We expect SRS Distribution Inc. to continue consolidating the roofing distribution industry, which remains highly fragmented with approximately 50% of the space comprised of small companies. This should help it grow EBITDA as acquisition synergies, such as purchasing advantages, begin to materialize. EBITDA growth is also supported by maturing greenfield operations. However, the use of free cash to fund this strategy will keep leverage high for at least the next two years. Roofing shingle prices by manufacturers have increased in the double-digit percent area since 2017. SRS' ability to rapidly follow suit, typically within several weeks, should allow it to maintain its margins, subject to timing, peer reactions, and customer acceptance. While cost increases may contract margins in the short
