For the second consecutive quarter, net sales grew by more than 100% on a year-over-year (YOY) basis for BuildersFirst Source (BFS), driven by the completion of the company’s mega-merger with BMC in January, commodity inflation, and organic growth. The dealer’s net sales of $5.6 billion during the fiscal second quarter marked a 186% increase YOY compared to the second quarter of 2020. On a pro forma basis, combining BFS and BMC’s historical operating results as if the dealers had been operating together on a combined basis during prior periods, net sales increased 90.6% YOY, according to BFS.
On a pro forma basis, commodity inflation increased net sales 51.8% on a YOY basis compared to the second quarter of 2020 while core organic sales increased 35.3% YOY. Valued-added core organic sales was driven by 57.9% growth in the dealer’s manufactured products category. BFS said robust demand was somewhat hindered by material availability constraints.
“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,” Dave Flitman, CEO of BFS, said in a prepared statement in the dealer’s quarterly earnings report. “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.”
BFS reported a gross profit of $1.6 billion in the second quarter, an increase of 105.4% on a pro forma basis compared to the second quarter of 2020. The dealer’s gross margin increased 210 basis points on a pro forma basis to 28.4%, driven primarily by disciplined pricing, according to BFS.
The dealer recorded a record net income of $297.2 million in the first quarter, compared to pro forma net income of $122.5 million in the prior year period. BFS recorded an adjusted EBITDA of $835.8 million, an increase of 231.6% YOY on a pro forma basis. The company reported its adjusted EBITDA margin increased 640 basis points to a record level of 15.0% during the fiscal second quarter.
BFS completed the acquisitions of software solutions and services provider WTS Paradigm and Alliance Lumber in the fiscal second quarter. The addition of WTS Paradigm helps move the dealer along in its strategy to “invest in innovative digital solutions that well help customers build more efficiently.”
Dallas-based BFS operates in 40 states with approximately 550 locations and has a market presence in 47 of the top 50 and 86 of the top 100 MSAs. The company provides value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. BFS also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products.
