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05/10/2022

Banner first quarter for Builders FirstSource

Core organic sales increased by 15% in the first quarter as commodity price inflation contributed 12.8% to net sales.
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Builder FirstSource reported first quarter sales soared 36.1% to $5.7 billion compared to first quarter 2021 sales of $4.2 billion, marking a new company record.

The Dallas, Texas-based building materials and lumber distribution giant said the increase in sales was driven by double-digit core organic growth, commodity inflation, and acquisitions.

Core organic sales increased by 15.%, commodity price inflation contributed 12.8% to net sales and acquisitions contributed net sales growth of 8.3%.

The company also reported that core organic sales in value-added products grew by an estimated 30.8% compared with the prior-year period.

Sales to single-family construction increased 16.6% for the quarter while Builders FirstSource saw a 9.5% rise for repair and remodel sales and 10.2% for multifamily.

The dealer’s net income for the period was $639.6 million compared to a net income of $172.6 million in the first quarter of 2021.

On April 1 Builders FirstSource acquired both the Texas Panel Truss and East Panel Truss businesses (Panel Truss), for an aggregate of approximately $150 million, subject to certain closing adjustments. Panel Truss is a provider of building components to the single and multifamily markets throughout the South and Southeast. 

The Panel Truss businesses had approximately $138 million in sales in 2021.

Also on April 1, the company acquired Valley Truss Co., Inc. for approximately $30.5 million, subject to certain closing adjustments. Valley Truss is a provides building components to the single and multifamily markets in Boise, Idaho. 

Valley Truss sales were approximately $26 million in 2021.

Builders FirstSource operates about 565 locations in 45 states. In January 2021, Builders FirstSource merged with BMC Stock Holdings, creating the largest prodealer in the industry. 

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Dave Flitman

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The Bottom Line: Builders FirstSource posts big profits and a first quarter net income of $639.6 million compared to $172.6 million in the first quarter of 2021.

What the CEO said:  “We started the year out strong achieving another quarter of record net sales, gross margin, and Adjusted EBITDA, while also producing strong core organic sales growth of 15%,” said Builders FirstSource President and CEO Dave Flitman. “In addition, we continue to make progress investing prudently in our operations and delivering outstanding service to our customers as we work to overcome the supply chain constraints that persist throughout our industry. Our efforts to broaden our value-added products, which saw core organic sales up 31%, alongside our strategic investments in digital, are helping our customers get their jobs done quickly, on time, and cost-effectively.”

Company info:Click here to read the full first quarter 2022 financial report from Builders FirstSource.