Good morning. Welcome to Builders FirstSource Investor Day 2021. I'm Mike Neese, Senior Vice President of Investor Relations. Welcome to the Dallas area. For those of you who have come, we really appreciate the attendance and coming to our Investor Day. For those of you on our webcast, we look forward to hearing from you. We have a live chat feature for you to ask questions. Okay, a couple housekeeping items. First and foremost, let's make sure we put the mute on our cell phones. Appreciate that. Two, restrooms are in the foyer. Three, we have Wi-Fi, login, password. We have a QR code. That should be all on your tables. The slides can be found on the website for those of you on the webcast. Safety is very important to us. If we have to evacuate, exit sign's to the left, back, and to the right. Stairs are in the back of the foyer. Okay. Let me direct you to the safe harbor and forward-looking statements of our presentation. Now, let's get into the agenda. You all have copies of the agenda at your tables. A few seconds, I'm gonna be introducing Dave Flitman. He'll be talking about the transformation in the home building industry. Next, Mike Farmer, Lea Allah will talk about accelerating growth and productivity in our diversity inclusion initiatives. We'll have a 30-minute Q&A from about 9:45 A.M. to 10:15 A.M. We'll take a 15-minute break. Snacks are here to the right. Again, restrooms are out in the foyer. We'll come back at 10:30 A.M., and Dave Rush, our integration head, will talk about our synergy efforts around the merger. Tim Page and Nate Herbst will talk about our accelerating digital platform. Really excited to hear from them. Then Peter Jackson will wrap it up and put a bow on these 2025 financial targets that we're gonna leave you, and it's about growth. This company is about growth, and you're gonna hear about it from all the leaders. We have several leaders who are not presenting in the back of the room. They're available during the break, during the lunch. Then we will head over to lunch around 12. Let's call it 12:00 P.M., and we'll have lunch next door from 12:00 P.M. to 1:30 P.M. Then for those of you who can't make the facility tour, we do have a bus going to DFW and Love. For those of you who are going to our Coppell facility tour, we're gonna meet in the lobby at 1:40 P.M. 1:40 P.M., please bring your bags, luggage, all your personal belongings. Okay, it's my pleasure to introduce Dave Flitman, our CEO, to the stage. Thanks, Mike. Good morning, everyone. We are thrilled to be hosting our first ever Investor Day here at the beautiful Gaylord Texan in Grapevine. We're thrilled that you're with us. We appreciate everybody that's joined us here in the room this morning, as well as the many that have joined us online through our virtual webcast. We've got an exciting agenda for you over the next three hours, so let's get started. We have four key messages that you'll hear about throughout the course of the day, not just from myself, but from the rest of our speakers. First, we have a strong track record of execution with a very strong value proposition underpinned by a differentiated platform and very strong focus going forward on customer-focused solutions for the business. We have three significant catalysts ahead in the business. First, for the first time ever, we're gonna talk with you this morning about what we've defined as the BFS One Team Operating System, and that's how we're improving every aspect of our business. Second, we're excited about our digital transformation. We feel we're uniquely positioned in this marketplace to drive that transformation well into the future. Finally, we've been quite busy this year, and we're in the early stages of our sustainability and ESG work, and you're gonna hear about that throughout the course of the day as well. Third, we've got robust and accelerating free cash flow generation coupled with what we've already demonstrated to be disciplined capital deployment. We believe that will allow us to generate above-market growth and profitability for many years to come. Finally, we believe BFS is at the heart of transforming the home building industry, and that will lead us to compound shareholder value for a long time to come. When we were talking about the merger, putting BMC and BFS together, we felt we had a unique opportunity to differentiate both legacy companies. We spent a lot of time on the theory of the case, and coming away from that, we believed that we had the opportunity to create a platform that was highly differentiated, with unmatched size and scale, with the geographic footprint and reach that our customers not only needed, but they were asking both legacy companies for. We believed we could create a product and services portfolio like none other in this industry. Finally, and this was a hallmark of both legacy companies, we had a drive and a hunger to innovate. As I stand here just about one year since we closed the deal, I couldn't be more excited about what we've done, but importantly, the future of this great company. Watch. We believe in building what comes next. For us, that means taking the best parts of today, improving upon them, discovering new possibilities, and pushing our industry forward. Everything we do at Builders FirstSource is dedicated to helping our customers be more successful in the craft and business of home building today and into the future. Our industry-leading construction solutions are designed to automate manual tasks, maximize efficiency, and accelerate build times to new levels. We can do this because every day, more than 28,000 Builders FirstSource team members come to work excited to match our ingenuity and dedication up against the ever-changing challenges of home building. On top of this, we have a bold vision to harness the power of innovation and unleash it to revolutionize the future of home building. We outwork, outthink, and outperform today because we're on a mission to transform tomorrow. We are clearly excited about our future. I get amped up every time I see that video. Hopefully it did it for you as well. But I wanted to spend just a minute, not just on where we're going, but the strength of what we have today and what we've built through this merger. We have a unique market position, and we believe we have differentiated and sustainable competitive advantages. I just wanna walk you through each of those quickly. First, we are a national leader and a consolidator in this industry with arguably the best balance sheet of anyone in the space. That's how we built this company, and we believe we will continue to drive that going forward. Second, we have an exceptional geographic footprint, and we'll talk about that in a few minutes. Third, we are an unmatched one-stop shop with innovative solutions and a product portfolio that exceeds 1 million SKUs today. Next, we will continue to invest disproportionately in the value-added capabilities that we've developed and have become the hallmark of our business. We believe that will continue to drive outperformance and share gains in the market and continue to enable us to expand our margins over time. Next, we have exceptional and expanding cash flow generation, as we've demonstrated this year. We are reaffirming what we've already said. Our long-term leverage target is between 1x and 2x. Finally, we have an experienced management team here that's quite seasoned. I would put up against any management team in any industry. That confluence of factors there, we believe, have created a differentiated market leader that positions us for above market growth and profitability well into the future. Let's look at it in a little bit more detail. We are clearly, today, the largest supplier of building products, prefabricated components, and value-added services to the professional builder space. Reaffirming what we told you last month, our guidance for the full year is to achieve $19.5 billion in revenue, approximately $2.9 billion in adjusted EBITDA, and reaffirming our approximately $1.9 billion in free cash flow for this year. Importantly, we have transformed this company from its humble beginnings as an LBM distributor into a value-added solutions provider for our space. As you see on the left-hand wheel here, this represents the product mix for our base business. Just as a reminder, we have defined the base business to fix lumber prices at $400 per thousand. As you can see, the value-added portion of that base business is now 43%, and it's the fastest-growing portion of our company. You combine that with our specialty products and fully 2/3 of the company is focused on value add and specialty capability. As you see in the middle wheel, we have great geographic balance across the country. Finally, on the right-hand side, I love our footprint. We now have 560 locations, importantly located in 39 states and 84 of the top 100 MSAs in the country. A little known fact is our geographic footprint now touches where 90% of the U.S. housing starts are for single-family. We love our footprint and what we've built. Importantly, we are also benefiting from some favorable industry trends. Let me just walk you through this slide. As you see on the top left-hand portion, there is a 25-year trend of 30-year fixed mortgage rates. As you can see over that lifetime of that slide, we are just now bumping off the bottom of historical low interest rates. Secondly, on the top right, you can see that household formations remain incredibly strong, driven by shifting demographics and a significant underbuild in the industry. Finally, on the bottom, both single-family starts and homes under construction importantly will be at the highest level this year that they've been in the last 15 years. Single-family starts will exceed 1 million for the first time in that time period, and that compares quite favorably to what has averaged less than 750,000 starts for the last decade. Importantly, that underlying demographic shift and the strength of the demand means we believe that demand will continue for a long time to come. Said a different way, to make up what we believe is a $4 million-$6 million gap in underbuild over the last decade in this space, it would take sustained 2 million single-family starts for the next decade to make up that gap. We believe those favorable industry trends will continue and provide a nice tailwind of growth for the future. If you take what we've built and the strength of our platform, coupled with those favorable industry trends that I just covered, we believe we're poised to capture significant market growth going forward. In fact, you can see in the left-hand wheel here, we now estimate about 10% market share in what is a single-family market of $150 billion and growing in single family. Importantly, on the bottom of that wheel, you see that over the last three years, we have grown more than 20% faster than the market, which has enabled us to capture share. Also, if you look in the middle of the slide, you see that we have relatively small percentage shares in both multifamily and professional R&R space, which we are working to grow in a targeted fashion. We believe bringing all that together, we are highly confident that in the next four years, we will outpace market growth by somewhere between 100 and 300 basis points on a consistent basis. Let's talk about how we plan to achieve that. At the heart of our company is our people. Central to their work is our mission, vision, and values. We spend an awful lot of time inside the company talking about this every single day. I thought I'd take just a couple minutes here and share with you our mission statement, our vision, and our values. Our mission is to be the best supplier of building materials and services by having a people-first culture, both inside the company and outside the company, in how we deal with our external constituents. That's very, very important. Our hallmark is exceptional customer service and providing those innovative solutions to create superior value, not only for our customers, but for all of our stakeholders. That mission leads to our vision, which is to make the dream of homeownership more achievable for everyone. That's a powerful statement. As you know, homeownership is still the major pathway to wealth creation for many families across this country over the long term. We're excited about that. Our people can rally around making a difference in providing homeownership for people across this nation. That vision leads to our core values. The acronym for them is SPICE, and I'll just walk you through each one of them, equally important. First is safety. We absolutely every day make safety the hallmark of what we do in our company. Those inside hear me say quite often that if we can't keep our people safe inside our operations or at our customers' job sites, nothing else that we're gonna achieve in our company even matters. I'm very passionate about that, and we'll talk more about it as the day goes on. People. We already touched on this. We lead with a people-first culture. Very, very important to our work. We're honest with ourselves, and we're honest with everyone that we deal with outside the company, all those external stakeholders. Our customers are obviously core to what we do. We work hard to deliver exceptional customer service to them, but importantly, also partner with our customers to think about what the future needs to be, what solutions we need to create for them to solve their most difficult challenges and problems. Finally, excellence. It says on the slide that we challenge the status quo, and the mentality that we have is we have to get better in every aspect of our business every day. You know, I often say the day you think you've arrived, it's game over. We have to continuously improve in all aspects of our business. We believe this is the baseline for how we're gonna continue to outperform today and transform tomorrow. When we put the two legacy companies together, we thought it was important very quickly to align on a powerful strategy for the business, and you see it here on this slide. The beauty of it is that it's simple, it's working, and every team that we have inside the company understands quite clearly not only what they have to do to help us achieve the strategy, but importantly, what's required of them to deliver the underlying business results that we need to have. I'll just step you through the four pillars of our strategy quickly. First, we will continue to drive outpaced growth in our organic growth in our value-added portions of the business. We're investing heavily to do that. We believe we have a long runway of growth ahead. Secondly, great companies get better at what they do each and every day. They drive outpaced growth by taking that efficiency that they gain from that work and reinvesting a portion of that back into the company to fuel that growth. That's how we think about our second pillar. Third is to continue to build our high-performing culture. Not only attracting the right talent to our company, but making sure that they feel like they have a career path and not just a job inside our company. Fourth, and importantly, is to continue to pursue strategic tuck-in acquisitions. It's been the hallmark of both legacy companies. You already heard me say we've got a fantastic balance sheet. We've got a track record of M&A. We believe there's nobody better positioned in this space to continue to roll up the industry than us. Let's talk briefly about each one of these pillars. The first is organic growth of our value-added solutions. Obviously, single-family starts are very important to the company. It represents about three-quarters of what we do today. We believe we're well-positioned to capture a disproportionate amount of that single-family growth going forward, and importantly, continue to focus on growing both our multifamily and professional R&R segments in targeted markets as we've outlined that we're focused on. Second is providing those off-site solutions for our customers. We believe there's been a sea change in labor. It's gonna be tight, not just today, not just tomorrow or next year, but for a long time to come. Our builders are looking for ways to get more efficient at their job sites every day. Our value-added solutions, where we take work off the job site, helps them deal with both of those challenges and operate more effectively. Importantly, we believe that'll be a strong tailwind to not only growth, but profitability for the company for a long time to come. We have demonstrated the ability to deploy capital to these solutions, and we will continue to do so. Continued investments in our millwork, both new equipment and automation, to make sure that we have the capacity to meet the market demand. We're excited about our manufactured components. We talk about it all the time. Year-to-date, we have 48% organic growth. We have more than 100 manufacturing locations across the country, and about 90% of them today have some form of automation, and we will continue to invest in that automation to make sure we have the capacity that we need. Also it helps us deal with some of the labor challenges that we're not immune to in our own company. Finally, READY-FRAME®, a small but important part of our portfolio, and we've worked aggressively over the past several years to extend that capability from the Western geography, where it was originated across the eastern part of the country. Year-to-date, we have a 31% increase in home penetration with READY-FRAME®. Bringing all this together, we believe we have a long runway of growth organically in our value-added solutions. Secondly, you heard me say earlier, the hallmark of great companies is continuous improvement, and we obviously subscribe to that. Today we're unveiling for you for the first time what we have outlined as the BFS One Team Operating System. The best way to think