Net sales of $4.5 billion, a decrease of
21.3% Net income of $451.5 million Earnings per
diluted share of $3.59 per share Adjusted EBITDA of $813.3
million at a margin of 17.9% Repurchased 1.7 million shares
in Q3; $1.6 billion of share repurchases YTD
Builders FirstSource, Inc. (NYSE: BLDR) today reported
its results for the third quarter ended September 30, 2023.
Third Quarter 2023
Highlights All Year-Over-Year Comparisons Unless
Otherwise Noted:
- Net sales of $4.5 billion, a 21.3% decrease primarily driven by
a weaker housing market and commodity deflation, partially offset
by growth from acquisitions.
- Gross profit margin percentage decreased 10 basis points to
34.9%, primarily due to core organic margin normalization and
partially offset by Multi-Family strength.
- Net income decreased 38.8% to $451.5 million, or $3.59 per
diluted share compared to $4.72 in the prior year period. Adjusted
net income decreased 34.4% to $533.6 million, or $4.24 per diluted
share compared to $5.20 in the prior year period. Net income and
adjusted net income per diluted share declined 23.9% and 18.5%,
respectively.
- Adjusted EBITDA decreased 30.6% to $813.3 million, primarily
driven by lower net sales. Adjusted EBITDA margin declined by 240
basis points to 17.9% attributable to lower net sales and reduced
operating leverage.
- Cash provided by operating activities was $649.5 million, down
$851.3 million compared to the prior year period, while free cash
flow was $537.8 million, down $879.4 million compared to the prior
year period.
- Strong quarter-end balance sheet with liquidity of $1.1 billion
and a net debt to LTM Adjusted EBITDA ratio of 1.1x.
- Repurchased 1.7 million shares of common stock at an average
price of $136.22 for $224.9 million, inclusive of fees and taxes.
Year to date, the Company has repurchased 16.2 million shares of
its common stock at an average price of $97.43 per share for $1.6
billion, inclusive of fees and taxes. The Company has reduced
shares outstanding by 11.2% year to date.
- The Company completed two acquisitions during the quarter. Year
to date, the Company has completed five acquisitions with aggregate
prior year sales of approximately $350 million.
“Despite industry volatility and macroeconomic headwinds, our
resilient third quarter results reflect the strength of our
value-added portfolio, broad footprint, and operational
initiatives,” commented Dave Rush, CEO of Builders FirstSource. “We
remain confident in our 2023 outlook as we focus on being the best
partner for our customers and executing our strategy to drive
long-term growth.”
Mr. Rush continued, “As we look toward 2024, we will maintain
our best-in-class customer service, offer an attractive product
mix, and launch our BFS Digital Tools to make the building process
faster, more efficient, and more affordable. We are committed to
investing in automation and process improvements, which will
continue to generate productivity savings, help solve the labor
issues currently facing our customers, and solidify us as a trusted
partner.”
Peter Jackson, CFO of Builders FirstSource, added, “Our third
quarter results demonstrate the effectiveness of our operating
model in the face of macro volatility. We are maintaining a healthy
balance sheet and prudently deploying capital to the highest return
opportunities, which included acquisitions and share repurchases
during the third quarter. We are leveraging our sustainable
competitive advantages and strong financial position to drive
future growth and value creation for our shareholders.”
Third Quarter 2023 Financial
Performance Highlights All Year-Over-Year Comparisons
Unless Otherwise Noted:
Net Sales
- Net sales of $4.5 billion, a 21.3% decrease driven by a decline
in core organic net sales of 13.5%, commodity deflation of 9.1%,
and one fewer selling day having a negative impact of 1.6%,
partially offset by growth from acquisitions of 2.9%.
- Driving the core organic net sales decline of 13.5%,
Single-Family declined 19.2%, while Multi-Family increased 6.4%,
and Repair and Remodel (“R&R”)/Other increased 1.4%.
Gross Profit
- Gross profit was $1.6 billion, a decrease of 21.5% compared to
the prior year period. The gross profit margin percentage decrease
of 10 basis points to 34.9% was primarily driven by core organic
margin normalization and partially offset by Multi-Family
strength.
Selling, General and Administrative Expenses
- SG&A was $939.5 million, a decrease of $60.7 million, or
6.1%, primarily driven 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 330 basis
points to 20.7%, primarily attributable to reduced operating
leverage.
