Builders FirstSource sales rise 9.5%
Builders FirstSource posted strong first quarter sales despite the COVID-19 pandemic.
The Dallas, Texas-based pro dealer giant reported first quarter net sales increased 9.5% to $1.8 billion from net sales of $1.6 billion in the first quarter 2019.
The company said that core organic growth rose 3.9% while acquisitions contributed a 3.5% increase, and one additional selling day added 1.7% to net sales.
Value-added product sales volume grew by an estimated 8.9%, on a per-day basis, including sales growth of 8.8% in manufactured products and 9% in windows, doors, and millwork products.
Profits fell, however, as the company posted a first quarter net income of $8.8 million compared to a net income of $35.7 million for the same period last year.
Builders FirstSource reported that its interest expense increased by $27 million to $51.9 million compared to the same period last year. This increase was primarily attributable to one-time charges of $28 million related to the redemption and extinguishment of senior secured notes due 2024 and 2027. Excluding the charges, interest expense decreased by $1 million due to lower interest rates in the first quarter of 2020 compared to the prior year period.
During the quarter, Builders FirstSource acquired Bianchi & Company, Inc., a supplier and installer of building products in the Carolina markets. Bianchi has annual revenue of approximately $30 million.
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The Bottom Line: Sales rise 9.5% to $1.8 billion but profits are down from a year ago.
What the CEO said: “Throughout the quarter we operated with a safety first emphasis to deliver our critical products and services while upholding our core values to protect the well-being of all,” CEO Chad Crow said. “We tailored our operations to the current environment to produce solid first quarter results, which were well within our original expectations. Our approach to providing superior service at all times, together with our ongoing operational excellence initiatives, prior investments in technology and our focus on partnering with customers, contributed to our success in this difficult time.”
“While the future is uncertain, we are confident that our leading position in an essential industry, together with our ability to streamline the home building process with our value-added products, will help us succeed and emerge as a stronger company once the economy reopens.”
What the CFO said: Over the past several months, we have initiated prudent and proactive actions to enhance our financial flexibility, liquidity and cash flow in response to the COVID-19 pandemic,” said CFO Peter Jackson. “As of April, our balance sheet is well situated with approximately $1 billion of liquidity and no significant debt maturities until 2027. Building upon a solid start to the year, we will continue to evaluate health management, cost containment, and cash preservation measures that balance the interests of all stakeholders.”
Company info: Click here to read the full first quarter 2020 report from Builders FirstSource.
The Dallas, Texas-based pro dealer giant reported first quarter net sales increased 9.5% to $1.8 billion from net sales of $1.6 billion in the first quarter 2019.
The company said that core organic growth rose 3.9% while acquisitions contributed a 3.5% increase, and one additional selling day added 1.7% to net sales.
Value-added product sales volume grew by an estimated 8.9%, on a per-day basis, including sales growth of 8.8% in manufactured products and 9% in windows, doors, and millwork products.Profits fell, however, as the company posted a first quarter net income of $8.8 million compared to a net income of $35.7 million for the same period last year.
Builders FirstSource reported that its interest expense increased by $27 million to $51.9 million compared to the same period last year. This increase was primarily attributable to one-time charges of $28 million related to the redemption and extinguishment of senior secured notes due 2024 and 2027. Excluding the charges, interest expense decreased by $1 million due to lower interest rates in the first quarter of 2020 compared to the prior year period.
During the quarter, Builders FirstSource acquired Bianchi & Company, Inc., a supplier and installer of building products in the Carolina markets. Bianchi has annual revenue of approximately $30 million.
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The Bottom Line: Sales rise 9.5% to $1.8 billion but profits are down from a year ago.
What the CEO said: “Throughout the quarter we operated with a safety first emphasis to deliver our critical products and services while upholding our core values to protect the well-being of all,” CEO Chad Crow said. “We tailored our operations to the current environment to produce solid first quarter results, which were well within our original expectations. Our approach to providing superior service at all times, together with our ongoing operational excellence initiatives, prior investments in technology and our focus on partnering with customers, contributed to our success in this difficult time.”
“While the future is uncertain, we are confident that our leading position in an essential industry, together with our ability to streamline the home building process with our value-added products, will help us succeed and emerge as a stronger company once the economy reopens.”
What the CFO said: Over the past several months, we have initiated prudent and proactive actions to enhance our financial flexibility, liquidity and cash flow in response to the COVID-19 pandemic,” said CFO Peter Jackson. “As of April, our balance sheet is well situated with approximately $1 billion of liquidity and no significant debt maturities until 2027. Building upon a solid start to the year, we will continue to evaluate health management, cost containment, and cash preservation measures that balance the interests of all stakeholders.”
Company info: Click here to read the full first quarter 2020 report from Builders FirstSource.