Total Home Roofing
Company Overview
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Financial Summary
Largest residential roof repair and replacement
company in Florida
Founded: 2006
Headquarters: Rockledge, FL
– Houses centralized call center, corporate functions
10 regional offices
– Florida (7 MSAs), Texas, and Arizona
# of corporate employees (W-2): ~200
# of roofing subcontractors (1099): ~300-350
Acquired Citrus Contracting in December 2018
– Accelerated expansion to Tampa and Jacksonville
sales territories and expanded presence in insurance
market
FYE 12/31
2020
2021
2019
2022
2023E
Revenue
% growth
$83.1
--
$104.7
26%
$133.1
27%
$137.5
3%
$151.4
10%
Gross Profit
% margin
$29.5
35%
$38.1
36%
$38.3
29%
$36.9
27%
$50-55
33-36%
Adj. EBITDA
% margin
$7.2
$5.0
($6.8)
($19.8)
$5-10
9%
5%
(5%)
(14%)
3-7%
Burdened by markets that have been exited and excess
marketing spend; will present a PF view in marketing
materials (would be ~$125M of revenue)
Revenue Composition (2020A)
Geographic Footprint
2020 Revenue by Geo
Brevard
Orlando
Austin
Jacksonville
Tampa
San Antonio
Bradenton
Naples
Phoenix
2020 Revenue by Channel
Port St. Lucie
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THR Sales Process
HQ: Lead Conversion (“LC”) Team or Inside Sales Team
Lead
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LC team member places an outbound call and sends email to the prospective customer with goal of scheduling on-site
appointment with a sales rep within the next 24 to 48 hours. THR employs weekend and extended hour employees on
the LC Team dedicated to this process
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If the LC Team is unable to book an on-site appointment after a specific number of contacts, or if a customer requests a
virtual quote, the lead is transferred to THR’s inside sales team
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Inside sales team sends customer a virtual quote determined primarily using satellite imaging software (occasionally a
follow-up site visit is necessary for more complicated jobs)
Regional: Sales Reps
On-Site Sales
Appointment
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LC team has access to sales rep calendars and is responsible for setting on-site sales appointments
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Sales rep conducts onsite assessment of the job and provides a cost estimate prior to leaving the home
HQ: Pre-Production Coordinators
Centralized
Coordination
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After sales rep receives a signed contract, a roofing coordinator, primarily oversees customer communication over
lifecycle of project, sends the project in THR’s cloud production management software and sends the customer a “Coffee
Letter” - sets customer expectations and commits THR to 100% customer satisfaction + $5 Starbucks gift card
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Job assessment coordinator reviews pictures, home type, satellite images, and any other design oddities to identify any
potential production challenges likely to cause delays, customer service complaints, or warranty issues down the road
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If job assessment coordinator classifies a job as a standard project, it is immediately sent to a scheduler to order materials
and coordinate the roof installation. If the job is deemed a Special Project, a job-specific production plan is created
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If the customer has filed an insurance claim to pay roof replacement, THR assigns an insurance coordinator to the job
Regional: Production Supervisors
Job Supervision
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Once a job is scheduled, oversight is handed to a production supervisor; because ancillary tasks have been centralized a
THR production supervisor can handle 7 to 10 jobs at any given time vs. 1-3 for most competitors in residential reroofing
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Production supervisors oversee the work of subcontractors performing the roof installation, ensure all job materials arrive
on time and in the correct colors and quantities, and actively remediate any problems that arise
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A Total Home Roofing Retail Transaction
Manufacturer /
Distributor
(Drops materials off
on-site; THR doesn’t
hold inventory)
Consumer
Service Request
Lead Conversion
Team
Once a lead is
received, a Lead
Conversion team
member places a call
& sends an email to
schedule an on-site
appointment within
24-48 hours
Salesforce
Commissioned sales
reps are exclusively
focused on selling;
once a lead is closed,
turns over relationship
to production team
If a prospective customer requests a virtual quote
instead, THR utilizes satellite imaging software
Production /
Quality Assurance
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Manages customer
relationship post-sale
Hires Roofing SPs for job
Coordinates materials
order and delivery
Handles payments
(customer and vendor)
QA managers
exclusively oversee
subcontractor work
Roofing SPs
(1099 employees)
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US Roofing Market
Roofing Market Overview
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US residential roofing is a $45B industry
Majority demand for asphalt shingle projects with ~85% of
demand representing re-roofing/repair of which ~95% are nondiscretionary so relatively insulated from macro (e.g., 2020)
3 main ecosystem segments in 1) manufacturers, 2)
distributors, 3) pros with other segments being less vital
Largest pros generally regional players topping out at ~$100M
Gutters small market with overlap since roofing pros often do
US Steep-Slope Roofing Market Materials2
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2)
US Roofing Market ($Bs)1
3)
Source: IBISWorld
Source: Owens Corning 2017 Presentation
Source: Asphalt Roofing Manufacturers Association (ARMA)
US Asphalt Shingle Market3
Likely covered by homeowners'
insurance; ~30% historically
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US Roofing Ecosystem
1 MANUFACTURERS
Text
2 DISTRIBUTORS
Text
3 PROS
Text
INDUSRY ASSOCIATIONS
TECH PROVIDERS
HOME INSURANCE
GOVERNMENT (codes, permits)
PROF. SERVICES
MEDIA AND EDUCATION
ARCHITECTS
MARKETING/LEAD GEN
FINANCING
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