Builders FirstSource Reports Second Quarter 2023 Results
- The company's strong mix in value-added products led to an increase in gross profit margin percentage to 35.2%
- The decrease in net income and adjusted net income was primarily driven by a decrease in sales volumes and commodity deflation
- The company has a strong quarter-end balance sheet with liquidity of $0.9 billion and a net debt to LTM Adjusted EBITDA ratio of 1.1x
- The company has made deliberate investments to enhance digital solutions and improve the customer experience, which is expected to drive growth in the future
- Net sales decreased by 34.6%
- Adjusted EBITDA decreased by 49.0%
- Net income decreased by 59.0%
Net sales of
Net income of
Earnings per diluted share of
Adjusted EBITDA of
Repurchased 7.0 million shares in Q2;
Second Quarter 2023 Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
-
Net sales of
, a$4.5 billion 34.6% decrease driven by a decline in core organic net sales of22.3% and commodity deflation of16.2% , partially offset by acquisitions of3.9% . -
Gross profit margin percentage increased 40 basis points to
35.2% due to stronger mix in value-added products overall, largely driven by our recent strategic investments in Multi-Family and related commodity price fluctuations. -
Net income decreased
59.0% to , or$404.6 million per diluted share compared to$3.16 in the prior year period, and adjusted net income decreased$5.75 53.6% to , or$498.4 million per diluted share compared to$3.89 in the prior year period. Net income and adjusted net income per diluted share declined$6.26 45.0% and37.9% , respectively. -
Adjusted EBITDA decreased
49.0% to , primarily driven by lower net sales including a decline in core organic products and commodity deflation. Adjusted EBITDA margin declined by 480 basis points to$768.8 million 17.0% . -
Cash provided by operating activities was
, down$391.3 million compared to the prior year period, while free cash flow was$555.9 million , down$269.9 million compared to the prior year period.$611.5 million -
Strong quarter-end balance sheet with liquidity of
and a net debt to LTM Adjusted EBITDA ratio of 1.1x.$0.9 billion -
Repurchased 7.0 million shares of common stock at an average price of
for$103.68 , inclusive of fees and taxes.$722.7 million
“Second quarter results surpassed our expectations driven by the strength of our value-added product portfolio, contributions from operational initiatives instilled over the last few years, and a more stable housing environment,” commented Dave Rush, CEO of Builders FirstSource. “We continue to exceed our near-term targets and execute our strategic priorities through the hard work and dedication of our team members. We are creating value for shareholders by driving operational excellence and prudently deploying capital for long-term growth.”
Mr. Rush continued, “We are making deliberate investments to enhance our cutting-edge digital solutions and improve the customer experience, primarily through the Digital Tools on our recently launched myBLDR.com portal. We will continue to leverage these solutions, our value-added offerings, and our purpose-built scale to drive growth into the future.”
Peter Jackson, CFO of Builders FirstSource, added, “Our second quarter performance demonstrates that we are well positioned in the marketplace with differentiated solutions and a strong balance sheet. We continue to generate robust free cash flow and prudently deploy capital, making four value-enhancing, tuck-in acquisitions to date in 2023 and repurchasing over
Financial Performance Highlights - Second Quarter 2023 Compared to Second Quarter 2022
Net Sales
-
Net sales of
, a$4.5 billion 34.6% decrease driven by a decline in core organic net sales of22.3% and commodity deflation of16.2% , partially offset by acquisitions of3.9% . -
Driving the core organic net sales decline of
22.3% , Single-Family declined31.0% , Multi-Family increased29.6% , and Repair and Remodel (“R&R”)/Other increased4.6% . -
While core organic net sales in Value-Added Products decreased
19.5% , Value-Added Products increased as a percentage of our overall net sales mix from43% in the prior year to53% in the current year.
Gross Profit
-
Gross profit was
, a decrease of$1.6 billion 33.9% compared to the prior year period. The gross profit margin percentage increased 40 basis points to35.2% due to stronger mix in value-added products overall, largely driven by our recent strategic investments in Multi-Family and related commodity price fluctuations.
