Builders FirstSource, Inc. (Nasdaq: BLDR)
today reported its results for the second quarter ended June 30,
2018.
Commenting on the results, CEO Chad Crow remarked, “Our team
delivered another quarter of solid revenue and profit growth.
We increased sales by 13.4 percent to $2.1 billion, including
double-digit growth in our higher margin value added products, and
improved Adjusted EBITDA by over 12 percent to $139 million. We
continue to execute on our strategic plan and investments in margin
accretive value added products as well as customer service and
efficiency enhancing initiatives which are targeted to generate
strong, sustained earnings and cash flow growth.”
Peter Jackson, CFO, added, “I am pleased to report that we have
once again demonstrated our ability to deliver strong Adjusted
EBITDA growth in a volatile commodities market. Our team was
able to react quickly to offset the impact of commodity
fluctuations on our gross margin percentage with disciplined cost
management enabling us to maintain Adjusted EBITDA as a percentage
of sales year over year. We continued to fund value creating growth
investments while reducing our leverage ratio by 0.3x versus prior
year, and we remain on track to deleverage below 3.5x by year
end.”
The Company has provided supplemental non-GAAP financial
information of the consolidated company that is adjusted to exclude
one-time integration, facility closure, and other one-time
refinancing and other costs (“Adjusted”). As the information
included below includes non-GAAP financial information, please
refer to the accompanying financial schedules for non-GAAP
reconciliations to their GAAP equivalents.
Second Quarter 2018 Compared to Second Quarter 2017:
Net Sales
- Net sales for the quarter ended June 30, 2018 were $2.1
billion, a 13.4 percent increase over net sales for the second
quarter of 2017, including approximately 8.8 percent from the
impact of commodity price inflation and 4.6 percent from sales
volume growth. Sales volume, excluding commodity inflation, grew
approximately 6.0 percent in the single family homebuilding end
market and 1.8 percent in the repair and remodeling/other end
market, offset by declines in multi-family. Value added products
sales, including our windows, doors and millwork and manufactured
products categories, grew by 11.1 percent.
Gross Margin
- Gross margin of $496.3 million in the second quarter of 2018
increased by $35.5 million over the second quarter of 2017. Gross
margin percentage was 23.7 percent, a decrease of 130 basis points
compared to the second quarter of 2017. Our gross margin
decreased largely due to the sharp rise in commodity prices
relative to our short-term customer pricing commitments. Although
rapid commodity inflation can cause short term gross margin
percentage compression as prices are rising, higher sustained
commodity prices generally benefit the Company’s gross profit and
Adjusted EBITDA dollars.
Selling, General and Administrative Expenses
- SG&A in the second quarter of 2018 was $391.8 million or
18.7 percent of sales, a decrease of 130 basis points versus the
second quarter of 2017. The significant decrease in SG&A as a
percent of sales was driven by cost leverage and continued cost
management, which enabled the company to fully offset the short
term impact of commodity inflation on Adjusted EBITDA as a
percentage of sales.
Interest Expense
- Interest expense in the second quarter of 2018 was $29.0
million compared to $33.7 million in the second quarter of
2017. The year over year reduction is largely a result of
refinancing transactions the Company executed in 2017 to lower go
forward interest, slightly offset by rising market interest
rates.
Income Tax Expense
- Although the Company did not pay federal cash taxes, GAAP
income tax expense in the second quarter of 2018 was $19.0 million
compared to income tax expense of $19.7 million in the second
quarter of 2017. This represents a 25.1% effective tax rate,
which is in line with the company’s balance of year
expectations.
Net Income
- GAAP net income for the second quarter 2018 was $56.6 million,
or $0.49 per diluted share, compared to $37.9 million, or $0.33 per
diluted share, for the second quarter of 2017.
- Adjusted net income was $62.6 million, or $0.54 per diluted
share, compared to $43.0 million, or $0.37 per diluted share, in
the second quarter of 2017. The year over year increase of $19.6
million, or 45.6 percent, was primarily driven by sales growth,
cost management, and lower interest expense.
