Builders FirstSource, Inc.

Good morning and welcome to Builders First Source, fourth quarter and full year 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 Songvee, Vice President, Investor Relations. Please go ahead, sir.

Thank you, Carrie. Good morning, and welcome to the Builders First Source fourth quarter and full year 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 vldr.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 equivalent 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. In January, we announced my planned retirement. This was a very tough personal decision after 20 years of serving Builder's First Source alongside such an extremely talented team. On the heels of record 2019 results, I fully expect this team to continue delivering exceptional performance for many years to come, and I'm confident that the combination of our talented employees and value creation initiatives will elevate the company to even greater heights. I also want you to know that I am assisting the Board in the search for my replacement, and while the Board is making great progress, there is nothing significant to report as of yet, but we will keep you updated as appropriate. Moving to full-year highlights, we delivered another strong financial performance and further built on our record of success. Our 16,000 team members once again executed on our strategy and delivered value to our customers while also generating value for our shareholders. Our gross margin percentage improved 230 basis points, allowing us to achieve record annual EBITDA of $516 million, up 3% year-over-year. Our unrivaled platform showed its strength throughout the year as value-added sales volume grew by an impressive 9%. We continue to make strategic investments in our growth capacity and align our services with customers to streamline their construction processes. Our exceptional team accomplished these results while implementing working capital initiatives that helped generate a record $391 million of free cash flow for the full year. We were especially pleased to have funded our acquisitions while reducing our net leverage by more than half a turn to 2.5 times as of year-end. We completed five tuck-in acquisitions in key growth markets, including Las Vegas, Phoenix, Florida, and the Carolinas, which have added approximately $240 million in annual value-added revenue to our business. Turning to slide three, I would like to spend a few minutes highlighting several of our strategic achievements in 2019. We continued to leverage the strength of the platform we created in 2015. Our national scale and strong local customer relationships allowed us to grow sales volume in all three customer segments and in every region in excess of growth and housing starts. Total sales volume grew by 7%, which was more than twice the rate of U.S. housing starts, as we increasingly partnered with our customers to deliver value. We continue to realize the growth and margin expansion benefits of our strategic investments and value-added products, capacity, and services by helping our customers solve challenges like increasing cost, labor constraints, and waste management. We are committed to the expansion of our component manufacturing network, which is strategically located across the country. In addition to greenfield investments, the five tuck-in acquisitions completed since mid-year 2019 have brought six additional truss manufacturing and millwork facilities to the Builder's First Source family for a total of 64. 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. The continued ramp-up of these facilities will enable us to capture a higher share of the expanding off-site fabrication in-market. Our ongoing operational excellence initiatives continue to gain momentum, contributing $25 million to adjusted EBITDA in 2019 alone, which was well ahead of our $14 to $16 million target. These best practices are being implemented throughout the organization to make our company more agile and easier to do business with while generating strong financial returns. Key initiatives and process include investments in distribution and logistics software, pricing and margin management tools, back office processes, process efficiencies, and information system enhancements. The rollout of our pricing optimization has been particularly successful and is showing tangible results. Where implemented, we have provided our associates with faster and more accurate pricing information, along with customized market tools and analytics, enabling us to execute our strategy on a local level. Our 16,000 associates are key to our success. Ensuring that we hire, train, and retain the best people continues to be a top priority. We added or promoted 250 new sales team members in 2019 and invested in leadership and succession planning programs to ensure a pipeline of future leaders. We also rolled out sales training tools to every region to systematically drive productivity in our high caliber sales culture. We are committed to growing and developing talent throughout our organization. I will now turn the call over to Peter, who will review our fourth quarter financial results in more detail.