Selling, General and Administrative Expenses
-
SG&A was
, a decrease of approximately$1.0 billion , or$28.4 million 2.7% , driven primarily by lower variable compensation due to lower core organic net sales, partially offset by additional expenses from operations acquired within the last twelve months. As a percentage of net sales, total SG&A increased by 740 basis points to22.5% primarily attributable to decreased leverage to net sales.
Interest Expense
-
Interest expense decreased
to$17.7 million , primarily due to a loss on the extinguishment of$53.0 million recognized in the second quarter of 2022, partially offset by higher debt balances and interest rates.$27.4 million
Income Tax Expense
-
Income tax expense was
, compared to$119.4 million in the prior year period, and the effective tax rate in the second quarter decreased 100 basis points year-over-year to$307.9 million 22.8% .
Net Income
-
Net income was
, or$404.6 million earnings per diluted share, compared to net income of$3.16 , or$987.2 million earnings per diluted share, in the same period a year ago. The$5.75 59.0% decrease in net income was primarily driven by a decrease in sales volumes and commodity deflation.
Adjusted Net Income
-
Adjusted net income was
, or$498.4 million adjusted earnings per diluted share, compared to adjusted net income of$3.89 , or$1.07 billion adjusted earnings per diluted share, in the same period a year ago. The$6.26 53.6% decrease in adjusted net income was primarily driven by a decrease in sales volumes and commodity deflation.
Adjusted EBITDA
-
Adjusted EBITDA decreased
49.0% to , primarily driven by lower net sales including a decline in core organic products and commodity deflation.$768.8 million -
Adjusted EBITDA margin declined by 480 basis points from the prior year period to
17.0% primarily from the deleveraging of expenses due to declining commodity prices and Single-Family volumes.
Capital Structure, Leverage, and Liquidity Information
-
For the six months ended June 30, 2023, cash provided by operating activities was
, and cash used in investing activities was$1.0 billion . The Company’s free cash was an inflow of$0.3 billion .$0.8 billion -
Liquidity as of June 30, 2023 was approximately
, consisting of$0.9 billion in net borrowing availability under the revolving credit facility and approximately$0.8 billion of cash on hand.$0.1 billion -
As of June 30, 2023, LTM Adjusted EBITDA was
and net debt was$3.3 billion , resulting in the net debt to LTM Adjusted EBITDA ratio increasing to 1.1x, compared to 0.8x in the prior year period.$3.6 billion -
In the second quarter, the Company repurchased approximately 7.0 million shares of its common stock at an average price of
per share for$103.68 , inclusive of fees and taxes.$722.7 million -
The Company has approximately
remaining on its most recent$0.6 billion share repurchase authorization from April 2023.$1 billion -
Since the inception of its buyback program in August 2021, the Company has repurchased approximately 83.8 million shares of its common stock, or approximately
40.6% of its total shares outstanding, at an average price of per share for a total cost of$67.81 . As of July 28, 2023, shares outstanding were approximately 125 million.$5.7 billion
Operational Excellence Productivity
-
Year to date, the Company has delivered approximately
in productivity savings.$84 million -
The Company believes it can now deliver
to$110 million in productivity savings in 2023.$150 million
2023 Total Company Outlook
For 2023, 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 2023.
-
Net Sales to be in a range of
to$16.8 billion .$17.8 billion -
Gross Profit margin to be in a range of
33% to35% . -
Adjusted EBITDA to be in a range of
to$2.6 billion .$2.9 billion -
Adjusted EBITDA margin to be in a range of
15% to17% .
2023 Full Year Assumptions
The Company’s anticipated 2023 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 down high single-digits to low double-digits, Multi-Family starts up low double-digits, and R&R is projected to be up low-to-mid-single digits.
