Builders FirstSource sales fall in Q1
Builders FirstSource reported first quarter sales declined 31.6% to $3.9 billion from sales of $5.7 billion in the first quarter of 2022.
The nation’s largest prodealer and building solutions provider said sales were impacted by declining single-family starts and commodity deflation, partially offset by growth from acquisitions and one additional selling day.
During the quarter, core organic sales for single-family builders decreased 34.1%, sales to the multi-family segment increased 11.5%, and repair and remodel sales increased 3.1%.
Since peaking in May 2022, the Producer Price Index for softwood lumber has fallen by more than half or 52.5% in the past year.
The Dallas, Texas-based company also posted a net income of $333.8 million, falling 47.8% compared to a net income of $639.6 million for the same period last year.
In the first quarter, Builders FirstSource repurchased approximately 7.5 million shares of its common stock at an average price of $83.17 per share for $627.6 million, inclusive of fees and taxes. Additionally, the company repurchased approximately 3.8 million shares in April 2023 for $348.4 million at an average price of $91.90 per share.
Builders FirstSource said it has completed its expanded share repurchase authorization from November 2022 totaling approximately $1.5 billion.
The company operates more than 550 locations in 42 states.
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The Bottom Line: Slower housing starts and falling commodity prices leads to first quarter sales dropping 31.6% as the company’s net income declines 47.8%.
What the CEO said: “We are proud of our results for the first quarter given the challenging macro backdrop. We were able to exceed our forecasts through the strength of our product portfolio, continued execution of our strategic priorities, and the tireless effort of our team members,” said Dave Rush, CEO of Builders FirstSource. “Our best-in-class end market exposure and distribution footprint, in addition to our unrelenting focus on operational excellence, are guiding us through this complex operating environment.”
“In addition to our focus on profitable organic growth and improving mix, we remain committed to growing through accretive acquisitions,” Rush added. “Our recent tuck-in acquisitions allow us to further expand our value-added offerings and reach a more diverse customer base in what we consider to be very attractive markets.”
What the CFO said: “Looking forward, we believe our robust financial position, industry-leading products and solutions, and reputation for providing excellent customer service will allow us to successfully navigate macro volatility and position ourselves for above market growth in the years to come,” said Peter Jackson, chief financial officer of Builders FirstSource.
Company Info: Click here to read the full first quarter 2023 financial report from Builders FirstSource.
