UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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(Exact name of Registrant as Specified in Its Charter)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 8, 2022, Builders FirstSource, Inc. issued the news release attached hereto as Exhibit 99.1 reporting its financial results for the three and nine months ended September 30, 2022.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description |
99.1 |
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104 |
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
All of the information included in Items 2.02 and 9.01 of this report and Exhibit 99.1 hereto is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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BUILDERS FIRSTSOURCE, INC. |
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Date: |
November 8, 2022 |
By: |
/s/ Timothy D. Johnson |
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Timothy D. Johnson, Executive Vice President, General Counsel and Corporate Secretary |
For Immediate Release
Builders FirstSource Reports Third Quarter 2022 Results
Net sales increased 4.6% to $5.8 billion
Core Organic Sales Growth of 6.9%
Net income increased 20.4% to $738.0 million
Earnings per diluted share increased 58.4% to $4.72
Adjusted EBITDA increased 20.1% to $1.2 billion
Repurchased $658.2 million of common shares
Completed four tuck-in acquisitions since the end of June
November 8, 2022 (Dallas, TX) – Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the third quarter ended September 30, 2022.
Third Quarter 2022 BFS Highlights
All Year-Over-Year Comparisons Unless Otherwise Noted:
“Our strong third quarter results reflect the fundamental strengths of our business, including the value-added products and solutions that resonate with our customers, and our consistent execution,” commented Dave Flitman, President and CEO of Builders FirstSource. “We are winning new business and strengthening existing customer relationships by providing customers individualized solutions and excellent service, which make us a partner of choice. We delivered a 6.9% increase in core organic sales, including nearly 20% growth in our higher margin value-added products. That performance, combined with continued investments in our core operations and relentless focus on cost controls and productivity, helped us to produce record Adjusted EBITDA of $1.2 billion during the quarter, an increase of approximately 20% versus the third quarter of last year. While we have begun to experience increasing macro headwinds, our leading position in the market, focus on innovation and prudent capital allocation have positioned us to succeed in any environment. I am confident that we will continue to deliver on our strategic pillars given the skill and dedication of our team members.”
1
Mr. Flitman continued, “In addition to our focus on profitable core organic growth, we have also continued to grow through accretive acquisitions in line with our strategy. In September, we closed our acquisition of Trussway, which expands our footprint in multifamily trusses, and enhances our value-added portfolio to better serve our customers and accelerate growth in the Southwest and Southeast. We also acquired Fulcrum Building Group in September, providing us with pro-focused lumberyards, millwork facilities and additional resources in the high-growth markets along the Gulf Coast. Furthermore, we boosted our footprint in the Arizona market through the acquisitions of HomCo Lumber and Hardware in July and Pima Door & Supply and Sunrise Carpentry in early October, which will provide us with dedicated millwork capabilities in the region. We are excited to welcome the Trussway, Fulcrum, Pima and Sunrise, and HomCo teams, along with their long-standing customer relationships and track records of profitable growth, to the Builders FirstSource family.”
Peter Jackson, CFO of Builders FirstSource, added, “I am proud of our ability to deliver strong financial results in the third quarter. Our growing third quarter sales and Adjusted EBITDA, combined with our focus on working capital management, resulted in record free cash flow of $1.4 billion. In addition, we remain focused on returning capital to shareholders, as evidenced by nearly $660 million in share repurchases. I want to emphasize that we are operating with a proactive mindset and have enhanced our already strong expense management processes. Our fortress balance sheet, low net leverage profile and ample liquidity provide us with the strength and flexibility to navigate a complex operating environment and create value over the long term.”
Builders FirstSource Financial Performance Highlights - Third Quarter 2022 Compared to Third Quarter 2021
Net Sales
Gross Profit
Selling, General and Administrative Expenses
Interest Expense
2
Income Tax Expense
Net Income
Adjusted Net Income
Adjusted EBITDA
Builders FirstSource Capital Structure, Leverage, and Liquidity Information
3
Operational Excellence Productivity
M&A Update
2022 Total Company Outlook:
For 2022, the Company expects significant improvement in its full-year financial performance compared to 2021, including the following:
2022 Full Year Assumptions:
The Company’s anticipated 2022 performance is based on several assumptions, including the following:
4
Conference Call
Builders FirstSource will host a conference call Tuesday, November 8, 2022, 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 Flitman, President and 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: 800-267-6316 (U.S. and Canada) and 203-518-9708 (international), Conference ID: BLDRQ322. A replay of the call will be available at 12:00 p.m. Central Time through Tuesday, November 15, 2022. To access the replay, please dial 888-219-1264 (U.S. and Canada) or 402-220-4944 (international) and refer to pass code BLDRQ322. The live webcast and archived replay can also be accessed on the Company's website at www.bldr.com under the Investors section. The online archive of the webcast will be available for approximately 90 days.