-
Acquisitions completed within the last twelve months are projected to add net sales growth of
3% to4% . -
Total capital expenditures in the range of
to$400 million .$450 million -
Free cash flow in the range of
to$1.6 billion , assuming average commodity prices in the range of$2.0 billion to$400 /mbf.$450 -
Interest expense in the range of
to$185 million .$205 million -
An effective tax rate of
23.0% to25.0% . -
Depreciation and amortization expenses in the range of
to$550 million , including approximately$600 million of amortization related to intangible assets acquired in the BMC merger. Total depreciation projected to be$160 million , and total amortization projected to be$225 million .$340 million - No change in selling days in 2023 versus 2022.
Conference Call
Builders FirstSource will host a conference call and webcast on Wednesday, August 2, 2023, 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: 800-245-3047 (
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 expected market share gains, 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 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 and debt issuance and refinancing cost 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 and Adjusted net income 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, 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) |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
(in thousands, except per share amounts) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net sales |
|
$ |
4,528,890 |
|
|
$ |
6,926,259 |
|
|
$ |
8,412,204 |
|
|
$ |
12,607,391 |
|
Cost of sales |
|
|
2,933,944 |
|
|
|
4,514,112 |
|
|
|
5,445,858 |
|
|
|
8,362,870 |
|
Gross margin |
|
|
1,594,946 |
|
|
|
2,412,147 |
|
|
|
2,966,346 |
|
|
|
4,244,521 |
|
Selling, general and administrative expenses |
|
|
1,017,874 |
|
|
|
1,046,279 |
|
|
|
1,922,091 |
|
|
|
2,014,847 |
|
Income from operations |
|
|
577,072 |
|
|
|
1,365,868 |
|
|
|
1,044,255 |
|
|
|
2,229,674 |
|
Interest expense, net |
|
|
53,016 |
|
|
|
70,715 |
|
|
|
95,124 |
|
|
|
112,029 |
|
Income before income taxes |
|
|
524,056 |
|
|
|
1,295,153 |
|
|
|
949,131 |
|
|
|
2,117,645 |
|
Income tax expense |
|
|
119,437 |
|
|
|
307,944 |
|
|
|
210,726 |
|
|
|
490,795 |
|
Net income |
|
$ |
404,619 |
|
|
$ |
987,209 |
|
|
$ |
738,405 |
|
|
$ |
1,626,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
3.19 |
|
|
$ |
5.79 |
|
|
$ |
5.59 |
|
|
$ |
9.36 |
|
Diluted |
|
$ |
3.16 |
|
|
$ |
5.75 |
|
|
$ |
5.54 |
|
|
$ |
9.27 |
|
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
126,977 |
|
|
|
170,378 |
|
|
|
132,034 |
|
|
|
173,730 |
|
Diluted |
|
|
128,066 |
|
|
|
171,549 |
|
|
|
133,247 |
|
|
|
175,525 |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) |
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|
|
|
|||||
|
|
Six Months Ended
|
|
|||||
(in thousands) |
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
738,405 |
|
|
$ |
1,626,850 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
275,515 |
|
|
|
229,805 |
|