Adjusted EBITDA
- Second quarter Adjusted EBITDA grew $15.1 million to $139.1
million, or 6.7 percent of sales, compared to $124.0 million, or
6.7 percent of sales, for the second quarter of 2017, an increase
of 12.2 percent. The year over year improvement was largely
driven by sales increases, and strong, sustained cost management
which enabled the company to fully offset the short term impact of
commodity inflation on Adjusted EBITDA as a percentage of
sales.
Year to Date June 30, 2018 Financial Information:
Net Sales
- Net sales year to date were $3.8 billion, a 12.3 percent
increase over the first half of 2017.
Net Income
- In the first half of 2018, GAAP net income was $79.8 million,
or $0.68 per diluted share, compared to $41.7 million, or $0.36 per
diluted share, in the first half of 2017, an increase of $0.32 per
diluted share, or 88.9 percent.
- Adjusted net income was $90.2 million, or $0.77 per diluted
share, compared to $55.1 million, or $0.48 per diluted share, in
the first half of 2017, an increase of $0.29 per diluted
share. The year over year increase of $35.1 million, or 63.7
percent, was primarily driven by the Company’s sales growth,
ongoing cost management, and lower interest expense.
Adjusted EBITDA
- Adjusted EBITDA for the first half of 2018 grew $21.7 million
to $221.8 million, or 5.9 percent of sales, compared to $200.1
million, or 5.9 percent of sales, for the first half of 2017, an
increase of 10.8 percent. The year over year improvement was
primarily attributable to sales growth and ongoing cost management,
offset in part by the impact of commodity inflation on gross
margin.
Capital Structure, Leverage, and Liquidity Information:
- Adjusted EBITDA, on a trailing 12 month basis, was $440.6
million and net debt was $1,972.8 million as of June 30, 2018. The
Company decreased its leverage ratio versus June 30th, 2017 by
0.3x, to 4.5x net debt / Adjusted EBITDA. The Company expects to
reduce its leverage ratio to below 3.5x by year end.
- Due to seasonal working capital needs in the first half, net
cash used in operations and investing was $217.8 million. The
Company expects to generate $170-190 million in cash from
operations and investing activities for the full year 2018, in line
with its full year cash flow guidance.
- Liquidity at June 30, 2018 was $298.0 million, which consisted
of net borrowing availability under the revolving credit facility
and cash on hand.
Please refer to the accompanying financial schedules for more
information.
OutlookConcluding, Mr. Crow added, “I remain extremely confident
in the outlook for Builders FirstSource and our opportunities for
sustained profitable growth. Furthermore, demand in the
housing industry remains strong, lumber cost headwinds are starting
to abate and we continue to grow high margin value added products
faster than the market. We are increasingly capitalizing on
numerous opportunities by leveraging our national footprint, strong
customer relationships, end market diversity, and operational
excellence initiatives as well as creating meaningful value through
our focused initiatives on cost efficiencies and differentiated
customer service offerings. I want to thank all of our talented
associates for their exceptional execution, hard work and once
again delivering such strong results.”
Conference Call
Builders FirstSource will host a conference call Wednesday,
August 8, 2018 at 9:00 a.m. Central Time (CT) and will
simultaneously broadcast it live over the Internet. The earnings
release presentation will be posted at www.bldr.com under the
“investors” section before the call. To participate in the
teleconference, please dial into the call a few minutes before the
start time: 855-719-5012 (U.S. and Canada) and 334-323-0522
(international), Conference ID: 1068561. A replay of the call
will be available at 1:00 p.m. Central Time through August
18th. To access the replay, please dial
888-203-1112 (U.S. and Canada) and 719-457-0820 (international) and
refer to pass code 1068561. The live webcast and archived replay
can also be accessed on the Company's website at www.bldr.com under
the “Investors” section. The online archive of the webcast
will be available for approximately 90 days.
About Builders FirstSource
2017 Sales: $7.0 Billion | Associates:
15 Thousand | Operations in 40 states
Headquartered in Dallas, Texas, Builders FirstSource is the
largest U.S supplier of building products, prefabricated
components, and value-added services to the professional market
segment for new residential construction and repair and
remodeling. We provide customers an integrated homebuilding
solution, offering manufacturing, supply, delivery and installation
of a full range of structural and related building products.