About Builders FirstSource
Headquartered in Dallas, 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 approximately 575 locations and have a market presence in 47 of the top 50 and 85 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 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
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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. Any 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, including risks or uncertainties related to the continuing COVID-19 pandemic and its impact on the economy, the Company’s acquisitions and continued ability to identify and consummate attractive acquisitions, the Company’s growth strategies, including gaining market share and its digital strategies, or the Company’s revenues and operating results being highly dependent on, among other things, the homebuilding industry, which in turn is dependent on economic conditions, lumber prices and the economy, including interest rates, inflation and labor and supply shortages. 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, gains (loss) on sale and asset impairments and other items. 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
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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 professional and legal fees associated with acquisitions. 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.
# # #
Contact:
Michael Neese
SVP, Investor Relations
Builders FirstSource, Inc.
(214) 765-3804
7
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
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Three Months Ended |
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Nine Months Ended |
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(in thousands, except per share amounts) |
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2022 |
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2021 |
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2022 |
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2021 |
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Net sales |
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$ |
5,761,463 |
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$ |
5,508,590 |
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$ |
18,368,853 |
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$ |
15,259,047 |
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Cost of sales |
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3,746,731 |
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3,796,138 |
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12,109,601 |
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10,893,890 |
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Gross margin |
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2,014,732 |
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1,712,452 |
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6,259,252 |
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4,365,157 |
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Selling, general and administrative expenses |
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1,000,204 |
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875,012 |
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3,015,051 |
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2,599,523 |
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Income from operations |
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1,014,528 |
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837,440 |
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3,244,201 |
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1,765,634 |
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Interest expense, net |
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44,111 |
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35,954 |
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156,140 |
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95,593 |
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Income before income taxes |
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970,417 |
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801,486 |
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3,088,061 |
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1,670,041 |
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Income tax expense |
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232,410 |
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188,341 |
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723,205 |
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387,081 |
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Net income |
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$ |
738,007 |
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$ |
613,145 |
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$ |
2,364,856 |
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$ |
1,282,960 |
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Net income per share: |
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Basic |
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$ |
4.75 |
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$ |
3.00 |
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$ |
14.12 |
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$ |
6.23 |