Interest Expense
- Interest expense increased $6.1 million to $50.2 million,
primarily due to higher debt balances and interest rates.
Income Tax Expense
- Income tax expense was $140.0 million, compared to $232.4
million in the prior year period, and the effective tax rate in the
third quarter decreased 20 basis points year-over-year to
23.7%.
Net Income
- Net income was $451.5 million, or $3.59 earnings per diluted
share, compared to net income of $738.0 million, or $4.72 earnings
per diluted share, in the same period a year ago. The 38.8%
decrease in net income was primarily driven by lower net
sales.
Adjusted Net Income
- Adjusted net income was $533.6 million, a decrease of 34.4%
primarily driven by lower net sales.
Adjusted Earnings Per Diluted Share
- Adjusted earnings per diluted share was $4.24, compared to
$5.20 adjusted earnings per diluted share in the same period a year
ago. The 18.5% decrease was primarily driven by lower net sales,
partially offset by share repurchases.
Adjusted EBITDA
- Adjusted EBITDA decreased 30.6% to $813.3 million, primarily
driven by lower net sales.
- Adjusted EBITDA margin declined by 240 basis points from the
prior year period to 17.9%, primarily due to lower net sales and
reduced operating leverage.
Capital Structure, Leverage, and
Liquidity Information
- For the nine months ended September 30, 2023, cash provided by
operating activities was $1.7 billion, and cash used in investing
activities was $0.5 billion. The Company’s free cash flow was $1.4
billion.
- Liquidity as of September 30, 2023 was approximately $1.1
billion, consisting of $1.0 billion in net borrowing availability
under the revolving credit facility and $0.1 billion of cash on
hand.
- As of September 30, 2023, LTM Adjusted EBITDA was $2.9 billion
and net debt was $3.3 billion, resulting in the net debt to LTM
Adjusted EBITDA ratio increasing to 1.1x, compared to 0.7x in the
prior year period.
- In the third quarter, the Company repurchased 1.7 million
shares of its common stock at an average price of $136.22 per share
for $224.9 million, inclusive of fees and taxes. Year to date, the
Company has repurchased 16.2 million shares of its common stock at
an average price of $97.43 per share for $1.6 billion, inclusive of
fees and taxes. The Company has reduced shares outstanding by 11.2%
year to date.
- The Company has $0.4 billion remaining on its most recent $1.0
billion share repurchase authorization approved in April 2023.
- Since the inception of its buyback program in August 2021, the
Company has repurchased 85.5 million shares of its common stock, or
41.4% of its total shares outstanding, at an average price of
$69.13 per share for a total cost of $5.9 billion. As of September
30, 2023, shares outstanding were 123.4 million.
Operational Excellence
Productivity
- Year to date, the Company has delivered approximately $138
million in productivity savings related to operations excellence
and supply chain initiatives.
- The Company believes it can deliver $140 million to $160
million in productivity savings in 2023.
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 $16.8 billion to $17.1
billion.
- Gross Profit margin to be in a range of 34% to 35%.
- Adjusted EBITDA to be in a range of $2.7 billion to $2.8
billion.
- Adjusted EBITDA margin to be in a range of 15.8% to 16.7%.
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 low double-digits to high single-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 2% to 3%.
- Total capital expenditures in the range of $400 million to $450
million.
- Free cash flow in the range of $1.8 billion to $2.0 billion,
assuming average commodity prices in the range of $400 to $425 per
thousand board feet (mbf).
- Interest expense in the range of $190 million to $200
million.
- An effective tax rate of 23.0% to 25.0%.
- Depreciation and amortization expenses in the range of $550
million to $600 million, including approximately $160 million of
amortization related to intangible assets acquired in the BMC
merger. Total depreciation projected to be $225 million, and total
amortization projected to be $340 million.
- No change in selling days in 2023 versus 2022.
Conference Call
Builders FirstSource will host a conference call and webcast on
Wednesday, November 1, 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: 800-225-9448 (U.S. and Canada)
and 203-518-9708 (international), Conference ID: BLDRQ323. A replay
of the call will be available at 12:00 p.m. Central Time through
Wednesday, November 8, 2023. To access the replay, please dial
800-839-8317 (U.S. and Canada) or 402-220-6070 (international). The
live webcast and archived replay can also be accessed on the
Company's investor relations website at investors.bldr.com under
the Events and Presentations section. The online archive of the
webcast will be available for approximately 90 days.
