NYSE$BLDR

Builders FirstSource Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Builders FirstSource reported record results in Q1 2021 driven by the merger with BMC, commodity inflation, and strong organic growth.

Builders FirstSource reported a significant increase in net sales, gross profit, and adjusted EBITDA compared to the previous year. The company's performance was driven by the merger with BMC, commodity inflation, and strong organic growth, particularly in the single-family residential housing market.

  • Net sales increased by 133.6% to $4.2 billion due to the BMC merger, commodity inflation, and organic growth.
  • Gross profit rose by 129.8% to $1.1 billion, also driven by the BMC merger, commodity inflation and organic growth.
  • Adjusted EBITDA increased by 186.8% to $455.2 million, fueled by strong demand, commodity values, and cost management.
  • Adjusted EBITDA margin improved by 500 basis points to 10.9%.

Headline financials

Total Revenue

$4.17B

Previous: $1.79B+133.6%
EPS (adj)

$1.10

Previous: $0.34+223.5%
Gross Margin

25.6%

Previous: 26.0%-1.5%
Adjusted EBITDA

$455M

Previous: $97M+369.3%
Adjusted EBITDA Margin

10.9%

Previous: 5.4%+101.9%
SG&A Expenses

$19.70

Previous: $20.60-4.4%
Net Interest Expense

$31.8M

Previous: $51.9M-38.7%
Net Income Margin

4.1%

No prior period
Capital Expenditures

-$39.3M

Previous: -$28.5M-37.8%
Free Cash Flow

$133M

Previous: -$19.7M+775.7%
Net Income

$173M

Previous: $8.77M+1868.5%
Operating Income

$248M

Previous: $60.9M+306.8%
Gross Profit

$1.07B

Previous: $465M+129.8%
Cash & Equivalents

$19.1M

Previous: $164M-88.3%
Total Assets

$9.38B

Previous: $3.56B+163.4%
Stock-Based Comp

$10.4M

Previous: $3.25M+219.7%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$4.17B

Q1 2021+133.6%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Builders FirstSource · $3.26B total across 3 segments · Q1 2021

  • Lumber & Sheet Goods
    $1.73B+212.9%
  • Manufactured Products
    $816M+130.2%
  • Windows, Doors & Millwork
    $719M+83.6%

Forward guidance

For 2021, the Company expects significant improvement in its financial performance.

Tailwinds

  • Net sales to grow to a range of $16.0 billion to $17.0 billion or approximately 25% to 33% over 2020 combined pro forma net sales of $12.8 billion.
  • Adjusted EBITDA to be in a range of $1.75 billion to $1.85 billion or approximately 64% to 73% over 2020 combined pro forma Adjusted EBITDA of $1.07 billion.
  • Expected realized cost savings of $60 million to $70 million
  • Free cash flow in the range of $1.3 billion to $1.5 billion
  • Single family starts percentage growth across our geographies in the low double digits

Headwinds

  • multi-family starts percentage decline in the high single to low double digits
  • R&R growth in the low to mid-single digits.
  • Commodity price appreciation of 10% to 20% compared to the prior year
  • Recently completed acquisitions net sales growth of 2%
  • 2 fewer selling day in 2021 versus 2020 or approximately 1%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+23.3%

Q3 2015

Best reaction

-18.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-10.6%-8.6%
Q4 2025+0.8%-3.6%-26.4%
Q3 2025-3.1%-4.8%-2.7%
Q1 2025-6.4%-10.4%-10.0%
Q4 2024-0.3%-2.8%-12.7%
Q3 2024+2.5%+3.4%+2.0%
Q2 2024+2.1%+3.9%+12.0%
Q1 2024-18.6%-16.9%-27.5%
Q4 2023+2.7%+5.2%+14.6%
Q3 2023+11.7%+15.7%+28.3%
Q2 2023-1.4%+3.7%+1.3%
Q1 2023+12.2%+19.4%+25.0%
Q4 2022+5.2%+9.4%+5.8%
Q3 2022-1.5%+13.8%+14.7%
Q2 2022+3.3%+0.5%-13.8%
Q1 2022-2.7%+3.3%+0.6%
Q4 2021+3.8%-0.4%-13.3%
Q3 2021+11.6%+12.3%+18.0%
Q2 2021+2.9%+6.2%+18.6%
Q1 2021+6.7%+2.7%-13.0%
Q4 2020+10.4%+6.5%+14.8%
Q3 2020-0.7%+7.1%+24.3%
Q2 2020-0.0%+10.6%+33.6%
Q1 2020-11.8%-13.5%+6.5%
Q4 2019-4.5%-11.6%-59.2%
Q3 2019+8.7%+6.4%+13.6%
Q2 2019+9.8%+10.5%+13.2%
Q1 2019+17.0%+16.4%-1.9%
Q4 2018+2.2%+0.6%-2.8%
Q3 2018+17.8%+12.0%+9.3%
Q2 2018-1.4%-4.7%-9.4%
Q1 2018-3.1%-5.8%+2.8%
Q4 2017+7.8%+7.2%+1.0%
Q3 2017+5.3%+3.0%+17.5%
Q2 2017+7.0%+6.4%+6.1%
Q1 2017-4.2%-11.1%-11.1%
Q4 2016+13.4%+18.2%+15.8%
Q3 2016-3.1%+0.3%+12.1%
Q2 2016-4.2%-5.4%+2.4%
Q1 2016+2.8%
Q4 2015+13.4%
Q3 2015+23.3%
Q2 2015-3.3%
Q1 2015-1.6%
Q4 2014-4.0%
Q3 2014+4.6%
Q2 2014-10.8%
Q1 2014-4.4%
Q4 2013+7.2%
Q3 2013-0.5%
Q2 2013-2.2%
Q1 2013+3.9%
Q4 2012-1.2%
Q3 2012-1.8%
Q2 2012-15.4%
Q1 2012-6.9%
Q4 2011+4.6%
Q3 2011-10.4%
Q2 2011-11.0%
Q1 2011-0.7%
Q4 2010+0.8%
Q3 2010-1.9%
Q2 2010-7.1%
Q1 2010-0.5%

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