Deferred income taxes |
|
|
(37,902 |
) |
|
|
(22,627 |
) |
Stock-based compensation expense |
|
|
23,421 |
|
|
|
18,156 |
|
Other non-cash adjustments |
|
|
804 |
|
|
|
29,286 |
|
Changes in assets and liabilities, net of assets acquired and liabilities assumed: |
|
|
|
|
|
|
||
Receivables |
|
|
(179,946 |
) |
|
|
(637,115 |
) |
Inventories |
|
|
77,277 |
|
|
|
(419,560 |
) |
Contract assets |
|
|
(6,815 |
) |
|
|
(63,127 |
) |
Other current assets |
|
|
25,652 |
|
|
|
(6,790 |
) |
Other assets and liabilities |
|
|
(13,815 |
) |
|
|
3,035 |
|
Accounts payable |
|
|
260,972 |
|
|
|
168,144 |
|
Accrued liabilities |
|
|
(113,695 |
) |
|
|
160,794 |
|
Contract liabilities |
|
|
(4,166 |
) |
|
|
40,219 |
|
Net cash provided by operating activities |
|
|
1,045,707 |
|
|
|
1,127,070 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Cash used for acquisitions |
|
|
(90,559 |
) |
|
|
(192,945 |
) |
Purchases of property, plant and equipment |
|
|
(231,110 |
) |
|
|
(119,538 |
) |
Proceeds from sale of property, plant and equipment |
|
|
9,858 |
|
|
|
5,395 |
|
Net cash used in investing activities |
|
|
(311,811 |
) |
|
|
(307,088 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings under revolving credit facility |
|
|
2,801,000 |
|
|
|
3,599,000 |
|
Repayments under revolving credit facility |
|
|
(2,108,000 |
) |
|
|
(3,353,000 |
) |
Proceeds from long-term debt and other loans |
|
|
— |
|
|
|
1,001,500 |
|
Repayments of long-term debt and other loans |
|
|
(2,112 |
) |
|
|
(614,146 |
) |
Payments of debt extinguishment costs |
|
|
— |
|
|
|
(20,672 |
) |
Payments of loan costs |
|
|
(1,897 |
) |
|
|
(15,816 |
) |
Exercise of stock options |
|
|
473 |
|
|
|
434 |
|
Repurchase of common stock |
|
|
(1,414,489 |
) |
|
|
(1,293,700 |
) |
Net cash used in financing activities |
|
|
(725,025 |
) |
|
|
(696,400 |
) |
Net change in cash and cash equivalents |
|
|
8,871 |
|
|
|
123,582 |
|
Cash and cash equivalents at beginning of period |
|
|
80,445 |
|
|
|
42,603 |
|
Cash and cash equivalents at end of period |
|
$ |
89,316 |
|
|
$ |
166,185 |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) |
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|
|
|
|
|
|
|
||
(in thousands, except per share amounts) |
|
June 30,
|
|
|
December 31,
|
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
89,316 |
|
|
$ |
80,445 |
|
Accounts receivable, less allowances of |
|
|
1,618,666 |
|
|
|
1,448,139 |
|
Other receivables |
|
|
245,893 |
|
|
|
234,966 |
|
Inventories, net |
|
|
1,362,250 |
|
|
|
1,426,196 |
|
Contract assets |
|
|
190,514 |
|
|
|
183,700 |
|
Other current assets |
|
|
98,578 |
|
|
|
124,201 |
|
Total current assets |
|
|
3,605,217 |
|
|
|
3,497,647 |
|
Property, plant and equipment, net |
|
|
1,676,244 |
|
|
|
1,567,631 |
|
Operating lease right-of-use assets, net |
|
|
483,991 |
|
|
|
485,704 |
|
Goodwill |
|
|
3,499,819 |
|
|
|
3,456,854 |
|
Intangible assets, net |
|
|
1,412,377 |
|
|
|
1,550,944 |
|
Other assets, net |
|
|
55,464 |
|
|
|
36,380 |
|
Total assets |
|
$ |
10,733,112 |