about that is continuous improvement in three key areas of our business aimed at developing the right business processes and practices to drive continuous improvement. The first area is in building our people. You heard me speak already about the importance of safety, and we'll talk a little bit more about that over time. Training and development of our talent, making sure that we identify the right potential leaders inside the company, and they get not only the training, but the experiences job-wise that they need to prepare themselves for the next level inside the company. Third, and importantly, you know, when you've got an organization with 28,000 people, harnessing that power, keeping all your team members engaged every day is very important. We do that in a number of ways. We have an annual employee engagement survey, and we support that with quarterly pulse surveys. The point of that is to understand exactly what we need to be providing our people all over the company to ensure their success, and they have the tools and the capability to deliver what we need them to deliver. Second is building excellence, and that's based on the Lean Six Sigma mentality. We have more than 20% of our 28,000 team members trained in lean mentality already today and understand those tools and capabilities and how to apply them. Customer service and providing the right experience for our customers is part and parcel to all of that. Finally, I believe great companies drive that productivity on an ongoing basis. We have targeted on an ongoing basis well into the future, 3%-5% of annual productivity improvement. Again, you already heard me say that we will take a portion of those savings and gains and reapply them back into driving growth and fueling the future. Finally, if you do the first two of those well, driving excellence and building people, you will drive growth. Three key areas. There is commercial excellence. You'll hear more about that from Mike Farmer in a few minutes. Let me just say that a lot of people say sales growth is an art. We believe it's both an art and a science. There are disciplined processes and practices that are proven that we're applying that are also part and parcel to helping us drive our market growth. Second is innovation, making sure that we're getting ahead of the game versus our competition, and understanding better than anyone where our customers are going so that we can provide the right solutions to them in the future. Finally, mergers and acquisitions. Continuing to roll up this industry is an important part of what we'll do in the future. We've had a lot of work so far this year. We've had a little merger going on. We've had some synergies to deliver. Oh, by the way, we've acquired five companies. I want you to understand from me that we are still doing work and are in the early innings of our ESG journey. I'd like to highlight just a few points for you. First of all, green building is a priority for our team, and we have great supplier partners that supply products to us that are certified by the Forest Stewardship Council. That's important to us, as well as many of the windows and doors that we sell are ENERGY STAR qualified. Importantly, from a product standpoint, we talked already about READY-FRAME®, but what you might not appreciate is we have third-party independent verification that READY-FRAME® applied to a 2,300 sq ft home will save about eight trees in producing the framing for that home. Importantly, it will also reduce the dumpster hauls away from the job site by t2/3 versus stick framing. Finally, there's a lot less sawing and ladder climbing at job sites, so we have proven documentation that READY-FRAME® improves safety at the job site by 60%. We already spoke about safety and the importance to the company. What I failed to mention is that over the last two years, we've made great progress in keeping our people safe, and we have delivered a 26% reduction in recordable injuries across the company. It's a journey that never ends. We're getting better, but we're not gonna stop, and the goal is zero. We don't want anyone to get injured working in our operations, ever. Secondly, on that note, you know, there's a lot of things that I'm very proud of in this company, not the least of which is the servant's heart that I see all over the country as I fly around and visit our teams. They are very engaged in philanthropic work all across the country where they live in the communities that they work. You see a few of them listed here. I'll just highlight one, which is the Leukemia & Lymphoma Society, where over the last 10 years, our team members have raised more than $5 million to support LLS. We'll be honored this year to be one of the top five corporate donors across the country. Finally, we have a seasoned board, very experienced in the industry, and a very strong governance process. We have an energized and excited and very experienced management team whose compensation is well aligned with shareholder interests. We believe even though that we're in the early innings of our ESG work, it's important work, and you can expect the first CSR report, corporate sustainability report, from our company in 2022. Along that theme, we're honored today to give you a gift. We will be planting 10 trees in honor of each of you who are attending either in person or virtually with us today. Thank you for being here, and thank you for participating with us. Our third and important pillar is to continue to build our high-performing culture. You heard me speak already about safety and the importance of our environmental and social responsibility. I'll spend just a minute on this slide and talk about the work we're doing around talent, making sure that we're acquiring the right talent, developing and equipping our employees for the future, and making sure that we're holding on to that talent. This has been a challenge not just for us, but for the entire industry, and so we've done some unique things in the last couple years. First, we've worked hard to develop a strong military recruiting program. There are a lot of folks exiting the military every year, and what we find is they make fantastic employees. They come from a disciplined background, they're committed, they're hardworking, and they come with high integrity. Over the past couple years, we have hired several hundred folks who are transitioning from the military, and we're very excited about that platform and building that out even further. We've reinvigorated our college recruiting program. You know, we've got more than 700 designers. We've got a lot of technical work. For us to show up in colleges and recruit has been meaningful, and we've also had great success there. Importantly, we've developed internal leadership development programs that make sense for our company and our space. It's a combination of classroom training and then sending our people back to the field to solve real-life problems to help make our company stronger. We're excited about that, and we continue to build out several levels. Finally, diversity and inclusion is very important. You'll hear from Lea in a few minutes about the important work that we're doing on the D&I front. Finally, and importantly, and I've talked about this already, pursuing accretive tuck-in acquisitions is the fourth pillar of our strategy. It's what we do. You know, and importantly, our merger represented. I'm not sure if you appreciate this, but our merger represented more than 60 acquisitions through the course of time. It's how this company has been built. As you heard me say, there's no one better positioned to continue to roll up this industry than us. As we think about acquisitions, there are three key lenses that we look at potential targets through. The first is how does it help us, on the left-hand portion of this slide, expand our geographic scale? Either getting increased coverage in an existing market where we might not have the right locations to cover the market or, importantly, have the full suite of products in our value-added portions of the business, to make a difference for our customers. Second is having leading positions in those markets, particularly where we go in where we haven't been or didn't have a strong position. A great example of how we did that this year is through the Alliance acquisition in Arizona, where we had a few locations but we had less than 5% market share. That acquisition vaulted us to the number one leading market position that encompasses the fastest growing county in the United States. That's why that one made so much sense. Secondly is increasing our value-added products and capability. We do that all the time. A great recent example is the acquisition we did in California, CA Truss, the largest component manufacturer in the state. We already had a presence in component manufacturing, and together, we really can't be beat. Third is technology advancement, and you've seen us make two acquisitions this year, Paradigm and Katerra's legacy assets, Apollo. We're gonna talk more about that going forward, but I just wanted to provide some clarity on how we think about M&A going forward. On the right-hand portion of this slide, you see what the target pool looks like. The top portion are the larger opportunities. Listen, you have to be opportunistic about those. You can't really plan for big things coming your way. We keep an eye on that stuff all the time, but where we're focused is the bottom portion of this slide. We tend to fish where the fish are. Right now we have over 1,100 targets in the marketplace, somewhere between $15 million and $100 million in revenue. That's been the hallmark of the company. That's kinda been what we've done here over the past number of years, and it's where we will continue to drive a disproportionate amount of our focus. Those 1,100 targets represent $26 billion in revenue. So we'd be quite happy to acquire a disproportionate amount of those sales going forward. To just underscore how important M&A is, we're excited to announce our latest acquisition to you this morning. We have just closed on Truss Technologies in Western and Northern Michigan. They are a fantastic company with $30 million in trailing 12 months revenue, a highly profitable manufacturer of both roof and floor trusses in three locations that are importantly in the fastest-growing counties in the state of Michigan. You can see the one location that we had here, so it brings great value to our very small presence that we had in value-added components in the state of Michigan. Importantly, they have a very strong and seasoned management team that will be staying on with the company going forward, and so we're excited to welcome all 110 employees from Truss Tech to the BFS family this morning. With that, as our sixth acquisition this year, we have acquired this year trailing 12-month revenues approaching $600 million through those six acquisitions. Importantly, and finally, to put a bow around M&A, you know how excited we are about the digital transformation that we believe that we're at the center of. That started with the two acquisitions that we did this summer with both Paradigm and Katerra's legacy Apollo assets. With that, those two acquisitions, we believe we have developed the capability to have an end-to-end platform and create a digital marketplace for home building over the course of time. Importantly, we have unmatched access to home builder plans. Coupling that with this platform, we believe we can create the right marketplace and put BFS at the center of that ecosystem going forward. Importantly, we see $1 billion of revenue opportunity over the course of the next five years. We're excited to talk to you in depth this morning about that strategy, and you're gonna hear from both Tim Page and Nate Herbst in a few minutes about where we're taking that going forward. Given all of what I've just talked about, the strength of our platform, the strength of the strategy and how we've been executing it over time, the financial results that we've delivered over the last couple of years in our base business, again, with lumber adjusted at $400, is quite compelling. Over the last two years, we have a revenue CAGR of 16% in our base business. Importantly, in the middle of this slide, we have doubled our earnings performance with a 40% CAGR in the last two years. While we've grown both the top and the bottom line through the great work we've been doing, improving the mix of the company, getting more efficient, driving merger synergies, we have improved the profitability of the business and adjusted EBITDA margin by 350 basis points. I would say this suggests that's a strong track record of success that we expect will continue going forward. With that credibility, we're excited to announce to you for the first time long-term financial targets in our base business. We expect to deliver over the next four years a 10% CAGR on the top line of the business in sales. A 15% CAGR on the bottom line in adjusted EBITDA growth over the next four years. A 30% CAGR in adjusted earnings per share, and importantly, a 50 basis points per year improvement for a total of 200 basis points in our base business in adjusted EBITDA margin. Given the strength of the cash flow and the leverage targets that I've spoken to you about, that means we will have between $7 billion and $10 billion of capital to deploy over the next four years. Let's look at these targets in a bit more detail and what they mean. On the top line, that 10% CAGR means we will take our revenues from what we expect to be $15.7 billion this year to over $23 billion in 2025. Importantly, we will grow our adjusted EBITDA by 2/3 from $1.8 billion anticipated this year to $3 billion in 2025. Our adjusted EPS will more than triple from an estimated $4.10 this year to over $12 in 2025. That 200 basis points improvement in adjusted EBITDA margin in our base business means we will go from this year an estimated 11.2% to over 13% in 2025. Again, all underpinned by that $7 billion-$10 billion in deployed capital through the period. Now, Peter, when he gets up in his piece here after the break, he's gonna talk with you not only about the assumptions that go into these numbers, but importantly, the key initiatives that will enable these results. With that, we have an excited, experienced management team. On the top row here, you're gonna hear from many of our senior leaders throughout the course of this day. In addition, we have many others in the room, our Chief Financial Officer, each one of our three Division Presidents are here, our General Counsel and Head of HR, as well as our Supply Chain Leader and a few others. I encourage you, if you haven't met them, reach out to them during a break, sit down and have lunch with them and have a great chat. With that, I'd like to introduce Mike Farmer. Mike is our President of our Commercial Operations, and Mike's gonna talk to you about the great work that we're gonna do going forward to drive and outpace market growth in our value-added areas of the business, as well as what we're gonna do to get more efficient at what we do. Mike. Thank you, Dave, and thank you for joining us here today. We're really excited about all the things we get to share with you throughout the session. I'm Mike Farmer. I lead our commercial operations, and I started with the company in 2006 and had some HR leadership roles and led HR for the company for about 10 years before moving into the operational and growth roles that I take on today. In a few moments, I'm gonna have Lea Allah join me and talk about our diversity program that she's leading for the company as well. Today I wanna talk to you about a few really important things that we have in front of us. One, we've identified that we have significant growth in front of us still. Our merger is off to a great start here, and we're really excited about where we're heading. You know, from the work we've been able to do this year, we're really happy about. What we're more happy about is the culture we've been able to bring together. Lea is gonna talk some about that here in her session. I couldn't be more happy with the way we've seen our two cultures come together. With that culture, we're able to drive significant growth. We've identified over $2 billion of opportunity that I'm gonna walk you through here in a moment. We have a long runway with our operating system. Our One Team Operating System is gonna continue to drive value pricing and our digital strategy to help leverage our position. We're gonna talk about our continuous improvement that we're gonna look forward to driving 3%-5% annual productivity gains. Then finally, Lea's gonna talk to us some about our commitment to our diversity and inclusion program. Our BFS One Team Operating System is a very simple way for us to boil down the processes and discipline around our strategy for our team members within BFS. I wanna talk to you today about a couple of the real core building blocks of that. One is how we're gonna build growth. Two is how we're leading innovation as a company. Three is our commitment to ESG, and fourth is how we're driving productivity through our operational excellence. Again, we're in the early stages of our growth opportunities here, and we couldn't be more excited about a few core areas. The first area is our ability to capture growth through our synergies. We've seen as we brought our teams and our sales team together, have identified early on the ability to drive synergies with our sales team. One area that's really important is that bottom left box here, which is we've been able to drive our components growth by 48%. That is one of our core value add products that we provide and one of our really strategic areas that we spend a lot of time with our builders around. The next area is our ability to get more from our existing assets. Really a lot of that