Builders FirstSource achieved its highest sales level since 2006 as it swung to a profit in the second quarter ended June 30.
The Dallas-based pro dealer reported sales of $426.5 million, up 7.1% from the same quarter last year. Net income was $10.6 million, compared to a net loss of $48 million in the first quarter last year.
“We were able to achieve this high level of sales even though sales were reduced by commodity deflation this quarter, said Floyd Sherman, CEO. He pointed to an average drop of 8.8% drop in market prices for lumber and lumber sheet goods in the quarter.
Gross margin percentage was 22.0 percent, up from 20.7 percent last year. Gross margin percentage increased primarily due to improved customer pricing versus the second quarter of 2013.
The growth also came against a backdrop of disappointing residential construction statistics, he said.
Builders First Source acquired Houston-based Slone Lumber in the second quarter. “Evaluating attractive acquisition opportunities such as Slone will continue to be a key strategy of the company,” Sherman said.
The company operates 54 units and 48 manufacturing facilities in 9 states.