We operate in 40 states with over 400 locations and have a market
presence in 75 of the top 100 Metropolitan Statistical Areas,
providing geographic diversity and balanced end market
exposure. We service customers from strategically located
distribution facilities and manufacturing facilities (certain of
which are co-located) that produce value-added products such as
roof and floor trusses, wall panels, stairs, vinyl windows, custom
millwork and pre-hung doors. Builders FirstSource also distributes
dimensional lumber and lumber sheet goods, millwork, windows,
interior and exterior doors, and other building products. For more
information about Builders FirstSource, visit the Company’s website
at www.bldr.com.
Cautionary NoticeStatements in this news release
and the schedules hereto that are not purely historical facts or
that necessarily depend upon future events, including statements
about expected market share gains, forecasted financial performance
or other statements about anticipations, beliefs, expectations,
hopes, intentions or strategies for the future, may be
forward-looking statements within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended. Readers
are cautioned not to place undue reliance on forward-looking
statements. In addition, oral statements made by our
directors, officers and employees to the investor and analyst
communities, media representatives and others, depending upon their
nature, may also constitute forward-looking statements. As with the
forward-looking statements included in this release, these
forward-looking statements are by nature inherently uncertain, and
actual results may differ materially as a result of many
factors. All forward-looking statements are based upon
information available to Builders FirstSource, Inc. on the date
this release was submitted. Builders FirstSource, Inc.
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Any forward-looking statements involve
risks and uncertainties that could cause actual events or results
to differ materially from the events or results described in the
forward-looking statements, including risks or uncertainties
related to the Company’s growth strategies, including gaining
market share, or the Company’s revenues and operating results being
highly dependent on, among other things, the homebuilding industry,
lumber prices and the economy. Builders FirstSource, Inc. may
not succeed in addressing these and other risks. Further
information regarding factors that could affect our financial and
other results can be found in the risk factors section of
Builders FirstSource, Inc.’s most recent annual report on
Form 10-K filed with the Securities and Exchange
Commission. Consequently, all forward-looking statements in
this release are qualified by the factors, risks and uncertainties
contained therein.
Contact:Jennifer Pasquino SVP Investor RelationsBuilders
FirstSource, Inc.(303) 262-8571
Binit SanghviVP Investor RelationsBuilders FirstSource,
Inc.(214) 765-3804
Financial Schedules to
Follow
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS AND COMPREHENSIVE INCOME
|
Three Months EndedJune
30, |
|
|
Six Months EndedJune
30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
(Unaudited)(In thousands,
except per share amounts) |
|
Sales |
$ |
2,089,888 |
|
|
$ |
1,843,297 |
|
|
$ |
3,790,324 |
|
|
$ |
3,376,361 |
|
Cost of sales |
|
1,593,560 |
|
|
|
1,382,500 |
|
|
|
2,882,944 |
|
|
|
2,539,512 |
|
Gross
margin |
|
496,328 |
|
|
|
460,797 |
|
|
|
907,380 |
|
|
|
836,849 |
|
Selling, general and
administrative expenses |
|
391,769 |
|
|
|
369,456 |
|
|
|
750,677 |
|
|
|
705,231 |
|
Income
from operations |
|
104,559 |
|
|
|
91,341 |
|
|
|
156,703 |
|
|
|
131,618 |
|
Interest expense,
net |
|
28,957 |
|
|
|
33,710 |
|
|
|
55,699 |
|
|
|
69,867 |
|
Income
before income taxes |
|
75,602 |
|
|
|
57,631 |
|
|
|
101,004 |
|
|
|
61,751 |
|
Income tax expense |
|
18,980 |
|
|
|
19,721 |
|
|
|
21,162 |
|
|
|
20,019 |