drives around our commercial excellence. We think we have a real big opportunity that that'll help us drive significant growth through both our commercial excellence and our sales teams, our ability to add shifts to our manufacturing plant and drive productivity and growth through our automation. We've seen significant productivity through our truss plants of 20% this year. In a really busy year where we're scrambling for product, we were able to also improve productivity in this year, which we're really proud of. Third, I wanna talk about we're gonna continue to commit to CapEx to be able to invest in growth as well as invest in capabilities. I wanna talk to you about really that value add products CapEx growth that we're investing in, but also investing in new capabilities around pro remodeling, around having a more inside sales focus where we can help support our customers. That pro remodeling business is only about 20% of our business today, and we have a lot of growth in front of that, and really excited about what we can do to lay the foundation to continue to grow as an organization. Our commercial excellence is really that core to our ability to drive long-term growth, and I wanna highlight a couple key areas here for you. The first is our category management and our partnership with our strong supply chain team to really bring partnerships with our core partners that we deal with in the industry and suppliers and manufacturers, and making sure that we have the right assortment and that we have the right products to take out to our customers. The second is that we have a real strong pricing program, and that we have an understanding of where our costs are, and that we can really bring that transparency to our local teams and make sure that we're getting paid for the value we're bringing to the supply chain. Then third is our sales operations, making sure that we have good market intelligence, so we understand what's happening in the marketplace and have that really fill in that circle with our sales operations team. Third is fourth is providing that sales team productivity, that we're utilizing the right tools and resources to get the most out of our sales team that we can. We have a lot of really strong professional sales members that are out driving business for us every day, and being able to take these first three areas and drive support to them to help grow is really important. Finally is that sales analytics, which also gives us a significant amount of data to be able to not only leverage internally, but communicate with our customers. As we're out with our customers, we're able to sit down and talk about opportunities that we see together to improve process, where we're making extra deliveries or we see different products we can swap. That's been very beneficial, both on a national level but also on a local level. Innovation is one of our core differentiators as a company, and we're really excited about what we're able to bring to the table here. Over the last several years, we have been the leader in off-site manufacturing, and that addresses a significant need in the industry around just labor shortages out there and speeds up the building process. There's been significant adoption over the last 15 years that the industry's caught on to. Really some of the core benefits that we bring there are a 27% reduction in lumber going into a roof truss house versus a stick frame house. There's also 2.5 days saved by putting a roof truss on versus stick framing a house, which is significant and helps our builders improve cycle time. We also find that we're able to collaborate and cut waste with our builders by designing and bringing that process to the table. Third, I mentioned this earlier, but I think it's really important that we've been able to grow 48% in our components this year versus last year. Another area that's a real differentiator for us is our design, and we've been bringing functional design to be able to help support our builders, both in our local markets. Think about how we can support our national builders in a more efficient way, where they're building similar homes across our country and be able to scale, both locally and nationally. Finally, some of our product and service innovations. Over the past couple of years, we bought a company called Raney, who brings some different products to the table, specifically around floor cassettes. It's really interesting for us that we're gonna continue to explore. Finally, one of our key value-add products Dave mentioned earlier is our READY-FRAME® product, which has significant growth, but also some good ESG benefits I'm gonna talk about. READY-FRAME®, we did an independent study here a couple years ago that we found significant benefits for. The first thing is it's better. It's far more accurate, and it's the accuracy is down to 1/16 of an inch at your job site, which makes it very easy for our builders to put together in a fast way. It's faster. It improves the cycle times by 26%. It's 25%. It's a significant opportunity to speed up the process. It's also safer. It takes labor off the job site. There's 39% labor, and there's also less saw and ladder time, which means there's less of those risky activities that need to go on. Importantly, it's greener. Dave mentioned earlier it saves about eight trees per home. When we put this together, it had saved over 460,000 trees since 2019. We're closer to 480,000. We have a ticker that we've added to our website to be able to track that for us as well. Most importantly, 18 of the top 20 builders use READY-FRAME® today. We've seen significant adoption with our core big builder business and really excited about what we're able to do moving forward. Now I wanna invite up Lea Allah. I've had the opportunity to work with Lea for several years. We started working together back in 2008. She's gonna talk to you about our diversity and inclusion program. Thanks, Mike, and good morning, everyone. I am Lea Allah. I am an HR director in the Mid-Atlantic region of the East Division. I have been with the company and in the industry for 17 years. I am also leading this charge for diversity and inclusion at Builders FirstSource. I'm pleased to actually talk about this investment. It is an investment of our people that will enhance our culture, our retention, and the quality of work that we perform. If you look to the left of the screen, you'll see our current diversity statistics for our organization. In October of 2020, we conducted an organizational health index survey with over 9,000 of our members participating. In that survey, we found a high overlap in the desired values for both companies. Our cultures really aligned. We leveraged the data to increase the efficiency for stronger results and more team member satisfaction. Our key focus areas that are established were communication, retention, engagement, and development. In September 2021, we conducted our diversity and inclusion survey. In that survey, we found the majority of our team members felt welcome, safe, and included. They felt valued as a team member, but importantly, they also feel committed to building a diverse workforce and workplace. One of our core pillars is driving a high-performance culture. One of the keys to how we do that is through diversity and inclusion. We believe we can perform better with greater diversity. From that survey, we also found four key priority areas. Those are enhanced awareness, increased diversity of the workforce, improve and enhance communication, and increase inclusion and engagement. Each of those identifiers have goals. They have action steps assigned as well as ways to measure for success and progress. Enhance awareness, talking about additional training and enhancing management awareness. Increase diversity of the workforce, providing more opportunities for development for our internal team members, as well as focusing our efforts on how we bring creatively other team members into our workforce, like our program with the military, where we're bringing in veterans. Improve and enhance communication. Here's where we empower our team members to provide feedback. We give clear communication across all levels of the organization so that we can also learn how to make that connection and continue to have that connection. Increase inclusion and engagement. This is our culture piece. How do we continue to make people feel valued, respected, and heard? How do we empower them? How do we evaluate and improve? We think about things of compensation, benefits, and other ways for retention with the organization. The results we see is a roadmap for our key focus areas and our development opportunities. How we continue to drive for more with the employee experience. Here's where we leverage the feedback from our annual surveys. We'll have a survey releasing in 2022 that will serve as the baseline for the key focus areas around engagement, communication, retention, and turnover. This will also align with our Net Promoter Score. Our D&I initiative roadmap. Basically, we've continued this commitment to continue training. We have a commitment to training our organization throughout and continuously. We have released our diversity and inclusion The first commitment to training, which is the diversity face-to-face module. We'll also have our second module releasing in January, consciously becoming unconscious bias. We'll have an additional targeted training being released at the end of Q1, specific for our managers. We have established our corporate inclusion council. We are establishing our employee resource groups. Together, these teams will work to create, connect, communicate, advocate, measure, and monitor progress upon the plan that we have. Back to Mike. Thank you. Thank you, Lea. All right. Thank you, Lea. I wanna wrap up and talk a little bit about building excellence through our operating system and really driving that productivity through our business. One of the core areas that Lea mentioned was really our team members and how important they are to our success. So far, we've trained about 20% of our team members and Lean certified, and really we're continuing to increase that, and that's gonna be an area that we're gonna continue to aggressively grow. We've also seen significant increase in our productivity through our manufacturing, which I talked about earlier. Really our goals, and we're gonna continue to put out to drive 3%-5% productivity annually. Finally, we've seen really significant growth with our customers, and we've seen a 15% improvement with our NPS with our national builders this year, which has been a really good thing given the growth that we've seen with those top builders. Finally, we've really worked really hard to make sure that we're using innovation to really address our customers' needs and improve the process. Really, our reputation around operational excellence is our competitive advantage. We've been delivering productivity through several different initiatives. The first one that we have done, and I mentioned this earlier, is we've improved our board foot per hour in our truss plants by 20%, which also helped us increase our capacity, which has allowed us to drive that 48% growth we talked about earlier. Our millwork business, we've been able to improve our doors per hour by 6% and increase our capacity by 16%. It's another significant growth area for us in the value-add product category. Some of the things we're working on in the near term are really driving improvements in our fleet utilization. We have a very large fleet, and the faster we can turn around those trucks in our yards, the more we can deliver and the more productive we can be. We're also really focused on reducing our error rate in our manufacturing and our order entry, which will help us become more efficient. Finally, using specific ties on events to reduce our inventory shrink, all underpinned by really driving that 3%-5% annual cost productivity. Last thing around is really having our operating system around building our team and building our people. Lea mentioned this earlier, that we do an annual engagement survey, and we're looking for 10% improvement in our scores annually to really make sure that we're doing what our employees think that we need to be doing to help them have a good work culture. We've really increased our communications through quarterly town halls and really communication to make sure we have clear alignment within the organization. We have consistent onboarding. That's something that's really important given the size of our workforce, that we have people coming in and fitting our culture right at the beginning, and that we're continuing to invest in leadership development and sales training for our teams. We have that 10% annual safety improvement goal out there. Safety is one of the cores to our leadership and the most important thing that we need to be doing every day. Our people are really the core to us continuing to drive sustained results. With that, I just really wanna leave you with a few things. We're really excited about the growth we have in front of us, that $2+ billion opportunity that we're gonna go after here and make sure we achieve. We have a long runway, and we're gonna be driving that with our One Team Operating System. We have that ability to drive that 3% productivity on an annualized basis, and we're gonna continue to help our teams achieve that. We're gonna keep our people safe and have that 10% annual reduction. Then finally, we're gonna continue to outgrow the industry at a 10-10+% annual growth rate on our value-added products. With that, I thank you and I'm gonna bring Dave and Lea back up to go through our Q&A session. All right. We're gonna take a short break in a few minutes, but before we did that, we thought we'd open it up for questions on anything that I spoke about earlier or anything that you just heard from Mike or Lea. With that, we'll open the floor for questions. Yeah. Hi, good morning. Good morning. Just had a question, Dave, about the pro remodeling initiative you talked about. It's something that BMC had tried a few years ago. Yeah. It didn't really seem to get much off the ground. Can you talk specifically about what more you're doing to get that, you know, 20% piece of your business much higher? Yeah. That'd be different. be different. Thank you. It is an important but small but growing portion of the business. As we talked about, we're targeting, Rob, in a very targeted way, certain markets and certain portions of the business. Now, we're leading with strength because Legacy BFS had a strong R&R presence on the West Coast. BMC's focus was more on the East Coast. As you might recall, we made an acquisition just before we closed the merger of TW Perry in the D.C. area. We have several markets where we have positions of strength. We have an outstanding leader of our pro R&R piece who had a number of years with Lowe's, 15 years or so with Lowe's. He really understands that retail mentality. What he's doing is taking that capability that we've seeded either in legacy strength in certain markets or through acquisitions, and trying to identify the right markets to take that model going forward. We've got a lot of confidence, but we're not trying to do it everywhere. That's not our focus in the pro R&R space. We'll play to our strengths in the right markets going forward. Good morning. Steven Ramsey, Thompson Research Group. On the 3%-5% annual efficiency gains, how does that compare to the past few years for the company separately? Is that something that shows through the financials in a meaningful way, or is it something that builds over time? Well, historically, at BMC, if you recall, we had targeted something very, very similar. We've got really good cultural alignment between the two organizations that we've got to get more efficient at what we do. As you heard me say, those are hard targets, both on operational expense on the SG&A front as well as in COGS. Driving that 3%-5% is on the breadth of expenses. Now, you won't be able to track that exactly to the P&L because we're reinvesting a portion of that back into growth of the company. The way I think about it is on an ongoing basis as inflation is roughly in that range, and our goal is to meaningfully offset that inflationary increase each and every year by getting more efficient at what we do and take that savings and drive growth. That's the simple way to think about it, Steven. Bob? We got a question up here. Oh, I'm sorry. One more, and then we'll come up front. Yep. Thanks. Reuben Garner with The Benchmark Company. Morning, Reuben. Historically, you guys would talk about your technology in terms of helping smaller builders maybe compete with larger builders that had access to different software capabilities. I know we're gonna talk more about this later, but just at a high level, are the Paradigm and Katerra acquisitions an extension of that, or do you see the industry maybe accelerating its adoption or use of technology going forward? That's a great question. Let me just say up front, we love all of our customers equally, right? We're focused on growing and partnering with all of them. What we see is a unique opportunity here, and we do see a sea change coming, particularly on the digital front across the space. You know, we talk a lot about millennials buying homes and driving a lot of the growth in single-family starts. They're also, you know, in the businesses that we're dealing with and are more and more comfortable with technology. We like to play offense. The industry hasn't gone that direction largely yet, and that's why we thought it was very timely for us to drive that platform, build the capability, and then help lead the industry down that journey. That's the way we're thinking about it. We got a question here in front. Hi. Bob Robotti, Robotti & Company. Morning, Bob. Hi. When