Now combined with BMC, the pro dealer giant posts big profits for the quarter.
Builders FirstSource reported first quarter 2021 sales increased 133.6%, fueled by its Jan. 1 merger with BMC and a strong residential construction market.
Pro forma sales, excluding sales from BMC, jumped 54.1% for the first quarter.
Pro forma core organic sales increased 22%, excluding commodity and acquisition impacts, Commodity inflation increased net sales 31.3% while acquisitions contributed to net sales growth of 2.4% growth.
Value-added core organic sales grew by an estimated 22.1%, led by 41.5% growth in the manufactured products category. Strong national demand was somewhat hindered by material availability constraints, Builders FirstSource said.
Single-family along with repair and remodel sales grew estimated combined core organic sales by 29.6% and 5.4% respectively, while multi-family declined 3.1%.
The Dallas, Texas-based pro dealer giant also posted a net income of $172.6 million for the first quarter compared to a net income of $30.8 million in the first quarter of 2020.
Builders FirstSource operates about 550 locations in 40 states, including a presence in 47 of the nation’s top 50 markets.
The Bottom Line: With a merger with BMC now firmly under its belt, sales shoot up 133.6% as profits soar at Builders FirstSource.
What the CEO said: “The positive momentum in our business continued with record first quarter results,” said Dave Flitman, who took over Builders FirstSource CEO last month. Flitman previously served as CEO of BMC.
“We are working closely with our customers to reduce cycle times amid material availability constraints and capitalize on strong underlying demand in the single-family residential housing market,” Flitman said.
The CEO also noted that integration efforts between the two companies are ahead of the plan, which will result in cost synergies.
Company info: The full first quarter 2021 financial report from Builders FirstSource is available here.