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Builders FirstSource stays ‘on track’

2/20/2018

Builders FirstSource executives were upbeat in their analysis of the Dallas-based building supply giant’s 2015 financial performance.


“I am more confident than ever that the combination of Builders FirstSource and ProBuild will drive significant value for our customers and stockholders,” said CEO Craig Sherman.


Net sales were $1.46 billion for the quarter ended Dec. 31, down 1.1% compared to pro forma sales for the fourth quarter of 2014, excluding the impact of closed locations. Total sales volume grew 7.1% over pro forma fourth quarter 2014, but was offset by 8.2% as a result of the negative impact of commodity price deflation.


 Builders FirstSource acquired ProBuild in July 2015. The company expects to reap $100 million to $120 million in annual cost savings, after a $90 million to $100 million one-time integration expense.


The company stressed that the interrogations efforts are on track and bearing fruit. It pointed to the closure of 12 overlapping locations and the transition of all employees to a new benefits plan.


President and CFO Chad Crow said 16 locations have been converted onto the Builder’s proprietary ERP, including the important Dallas/Fort Worth market.


“All aspects of the integration, including system conversions, G&A rationalization, procurement negotiations and facility consolidations are now in full swing and are progressing as planned,” Crow added.


Meanwhile, the company said it grew EBITDA by 14% in the quarter, and by 22% in the year.


“While global macro-economic unease has recently weighed on the homebuilding outlook, I believe our industry remains on a trajectory of steady but positive growth,” Sherman added.


 


Builders FirstSource, Pro Forma numbers


Q415 Sales: $1.46 billion

Q414 Sales: $1.48 billion

% change: down 1.1%


Q415 Net income: ($0.3 million)

Q414 Net income: ($14.5 million)


FY15 Sales: $6.07 billion

FY14 Sales: $6.08 billion


FY 15 Net income: $17.8 million

FY 15 Net income: ($69.4 million)

 


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