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Builders FirstSource (Nasdaq: BLDR) | Company Profile, History, Competitors

 

Builders FirstSource (NASDAQ: BLDR) is the largest lumber and building materials distributor in the United States. As of 2017, the company operates 402 locations in 40 states. It was founded in 1998 and headquartered in Dallas, TX.

BLDR is a leading distributor of building materials to professional contractors and sub-contractors. The majority of the revenues are linked to single-family construction, with multi-family and remodelling making up the rest.

Business Overview

BLDR operates in six main segments:
  • Lumber (36% of 2017 Revenues): Sells dimensional lumber, plywood and OSB
  • Windows, Doors & Millwork (19% of 2017 Revenues): Sells aluminum and vinyl doors. This also includes sales under the company's Synboard brand.
  • Manufactured Products (17% of 2017 Revenues): Sells framing products like trusses, wall panels, stairs and engineered wood.
  • Other Building Products (11% of 2017 Revenues): Sells cabinets and services including turn-key framing and design assistance
  • Siding, Metal & Concrete Products (9% of 2017 Revenues): Sells vinyl, composite, and wood siding
  • Gypsum, Roofing & Insulation (8% of 2017 Revenues): Sells wallboard, metal studs, ceilings, stucco and exteriors

Suppliers and Distributors

BLDR sources from 6,000 suppliers for products like OSB, lumber, wood, windows, doors and roofing. BLDR is often one of the largest customers for many of its suppliers.

The inventory is distributed out of their locations or upgraded in their manufacturing plants for distribution.

Customers

BLDR sells to customers in 40 states in the United States. BLDR locates its facilities close to key customers. Some of its largest customers are DR Horton, PulteHomes, Beazer, Hovnanian, Taylor Morrison and M/I Homes. BMC also sells to regional homebuilders, remodelling contractors and light commercial contractors.

History

In 1998, the company was founded with investment from the private equity firm, JLL Partners. Between 1998 and 2015, BLDR acquired 33 companies. In 2005, the company went public.

In 2015, BLDR acquired one of its largest competitors, ProBuild Holdings.

Competitors

BLDR's largest competitors are 84 Lumber, Stock Building Supply, BMC and Carter Lumber.

BMC focuses on the Pro homebuilders and does not compete as much against big box retailers like The Home Depot or Lowe's.

Management

Chad Crow (CEO): Chad Crow serves as CEO since 2018. Prior, he served in various roles at the company including COO, CFO, Controller and Assistant Controller.

Peter M. Jackson (CFO): Peter Jackson serves as CFO since 2016. Prior, he served in various roles at Lennox International including CFO Refrigeration and VP Finance.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $1,490 
$1,604 
$3,564 
$6,367 
$7,034 
 Gross Profit $320 
$357 
 $902 
 $1,597 
 $1,727 
 Operating Profit $48 
$50 
 $91 
 $236 
 $285 
 Net Income($43)$18 
($23)
 $144 
$39 
 EPS($0.44)$0.18 
($0.22)
$1.27 
$0.34 

References


Builders FirstSource
 
  Ticker     NASDAQ: BLDR
  Industry Homebuilding
  Founded 1998
  Headquarters Dallas, TX
  Locations 402 (2017)
  Revenues
$7.0bn (2017)
  Employees 15,000 (2017)
  Website bldr.com