|
|
$ |
10,595,160 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
1,061,965 |
|
|
$ |
803,479 |
|
Accrued liabilities |
|
|
599,623 |
|
|
|
739,009 |
|
Contract liabilities |
|
|
190,262 |
|
|
|
193,178 |
|
Current portion of operating lease liabilities |
|
|
99,692 |
|
|
|
100,758 |
|
Current maturities of long-term debt |
|
|
4,314 |
|
|
|
6,355 |
|
Total current liabilities |
|
|
1,955,856 |
|
|
|
1,842,779 |
|
Noncurrent portion of operating lease liabilities |
|
|
409,231 |
|
|
|
404,463 |
|
Long-term debt, net of current maturities, discounts and issuance costs |
|
|
3,670,400 |
|
|
|
2,977,842 |
|
Deferred income taxes |
|
|
231,758 |
|
|
|
269,660 |
|
Other long-term liabilities |
|
|
123,807 |
|
|
|
137,850 |
|
Total liabilities |
|
|
6,391,052 |
|
|
|
5,632,594 |
|
Commitments and contingencies (Note 11) |
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
1,250 |
|
|
|
1,389 |
|
Additional paid-in capital |
|
|
4,249,053 |
|
|
|
4,257,667 |
|
Retained earnings |
|
|
91,757 |
|
|
|
703,510 |
|
Total stockholders' equity |
|
|
4,342,060 |
|
|
|
4,962,566 |
|
Total liabilities and stockholders' equity |
|
$ |
10,733,112 |
|
|
$ |
10,595,160 |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Reconciliation of Adjusted Non-GAAP Financial Measures to their GAAP Equivalents (unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended |
|
|
Six Months Ended |
|
|
Twelve Months Ended |
|
|||||||||||
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||||||||||
(in millions) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|||||
Reconciliation to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP net income |
$ |
404.6 |
|
|
$ |
987.2 |
|
|
$ |
738.4 |
|
|
$ |
1,626.9 |
|
|
$ |
1,860.9 |
|
Acquisition and related expense |
|
21.9 |
|
|
|
13.5 |
|
|
|
27.9 |
|
|
|
25.8 |
|
|
|
50.1 |
|
Technology implementation expense |
|
16.0 |
|
|
|
2.1 |
|
|
|
26.1 |
|
|
|
4.5 |
|
|
|
50.6 |
|
Debt issuance and refinancing cost (1) |
|
0.7 |
|
|
|
27.4 |
|
|
|
0.7 |
|
|
|
27.4 |
|
|
|
0.7 |
|
Amortization expense |
|
84.8 |
|
|
|
70.1 |
|
|
|
169.4 |
|
|
|
135.8 |
|
|
|
336.2 |
|
Tax-effect of adjustments to net income |
|
(29.6 |
) |
|
|
(27.1 |
) |
|
|
(53.8 |
) |
|
|
(46.4 |
) |
|
|
(105.0 |
) |
Adjusted net income |
$ |
498.4 |
|
|
$ |
1,073.2 |
|
|
$ |
908.7 |
|
|
$ |
1,774.0 |
|
|
$ |
2,193.5 |
|
Weighted average diluted common shares |
|
128.1 |
|
|
|
171.5 |
|
|
|
133.2 |
|
|
|
175.5 |
|
|
|
|
|
Diluted adjusted net income per share: |
$ |
3.89 |
|
|
$ |
6.26 |
|
|
$ |
6.82 |
|
|
$ |
10.11 |
|
|
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation expense |
$ |
54.1 |
|
|
$ |
47.8 |
|
|
$ |
106.1 |
|
|
$ |
94.0 |
|
|
$ |
206.6 |
|
Interest expense, net |
|
52.3 |
|
|
|
43.3 |
|
|
|
94.4 |
|
|
|
84.6 |
|
|
|
180.8 |
|
Income tax expense |
|
149.0 |
|
|
|
335.0 |
|
|
|
264.5 |
|
|
|
537.2 |
|
|
|
647.4 |
|
Stock compensation expense |
|
12.4 |
|
|
|
9.3 |
|
|
|
23.4 |
|
|
|
18.2 |
|
|
|
36.6 |
|
Other management-identified adjustments (2) |
|
2.6 |
|
|
|
(1.3 |
) |
