Builders FirstSource, Inc. (Nasdaq: BLDR)
today reported its results for the first quarter ending March 31,
2020.
First Quarter 2020 Highlights:
- Net sales increased by 9.5%, with strong activity levels
through most of the quarter
- Core organic growth of 3.9%,
excluding acquisitions, commodity impacts and differences in
selling days- Acquisitions contributed growth of 3.5% and one
additional selling day increased sales by 1.7%
- Adjusted EBITDA of $97 million, reflecting 5.4% of net sales,
and expected normalization of gross margin percentage
- Net income of $8.8 million, or $0.07 per diluted share, and
adjusted net income of $40.2 million, or $0.34 per diluted
share
- Strong quarter end balance sheet with a net debt to Adjusted
EBITDA ratio of 2.8x and liquidity of $671.7 million, including
$163.9 million of cash on hand plus availability under our
revolving credit facility.
- In April, further expanded liquidity to approximately $1.0
billion with a $350.0 million offering of additional senior notes
due 2027
CEO Chad Crow said, “Our thoughts are with those impacted by the
COVID-19 crisis. During these unprecedented times, I am incredibly
proud of how the Builders FirstSource team has responded to take
care of each other, our customers and our communities. 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. 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.”
Mr. Crow continued, “The evolving pandemic response efforts by
local governments and health authorities have limited our near term
visibility on industry demand. In this environment, we have
sharpened our focus on the controllable aspects of our business,
including structural adjustments to our operations and capital
resources, to more flexibly address the potentially volatile period
ahead. While the future is uncertain, we are confident that our
leading position in an essential industry, together with our
ability to streamline the homebuilding process with our value-added
products, will help us succeed and emerge as a stronger Company
once the economy reopens.”
CFO Peter Jackson added “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. As of April, our balance sheet is well situated with
approximately $1.0 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. We believe the steps we are taking to fortify our
business in these unprecedented times will position us for
meaningful value creation as we move beyond this global
pandemic.”
First Quarter 2020 Compared to First Quarter 2019:
Net Sales
- Net sales for the first quarter ending March 31, 2020 were $1.8
billion, a 9.5% increase compared to a year ago. Core organic
growth increased by 3.9%, acquisitions contributed 3.5%, one
additional selling day added 1.7% and commodity price inflation
added 0.4% 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 9.0% in our Windows, Doors, and Millwork product
category. We achieved higher sales estimated volume in all product
categories with the exception of gypsum, roofing and
insulation.
- Demand increased across our three customer end markets.
Single-family, repair and remodel / other and multi-family
estimated sales volume grew on a per day basis by 7.9%, 2.2% and
19%, respectively. Core organic growth in our single-family end
market increased by 3.3%.
Gross Margin
- Gross margin was $465.4 million, an increase of $23.4 million,
or 5.3%, over the prior year. Gross margin percentage was 26.0%, a
decline of approximately 110 basis points compared to the prior
year period. The decrease was attributable to the expected
normalization in our lumber and lumber sheet goods product category
gross margin percentage compared to the prior year period in which
we experienced a particularly strong gross margin percentage due to
commodity deflation.
Selling, General and Administrative Expenses
- As a percentage of sales, SG&A improved slightly to
22.6%.
- SG&A increased by approximately $34.4 million mainly due to
higher compensation related to the increase in net sales and rising
insurance expenses. Higher depreciation expense also contributed to
the increase.
Interest Expense
- Interest expense increased by $27.0 million to $51.9 million
compared to the same period last year. This increase was primarily
attributable to one-time charges of $28.0 million related to the
redemption and extinguishment of our senior secured notes due 2024
and 2027 described below. Excluding these charges, interest expense
decreased by $1.0 million due to lower interest rates in the first
quarter of 2020 compared to the prior year period.
Income Tax Expense
- Income tax expense in the first quarter of 2020 was $0.2
million versus $11.3 million in the prior year period. The decrease
in the tax expense was primarily driven by a decrease in earnings
before tax in the current period.
Adjusted Net Income
- Net income was $8.8 million, or $0.07 per diluted share,
compared to $35.7 million, or $0.31 per diluted share, in the same
period a year ago.