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Diluted |
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$ |
4.72 |
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$ |
2.98 |
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$ |
13.98 |
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$ |
6.18 |
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Weighted average common shares: |
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Basic |
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155,309 |
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204,268 |
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167,522 |
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205,976 |
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Diluted |
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156,493 |
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205,630 |
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169,111 |
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207,513 |
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8
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
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Nine Months Ended |
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(in thousands) |
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2022 |
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2021 |
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Cash flows from operating activities: |
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Net income |
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$ |
2,364,856 |
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$ |
1,282,960 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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355,472 |
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401,500 |
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Deferred income taxes |
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(57,183 |
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(65,696 |
) |
Stock-based compensation expense |
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26,652 |
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25,288 |
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Net gain on sale of assets |
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(1,813 |
) |
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(32,235 |
) |
Other non-cash adjustments |
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31,026 |
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4,805 |
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Changes in assets and liabilities, net of assets acquired and liabilities assumed: |
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Receivables |
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(91,485 |
) |
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(615,453 |
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Inventories |
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(61,926 |
) |
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(321,068 |
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Contract assets |
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(32,596 |
) |
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(141,058 |
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Other current assets |
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(2,982 |
) |
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5,491 |
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Other assets and liabilities |
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5,307 |
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16,653 |
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Accounts payable |
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(31,260 |
) |
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103,006 |
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Accrued liabilities |
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99,778 |
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177,874 |
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Contract liabilities |
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24,020 |
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61,150 |
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Net cash provided by operating activities |
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2,627,866 |
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903,217 |
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Cash flows from investing activities: |
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Cash used for acquisitions, net of cash acquired |
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(619,551 |
) |
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(898,113 |
) |
Proceeds from divestiture of business |
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— |
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76,162 |
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Purchases of property, plant and equipment |
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(205,241 |
) |
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(160,179 |
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Proceeds from sale of property, plant and equipment |
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7,461 |
