Builders FirstSource Reports Fourth Quarter and Full Year 2023 Results; Provides 2024 Financial Outlook
- None.
- None.
Insights
The reported financial results by Builders FirstSource, Inc. indicate a mixed performance in the context of a challenging construction market. The decline in net sales by 4.7% reflects broader industry trends, where a decrease in single-family home starts has likely impacted demand for building materials. However, the company's ability to grow through acquisitions and maintain a high Adjusted EBITDA margin despite reduced net sales is noteworthy. The margin increase to 16.5% suggests effective cost management and operational efficiency, potentially making Builders FirstSource a more resilient player in the sector.
Investors should consider the implications of the company's share repurchase program, which significantly reduced the total shares outstanding by 12.2%. This action can be seen as a signal of confidence from management in the company's intrinsic value and a contributor to the increase in earnings per diluted share despite the decrease in net income. Furthermore, the strong free cash flow of $1.9 billion provides the company with substantial liquidity to navigate future market uncertainties or invest in additional growth opportunities.
Analyzing the financial health and performance of Builders FirstSource, Inc., the reported cash provided by operating activities amounting to $2.3 billion underscores a robust operational capability. Investors often scrutinize cash flow metrics as they reflect the true financial vitality of a company, beyond income figures that can be influenced by non-cash accounting factors. The substantial free cash flow also enhances the company’s ability to service debt, pay dividends, or reinvest in the business, which is crucial for sustaining growth and shareholder value in the long term.
The stock market typically reacts to such financial disclosures with a focus on future earnings potential. In this case, the company's strong financial position and strategic share repurchases could be perceived positively, potentially influencing the stock's performance. However, the reported commodity deflation and its impact on net sales could be a cause for concern, signaling potential price pressure and competitive challenges within the industry that may affect future profitability.
From an industry perspective, the reported decrease in core organic net sales and the overall decline in net sales for Builders FirstSource align with the current slowdown in the housing market, particularly the reduction in single-family starts. This trend has significant implications for the construction supply chain, affecting manufacturers, distributors and retailers of building materials.
The company’s strategic focus on operational rigor and value-added solutions for customers is an important aspect in maintaining competitiveness. By emphasizing partnerships and ease of doing business, Builders FirstSource appears to be positioning itself to capitalize on any market recovery or to gain market share in a consolidating industry. The company's reported results and strategic initiatives should be of interest to stakeholders, as they may influence the company's market positioning and financial stability during periods of market volatility.
BFS Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
-
For the fourth quarter, net sales were
$4.2 billion 4.7% decrease, primarily driven by a decline in core organic net sales of1.3% and commodity deflation of5.0% , partially offset by growth from acquisitions of1.6% . -
For the fourth quarter, net income was
$350.7 million $2.83 $384.5 million $2.62 8.8% decrease in net income was primarily driven by lower net sales. -
For the fourth quarter, Adjusted EBITDA decreased
1.6% to$685.5 million 16.5% , attributable to higher gross margin, partially offset by reduced operating leverage. The Adjusted EBITDA margin has remained in the mid-teens or better for 11 consecutive quarters. -
For the twelve months ended December 31, 2023, cash provided by operating activities was
$2.3 billion $0.7 billion $1.9 billion -
The Company repurchased
$1.8 billion 12.2% in 2023.
“I'm proud of our fourth quarter and full year results, which demonstrated the strength of our broad product portfolio and continued execution by our resilient team members. Despite a challenging operating environment in 2023, which saw a significant reduction in single-family starts, we delivered a high-teens EBITDA margin. We accomplished this through operational rigor and by closely partnering with our customers to help address their pain points through use of our value-added solutions, solidifying our position as the easiest to do business with across the industry,” commented Dave Rush, CEO of Builders FirstSource.
Mr. Rush continued, “As we turn to 2024, we are excited about the opportunities in front of us. As we outlined at our recent Investor Day in December, we remain focused on our consistent strategy of growing our value-added products and services, investing in digital innovations, operating efficiently, and compounding long-term shareholder value.”
Peter Jackson, CFO of Builders FirstSource, added, “Our fourth quarter and full year results demonstrate the effectiveness of our operating model through the cycle. Our fortress balance sheet, strong cash flow generation, and ability to prudently deploy capital to the highest return opportunities, including acquisitions and share repurchases, continues to position us for long-term success. We are leveraging our sustainable competitive advantages and strong financial position to drive future growth and value creation for our shareholders.”
