The following excerpt is from the company's SEC filing.
Full Year 2021 Results
Record Fourth Quarter Net Sales, Net Income, Adjusted EBITDA and Adjusted EBITDA Margin
Net sales of $4.6 billion increased 23.7% on a combined pro forma basis
Core Organic Sales Growth of 11.7% on a combined pro forma basis
Gross profit of $1.5 billion increased 52.5% on a combined pro forma basis
Adjusted EBITDA increased 110.0% to $793.4 million on a combined pro forma basis
1, 2022 (Dallas, TX) Builders FirstSource, Inc. (NYSE: BLDR)
today reported its results for the fourth quarter and full
year ended December 31, 2021.
Fourth Quarter 2021 BFS Highlight
s (includes BMC in Q4 2021 and not in Q4 2020)
All Year-Over-Year Comparisons Unless Otherwise Noted:
Net sales of $4.6 billion for the quarter increased 83.1% driven by the merger with BMC, double-digit
organic growth, and commodity inflation
Gross profit of $1.5 billion increased 122.0% 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, and adjusted net income increased
247.6% to $532.4 million, or $2.78 per diluted share
The Company repurchased approximately 16.5 million shares of its common stock for a total cost of
approximately $1.2 billion
Full Year 2021 BFS Highlights (includes BMC in Full Year 2021 and not Full Year 2020)
Net sales of $19.9 billion for the period increased 132.4% driven by the merger with BMC, commodity
inflation, and strong organic growth
Gross profit of $5.9 billion increased 163.3% driven by the merger with BMC, commodity inflation, and strong
organic growth
Net income increased 450.3% to $1.7 billion, or $8.48 per diluted share, and adjusted net income grew 464.8%
to $2.1 billion, or $10.32 per diluted share
Builders FirstSource Reports Fourth Quarter 2021 Results (continued)
Fourth Quarter 2021 Highlights Compared to Combined
Non-GAAP
Pro Forma Fourth Quarter 2020
Net sales of $4.6 billion for the period increased 23.7% compared to the combined pro forma prior year
period
Core organic sales, which excludes the impacts of acquisitions (other than the BMC merger) and commodity price
fluctuations and differences in the number of selling days between periods, increased 11.7%
Commodity inflation increased net sales 5.3%
Acquisitions, excluding the BMC merger, contributed net sales growth of 6.7%
Gross profit of $1.5 billion increased 52.5% compared to the combined pro forma prior year period
As a percentage of net sales, SG&A increased 60 basis points to 18.6%
Net income of $442.5 million, or $2.31 per diluted share, and adjusted net income of $532.4 million, or
$2.78 per diluted share
Adjusted EBITDA increased 110.0% to a record fourth quarter $793.4 million driven by commodity values,
pricing, and strong demand in the residential housing market
Adjusted EBITDA margin increased 700 basis points to 17.1%
Strong
quarter-end
balance sheet with a net debt to LTM Adjusted EBITDA
ratio of 1.0x and liquidity of $0.7 billion
Dave Flitman, CEO of Builders FirstSource, commented, We achieved another
quarter of double-digit core organic growth to conclude an outstanding year of above market performance and record results in 2021. On a pro forma basis in 2021, we delivered core organic growth of 21% and produced record sales of nearly
$20 billion to deliver over $3 billion of Adjusted EBITDA and a record adjusted EBITDA margin of 15.4%. Our business is strong and we grew sales by more than 25% and adjusted EBITDA by more than 60%. I am extremely proud of our team
members who achieved these outstanding results despite the many supply chain challenges impacting our industry.
Mr. Flitman continued,
Looking at our progress, we are clearly leveraging the strength of our industry-leading platform, national network, operating model and robust demand environment to deliver exceptional growth, profitability and free cash flow. In addition, we
continued to execute on our strategic priorities to invest both organically and through M&A, while returning capital to our shareholders through share repurchases. With a thoughtful and disciplined approach to deploying
our capital, we are transforming the homebuilding industry through our investments in digital, expanding valued-added offerings for our customers, and making strategic acquisitions that bolster and extend our industry leadership position. For 2022,
we continue to expect strong demand in single-family housing and across our portfolio of value-added products and solutions.