|
Net
Income |
$ |
56,622 |
|
|
$ |
37,910 |
|
|
$ |
79,842 |
|
|
$ |
41,732 |
|
Comprehensive Income |
$ |
56,622 |
|
|
$ |
37,910 |
|
|
$ |
79,842 |
|
|
$ |
41,732 |
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.49 |
|
|
$ |
0.34 |
|
|
$ |
0.70 |
|
|
$ |
0.37 |
|
Diluted |
$ |
0.49 |
|
|
$ |
0.33 |
|
|
$ |
0.68 |
|
|
$ |
0.36 |
|
Weighted average common
shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
114,636 |
|
|
|
112,443 |
|
|
|
114,365 |
|
|
|
112,205 |
|
Diluted |
|
116,693 |
|
|
|
115,465 |
|
|
|
116,695 |
|
|
|
115,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEET
|
June 30,
2018 |
|
|
December
31,2017 |
|
|
(Unaudited)(In
thousands, except per share amounts) |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
13,196 |
|
|
$ |
57,533 |
|
Accounts
receivable, less allowances of $13,437 and $11,771 at June 30, 2018
and December 31, 2017, respectively |
|
820,396 |
|
|
|
631,992 |
|
Other
receivables |
|
71,345 |
|
|
|
71,232 |
|
Inventories, net |
|
782,757 |
|
|
|
601,547 |
|
Other
current assets |
|
39,258 |
|
|
|
33,564 |
|
Total
current assets |
|
1,726,952 |
|
|
|
1,395,868 |
|
Property, plant and
equipment, net |
|
655,572 |
|
|
|
639,303 |
|
Assets held for
sale |
|
8,153 |
|
|
|
5,273 |
|
Goodwill |
|
740,411 |
|
|
|
740,411 |
|
Intangible assets,
net |
|
119,424 |
|
|
|
132,567 |
|
Deferred income
taxes |
|
55,726 |
|
|
|
75,105 |
|
Other assets, net |
|
16,614 |
|
|
|
17,597 |
|
Total
assets |
$ |
3,322,852 |
|
|
$ |
3,006,124 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Checks
outstanding |
$ |
19,849 |
|
|
$ |
— |
|
Accounts
payable |
|
562,549 |
|
|
|
514,282 |
|
Accrued
liabilities |
|
250,381 |
|
|
|
271,597 |
|
Current
maturities of long-term debt and lease obligations |
|
13,971 |
|
|
|
12,475 |
|
Total
current liabilities |
|
846,750 |
|
|
|
798,354 |
|
Long-term debt and
lease obligations, net of current maturities, debt discount and
debt issuance costs |
|
1,954,243 |
|
|
|
1,771,945 |
|
Other long-term
liabilities |
|
60,388 |
|
|
|
59,616 |
|
Total
liabilities |
|
2,861,381 |
|
|
|
2,629,915 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
|
|
|
Preferred stock, $0.01
par value, 10,000 shares authorized; zero shares issued and
outstanding |
|
— |
|
|
|
— |
|
Common stock, $0.01 par
value, 200,000 shares authorized; 114,671 and 113,572 shares
issued and outstanding at June 30, 2018 and December 31,
2017, respectively |
|
1,147 |
|
|
|
1,136 |
|
Additional paid-in capital |
|
550,707 |
|
|
|
546,766 |
|
Accumulated deficit |
|
(90,383 |
) |
|
|
(171,693 |
) |
Total
stockholders' equity |
|
461,471 |
|
|
|
376,209 |
|
Total
liabilities and stockholders' equity |
$ |
3,322,852 |
|
|
$ |
3,006,124 |
|
|
|
|
|
|
|
|
|
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
Six Months EndedJune
30, |
|
|
2018 |
|
|
2017 |
|
|
(Unaudited)(In
thousands) |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
79,842 |
|
|
$ |
41,732 |
|
Adjustments to
reconcile net income to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
47,587 |
|
|
|
47,765 |
|
Amortization and write-off of debt issuance costs and debt
discount |
|
2,308 |
|
|
|
3,790 |
|
Deferred
income taxes |
|
18,863 |
|
|
|
15,573 |
|
Stock
compensation expense |
|
6,428 |
|
|
|
6,379 |
|
Net loss
(gain) on sale of assets and asset impairments |
|
(326 |
) |
|
|
2,988 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
Receivables |
|
(177,765 |
) |
|
|
(148,089 |
) |
Inventories |
|
(189,925 |
) |
|
|
(107,865 |
) |
Other
current assets |
|
(5,693 |
) |
|
|
(3,605 |
) |
Other
assets and liabilities |
|
2,498 |
|
|
|
3,417 |
|
Accounts
payable and checks outstanding |
|
67,129 |
|
|
|
89,226 |
|
Accrued
liabilities |
|
(19,915 |
) |
|
|
(27,657 |
) |
Net cash
used in operating activities |
|
(168,969 |
) |
|
|
(76,346 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Purchases
of property, plant and equipment |
|
(49,948 |
) |
|
|
(24,568 |
) |
Proceeds