Fourth Quarter 2023 Financial Performance Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
Net Sales
-
Net sales of
$4.2 billion 4.7% decrease, primarily driven by a decline in core organic net sales of1.3% and commodity deflation of5.0% , partially offset by growth from acquisitions of1.6% . -
Core organic net sales declined
1.3% driven by Single-Family decreasing3.5% , while Multi-Family and Repair and Remodel (“R&R”)/Other increased4.3% and4.2% , respectively. On a weighted basis, the decline in Single-Family reduced sales by2.5% , while the increases in Multi-Family and R&R/Other increased sales by0.5% and0.7% , respectively.
Gross Profit
-
Gross profit was
$1.5 billion 1.4% compared to the prior year period. The gross profit margin percentage increase of 120 basis points to35.3% was primarily driven by productivity and Multi-Family strength, partially offset by core organic margin normalization.
Selling, General and Administrative Expenses
-
SG&A was
$974.4 million $15.8 million 1.6% , primarily driven by variable compensation and additional expenses from operations acquired within the last twelve months, partially offset by a reduction in expense related to customer reserves. As a percentage of net sales, total SG&A increased by 150 basis points to23.5% , primarily attributable to reduced operating leverage.
Interest Expense
-
Interest expense increased
$4.6 million $46.8 million
Income Tax Expense
-
Income tax expense was
$92.9 million $99.3 million 20.9% .
Net Income
-
Net income was
$350.7 million $2.83 $384.5 million $2.62 8.8% decrease in net income was primarily driven by lower net sales.
Adjusted Net Income
-
Adjusted net income was
$439.3 million 6.7% , primarily driven by lower net sales.
Adjusted Earnings Per Diluted Share
-
Adjusted earnings per diluted share was
$3.55 $3.21 10.6% increase was primarily driven by share repurchases, partially offset by lower net sales.
Adjusted EBITDA
-
Adjusted EBITDA decreased
1.6% to$685.5 million -
Adjusted EBITDA margin increased by 50 basis points from the prior year period to
16.5% , attributable to higher gross margin, partially offset by reduced operating leverage.
Full Year 2023 Financial Performance Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
Net Sales
-
Net sales of
$17.1 billion 24.8% decrease, primarily driven by a decline in core organic net sales of17.3% and commodity deflation of11.1% , partially offset by growth from acquisitions of3.6% . -
Core organic net sales declined
17.3% , driven by Single-Family decreasing24.1% , while Multi-Family and Repair and Remodel (“R&R”)/Other increased20.3% and0.7% , respectively. On a weighted basis, the decline in Single-Family reduced sales by18.9% , while the increases in Multi-Family and R&R/Other increased sales by1.5% and0.1% , respectively.
Gross Profit
-
Gross profit was
$6.0 billion 22.4% compared to the prior year period. The gross profit margin percentage increase of 110 basis points to35.2% was largely driven by Multi-Family strength, partially offset by core organic margin normalization.
Selling, General and Administrative Expenses
-
SG&A was
$3.8 billion $137.7 million 3.5% , primarily driven by lower variable compensation due to lower core organic net sales and a reduction in expense related to customer reserves, partially offset by additional expenses from operations acquired within the last twelve months. As a percentage of net sales, total SG&A increased by 490 basis points to22.4% , primarily attributable to reduced operating leverage.
Interest Expense
-
Interest expense decreased
$6.3 million $192.1 million $27.4 million
Income Tax Expense
-
Income tax expense was
$443.6 million $822.5 million 22.4% .
Net Income
-
Net income was
$1.5 billion $11.94 $2.7 billion $16.82 44.0% decrease in net income was primarily driven by lower net sales.
Adjusted Net Income
-
Adjusted net income was
$1.9 billion 38.5% , primarily driven by lower net sales.
Adjusted Earnings Per Diluted Share
-
Adjusted earnings per diluted share was
$14.59 $18.71 22.0% decrease was primarily driven by lower net sales, partially offset by share repurchases.