Builders
FirstSource Financial Performance HighlightsFourth Quarter 2021 Compared to Combined
Pro Forma Fourth Quarter 2020
Net Sales
Net sales for the period were $4.6 billion, a 23.7% increase compared to the combined pro forma prior year
period. Core organic sales increased by 11.7%, while commodity price inflation contributed 5.3% to net sales. Acquisitions, excluding the BMC merger, contributed net sales growth of 6.7%
Core organic sales in value-added products grew by an estimated 28.3% compared with the combined pro forma prior
year period. Robust demand nationally was somewhat restrained by material availability constraints.
Demand for single family housing continues to drive
top-line
growth. For
the quarter, our core organic customer growth increased 14.4% for Single Family, 1.2% for R&R/Other and 6.7% for Multi Family.
Gross Profit
Gross profit was $1.5 billion, an increase of $511.3 million or 52.5% compared with the combined pro
forma prior year period. Our gross margin increased 610 basis points to 32.1%, primarily driven by disciplined pricing in a volatile, supply-constrained marketplace, as well as effective and timely sourcing.
Selling, General and Administrative Expenses
SG&A was $864.0 million, an increase of approximately $189.0 million, or 28.0%, compared to the
combined pro forma prior year period, driven primarily by expense related to the BMC merger and other acquisitions including amortization expense of acquired intangibles and
one-time
charges. Variable
compensation was also higher due to the increase in profitability and core organic growth. As a percentage of net sales, total SG&A increased by 60 basis points to 18.6%.
Interest Expense
Interest expense increased by $5.8 million to $40.3 million compared to the same combined pro forma
prior year period. The year-over-year increase is primarily due to the $1.0 billion senior unsecured Notes due 2032 issued in the third quarter, partially offset by the reduction in the senior secured Notes due 2027.
Income Tax Expense
Driven by higher profitability, income tax expense was $139.1 million, compared to $64.3 million in the
combined pro forma prior year period. The effective tax rate in the fourth quarter was 23.9%, up 40 basis points versus the prior year period.
Net Income
Net income was $442.5 million, or $2.31 earnings per diluted share, compared to combined pro forma net
income of $200.7 million, or $0.96 earnings per diluted share, in the same period a year ago. Adjusted net income was $532.4 million, or $2.78 adjusted earnings per diluted share, compared to combined pro forma adjusted net income of
$225.5 million, or $1.08 adjusted earnings per diluted share, in the prior year period. The 136.1% increase in adjusted net income was primarily driven by the increase in net sales and gross margin partially offset by higher income tax and
SG&A expense described above. Adjusted earnings per diluted share excludes amortization and
expenses related to merger and acquisition activity.
Adjusted EBITDA increased 110.0% to $793.4 million, driven by solid demand across our key customer
end-markets,
commodity inflation, and pricing.
Adjusted EBITDA margin improved to a record 17.1%, which increased 700 basis points compared to the
year-over-year pro forma period.
Builders FirstSource Financial Performance Highlights Full Year 2021 Compared to Combined
Pro Forma Full Year 2020
Net sales for the period were $19.9 billion, a 55.8% increase compared to the pro forma year-over- year
period. Commodity price inflation contributed 30.2% to net sales, while core organic sales increased by 20.6%. Acquisitions completed during 2021, excluding the BMC merger, contributed net sales growth of 5.4%, while the numbers of selling days
reduced net sales growth by 0.4%.
Core organic sales in value-added products grew by an estimated 29.8%, led by 42.5% growth in our Manufactured
Products category compared with the combined pro forma prior year period. Robust demand nationally was restrained by material availability constraints.
Strong execution and demand for single family housing continues to drive core organic growth. For the
year-over-year period, our core organic growth increased 27.7% for Single Family, 1.8% for R&R/Other, and 1.5% for Multi Family.
Gross profit was $5.9 billion, an increase of $2.6 billion or 77.7% compared with the combined pro
forma prior year period. Our gross margin increased 360 basis points to 29.4%, primarily driven by disciplined pricing in a volatile, supply-constrained marketplace.
