BLDR Builders FirstSource Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 05, 2024

 

 

BUILDERS FIRSTSOURCE, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-40620	52-2084569
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
6031 Connection Drive Suite 400
Irving, Texas				75039
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (214) 880-3500

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.01 per share		BLDR		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

 

On November 5, 2024, Builders FirstSource, Inc. (the “Company”) issued the news release attached hereto as Exhibit 99.1 reporting its financial results for the three and nine months ended September 30, 2024.

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.	Description
99.1	News release reporting financial results for the three and six months ended September 30, 2024, issued by Builders FirstSource, Inc. on November 5, 2024.
104	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

 

All of the information included in Items 2.02 and 9.01 of this report and Exhibit 99.1 hereto is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			BUILDERS FIRSTSOURCE, INC.
Date:	November 5, 2024	By:	/s/ Timothy D. Johnson
			Timothy D. Johnson, Executive Vice President, General Counsel and Corporate Secretary

 

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For Immediate Release

 

Builders FirstSource Reports Third Quarter 2024 Results

 

November 5, 2024 (Irving, TX) – Builders FirstSource, Inc. (NYSE: BLDR) today reported its results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

All Year-Over-Year Comparisons Unless Otherwise Noted:

 

As previously announced, Dave Rush is retiring as President and CEO of Builders FirstSource ("BFS"), effective November 6, 2024, after 25 years of dedicated service. Mr. Rush will remain on the Board of Directors and continue as a special advisor to ensure a smooth transition.

 

“I'm proud of our resilient third quarter performance as we maintained a mid-teens EBITDA margin by leveraging our distinct competitive advantages and differentiated business model,” commented Dave Rush, CEO of Builders FirstSource. “Our six acquisitions during the third quarter reinforce our commitment to investing in value-added products to enhance our margin profile. I am confident in our ability to execute our strategy and drive long-term growth.”

 

Rush added, “It has been an honor to serve this great company as CEO for the past two years capping off my more than 25 years of service through various levels of the business. We have the best people in the industry, and the opportunity to be CEO of BFS has truly been the joy and highlight of my career. I am so proud of how far we have come and am grateful to the Board of Directors, my fellow leadership team and all team members for their support. I have full confidence in Peter and know he will be an excellent leader

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of BFS. He embodies our culture, has helped craft our current strategy, and has served as a trusted advisor to our operational leaders.”

 

“It has been a pleasure to serve alongside Dave, and I'm grateful that he will continue to be involved moving forward as an advisor and Board member,” commented Peter Jackson, incoming CEO of Builders FirstSource. "I want to thank the Board for their confidence in Pete Beckmann and me to drive the BFS strategy, which will continue to be focused on growing value-added products and services, driving operational excellence, investing in digital solutions and innovation, and continuing to build our high-performing culture. Disciplined capital allocation is a true competitive advantage that creates shareholder value through opportunistic share repurchases and acquisitions that set us up to drive long-term growth. As a trusted partner to homebuilders, we are helping solve industry pain points with our best-in-class product portfolio and scale, industry-leading digital solutions, and an exceptional team dedicated to customer service. I am confident that we are well positioned to take advantage of the many opportunities in front of us.”

 

Pete Beckmann, incoming CFO of Builders FirstSource, added, “We delivered resilient results during the third quarter despite a choppy housing market and the reduced value of an average start by leaning into the pillars of our strategy and operating model. We are leveraging our fortress balance sheet and free cash flow generation to drive disciplined capital deployment, as witnessed by our share repurchases and M&A activity during the quarter. Our scale and financial flexibility help us act as a key partner to homebuilders, and we have clear line of sight to compound value creation over the long term.”

 

Third Quarter 2024 Financial Performance Highlights

All Year-Over-Year Comparisons Unless Otherwise Noted:

Net Sales

 

 

Gross Profit

 

Selling, General and Administrative Expenses

 

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Interest Expense

 

Income Tax Expense

 

Net Income

 

Adjusted Net Income

 

Adjusted Earnings Per Diluted Share

 

Adjusted EBITDA

 

Productivity Savings From Operational Excellence

 

Capital Structure, Leverage, and Liquidity Information

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2024 Full Year Total Company Outlook

For 2024, the Company expects to achieve the financial performance highlighted below. Projected Net Sales and Adjusted EBITDA include the expected impact of price, commodities, and margins for 2024.