from sale of property, plant and equipment |
|
1,075 |
|
|
|
2,004 |
|
Net cash
used in investing activities |
|
(48,873 |
) |
|
|
(22,564 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Borrowings under revolving credit facility |
|
904,000 |
|
|
|
687,000 |
|
Repayments under revolving credit facility |
|
(721,000 |
) |
|
|
(588,000 |
) |
Repayments of long-term debt and other loans |
|
(6,852 |
) |
|
|
(5,294 |
) |
Payments
of loan costs |
|
— |
|
|
|
(2,799 |
) |
Exercise
of stock options |
|
2,212 |
|
|
|
2,958 |
|
Repurchase of common stock |
|
(4,855 |
) |
|
|
(2,473 |
) |
Net cash
provided by financing activities |
|
173,505 |
|
|
|
91,392 |
|
Net change in cash and
cash equivalents |
|
(44,337 |
) |
|
|
(7,518 |
) |
Cash and cash
equivalents at beginning of period |
|
57,533 |
|
|
|
14,449 |
|
Cash and cash
equivalents at end of period |
$ |
13,196 |
|
|
$ |
6,931 |
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash activities
For the six months ended June 30, 2018 and 2017 the Company
retired assets subject to lease finance obligations of $0.6 million
and $5.9 million and extinguished the related lease finance
obligation of $0.6 million and $5.9 million, respectively.
The Company purchased equipment which was financed through
capital lease obligations of $6.8 million and $9.9 million in the
six months ended June 30, 2018 and 2017, respectively. In addition,
purchases of property, plant and equipment included in accounts
payable were $3.7 million and $0.2 million for the six months ended
June 30, 2018 and 2017, respectively.
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES Reconciliation of Adjusted Non-GAAP
Financial Measures to their GAAP Equivalents
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: The company provided detailed explanations of these
non-GAAP financial measures in its Form 8-K filed with the
Securities and Exchange Commission on August 7, 2018. |
|
|
|
|
|
|
|
|
|
Three months ended June
30, |
|
Six months ended June
30, |
|
Twelve months ended June
30, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
(in millions except per share amounts) |
Reconciliation
to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
GAAP Net Income |
$ |
56.6 |
|
|
$ |
37.9 |
|
|
$ |
79.8 |
|
|
$ |
41.7 |
|
|
$ |
76.8 |
|
Integration related
expenses |
|
6.0 |
|
|
|
5.1 |
|
|
|
10.4 |
|
|
|
11.0 |
|
|
$ |
20.1 |
|
Debt issuance and
refinancing cost (1) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2.4 |
|
|
|
56.3 |
|
Revaluation of NOL
(2) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
29.0 |
|
Adjusted Net
Income |
|
62.6 |
|
|
|
43.0 |
|
|
|
90.2 |
|
|
|
55.1 |
|
|
|
182.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares (in millions) |
|
116.7 |
|
|
|
115.5 |
|
|
|
116.7 |
|
|
|
115.0 |
|
|
|
Diluted adjusted net
income per share: |
$ |
0.54 |
|
|
$ |
0.37 |
|
|
$ |
0.77 |
|
|
$ |
0.48 |
|
|
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
24.8 |
|
|
|
24.2 |
|
|
|
47.6 |
|
|
|
47.8 |
|
|
$ |
92.8 |
|
Interest
expense, net |
|
29.0 |
|
|
|
33.7 |
|
|
|
55.7 |
|
|
|
67.5 |
|
|
|
122.7 |
|
Income
tax (benefit) expense |
|
19.0 |
|
|
|
19.7 |
|
|
|
21.2 |
|
|
|
20.0 |
|
|
|
25.3 |
|
Stock
compensation expense |
|
3.5 |
|
|
|
3.5 |
|
|
|
6.4 |
|
|
|
6.4 |
|
|
|
13.5 |
|
(Gain)/loss on sale and asset impairments |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
0.1 |
|
|
|
2.9 |
|
|
|
3.5 |
|
Other
management-identified adjustments (3) |
|
0.3 |
|
|
|
0.1 |
|
|
|
0.6 |
|
|
|
0.4 |
|
|
|
0.6 |
|
Adjusted
EBITDA |
$ |
139.1 |
|
|
$ |
124.0 |
|
|
$ |
221.8 |
|
|
$ |
200.1 |
|
|
$ |
440.6 |
|
Adjusted
EBITDA Margin |
|
6.7 |
% |
|
|
6.7 |
% |
|
|
5.9 |
% |
|
|
5.9 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
(1) Cost associated with refinancing long term debt in 2017.(2)
In 2017, the company revalued its NOL tax asset given the tax
reform that allows for a lower federal corporate tax rate.(3)
Primarily relates to severance and one time cost.