Adjusted EBITDA
-
Adjusted EBITDA decreased
33.8% to$2.9 billion -
Adjusted EBITDA margin decreased by 230 basis points from the prior year period to
17.0% , primarily due to lower net sales and reduced operating leverage.
Capital Structure, Leverage, and Liquidity Information
-
For the fourth quarter, cash provided by operating activities was
$611.7 million $359.7 million $515.3 million $324.4 million -
For the twelve months ended December 31, 2023, cash provided by operating activities was
$2.3 billion $0.7 billion $1.9 billion -
Liquidity as of December 31, 2023, was approximately
$1.3 billion $1,270.0 million $70.0 million -
As of December 31, 2023, Adjusted EBITDA was
$2.9 billion $3.1 billion -
The Company repurchased 1.6 million shares of its common stock in the fourth quarter at an average price of
$131.74 $208.9 million $100.49 $1.8 billion 12.2% in 2023. -
On February 21, 2024, the Company’s Board of Directors authorized the repurchase of up to
$1.0 billion $200 million -
Since the inception of its buyback program in August 2021, the Company has repurchased 87.1 million shares of its common stock, or
42.2% of its total shares outstanding, at an average price of$70.27 $6.1 billion -
The Company completed two acquisitions during the fourth quarter. In 2023, the Company completed seven acquisitions with aggregate sales in 2022 of approximately
$540 million
Operational Excellence Productivity
-
In 2023, the Company delivered approximately
$175 million -
The Company expects to deliver
$90 million $110 million
2024 Total Company Outlook
For 2024, the Company expects to achieve the financial performance highlighted below. Projected Net Sales and Adjusted EBITDA include the expected benefit of price, commodity, and margin impacts for 2024.
-
Net Sales to be in a range of
$17.5 billion $18.5 billion -
Gross Profit margin to be in a range of
30% to33% . -
Adjusted EBITDA to be in a range of
$2.4 billion $2.8 billion -
Adjusted EBITDA margin to be in a range of
14.0% to15.0% . -
Free cash flow in the range of
$1.0 billion $1.2 billion $400 $440
2024 Full Year Assumptions
The Company’s anticipated 2024 performance is based on several assumptions for the full year, including the following:
-
Within the Company’s geographies, Single-Family starts are projected to be up mid-single digits, Multi-Family starts down
20% to30% , and R&R is projected to be up low single digits. -
Acquisitions completed within the last twelve months are projected to add net sales growth of
1% to1.5% . -
Total capital expenditures in the range of
$400 million $500 million -
Interest expense in the range of
$190 million $200 million -
An effective tax rate of
23.0% to25.0% . -
Depreciation and amortization expenses in the range of
$525 million $575 million -
Two more selling days are projected to add
0.7% net sales growth in 2024 versus 2023.
Conference Call
Builders FirstSource will host a conference call and webcast on Thursday, February 22, 2024, to discuss the Company’s financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Dave Rush, Chief Executive Officer, and Peter Jackson, Chief Financial Officer.
To participate in the teleconference, please dial into the call a few minutes before the start time: 800-225-9448 (
Upcoming Events
Management will participate in investor meetings at the NAHB International Builders' Show in
About Builders FirstSource
Headquartered in
Forward-Looking Statements
Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information, assumptions, expectations, and projections about future events available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control or may be currently unknown to the Company, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the Company’s growth strategies, including acquisitions, organic growth and digital strategies, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, consumer confidence, labor and supply shortages, and also lumber and other commodity prices. Builders FirstSource may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
Non-GAAP Financial Measures
The financial measures entitled Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, diluted Adjusted net income per share and Free cash flow are not financial measures recognized under GAAP and are therefore non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and operating results.
Adjusted EBITDA is defined as GAAP net income before depreciation and amortization expense, interest expense, net, income tax expense and other non-cash or special items including stock compensation expense, acquisition and integration expense, debt issuance and refinancing costs, severance and gain on sale of assets and other one-time costs. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the last twelve consecutive months. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before non-cash or special items including acquisition and integration expense, technology implementation expense, debt issuance, and refinancing cost and amortization expense offset by the tax effect of those adjustments to net income. Adjusted net income per diluted share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. Free cash flow is defined as GAAP net cash from operating activities less capital expenditures, net of proceeds from the sale of property, plant and equipment.
