NYSE$BLDR

Builders FirstSource Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported record results driven by solid demand and commodity inflation, with net sales increasing by 43.5% and adjusted EBITDA more than doubling.

Builders FirstSource reported record fourth-quarter results, with net sales reaching $2.5 billion, a 43.5% increase year-over-year. Core organic sales grew by 15.0%, and adjusted EBITDA more than doubled to $257.1 million. The company also completed its merger with BMC Stock Holdings on January 1, 2021.

  • Net sales increased 43.5% to $2.5 billion.
  • Core organic sales increased 15.0%, excluding acquisitions and commodity impacts.
  • Adjusted EBITDA more than doubled to $257.1 million.
  • Completed merger with BMC Stock Holdings on January 1, 2021.

Headline financials

Total Revenue

$2.53B

Previous: $1.76B+43.5%
EPS (adj)

$1.26

Previous: $0.40+215.0%
Gross Margin

26.4%

Previous: 27.0%-2.2%
Adjusted EBITDA

$257M

Previous: $109M+135.2%
Adjusted EBITDA Margin

10.2%

Previous: 6.2%+64.5%
SG&A Expenses

$455M

Previous: $401M+13.4%
Net Interest Expense

$28.9M

Previous: $27.5M+5.2%
Income Tax Benefit

$45.1M

Previous: $6.29M+616.9%
Capital Expenditures

$28.6M

Previous: $34.9M-18.2%
Free Cash Flow

$76.3M

Previous: $109M-29.9%
Net Income

$140M

Previous: $41.4M+237.9%
Operating Income

$214M

Previous: $75.1M+184.7%
Gross Profit

$669M

Previous: $477M+40.4%
Cash & Equivalents

$424M

Previous: $14.1M+2906.6%
Total Assets

$4.17B

Previous: $3.25B+28.4%
Stock-Based Comp

$4.92M

Previous: $2.86M+72.2%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$2.53B

Q4 2020+43.5%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Builders FirstSource · $1.96B total across 3 segments · Q4 2020

  • Lumber & Sheet Goods
    $1.05B+99.3%
  • Manufactured Products
    $499M+39.9%
  • Windows, Doors & Millwork
    $414M+5.8%

Forward guidance

The Company expects significant improvement in its financial performance for 2021.

Tailwinds

  • Net sales to grow to a range of $13.9 billion to $14.6 billion, approximately 9% to 14% over its 2020 pro forma net sales of $12.8 billion.
  • Adjusted EBITDA to be in a range of $1.29 billion to $1.34 billion, approximately 20% to 25% over its 2020 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 $800 million to $900 million.
  • Single family starts growth across our geographies in the high single digits.

Headwinds

  • Multi-family starts decline in the low single digits.
  • R&R growth in the low single digits.
  • Commodity tailwind of 0% to 10% compared to the prior year.
  • Less selling days of approximately 1% or 2 fewer days.
  • An effective tax rate of approximately 23.0% to 25.0%

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 Q4 2020

Historical avgQ4 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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