Builders FirstSource Stock Up After Record Quarter

Nov 4, 2021 By MarketDepth

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Builders FirstSource, Inc. (NYSE: BLDR) stock jumped more than 10% after the Company reported results for the third quarter and nine months ended September 30, 2021. According to the Company’s press release the third quarter registered record Net Income, Adjusted EBITDA and Free Cash flow. Net sales of $5.5 billion were recorded, which is an increase of 140$ driven by the merger with BMC, commodity inflation, and strong organic growth.

Income Higher Than Expected

Net income of $613.1 million, or $2.98 per diluted share, and adjusted net income of $696.7 million, or $3.39 per diluted share.

“I couldn’t be more proud of our team’s effort and hard work that have resulted in record third quarter and first nine months earnings for Builders FirstSource. We delivered above market core organic growth of 16.1%, along with record gross profit, adjusted EBITDA, adjusted EBITDA margin of 17.7% and free cash flow of $1.1 billion. Our team is executing at a very high level as we continue to outperform the market, especially given the strong demand environment coupled with unprecedented supply chain challenges that have continued to affect the homebuilding industry.”

Dave Flitman, CEO of Builders FirstSource

Net sales for the period were $15.3 billion, a 69.2% increase compared to the pro forma year-over- year period. Core organic sales, which excludes acquisitions, commodity price fluctuations and differences in the number of selling days between periods, increased by 24.4% while commodity price inflation contributed 40.5% to net sales.

“During the third quarter, we used a portion of our significant free cash flow to deploy capital in the repurchase of $578 million of stock, and $816 million in acquisitions. Looking ahead, we remain focused on consistently executing our balanced capital allocation strategy with the goal of meeting our commitment to deliver long-term shareholder value.”

Peter Jackson, CFO of Builders FirstSource