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    Builders FirstSource Inc (BLDR)

    CFO Change

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    Business Description

    Builders FirstSource, Inc. (BLDR) is a leading supplier and manufacturer of building materials, manufactured components, and construction services, primarily serving professional contractors, sub-contractors, and consumers across the United States . The company operates approximately 570 locations in 43 states, organized into three geographical divisions: East, Central, and West, which are aggregated into one reportable segment due to their similar economic characteristics, products, and services . BLDR's product offerings are categorized into four main groups: Lumber and Lumber Sheet Goods, Manufactured Products, Windows, Doors and Millwork, and Specialty Building Products and Services .

    1. Manufactured Products - Produces wood floor and roof trusses, wall panels, and engineered wood.
    2. Windows, Doors and Millwork - Involves the manufacturing and distribution of windows and doors, as well as custom millwork.
    3. Lumber and Lumber Sheet Goods - Supplies dimensional lumber and plywood.
    4. Specialty Building Products and Services - Offers a variety of products such as siding, roofing, and insulation, along with services like turn-key framing and professional installation.

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    David E. RushPresident & CEO (Retiring)November 2022David E. Rush has been with Builders FirstSource since 1999, serving in various senior executive roles. He was appointed as President and CEO in November 2022 and is retiring effective November 6, 2024 .
    Peter M. JacksonUpcoming President & CEONovember 6, 2024Peter Jackson has been appointed as the next President & CEO, effective November 6, 2024. He has served as Executive Vice President and CFO since January 2021 .
    Peter M. JacksonCurrent Chief Financial OfficerJanuary 2021Peter M. Jackson was appointed as Executive Vice President and CFO in January 2021. He previously served as Senior Vice President and CFO since November 2016 .
    Pete BeckmannUpcoming Chief Financial OfficerNovember 6, 2024Pete Beckmann has been with Builders FirstSource since 1999. He was appointed as Senior Vice President of Financial Planning & Analysis in January 2021 and will become CFO effective November 6, 2024 .
    Timothy D. JohnsonExecutive Vice President, General CounselJanuary 2021Timothy D. Johnson joined Builders FirstSource in January 2021. He previously served as Executive Vice President, General Counsel, and Corporate Secretary of BMC Stock Holdings, Inc. .
    Stephen J. HerronChief Operating OfficerMarch 2023Stephen J. Herron was appointed as COO in March 2023. He previously served as President of Commercial Operations from January 2021 to February 2023 .
    Amy B. MessersmithChief People OfficerMarch 2022Amy B. Messersmith has been the Chief People Officer since March 2022. She previously held roles as Chief Human Resources Officer at U.S. Anesthesia Partners Inc. and Chief People Officer at TDIndustries Inc. .
    Michael A. FarmerPresident – Commercial OperationsJanuary 2021Michael A. Farmer was appointed as President – Commercial Operations in January 2021. He previously held various roles at BMC Stock Holdings, Inc. .
    Mike McCrobiePresident – East DivisionApril 2023Mike McCrobie was appointed as President – East Division in April 2023. He joined Builders FirstSource in 2017 as Vice President of National Accounts – East Division .
    Michael HillerPresident – Central DivisionJanuary 2021Michael Hiller serves as President – Central Division since January 2021. He previously held various roles at BMC Stock Holdings, Inc. .
    Scott L. RobinsPresident – West DivisionJanuary 2021Scott L. Robins was appointed as President of the West Division in January 2021. He has been with the Corporation since the acquisition of ProBuild Holdings LLC in 2015 .
    Matt TresterPrincipal Accounting OfficerNovember 6, 2024Matt Trester was appointed as Principal Accounting Officer effective November 6, 2024. He previously served as Vice President and Controller since 2022 .

    Questions to Ask Management

    1. Given that you've reduced your 2024 incremental sales expectations from $200 million to approximately $110 million due to market headwinds, what specific factors led to this shortfall, and how confident are you in achieving your $1 billion incremental sales target by 2026?
    2. Multifamily has been a significant headwind, with manufactured products in that segment down nearly 45% to 50%; what actions are you taking to mitigate the impact on your margins and overall business, and when do you anticipate this segment stabilizing?
    3. With the upcoming CEO and CFO transitions, how do you plan to ensure strategic continuity and what changes, if any, should we expect in your approach to capital allocation, particularly regarding M&A and share repurchases?
    4. Your base business adjusted EBITDA guidance for 2024 is approximately $2.3 billion at a margin of 14%, despite lower single-family starts; what are the key drivers supporting this guidance, and how sustainable is this performance given the current market conditions?
    5. As you shift towards offering lower-cost products to help builders address affordability challenges, how is this impacting your gross profit margins, and what measures are you implementing to preserve profitability while meeting customer needs?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateAugust 5, 2024
    End Date/DurationN/A
    Total additional amount$1.0 billion
    Remaining authorization amount$841,816,489
    DetailsOffset dilution from the BMC Merger

    Debt Maturity Schedule

    YearAmount Due (in billions)Debt TypeInterest Rate (%)% of Total Debt
    20300.5505.00% Senior Notes5.0014.7% = (0.550 / 3.742) * 100
    20321.3004.25% Senior Notes4.2534.7% = (1.300 / 3.742) * 100
    20320.7006.375% Senior Notes6.37518.7% = (0.700 / 3.742) * 100
    20341.0006.375% Senior Notes6.37526.7% = (1.000 / 3.742) * 100
    N/A0.191Other Finance ObligationsN/A5.1% = (0.191 / 3.742) * 100
    N/A0.001Finance Lease ObligationsN/A0.0% = (0.001 / 3.742) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • U.S. LBM, 84 Lumber and Carter Lumber; specialty dealers, such as roofing building supply companies
    • Regional and local building supplies dealers; single and multi-site lumber yards; framing contractors
    • Component manufacturers, including Universal Forest Products and Stark Truss
    • Millwork operators, such as American Cedar and Millwork, and Western Pacific

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1999 PresentCurrent auditor

    Latest news

    Recent developments and announcements about BLDR.

    Corporate Leadership

      CFO Change

      ·
      Sep 19, 2024, 12:00 AM

      Peter Jackson, the current Chief Financial Officer (CFO) of Builders FirstSource, Inc., will be transitioning to the role of President & Chief Executive Officer (CEO) effective November 6, 2024. He will be succeeded by Pete Beckmann, who is currently the Senior Vice President of Financial Planning & Analysis, as the new CFO .