- Adjusted net income of $40.2 million, or $0.34 per diluted
share, remained steady compared to $39.8 million, or $0.34 per
diluted share, in the prior year period for the reasons described
above.
Adjusted EBITDA
- Adjusted EBITDA decreased $3.9 million to $97.0 million, or
3.9%. The decline was largely driven by the normalization in our
gross margin percentage in the first quarter of 2020. As a result,
Adjusted EBITDA margin declined to 5.4% of sales from 6.2% in the
same period a year ago.
Strong Capital Structure, Leverage, and Liquidity Position:
- We ended the first quarter 2020 with a solid capital position
and balance sheet to effectively operate during the COVID-19
crisis. We have initiated additional steps to further enhance our
financial flexibility, liquidity and cash flow, including
minimizing capital expenditures, optimizing working capital,
limiting operating expenses, tightly managing corporate spend, and
reducing board and senior management pay, among other actions such
as our recently completed offering of senior notes.
- Liquidity as of March 31, 2020 was $671.7 million, consisting
of $163.9 million cash on hand and $507.8 million net borrowing
availability under our revolving credit facility.
- Net debt was $1,415.2 million as of March 31, 2020. The net
debt to Adjusted EBITDA leverage ratio stood at 2.8x, a decrease of
0.2x as compared to March 31, 2019.
- Cash used by operating activities was $50.7 million, due to
seasonal working capital needs.
- Cash used in investing activities was $43.9 million in the
first quarter including $15.9 million used for our acquisitions and
capital expenditures of $28.5 million.
- In January 2020, we acquired certain assets and the operations
of Bianchi & Company, Inc. (“Bianchi”), a supplier and
installer of interior and exterior doors, crown moldings, open
stair rail, chair rail, wainscoting, commercial hollow metal frames
and doors and other custom millwork to its customers in the
Carolina markets, with annualized revenue of approximately $30
million. Bianchi represented our fifth tuck-in acquisition since
July 2019, which in aggregate have added approximately $240 million
in annualized value-added net sales.
- In February of 2020, we issued $550.0 million in aggregate
principal amount of senior secured notes due 2030. Proceeds
were used to redeem the remaining $503.9 million in aggregate
principal amount of our senior secured notes due 2024, as well as
partially redeem $47.5 million in aggregate principal amount of our
senior secured notes due 2027, and to pay related transaction
premiums, fees and expenses.
- In April of 2020, we completed a private offering of an
additional $350.0 million in aggregate principal amount of senior
secured notes due 2027. Proceeds were used to repay the funds drawn
under our revolving credit facility and to pay related transaction
fees and expenses, with the remaining portion available as cash on
hand.
Business Outlook:
- As previously communicated, we have withdrawn our previous full
year 2020 outlook, which did not contemplate the impacts of
COVID-19. Due to the evolving macro-economic uncertainty in the
current homebuilding environment, we are not able to estimate the
full duration and magnitude of the COVID-19 impact on our full year
financial results with reasonable accuracy. Similarly, we have
limited visibility on the timing and pace of anticipated local
market recoveries across our diverse geographic footprint. For now,
we are planning for weak demand levels to persist at least through
the second quarter of 2020. We will continue to closely monitor
market conditions while focusing on controllable aspects of our
business, such as cost management and cash generation.
Mr. Jackson concluded, “We have a prudently levered balance
sheet and strong liquidity position to face the challenges ahead.
While overall first quarter results were strong, the economic
impact of COVID-19 slowed our momentum during the final week of
March. This dynamic continued into April, resulting in a high
single digit decline in Core Organic net sales for the month. This
was due to some builders shutting down certain construction sites,
understaffing at some critical government offices, and more complex
logistics to accommodate general precautions at construction sites
to limit spread of the virus, as well as numerous social distancing
guidelines deferring some near-term home buying activity. While the
market environment is likely to weaken through the second quarter
2020, we believe there will be a continued base level of demand for
our essential products and services. Our superior product offering,
financial strength and commitment to safety makes us the supplier
of choice for building materials and value-added products in the
months and years to come.”
The Company has provided supplemental non-GAAP financial
information for the consolidated company that is adjusted to
exclude one-time integration, one-time refinancing, and other costs
(“Adjusted”). As the information herein includes non-GAAP financial
information, please refer to the accompanying financial schedules
for non-GAAP reconciliations to their GAAP equivalents.
