Builders FirstSource Inc.’s third-quarter financial results released yesterday had company officials feeling confident and pleased with the overall performance.

“Our team delivered an impressive performance in the third quarter, producing above-market growth in sales volume driven by increases across all of our product categories,” said CEO Chad Crow. “Our team’s disciplined execution delivered the 13th straight quarter of year-over-year increases in adjusted earnings before interest, tax, depreciation and amortization (EBITDA), achieving a quarterly record of 8.1% of net sales, since our acquisition of ProBuild.”

The company’s year-to-date net sales as of September 30, 2019, were down by 6.6%, which the company claims is due to commodity deflation, while gross margin dollars increased by 3.5% and net income improved by 6.6% from the third quarter of 2018 to 2019. Crow said that the acquisition of three Sun State Components’ truss manufacturing facilities strengthened the company’s market position.

“We were also pleased to deploy capital on an accretive acquisition, while at the same time, further improving our ratio of net financial debt to Adjusted EBITDA to 2.5x,” added CFO Peter Jackson.

Officials say they are confident in the market growth in higher-margin sales and they are expecting to see normalized gross margin remain above 26% for the next year.


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