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES |
Financial Data |
(adjusted and unaudited) |
|
|
|
|
|
|
|
|
|
Three months ended June
30, |
|
Six months ended June
30, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
(in millions except per share amounts) |
Net sales |
|
2,089.9 |
|
|
|
1,843.3 |
|
|
|
3,790.3 |
|
|
|
3,376.4 |
|
Sales adjustment for
closed locations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net sales
excluding closed locations |
|
2,089.9 |
|
|
|
1,843.3 |
|
|
|
3,790.3 |
|
|
|
3,376.4 |
|
Gross
margin |
|
496.3 |
|
|
|
460.8 |
|
|
|
907.4 |
|
|
|
836.9 |
|
Gross
margin % |
|
23.7 |
% |
|
|
25.0 |
% |
|
|
23.9 |
% |
|
|
24.8 |
% |
Adjusted
SG&A/Other (excluding depreciation and amortization) as a % of
sales (1) |
|
17.1 |
% |
|
|
18.3 |
% |
|
|
18.1 |
% |
|
|
18.9 |
% |
Adjusted EBITDA |
|
139.1 |
|
|
|
124.0 |
|
|
|
221.8 |
|
|
|
200.1 |
|
Adjusted
EBITDA margin % |
|
6.7 |
% |
|
|
6.7 |
% |
|
|
5.9 |
% |
|
|
5.9 |
% |
Depreciation and
amortization |
|
(24.8 |
) |
|
|
(24.2 |
) |
|
|
(47.6 |
) |
|
|
(47.8 |
) |
Interest expense, net
of debt issuance cost and refinancing |
|
(29.0 |
) |
|
|
(33.7 |
) |
|
|
(55.7 |
) |
|
|
(67.5 |
) |
Income tax expense |
|
(19.0 |
) |
|
|
(19.7 |
) |
|
|
(21.2 |
) |
|
|
(20.0 |
) |
Other adjustments |
|
(3.7 |
) |
|
|
(3.4 |
) |
|
|
(7.1 |
) |
|
|
(9.7 |
) |
Adjusted
Net Income |
$ |
62.6 |
|
|
$ |
43.0 |
|
|
$ |
90.2 |
|
|
$ |
55.1 |
|
Basic adjusted net
income per share: |
$ |
0.55 |
|
|
$ |
0.38 |
|
|
$ |
0.79 |
|
|
$ |
0.49 |
|
Diluted adjusted net
income per share: |
$ |
0.54 |
|
|
$ |
0.37 |
|
|
$ |
0.77 |
|
|
$ |
0.48 |
|
Weighted average common
shares (in millions) |
|
|
|
|
|
|
|
Basic |
|
114.6 |
|
|
|
112.4 |
|
|
|
114.4 |
|
|
|
112.2 |
|
Diluted |
|
116.7 |
|
|
|
115.5 |
|
|
|
116.7 |
|
|
|
115.0 |
|
|
|
|
|
|
|
|
|
Note: The company provided detailed explanations of these
non-GAAP financial measures in its Form 8-K filed with the SEC on
August 7, 2018.(1) Adjusted SG&A and other as a percentage of
sales is defined as GAAP SG&A less depreciation and
amortization, stock comp, acquisition, integration and other
expenses. GAAP SG&A in Q2-18 of $391.8M less $24.8M
depreciation and amortization, less $6.0M of integration expenses,
less $3.5M of stock comp and $0.2M loss from sales, impairments,
and other. GAAP SG&A in 1H-18 of $750.7M less $47.6M
depreciation and amortization, less $10.4M of integration expenses,
less $6.4M of stock comp and $0.7M loss from sales, impairments,
and other.