Conference CallBuilders FirstSource will host a conference call
Friday, May 1, 2020 at 9:00 a.m. Central Time (CT) and will
simultaneously broadcast it live on the Internet. The earnings
release presentation will be posted at www.bldr.com under the
“investors” section after the market closes on Thursday, April
30th. To participate in the teleconference, please dial into
the call a few minutes before the start time: 800-479-1004 (U.S.
and Canada) and 323-794-2598 (international), Conference ID:
2283654. A replay of the call will be available at 1:00 p.m.
Central Time through May 16th. To access the
replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820
(international) and refer to pass code 2283654. 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 FirstSourceHeadquartered 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 approximately 400
locations and have a market presence in 77 of the top 100
Metropolitan Statistical Areas, providing geographic diversity and
balanced end market exposure. We service customers from
strategically located distribution 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 recent novel coronavirus disease 2019 (also known as
“COVID-19”) pandemic, 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:Binit SanghviVP Investor
Relations
Builders FirstSource, Inc.(214)
765-3804
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS AND
COMPREHENSIVE INCOME
|
Three Months EndedMarch 31, |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited)(In thousands, except per share
amounts) |
|
Net sales |
$ |
1,787,021 |
|
|
$ |
1,631,300 |
|
Cost of sales |
|
1,321,608 |
|
|
|
1,189,325 |
|
Gross margin |
|
465,413 |
|
|
|
441,975 |
|
Selling, general and
administrative expenses |
|
404,466 |
|
|
|
370,084 |
|
Income from operations |
|
60,947 |
|
|
|
71,891 |
|
Interest expense, net |
|
51,931 |
|
|
|
24,901 |
|
Income before income taxes |
|
9,016 |
|
|
|
46,990 |
|
Income tax expense |
|
249 |
|
|
|
11,282 |
|
Net income |
$ |
8,767 |
|
|
$ |
35,708 |
|
Comprehensive income |
$ |
8,767 |
|
|
$ |
35,708 |
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
0.31 |
|
Diluted |
$ |
0.07 |
|
|
$ |
0.31 |
|
Weighted average common
shares: |
|
|
|
|
|
|
|
Basic |
|
116,258 |
|
|
|
115,425 |
|
Diluted |
|
117,494 |
|
|
|
116,531 |
|
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
|
March 31,
2020 |
|
|
December
31,2019 |
|
|
|
|
|
|
|
|
(Unaudited)(In
thousands, except per share amounts) |
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
163,872 |
|
|
$ |
14,096 |
|
Accounts receivable, less allowances of $18,496 and $13,492 at
March 31, 2020 and December 31, 2019, respectively |
|
702,192 |
|
|
|
614,946 |
|
Other receivables |
|
54,647 |
|
|
|
77,447 |
|
Inventories, net |
|
640,048 |
|
|
|
561,255 |
|
Other current assets |
|
44,122 |
|
|
|
39,123 |
|
Total current assets |
|
1,604,881 |
|
|
|
1,306,867 |
|
Property, plant and equipment,
net |
|
730,738 |
|
|
|
721,887 |
|
Operating lease right-of-use
assets, net |
|
285,964 |
|
|
|
292,684 |
|
Goodwill |
|
777,283 |
|
|
|
769,022 |
|
Intangible assets, net |
|
132,165 |
|
|
|
128,388 |
|
Deferred income taxes |
|
8,393 |
|
|
|
8,417 |
|
Other assets, net |
|
21,934 |
|
|
|
22,225 |
|
Total assets |
$ |
3,561,358 |
|
|
$ |
3,249,490 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
551,548 |
|
|
|
436,823 |
|
Accrued liabilities |
|
223,319 |
|
|
|
308,950 |
|
Current portion of operating lease liabilities |
|
61,628 |
|
|
|
61,653 |
|
