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Mar 31, 2020
Builders FirstSource Q1 2020 Earnings Report
Builders FirstSource reported first quarter 2020 results, demonstrating disciplined execution that generated solid results in line with expectations. The company prioritized safety and well-being of team members, customers and communities and was operationally and financially prepared to navigate through the COVID-19 crisis.
Key Takeaways
Builders FirstSource reported a 9.5% increase in net sales to $1.8 billion for the first quarter of 2020. Core organic growth was 3.9%, and adjusted EBITDA was $97 million, representing 5.4% of net sales. Net income was $8.8 million, or $0.07 per diluted share, while adjusted net income was $40.2 million, or $0.34 per diluted share.
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.
Adjusted EBITDA of $97 million, reflecting 5.4% of net sales, and expected normalization of gross margin percentage.
Strong quarter end balance sheet with liquidity of $671.7 million, including $163.9 million of cash on hand plus availability under our revolving credit facility.
Revenue by Segment
Forward Guidance
The company withdrew its previous full year 2020 outlook due to the evolving macro-economic uncertainty in the current homebuilding environment and is planning for weak demand levels to persist at least through the second quarter of 2020.
Positive Outlook
- Prudently levered balance sheet
- Strong liquidity position
- Continued base level of demand for essential products and services
- Superior product offering
- Commitment to safety
Challenges Ahead
- Evolving macro-economic uncertainty in the current homebuilding environment
- Not able to estimate the full duration and magnitude of the COVID-19 impact on our full year financial results with reasonable accuracy
- Limited visibility on the timing and pace of anticipated local market recoveries across our diverse geographic footprint
- Planning for weak demand levels to persist at least through the second quarter of 2020
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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