NYSE$BLDR

Builders FirstSource Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record sales and profit driven by focused execution and accelerating housing demand.

Builders FirstSource reported a strong third quarter in 2020, marked by record sales and adjusted EBITDA. Net sales increased by 15.9% year-over-year, driven by core organic sales growth, commodity inflation, and contributions from acquisitions. The company's enhanced focus on cost controls led to a gross margin of 24.9% and effectively flat adjusted EBITDA margin.

  • Net sales for the quarter increased by 15.9% compared to the prior year period
  • Adjusted EBITDA increased 15% to $184 million, or 8.0% of net sales, driven by solid demand across all three customer end markets and disciplined pricing in a dynamic market
  • Net income of $85.9 million, or $0.73 per diluted share, and adjusted net income of $96.7 million, or $0.82 per diluted share
  • Announced transformational merger with BMC Stock Holdings in an all-stock transaction to create the nation’s premier supplier of building materials and services

Headline financials

Total Revenue

$2.3B

Previous: $1.98B+15.9%
EPS (adj)

$0.82

Previous: $0.72+13.9%
Gross Margin

24.9%

No prior period
Adjusted EBITDA

$184M

No prior period
Adjusted EBITDA Margin

8.0%

No prior period
SG&A Expenses

$431M

No prior period
Net Interest Expense

$28M

No prior period
Income Tax Benefit

$25.8M

No prior period
Capital Expenditures

-$83.5M

Previous: -$77.9M-7.1%
Free Cash Flow

$2.42M

Previous: $193K+1156.0%
Net Income

$85.9M

Previous: $78.1M+10.0%
Operating Income

$140M

Previous: $130M+7.8%
Gross Profit

$571M

Previous: $541M+5.5%
Cash & Equivalents

$341M

Previous: $43.3M+687.9%
Total Assets

$4.01B

Previous: $3.3B+21.7%
Stock-Based Comp

$5.38M

Previous: $3.34M+60.9%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$2.3B

Q3 2020+15.9%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Builders FirstSource · $1.69B total across 3 segments · Q3 2020

  • Lumber & Sheet Goods
    $852M
  • Manufactured Products
    $421M
  • Windows, Doors & Millwork
    $420M

Forward guidance

The company is confident in its business outlook, supported by robust housing dynamics across its national footprint. Market conditions are expected to provide positive tailwinds through the end of the year and beyond.

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 Q3 2020

Historical avgQ3 2020

+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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