you talk about even 48% growth in the component business over the last year, of course, that's a dollar number. Could you give us a volumetric kinda concept as to what you are? Secondly, related to that, you did say, you know, READY-FRAME® clearly is, you know, in certain ways next generation, and you've got 18 of the top 20 builders. What's the penetration rate on that? Even though they've tested it's really more in the test phase and therefore the implementation and the adoption is still a long way of opportunity. Lastly, getting to $23 billion of revenues and 13% EBITDA margins, what's kind of the assumption for the adoption rate of component growth, READY-FRAME®, those, you know, which would be key drivers, I would imagine in the Yeah. Help me remember those as I try to unpack them. That 48% is organic growth in components, right? We- That's a dollar measure. That's a dollar measure. We really haven't broken down the volumetric piece versus price. Okay. There's a significant portion of both, let's just say. In this year, given the tightness in the supply chain, a proportion of that has been pricing. Rest assured, a significant portion is also volume growth with the rapid adoption that we're seeing all over the country. On the READY-FRAME® front, yeah, we're selling to 18 of the top 20 builders. Importantly, what we've seen is where we might have had just one geography with READY-FRAME®, we've seen great adoption as the builders have gotten more confident with the model and understood how that works, not only for themselves but with the framers. That's what we've seen an acceleration and growth in. Not only just adoption with more customers, but importantly, those legacy customers driving it more aggressively across the totality of their growth. Peter will talk with you in the second session about the pieces that make up that top-line growth and profitability here. Just if you don't mind holding that question till the second session, I think it'll be answered. Thank you. Matt? Got a mic coming here. Hey, Matt Bouley, Barclays. Same topic on the value-add adoption. Obviously, 48% growth. You've increased penetration this year. The question is, what do you do to sort of maintain that? What historically have you seen in terms of customers who've, you know, made that switch? Do they ever go back? I don't know, maybe we'll get more into this later with digital, but what are you really doing to kinda continue to push that after you've already had such a big uptake this year? Yeah. Very good question. I'd say a couple things. First of all, as strong as that growth has been, the market hasn't fully adopted. I would just point to Texas, right? Which has been a legacy stick frame market for a long, long time. It's just been in the last few years that we've seen that acceleration as the market has finally tipped and said, "These make total sense for us, right? It solves those labor and productivity challenges." We've been growing very, very significantly off a very small base in one of the largest housing markets in the country. We believe that will continue. To the second portion of your question, what our experience has been holistically, as customers adopt this capability and get comfortable with it, these are extremely sticky products. They don't undo it in good times and in bad times because the value proposition is so strong, right? Regardless of the market environment, these guys have to be efficient at what they do. The labor challenges are real. They're not going away. In any environment, them getting more productive at what they do just makes total sense. Any other questions in the room? Anything off the webcast? Oh, we have one more. Sorry. Just going back to components, I mean, it's been very strong, obviously, for stick framing, shifting share there. I'm curious if you could talk about how you would characterize your success versus peers in that area, how you think you differentiate from some of those other competitors. Then also on the pricing strategy, could you just talk a little bit more about how that's evolved over the last couple years? On the slide, you know, you touched on price harmonization with the merger. Just maybe put a little color behind that. Sure. So on the first portion of your question, it was around component adoption, right? We believe components are here to stay and for a long time to come. On the competitive set, there aren't many that have not only the geographic reach that we have, but the financial wherewithal to continue to invest. The theory of the case when we put the merger together is that we would be stronger together because of the combined offering, and that is exactly playing out. Because what builders have seen is, you know, they really can't afford to deal with just the local suppliers anymore when they have someone of our size and scale that can provide not only the breadth of the offering that we have, but the consistent quality of products in all their markets. It gets very repeatable and very reproducible for them to deal with us. That, we believe, is driving a lot of that accelerated growth that we're seeing since we closed the merger. On the pricing harmonization front, you know, putting the right pricing package together for our customers has been what we've done historically. We found differences in the way we thought about that, and we've worked proactively with our customers to harmonize that pricing over time. We feel good about that. We've done it, not to our customers, but in partnership with our customers as we've gone through the merger, and our business has only grown with them. Other questions in the room? Hey, I just wanted to verify the $3 billion EBITDA target by 2025. That doesn't include any benefit from M&A related to the $7 billion-$10 billion of deployable capital? It does not. Okay. Second question. I know M&A is inherently unpredictable, but- I'm sorry. The $3 billion does include. That's all in, including M&A, and Peter will break down the components of that in his second session. Okay. Got it. Understood. I don't know if I should wait for Peter's part on this follow-up. I was just curious if you had a view on, you know, kind of what the hope or expectation would be on how much of the $7 billion-$10 billion could go to M&A over time or like, Peter will cover that in great detail here. Okay. after the break. Thank you. Anything on the web, Mike, from the webcast? No questions from the webcast. All right. With no further questions in the room, we'll take a break here until approximately 10:30. Thanks for your time. Have a good break. Good morning. If everyone can take their seats. Just a quick reminder for those on the webcast, you can use the chat feature to ask a question, and we'll be monitoring those to get those questions in on the second Q&A session. It's my pleasure to introduce Dave Rush, who leads our integration efforts. Dave, welcome to the stage. Thank you, Mike, and thank everybody for joining us today. My name is Dave Rush. I've been with the company 22 years. First four years, I was actually in Finance and Accounting. The last 18, though, I've been in operations. That combination kinda served me well to lead the integration effort. You know, a lot of you are probably looking and going, "Gosh, I've seen that guy somewhere before, but I can't quite put my finger on it." But a lot of people think I look like this guy, the Cowardly Lion from Wizard of Oz. Thank you for laughing. There's nothing worse than intentionally humiliating yourself and not getting a laugh. I appreciate that. Let's talk a little bit about integration. When we got together, and we decided to go forward, Dave, we'd continue to be Builders FirstSource, we saw the natural connection between the one and the logo. Kind of what we wanted to communicate to the teams about how we wanted to bring this thing together. We came up with the mantra, "Winning together as one." It truly has guided all of our principles throughout the integration, and it served us well. We got together about this time last year as an executive leadership team to do all the planning around the day one post-close actions that we needed to take. I was overwhelmed with the level of talent we had in the room. Not only industry years of experience, but almost everyone in the room had been through massive integrations before already. It really gave me a sense of comfort that we were gonna be able to pull this off. I'm happy to report that we're on track to over-deliver on our synergy targets. First conversation I had with Dave was all around, "I don't want you to see this integration result as just bringing these two companies together. What we need to do is we need to bring them together for sure, but in doing so, create a platform that we can then change the industry and grow, and be the industry leader in growth and in innovation for our customers to find solutions." Building that platform for growth became more important to me than just day-to-day integration tasks. We've continued with that at the forefront. The first thing we did is we took a cultural survey on both sides of all the employees. We wanted to understand what was important to them. What we were glad to see is 13 of the top 15 values all around teamwork, safety, customers, each company shared exactly. 13 out of 15, and I think there was over 30 that were options that they could pick from. That told us we were going to be more alike than different. That's a pretty good sense to have when you're entering an integration. Dave purposefully then sought to create the best of the best in the leadership team reporting to him. We wanted to make sure both sides were represented. As it ends up, we have six legacy BFS and four legacy BMC in the direct report group today. six and four wasn't the target. Could have been five and five, it could have been seven and three. We were going first for the best person available, but it did end up working out to a representative relationship. Similarly, at the field level, we have 10 SVPs representing 10 regions throughout the company. Those guys roll up to three Division Presidents: East, Central, and West. Then, of course, you met Mike Farmer, who's President of our Commercial Operations. Now, again, how did we come up with three? Part of that was we went through several iterations. Part of that was we wanted to be able not to only manage the integration in the company at $12 billion, but be able to sustain management of the company when we're at $25 billion. Even as we built the leadership team, it was with an eye towards growth. When we got to the day post-close, we knew that the anxiety level of the employees would be at the highest level the first week after close. Our day one plan was built around trying to alleviate that anxiety. The way you do that is through excessive communication. Early on, after we announced the leadership team, and we could present the leadership team as being equally represented, we communicated that to the field. Right after close, Dave did market visits at all our top overlap markets with the DPs. Similarly, at every significant overlap market, the DPs, the SVPs, the area guys would meet with our top customers. That was equally important because we wanted to protect the base business we had first, then focus on the synergies that we could re-create as a combined company. We also set up in each other's ERP the ability for a legacy OSR to sell out of the other company's ERP. That immediately created that teamwork, that sense of, "Hey, we are in this together. It doesn't matter. I can use the closest point shipping, still get paid, still get my customer taken care of." That was a big step towards creating that alignment. We continually provided frequent inter-integration updates. We tackled the tough topics early around benefits. What's my role gonna be? Who am I gonna report to? All the honesty was all people wanted, and it worked out right for us. In that program, we also had retention plans around our key market leaders. You know, we had a very successful rate of retaining the key people we needed to retain. You know, the fact that both companies had been through, you know, transformational even integrations in the recent past served us well. To date, we've already successfully completed our ERP conversion pilot, and by the end of the year, we will have converted 26% of the markets that we have to convert on the ERP front. As I said before, we're ahead of our synergy target. Let me get in a little more detail there. When we got together with the executive team and we were all familiar with integrations, we set aggressive goals for ourselves. It was in a somewhat turbulent time, if you recall, with COVID, supply chain challenges. There was a lot of things we had to consider. We set an aggressive goal of $140 million over the integration period of two to three years. I'm happy to report that we're tracking $140 million as of the end of this year. A full 12 months ahead of schedule. Where we've been able to achieve those synergies has been through leveraging our scale in direct spend, even within our benefits. We've done a good job of eliminating redundant people costs. Then we've consolidated the footprint where it made sense within our markets, all within a rapidly growing market. Actually, footprint consolidation could be higher, but the market did not dictate that we go as fast because we needed the capacity. It's a nice insurance policy down the road, 10+ years, when, if things turn around, we have areas where we can still consolidate. With that, I'm pleased to announce that we now are gonna raise our synergy target to $160 million by the end of 2022. One-time costs we estimated to be around $115 million-$125 million. We're also tracking well below that number. We've done what we needed to do with regard to synergies. What have we done to create shareholder value? What we feel like we've done with this merger is put together the top footprint in all the MSAs that matter in the nation. We've done so with the leading value-add product selection and lead with innovation, and we're gonna be able to scale those solutions for our builder customers. All of that combined is gonna create shareholder value. It's best illustrated on this slide. This is a slide that I borrowed from the deck where we announced the merger. In it, we had all the value propositions that we felt like we set out to do with the merger. I just decided to kinda do a report card on how we did. We wanted to be the premier supplier of building materials and services, protect our base in the overlap markets. Well, to date, our base business has grown from $12.8 billion-$15.7 billion, and we have 24% core organic growth. I think we can check that box. We wanted to create value through our synergy. Well, we're not only performing at our synergy level, we're performing above and quicker. I think we can check that box. We wanted to generate robust free cash flow. The target at the time of the merger was $700 million. We're on track to do $1.9 billion of free cash flow. We wanted to enhance our value-added product offerings. You've seen where components are up 48%, READY-FRAME® up 31%. We wanna invest in innovation and be the leader in our space of value-added solutions for our customers. The acquisition of Paradigm and what Tim and Nate are gonna show you in a few minutes is gonna show you how we've done that. We wanna continue to grow through M&A. We've done five deals now with the latest one and added over $500 million of revenue on a run rate basis as we've done this integration. We've used the integration in a sense to create a playbook that we can repeat with smaller integrations down the road, even as the transformational ones take a little more time and are a little more complex. We've done this and created unbelievable momentum with our employee base, and they're all excited about where the company's headed. The people that we have are second to none. I get the advantage of seeing it across both companies in my role. I get to see it across the country in my role. We have bar none the best people in the business. There's no question we're the nation's premier supplier of building materials and services. We've over-delivered on our synergy commitments. We've protected and grown our sales base, and most importantly, to Dave's original vision, we've created that platform for growth that I think will serve us all well into the future. With that, I'm gonna turn it to Tim Page. Thank you. All right. Good morning. Good morning. Thank you, Cowardly Lion. It is really hard to follow a celebrity. All right. My name is Tim Page, and I'm the Executive Vice President of Digital Solutions for Builders FirstSource. I've been with the company for 10 years, starting in finance and then moving into integration, strategy, and business development. Presenting this section with me is Nathan Herbst, a founder of Paradigm and now our Senior Vice President of Product Development. We're very excited to share our digital strategy with you today and share our plan of how we'll accelerate transformation within our industry. I'm gonna start with three key messages that we'll further discuss throughout the presentation. First, BFS is uniquely positioned to drive digital transformation. Our recent acquisitions have given us a good starting point for technology, and we're gonna continue to build innovative solutions that will put BFS at the center of a home building ecosystem. We believe that doing that will drive $1 billion of incremental revenue within five years. The chart on this slide was completed by the McKinsey Global Institute, and it compares digitization across industries. Construction ranks 21st, one up from the bottom, and only ahead of agriculture and hunting, which we like to think of as hunters and gatherers. There's a ways to go in our industry in terms of technology advancement. Now, for