Builders FirstSource CEO Floyd Sherman likes what he sees when he looks at the new residential housing market. He also described himself as bullish on his company’s ability to convert housing market growth to sales growth.
The Dallas-based pro dealer reported net sales of $1.8 billion in the quarter ended June 30. That’s up 9.9% from the same quarter last year. Net income swelled to $37.9 million, up from $29.4 million in the year-ago quarter.
“We are increasingly leveraging our national scale, geographic and end market exposure, customer reach, service advantage, and value-added product portfolio to continue to grow our revenue and operating profit,” Sherman said.
Excluding closed locations, sales grew 10.1% in the first half of the year, Sherman said. Also, sales to the single-family construction end market grew 7.4%. Repair and remodeling end market sales increased 5.1%. He pointed to major investments in manufacturing capacity and talent.
Other metrics from the company’s second quarter earnings release:
- Gross margin of $460.8 million increased by $43.5 million over the second quarter of 2016.
- Gross margin percentage of 25.0%, up from 24.9%;
- Year to date net sales of $3.4 billion, up 9.8% over the same period in the previous year.
Builders FirstSource, which acquired ProBuild Holdings in August 2015 to form an LBM super power operating in 40 states, had $6.4 billion in sales last year.