Dallas-based building materials distributor Builders FirstSource, Inc. (NYSE: BLDR) says a big merger, double-digit organic growth and commodity inflation drove increases in net sales for the fourth quarter of 2021 and the year overall.
The company reported 4Q net sales of $4.6 billion, an 83.1% increase over the same period in 2020. Net sales for the year were $19.9 billion, a 132.4% increase over 2020.
Builders FirstSource said the quarterly and annual sales gains were driven by organic growth, inflation and its merger with BMC Stock Holdings. The all-stock merger, completed in January 2021, created a supplier of building materials and services with combined sales of $11.7 billion and 550 distribution and manufacturing locations in 40 states
Gross profit for 4Q was $1.5 billion, a 122% increase over the same quarter in 2020. Net income for 4Q increased 216.2% to $442.5 million, or $2.31 per diluted share. Adjusted net income increased 247.6% to $532.4 million, or $2.78 per diluted share.
For the year, gross profit was $5.9 billion, a 163.3% increase over 2020. Net income for 2021 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, the company said.
“We achieved another quarter of double-digit core organic growth to conclude an outstanding year of above market performance and record results in 2021,” said Dave Flitman, CEO of Builders FirstSource. “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.”