Current maturities of long-term debt |
|
22,518 |
|
|
|
13,875 |
|
Total current liabilities |
|
859,013 |
|
|
|
821,301 |
|
Noncurrent portion of
operating lease liabilities |
|
230,355 |
|
|
|
236,948 |
|
Long-term debt, net of current
maturities, debt discount, and debt issuance costs |
|
1,545,211 |
|
|
|
1,277,398 |
|
Deferred income taxes |
|
37,496 |
|
|
|
36,645 |
|
Other long-term
liabilities |
|
55,745 |
|
|
|
52,245 |
|
Total liabilities |
|
2,727,820 |
|
|
|
2,424,537 |
|
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; 116,545
and 116,052 shares issued and outstanding at March 31, 2020 and
December 31, 2019, respectively |
|
1,165 |
|
|
|
1,161 |
|
Additional paid-in capital |
|
574,769 |
|
|
|
574,955 |
|
Retained earnings |
|
257,604 |
|
|
|
248,837 |
|
Total stockholders' equity |
|
833,538 |
|
|
|
824,953 |
|
Total liabilities and stockholders' equity |
$ |
3,561,358 |
|
|
$ |
3,249,490 |
|
BUILDERS FIRSTSOURCE, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH
FLOWS
|
Three months endedMarch 31, |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited)(In thousands) |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income |
$ |
8,767 |
|
|
$ |
35,708 |
|
Adjustments to reconcile net
income to net cash from operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
29,400 |
|
|
|
23,576 |
|
Amortization of debt issuance costs and debt discount |
|
684 |
|
|
|
1,149 |
|
Loss (gain) on extinguishment of debt |
|
5,349 |
|
|
|
(680 |
) |
Deferred income taxes |
|
875 |
|
|
|
9,638 |
|
Stock compensation expense |
|
3,254 |
|
|
|
2,659 |
|
Gain on sale of assets |
|
(133 |
) |
|
|
(464 |
) |
Changes in assets and
liabilities, net of assets acquired and liabilities assumed: |
|
|
|
|
|
|
|
Receivables |
|
(61,998 |
) |
|
|
22,703 |
|
Inventories |
|
(78,591 |
) |
|
|
(38,603 |
) |
Other current assets |
|
(5,000 |
) |
|
|
4,732 |
|
Other assets and liabilities |
|
26,286 |
|
|
|
(1,319 |
) |
Accounts payable |
|
108,295 |
|
|
|
47,371 |
|
Accrued liabilities |
|
(87,842 |
) |
|
|
(100,395 |
) |
Net cash provided by (used in) operating activities |
|
(50,654 |
) |
|
|
6,075 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(28,498 |
) |
|
|
(21,524 |
) |
Proceeds from sale of property, plant and equipment |
|
538 |
|
|
|
720 |
|
Cash used for acquisitions |
|
(15,893 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(43,853 |
) |
|
|
(20,804 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Borrowings under revolving credit facility |
|
681,000 |
|
|
|
374,000 |
|
Repayments under revolving credit facility |
|
(398,000 |
) |
|
|
(331,000 |
) |
Proceeds from long-term debt and other loans |
|
550,000 |
|
|
|
— |
|
Repayments of long-term debt and other loans |
|
(554,263 |
) |
|
|
(24,440 |
) |
Payments of debt extinguishment costs |
|
(22,686 |
) |
|
|
— |
|
Payments of loan costs |
|
(8,332 |
) |
|
|
— |
|
Exercise of stock options |
|
398 |
|
|
|
216 |
|
Repurchase of common stock |
|
(3,834 |
) |
|
|
(2,450 |
) |
Net cash provided by financing activities |
|
244,283 |
|
|
|
16,326 |
|
Net change in cash and cash
equivalents |
|
149,776 |
|
|
|
1,597 |
|
Cash and cash equivalents at
beginning of period |
|
14,096 |
|
|
|
10,127 |
|
Cash and cash equivalents at
end of period |
$ |
163,872 |
|
|
$ |
11,724 |
|
Supplemental disclosure of non-cash activities
Purchases of property, plant and equipment included in accounts
payable were $5.2 million and $1.9 million for the three months
ended March 31, 2020 and 2019, respectively.