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11,728 |
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Net cash used in investing activities |
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(817,331 |
) |
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(970,402 |
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Cash flows from financing activities: |
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Borrowings under revolving credit facility |
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5,267,000 |
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2,420,000 |
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Repayments under revolving credit facility |
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(5,405,000 |
) |
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(2,495,000 |
) |
Proceeds from long-term debt and other loans |
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1,001,500 |
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1,000,000 |
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Repayments of long-term debt and other loans |
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(615,082 |
) |
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(471,360 |
) |
Payments of debt extinguishment costs |
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(20,672 |
) |
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(2,475 |
) |
Payments of loan costs |
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(16,797 |
) |
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(17,970 |
) |
Exercise of stock options |
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440 |
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537 |
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Repurchase of common stock |
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(1,979,545 |
) |
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(565,618 |
) |
Net cash used in financing activities |
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(1,768,156 |
) |
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(131,886 |
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Net change in cash and cash equivalents |
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42,379 |
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(199,071 |
) |
Cash and cash equivalents at beginning of period |
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42,603 |
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423,806 |
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Cash and cash equivalents at end of period |
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$ |
84,982 |
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$ |
224,735 |
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Supplemental disclosures of cash flow information: |
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Cash paid for interest |
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$ |
138,034 |
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$ |
75,531 |
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Cash paid for income taxes |
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|
790,994 |
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|
414,515 |
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Supplemental disclosures of non-cash activities: |
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Non-cash or accrued consideration for acquisitions |
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$ |
9,985 |
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$ |
3,658,362 |
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Accrued purchases of property, plant and equipment |
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12,711 |
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13,164 |
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Right-of-use assets obtained in exchange for operating lease obligations |
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89,400 |
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49,135 |
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Assets acquired under finance lease obligations |
|
|
— |
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1,644 |
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Amounts accrued for repurchases of common stock |
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41,826 |
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|
|
30,756 |
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9
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousands, except per share amounts) |
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September 30, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
84,982 |
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$ |
42,603 |
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Accounts receivable, less allowances of $54,156 and $39,510 at September 30, 2022 and December 31, 2021, respectively |
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1,924,912 |
|
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1,708,796 |
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Other receivables |
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268,694 |
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|
255,075 |
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Inventories, net |
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1,758,881 |