those of us that work in the industry every day, or for those of you who have ever been involved in a new home construction or large repair and remodel project, this probably doesn't come as a surprise. There's much better ways to build homes than the way it's done today, and we believe leveraging technology will help solve some of those problems. Beyond that, the lack of digitization has led to 40 years of stagnant productivity for the industry. The study also found construction to be one of nine industries that does not have an established digital leader, and we believe the industry is looking for Builders FirstSource to step into that role. Builders FirstSource is perfectly positioned to drive digital transformation in home building. We have the scale, we have the relationships, we have the technical expertise, we have an unmatched distribution platform, and we have access to capital. Importantly, we're also touching 1/3 of the plans for U.S. home building today. That's a huge asset for the company. We believe in a digital future, and we aspire to drive a revolution in more efficient home building. Our vision is to create an end-to-end digital platform. That means solving construction processes that go from land development all the way to home lifecycle management. We believe digital disruption has to start by being the best at whole house design. What that means is leveraging configuration, estimation, and visualization technologies to seamlessly connect the front-end sales process of a home builder with their back-end construction process. Our recent acquisitions of Paradigm and Apollo give us a very good starting point. We now have technology capabilities and the knowledge base of employees that will allow us to put BFS at the center of the future of home building. The acquisitions accelerate our digital initiative. Paradigm, for over 20 years now, has been building digital tools that allow the simplification of configuration and quoting of building products. Where we're going with Paradigm is to leverage those capabilities to drive whole house configuration and quoting. That's a very big step forward for the industry, whole house configuration and quoting. Beyond that, Paradigm has capabilities in 3D modeling, in automated takeoffs, and also in product catalog management. Those are very, very important requirements for delivering this digital vision. Apollo provides collaboration, workflow, scheduling, as well as other pre-construction and job site functionality, all available and accessible through a mobile device. Those Apollo capabilities are very much complementary to the Paradigm offering. We believe that this digital platform will allow home builders to more efficiently connect with their home buyers and with their business partners for a more efficient building process. What that means is faster quotes, easier access to materials, and better alignment on projects. Digital will deepen relationships for BFS with builders by meeting their needs and then, of course, meeting their customers' needs, and that will result in more customers buying more product from BFS. I'm gonna stop there and turn it over to Nate. He's gonna tell you more about Paradigm's capabilities and what he sees as the benefits of a combination with Builders FirstSource. I'll come back up and tell you more about our end-to-end digital platform strategy and how that drives shareholder value. All right. Hello, I'm Nate Herbst. I'm one of the founders of Paradigm. Paradigm is now, as you know, a wholly owned subsidiary of Builders FirstSource as of August 16th. Today, I'm gonna talk to you a little bit about Paradigm, who we are today, a little bit about our culture, about our products, and talk about the synergy that we're seeing between the acquisition between BFS acquiring Paradigm. First, I get a lot of questions, maybe even had a couple of them from some of the people in the room today. Why did Paradigm decide that Builders FirstSource is the right place to sell the company to? What did you see in synergy? What I like to talk about is early on in the discussions with Builders FirstSource, we had a very engaged senior leadership team that came up and visited with us, with our leadership team, shared their vision of how they saw the transformation, how they saw the opportunity in the industry, and how we could be a part of it. We saw alignment with that vision and our own vision of where we saw the industry going after being in this industry for 20 years. It wasn't just that alignment that excited us. It was obviously also the access to resources that Builders FirstSource could bring to our vision. It's not just financial resources. With the Builders FirstSource acquisition, we have access to suppliers that we wouldn't have had access to before, access to customers, builders, tens of thousands of builders that go through the BFS platform, and as well as hundreds of thousands of digital plans, blueprints that are used on every single new home construction project. We saw the synergy as a real opportunity. Let me tell you a little bit about us. We started in 1999. We have around 300 employees in North America. About 70,000 users use our platform. Now these are a lot of salespeople, people who are involved in selling building products out there in the marketplace. Very strong customer retention rate over our history. You can see the last two rows on the left-hand side, we have a very strong position in the window and door market. That goes into the middle wheel, which is our software revenue composition. You can see that Omni is the biggest piece of this. We're gonna talk about Omni in detail in a few slides. We also are gonna talk about Builder Omni and Estimate, the estimating service. Two really critical pieces to the digital strategy here. We've had a strong history of growth, as you see on the right-hand side of the slide. That's continued over our history, and we expect that to continue into the future. It's not just the technology or the software that we bring to the table with the Builders FirstSource team. We also bring in the people, and it's the culture. One of the questions this morning was, how do you retain people? How do you attract them? Paradigm's cultivated a culture that is attractive to technology workers over the last 20 years. We've been able to get some of the best talent and retain them in our company. It's not just technology experience that our staff has as well. As you can imagine working in this industry for this long, our staff also understands construction, residential construction, and that's new construction as well as renovation. Our staff works on very large projects for customers, very large enterprise projects, which is critical to the digital vision we have here. The scale of BFS, you've gotta be able to handle it. Our software can handle billions of dollars in sales a year, which it does today for our users of our software. It also. We have single customers that do well over $1 billion of their sales in our technology. It's gotta be fast and secure. Our focus and vision has been around supercharging the sales users out there. We always knew that if we help people sell more product, we're a valuable part of the building industry. We focus it on the end users. We make sure that the users love using the software while we help them perform their jobs better. The last box on this slide I call the Goldilocks box. Paradigm is big enough to solve the digital strategies that we're pursuing here, but still small enough to be nimble and move quickly. I'm gonna talk about our first product here. If you go back in time to 1999 when we started, this product, Omni, it was called Centerpoint. We saw a problem in the marketplace. Me and a Co-founder saw that the complexities around configuring and selling windows were high. There was a lot of problems in it, a lot of friction. Just to give you a little understanding of that, probably many of you know, but when you look at a window, you could think, "Well, all windows are the same." Not true. They're almost every single one is almost a snowflake. The number of combinations that can be sold in a window are sort of stunning when you start looking at it. We have different dimensional attributes. We have different sizes, material types, colors. We have glass options that can differ, grilles, screens, hardware. That's really complicated. Then you add on another factor, which could be regional factors. It could be builder, building code, or it could be by manufacturing limitations. You add on top the complexities of pricing these products, and it's astounding how much complexity was there. When we entered the market, 20 years ago, a lot of the quoting process for windows and doors, it was done by a salesperson out in the field, pulling out a catalog, looking in the catalog, trying to find a product in a lookup list, trying to figure out if that product's available, and then many times calling the manufacturer and spending time on the phone with them. You can imagine how much friction that is. Our solution was, we'll build software that can take these complex business rules, we can bring them into our software, and we can make it easy for the salesperson to sell. We achieved that. You can see that, on the other slide and at the bottom of this one, very strong market share. Now, it's not just configuration that helped us get here. It's also the ancillary services and products around configuration that make Paradigm really strong in this market. To give you an understanding of what I mean by that, we have a very large consulting group that can help our customers get their software up to speed, get their product data into our software. We also have tools such as BI tools that help our customers understand what's going on. You can imagine in a world of SKUs, windows are not SKUs. Each one, as I said, is almost a snowflake. Our software can help people understand what's going on in this complex selling in their data. We also built tools to help our customers maintain the hygiene of their product data. You can imagine the complexity coming into the system. How do you make sure that the system is always at the highest quality? Tools like our Safeguard tool uses artificial intelligence and can help our customers maintain that hygiene on their catalogs. You can see this has led to very strong growth. One of the things that we're probably most proud of is that we have a very high Net Promoter Score. If we go to our best-of-breed users and manufacturers of the system, the manufacturers that use it, we can see a 70 Net Promoter Score. Those of you who are familiar with Net Promoter Score, getting a 30 would be a really great score. Getting a 70 is outstanding. This has led to us continuing to grow, as I said, 300%. Even in the last week, we still find manufacturers that aren't on the platform. Last week, we had one of the top 20 sign on. We're seeing that trend continue, and we expect that to continue into the future. The next product is Paradigm Estimate. To talk a little bit about it, we backed up a couple of years ago, and we said, "Well, what other problems can we fix? What was like the configuration problem that we fixed in the first place?" We looked at the process that happens before somebody even starts in our software, before they start to order a product or quote it. Well, the way that the industry works today is there's a takeoff process or an estimating process, and this is across the building industry. It wouldn't be unusual or surprising to go into a lumber yard and see somebody roll out a blueprint, bring out a ruler. They still use rulers in many places, write down dimensions, and count the number of windows, doors, and other products in it. That process, before we even get into quoting and selling the product, which I told you was so friction-based 20 years ago, took an hour or two and does take an hour or two for people to do. You can imagine it's extremely error-prone, and it relies on really critical people to make it function. Our solution to this was taking that process and building artificial intelligence using data scientists that can read the blueprints, vision-analysis-capable AI, and it can take a lot of the work, and eventually maybe most of it away from the sales users out there in the field. We also add in to that as well, not just the AI, we also add business rules that can help the users know the regional differences, such as in this area, we might draw it as a two-by-four, but it really should be a two-by-six. This powerful combination of technology really has streamlined the sales process out there in the field. You can see in the right-hand corner there, one of the boxes, there's a quote from a user of it. Weeks of time sometimes it takes to estimate could be down to 48 hours or less. This is getting the sales teams doing what they should do, engaging with customers and selling product, and it's getting quotes out faster, which is competitive. Now, you can also envision in a digital world if you can't estimate it, you can't quote it, and you can't sell it. Estimate does more than just windows and doors. This problem is bigger than just windows and doors. It's for every product on residential construction. It could be roofing. We do roofing, siding, flooring. It's endless. Concrete, electrical components. There's an endless amount of opportunity for this product to go, and that's where it's going right now. The next product I wanna talk about is Builder Omni. I shared the story about what we learned about the window and door industry, endless number of combinations out there. When we looked at what the builders needed, we saw the exact same problem. They had to engage with the home buyer and try to get them through a very complex set of options, maybe almost an endless set of options. It seemed like a perfect fit for our Omni technology that we'd built. We took our Omni technology and we put it together with a 3D visualization, full photorealistic visualization that allows a consumer to be at home while working with their builder and visualize what the kitchen would look like, wall colors, flooring colors or the exterior of the house, see different sidings with different roofs and different windows. This is obviously something that the consumers want, the home buyers want very badly. It streamlines the process for the builders. This problem we're talking about in the industry isn't just for large builders, it's for small builders as well, and we have a wide range of customer sizes that use it. In fact, last week we did have a big builder sign on, a 2,000 + home builder, and we see a lot of growth in this marketplace. Now, what's really important about this when we talk about the digital strategy and why we pulled this out on these slides is this gives us the ability to use technology to connect the different players in the industry together. We can connect the home buyer with the builder, with distribution and manufacturing all in one system, and we feel that this is a really important piece of the digital marketplace in the future. 85 Net Promoter Score. You know, I told you 70 was high. This is amazing. Of course, it is. People love it. You're gonna see that in an upcoming video. To wrap it all up or pull it all back together, Paradigm sees great synergies in being acquired and being part of Builders FirstSource. Four months in, we're already seeing it. We've hit the ground running. We feel that the Omni platform, the Builder Omni platform, as well as the estimating platform, are critical pieces to the future of construction and digital transformation in the construction industry. I'm gonna press play on a movie here in a minute, and it's gonna share a little bit about what our customers think about the software, some users of it, and it's also gonna show you some of it being used. Then Tim will be back on stage. BFS acquired Paradigm because we see an opportunity to leverage technology to drive productivity in home building. Paradigm got started in 1999. We set out to solve the really complicated engineering portions of the window and door industry. We've evolved the company over the years from the complexity of engineering to be a more simple platform for end users. Our company started working with the manufacturers and then evolving into retailers and distribution of product. We're also tying in marketplace types of technologies that help make estimating building products more streamlined. This really liberates quoting process. It just removes the friction from it. Paradigm Estimate is a critical technology. It allows us to quickly take a two-dimensional plan to a three-dimensional digital twin. From that model, we have the ability to take precise measurements, moving toward a whole house takeoff and configurable visualizations. The pilot program with Paradigm was an opportunity for us to both improve the professionalism, improve the timeliness, and hopefully improve the accuracy. The estimating was always an area where we were sort of behind. Before Paradigm, it would be at many times over a week, depending upon how much the backlog was with our estimators. After Paradigm, it was 48 hours. The home buying process is very complicated. We built the Builder Omni product to help streamline that process. With the technology, it allows homeowners to visualize what they're going to receive and communicate with the builders all the way to the distributor and the manufacturer. We're tying that together with the technology. Paradigm's been huge for us because before it was, "No, we have an open house. Come to the open house and take a look. What do you think? Now it's, you want to go online and look at it? Well, there it is. You want to play with it? Go play. We didn't have that opportunity before. Time is our most important commodity, and when we can give them some of that back, that's a huge win. Paradigm has impacted our