Upcoming Events
Management will participate in investor meetings at the Baird
Industrial Conference in Chicago on Wednesday, November 8, 2023,
and at the Stephens Annual Investment Conference in Nashville on
Wednesday, November 15, 2023.
The Company will host an Investor Day and high-speed truss
facility tour in Atlanta on Tuesday, December 5, 2023, with the
formal schedule beginning at 8:30 a.m. Eastern Time. The event will
feature presentations by the executive management team and multiple
Q&A sessions. A live webcast and an archived copy of the
webcast will be made available on https://investors.bldr.com.
About Builders
FirstSource
Headquartered in Irving, Texas, Builders FirstSource is the
largest U.S. supplier of building products, prefabricated
components, and value-added services to the professional market
segment for new residential construction and repair and remodeling.
We provide customers an integrated homebuilding solution, offering
manufacturing, supply, delivery, and installation of a full range
of structural and related building products. We operate in 42
states with over 570 locations and have a market presence in 47 of
the top 50 and 88 of the top 100 MSAs, providing geographic
diversity and balanced end market exposure. We service customers
from strategically located distribution and manufacturing
facilities (some of which are co-located) that produce value-added
products such as roof and floor trusses, wall panels, stairs, vinyl
windows, custom millwork, and pre-hung doors. Builders FirstSource
also distributes dimensional lumber and lumber sheet goods,
millwork, windows, interior and exterior doors, and other specialty
building products. www.bldr.com
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
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)
Three Months Ended September
30,
Nine Months Ended September
30,
(in thousands, except per share
amounts)
2023
2022
2023
2022
Net sales
$
4,534,264
$
5,761,463
$
12,946,468
$
18,368,853
Cost of sales
2,953,162
3,746,731
8,399,020
12,109,601
Gross margin
1,581,102
2,014,732
4,547,448
6,259,252
Selling, general and administrative
expenses
939,474
1,000,204
2,861,565
3,015,051
Income from operations
641,628
1,014,528
1,685,883
3,244,201
Interest expense, net
50,193
44,111
145,317
156,140
Income before income taxes
591,435
970,417
1,540,566
3,088,061
Income tax expense
139,978
232,410
350,704
723,205
Net income
$
451,457
$
738,007
$
1,189,862
$
2,364,856
Net income per share:
Basic
$
3.62
$
4.75
$
9.19
$
14.12
Diluted
$
3.59
$
4.72
$
9.10
$
13.98
Weighted average common shares:
Basic
124,577
155,309
129,521
167,522
Diluted
125,792
156,493
130,734
169,111
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
(unaudited)
Nine Months Ended September
30,
(in thousands)
2023
2022
Cash flows from operating activities:
Net income
$
1,189,862
$
2,364,856
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
416,126
355,472
Deferred income taxes
(72,688
)
(57,183
)
Stock-based compensation expense
35,549
26,652
Other non-cash adjustments
(4,284
)
29,213
Changes in assets and liabilities, net of
assets acquired and liabilities assumed:
Receivables
(178,955
)
(91,485
)
Inventories
115,575
(61,926
)
Contract assets
(4,287
)
(32,596
)
Other current assets
23,297
(2,982
)
Other assets and liabilities
(16,392
)
5,307
Accounts payable
230,576
(31,260
)
Accrued liabilities
(24,343
)
99,778
Contract liabilities
(14,863
)
24,020
Net cash provided by operating
activities
1,695,173
2,627,866
Cash flows from investing activities:
Cash used for acquisitions
(142,906
)
(619,551
)
Purchases of property, plant and
equipment
(376,596
)
(205,241
)
Proceeds from sale of property, plant and
