result of our commitment to our strategic initiatives. Our momentum in sales volume during the quarter continued from the strong first half of 2019, supported by an improvement in all of our end markets. For the first nine months of the year, sales volume, excluding commodity deflation, grew by more than 6%. Once again, our value-added product categories led to volume growth, increasing in sales volume by an estimated 9% in the first nine months as we continued to realize the benefit from years of strategic investments. Commodity deflation negatively impacted sales by nearly 13%, which led to an overall decline in reported sales of 7%. Despite the headwinds, we grew adjusted EBITDA by 8% compared to the same year-to-date period last year, thanks largely to our team's focus on executing our growth strategy that drove a 300 basis point improvement in gross margin percentage. Our operational excellence initiatives continue to have a positive impact on our results. As mentioned on our previous calls, we are executing upon key initiatives with specific action plans in four key areas, enhanced business analytics, pricing management tools, our MyBFSBuilder customer portal, and delivery optimization technology. During the first nine months, we saw the benefit of these initiatives, especially with our pricing tool implementation and delivery optimization platform, which has improved our distribution network in terms of speed, uptime, and reliability. At the same time, we have laid the groundwork to enhance efficiency in other areas such as on-time delivery and inventory management, which Peter will discuss in more detail. We remain on track and expect a benefit of between $14 and $16 million to our adjusted EBITDA in 2019 from these initiatives. Our market-leading network of value-added offsite component manufacturing facilities has positioned us well to meet the growing demand from homebuilders for productivity and efficiency in the face of ongoing increases to labor costs and scarcity. In July 2019, we expanded our presence to the Las Vegas and Phoenix markets by purchasing three truss manufacturing facilities. Our ongoing organic investments also continued during the quarter, and we are on track to have two new greenfield truss plants and approximately eight new truss lines and existing plants by year end. In addition, we are investing in door facility expansions as well as new machinery and systems and a dozen more of our value-added operations. We will continue to invest in expanding our industry-leading production capacity, sales force, and distribution network. Our commitment to broadening this competitive advantage is what has led to our above-market growth and outstanding track record of performance. I will now turn the call over to Peter who will share our third quarter financial results in more detail. Thank you, Chad.