Builders FirstSource, Inc (BLDR) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $144.34 million, or $ 1.27 a share in the year, against a net loss of $22.83 million, or $0.22 a share in the last year. On an adjusted basis, net profit for the year was $94 million, when compared with net loss $0.30 million in the last year period.
Revenue during the year surged 78.63 percent to $6,367.28 million from $3,564.42 million in the previous year.
Operating income for the year was $236.34 million, compared with $90.62 million in the previous year.
However, the adjusted EBITDA for the year stood at $381.60 million compared with $76.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 385 basis points in the year to 5.99 percent from 2.14 percent in the last year period.
Commenting on the fiscal 2016 results, Builders FirstSource chief executive officer Floyd Sherman remarked, “We grew sales by 5.5 percent, excluding closed locations, in the year, including 7.5 percent sales volume growth in the new residential construction end market. Our focus and investments we have made in manufacturing capacity are driving returns, with sales of our manufactured products growing 10.2 percent over 2015, and reaching an 18 percent product mix in the fourth quarter. We have created significant value through our synergy cost savings initiatives, with the current run rate synergy savings already reaching $100 million, within our guidance range at the acquisition close. Although we have more to capture from our integration efforts and opportunities to drive ongoing efficiencies, we have now implemented all actions necessary to capture $100 million of the cost savings associated with the ProBuild Acquisition. I attribute the success of this integration to our hard working associates across the organization. With the integration efforts largely behind us, we are increasing focus and resources toward profitable market share expansion and value-added products growth across our national network.”
Operating cash flow declines
Builders FirstSource, Inc has generated cash of $158.23 million from operating activities during the year, down 10.62 percent or $18.81 million, when compared with the last year.
The company has spent $38.33 million cash to meet investing activities during the year as against cash outgo of $1,508.05 million in the last year. It has incurred net capital expenditure of $34.36 million on net basis during the year, down 13.10 percent or $5.18 million from year ago.
The company has spent $170.51 million cash to carry out financing activities during the year as against cash inflow of $1,378.30 million in the last year period.
Cash and cash equivalents stood at $14.45 million as on Dec. 31, 2016, down 77.79 percent or $50.61 million from $65.06 million on Dec. 31, 2015.
Working capital remains almost stable
Working capital of Builders FirstSource, Inc remained almost stable for the year at $461.28 million, when compared with the previous year. Current ratio was at 1.61 as on Dec. 31, 2016, down from 1.62 on Dec. 31, 2015.
Debt comes down
Builders FirstSource, Inc has recorded a decline in total debt over the last one year. It stood at $1,802.05 million as on Dec. 31, 2016, down 7.67 percent or $149.62 million from $1,951.67 million on Dec. 31, 2015. Total debt was 61.93 percent of total assets as on Dec. 31, 2016, compared with 67.72 percent on Dec. 31, 2015. Debt to equity ratio was at 5.82 as on Dec. 31, 2016, down from 13.08 as on Dec. 31, 2015. Interest coverage ratio improved to 1.10 for the year from 0.83 for the same period last year.
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