SG&A was $3.5 billion, an increase of approximately $962.2 million or 38.5%, compared to the
combined pro forma prior year period, driven primarily by expenses related to the BMC merger and other acquisitions, including amortization expense of acquired intangibles and
charges. Variable
compensation was also higher due to the increase in profitability and core organic growth. As a percentage of net sales, total SG&A decreased by 220 basis points to 17.4% due to the effect of higher net sales against fixed costs and continued
expense control.
Interest expense decreased by $22.1 million to $135.9 million compared to the combined pro forma prior
year period. The year-over-year decrease includes higher
charges of $29.4 million related to debt financing transactions during the twelve months of 2020, compared to $8.1 million in the
twelve months of 2021.
Driven by higher profitability, income tax expense was $526.1 million, compared to $148.3 million in
the combined pro forma prior year period. The effective tax rate was 23.4%.
Net income was $1.7 billion, or $8.48 earnings per diluted share, compared to combined pro forma of
$484.8 million, or $2.34 earnings per diluted share, in the same period a year ago. Adjusted net income was $2.1 billion, or $10.32 adjusted earnings per diluted share, compared to a combined pro forma of $577.2 million, or $2.79
adjusted earnings per diluted share, in the prior year period. The 263.7% increase in adjusted net income was primarily driven by the increase in net sales and gross margin. Adjusted earnings per diluted share excludes amortization and
expenses related to merger and acquisition activity, as well as losses recognized on the refinancing and extinguishment of debt.
Adjusted EBITDA increased 185.5% to $3.1 billion, driven by solid demand across single family home growth,
commodity inflation, pricing, and cost leverage.
Adjusted EBITDA margin improved to 15.4%, which increased 700 basis points compared to the year-over-year pro
forma period.
Builders FirstSource Capital Structure, Leverage, and Liquidity Information
For the twelve months ended December 31, 2021, cash provided by operating activities was $1.7 billion;
and cash used in investing activities was $1.3 billion, including capital expenditures of $214.3 million, net of proceeds. The Companys free cash was an inflow of $1.5 billion, primarily driven by the impact of commodity
inflation and core organic growth. The free cash flow yearly result was lower than our forecasted guide as a result of net outflow of working capital related to the timing of rising commodity prices in December.
Liquidity as of December 31, 2021 was $0.7 billion, consisting of approximately $0.7 billion in
net borrowing availability under the revolving credit facility and $43 million of cash on hand.
As of December 31, 2021, Adjusted EBITDA, on a combined pro forma trailing twelve-month basis, was
$3.1 billion and net debt was $2.9 billion, resulting in a decrease of our net leverage ratio from 1.3x to 1.0x.
In the fourth quarter, BFS repurchased approximately 16.5 million shares of its common stock at an average
price of $70.89, for a total cost of approximately $1.2 billion. As of January 31, 2022, BFS completed its previously-announced $1.0 billion share repurchase authorization and as of January 31, 2022, BFS had approximately
176.8 million shares outstanding. For 2021, the Company repurchased approximately 27.5 million shares of its common stock at an average price of $63.63, for a total cost of approximately $1.7 billion.
In January 2022, the Company completed a private offering of an additional $300.0 million in aggregate
principal amount of 2032 notes at an issue price equal to 100.50% of par value. Net proceeds from the offering were used to repay borrowings on the 2026 facility and to pay related transaction fees and expenses. In addition, the Company amended the
2026 facility to increase the total commitments by an aggregate amount of $400.0 million resulting in a new $1.8 billion amended credit facility.
In February 2022, the Board approved a new $1 billion share repurchase authorization.
Pro Forma Combined Unaudited and Adjusted Information, Fourth Quarter 2021
The Company has provided supplemental unaudited financial data of the combined company in this press release. The below financial data combines Builders
FirstSource and BMC historical operating results as if the businesses had been operated together on a combined basis during prior periods along with adjustments to reclassify certain BMC historical financial information to conform to Builders
FirstSource historical financial information. This financial data is not intended to be, and was not, prepared on a basis consistent with the unaudited pro forma condensed combined financial information included in Builders FirstSources
Pre-effective
amendment to an
filing dated November 17, 2020 with the U.S. Securities and Exchange Commission (the Pro Forma
Filing), which provides the pro forma data information prepared in accordance with Article 11 of SEC Regulation
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Combined Financial Data
(unaudited)
Three Months Ended
Twelve Months Ended
(in millions)
(Pro Forma)
4,634.8
3,746.9
19,893.9
12,766.1
Gross margin
1,485.8
5,851.0
3,292.5
Gross margin %
1,725.4
3,060.3
1,071.9
2,099.4
BMC Merger Integration
Since closing the merger with BMC on January 1, 2021, Builders FirstSource has made substantial progress in integrating the two companies while delivering
solid execution.
