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Dec 31, 2021
Builders FirstSource Q4 2021 Earnings Report
Reported record results driven by the merger with BMC, double-digit organic growth, and commodity inflation.
Key Takeaways
Builders FirstSource reported record fourth-quarter results, with net sales of $4.6 billion, an 83.1% increase driven by the merger with BMC, double-digit organic growth, and commodity inflation. Net income grew 216.2% to $442.5 million, or $2.31 per diluted share, while adjusted EBITDA increased 110.0% to $793.4 million. For the full year, net sales reached $19.9 billion, and adjusted EBITDA was $3.1 billion.
Net sales increased 83.1% to $4.6 billion, driven by the BMC merger, organic growth, and commodity inflation.
Gross profit increased 122.0% to $1.5 billion, benefiting from the BMC merger, organic growth, and commodity inflation.
Net income grew 216.2% to $442.5 million, or $2.31 per diluted share.
Adjusted EBITDA increased 110.0% to $793.4 million, with the adjusted EBITDA margin rising to 17.1%.
Revenue by Segment
Forward Guidance
The Company’s anticipated 2022 performance is based on several assumptions.
Positive Outlook
- Single family starts percentage growth across our geographies in the mid-single digits
- Multi-family starts percentage increase in the low to mid-single digits
- R&R growth in the low to mid-single digits
- Recently completed acquisitions projected to add net sales growth of 4% to 5%
- Free cash flow in the range of $1.6 billion to $2.0 billion assuming average commodity prices in the range of $600 to $1,000
Challenges Ahead
- One fewer selling day in 2022 versus 2021 or approximately 0.4%.
- Depreciation and amortization expenses in the range of $440 million to $460 million, including approximately $180 million of amortization related to intangible assets acquired in the BMC merger. Total depreciation projected to be $190 million and total amortization of $260 million for the full year 2022.
- Total capital expenditures spend in the range of $400 million to $420 million.
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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