|
|
3.4 |
|
|
|
(0.2 |
) |
|
|
4.4 |
|
Adjusted EBITDA |
$ |
768.8 |
|
|
$ |
1,507.3 |
|
|
$ |
1,400.5 |
|
|
$ |
2,507.8 |
|
|
$ |
3,269.3 |
|
Adjusted EBITDA margin |
|
17.0 |
% |
|
|
21.8 |
% |
|
|
16.6 |
% |
|
|
19.9 |
% |
|
|
17.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Costs associated with issuing and extinguishing long term debt in 2021 and 2022. |
|||||||||||||||||||
(2) Primarily relates to severance, gain on sale of assets, and other one-time costs. |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Financial Data (unaudited) |
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
June 30, |
|
|
June 30, |
|
||||||||||
(in millions, except per share amounts) |
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net sales |
$ |
4,528.9 |
|
|
$ |
6,926.3 |
|
|
$ |
8,412.2 |
|
|
$ |
12,607.4 |
|
Cost of sales |
|
2,934.0 |
|
|
|
4,514.2 |
|
|
|
5,445.9 |
|
|
|
8,362.9 |
|
Gross margin |
|
1,594.9 |
|
|
|
2,412.1 |
|
|
|
2,966.3 |
|
|
|
4,244.5 |
|
Gross margin % |
|
35.2 |
% |
|
|
34.8 |
% |
|
|
35.3 |
% |
|
|
33.7 |
% |
Adjusted SG&A/Other (excluding depreciation and amortization) as a % of sales (1) |
|
18.3 |
% |
|
|
13.0 |
% |
|
|
18.7 |
% |
|
|
13.8 |
% |
Adjusted EBITDA |
|
768.8 |
|
|
|
1,507.3 |
|
|
|
1,400.5 |
|
|
|
2,507.8 |
|
Adjusted EBITDA margin % |
|
17.0 |
% |
|
|
21.8 |
% |
|
|
16.6 |
% |
|
|
19.9 |
% |
Depreciation expense |
|
(54.1 |
) |
|
|
(47.8 |
) |
|
|
(106.1 |
) |
|
|
(94.0 |
) |
Interest expense, net of debt issuance cost and refinancing |
|
(52.3 |
) |
|
|
(43.3 |
) |
|
|
(94.4 |
) |
|
|
(84.6 |
) |
Income tax expense |
|
(149.0 |
) |
|
|
(335.0 |
) |
|
|
(264.5 |
) |
|
|
(537.2 |
) |
Other adjustments |
|
(15.0 |
) |
|
|
(8.0 |
) |
|
|
(26.8 |
) |
|
|
(18.0 |
) |
Adjusted net income |
$ |
498.4 |
|
|
$ |
1,073.2 |
|
|
$ |
908.7 |
|
|
$ |
1,774.0 |
|
Basic adjusted net income per share: |
$ |
3.93 |
|
|
$ |
6.30 |
|
|
$ |
6.88 |
|
|
$ |
10.21 |
|
Diluted adjusted net income per share: |
$ |
3.89 |
|
|
$ |
6.26 |
|
|
$ |
6.82 |
|
|
$ |
10.11 |
|
Weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
127.0 |
|
|
|
170.4 |
|
|
|
132.0 |
|
|
|
173.7 |
|
Diluted |
|
128.1 |
|
|
|
171.5 |
|
|
|
133.2 |
|
|
|
175.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Adjusted SG&A and other as a percentage of sales is defined as GAAP SG&A less depreciation and amortization, stock compensation, acquisition, integration and other expenses. |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Interest Reconciliation (unaudited) |
|||||||||||||||
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
June 30, 2023 |
|
|
June 30, 2023 |
|
||||||||||
(in millions) |
Interest
|
|
|
Net Debt
|
|
|
Interest
|
|
|
Net Debt
|
|
||||
2032 Unsecured notes @ |
$ |
13.8 |
|
|
$ |
1,300.0 |
|
|
$ |
27.6 |
|
|
$ |
1,300.0 |
|
2032 Unsecured notes @ |
|
11.2 |
|
|
|
700.0 |
|
|
|
22.3 |
|
|
|
700.0 |
|
2030 Unsecured notes @ |
|
6.9 |
|
|
|
550.0 |
|
|
|
13.8 |
|
|
|
550.0 |
|
2027 Secured notes @ |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Revolving credit facility @ |
