American Builders&Contractors Supply Co. Inc.

Overview Key strengths Key risks Largest distributer of roofing products in the U.S. with over $14 billion in revenue in 2021. Operates in a highly competitive and fragmented end market. Majority of sales tied to stable repair and remodeling (R&R) markets. Commodity-like products with little to no differentiation, and product cost volatility. Larger than most rated North American building products distributors, with above-average EBITDA margins of 12-13%.Stable leverage metrics of about 2x-3x by the end of 2022. Limited geographic and end-market diversity due to its sales concentration in North America. We believe ABC's EBITDA margins of 12%-13% and free cash flow generation will support leverage of 2x-3x by the end of 2022. ABC has historically benefitted from EBITDA margins of

...We believe ABC's EBITDA margins of 12%-13% and free cash flow generation will support leverage of 2x-3x by the end of 2022. ABC has historically benefitted from EBITDA margins of above 10%, which is above average for a building materials distributor, due largely to its scale, robust purchasing power, and integration of new acquisitions. We expect strong margins to continue in 2022 and slight taper toward historical levels in 2023 as the company manages operating costs through...

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