Sales and profits continue to soar a year after merging with BMC.
Builders FirstSource reported that net sales for the fourth quarter of 2021 increased 83.1% to $4.63 billion from sales of $3.74 billion in the fourth quarter of 2020.
The Dallas, Texas-based pro dealer and residential construction solutions provider said sales growth was driven by its merger with BMC, BMC, double-digit organic growth, and commodity inflation. Builders FirstSource and BMC finalized their merger at the start of January 2021.
Core organic sales, excluding acquisitions and commodity inflation, climbed 11.7% during the period. Excluding the BMC Merger, acquisitions contributed 6.7% sales growth. Commodity inflation increased sales by 5.3%.
For the full year, sales jumped 132.4% to nearly $20 billion. Commodity price inflation contributed 30.2% to net sales, while core organic sales increased by 20.6%.
Acquisitions completed during 2021, excluding the BMC merger, contributed net sales growth of 5.4%, while the numbers of selling days reduced net sales growth by 0.4%, Builders FirstSource reported.
Net income for the fourth quarter soared more than 216% to $442.5 million. The company’s net income increased to $1.7 billion for the year, from a net income of $484.8 million in 2020. Builders FirstSource operates 565 locations in 42 states, including 47 of the top 50 markets..
Dave Flitman, CEO of Builders FirstSource.
The Bottom Line: The merger between Builders FirstSource and BMC, now a year later, results in combined profits increasing 216% to $442.5 million as sales jump more than 83% to $4.63 billion.
What the CEO said: “We achieved another quarter of double-digit core organic growth to conclude an outstanding year of above-market performance and record results in 2021. On a pro forma basis in 2021, we delivered core organic growth of 21% and produced record sales of nearly $20 billion to deliver over $3 billion of Adjusted EBITDA and a record adjusted EBITDA margin of 15.4%,” said Dave Flittman, CEO of Builders FirstSource.
“Looking at our progress, we are clearly leveraging the strength of our industry-leading platform, national network, operating model and robust demand environment to deliver exceptional growth, profitability and free cash flow."
Company info: Click here to read the full fourth quarter 2021 report from Builders FirstSource