Record Results for Builders FirstSource in Second Quarter 2021August 10th, 2021 by Editor
Builders FirstSource Inc. reported its results for the second quarter and six months ended June 30, 2021, all year-over-year comparisons unless otherwise noted, and the company clocked net sales of $5.6 billion for the quarter that increased 186.6%. Builders FirstSource credits this increase on the merger with BMC, commodity inflation, and strong organic growth, which also helped the company log a gross profit of $1.6 billion, an increase of 206.0%. The company’s net income was $497.2 million, or $2.39 per diluted share, and it had an adjusted net income of $574.0 million, or $2.76 per diluted share.
“Our record second quarter and first half earnings were the result of the hard work and strong execution by our more than 26,000 team members, who are relentless in providing superior customer service in a very challenging and volatile supply environment. In the second quarter, we delivered core organic sales growth of 35% along with record gross profit, Adjusted EBITDA and margin. Our strong results accelerated in the second quarter as we continued to expand our value-added offerings while maintaining our focus on operational excellence and providing outstanding customer service,” said Dave Flitman, Builders FirstSource CEO. “Demand in single-family housing remains exceptionally strong and we continue to capitalize on this positive trend while ensuring we meet the needs of our customers. The BMC integration continues to progress exceptionally well, and our realization of cost synergies is ahead of schedule. Looking forward, we remain focused on executing our strategy of investing both organically and through M&A to shift our portfolio toward high-value and faster-growth categories while simultaneously improving efficiencies in the value chain through enhanced digital capabilities. We acquired Alliance Lumber in Arizona and we are thrilled to be welcoming those new associates to the BFS team. Our future is bright, our hunger to innovate has never been stronger, and we will continue going above and beyond for our customers and partners to provide best-in-class homebuilding solutions.”
CFO Peter Jackson added, “Our record sales, Adjusted EBITDA, and gross margin reflect our ability to successfully manage through unprecedented commodity price volatility, as well as capture cost synergies from our merger with BMC. Given our strong year-to-date performance, we are increasing annual guidance for sales and Adjusted EBITDA by 12% and 28% at the respective midpoints. As part of our capital deployment strategy, we are setting our leverage target at 1.0x to 2.0x at this point in the building cycle, which is in line with our commitment to maintain a strong, working balance sheet. Furthermore, our sustained cash generation and recently announced senior notes offering collectively provide us with a strong foundation to deploy capital opportunistically and drive additional shareholder value.”