The mega dealer reveals it acquired Flagstaff, Ariz. powerhouse HomCo in July.
Builders FirstSource reported second quarter net sales increased 24.2% to $6.9 billion compared to sales of $5.6 billion in the second quarter for 2021.
The Dallas, Texas-based prodealer said the sales increase was driven by double-digit core organic growth, and acquisitions. Core organic sales increased by 12.2%, acquisitions contributed net sales growth of 8.1%, and commodity price inflation contributed 3.9%.
On July 1, Builders FirstSource acquired HomCo Lumber and Hardware in Flagstaff, Ariz. with sales of $44 million last year. The financial terms of the deal were not disclosed.
On April 1, the company acquired both the Texas Panel Truss and East Panel Truss businesses. Also on April 1, Builders FirstSource acquired Valley Truss, which serves the Boise, Idaho market.
Builders FirstSources also posted a net income of $1 billion for the second quarter, rising 98.5 from a net income $497.2 million in the second quarter a year ago.
The Bottom Line: Profits nearly doubled as Builders FirstSource reaches a net income of $1 billion.
What the CEO said: “During the second quarter, we remained focused on executing our strategy, accelerating value-added product sales and expanding customer solutions, resulting in another quarter of record revenue and EBITDA performance despite the dynamic environment and challenging year-over-year comparisons,” commented Dave Flitman, president and CEO of Builders FirstSource. “We increased sales by 24%, including nearly 32% organic growth in our higher margin value-added products, and increased Adjusted EBITDA by 80%. These outstanding achievements are a direct result of having strong alignment around a clear execution roadmap, the hard work and dedication of our approximately 30,000 team members and their commitment to provide outstanding service to our customers."
What the CFO said: "Looking ahead, we are exceptionally well-positioned to capture organic and inorganic value-enhancing growth opportunities and expand our market-leading positions," said Peter Jackson, CFO of Builders FirstSouce. "For 2022, we remain focused on delivering strong double-digit base business growth and significant free cash flow.”
Company info: Click here to read the full second quarter 2022 financial report from Builders FirstSouce.