Q4 profits plummet at Builders FirstSource
Builders FirstSource (BFS) reported a $42.7 million loss for the fourth quarter 2017 compared to a net income of $6.4 million during the fourth quarter 2016.
For the full year, the Dallas, Texas-based pro dealer titan, reported a net income of $38.8 million, down from a net income of $144.3 million in 2016.
BFS said its income tax expense in the fourth quarter of 2017 was $18 million compared to a tax expense of $0.1 million in the fourth quarter of 2016. The year over year increase is primarily attributable to the revaluation of its deferred taxes, totaling $29 million as a result of the 2017 Tax Cuts and Jobs Act.
Fourth quarter net sales rose 15% to $1.8 billion from sales of $1.5 billion during the same period a year ago. Sales per day, excluding closed locations, grew 13.2% in the quarter, benefitting about 7.6% from commodity lumber inflation along with 5.6% sales volume growth, BFS said.
Full year 2017 net sales increased 10.5% to $7 billion from sales of $6.4 billion in 2016. Sales, excluding closed locations grew 10.7%, including 6.2% from the impact of commodity price inflation on sales, the company reported.
According to CEO Chad Crow, the dealer saw an increase in sales volume in the single-family construction end market of 7.5%, and 5.2% in the repair and remodeling market while manufactured product sales increased 11.3%.
“We continued our investments in manufacturing capacity and talent to drive enhanced growth in margin-accretive products and markets, while making further progress in paying down debt and reducing our leverage ratio on a year over year basis," Crow said in a prepared statement issued after the close of the market.
Builders FirstSource operates more than 400 locations in 40 states including a presence in 75 of the top 100 U.S. markets.