Builders FirstSource Inc.’s Net Sales Decrease by 2.9% in Q4

February 24th, 2020 by Emmariah Holcomb

Builders FirstSource, Inc. (BFS) recently reported its results for its fourth quarter and full year, which highlighted both its financial improvements, like its sales volume, and areas to work on. The fourth quarter and full year ended December 31, 2019, according to the company.

According to its report, BFS’s net sales for the quarter were $1.8 billion. This showed a 2.9% decrease, which represents $52.4 million. Meanwhile, its sales volume grew by an estimated 7.7% with improvement seen across all three customer segments, led by an 8.7% volume increase in our value-added product categories.

“We delivered another quarter of strong results to end 2019 with a solid foundation to further build on our record of success. Continued focus on our operational excellence initiatives contributed to a robust fourth quarter gross margin, while our full year gross margin improved 230 basis points, allowing us to achieve record annual Adjusted EBITDA of $516 million,” said Chad Crow, BFS CEO.

Sales volume, excluding commodity deflation, grew by 7.7% and its single-family end market grew by an estimated 7.5%, according to the report. BFS’ repair and remodel category grew by 6.8% and its multi-family improved by 13.3%. Sales volume in its value-added product categories grew by 8.7%, including 10.7% in manufactured products and 6.9% in its windows, doors and millwork categories, according to the report.

“Our team’s ability to drive profitable growth while generating cash through working capital efficiency validates the strength of our strategic initiatives to produce meaningful value creation,” said Peter Jackson, BFS chief financial officer.

The company’s net income resulted in $221.8 million, or $1.90 per diluted share, when compared to $205.2 million, or $1.76 per diluted share, in the prior year’s period. This represents an increase of $0.14 per diluted share, or 8.0%.

“We are excited about our plans to drive greater value through our operational excellence initiatives as well as capitalizing on a strong economy and steady growth in the single family housing market,” said Jackson.

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