 

2024 Full Year Assumptions

The Company’s anticipated 2024 performance is based on several assumptions for the full year, including the following:

 

Conference Call

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Builders FirstSource will host a conference call and webcast on Tuesday, November 5, 2024, to discuss the Company’s financial results and other business matters. The teleconference will begin at 8:00 a.m. Central Time and will be hosted by Dave Rush, current President and Chief Executive Officer, Peter Jackson, incoming CEO and current Chief Financial Officer, and Pete Beckmann, incoming CFO and current Senior Vice President, Financial Planning & Analysis.

To participate in the teleconference, please dial into the call a few minutes before the start time at 800-245-3047 (U.S. and Canada) or 203-518-9765 (international), Conference ID: BLDRQ324. A replay of the call will be available at 12:00 p.m. Central Time through Tuesday, November 12, 2024. To access the replay, please dial 800-839-5247 (U.S. and Canada) or 402-220-2703 (international). The live webcast and archived replay can also be accessed on the Company's investor relations website at investors.bldr.com under the Events and Presentations section. The online archive of the webcast will be available for approximately 90 days.

 

Upcoming Events

Management will participate in investor meetings at the Baird Global Industrials Conference in Chicago on November 13, 2024, the NYSE Industrials Investor Access Day virtually on November 19, 2024, and the Stephens Annual Investment Conference in Nashville on November 20, 2024.

 

About Builders FirstSource

Headquartered in Irving, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery, and installation of a full range of structural and related building products. We operate in 43 states with approximately 580 locations and have a market presence in 48 of the top 50 and 90 of the top 100 MSAs, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (some of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork, and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other specialty building products. www.bldr.com

 

Forward-Looking Statements

Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results or events may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control or may be currently unknown to the Company, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements; such risks or uncertainties include those related to the Company’s

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growth strategies, including acquisitions, organic growth and digital strategies, or the dependence of the Company’s revenues and operating results on, among other things, the homebuilding industry and, to a lesser extent, repair and remodel activity, which in each case is dependent on economic conditions, including inflation, interest rates, consumer confidence, labor and supply shortages, and also lumber and other commodity prices. Builders FirstSource may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and may also be described from time to time in the other reports Builders FirstSource files with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

 

Non-GAAP Financial Measures

The financial measures entitled Adjusted EBITDA, LTM Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, basic Adjusted net income per share, diluted Adjusted net income per share, Adjusted SG&A, Adjusted SG&A as a percent of net sales, and Free cash flow are not financial measures recognized under GAAP and are therefore non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and operating results.

Adjusted EBITDA is defined as GAAP net income before depreciation and amortization expense, interest expense, net, income tax expense and other non-cash or special items including stock compensation expense, acquisition and related expense, technology implementation expense, debt issuance and refinancing costs, severance and gain on sale of assets and other one-time costs partially offset by the tax effect of those adjustments to net income. LTM Adjusted EBITDA is defined as Adjusted EBITDA for the last twelve consecutive months. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before non-cash or special items including acquisition and related expense, technology implementation expense, debt issuance and refinancing cost and amortization expense partially offset by the tax effect of those adjustments to net income. Basic Adjusted net income per share is defined as Adjusted net income divided by weighted average basic common shares outstanding while diluted Adjusted net income per share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. Adjusted SG&A is defined as GAAP SG&A expense before non-cash or special items including depreciation expense, amortization expense, stock compensation expense, acquisition and related expense, and technology implementation expense. Adjusted SG&A as a percent of sales is defined as Adjusted SG&A divided by net sales. Free cash flow is defined as GAAP net cash from operating activities less capital expenditures, net of proceeds from the sale of property, plant and equipment.

Company management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, basic Adjusted net income per share and diluted Adjusted net income per share as supplemental measures in its evaluation of the Company’s business, including for trend analysis, purposes of determining management incentive compensation and budgeting and planning purposes. Company management believes that these measures provide a meaningful measure of the Company’s performance and a better baseline for comparing financial performance across periods because these measures eliminate the effects of period to period changes, in the case of Adjusted EBITDA and Adjusted EBITDA margin, in taxes, costs associated with capital investments, interest expense, stock compensation expense, and other non-cash and non-recurring items and, in the case of Adjusted net income and Adjusted net income per diluted share, in certain non-recurring items. Company management also uses free cash flow as a supplemental measure in its evaluation of the Company’s business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Company’s liquidity.

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The Company believes that these non-GAAP financial measures provide additional tools for investors to use in evaluating ongoing operating results, cash flows and trends and in comparing the Company’s financial measures with other companies in the Company’s industry, which may present similar non-GAAP financial measures to investors. However, the Company’s calculations of these financial measures are not necessarily comparable to similarly titled measures reported by other companies. Company management does not consider these financial measures in isolation or as alternatives to financial measures determined in accordance with GAAP. Furthermore, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.