The Company exited 2021 realizing expected cost synergies of $160 million through 2022.
The Company delivered $32 million in cost synergies in the fourth quarter and $108 million for the full year 2021. In addition, the Company expects
2022 realized cost synergies related to the BMC integration will be approximately $52 million.
In addition, the Company believes it will deliver
approximately $100 million in productivity savings in 2022.
M&A Update
On December 7, 2021, the Company acquired Truss Technologies, for approximately $30 million. Truss Technologies is a highly profitable manufacturer
of roof and floor trusses in Western Michigan, with trailing twelve months 2021 sales of approximately $30 million.
On December 31, 2021, the
Company closed its acquisition of National Lumber, the largest independent building materials supplier in New England. National Lumber operates 16 facilities and employs more than 700 people across Massachusetts, Connecticut and Rhode Island, with a
diverse mix of products and end markets, including a strong R&R mix of business. National Lumber sales were approximately $440 million in 2021.
2022 Assumptions:
The Companys anticipated
2022 performance is based on several assumptions, including the following:
Single family starts percentage growth across our geographies in the
mid-single
digits; multi-family starts percentage increase in the low to
digits; and R&R growth in the low to
digits.
Recently completed acquisitions projected to add net sales growth of 4% to 5%.
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.
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
Interest expense in the range of $175 million to $185 million.
An effective tax rate between 23.0% to 25.0%.
Conference Call
Builders FirstSource will host a
conference call Tuesday, March 1, 2022, at 8:00 a.m. Central Time (CT) and will simultaneously broadcast it live on the Internet. The earnings release presentation will be posted at
www.bldr.com
under the investors section
before the market opens on Tuesday, March 1
at 6:00am CT. To participate in the teleconference, please dial into the call a few minutes before the start time: (877)
876-9176
(U.S. and Canada) and (785)
424-1670
(international), Conference ID: BLDRQ42021 A replay of the call will
be available at 12:00 p.m. Central Time through Tuesday, March 8
, 2022. To access the replay, please dial
800-839-8708
402-220-6077
(international) and refer to pass code
BLDRQ42021. The live webcast and archived replay can also be accessed on the Companys website at www.bldr.com under the Investors section. The online archive of the webcast will be available for approximately 90 days.
About Builders FirstSource
Headquartered in
Dallas, 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 42 states with approximately 565 locations and have a market presence
in 47 of the top 50 and 85 of the top 100 MSAs, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (certain 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 building products. For more information about Builders FirstSource, visit the Companys website at
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 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. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or
uncertainties related to the continuing
COVID-19
pandemic and its impact on the Companys business and the homebuilding industry, the Companys growth strategies, including gaining market share and
its digital strategies, or the Companys revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy, including labor and supply shortages. 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 FirstSources most recent annual report on Form
filed with the Securities and Exchange Commission (the SEC) and in the other reports Builders FirsSource files with the SEC. Consequently, all forward-looking statements in this release are
qualified by the factors, risks and uncertainties contained therein.
Financial Measures
The financial measures entitled Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, diluted Adjusted net income per share and Free cash flow are not
financial measures recognized under GAAP and are therefore
non-GAAP
financial measures. The Company believes that these
financial measures provide useful
information to management and investors regarding certain financial and business trends relating to the Companys 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 integration expense, debt issuance and refinancing costs, gains (loss) on sale and asset impairments and other items. Adjusted EBITDA
margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before
or special items including acquisition and integration expense and debt issuance and
refinancing cost offset by the tax effect of those adjustments to net income. Adjusted net income per diluted share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. 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 and Adjusted net income as supplemental measures in its evaluation of the Companys 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 Companys 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-recurring
items and, in the case of Adjusted net income, in certain
items. Company management also uses free cash flow as a supplemental measure in its
evaluation of the Companys business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Companys liquidity.
financial measures provide additional tools for investors to use in
evaluating ongoing operating results, cash flows and trends and in comparing the Companys financial measures with other companies in the Companys industry, which may present similar
financial measures to investors. However, the Companys calculation 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
financial measures are significant components in understanding and assessing the Companys financial performance. These
financial measures should
be evaluated in conjunction with, and are not a substitute for, the Companys GAAP financial measures. Further, because these
financial measures are not determined in accordance with GAAP and are
thus susceptible to varying calculations, the
financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these
financial measures to the most directly comparable GAAP financial measures are included in the tables below.