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES |
Sales by Product
Category |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June
30, |
|
|
|
Six months ended June
30, |
|
|
|
2018 |
|
2017 |
|
|
|
2018 |
|
2017 |
|
|
|
Net Sales |
|
% of Net Sales |
|
Net Sales |
|
% of Net Sales |
|
%
Change |
|
Net Sales |
|
% of Net Sales |
|
Net Sales |
|
% of Net Sales |
|
%
Change |
Lumber & Lumber
Sheet Goods |
$ |
811.2 |
|
38.8 |
% |
|
$ |
657.0 |
|
35.6 |
% |
|
23.5 |
% |
|
$ |
1,455.0 |
|
38.4 |
% |
|
$ |
1,187.7 |
|
35.2 |
% |
|
22.5 |
% |
Manufactured
Products |
|
370.9 |
|
17.7 |
% |
|
|
312.5 |
|
17.0 |
% |
|
18.7 |
% |
|
|
665.1 |
|
17.5 |
% |
|
|
582.3 |
|
17.2 |
% |
|
14.2 |
% |
Windows, Doors &
Millwork |
|
375.5 |
|
18.0 |
% |
|
|
359.5 |
|
19.5 |
% |
|
4.5 |
% |
|
|
707.7 |
|
18.7 |
% |
|
|
669.2 |
|
19.8 |
% |
|
5.7 |
% |
Gypsum, Roofing &
Insulation |
|
141.3 |
|
6.8 |
% |
|
|
144.2 |
|
7.8 |
% |
|
-2.1 |
% |
|
|
254.1 |
|
6.7 |
% |
|
|
261.5 |
|
7.8 |
% |
|
-2.8 |
% |
Siding, Metal &
Concrete Products |
|
189.5 |
|
9.1 |
% |
|
|
178.2 |
|
9.7 |
% |
|
6.4 |
% |
|
|
331.7 |
|
8.8 |
% |
|
|
315.4 |
|
9.3 |
% |
|
5.2 |
% |
Other |
|
201.5 |
|
9.6 |
% |
|
|
191.9 |
|
10.4 |
% |
|
5.1 |
% |
|
|
376.7 |
|
9.9 |
% |
|
|
360.3 |
|
10.7 |
% |
|
4.6 |
% |
Total
adjusted net sales |
$ |
2,089.9 |
|
100.0 |
% |
|
$ |
1,843.3 |
|
100.0 |
% |
|
13.4 |
% |
|
$ |
3,790.3 |
|
100.0 |
% |
|
$ |
3,376.4 |
|
100.0 |
% |
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: In Millions
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES |
Interest Reconciliation |
(unaudited) |
|
|
|
|
|
|
|
Three months ended June 30, 2018 |
|
Interest Expense |
|
Net Debt Outstanding |
|
Adjusted FY2018 Forecasted Cash
Interest (1) |
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
2024 Secured Notes @
5.625% Fixed |
$ |
10.5 |
|
$ |
750.0 |
|
|
$ |
42.2 |
2024 Term Loan @ 5.0%
(Floating LIBOR) (2) |
|
6.2 |
|
|
460.6 |
|
|
|
22.8 |
Revolving Credit
Facility @ 3.8% (Floating LIBOR) (2) |
|
5.6 |
|
|
533.0 |
|
|
|
13.7 |
Amortization of
deferred loan costs and debt discount |
|
1.2 |
|
|
- |
|
|
|
- |
Lease finance
obligations and capital leases |
|
5.3 |
|
|
242.4 |
|
|
|
21.1 |
Other |
|
0.2 |
|
|
- |
|
|
|
- |
Cash |
|
- |
|
|
(13.2 |
) |
|
|
- |
Total |
$ |
29.0 |
|
$ |
1,972.8 |
|
|
$ |
99.7 |
|
|
|
|
|
|
(1) Excludes issuance cost and one time items.
Assumes Q2 borrowing rates on variable debt.(2) Assumes
average forecasted 2018 balances for the Term Loan and the
Revolving Credit Facility
Source: Builders FirstSource, Inc.
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