business very significantly. The aspects of integrating 3D into our marketing campaign, into our website, and then bringing that all the way back into the estimating and the plans and having a completely unified process. Paradigm has been a great partner in coming up with new ideas and new ways to incorporate different parts of the technology. We are really excited for the future. Because I am an indecisive person, the visualizer tool was very helpful. I can't tell you the number of times I would go online and change colors of the door, change colors of the garage doors, and I don't know if I could have done it without that visualizer. The Builders FirstSource acquisition provides us with a lot of opportunities. One is we've got access to a customer base that we didn't have direct access to, and that's the builder. We have access to blueprints and plans that are going through the Builders FirstSource channel, and we just wouldn't have had access to those hundreds of thousands of homes before. We think that that combination is unique, and we think that that's going to be a really big catalyst for growth. Our vision is to transform the industry with an end-to-end digital platform that makes residential construction more efficient for all project participants, the home builder, their home buyer and trades, and all of our integrated supply chain partners. How about a quick applause for Nate? Great. Very good presentation. You're like the only one that doesn't get to walk off to an applause, right? All right. Well, that video and those customer testimonials really underscore why we're excited about digital. On this slide, we've broken home builders into three different segments. The question came up earlier about our focus on large builders versus smaller builders. I want to just talk about that for just a minute. When you think about the large national builders, they've invested in technology, right? Their scale has allowed them to do that. They've invested in solutions that help them run their businesses more efficiently. As you go down through these various segments, there's less adoption of technology. When you get to that third segment there, what you see is nearly 57,000 builders that are building less than 200 homes per year that really haven't done much in terms of adopting technology. It's really hard for them to build homes. Now, there's a lot of numbers on this slide, but the one I want to focus on is down on the bottom right. Home building is a very large market with $150 billion of total addressable material spend. We believe the digital winner will exercise a level of control over the biggest piece of that pie, okay? Now, when we think about our core BFS offering, the products we quote and sell every day in every market, it's really these product categories that are here in blue. On the prior slide, you might have saw that they make up a total addressable market of $42 billion. What Paradigm's capabilities do is allow us to add other categories into our whole house takeoff. Our ability to expand a whole house takeoff gives us greater access to that total addressable market. The ones here in red are the ones that are in Paradigm's tools today that we believe we can add in the near term. Over the longer term, there's other categories that we will add to our whole house takeoff. It's these categories that get us up to the $150 billion of total addressable spend. Again, the blue products that are our core offering, $42 billion. When we add in the categories that Paradigm will give us near-term access to, that gets us to a total addressable market of $90 billion. Over time, we'll add other categories that will get us to the $150 billion of total addressable spend. Now, that doesn't mean that we're going to ship all of these product categories, right? As the ecosystem owner, what we'd like to do is sit in the middle of this. We believe the ecosystem owner will benefit from sending sales and some orders to third parties, right? There are the stuff here that we would certainly ship on our own, opportunities to expand into other categories. Ultimately, what we see is the ecosystem owner working with large manufacturers and working with other distributors to really build an integrated supply chain in home building. We're building a home building marketplace, right? In the center of this home building marketplace is this integrated e-commerce marketplace. Over the course of this year, we've completed prototypes, we've received back user testing, and it's confirmed the market opportunity that an end-to-end digital platform will help solve problems for builders. With that, we're now moving into development. I want to quickly explain where we're going with our platform. The first module is home buyer experience. This provides a lead generation tool for home builders. Collaboration tool provides a consistent process for plan intake and markup. Digital twin or whole house takeoff is largely being what Nate talked about with Paradigm Estimate, allows us to take two-dimensional plans to a three-dimensional model for the precise measurement of the material requirements. Whole house configuration, this is what Nate talked about with Builder Omni. This is where home buyer selections come from a builder catalog. With real-time pricing, you know, we're able to feed that back over to the digital twin and complete that whole house material list. Of course, whole house configuration also show in the sales cycle. Job site management is where the construction schedule lives there. That's also where our mobile functionality is acquired with the Apollo acquisition. Home life cycle management is a longer-term opportunity, but this is really interesting because, by having ownership over that 3D model for the life of the home, that allows you to do things such as, you know, pre-configured renovation packages or post-close add-ons. Think of a house that now wants a finished basement or wants a deck, or over the longer term, when it's time to modernize the home with a new kitchen, right? Having access to that digital model allows you to go there. So it's very important to note that, you know, our access to plans with our ability to complete a whole house takeoff and our supply platform is what will put BFS at the center of a home building marketplace, okay? In all of these modules, create demand for that marketplace. Technology investment at scale really lags in our industry, right? The time is now, the technology's been advanced, and we believe that an end-to-end digital platform could have the most positive impact on home building since the creation of the tree. Thank you for laughing. All right. We believe that an end-to-end platform can create $10 billion-$15 billion of material, labor, and cycle time efficiencies for the industry. For homebuyers, they'll benefit from the visualization experience and understand the cost implications of their selections. Home builders will benefit from a better sales process, shorter design cycles, and also that connection back to construction, where they'll see productivity on the job site. Then our integrated supply partners will also see benefit from a lower cost channel to market, the ability to influence potential homebuyers and other operational efficiencies. It's really home builder adoption that's gonna monetize the platform, and we're off to a very good start here. I mentioned that the acquisitions of Paradigm and Apollo have accelerated our digital initiative, and we'll see 1,500 starts coming through B uilder Omni in 2021. That's well ahead of schedule versus what we had initially expected. We're also confident in our ability to deliver $1 billion in incremental revenue through digital. That comes from faster quotes, which translate into higher win rates in our industry, increased wallet share, and our ability to attract new customers. There's a number of ways that we believe we can monetize the platform for BFS. In closing, BFS is uniquely positioned to be the driver of digital transformation in home building. Our goal is to be at the center of the home building ecosystem, and we believe that we're very well positioned to drive $1 billion of additional omnichannel revenue within five years. This is a very exciting time for our company and our industry, so thank you for your time and attention. I'm gonna turn it over to Peter Jackson, our Chief Financial Officer. Good job. Thank you. Thank you, Tim. Thank you, Tim, and thank you for everyone who's come today. It's really nice to see familiar, friendly faces in person, which I'm enjoying today. Those of you that I haven't gotten an opportunity to meet yet, I'm Peter Jackson. I've been the CFO of Builders FirstSource for the past five years. Prior to that, I spent my career working at some of the country's leading firms, building repeatable processes that generate profitable growth over time. For the last five years, I've taken as many of those great ideas as I've been able to in bringing them into the Builders FirstSource family to create that leading platform for our home building industry. With that perspective, I'll walk you through a few of my key messages today. Starting with the presentations you've heard so far today, you've heard our strategies, our structures, and our initiatives that we're utilizing as the foundation for the company that we're creating and that we're running today. That company, which is a platform of the best geographies, the best product portfolio, and the best operational and sales leadership in the industry. What do you get when you combine the strategy with the best team and platform? You get tremendously profitable growth and success over time. What does the success over time lead to? Number two, a strong and flexible balance sheet generating robust cash flows, and we'll walk you through what some of those results mean to us over time. Most importantly, the creation of that cash flow gives us the opportunity to deploy capital. We do it in a disciplined way. We focus on organic growth, on M&A opportunities, and on potential share buybacks into the future. Very compelling when you see the results as we get further into the presentation. Most importantly, our ability to sustain and grow a double-digit EBITDA organization and delivering tremendous value as we do it. Let's jump in. As you look at our historical performance, you can see this presentation is based on what we call base. Dave talked to you about it before. To recap, $400 per thousand as our baseline for all the numbers. Takes the noise of commodity volatility out and refocuses on what you see on the left-hand side here. Our product mix is really focused on value add and specialty offerings. It makes up more than 60% of what we sell in an even bigger percentage of our profitability. While commodities are important, they're important to our customers, we're really good at it, we make good money at it. It's not the key driver of what we do. You can see that on the right-hand side of the page. As you look at our sales growth, we have grown sales on a 16.4% CAGR over the last three years, leading to a 40+% CAGR on EBITDA and a 350 basis point improvement in our base business EBITDA margins. We have a P&L that's strong and that's growing and is generating tremendous benefits. What are those benefits, you say? Well, the balance sheet, for one. We have maintained disciplined management over our balance sheet and how we think about it. When I got here in 2016, we were coming off of one of the most transformational moments in our history. Floyd and Chad had orchestrated the acquisition of ProBuild. There was a lot of leverage on this balance sheet, and we committed to you and to all the other shareholders that we were gonna drive that down and manage this company for the long term. The debt was worth it, and we were gonna prove it out, and we have done just that. We've improved our credit rating. Our secured notes are investment grade. We've managed our maturities. You see we're over eight years on our maturities for everything that's out there today. We have done all of it with this mentality around running this business for the long term. That one to two times leverage ratio is not talking about risk, it's talking about stability and our confidence that we can be successful in any market dynamic. The success is powerful in one particular way that I'm excited about, and that's capital allocation, because that bulletproof balance sheet gives us the opportunity to leverage into other areas. In this case, we've deployed over $2.2 billion in capital in the last three years. Now, the smallest component on there is our investment in core organic, our growth, our internal operations. The reality is, while we've made significant investments, it's fairly modest as a percentage of what we earn. What that allows us to do is to invest for growth and to do more into the future. We've allocated and applied over $1.3 billion to M&A to improve our mix, our profitability, and our competitiveness all over the country. Lastly, we've announced not one, but two $1 billion share buyback authorizations. The first of which will be completed in 2021, the second of which we'll complete throughout 2022. Doing all of that with a disciplined approach, with a leverage ratio within our stated range that makes us bulletproof, and with a disciplined focus on both ROIC and total returns to shareholders. As you see, we're committed to M&A. It's an important part of what we do. While Dave walked you through the pieces of it, I'll recap just for a second. We're committed to geographic scale, the right products in the right markets, moving into those markets in the right way. Our value-added products that continue to give us the stickiness to improve profitability and the competitiveness that is gonna power our growth into the future, leveraging that technological advancement and improving our industry-leading portfolio of solutions that make our builders better, that make them more efficient and more effective at what they do. In the last year, we've executed six M&A deals. That's nothing compared to what we've done, compared to where we can go. This organization has a demonstrated capability to effectively acquire companies that create tremendous shareholder value. We've done it for a long time. We have teams that know how to do it well. You saw Russ, you've talked to folks today. We know how to execute M&A, and we are committed to continuing to doing that over time. Whether it be on opportunities like the Alliance acquisition. We were a distant market share player in the Phoenix market, the greater Arizona area. We had a once-in-a-generation opportunity to work with, to partner, and ultimately acquire the Alliance organization. A great team. Leaders know how to make money, know how to compete and support their customers in their markets. Now they're part of our team. Our leadership in that market is unquestioned, and we're excited about what we can do with it. Whether it be the growth of value add, whether it be the expansion of the product offerings, whether it be thus increasing the sophistication of how they execute on some of the value add that they already do or introducing new stuff. It is a tremendous opportunity for us and representative of what we can do when we arrive in a market. We believe we're the buyer of choice. We're not gonna show up in these markets and talk to you about what's gonna happen in the future or some event. We're gonna talk to you about how we're gonna win, about how we're gonna help you win, about how our resources are gonna combine with your expertise as a seller to make sure your team, whether you're retiring and riding off into the sunset or whether you wanna be part of this for the long haul, your team is gonna be successful because we're gonna be successful, and we're gonna help you get there. Everything I've talked about so far is really backward-looking, talking about the history of the company and our success, our ability to create and sustain those double-digit margins. I'd like to talk to you a little bit about the future, which I suspect you might wanna hear. The 2025 goals. I'm gonna start with revenue. So what you have here is our revenue bridge broken down into the key components. The core growth, what you'd expect. Single family starts low- to mid-single-digits. The rest, multifamily, commercial, R&R, in that low-single-digit r ange. A modest assumption. On top of that, you see our product expansion. That's the culmination of all the things you've heard about today. It's the expansion of value add, truss, millwork, READY-FRAME®. It's the expansion of digital. It's that umbrella, that digital marketplace, and our ability to take our already powerful relationships with our home builder customers, strengthening them, and making our customers more successful. That combination, 100-300 basis points of growth on a CAGR basis, so annually in that range. On top of that, $2.8 billion-$3 billion of increased sales from M&A. How do you get to that number? Peter, I'm glad you asked. We are gonna invest $2 billion over the next four years in M&A. That's what that number comes from. Now, we'll talk a little bit more about M&A, but I wanted you to understand that relationship in terms of what we've prepared here. That is a 10% sales CAGR, and it generates some really nice results on the EPS bridge as well. The core growth, that's a 50% increase on what we're doing today, driven by the numbers that I just guided you through. Operational excellence is a little bit interesting because while this is a net favorable number and an increase of 25% to our EPS, it also includes the investments that we anticipate making. Investments in the teams necessary to be able to ramp up to the scale that we envision, but also the IT investments that we're planning to make, and we're already making, that are gonna create the underlying architecture necessary to