Company management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income and diluted Adjusted net income per share as supplemental measures in its evaluation of the Company’s business, including for trend analysis, purposes of determining management incentive compensation and budgeting and planning purposes. Company management believes that these measures provide a meaningful measure of the Company’s performance and a better baseline for comparing financial performance across periods because these measures eliminate the effects of period to period changes, in the case of Adjusted EBITDA and Adjusted EBITDA margin, in taxes, costs associated with capital investments, interest expense, stock compensation expense, and other non-cash and non-recurring items and, in the case of Adjusted net income and Adjusted net income per diluted share, in certain non-recurring items. Company management also uses free cash flow as a supplemental measure in its evaluation of the Company’s business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Company’s liquidity.
The Company believes that these non-GAAP financial measures provide additional tools for investors to use in evaluating ongoing operating results, cash flows and trends and in comparing the Company’s financial measures with other companies in the Company’s industry, which may present similar non-GAAP financial measures to investors. However, the Company’s calculations of these financial measures are not necessarily comparable to similarly titled measures reported by other companies. Company management does not consider these financial measures in isolation or as alternatives to financial measures determined in accordance with GAAP. Furthermore, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.
The Company’s Adjusted EBITDA outlook, free cash flow and full-year forecast for its effective tax rate on operations exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring costs such as professional and legal fees associated with our acquisitions and enterprise resource planning (ERP) program. The Company’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these income and expense items will have on its reported net income, operating cash flow and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, the Company does not provide a reconciliation to the most comparable GAAP financial measure for its Adjusted EBITDA or free cash flow outlook or its effective tax rate on operations forecast. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to the Company’s outlook.
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) |
|||||||||
|
|
Years Ended December 31, |
|||||||
(in thousands, except per share amounts) |
|
2023 |
|
2022 |
|
2021 |
|||
Net sales |
|
$ |
17,097,330 |
|
$ |
22,726,418 |
|
$ | 19,893,856 |
Cost of sales |
|
|
11,084,996 |
|
|
14,982,039 |
|
|
14,042,900 |
Gross margin |
|
|
6,012,334 |
|
|
7,744,379 |
|
|
5,850,956 |
Selling, general and administrative expenses |
|
|
3,836,015 |
|
|
3,974,173 |
|
|
3,463,532 |
Income from operations |
|
|
2,176,319 |
|
|
3,770,206 |
|
|
2,387,424 |
Interest expense, net |
|
|
192,115 |
|
|
198,373 |
|
|
135,877 |
Income before income taxes |
|
|
1,984,204 |
|
|
3,571,833 |