equipment
43,406
7,461
Net cash used in investing activities
(476,096
)
(817,331
)
Cash flows from financing activities:
Borrowings under revolving credit
facility
4,025,000
5,267,000
Repayments under revolving credit
facility
(3,607,000
)
(5,405,000
)
Proceeds from long-term debt and other
loans
—
1,001,500
Repayments of long-term debt and other
loans
(3,190
)
(615,082
)
Payments of debt extinguishment costs
—
(20,672
)
Payments of loan costs
(1,897
)
(16,797
)
Exercise of stock options
606
440
Repurchase of common stock
(1,624,945
)
(1,979,545
)
Net cash used in financing activities
(1,211,426
)
(1,768,156
)
Net change in cash and cash
equivalents
7,651
42,379
Cash and cash equivalents at beginning of
period
80,445
42,603
Cash and cash equivalents at end of
period
$
88,096
$
84,982
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEET
(unaudited)
(in thousands, except per share
amounts)
September 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
88,096
$
80,445
Accounts receivable, less allowances of
$47,147 and $67,980, respectively
1,618,107
1,448,139
Other receivables
247,431
234,966
Inventories, net
1,331,512
1,426,196
Contract assets
187,987
183,700
Other current assets
100,974
124,201
Total current assets
3,574,107
3,497,647
Property, plant and equipment, net
1,763,153
1,567,631
Operating lease right-of-use assets,
net
489,462
485,704
Goodwill
3,521,134
3,456,854
Intangible assets, net
1,348,779
1,550,944
Other assets, net
40,122
36,380
Total assets
$
10,736,757
$
10,595,160
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
1,032,093
$
803,479
Accrued liabilities
711,905
739,009
Contract liabilities
180,576
193,178
Current portion of operating lease
liabilities
98,211
100,758
Current maturities of long-term debt
3,897
6,355
Total current liabilities
2,026,682
1,842,779
Noncurrent portion of operating lease
liabilities
416,864
404,463
Long-term debt, net of current maturities,
discounts and issuance costs
3,395,349
2,977,842
Deferred income taxes
196,972
269,660
Other long-term liabilities
120,205
137,850
Total liabilities
6,156,072
5,632,594
Commitments and contingencies (Note
11)
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000
shares authorized; zero shares issued and outstanding
—
—
Common stock, $0.01 par value, 300,000
shares authorized; 123,400 and 138,864 shares issued and
outstanding at September 30, 2023, and December 31, 2022,
respectively
1,234
1,389
Additional paid-in capital
4,261,107
4,257,667
Retained earnings
318,344
703,510
Total stockholders' equity
4,580,685
4,962,566
Total liabilities and stockholders'
equity
$
10,736,757
$
10,595,160
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
Reconciliation of Adjusted
Non-GAAP Financial Measures to their GAAP Equivalents
(unaudited)
Three Months Ended
Nine Months Ended
Twelve
Months
Ended
September 30,
September 30,
September 30,
(in millions)
2023
2022
2023
2022
2023
Reconciliation to Adjusted
EBITDA:
GAAP net income
$
451.5
$
738.0
$
1,189.9
$
2,364.9
$
1,574.4
Acquisition and related expense
(1.0
)
16.2
26.9
41.7
33.0
Technology implementation expense
25.5
7.1
51.6
11.7
69.0
Debt issuance and refinancing cost (1)
-
-
0.7
27.4
0.7
Amortization expense
83.5
76.7
252.9
212.5
343.0
Tax-effect of adjustments to net
income
(25.9
)
(24.0
)
(79.7
)
(70.4
)
(107.0
)
Adjusted net income
$
533.6
$
814.0
$
1,442.3
$
2,587.8
$
1,913.1
Weighted average diluted common shares
125.8
156.5
130.7
169.1
Diluted adjusted net income per share:
$
4.24
$
5.20
$
11.03
$
15.30
Reconciling items:
Depreciation expense
$
57.1
$
49.0
$
163.2
$
143.0
$
214.8
Interest expense, net
50.2
44.1
144.6
128.7
186.8
Income tax expense
165.9