support both our growth and our digital aspirations. Net savings. Product expansion. Again, walked you through that on the prior slide. The opportunity-driven box. Why did you box those, Peter? Well, that idea is around maximizing shareholder value. Many of you have heard me talk about how we decide how to allocate capital. At the end of the day, we wanna optimize the way that we generate returns for shareholders. We know we can create favorable shareholder returns with M&A. We believe that we have an opportunity to buy back shares in an undervalued stock that is also gonna create value for shareholders. We're gonna find the right balance there through opportunistic and disciplined approaches to maximize shareholder return, and we'll balance that. For the purposes of this slide, for the model that you're seeing here today, that's $2 billion applied to M&A and $5 billion applied to share buyback. Again, that will likely move over time, but for the purposes of this model, we needed to give you some numbers. That's a lot of cash, Peter. You're right. It is. This is a company that generates a tremendous amount of cash. The left-hand side, you can see our annual results and where we expect to generate $6 billion in cumulative cash flow over the next four years. That's a 100% net income to free cash flow conversion ratio. Now, on the right-hand side, you can see that $6 billion, and it's augmented by two components. Today, we've got about $2 billion in debt. We make about $2 billion in base business EBITDA. Our 2025 numbers have $3 billion in EBITDA, giving us $1 billion of available capacity for debt if we wanna maintain our low end of the band, a 1x leverage ratio. That's the $1 billion there. If we decide to go to the 2x leverage ratio, that's an additional $3 billion of deployable capital that we know how to put to work. However, it is not in any of your numbers here. That $3 billion remains over here in my back pocket. Your numbers that you have, just to clarify, $7 billion of deployed capital, $2 billion on M&A, and $5 billion on share buybacks. In summary, I wanna recap our guidance here. This is a 10% CAGR on sales growth, driven by modest market share assumptions and modest market assumptions, compounded by the work we're doing in digital and expansion and the expansion of our value add. Adjusted EBITDA increases by all those factors in revenue, as well as our increasing mix, our merger synergies, which we continue to execute on, and the cumulative benefit of both operational and commercial excellence initiatives. I walked you through the EPS bridge, so you saw the components there. Again, $2 billion of M&A, $5 billion of share buybacks at a 1x levered, subject to the opportunities that we perceive in the marketplace and our focus on optimizing returns for shareholders. Then lastly, 50 basis points a year of EBITDA margin improvement. That's a sum total of 400 for those of you doing math at home. We are absolute 200 for those of you doing math at home. See? [audio distortion]. 200 for those who are looking at this and thinking about who we're gonna be into the future. We are an 11% base business EBITDA business today. We envision ourselves as a 13% EBITDA business into the future, and we believe we can maintain and sustain and grow those double-digit margins as a result of the combined benefits of the initiatives and the projects that you see us outlining here today, compounded by our success in building an industry-leading platform. I assume that you like these numbers. I like these numbers a lot. I also assume that you're a group of hard-nosed investors who are gonna tell me, "Well, I've heard this before. I've heard it from your peers before." I'm gonna offer you this slide. Whether you consider us as a peer of the home building industry of distributors or the broader industrial distribution space, I'm gonna tell you today we have demonstrated superior performance in sales growth and EBITDA dollar growth and in EBITDA margin expansion than all of them. It is our sincere opinion that over time, as the investors recognize what we have here, our multiple will rerate in an appropriate way, creating yet another layer of value and shareholder value creation for all those that hold our stock. I could not be more excited about what we're seeing here. To recap, we have an industry-leading platform positioned to grow and to do it with double-digit and increasing margins. We use that cash to continue to sustain and strengthen our balance sheet that we will appropriately leverage in a disciplined and structured way to deploy capital, also in a disciplined way, an opportunistic way to maximize shareholder value, to sustain and grow our double-digit margins, and to create returns for shareholders. I could not be more excited. With that, I turn it back over to Dave. Well, we hope we've left you excited, and hopefully, our passion has shown through today. We've been a lot of places in the last two and a half hours, and this is where the CEO comes up and asks for your investment. Before I do that, I've got a story to tell you. You know, I love talking with our customers, and I get the opportunity to do that all the time. Recently, I had a conversation with a top five national home builder who historically had taken his business and split it between both legacy companies. The reason he did that was neither company had the combination of the product portfolio and the geographic coverage that they needed to serve their needs nationally. Made total sense. It was a source of frustration for me, and I know it was for the BFS folks as well at the time 'cause business kept moving around. Importantly, in a recent conversation with him, he came to me and he said, "Dave, you guys have built the platform that we have needed for a long time, and what you've caused us to realize is that we have actually outgrown a lot of our legacy supplier relationships." Through the course of the conversation, he finished by asking me a question. His question was, "What do we need to do to be a better customer for BFS? We need more of what you guys bring to the party." Hopefully that underscores that, you know, we feel great about ourselves inside. It gives me great satisfaction to hear the external validation that we are absolutely on the right track here. In terms of wrapping up, I'm gonna take you back to where we started. You've heard a lot of various pieces today. Let me bring them all back together through the advent of what we rolled out here of the BFS One Team Operating System. Three key pieces to that, building our people, building excellence across the company in everything that we do, and building growth. That is our mantra going forward, and we have sustainable, disciplined processes and practices around that. We've got a strong track record of execution, an extremely strong value proposition on a differentiated platform. We've got significant catalysts ahead. We've talked about the operating system. You heard in great detail, much more so than we've ever unveiled before, what is at the heart of our digital strategy and why we're so excited about that. We talked about the early innings of our sustainability in ESG work, which is very important to the company going forward. Importantly, Peter's wrapped up with a lot of detail around our robust free cash flow generation and the disciplined approach we have taken and will continue to take to capital deployment going forward. Finally, we believe we are transforming this industry, and we're in the early stages and have a lot of runway ahead. In particular, we've identified that and underscored it with the 10, 15, 30, and 50 basis points targets that we've talked about today. We will deploy in the next four years, somewhere between $7 billion and $10 billion of capital. Thank you for joining us today. More importantly, we'd love to have you along for the journey as we outperform today and work towards transforming tomorrow. Thank you very much. With that, I'd like to ask the folks from the second session back to the stage, and we'll finish by opening up for questions as we did in the first part of the day. Nice job, Dave. Thanks, everyone. Matt Bouley, Barclays again. Thanks for all the detail today. Very helpful color. On M&A, you know, kinda looking through the tea leaves, you're talking about adjacencies as well, looking at that sort of future products slide within the whole house takeoff. Is that sort of messaging that there is an incremental change in how you're thinking about M&A, that adjacencies are now becoming closer to the forefront, or should we think that we still in the near medium term, that you're still kinda closer to the core of what you've done in recent years? Yeah. It's the latter, Matt. We're gonna stay core to what we've done historically. We spent a lot of time talking about, you know, fishing where the fish are in those adjacencies. Importantly, the way we think about M&A, we talk a lot about our national scale and how important it. The battle is really won on a local market basis, having enough scale and the right product portfolio to serve those customers locally. We still have opportunities there. We just announced another great acquisition here this morning that kinda underscores that. We think we have a long runway. Not saying we won't go after adjacent products in time, but we don't feel compelled to do that now 'cause we have such a long runway of growth with the strategy that's working today. Just a little bit more in context on the digital platform, that marketplace will create the opportunity for us to transform the industry by bringing those products in as part of our portfolio. Not necessarily have to own or manufacture those products, but allow them to be sold through our platform, and that's really the way we're thinking about that in time. That's helpful. Thank you. Quick follow-up on that. If we took a hypothetical situation where commodity prices were elevated, obviously, your guide assumes $400. Does anything change around your capital deployment philosophy? Do you hit the gas pedal harder on any of those priorities of organic growth M&A, and buyback in a situation where there continues to be sort of a cash windfall? Yeah, I'll take a stab at this and flip it to Peter for any color. You know, we've taken the opportunity this year. You know, commodities spiked in the spring. We saw that, you know, and we've taken a portion of that capital that we generated through those, oversized prices and returned that to shareholders this year. We thought that was the right thing to do. Importantly, that afforded us the opportunity to continue to gain strength in the base business and gain confidence in our future. That's why you saw us come back and announce last month the second $1 billion. We're gonna be opportunistic on that, but we will be, you know, appropriately aggressive at returning capital to shareholders as we've demonstrated over the course of the last four months. Peter? Yeah, I guess I would add, we do a lot of modeling around the directions that you can go with this, right? We model all the different markets, the different dynamics with commodities, as you can imagine, and looking at it in a way that gives us both confidence in where we are headed and where we can go. Also the optionality and what each of the alternatives might present, again, with that focus on maximizing shareholder value with our decision-making. Got a question. This is Brian Gerber with Buffalo Funds. Regarding the digital strategy. When, at the beginning of the presentation, I would have asked you, who do you wanna grow up to be? Who do you wanna emulate? I might have said Autodesk. After the presentation, it's do you wanna be Amazon Marketplace? And with that, where do you see the revenue sources three, four, five years from now? Is it gonna be $1 per seat at the builder in every sales office? Is it gonna be $1 per seat at every supplier in the food chain? And will it be a marketplace as well that you get 3% of the value of a house that isn't delivered on your trucks? To the first part of your question, I'll take that. You know, we wanna be ourselves, right? We see a great opportunity here to be leading edge in a digital transformation that is not only needed in this industry, but we believe we're uniquely positioned to lead. You heard me say earlier in my comments, you know, I like to play offense a lot more than defense. Instead of waiting for that evolution to happen, we're leading edge out in front of it, and we're gonna drive that transformation. Tim, you wanna take the second part of it? Yeah, related to the sales, the revenue growth, $1 billion, it really comes from two places. The majority of that comes from being able to push product, to pull product, I guess, through the BFS distribution platform. When you get into the details, the average amount per home of the BFS core product is $36,000. When we sell to a customer today, we don't recognize that full product. We don't see all of it, that full wallet share. Part of this is we believe the digital platform will allow us to get greater wallet share with our existing customers. Now, beyond that, if you think about customers we don't sell today, you have the opportunity to get the full $36,000 of core product growth. Then when you think about the products that we don't sell, we'll never touch, for example. You know, there's a lot of products that went to the marketplace that we'll expect to gain a commission on. Some type of commission when a third party makes the sale. Beyond that, we'll see growth in licensing revenue, and we think there's other ways to monetize the platform. For example, the R&R sales I talked about with home lifecycle management, for example. Okay, thank you. Dave Manthey with Baird. Thank you for putting this on. This is a great presentation. Yeah, thanks. I appreciate it. Similar question. I was going to ask the same thing in terms of the revenue sources. It seems like this is a combination of regular way business, some pass-through, maybe some subscription fees. Nate, when you showed the chart going from, I think it was $23 million to $45 million. That's subscription fees? Is that correct? $1 billion doesn't really equate to that because it's apples and oranges to some extent. Is that correct, first off? Yeah, that is apples and oranges. That is a combination of services and licensing fees in that chart that was on the right. Okay. Two questions. One, all the functionality that you presented today, are those products readily available, fully functional, fully scalable today? Or is that something that'll be developed over the next year to three years? Second, related to that question of regular way business plus pass-through plus fees, is it safe to say that because of that combination, in aggregate, this will be a higher margin? Just directionally, it'll be higher margin than the core business because of that makeup. Thank you. I'll take the first part of that, and then you wanna comment on the second part? On one of the slides I showed, a platform that showed land development through home lifecycle management. On that slide, you could see some colors on there that indicated what capabilities we received from the Paradigm acquisition and what capabilities we received from the Apollo acquisition. We've started to fill in some of those capability needs. We do have functioning software, Paradigm Estimate, Paradigm Omni, et cetera. But what we're now looking at doing is we have product roadmaps on all those various modules that we're going to build out and link our current capabilities into. Okay. There is a lot of heavy lifting that the that we're working on now and investing in the platform that was focused primarily on millwork. You know, great capability, but in a fairly narrow product focus. Now we're investing in developing. Now that'll take us, you know, a bit of time. The best way I can think about the way this is gonna evolve in the future, if you think about it today, we may get asked from a customer to do the design for roof trusses, right? We do that. We give them an estimate, and they either buy from us or they don't. In the future, having access to those home plans and being able to produce that digital twin, think about digitally how easy it becomes for us to not only quote the roof trusses, but the floor systems and the wall systems and hand that over to our customers. We believe that visibility and that ease with which it will become to do business with us will make it much more easy for us to sell the portfolio of products that we offer today, and maybe some that we don't in time. I'll let Peter address the second part of your question on profitability. Yeah. The margins when you look at the growth, a big piece of what we're doing is in that value add and the digital, right? That combination. Those are the two biggest components of the product expansion, bars on those waterfalls. What we talk about historically is 12%-15% range for our incremental EBITDA, when you talk about incremental sales. I think that we're probably at the high end of that range in that number in terms of what our expectations are in terms of both the leveraging of that value add growth as well as what the gentlemen have been talking about today on the expansion result of digital. Good morning. Steven Ramsey, Thompson Research Group. Can you discuss the implied capital intensity in the next few years to bridge EBITDA to free cash flow, thinking about, working capital and CapEx, and how much more is needed on both of those items, as you expand and grow? That's probably for you, Peter. It sounds like it. Well, I think that the important thing to think about as you're looking at our models and what we've committed to is that it's all in. Our expectation is that while historically we've been in that roughly 1.5% of sales as our CapEx as the starting point, we're in that probably 1%-2% range, but