The Company acquired assets under operating lease obligations of
$9.5 million and $15.7 million for the three months ended March 31,
2020 and 2019, respectively. Additionally, the Company
acquired assets under finance lease obligations of $2.7 million and
$2.7 million for the three months ended March 31, 2020 and 2019,
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 8K filed with the Securities and Exchange
Commission on April 30, 2020. |
|
|
|
|
|
|
|
|
|
Three months
ended March 31, |
|
Twelve months ended March 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
Reconciliation to Adjusted EBITDA: |
|
|
|
|
|
|
GAAP Net
Income |
$ |
8.8 |
|
|
$ |
35.7 |
|
|
$ |
194.9 |
|
|
Acquisition
and Integration Expense |
|
3.4 |
|
|
|
4.8 |
|
|
|
11.7 |
|
|
Debt
issuance and refinancing cost (1) |
|
28.0 |
|
|
|
(0.7 |
) |
|
|
38.9 |
|
|
Adjusted Net
Income |
|
40.2 |
|
|
|
39.8 |
|
|
|
245.5 |
|
|
Weighted
average diluted common shares (in millions) |
|
117.5 |
|
|
|
116.5 |
|
|
|
|
Diluted
adjusted net income per share: |
$ |
0.34 |
|
|
$ |
0.34 |
|
|
|
|
Reconciling
items: |
|
|
|
|
|
|
Depreciation and amortization expense |
|
29.4 |
|
|
|
23.6 |
|
|
|
105.9 |
|
|
Interest expense, net |
|
23.9 |
|
|
|
25.6 |
|
|
|
97.7 |
|
|
Income tax (benefit) expense |
|
0.2 |
|
|
|
11.3 |
|
|
|
49.9 |
|
|
Stock compensation expense |
|
3.3 |
|
|
|
2.7 |
|
|
|
12.9 |
|
|
(Gain)/loss on sale and asset impairments |
|
(0.2 |
) |
|
|
(2.4 |
) |
|
|
(0.7 |
) |
|
Other management-identified adjustments (2) |
|
0.2 |
|
|
|
0.3 |
|
|
|
1.0 |
|
|
Adjusted EBITDA |
$ |
97.0 |
|
|
$ |
100.9 |
|
|
$ |
512.2 |
|
|
Adjusted EBITDA Margin |
|
5.4 |
% |
|
|
6.2 |
% |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
(1) Costs associated with issuing and extinguishing long term debt
in 2020 and 2019. |
|
|
|
|
(2)
Primarily relates to severance and one time cost. |
|
|
|
|
|
|
|
|
|
|
|
|
|
BUILDERS
FIRSTSOURCE, INC. AND SUBSIDIARIES |
|
Financial
Data |
|
(adjusted
and unaudited) |
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions except
per share amounts) |
|
Net
sales |
|
1,787.0 |
|
|
|
1,631.3 |
|
|
Gross margin |
|
465.4 |
|
|
|
442.0 |
|
|
Gross margin % |
|
26.0 |
% |
|
|
27.1 |
% |
|
Adjusted SG&A/Other (excluding depreciation and amortization)
as a % of sales (1) |
|
20.6 |
% |
|
|
20.9 |
% |
|
Adjusted
EBITDA |
|
97.0 |
|
|
|
100.9 |
|
|
Adjusted EBITDA margin % |
|
5.4 |
% |
|
|
6.2 |
% |
|
Depreciation
and amortization |
|
(29.4 |
) |
|
|
(23.6 |
) |
|
Interest
expense, net of debt issuance cost and refinancing |
|
(23.9 |
) |
|
|
(25.6 |
) |
|
Income tax
expense |
|
(0.2 |
) |
|
|
(11.3 |
) |
|
Other
adjustments |
|
(3.3 |
) |
|
|
(0.6 |
) |
|
Adjusted Net Income |
$ |
40.2 |
|
|
$ |
39.8 |
|
|
Basic
adjusted net income per share: |
$ |
0.35 |
|
|
$ |
0.34 |
|
|
Diluted
adjusted net income per share: |
$ |
0.34 |
|
|
$ |
0.34 |
|
|
Weighted
average common shares (in millions) |
|
|
|
|
Basic |
|
116.3 |
|
|
|
115.4 |
|
|
Diluted |
|
117.5 |
|
|
|
116.5 |
|
|
|
|
|
|
|