256.4
430.4
793.6
557.0
Stock compensation expense
12.1
8.5
35.5
26.7
40.2
Other management-identified adjustments
(2)
(5.6
)
(0.2
)
(2.2
)
(0.1
)
(1.2
)
Adjusted EBITDA
$
813.3
$
1,171.8
$
2,213.8
$
3,679.7
$
2,910.7
Adjusted EBITDA margin
17.9
%
20.3
%
17.1
%
20.0
%
16.8
%
(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
Nine Months Ended
September 30,
September 30,
(in millions, except per share
amounts)
2023
2022
2023
2022
Net sales
$
4,534.3
$
5,761.5
$
12,946.5
$
18,368.9
Cost of sales
2,953.2
3,746.8
8,399.1
12,109.6
Gross margin
1,581.1
2,014.7
4,547.4
6,259.3
Gross margin %
34.9
%
35.0
%
35.1
%
34.1
%
Adjusted SG&A/Other (excluding
depreciation and amortization) as a % of sales (1)
16.8
%
14.6
%
18.0
%
14.0
%
Adjusted EBITDA
813.3
1,171.8
2,213.8
3,679.7
Adjusted EBITDA margin %
17.9
%
20.3
%
17.1
%
20.0
%
Depreciation expense
(57.1
)
(49.0
)
(163.2
)
(143.0
)
Interest expense, net of debt issuance
cost and refinancing
(50.2
)
(44.1
)
(144.6
)
(128.7
)
Income tax expense
(165.9
)
(256.4
)
(430.4
)
(793.6
)
Other adjustments
(6.5
)
(8.3
)
(33.3
)
(26.6
)
Adjusted net income
$
533.6
$
814.0
$
1,442.3
$
2,587.8
Basic adjusted net income per share:
$
4.28
$
5.24
$
11.14
$
15.45
Diluted adjusted net income per share:
$
4.24
$
5.20
$
11.03
$
15.30
Weighted average common shares
Basic
124.6
155.3
129.5
167.5
Diluted
125.8
156.5
130.7
169.1
(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
Nine Months Ended
September 30, 2023
September 30, 2023
(in millions)
Interest Expense
Net Debt Outstanding
Interest Expense
Net Debt Outstanding
2032 Unsecured notes @ 4.25%
$
13.8
$
1,300.0
$
41.4
$
1,300.0
2032 Unsecured notes @ 6.375%
11.2
700.0
33.5
700.0
2030 Unsecured notes @ 5.00%
6.9
550.0
20.6
550.0
2027 Secured notes @ 6.75%
-
-
-
-
Revolving credit facility @ 6.90% weighted
average interest rate
12.6
682.0
31.0
682.0
Amortization of debt issuance costs,
discount and premium
1.2
-
3.5
-
Finance leases and other finance
obligations
4.8
196.3
14.8
196.3
Debt issuance and refinancing cost
-
-
0.7
-
Cash
-
(88.1
)
-
(88.1
)
Total
$
50.5
$
3,340.2
$
145.5
$
3,340.2
Three Months Ended
Nine Months Ended
(in millions)
September 30, 2023
September 30, 2023
Free Cash Flow
Operating activities
$
649.5
$
1,695.2
Less: Capital expenditures, net of
proceeds
(111.7
)
(333.0
)
Free cash flow
$
537.8
$
1,362.2
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
Sales by Product
Category
(unaudited)
Three Months Ended September
30,
2023
2022
(in millions)
Net Sales
% of Net Sales
Net Sales
% of Net Sales
% Change
Manufactured products
$
1,197.9
26.4
%
$
1,501.0
26.1
%
-20.2
%
Windows, doors & millwork
1,102.1
24.3
%
1,292.8
22.4
%
-14.8
%
Value-added products
2,300.0
50.7
%
2,793.8
48.5
%
-17.7
%
Specialty building products &
services
1,083.8
23.9
%
1,150.5
20.0
%
-5.8
%
Lumber & lumber sheet goods
1,150.5
25.4
%
1,817.2
31.5
%
-36.7
%
Total net sales
$
4,534.3
100.0
%
$
5,761.5
100.0
%
-21.3
%
Nine Months Ended September
30,
2023
2022
(in millions)
Net Sales
% of Net Sales
Net Sales
% of Net Sales
% Change
Manufactured products
$
3,592.3
27.7
%
$
4,533.0
24.6
%
-20.8
%
Windows, doors & millwork
3,242.7
25.1
%
3,537.0
19.3
%
-8.3
%
Value-added products
6,835.0
52.8
%
8,070.0
43.9
%
-15.3
%
Specialty building products &
services
3,030.2
23.4
%
3,309.2
18.0
%
-8.4
%
Lumber & lumber sheet goods
3,081.3
23.8
%
6,989.7
38.1
%
-55.9
%
Total net sales
$
12,946.5
100.0
%
$
18,368.9
100.0
%
-29.5
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101002003/en/
Heather Kos SVP, Investor Relations Builders FirstSource, Inc.
investorrelations@bldr.com
Builders FirstSource (NYSE:BLDR)
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