|
|
2,251,547 |
Income tax expense |
|
|
443,649 |
|
|
822,464 |
|
|
526,131 |
Net income |
|
$ |
1,540,555 |
|
$ |
2,749,369 |
|
$ |
1,725,416 |
|
|
|
|
|
|
|
|||
Net income per share: |
|
|
|
|
|
|
|||
Basic |
|
$ |
12.06 |
|
$ |
16.98 |
|
$ |
8.55 |
Diluted |
|
$ |
11.94 |
|
$ |
16.82 |
|
$ |
8.48 |
Weighted average common shares: |
|
|
|
|
|
|
|||
Basic |
|
|
127,777 |
|
|
161,960 |
|
|
201,839 |
Diluted |
|
|
128,998 |
|
|
163,481 |
|
|
203,470 |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) |
||||||||||||
|
|
Year Ended December 31, |
||||||||||
(in thousands) |
|
2023 |
|
2022 |
|
2021 |
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
||||||
Net income |
|
$ |
1,540,555 |
|
|
$ |
2,749,369 |
|
|
$ |
1,725,416 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
558,275 |
|
|
|
497,140 |
|
|
|
547,352 |
|
Amortization of debt discount, premium and issuance costs |
|
|
4,685 |
|
|
|
4,837 |
|
|
|
3,869 |
|
Loss on extinguishment of debt |
|
|
728 |
|
|
|
27,387 |
|
|
|
3,027 |
|
Deferred income taxes |
|
|
(102,461 |
) |
|
|
(92,461 |
) |
|
|
(34,573 |
) |
Stock-based compensation expense |
|
|
48,522 |
|
|
|
31,337 |
|
|
|
31,486 |
|
Credit loss expense |
|
|
(11,488 |
) |
|
|
38,921 |
|
|
|
20,451 |
|
Non-cash net gain on assets |
|
|
(7,072 |
) |
|
|
(1,965 |
) |
|
|
(32,421 |
) |
Changes in assets and liabilities, net of assets acquired and liabilities assumed: |
|
|
|
|
|
|
||||||
Receivables |
|
|
(12,641 |
) |
|
|
381,223 |
|
|
|
(474,362 |
) |
Inventories |
|
|
231,457 |
|
|
|
271,889 |
|
|
|
(282,165 |
) |
Contract assets |
|
|
18,023 |
|
|
|
24,051 |
|
|
|
(103,326 |
) |
Other current assets |
|
|
10,941 |
|
|
|
15,173 |
|
|
|
(33,489 |
) |
Other assets and liabilities |
|
|
(5,311 |
) |
|
|
15,189 |
|
|
|
(1,155 |
) |
Accounts payable |
|
|
75,750 |
|
|
|
(314,004 |
) |
|
|
191,885 |
|
Accrued liabilities |
|
|
(9,704 |
) |
|
|
(15,766 |
) |
|
|
91,419 |
|
Contract liabilities |
|
|
(33,387 |
) |
|
|
(33,089 |
) |
|
|
90,135 |
|
Net cash provided by operating activities |
|
|
2,306,872 |
|
|
|
3,599,231 |
|
|
|
1,743,549 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||||||
Cash used for acquisitions, net of cash acquired |
|
|
(238,673 |
) |
|
|
(628,014 |
) |
|
|
(1,206,471 |
) |
Proceeds from divestiture of business |
|
|
— |
|
|
|
— |
|
|
|
76,162 |
|
Purchases of property, plant and equipment |
|
|
(476,335 |
) |
|
|
(340,152 |
) |
|
|
(227,891 |
) |
Proceeds from sale of property, plant and equipment |
|
|
46,715 |
|
|
|
10,687 |
|
|
|
13,560 |
|
Net cash used in investing activities |
|
|
(668,293 |
) |
|
|
(957,479 |
) |
|
|
(1,344,640 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||||||
Borrowings under revolving credit facility |
|
|
5,128,000 |
|
|
|
5,881,000 |
|
|
|
3,125,000 |
|
Repayments under revolving credit facility |
|
|
(4,928,000 |
) |
|
|
(6,205,000 |
) |
|
|
(2,612,000 |
) |
Proceeds from long-term debt and other loans |
|
|
— |
|
|
|
1,001,500 |
|
|
|
1,000,000 |
|
Repayments of long-term debt and other loans |
|
|
(4,221 |
) |
|
|
(616,222 |
) |
|
|
(554,677 |
) |
Payments of debt extinguishment costs |
|
|
— |
|
|
|
(20,672 |
) |
|
|
(4,950 |
) |
Payments of loan costs |
|
|
(1,897 |
) |
|
|
(16,797 |
) |