The Company’s Adjusted EBITDA outlook, free cash flow and full-year forecast for its effective tax rate on operations exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring costs such as professional and legal fees associated with our acquisitions and enterprise resource planning (ERP) program. The Company’s management cannot estimate on a forward-looking basis without unreasonable effort the impact these income and expense items will have on its reported net income, operating cash flow and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, the Company does not provide a reconciliation to the most comparable GAAP financial measure for its Adjusted EBITDA or free cash flow outlook or its effective tax rate on operations forecast. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to the Company’s outlook.

 

 

 

# # #

 

Contact:

 

Heather Kos

SVP, Investor Relations

Builders FirstSource, Inc.

investorrelations@bldr.com

 

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share amounts)		2024				2023				2024				2023
Net sales		$	4,232,494			$	4,534,264			$	12,580,186			$	12,946,468
Cost of sales			2,846,161				2,953,162				8,431,315				8,399,020
Gross margin			1,386,333				1,581,102				4,148,871				4,547,448
Selling, general and administrative expenses			958,310				939,474				2,857,768				2,861,565
Income from operations			428,023				641,628				1,291,103				1,685,883
Interest expense, net			54,263				50,193				154,615				145,317
Income before income taxes			373,760				591,435				1,136,488				1,540,566
Income tax expense			88,977				139,978				248,834				350,704
Net income		$	284,783			$	451,457			$	887,654			$	1,189,862
Net income per share:
Basic		$	2.45			$	3.62			$	7.45			$	9.19
Diluted		$	2.44			$	3.59			$	7.39			$	9.10
Weighted average common shares:
Basic			116,176				124,577				119,120				129,521
Diluted			116,940				125,792				120,116				130,734

 

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2024				2023				2024				2023
Cash flows from operating activities:
Net income		$	284,783			$	451,457			$	887,654			$	1,189,862
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			141,705				140,611				425,441				416,126
Deferred income taxes			(18,678	)			(34,786	)			(46,000	)			(72,688	)
Stock-based compensation expense			17,259				12,128				50,885				35,549
Other non-cash adjustments			17,121				(5,088	)			17,136				(4,284	)
Changes in assets and liabilities, net of assets acquired and liabilities assumed:
Receivables			141,285				991				105,140				(178,955	)
Inventories			96,552				38,298				47,316				115,575
Contract assets			7,040				2,528				(18,220	)			(4,287	)
Other current assets			14,779				(2,355	)			4,741				23,297
Other assets and liabilities			(8,402	)			(2,577	)			(41,009	)			(16,392	)
Accounts payable			(18,158	)			(30,396	)			123,658				230,576
Accrued liabilities			55,552				89,352				(81,237	)			(24,343	)
Contract liabilities			(880	)			(10,697	)			23,724				(14,863	)
Net cash provided by operating activities			729,958				649,466				1,499,229				1,695,173
Cash flows from investing activities:
Cash used for acquisitions, net of cash acquired			(123,938	)			(52,347	)			(256,856	)			(142,906	)
Purchases of property, plant and equipment			(99,578	)			(145,486	)			(280,897	)			(376,596	)
Proceeds from sale of property, plant and equipment			4,257				33,548				10,555				43,406
Cash used for equity investments			—				—				(7,686	)			—
Net cash used in investing activities			(219,259	)			(164,285	)			(534,884	)			(476,096	)
Cash flows from financing activities:
Borrowings under revolving credit facility			57,000				1,224,000				954,000				4,025,000
Repayments under revolving credit facility			(156,000	)			(1,499,000	)			(1,418,000	)			(3,607,000	)
Proceeds from long-term debt and other loans			—				—				1,000,000				—
Repayments of long-term debt and other loans			(846	)			(1,078	)			(2,613	)			(3,190	)
Payments of loan costs			—				—				(12,829	)			(1,897	)
Payments of acquisition-related deferred and contingent consideration			(4,842	)			—				(14,364	)			—
Tax withholdings on and exercises of equity awards			(270	)			(75	)			(55,267	)			(32,103	)
Repurchase of common stock			(153,207	)			(210,248	)			(1,153,325	)			(1,592,236	)
Net cash used in financing activities			(258,165	)			(486,401	)			(702,398	)			(1,211,426	)
Net change in cash and cash equivalents			252,534				(1,220	)			261,947				7,651
Cash and cash equivalents at beginning of period			75,569				89,316				66,156				80,445
Cash and cash equivalents at end of period		$	328,103			$	88,096			$	328,103			$	88,096

