Builders FirstSource Q1 sales up 11%
Despite facing weather-related issues, BFS grows sales 12.7% per day
Builders FirstSource reported first quarter 2018 net sales of $1.7 billion, up nearly 11% from net sales of $1.5 billion for the first quarter of 2017.
Weather-related facility closures impacted sales during the quarter, the Dallas, Texas-based pro dealer giant said. Sales per day grew 12.7% in the quarter, which was benefited by approximately 9.6% from the impact of commodity lumber price inflation on our sales and 3.1% from sales volume growth.
Sales volume per day, excluding commodity inflation, grew approximately 3.8% in the single-family homebuilding end market and 2.8% in the repair and remodeling/other end market, offset by expected declines in multifamily, BFS reported. Value-added products sales per day grew by 9.8%, including 8.9 percent in our windows, doors, and millwork category and 10.7% in manufactured products.
The dealer also reported a net income of $23.2 million for the quarter compared to a net income of $3.8 million for the same period last year.
“We continued our investments in manufacturing capacity and talent to drive enhanced growth in margin-accretive products and markets, as well as implementing our operational excellence plans, which are included in our longer-term strategy to generate significant EBITDA and cash flow,” said Chad Crow, CEO of Builders FirstSource.
Given the rising cost of lumber, company CFO Peter Jackson said, “Our team rapidly responded to the operational challenges caused by lumber and lumber sheet goods inflation during the current quarter, delivering strong operating results by focusing on disciplined cost and margin management. Commodity inflation generally benefits our business in the long term but can cause short term margin pressure when prices rise quickly.
Looking ahead, Crow hinted that there are expansion opportunities for BFS.
“I remain confident in the outlook for Builders FirstSource and our expanding opportunities for growth,” he said. “We believe demand in the housing industry remains on a solid trajectory.”
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