it'll depend on the year. There's certainly investment required to do what we're talking about here, whether that be greenfield, IT, incremental equipment, tractors, automation equipment, all of those factors are all included in here. You know, I mentioned on the operational excellence section is that there's an included expense associated with the work we wanna do on IT. There's modernization opportunity there. Our ability to be at scale, moving at the speed that the digital guys are moving at, is critical that we do some work behind the scenes as well. Again, that's all included in the cash flow guidance that you received here. Great. Thank you. Hi, everybody. I guess I'm really greedy. You've made me an awful lot of money over a period of time. Thank you so much. Your base assumption is that single family home starts are gonna be up high single digits to low double digits, so 10%. If you're projecting a 10% revenue growth, isn't that really just in line with the market? You've also projected a 10% revenue growth on the value-added products. If you're doing 10% growth across the board, it seems as if you're not increasing the penetration on the value-added products side of the equation. How do you reconcile those numbers? Yeah, I think maybe the message got, like, a little distorted in there. It's a 10% CAGR. I think what you are outlining is a 10% cumulative. If you look at low- to mid-single-digit single-family growth over a four-year window, those are different pictures. Low- to mid-single digits on the starts. No, low- to mid-single-digit annual. That's a four-year projection for growth in single family. Right. Let me flip it on its ear a little bit. That's a pretty modest market share growth, right, compared to some of the items that Dave outlined in his overall market environment, the demographics. There's tremendous opportunity for more, but we don't need that to deliver these numbers. If we get that, these numbers are gonna look far better than what you're seeing. Said a different way, Bob, we're highly confident in the projections we put forward today. The other item is you do say the presumption of $400 a board foot for lumber or lumber products. How do you think about that from the point of view of what's the price point you need for those products, for those producers to increase capacity, right? Because if tomorrow the lumber people all went out and built huge amounts of capacity, then the price won't be $400, and that kind of would upset your assumption here. How do you think about that end product? Because that's gonna make a determination whether the $400. We're not gonna project, you know, where the prices may or may not go, Bob, but I will tell you that there hasn't been a lot of capacity added in lumber for a number of years. We don't anticipate that happening aggressively. We've seen forward projections on lumber in terms of what it would take or how some of our suppliers think about that, but they really need to sustain, you know, a higher level of pricing to be able to justify reinvestment economics for these large scale plants, right? We just haven't seen that. In fact, since the last recession, you know, there's been a lot of capacity that's come offline, and that's why things are as tight as they are given the strength of the other underlying demand. We expect that's gonna continue for a while. For your model, I would say you can load. We make money when commodity prices are low, and we make a lot more money when commodities are high. Just insert that into your model for the [audio distortion] value-add savings there is in you being value-added costs. That's all. Very true. No question. Other questions in the room? Looks like there's one over here. JJ [guess] from McKenna. Thanks for a wonderful presentation today. Really long-term minded in your thinking. Thank you. I have two questions for you. First is, you mentioned a little bit on alignment and compensation earlier on, and can you just elaborate further, how the leadership team maybe is expanding, alignment or compensation around this long-term vision, any initiatives there? That'd be sort of, you know, one. And then the second question would just be around, capital allocation. You mentioned as well sort of the metric around, from a financial perspective, IRR ahead of cost of capital. Can you expand on that at all, even using sort of the last six acquisitions as an example, just, you know, ranges around what you guys are underwriting from a, an IRR perspective? Yeah. Our compensation is aligned around growth and profitability, both on a short-term basis and a long-term basis. You might suppose over time, you know, with the ramp-up of our efforts around ESG and sustainability, we may work some metrics in there through the course of time on how the management team is compensated. But there's been very good alignment with our shareholders there. You wanna take the second one? What was the second one? Sorry, compounded questions. Just one of the lines in the presentation is around IRR being ahead of cost of capital. Can you sort of elaborate even sort of quantifying, maybe perhaps the baseline, how you think about cost of capital? Also, you know, using maybe a range of what you underwrote over the last year of these six acquisitions, sort of how, you know, the gap, if you will, from what you're seeing out there, just to give a sense of what you guys are underwriting. Sure. Yeah. The M&A space is certainly dynamic. If you look at the opportunities that we're pursuing, they're pretty independently analyzable, right? Whether there's an exposure to a desirable market, an increased exposure to value-add, certainly differences in the EBITDA multiples or EBITDA margins that then reflect into multiples. You know, we internally were in that sort of 10%-11% WACC in terms of our threshold about where we've looked at our results and used some third parties to make sure we're being objective. Our goal is obviously to be far in excess of that and looking for ways to ensure that we're accounting for assets that we're pursuing in a way that is in consideration of some volatility in commodities, making sure they're playing on the base business mentality. Also recognizing our competitive opportunities, right? The synergies that we think we can drive. You know, those individual analytics are run through our internal M&A team that really focuses on a standardized approach in terms of the construct that allows us to consider those individual factors and coming up with the payoffs that we think we can drive with synergy opportunities sort of being that part that we have to manage going into the future. All with that mentality around integrating them, right? We don't do this as a conglomerate, as a group of standalones. These are becoming part of a family, taking advantage of the opportunities that are available to everybody under the BFS umbrella. Peter, Dave. Over here. Thank you guys for taking the question. Reuben Garner with Benchmark. You guys have gained a tremendous amount of share over the last 18 months, and I think your scale as a combined company has played a big role with how tight the supply chain is. Do you guys view that as a risk in the near term going forward if constraints ease, or do you still see it as an opportunity? You've picked up some new business and provided value to your customers and, you know, you can grow from your new base. Yeah. Well, first of all, we don't take anything for granted. You know, we're appreciative of our customers and the confidence that they've shown in us, pre-merger and certainly post-merger. As you point out, Reuben, we've gained some share. We see a long runway for continued share gain. You know, we showed the slide that shows in the overall aggregate of single family, we're about 10% market share, growing quickly and outpacing that importantly with the value-added portions of the business, which is clearly our strategy. Even though we continue to penetrate the market, we're seeing more and more adoption of this, these offerings all over the country. We think certainly within the time horizon that we've spoken about here today, there's ample share gain opportunity for us ahead. Hey, yeah. Jed Nussdorf from Soapstone Capital. Dave, just following up on the market share question before. I guess Tim had a slide that showed the addressable market for BFS right now is about $42 billion using your sort of base revenue this year of $16 billion ±. Are those numbers comparable in terms of, you know, that would indicate sort of already, I don't know, roughly whatever, a third or so. Wonder if you can comment sort of if I can compare the $16 billion. Yeah. That is considering the products that we sell broadly, as Tim showed on that slide, where we've got, you know, fairly significant penetration in the market today. What it doesn't address is the opportunity that Tim spoke about in digital, where we're actually expanding our addressable market through the work around whole house design and bringing in some of those other products through the portfolio. The only thing I would add to that. Sure. Is that there's clearly a core of where we do every product in every market. There are many markets around the country where we may offer a product that's not widely available nationally. We do fantastic at it. That's part of what we try to take out when the materials that you saw from, you know, from Tim and from Nate to whittle it down into that real core that we feel confident pushing everywhere. There's a pretty substantial ring around that that we've sort of already proven an ability to widen our aperture in terms of how we serve customers. It's just more regionally dependent. Hey, guys. It's Ryan Frank with RBC Capital Markets. Question on Paradigm. What percentage of your customers use kind of the full suite of products versus just one of them? What is the biggest sticking point to get more customers to kind of switch into the full suite of products? I can answer that. Hey, thanks for the question. I don't. We've got. You saw on that wheel, we have a lot of products. We have ERP products. We have in-home renovation selling products. We really don't see a scenario where one customer would use all of our products. We don't track that metric. In different segments of our business, like for example, in a manufacturer, we'd like to see them use more of our ERP products up to a certain point. Like, we're not trying to displace the large ERP players in the market. It really depends on what market segment that the company's focused in on. On the builder side, Builder Omni is a least common denominator, so is the estimating business. That's why we showed both of those. It adds value to the builder of all different sizes. It also can be used, the estimating product, in the lumber yards as well. The biggest sticking point to get someone to use kind of the estimator if they only use the Builder Omni? Or does everyone use both of those? I think the question is, what's the barrier for somebody to use Estimate if they're using Omni? There really isn't a barrier. We've built the products so that they're pretty easy to get going, especially Estimate with existing business practices out there. Part of that's like what I shared with you earlier, is we're really not competing with much more than paper and rulers in some of these cases on the estimating side. Going from Omni, that does require a builder to maybe think differently about how do they engage with the home buyer. But we're seeing a lot of builders see that as a big opportunity going forward. Thank you. I would add to that to just say that our observation and why we were so excited about Paradigm is we couldn't answer that question with a good answer. Meaning there is really no reason why people aren't adopting Estimate and Homebuilder Omni, especially given all the things we wanna add to it. What they lacked was exposure to homebuilders and general contractors, and we know some people who have a lot of that. Thanks. Hey, Matt Bouley, Barclays again. I'm appreciating the slide that home construction is only slightly more advanced than hunters and gatherers. As you just said, there's a lot of rulers and notebooks out there, but clearly a lot of builders use software, right? It's not maybe total a little bit of hyperbole to say it's all rulers. I'm curious if you can go over mechanically. You have a typical small builder that has some set of software, maybe it's not totally integrated. Apologies, I'm not the smartest on this topic, but when you take Paradigm or Builder Omni, how do you kind of break into what they already do? Can you kinda integrate with what they already have, or is it an attempt to replace everything they have? How does t ypical customer, how do you kind of, you know, bridge that gap? Well, I think that's a great question. To summarize that a little bit, like customers, some of these builders out there already have software. So how does this fit into the equation? We're hitting an area that is not well solved today. These problems on estimating and visualization is a new area that we feel we can be dominant and really strong in. The builders don't have solutions that work and solve these problems. So in a couple of the examples, you saw the video earlier. Those, one of those builders there, it's a good-sized builder. They do have software. But what we provide was an experience that's superior around engaging their home buyer, and they're willing to leave the other software on the side and use ours to engage with the consumer. That's the place that we wanted. That's the value we wanted to provide. We think that it can be complementary. Okay. That's helpful. Just thinking about investing along those lines, you know, I guess the guide back of the envelope suggests the multiples that you're using in the M&A portion of the guide doesn't suggest Paradigm-type multiples. Just number one, confirming that's the case, that the guide does not assume additional software M&A. You know, what do you need to do in terms of organically investing behind software? Thank you. Yeah. The first part is accurate. It doesn't assume significant investment there other than organic. As we spoke about earlier, Matt, you know, we've got a great platform here to build. Connecting Paradigm and what we bought from Katerra is part of that development work. Importantly, extending that platform more broadly across the portfolio and connecting, for instance, estimating to the design work that we do, right, for our customers today. That's the essence of the development work that we have underway now and that you'll see us continue to invest in aggressively here over the next 12-18 months. Just to support that mathematically, it's embedded. The cost associated with the acquisition and what we anticipate the build-out will be was included in both the initial purchase model as well as the current model you saw today. Dave, we've got Bob, just hold on for just two minutes. Appreciate it. We have a couple questions from the webcast. Paradigm has been around for 20+ years and penetrated windows and doors, but if the opportunity set is so large in the whole house, why hasn't this product suite or competing offerings already scaled in other product categories? What have been the impediments, and why will these change? From Mike Dahl, RBC. Yeah. Well, I don't wanna speak for Nate, but maybe I can just paraphrase a little bit of what you heard from Nate earlier. The thing that was exciting for him, and certainly exciting for us, was we got access to a great platform. What we brought to Nate, you know, was the access to the market that he didn't have. He spent 20 years in his company building a fantastic platform and a fairly narrow focus from the standpoint of what we do, around millwork. What they were doing was perfecting that capability in a very narrow product set. The other thing, of course, as Peter's already said, we bring the investment that I think might've been somewhat limited in legacy Paradigm to continue to build and invest and grow this thing to scale very quickly. Those are the two pieces I think we brought to the table. Nate, anything you wanna- I think that answers it really well. Yeah. I think one other thing that should probably be added, though, is Homebuilder Omni is a very new product. Right. It's- Right. taking it to market Yeah. over the last two years. Yeah. I think it's not just a new product that's not doing something that everybody's done before. Right. With that, there's the change that I was talking about. You combine that together, like I said, in the presentation, I feel like it's a powerful combination. We're just about out of time. Maybe, Mike, one more question or so to wrap up? Yep. You talk about increasing the leverage from 1x to 2x for additional buybacks. Can you further clarify how you will make that determination? Yes, certainly not just additional buybacks. It's capital. It's where we perceive the opportunity to create shareholder value. If that additional risk is worth it, then it's certainly available to us, but we're gonna continue to run a disciplined balance sheet and we have a substantial amount of capital to work with, at 1x levered as well. Those are all the questions from the webcast. I turn it back over to you, Dave. Great. Just a short wrap up. I just wanna extend a heartfelt thanks and appreciation for your support and certainly for those of you that have traveled to be here in the room. We're excited about our future. This is the end of our formal program. However, we look forward to having lunch with many of you and the executives you see here as well as those scattered in the audience. We're happy to answer your further questions here over the course of the next hour and a half, and then we'll take a tour of our large and exciting millwork facility there in Coppell. So thank you very much. Appreciate your time and energy.