 

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited)

(in thousands, except per share amounts)		September 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	328,103			$	66,156
Accounts receivable, less allowances of $42,530 and $42,488, respectively			1,369,660				1,436,917
Other receivables			279,177				290,310
Inventories			1,203,919				1,228,265
Contract assets			184,351				165,677
Other current assets			109,198				113,403
Total current assets			3,474,408				3,300,728
Property, plant and equipment, net			1,939,881				1,803,824
Operating lease right-of-use assets, net			600,369				502,184
Goodwill			3,646,915				3,556,556
Intangible assets, net			1,143,123				1,298,173
Other assets, net			89,441				37,987
Total assets		$	10,894,137			$	10,499,452
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	1,021,626			$	881,384
Accrued liabilities			645,345				717,528
Contract liabilities			186,514				162,659
Current portion of operating lease liabilities			101,807				98,217
Current maturities of long-term debt			3,591				3,649
Total current liabilities			1,958,883				1,863,437
Noncurrent portion of operating lease liabilities			531,763				434,081
Long-term debt, net of current maturities, discounts and issuance costs			3,700,175				3,177,411
Deferred income taxes			121,199				167,199
Other long-term liabilities			135,444				124,973
Total liabilities			6,447,464				5,767,101
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding			—				—
Common stock, $0.01 par value, 300,000 shares authorized; 115,557 and 121,857 shares issued and outstanding at September 30, 2024, and December 31, 2023, respectively			1,156				1,219
Additional paid-in capital			4,266,561				4,270,948
Retained earnings			178,956				460,184
Total stockholders' equity			4,446,673				4,732,351
Total liabilities and stockholders' equity		$	10,894,137			$	10,499,452

 

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted Net Income

(unaudited)

	Three Months Ended								Nine Months Ended								Twelve Months Ended
	September 30,								September 30,								September 30,
(in millions)	2024				2023				2024				2023				2024
Reconciliation to Adjusted Net Income:
GAAP net income	$	284.8			$	451.5			$	887.7			$	1,189.9			$	1,238.3
Acquisition and related expense		2.6				(1.0	)			5.2				26.9				9.2
Technology implementation expense		19.4				25.5				46.7				51.6				76.5
Debt issuance and refinancing cost		-				-				-				0.7				-
Amortization expense		76.3				83.5				237.2				252.9				320.0
Tax-effect of adjustments to net income		(23.6	)			(25.9	)			(69.4	)			(79.7	)			(97.4	)
Adjusted net income	$	359.5			$	533.6			$	1,107.4			$	1,442.3			$	1,546.6
GAAP common shares outstanding		116.2				124.6				119.1				129.5
GAAP diluted common shares outstanding		116.9				125.8				120.1				130.7
Basic adjusted net income per share:	$	3.09			$	4.28			$	9.30			$	11.14
Diluted adjusted net income per share:	$	3.07			$	4.24			$	9.22			$	11.03

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income to Adjusted EBITDA

(unaudited)

	Three Months Ended								Nine Months Ended								Twelve Months Ended
	September 30,								September 30,								September 30,
(in millions)	2024				2023				2024				2023				2024
Reconciliation to Adjusted EBITDA:
GAAP net income	$	284.8			$	451.5			$	887.7			$	1,189.9			$	1,238.3
Interest expense, net		54.3				50.2				154.6				144.6				201.4
Income tax expense		112.6				165.9				318.2				430.4				439.2
Depreciation expense		65.5				57.1				188.3				163.2				247.6
Amortization expense		76.3				83.5				237.2				252.9				320.0
Stock compensation expense		17.3				12.1				50.9				35.5				63.9
Acquisition and related expense		2.6				(1.0	)			5.2				26.9				9.2
Technology implementation expense		19.4				25.5				46.7				51.6				76.5
Debt issuance and refinancing cost		-				-				-				0.7				-
Tax-effect of adjustments to net income		(23.6	)			(25.9	)			(69.4	)			(79.7	)			(97.4	)
Other management-identified adjustments (1)		17.3				(5.6	)			17.7				(2.2	)			23.9
Adjusted EBITDA	$	626.5			$	813.3			$	1,837.1			$	2,213.8			$	2,522.6
Adjusted EBITDA margin		14.8	%			17.9	%			14.6	%			17.1	%			15.1	%
(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs.