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1,626,244 |
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Contract assets |
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240,346 |
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|
207,587 |
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Other current assets |
|
|
142,316 |
|
|
|
127,964 |
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Total current assets |
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4,420,131 |
|
|
|
3,968,269 |
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Property, plant and equipment, net |
|
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1,491,622 |
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|
1,385,441 |
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Operating lease right-of-use assets, net |
|
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500,031 |
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|
457,833 |
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Goodwill |
|
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3,453,340 |
|
|
|
3,270,192 |
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Intangible assets, net |
|
|
1,637,358 |
|
|
|
1,603,409 |
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Other assets, net |
|
|
35,216 |
|
|
|
29,199 |
|
Total assets |
|
$ |
11,537,698 |
|
|
$ |
10,714,343 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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|
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Current liabilities: |
|
|
|
|
|
|
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Accounts payable |
|
$ |
1,087,994 |
|
|
$ |
1,093,370 |
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Accrued liabilities |
|
|
850,758 |
|
|
|
718,904 |
|
Contract liabilities |
|
|
250,166 |
|
|
|
216,097 |
|
Current portion of operating lease liabilities |
|
|
100,972 |
|
|
|
96,680 |
|
Current maturities of long-term debt |
|
|
3,837 |
|
|
|
3,660 |
|
Total current liabilities |
|
|
2,293,727 |
|
|
|
2,128,711 |
|
Noncurrent portion of operating lease liabilities |
|
|
414,911 |
|
|
|
375,289 |
|
Long-term debt, net of current maturities, discounts and issuance costs |
|
|
3,169,429 |
|
|
|
2,926,122 |
|
Deferred income taxes |
|
|
304,939 |
|
|
|
362,121 |
|
Other long-term liabilities |
|
|
130,089 |
|
|
|
119,619 |
|
Total liabilities |
|
|
6,313,095 |
|
|
|
5,911,862 |
|
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; 148,994 and 179,820 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively |
|
|
1,490 |
|
|
|
1,798 |
|
Additional paid-in capital |
|
|
4,252,851 |
|
|
|
4,260,670 |
|
Retained earnings |
|
|
970,262 |
|
|
|
540,013 |
|
Total stockholders' equity |
|
|
5,224,603 |
|
|
|
4,802,481 |
|
Total liabilities and stockholders' equity |
|
$ |
11,537,698 |
|
|
$ |
10,714,343 |
|
10
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) |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|||||
Reconciliation to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP net income |
$ |
738.0 |
|
|
$ |
613.1 |
|
|
$ |
2,364.9 |
|
|
$ |
1,283.0 |
|
|
$ |
2,807.3 |
|
Acquisition and integration expense |
|
23.3 |
|
|
|
17.7 |
|
|
|
53.4 |
|
|
|
107.5 |
|
|
|
71.9 |
|
Debt issuance and refinancing cost (1) |
|
- |
|
|
|
- |
|
|
|
27.4 |
|
|
|
4.6 |
|
|
|
30.8 |
|
Amortization expense |
|
76.7 |
|
|
|
92.3 |
|
|
|
212.5 |
|
|
|
261.6 |
|
|
|
309.0 |
|
Tax-effect of adjustments to net income |
|
(24.0 |
) |
|
|
(26.4 |
) |
|
|
(70.4 |
) |
|
|
(89.7 |
) |
|
|
(98.8 |
) |
Adjusted net income |
$ |
814.0 |
|
|
$ |
696.7 |
|
|
$ |
2,587.8 |
|
|
$ |
1,567.0 |
|
|
$ |
3,120.2 |
|
Weighted average diluted common shares |
|
156.5 |
|
|
|
205.6 |
|
|
|
169.1 |
|
|
|
207.5 |
|
|
|
|
|
Diluted adjusted net income per share: |
$ |
5.20 |
|
|
$ |
3.39 |
|
|
$ |
15.30 |
|
|
$ |
7.55 |
|
|
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation expense |
$ |
49.0 |
|
|
$ |
47.7 |
|
|
$ |
143.0 |
|
|
$ |
139.9 |
|
|
$ |
192.4 |
|
Interest expense, net |
|
44.1 |
|
|
|
36.0 |
|
|
|
128.7 |
|
|
|
91.0 |
|
|
|
165.6 |
|
Income tax expense |
|
256.4 |
|
|
|
214.7 |
|
|
|
793.6 |
|
|
|
476.8 |
|
|
|
961.1 |
|
Stock compensation expense |
|
8.5 |
|
|
|
6.2 |
|
|
|
26.7 |
|
|
|
18.9 |
|
|
|
32.8 |
|
Gain on sale and asset impairments |
|
(1.3 |
) |
|
|
(25.7 |
) |
|
|
(2.0 |
) |
|
|
(27.4 |
) |
|
|
(1.1 |
) |
Other management-identified adjustments (2) |
|
1.1 |
|
|
|
0.3 |
|
|
|
1.9 |
|
|
|
0.7 |
|
|
|
2.1 |
|
Adjusted EBITDA |
$ |
1,171.8 |
|
|
$ |
975.9 |
|
|
$ |
3,679.7 |
|
|
$ |
2,266.9 |
|
|
$ |
4,473.1 |
|
Adjusted EBITDA margin |
|
20.3 |
% |
|
|
17.7 |
% |
|
|
20.0 |
% |
|
|
14.9 |
% |
|
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Costs associated with issuing and extinguishing long term debt in 2021 and 2022. |
|
|
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Financial Data
(unaudited)
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
September 30, |
|
|
September 30, |
|
||||||||||
(in millions, except per share amounts) |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Net sales |
$ |
5,761.5 |
|
|
$ |
5,508.6 |
|
|
$ |
18,368.9 |
|
|
$ |
15,259.0 |
|
Cost of sales |
|
3,746.8 |
|
|
|
3,796.1 |
|
|
|
12,109.6 |
|
|
|
10,893.8 |
|
Gross margin |
|
2,014.7 |
|
|
|
1,712.5 |
|
|
|
6,259.3 |
|
|
|
4,365.2 |
|
Gross margin % |
|
35.0 |
% |
|
|
31.1 |
% |
|
|
34.1 |
% |
|
|
28.6 |
% |
Adjusted SG&A/Other (excluding depreciation and |
