Builders FirstSource moves into the black in Q4

Builders FirstSource, Inc. reported top and bottom-line progress in its fourth quarter and full fiscal year, moving into the black from a net loss on both accounts.

These results were also invariably affected by its acquisition of ProBuild in July 2015

Net sales for the quarter ended Dec. 31, 2016 were $1.55 billion, up 6.3% over net sales of $1.46 billion for the fourth quarter of 2015.

Adjusted net income was $18.3 million, compared to adjusted net loss of $0.3 million in the year-ago period. The operating synergies from ProBuild and beyond played into the increase, as well as revenue growth and interest savings as a result of refinancings and debt reduction.   

For the full fiscal year, net sales of $6.4 billion were up a whopping 79% over net sales of $3.6 billion for 2015, largely due to the acquisition of ProBuild. Net sales increased 5.5% compared to Pro Forma sales for 2015, excluding the impact of closed locations. 

Adjusted net income for fiscal 2016 was $94.0 million versus Pro Forma adjusted net loss of $3.0 million in 2015. 

“We grew sales by 5.5%, excluding closed locations, in the year, including 7.5% sales volume growth in the new residential construction end market," said Builders FirstSource CEO Floyd Sherman. "Our focus and investments we have made in manufacturing capacity are driving returns, with sales of our manufactured products growing 10.2% over 2015, and reaching an 18% product mix in the fourth quarter."

"We have created significant value through our synergy cost savings initiatives, with the current run rate synergy savings already reaching $100 million, within our guidance range at the acquisition close," he added. "Although we have more to capture from our integration efforts and opportunities to drive ongoing efficiencies, we have now implemented all actions necessary to capture $100 million of the cost savings associated with the ProBuild Acquisition. I attribute the success of this integration to our hard working associates across the organization. With the integration efforts largely behind us, we are increasing focus and resources toward profitable market share expansion and value-added products growth across our national network.”

“I am confident in the outlook for our business," he concluded. "We are focused on growing our business in 2017, with an emphasis on revenue expansion, gaining market share and continuing to expand our operating margins. We believe we have the team, the scale and national footprint, the liquidity, and the expansive product offerings provided by our national manufacturing capabilities to create shareholder value that is among the best in our industry.”