 

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Reconciliation of GAAP Selling, General & Administrative Expenses to Adjusted Selling, General & Administrative Expenses

(unaudited)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
(in millions)	2024				2023				2024				2023
Reconciliation to Adjusted SG&A Expense:
GAAP SG&A expense	$	958.3			$	939.5			$	2,857.8			$	2,861.6
Depreciation expense		(45.3	)			(41.7	)			(130.7	)			(119.2	)
Amortization expense		(73.6	)			(83.5	)			(229.1	)			(252.9	)
Stock compensation expense		(17.3	)			(12.1	)			(50.9	)			(35.5	)
Acquisition and related expense		(2.6	)			1.0				(5.2	)			(26.9	)
Technology implementation expense		(19.4	)			(25.5	)			(46.7	)			(51.6	)
Other management-identified adjustments (1)		(17.3	)			5.6				(17.7	)			2.2
Adjusted SG&A expense	$	782.8			$	783.3			$	2,377.5			$	2,377.7
GAAP SG&A expense as a % of sales		22.6	%			20.7	%			22.7	%			22.1	%
Adjusted SG&A expense as a % of sales		18.5	%			17.3	%			18.9	%			18.4	%
(1) Primarily relates to severance, net gain/loss on sale of assets, and other one-time costs.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Interest Reconciliation

(unaudited)

	Three Months Ended								Nine Months Ended
	September 30, 2024								September 30, 2024
(in millions)	Interest Expense				Net Debt Outstanding				Interest Expense				Net Debt Outstanding
2032 Unsecured notes @ 4.25%	$	13.8			$	1,300.0			$	41.4			$	1,300.0
2032 Unsecured notes @ 6.375%		11.2				700.0				33.5				700.0
2030 Unsecured notes @ 5.00%		6.9				550.0				20.6				550.0
2034 Unsecured notes @ 6.375%		16.1				1,000.0				37.5				1,000.0
Revolving credit facility @ 8.10% weighted average interest rate		1.2				-				8.5				-
Amortization of debt issuance costs, discount and premium		1.4				-				4.1				-
Finance leases and other finance obligations		4.7				192.1				14.6				192.1
Cash		-				(328.1	)			-				(328.1	)
Total (1)	$	55.3			$	3,414.0			$	160.2			$	3,414.0
(1) Total interest expense does not include interest income of approximately $1 million and $6 million received during the three month and nine month periods, respectively.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Free Cash Flow

(unaudited)

	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2024				September 30, 2024
Free Cash Flow
Operating activities	$	730.0			$	1,499.2
Less: Capital expenditures, net of proceeds		(95.3	)			(270.3	)
Free cash flow	$	634.7			$	1,228.9

 

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BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

Sales by Product Category

(unaudited)

	Three Months Ended September 30,
	2024								2023
(in millions)	Net Sales				% of Net Sales				Net Sales				% of Net Sales				% Change
Manufactured products	$	997.6				23.6	%		$	1,200.4				26.5	%			(16.9	)%
Windows, doors & millwork	$	1,084.8				25.6	%		$	1,093.3				24.1	%			(0.8	)%
Value-added products		2,082.4				49.2	%			2,293.7				50.6	%			(9.2	)%
Specialty building products & services		1,081.0				25.5	%			1,083.4				23.9	%			(0.2	)%
Lumber & lumber sheet goods		1,069.1				25.3	%			1,157.2				25.5	%			(7.6	)%
Total net sales	$	4,232.5				100.0	%		$	4,534.3				100.0	%			(6.7	)%
	Nine Months Ended September 30,
	2024								2023
(in millions)	Net Sales				% of Net Sales				Net Sales				% of Net Sales				% Change
Manufactured products	$	3,031.8				24.1	%		$	3,557.4				27.5	%			(14.8	)%
Windows, doors & millwork		3,230.5				25.7	%			3,263.4				25.2	%			(1.0	)%
Value-added products		6,262.3				49.8	%			6,820.8				52.7	%			(8.2	)%
Specialty building products & services		3,073.5				24.4	%			3,032.8				23.4	%			1.3	%
Lumber & lumber sheet goods		3,244.4				25.8	%			3,092.9				23.9	%			4.9	%
Total net sales	$	12,580.2				100.0	%		$	12,946.5				100.0	%			(2.8	)%

 

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v3.24.3

Document And Entity Information	Nov. 05, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 05, 2024
Entity Registrant Name	BUILDERS FIRSTSOURCE, INC.
Entity Central Index Key	0001316835
Entity Emerging Growth Company	false
Entity File Number	001-40620
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2084569
Entity Address, Address Line One	6031 Connection Drive
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Irving
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75039
City Area Code	(214)
Local Phone Number	880-3500
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	BLDR
Security Exchange Name	NYSE

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