NYSE$BLDR

Builders FirstSource Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported record results driven by the merger with BMC, double-digit organic growth, and commodity inflation.

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%.

Headline financials

Total Revenue

$4.64B

Previous: $2.53B+83.1%
EPS (adj)

$2.78

Previous: $1.26+120.6%
Gross Margin

32.1%

Previous: 26.4%+21.6%
Adjusted EBITDA

$793M

Previous: $257M+208.6%
Adjusted EBITDA Margin

17.1%

Previous: 10.2%+67.6%
SG&A Expenses

$864M

Previous: $455M+89.8%
Net Interest Expense

$40.3M

Previous: $28.9M+39.4%
Income Tax Benefit

$139M

Previous: $45.1M+208.4%
Capital Expenditures

$67.7M

Previous: $28.6M+137.0%
Free Cash Flow

$775M

Previous: $76.3M+914.4%
Net Income

$443M

Previous: $140M+216.3%
Operating Income

$622M

Previous: $214M+190.7%
Gross Profit

$1.5B

Previous: $669M+124.2%
Cash & Equivalents

$42.6M

Previous: $424M-89.9%
Total Assets

$10.7B

Previous: $4.17B+156.7%
Stock-Based Comp

$6.2M

Previous: $4.92M+25.9%

Revenue & EPS history

Builders FirstSource · Revenue · Quarterly

$4.64B

Q4 2021+83.1%vs Q4 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Builders FirstSource · $3.76B total across 3 segments · Q4 2021

  • Lumber & Sheet Goods
    $1.68B+60.0%
  • Manufactured Products
    $1.17B+134.9%
  • Windows, Doors & Millwork
    $912M+120.4%

Forward guidance

The Company’s anticipated 2022 performance is based on several assumptions.

Tailwinds

  • 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

Headwinds

  • 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.
  • Interest expense in the range of $175 million to $185 million.
  • An effective tax rate between 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 2021

Historical avgQ4 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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