The Companys 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
professional and legal fees associated with acquisitions. The Companys 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 Companys outlook.
Comparisons to the prior period include prior year results on a combined
Pro Forma basis.
Pro Forma Combined Financial Data
For avoidance
of doubt, the pro forma combined unaudited and adjusted information also was not intended to be, and was not, prepared on a basis consistent with the unaudited pro forma condensed combined financial information included the Pro Forma
Filing, which provides the pro forma financial information prepared in accordance with Article 11 of SEC Regulation
For instance, the supplemental unaudited combined
financial information does not give effect to the BMC merger under the acquisition method of accounting in accordance with Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 805, Business Combinations
(ASC Topic 805), with Builders FirstSource treated as the legal and accounting acquirer, and was not prepared to reflect the merger as if it occurred on the first day of any of the fiscal periods presented. The pro forma combined
unaudited and adjusted information has not been adjusted to give effect to pro forma events that are (1) directly attributable to the merger, (2) factually supportable, or (3) expected to have a continuing impact on the combined
results of Builders FirstSource and BMC. Consequently, the pro forma combined unaudited and adjusted information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma
Filing or the pro forma financial information set forth in the Companys most recent quarterly report on Form
In addition, the pro forma combined unaudited and adjusted information does not purport to indicate the results that actually would have been obtained had the
companies been operated together during the periods presented, or which may be realized in the future. The pro forma combined unaudited and adjusted information have no impact on Builders FirstSources or BMCs previously reported
consolidated balance sheets or statements of operations, cash flows or equity.
Contact:
Michael Neese
SVP, Investor Relations
(214)
765-3804
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
4,634,809
2,530,760
19,893,856
8,558,874
Cost of sales
3,149,009
1,861,572
14,042,900
6,336,290
1,485,800
669,188
5,850,956
2,222,584
Selling, general and administrative expenses
864,010
455,293
3,463,532
1,678,730
Income from operations
621,790
213,895
2,387,424
543,854
Interest expense, net
40,284
28,903
135,877
135,688
Income before income taxes
581,506
184,992
2,251,547
408,166
Income tax expense
139,050
45,078
526,131
94,629
442,456
139,914
1,725,416
313,537
Net income per share:
Diluted
Weighted average common shares:
189,563
116,819
201,839
116,611
191,474
118,591
203,470
117,917
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
547,352
116,566
Deferred income taxes
(34,573
16,614
Stock-based compensation expense
31,486
17,022
Net gain on sale of assets
(32,421
(1,067
10,208
Changes in assets and liabilities, net of assets acquired and liabilities assumed:
Receivables
(453,911
(246,912
Inventories
(282,165
(220,101
Contract assets
(103,326
(12,631
Other current assets
(33,489
(19,743
Other assets and liabilities
(1,155
50,370
Accounts payable
191,885
160,947
Accrued liabilities
91,419
55,361
Contract liabilities
90,135
19,896
Net cash provided by operating activities
1,743,549
260,067
Cash flows from investing activities:
Cash used for acquisitions, net of cash acquired
(1,206,471
(32,643
Proceeds from divestiture of business
76,162
Purchases of property, plant and equipment
(227,891
(112,082
Proceeds from sale of property, plant and equipment
13,560
Net cash used in investing activities
(1,344,640
(136,225
Cash flows from financing activities:
Borrowings under revolving credit facility
3,125,000
891,000
Repayments under revolving credit facility
(2,612,000
(843,000
Proceeds from long-term debt and other loans
1,000,000
895,625
Repayments of long-term debt and other loans