|
|
(19,450 |
) |
Exercise of stock options |
|
|
659 |
|
|
|
589 |
|
|
|
726 |
|
Repurchase of common stock |
|
|
(1,847,409 |
) |
|
|
(2,628,308 |
) |
|
|
(1,714,761 |
) |
Net cash used in financing activities |
|
|
(1,652,868 |
) |
|
|
(2,603,910 |
) |
|
|
(780,112 |
) |
Net change in cash and cash equivalents |
|
|
(14,289 |
) |
|
|
37,842 |
|
|
|
(381,203 |
) |
Cash and cash equivalents at beginning of period |
|
|
80,445 |
|
|
|
42,603 |
|
|
|
423,806 |
|
Cash and cash equivalents at end of period |
|
$ |
66,156 |
|
|
$ |
80,445 |
|
|
$ |
42,603 |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) |
||||||
(in thousands, except per share amounts) |
|
December 31,
|
|
December 31,
|
||
ASSETS |
|
|
|
|
||
Current assets: |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
66,156 |
|
$ |
80,445 |
Accounts receivable, less allowances of |
|
|
1,436,917 |
|
|
1,448,139 |
Other receivables |
|
|
290,310 |
|
|
234,966 |
Inventories, net |
|
|
1,228,265 |
|
|
1,426,196 |
Contract assets |
|
|
165,677 |
|
|
183,700 |
Other current assets |
|
|
113,403 |
|
|
124,201 |
Total current assets |
|
|
3,300,728 |
|
|
3,497,647 |
Property, plant and equipment, net |
|
|
1,803,824 |
|
|
1,567,631 |
Operating lease right-of-use assets, net |
|
|
502,184 |
|
|
485,704 |
Goodwill |
|
|
3,556,556 |
|
|
3,456,854 |
Intangible assets, net |
|
|
1,298,173 |
|
|
1,550,944 |
Other assets, net |
|
|
37,987 |
|
|
36,380 |
Total assets |
|
$ |
10,499,452 |
|
$ |
10,595,160 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||
Current liabilities: |
|
|
|
|
||
Accounts payable |
|
$ |
881,384 |
|
$ |
803,479 |
Accrued liabilities |
|
|
717,528 |
|
|
739,009 |
Contract liabilities |
|
|
162,659 |
|
|
193,178 |
Current portion of operating lease liabilities |
|
|
98,217 |
|
|
100,758 |
Current maturities of long-term debt |
|
|
3,649 |
|
|
6,355 |
Total current liabilities |
|
|
1,863,437 |
|
|
1,842,779 |
Noncurrent portion of operating lease liabilities |
|
|
434,081 |
|
|
404,463 |
Long-term debt, net of current maturities, discounts and issuance costs |
|
|
3,177,411 |
|
|
2,977,842 |
Deferred income taxes |
|
|
167,199 |
|
|
269,660 |
Other long-term liabilities |
|
|
124,973 |
|
|
137,850 |
Total liabilities |
|
|
5,767,101 |
|
|
5,632,594 |
Commitments and contingencies (Note 13) |
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
1,219 |
|
|
1,389 |
Additional paid-in capital |
|
|
4,270,948 |
|
|
4,257,667 |
Retained earnings |
|
|
460,184 |
|
|
703,510 |
Total stockholders' equity |
|
|
4,732,351 |
|
|
4,962,566 |
Total liabilities and stockholders' equity |
|
$ |
10,499,452 |
|
$ |
10,595,160 |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Reconciliation of Adjusted Non-GAAP Financial Measures to their GAAP Equivalents (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
(in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Reconciliation to Adjusted EBITDA: |
|
|
|
|
|
|
|
||||||||
GAAP net income |
$ |
350.7 |
|
|
$ |
384.5 |
|
|
$ |
1,540.6 |
|
|
$ |
2,749.4 |
|
Acquisition and related expense |
|
4.0 |
|
|
|
6.1 |
|
|
|
30.9 |
|
|
|
47.8 |
|
Technology implementation expense |
|
29.8 |
|
|
|
17.3 |
|
|
|
81.4 |
|
|
|
29.0 |
|
Debt issuance and refinancing cost |
