Builders FirstSource Q2 profits soar
While sales are up, profits rocket for the Dallas, Texas-based pro dealer.
Builders FirstSource (BFS) reported second quarter 2018 net sales of $2.1 billion, a 13.4% increase over net sales for the second quarter of 2017 of $1.8 billion.
Sales growth included an 8.8% impact from commodity price inflation and a 4.6% increase in sales volume growth. Sales volume, excluding commodity inflation, grew approximately 6% in the single-family homebuilding end market and 1.8% in the repair and remodeling/other end market, offset by declines in multi-family, the Dallas, Texas-based pro dealer reported.
Value added products sales, including windows, doors and millwork, and manufactured products categories, grew by 11.1% for the quarter.
Net sales for the first six months of 2018 were $3.8 billion, up 12% percent from net sales of $3.4 billion for the first half of 2017.
BFS also reported a second quarter net income of $56.6 million, rising 49% from a net income of $37.9 million in the second quarter a year ago. For the first half of 2018, BFS posted a net income of $79.8 million – a 91% increase from a net income of $41.7 million in the first half of 2017.
“We continue to execute on our strategic plan and investments in margin accretive value-added products as well as customer service and efficiency enhancing initiatives which are targeted to generate strong, sustained earnings and cash flow growth,” Chad Crow, CEO of Builders FirstSource said in a prepared statement released today after the close of market trading.
SG&A in the second quarter of 2018 was $391.8 million or 18.7% of sales, representing a decrease of 130 basis points versus the second quarter of 2017. The significant decrease in SG&A as a percent of sales was driven by cost leverage and continued cost management, the company said.
Builders FirstSource operates more than 400 locations in 40 states.
Russell Building Supply expanding in Alabama
In Auburn, Ala., the dealer has broken ground on its 9th location.
Russell Do it Center and Russell Building Supply will open a new unit in Auburn, Ala. next spring.
Located on East University in Auburn, the 9-location company held a ground-breaking ceremony last month for what will be a relocation of an existing unit.
“With our transition to a full-service home center, we look forward to offering a completely new lineup of products including hardware, tools, plumbing, electrical, paint, as well as lawn and garden,” Kirby Scales, general manager of Russell Do it Center and Russell Building Supply, said in a statement issued by the pro dealer.
“Additionally, we are proud to offer a drive-through lumberyard for lumber and building materials for those looking for a convenient way to shop. While maintaining focus on the professional contractors and remodelers, our new location will also better allow us to serve the do-it-yourself customer,” Scales added.
According to David Sturdivant, chief operating officer and CFO of Russell Lands, Inc., the new location will offer a more efficient layout and easy access, “so our customers can get in and out more quickly.” stated David Sturdivant, chief operating officer and chief financial officer of Russell Lands,
“We have been very blessed to be part of the growth of Auburn, as well as the surrounding area, and we look forward to being part of the community even more in the years to come,” Sturdivant said.
Russell Building Supply and Russell Do it Best is a subsidiary of Russell Lands. The dealer carries a complete assortment of lumber, building materials, doors, windows, millwork, hardware, tools, paint, lawn and garden, and electrical supplies.
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This article was updated and corrected to include the accurate store count for the company.
Evolution at Howe Lumber
The Massachusetts dealer changes with the times as it serves pros and DIYers.
Family owned and operated since 1965, Howe Lumber has continued to transform its business while adapting to changes in the LBM landscape.
Located in East Brookfield, Mass., the 53-year old business consolidated back to a single unit operation after it decided to close its Main Street retail store two years ago. But Howe Lumber’s core location carries more than 40,000 products and has embraced the hardware store side of the business.
Catering to contractors and builders, Howe Lumber pursues the retail side while embracing walk-in and DIY customers. The dealer has also expanded its offerings to include grills and firepits.
An emphasis has also been placed on its kitchen and bath showroom, with Howe’s design team growing in recent years.
Lumber and high-end boards remain a core component to the Howe Lumber philosophy, however. More about the company, including co-owner Scott Norrie’s take on the business, can be read at Telegram.com.