Builders FirstSource (BFS) announced its board has authorized the company to buy back up to $1 billion of its common shares.
“Since the merger of BFS and BMC at the onset of 2021, we have executed our integration plan, including the review of our balanced capital allocation strategy with the goal of maintaining our commitment to delivering long-term shareholder value,” BFS president and CEO Dave Flitman said in a prepared statement. “This new share repurchase program is aligned with that commitment and underpins our confidence in our balance sheet and strong cash flow generation. As of August 11, 2021, we had approximately $417 million of cash on hand, which is consistent with our recent guidance of $1.4 to $1.6 billion of free cash flow in 2021.”
BFS said the timing and amount of any share repurchases under the share repurchase program will be determined by the dealer’s management at its discretion based on ongoing assessments of the capital needs of the business, the market price of the company’s common stock, and general market conditions. Share repurchases under the program may be made through a variety of methods, including open market purchases, block trades, accelerated share repurchase transactions, or trading plans in accordance with Rule 10b-5 or Rule 10b-18 under the Exchange Act. The company said the program does not obligate BFS to acquire any particular amount of its common stock, and the share repurchase program may be suspended or discontinued at any time.
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.
