Financial Performance - For Q4 2024, net sales were 3.8billion,an8.01.2 billion, a decrease of 15.7%, with a gross margin of 32.3%, down 300 basis points[4] - Net income for Q4 2024 was 190.2million,ordilutedEPSof1.65, a 45.8% decrease compared to the prior year[9] - Adjusted EBITDA for Q4 2024 decreased 28.0% to 493.6million,withanadjustedEBITDAmarginof12.93,820.3 million, a decrease of 7.9% from 4,150.9millioninQ42023[31]−GrossmarginforQ42024was1,234.1 million, down 15.7% from 1,464.9millioninQ42023[31]−NetincomeforQ42024was190.2 million, a decline of 45.9% compared to 350.8millioninQ42023[31]−AdjustedEBITDAforQ42024was493.6 million, down 28.0% from 685.5millioninQ42023,withanadjustedEBITDAmarginof12.91,506.1 million, reflecting strong operating activities of 1,872.7million[45]CashFlowandCapitalManagement−Forfull−year2024,cashprovidedbyoperatingactivitieswas1.9 billion, down from 2.3billionintheprioryear,withfreecashflowof1.5 billion, a decrease of 0.4billion[10]−Thecompanyrepurchased8.9millionsharesin2024atanaveragepriceof170.74, reducing total shares outstanding by 6.8%[10] - Interest expense increased to 53.1millioninQ42024from46.8 million in Q4 2023[31] - The company experienced a net cash provided by operating activities of 373.5millioninQ42024,downfrom611.7 million in Q4 2023[33] - Cash and cash equivalents at the end of Q4 2024 were 153.6million,comparedto66.2 million at the end of Q4 2023[33] Future Projections - For 2025, the company expects net sales in the range of 16.5billionto17.5 billion and adjusted EBITDA between 1.9billionand2.3 billion[20] - The company anticipates a gross profit margin in the range of 30% to 32% for 2025[20] - Projected capital expenditures for 2025 are between 350millionand450 million[20] - The effective tax rate for 2025 is expected to be between 23.0% and 25.0%[20] Asset and Liability Management - Total assets increased to 10,583.1millionin2024from10,499.5 million in 2023, representing a growth of 0.8%[35] - Total liabilities increased to 6,286.6millionin2024from5,767.1 million in 2023, marking a rise of 9.0%[35] - Total stockholders' equity decreased to 4,296.5millionin2024from4,732.4 million in 2023, a decline of 9.2%[35] Sales Performance by Segment - For the twelve months ended December 31, 2024, total net sales decreased by 4.1% to 16,400.5millionfrom17,097.3 million in 2023[47] - Windows, doors & millwork sales for the full year 2024 were 4,226.9million,aslightdecreaseof1.94,310.1 million in 2023[47] - Specialty building products & services saw a 1.5% increase in sales for the full year 2024, reaching 4,050.1millioncomparedto3,992.1 million in 2023[47] - Lumber & lumber sheet goods sales for the full year 2024 were 4,191.9million,up1.64,126.0 million in 2023[47] - The company reported a 15.8% decline in manufactured products sales for the full year 2024, totaling 3,931.6millioncomparedto4,669.1 million in 2023[47] - The percentage of value-added products in total net sales remained stable at 49.7% for the full year 2024[47] - Value-added products accounted for 49.7% of total net sales in Q4 2024, down from 51.9% in Q4 2023[47] - Manufactured products sales in Q4 2024 were 899.6million,down18.91,108.6 million in Q4 2023[47] Management Insights - Builders FirstSource's management emphasizes the importance of non-GAAP financial measures for evaluating business performance and trends[27] - The company is focusing on market expansion and new product development to counteract declining sales in certain segments[47] - GAAP SG&A expense for Q4 2024 was 930.0million,downfrom974.4 million in Q4 2023, with an adjusted SG&A expense of 764.2million[42]−Thecompanyreportedabasicadjustednetincomepershareof2.33 for Q4 2024, compared to 3.58inQ42023[37]−Thecompanyincurred20.3 million in technology implementation expenses during Q4 2024, compared to $29.8 million in Q4 2023[39]
Builders FirstSource(BLDR)2025-02-20 12:00