(554,677
(618,542
Payments of debt extinguishment costs
(4,950
(22,686
Payments of loan costs
(19,450
(13,800
Exercise of stock options
Repurchase of common stock
(1,714,761
(4,153
Net cash (used in) provided by financing activities
(780,112
285,868
Net change in cash and cash equivalents
(381,203
409,710
Cash and cash equivalents at beginning of period
423,806
14,096
Cash and cash equivalents at end of period
42,603
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
Current assets:
Accounts receivable, less allowances of $39,510 and $17,637 at December 31, 2021 and
December 31, 2020, respectively
1,708,796
822,753
Other receivables
255,075
76,436
Inventories, net
1,626,244
784,527
207,587
57,265
127,964
58,895
Total current assets
3,968,269
2,223,682
Property, plant and equipment, net
1,385,441
749,130
Operating lease
right-of-use
assets, net
457,833
274,562
Goodwill
3,270,192
785,305
Intangible assets, net
1,603,409
119,882
Other assets, net
29,199
21,110
Total assets
10,714,343
4,173,671
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
1,093,370
600,357
718,904
327,081
216,097
58,455
Current portion of operating lease liabilities
96,680
61,625
Current maturities of long-term debt
27,335
Total current liabilities
2,128,711
1,074,853
Noncurrent portion of operating lease liabilities
375,289
219,239
Long-term debt, net of current maturities, discounts and issuance costs
2,926,122
1,596,905
362,121
49,495
Other long-term liabilities
119,619
80,396
Total liabilities
5,911,862
3,020,888
Commitments and contingencies (Note 13)
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; 179,820 and 116,829 shares issued and
outstanding at December 31, 2021 and December 31, 2020, respectively
Additional
paid-in
4,260,670
589,241
Retained earnings
540,013
562,374
Total stockholders equity
4,802,481
1,152,783
Total liabilities and stockholders equity
Reconciliation of Adjusted
Financial Measures to their GAAP Equivalents
Reconciliation to Adjusted EBITDA:
Acquisition and integration expense
Debt issuance and refinancing cost
Amortization expense
Tax-effect
of adjustments to net income
(118.1
Weighted average diluted common shares
Diluted adjusted net income per share:
Reconciling items:
Depreciation expense
Stock compensation expense
Gain on sale and asset impairments
Other management-identified adjustments
Costs associated with issuing and extinguishing long term debt in 2021 and 2020.
Primarily relates to severance and other one time costs.
(in millions, except per share amounts)
2,530.8
8,558.9
3,149.0
1,861.6
14,042.9
6,336.3
2,222.6
Adjusted SG&A/Other (excluding depreciation and amortization) as a % of sales
Adjusted EBITDA margin %
(189.3
Interest expense, net of debt issuance cost and refinancing
(127.8
(106.3
(167.4
(644.2
(113.0
Other adjustments
Basic adjusted net income per share:
Adjusted SG&A and other as a percentage of sales is defined as GAAP SG&A less depreciation and
amortization, stock compensation, acquisition, integration and other expenses.
Interest Reconciliation
Net Debt
Outstanding
2032 Unsecured notes @ 4.25%
1,000.0
2030 Unsecured notes @ 5.00%
2027 Secured notes @ 6.75%
Revolving credit facility @ 2.80% Floating LIBOR
Amortization of debt issuance costs, discount and premium
Finance leases and other finance obligations
2,914.7
Three Months Ended
Twelve Months Ended
Free Cash Flow
Operating activities
1,743.5
Less: Capital expenditures, net of proceeds
(214.3
1,529.2
Sales by Product Category
Three Months Ended December 31,
Twelve Months Ended December 31,
Net Sales
Manufactured products
1,171.9
4,333.3
1,640.5
-100.0
Windows, doors & millwork
3,332.0
1,629.2
Value-added products
2,083.5
7,665.3
3,269.7
Gypsum, roofing & insulation
Siding, metal & concrete products
1,531.1
1,628.9
Specialized products & other
3,816.4
2,212.8
Lumber & lumber sheet goods
1,680.4
1,050.1
8,412.2
3,076.4
Total net sales
The above information was disclosed in a filing to the SEC. To see the filing, click here.
To receive a free e-mail notification whenever Builders FirstSource makes a similar move, sign up!