|
14.2 |
|
|
|
957.0 |
|
|
|
18.4 |
|
|
|
957.0 |
|
Amortization of debt issuance costs, discount and premium |
|
1.2 |
|
|
|
- |
|
|
|
2.3 |
|
|
|
- |
|
Finance leases and other finance obligations |
|
5.1 |
|
|
|
197.5 |
|
|
|
10.0 |
|
|
|
197.5 |
|
Debt issuance and refinancing cost |
|
0.7 |
|
|
|
- |
|
|
|
0.7 |
|
|
|
- |
|
Cash |
|
- |
|
|
|
(89.3 |
) |
|
|
- |
|
|
|
(89.3 |
) |
Total |
$ |
53.1 |
|
|
$ |
3,615.2 |
|
|
$ |
95.1 |
|
|
$ |
3,615.2 |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||
(in millions) |
June 30, 2023 |
|
|
June 30, 2023 |
|
||
Free Cash Flow |
|
|
|||||
Operating activities |
$ |
391.3 |
|
|
$ |
1,045.7 |
|
Less: Capital expenditures, net of proceeds |
|
(121.4 |
) |
|
|
(221.3 |
) |
Free cash flow |
$ |
269.9 |
|
|
$ |
824.4 |
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Sales by Product Category (unaudited) |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
|
Three Months Ended June 30, |
|
|
|||||||||||||||||
|
2023 |
|
|
2022 |
|
|
|
|
|
|||||||||||
(in millions) |
Net Sales |
|
|
% of
|
|
|
Net Sales |
|
|
% of
|
|
|
% Change |
|
|
|||||
Manufactured products |
$ |
1,288.1 |
|
|
|
28.4 |
% |
|
$ |
1,678.6 |
|
|
|
24.2 |
% |
|
|
-23.3 |
% |
|
Windows, doors & millwork |
|
1,105.2 |
|
|
|
24.4 |
% |
|
|
1,218.3 |
|
|
|
17.6 |
% |
|
|
-9.3 |
% |
|
Value-added products |
|
2,393.3 |
|
|
|
52.8 |
% |
|
|
2,896.9 |
|
|
|
41.8 |
% |
|
|
-17.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Specialty building products & services |
|
1,076.6 |
|
|
|
23.8 |
% |
|
|
1,193.2 |
|
|
|
17.2 |
% |
|
|
-9.8 |
% |
|
Lumber & lumber sheet goods |
|
1,059.0 |
|
|
|
23.4 |
% |
|
|
2,836.2 |
|
|
|
40.9 |
% |
|
|
-62.7 |
% |
|
Total net sales |
$ |
4,528.9 |
|
|
|
100.0 |
% |
|
$ |
6,926.3 |
|
|
|
100.0 |
% |
|
|
-34.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Six Months Ended June 30, |
|
|
|||||||||||||||||
|
2023 |
|
|
2022 |
|
|
|
|
|
|||||||||||
(in millions) |
Net Sales |
|
|
% of
|
|
|
Net Sales |
|
|
% of
|
|
|
% Change |
|
|
|||||
Manufactured products |
$ |
2,400.5 |
|
|
|
28.5 |
% |
|
$ |
3,032.4 |
|
|
|
24.1 |
% |
|
|
-20.8 |
% |
|
Windows, doors & millwork |
|
2,146.3 |
|
|
|
25.5 |
% |
|
|
2,244.2 |
|
|
|
17.8 |
% |
|
|
-4.4 |
% |
|
Value-added products |
|
4,546.8 |
|
|
|
54.0 |
% |
|
|
5,276.6 |
|
|
|
41.9 |
% |
|
|
-13.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Specialty building products & services |
|
1,930.8 |
|
|
|
23.0 |
% |
|
|
2,158.1 |
|
|
|
17.1 |
% |
|
|
-10.5 |
% |
|
Lumber & lumber sheet goods |
|
1,934.6 |
|
|
|
23.0 |
% |
|
|
5,172.7 |
|
|
|
41.0 |
% |
|
|
-62.6 |
% |
|
Total net sales |
$ |
8,412.2 |
|
|
|
100.0 |
% |
|
$ |
12,607.4 |
|
|
|
100.0 |
% |
|
|
-33.3 |
% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802568927/en/
Michael Neese
SVP, Investor Relations
Builders FirstSource, Inc.
investorrelations@bldr.com
Source: Builders FirstSource, Inc.
FAQ
What is the net sales reported by Builders FirstSource, Inc. (NYSE: BLDR)?
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