Builders FirstSource (BFS) reported third quarter 2017 net sales of $1.9 billion, a 7.6% increase from third quarter 2016 net sales of $1.74 billion.
The Dallas, Texas-based pro dealer also reported a third quarter net income of $39.8 million compared to a net income of $125.5 million for the third quarter of 2016. Net income for the third quarter of 2016 was weighed down by a tax valuation allowance of $117.6 million against BFS’s deferred income tax assets offset by $53.3 million in debt issuance and refinancing costs.
2017 year-to-date net sales were $5.3 billion, a 9% percent increase over net sales of $4.8 billion for first nine months of 2016. For the first 9 months of 2017, BFS reported a net income was $81.5 million compared to a net income of $137.9 million during the same period a year ago.
“We proved our agility to respond to unexpected challenges, including two major hurricanes and commodity inflation,” Floyd Sherman, BFS CEO. “The company is positioned to capitalize on the growth opportunity from our national footprint, our strong customer relationships and our end market diversity. We continue our commitment to investments in strategic growth initiatives, including building our sales force and expanding our manufacturing footprint to grow shareholder value, while making further progress in paying down debt and reducing our leverage ratio on a year over year basis.”
Sherman has lead BFS for the past 16 years and will step down as CEO, effective Jan. 1, 2018
“The outlook for Builders FirstSource for the balance of 2017 and the years ahead is very promising,” said Chad Crow, BFS president and chief operating officer. The new residential housing market continues to show steady growth in demand. Against this backdrop, we continue to invest to further leverage our scale, to broaden our product portfolio, and expand our geographic and end market diversity to capture growth in the coming years.”
Builders FirstSource is one of the nation’s largest pro dealers with more than 400 locations in 40 states.