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 April
30, 2020. |
|
|
|
(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 Q1-20 of $404.5M less $29.4M depreciation |
|
and amortization, less $3.4M of acquisition and integration
expenses, less $3.3M of stock comp. |
|
|
|
|
|
|
BUILDERS
FIRSTSOURCE, INC. AND SUBSIDIARIES |
Sales
by Product Category |
(adjusted
and unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Net Sales |
|
% of Net Sales |
|
Net Sales |
|
% of Net Sales |
% Change |
% Change Per Day |
% Core Organic (1) |
Manufactured
Products |
$ |
354.5 |
|
|
19.8 |
% |
|
$ |
317.4 |
|
|
19.5 |
% |
11.7 |
% |
9.9 |
% |
3.9 |
% |
Windows,
Doors & Millwork |
|
391.3 |
|
|
21.9 |
% |
|
|
353.4 |
|
|
21.7 |
% |
10.7 |
% |
9.0 |
% |
6.9 |
% |
Value-Added Products |
|
745.8 |
|
|
41.7 |
% |
|
|
670.8 |
|
|
41.2 |
% |
11.2 |
% |
9.4 |
% |
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gypsum,
Roofing & Insulation |
|
110.8 |
|
|
6.2 |
% |
|
|
120.9 |
|
|
7.4 |
% |
-8.4 |
% |
-9.8 |
% |
-9.9 |
% |
Siding,
Metal & Concrete Products |
|
168.9 |
|
|
9.5 |
% |
|
|
149.9 |
|
|
9.2 |
% |
12.7 |
% |
10.9 |
% |
7.7 |
% |
Other |
|
209.0 |
|
|
11.7 |
% |
|
|
172.0 |
|
|
10.5 |
% |
21.5 |
% |
19.6 |
% |
6.3 |
% |
Specialized Products |
|
488.7 |
|
|
27.4 |
% |
|
|
442.8 |
|
|
27.1 |
% |
10.4 |
% |
8.6 |
% |
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Lumber &
Lumber Sheet Goods |
$ |
552.5 |
|
|
30.9 |
% |
|
$ |
517.7 |
|
|
31.7 |
% |
6.7 |
% |
5.1 |
% |
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Total adjusted net sales |
$ |
1,787.0 |
|
|
100.0 |
% |
|
$ |
1,631.3 |
|
|
100.0 |
% |
9.5 |
% |
7.8 |
% |
3.9 |
% |
(1) Core
Organic Growth excludes acquisitions, commodity price fluctuations
and differences in selling days between periods. |
Note: In
Millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUILDERS
FIRSTSOURCE, INC. AND SUBSIDIARIES |
|
Interest
Reconciliation |
|
(unaudited) |
|
|
|
|
|
|
|
|
Three months
ended March 31, |
|
|
|
2020 |
|
|
|
Interest Expense |
|
Net Debt Outstanding |
|
|
|
|
|
|
|
|
|
(in millions) |
|
2030 Secured Notes @ 5% Fixed |
$ |
3.7 |
|
|
$ |
550.0 |
|
|
|
2027 Secured Notes @ 6.75% Fixed |
|
7.7 |
|
|
|
427.5 |
|
|
|
2024 Secured Notes @ 5.625% Fixed |
|
3.9 |
|
|
|
- |
|
|
|
2024 Term Loan @ 4.7% (Floating LIBOR) |
|
0.6 |
|
|
|
52.0 |
|
|
|
Revolving Credit Facility @ 4.1% (Floating LIBOR) |
|
1.9 |
|
|
|
310.0 |
|
|
|
Amortization of debt issuance costs, discount and premium |
|
0.7 |
|
|
|
|
|
Finance leases and other finance obligations |
|
5.3 |
|
|
|
239.6 |
|
|
|
Loss on debt extinguishment |
|
28.0 |
|
|
|
|
|
Other |
|
0.1 |
|
|
|
|
|
Cash |
|
|
|
(163.9 |
) |
|
|
Total |
$ |
51.9 |
|
|
$ |
1,415.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31, |
|
|
|
|
|
|
2020 |
|
|
|
|
|
Free Cash Flow |
(in millions) |
|
|
|
|
Operating activities |
$ |
(51 |
) |
|
|
|
|
Less: Capital expenditures |
|
(28 |
) |
|
|
|
|
Free Cash Flow |
$ |
(79 |
) |
|
|
|
|
|
|
|
|
|
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