|
14.6 |
% |
|
|
12.9 |
% |
|
|
14.0 |
% |
|
|
13.7 |
% |
Adjusted EBITDA |
|
1,171.8 |
|
|
|
975.9 |
|
|
|
3,679.7 |
|
|
|
2,266.9 |
|
Adjusted EBITDA margin % |
|
20.3 |
% |
|
|
17.7 |
% |
|
|
20.0 |
% |
|
|
14.9 |
% |
Depreciation expense |
|
(49.0 |
) |
|
|
(47.7 |
) |
|
|
(143.0 |
) |
|
|
(139.9 |
) |
Interest expense, net of debt issuance cost and refinancing |
|
(44.1 |
) |
|
|
(36.0 |
) |
|
|
(128.7 |
) |
|
|
(91.0 |
) |
Income tax expense |
|
(256.4 |
) |
|
|
(214.7 |
) |
|
|
(793.6 |
) |
|
|
(476.8 |
) |
Other adjustments |
|
(8.3 |
) |
|
|
19.2 |
|
|
|
(26.6 |
) |
|
|
7.8 |
|
Adjusted net income |
$ |
814.0 |
|
|
$ |
696.7 |
|
|
$ |
2,587.8 |
|
|
$ |
1,567.0 |
|
Basic adjusted net income per share: |
$ |
5.24 |
|
|
$ |
3.41 |
|
|
$ |
15.45 |
|
|
$ |
7.61 |
|
Diluted adjusted net income per share: |
$ |
5.20 |
|
|
$ |
3.39 |
|
|
$ |
15.30 |
|
|
$ |
7.55 |
|
Weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
155.3 |
|
|
|
204.3 |
|
|
|
167.5 |
|
|
|
206.0 |
|
Diluted |
|
156.5 |
|
|
|
205.6 |
|
|
|
169.1 |
|
|
|
207.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Adjusted SG&A and other as a percentage of sales is defined as GAAP SG&A less depreciation and amortization, |
|
11
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Interest Reconciliation
(unaudited)
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
September 30, 2022 |
|
|
September 30, 2022 |
|
||||||||||
(in millions) |
Interest |
|
|
Net Debt Outstanding |
|
|
Interest |
|
|
Net Debt Outstanding |
|
||||
2032 Unsecured notes @ 4.25% |
$ |
13.8 |
|
|
$ |
1,300.0 |
|
|
$ |
40.6 |
|
|
$ |
1,300.0 |
|
2032 Unsecured notes @ 6.375% |
|
11.2 |
|
|
|
700.0 |
|
|
|
13.1 |
|
|
|
700.0 |
|
2030 Unsecured notes @ 5.00% |
|
6.9 |
|
|
|
550.0 |
|
|
|
20.6 |
|
|
|
550.0 |
|
2027 Secured notes @ 6.75% |
|
- |
|
|
|
- |
|
|
|
18.9 |
|
|
|
- |
|
Revolving credit facility @ 3.40% weighted average interest rate |
|
5.8 |
|
|
|
450.0 |
|
|
|
16.4 |
|
|
|
450.0 |
|
Amortization of debt issuance costs, discount and premium |
|
1.2 |
|
|
|
- |
|
|
|
3.7 |
|
|
|
- |
|
Finance leases and other finance obligations |
|
5.2 |
|
|
|
205.2 |
|
|
|
15.3 |
|
|
|
205.2 |
|
Debt issuance and refinancing cost |
|
- |
|
|
|
- |
|
|
|
27.4 |
|
|
|
- |
|
Cash |
|
- |
|
|
|
(85.0 |
) |
|
|
- |
|
|
|
(85.0 |
) |
Total |
$ |
44.1 |
|
|
$ |
3,120.2 |
|
|
$ |
156.0 |
|
|
$ |
3,120.2 |
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||
(in millions) |
September 30, 2022 |
|
|
September 30, 2022 |
|
||
Free Cash Flow |
|
|
|||||
Operating activities |
$ |
1,500.8 |
|
|
$ |
2,627.9 |
|
Less: Capital expenditures, net of proceeds |
|
(83.6 |
) |
|
|
(197.8 |
) |
Free cash flow |
$ |
1,417.2 |
|
|
$ |
2,430.1 |
|
12
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Sales by Product Category
(unaudited)
|
Three Months Ended September 30, |
|
|
|||||||||||||||||
|
2022 |
|
|
2021 |
|
|
|
|
|
|||||||||||
(in millions) |
Net Sales |
|
|
% of |
|
|
Net Sales |
|
|
% of |
|
|
% Change |
|
|
|||||
Manufactured products |
$ |
1,478.2 |
|
|
|
25.7 |
% |
|
$ |
1,259.3 |
|
|
|
22.9 |
% |
|
|
17.4 |
% |
|
Windows, doors & millwork |
|
1,294.1 |
|
|
|
22.5 |
% |
|
|
883.4 |
|
|
|
16.0 |
% |
|
|
46.5 |
% |
|
Value-added products |
|
2,772.3 |
|
|
|
48.1 |
% |
|
|
2,142.7 |
|
|
|
38.9 |
% |
|
|
29.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Specialty building products & services |
|
1,172.9 |
|
|
|
20.3 |
% |
|
|
960.1 |
|
|
|
17.4 |
% |
|
|
22.2 |
% |
|
Lumber & lumber sheet goods |
|
1,816.3 |
|
|
|
31.5 |
% |
|
|
2,405.8 |
|
|
|
43.7 |
% |
|
|
-24.5 |
% |
|
Total net sales |
$ |
5,761.5 |
|
|
|
100.0 |
% |
|
$ |
5,508.6 |
|
|
|
100.0 |
% |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Nine Months Ended September 30, |
|
|
|||||||||||||||||
|
2022 |
|
|
2021 |
|
|
|
|
|
|||||||||||
(in millions) |
Net Sales |
|
|
% of |
|
|
Net Sales |
|
|
% of |
|
|
% Change |
|
|
|||||
Manufactured products |
$ |
4,541.4 |
|
|
|
24.7 |
% |
|
$ |
3,208.9 |
|
|
|
21.0 |
% |
|
|
41.5 |
% |
|
Windows, doors & millwork |
|
3,539.1 |
|
|
|
19.3 |
% |
|
|
2,473.5 |
|
|
|
16.2 |
% |
|
|
43.1 |
% |
|
Value-added products |
|
8,080.5 |
|
|
|
44.0 |
% |
|
|
5,682.4 |
|
|
|
37.2 |
% |
|
|
42.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Specialty building products & services |
|
3,301.4 |
|
|
|
18.0 |
% |
|
|
2,805.4 |
|
|
|
18.4 |
% |
|
|
17.7 |
% |
|
Lumber & lumber sheet goods |
|
6,987.0 |
|
|
|
38.0 |
% |
|
|
6,771.2 |
|
|
|
44.4 |
% |
|
|
3.2 |
% |
|
Total net sales |
$ |
18,368.9 |
|
|
|
100.0 |
% |
|
$ |
15,259.0 |
|
|
|
100.0 |
% |
|
|
20.4 |
% |
|
13
^M[6^VCSK6:0(RMWVY^\ON/QQ4WB3X@^'_#FGRS2:A;
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Document And Entity Information |
Nov. 08, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Nov. 08, 2022 |
Entity Registrant Name | BUILDERS FIRSTSOURCE, INC. |
Entity Central Index Key | 0001316835 |
Entity Emerging Growth Company | false |
Securities Act File Number | 001-40620 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 52-2084569 |
Entity Address, Address Line One | 2001 Bryan Street |
Entity Address, Address Line Two | Suite 1600 |
Entity Address, City or Town | Dallas |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75201 |
City Area Code | (214) |
Local Phone Number | 880-3500 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $0.01 per share |
Trading Symbol | BLDR |
Security Exchange Name | NYSE |
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