|
- |
|
|
|
- |
|
|
|
0.7 |
|
|
|
27.4 |
|
Amortization expense |
|
82.8 |
|
|
|
90.1 |
|
|
|
335.7 |
|
|
|
302.6 |
|
Tax-effect of adjustments to net income |
|
(28.0 |
) |
|
|
(27.2 |
) |
|
|
(107.7 |
) |
|
|
(97.6 |
) |
Adjusted net income |
$ |
439.3 |
|
|
$ |
470.8 |
|
|
$ |
1,881.6 |
|
|
$ |
3,058.6 |
|
Weighted average diluted common shares |
|
123.8 |
|
|
|
146.8 |
|
|
|
129.0 |
|
|
|
163.5 |
|
Diluted adjusted net income per share: |
$ |
3.55 |
|
|
$ |
3.21 |
|
|
$ |
14.59 |
|
|
$ |
18.71 |
|
Reconciling items: |
|
|
|
|
|
|
|
||||||||
Depreciation expense |
$ |
59.3 |
|
|
$ |
51.6 |
|
|
$ |
222.6 |
|
|
$ |
194.6 |
|
Interest expense, net |
|
46.8 |
|
|
|
42.2 |
|
|
|
191.4 |
|
|
|
171.0 |
|
Income tax expense |
|
120.9 |
|
|
|
126.5 |
|
|
|
551.3 |
|
|
|
920.1 |
|
Stock compensation expense |
|
13.0 |
|
|
|
4.7 |
|
|
|
48.5 |
|
|
|
31.3 |
|
Other management-identified adjustments (1) |
|
6.2 |
|
|
|
1.1 |
|
|
|
3.9 |
|
|
|
1.0 |
|
Adjusted EBITDA |
$ |
685.5 |
|
|
$ |
696.9 |
|
|
$ |
2,899.3 |
|
|
$ |
4,376.6 |
|
Adjusted EBITDA margin |
|
16.5 |
% |
|
|
16.0 |
% |
|
|
17.0 |
% |
|
|
19.3 |
% |
|
|
|
|
|
|
|
|
||||||||
(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs. |
|||||||||||||||
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Financial Data (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
(in millions, except per share amounts) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
$ |
4,150.9 |
|
|
$ |
4,357.6 |
|
|
$ |
17,097.3 |
|
|
$ |
22,726.4 |
|
Cost of sales |
|
2,686.0 |
|
|
|
2,872.5 |
|
|
|
11,085.0 |
|
|
|
14,982.0 |
|
Gross margin |
|
1,464.9 |
|
|
|
1,485.1 |
|
|
|
6,012.3 |
|
|
|
7,744.4 |
|
Gross margin % |
|
35.3 |
% |
|
|
34.1 |
% |
|
|
35.2 |
% |
|
|
34.1 |
% |
Adjusted SG&A as a % of sales (1) |
|
18.9 |
% |
|
|
18.1 |
% |
|
|
18.2 |
% |
|
|
14.8 |
% |
Adjusted EBITDA |
|
685.5 |
|
|
|
696.9 |
|
|
|
2,899.3 |
|
|
|
4,376.6 |
|
Adjusted EBITDA margin % |
|
16.5 |
% |
|
|
16.0 |
% |
|
|
17.0 |
% |
|
|
19.3 |
% |
Depreciation expense |
|
(59.3 |
) |
|
|
(51.6 |
) |
|
|
(222.6 |
) |
|
|
(194.6 |
) |
Interest expense, net of debt issuance cost and refinancing |
|
(46.8 |
) |
|
|
(42.2 |
) |
|
|
(191.4 |
) |
|
|
(171.0 |
) |
Income tax expense |
|
(120.9 |
) |
|
|
(126.5 |
) |
|
|
(551.3 |
) |
|
|
(920.1 |
) |
Other adjustments |
|
(19.2 |
) |
|
|
(5.8 |
) |
|
|
(52.4 |
) |
|
|
(32.3 |
) |
Adjusted net income |
$ |
439.3 |
|
|
$ |
470.8 |
|
|
$ |
1,881.6 |
|
|
$ |
3,058.6 |
|
Basic adjusted net income per share: |
$ |
3.58 |
|
|
$ |
3.24 |
|
|
$ |
14.73 |
|
|
$ |
18.88 |
|
Diluted adjusted net income per share: |
$ |
3.55 |
|
|
$ |
3.21 |
|
|
$ |
14.59 |
|
|
$ |
18.71 |
|
Weighted average common shares |
|
|
|
|
|
|
|
||||||||
Basic |
|
122.6 |
|
|
|
145.5 |
|
|
|
127.8 |
|
|
|
162.0 |
|
Diluted |
|
123.8 |
|
|
|
146.8 |
|
|
|
129.0 |
|
|
|
163.5 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Adjusted SG&A as a percentage of net sales is defined as GAAP SG&A less depreciation and amortization, stock compensation, acquisition, integration, and technology implementation expenses divided by net sales. |
|||||||||||||||
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Interest Reconciliation (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
