BFS: Integration Exceeding Expectations, Net Sales Up
Originally published by: Builders FirstSource — August 4, 2016
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In reporting its second quarter earnings, Builders FirstSource indicated that, a year after the acquisition of ProBuild, integration was exceeding expectations. BFS CEO Floyd Sherman commented,
"We have just passed the one year anniversary of the acquisition of ProBuild, and the integration efforts are progressing better than expected. The combined company is operating effectively as one, providing best in class service to our customers and delivering on our business objectives. We are now a more diversified company with enhanced scale and an improved geographic footprint, which allows for better customer reach and less exposure to any one market. We are confident in our existing plans and actions that are designed to achieve $100 - 120 million of targeted annual cost savings before one-time integration expenses within 2 years of the Closing Date, and realized $22 million in the second quarter alone. "
Adjusted net income was $35.3 million, compared to $18.4 million, in the second quarter of 2015 on a Pro Forma Adjusted basis.
“This improvement was largely a result of the operating synergies realized, as well as $6.5 million in interest savings as a result of debt exchanges and other actions by the company to reduce interest, which was partially offset by taxes.”
BFS reported its net sales increased 3.3%.
“Net sales were $1.7 billion for the second quarter of 2016, an increase of 3.3 percent compared to Pro Forma sales for the second quarter of 2015 of $1.6 billion, excluding the impact of closed locations. Sales volume grew an estimated 4.0 percent over Pro Forma second quarter 2015, but was offset by 0.7 percent as a result of the negative impact of commodity price deflation on our sales.”