December 31, 2023 |
|
December 31, 2023 |
||||||||||||
(in millions) |
Interest
|
|
Net Debt Outstanding |
|
Interest
|
|
Net Debt Outstanding |
||||||||
2032 Unsecured notes @ |
$ |
13.8 |
|
$ |
1,300.0 |
|
|
$ |
55.3 |
|
$ |
1,300.0 |
|
||
2032 Unsecured notes @ |
|
11.2 |
|
|
|
700.0 |
|
|
|
44.6 |
|
|
|
700.0 |
|
2030 Unsecured notes @ |
|
6.9 |
|
|
|
550.0 |
|
|
|
27.5 |
|
|
|
550.0 |
|
Revolving credit facility @ |
|
9.1 |
|
|
|
464.0 |
|
|
|
40.1 |
|
|
|
464.0 |
|
Amortization of debt issuance costs, discount and premium |
|
1.2 |
|
|
|
- |
|
|
|
4.7 |
|
|
|
- |
|
Finance leases and other finance obligations |
|
4.8 |
|
|
|
195.3 |
|
|
|
19.5 |
|
|
|
195.3 |
|
Debt issuance and refinancing cost |
|
- |
|
|
|
- |
|
|
|
0.7 |
|
|
|
- |
|
Cash |
|
- |
|
|
|
(66.2 |
) |
|
|
- |
|
|
|
(66.2 |
) |
Total |
$ |
47.0 |
|
|
$ |
3,143.1 |
|
|
$ |
192.4 |
|
|
$ |
3,143.1 |
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
(in millions) |
December 31, 2023 |
|
December 31, 2023 |
||||
Free Cash Flow |
|
||||||
Operating activities |
$ |
611.7 |
|
|
$ |
2,306.9 |
|
Less: Capital expenditures, net of proceeds |
|
(96.4 |
) |
|
|
(429.6 |
) |
Free cash flow |
$ |
515.3 |
|
|
$ |
1,877.3 |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Sales by Product Category (unaudited) |
||||||||||||||||
|
Three Months Ended December 31, |
|||||||||||||||
|
2023 |
|
2022 |
|
|
|||||||||||
(in millions) |
Net Sales |
|
% of
|
|
Net Sales |
|
% of
|
|
%
|
|||||||
Manufactured products |
$ |
1,105.6 |
|
26.6 |
% |
|
$ |
1,142.7 |
|
26.2 |
% |
|
(3.2 |
)% |
||
Windows, doors & millwork |
|
1,056.2 |
|
|
25.4 |
% |
|
|
1,127.9 |
|
|
25.9 |
% |
|
(6.4 |
)% |
Value-added products |
|
2,161.8 |
|
|
52.0 |
% |
|
|
2,270.6 |
|
|
52.1 |
% |
|
(4.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|||||||
Specialty building products & services |
|
948.8 |
|
|
22.9 |
% |
|
|
990.2 |
|
|
22.7 |
% |
|
(4.2 |
)% |
Lumber & lumber sheet goods |
|
1,040.3 |
|
|
25.1 |
% |
|
|
1,096.8 |
|
|
25.2 |
% |
|
(5.2 |
)% |
Total net sales |
$ |
4,150.9 |
|
|
100.0 |
% |
|
$ |
4,357.6 |
|
|
100.0 |
% |
|
(4.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Twelve Months Ended December 31, |
|||||||||||||||
|
2023 |
|
2022 |
|
|
|||||||||||
(in millions) |
Net Sales |
|
% of
|
|
Net Sales |
|
% of
|
|
%
|
|||||||
Manufactured products |
$ |
4,700.7 |
|
|
27.5 |
% |
|
$ |
5,675.7 |
|
|
24.9 |
% |
|
(17.2 |
)% |
Windows, doors & millwork |
|
4,289.1 |
|
|
25.1 |
% |
|
|
4,653.3 |
|
|
20.5 |
% |
|
(7.8 |
)% |
Value-added products |
|
8,989.8 |
|
|
52.6 |
% |
|
|
10,329.0 |
|
|
45.4 |
% |
|
(13.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|||||||
Specialty building products & services |
|
3,978.7 |
|
|
23.3 |
% |
|
|
4,310.6 |
|
|
19.0 |
% |
|
(7.7 |
)% |
Lumber & lumber sheet goods |
|
4,128.9 |
|
|
24.1 |
% |
|
|
8,086.8 |
|
|
35.6 |
% |
|
(48.9 |
)% |
Total net sales |
$ |
17,097.3 |
|
|
100.0 |
% |
|
$ |
22,726.4 |
|
|
100.0 |
% |
|
(24.8 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222401542/en/
Heather Kos
SVP, Investor Relations
Builders FirstSource, Inc.
investorrelations@bldr.com
Source: Builders FirstSource, Inc.
FAQ
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