DALLAS, Feb. 20, 2020 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq: BLDR) today reported its results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Highlights:

  • Net sales for the quarter were $1.8 billion, a decline of $52.4 million, a decrease of 2.9%
    • Sales volume grew by an estimated 7.7% with improvement across all three customer segments, led by an 8.7% volume increase in our value-added product categories
    • Commodity deflation decreased net sales by an estimated 10.6%
  • Adjusted EBITDA of $109.3 million or 6.2% of net sales
  • Net income of $41.4 million, or $0.35 per diluted share, and adjusted net income of $47.2 million, or $0.40 per diluted share
  • Net debt to Adjusted EBITDA ratio of 2.5x, at the low end of our targeted range
  • Acquired Raney Components, a vertically-integrated distributor and installer of value-added products in Florida with annual revenue of approximately $140 million.

Commenting on the results, CEO Chad Crow remarked, “We delivered another quarter of strong results to end 2019 with a solid foundation to further build on our record of success. Continued focus on our operational excellence initiatives contributed to a robust fourth quarter gross margin, while our full year gross margin improved 230 basis points, allowing us to achieve record annual Adjusted EBITDA of $516 million. Furthermore, we continue to make strategic investments in our operations and acquisitions to drive enhanced growth in margin-accretive products and markets, while preserving our balance sheet strength to support value-enhancing initiatives. We believe we are the strongest company in our industry, which is a real tribute to our team’s hard work and dedication. As we look forward, we are confident that our efforts to further partner with our customers to streamline the construction process will allow us to drive profitable growth in the years to come.”

Peter Jackson, CFO, added, "We closed out the decade on a strong footing underpinned by record full year Adjusted EBITDA and free cash flow. I am very pleased with our de-leveraging progress, as we reduced our net leverage ratio by 0.6x year over year to 2.5x, the low end of our targeted range. Our team’s ability to drive profitable growth while generating cash through working capital efficiency validates the strength of our strategic initiatives to produce meaningful value creation.”

Fourth Quarter 2019 Compared to Fourth Quarter 2018

Net Sales

  • Net sales were $1.8 billion, a 2.9% decrease compared to the same period a year ago driven by the impact of deflation in commodity prices of approximately 10.6%. Lumber and lumber sheet goods sales declined by 16.1%, attributable to the deflation in commodity prices as compared to the same period a year ago. Our remaining product categories, excluding gypsum, roofing and insulation, achieved increased sales on higher volumes.
  • Sales volume, excluding commodity deflation, grew by an overall 7.7%. Our single-family end market grew by an estimated 7.5%, repair and remodel / other by 6.8% and multi-family by 13.3%. Sales volume in our value-added product categories grew by 8.7%, including 10.7% in Manufactured Products and 6.9% in our Windows, Doors and Millwork categories.

Gross Margin

  • Gross margin was $476.6 million compared to $492.8 million, a decrease of 3.3% over the prior year driven by the commodity deflation impact on net sales, mostly offset by an improved product mix and our continued focus on pricing discipline. Gross margin percentage remained relatively steady at 27.0 % versus 27.1% in the prior year period.

Selling, General and Administrative Expenses

  • SG&A was consistent with the fourth quarter of 2018, as operational efficiencies fully offset increased variable expenses related to higher sales volume.
  • SG&A as a percentage of net sales was 22.8%, an increase of 60 basis points, primarily the result of the impact of commodity price deflation on our net sales.

Interest Expense

  • Interest expense was $27.5 million in the fourth quarter of 2019, an increase of $4.1 million from the fourth quarter of 2018. This increase was primarily attributable to one-time charges of $3.5 million related to the partial repayment of the term loan in that period.
  • In addition, interest expense for the fourth quarter 2018 included a $3.2 million gain on debt extinguishment. However, these increases were partially offset by reduced interest expense attributable to lower outstanding debt balances in the fourth quarter of 2019 compared to the fourth quarter of 2018.

Income Tax Expense

  • Income tax expense was $6.3 million, or an effective tax rate of 13.2%, compared to $15.0 million, or an effective tax rate of 22.4% in the prior year. The year over year decrease was mainly driven by one-time items impacting the rate in the quarter.

Adjusted Net Income

  • Net income was $41.4 million, or $0.35 per diluted share, compared to $52.0 million, or $0.45 per diluted share, in the same period a year ago.
  • Adjusted net income was $47.2 million, or $0.40 per diluted share, compared to $53.1 million, or $0.46 per diluted share, in the prior year quarter. The decrease was primarily driven by the deflationary impact of commodity prices on net sales.

Adjusted EBITDA

  • Adjusted EBITDA declined $15.7 million to $109.3 million, a decrease of 12.6%. The decrease was primarily driven by lower gross margin dollars due to the impact of commodity price deflation on net sales. As a result, Adjusted EBITDA declined to 6.2% of sales in the fourth quarter from 6.9% in the same period a year ago.

Full Year December 31, 2019 Financial Information:

Net Sales         

  • Net sales were $7.3 billion, a 5.8% decrease compared to the prior year, driven by the impact of commodity price deflation. Sales volume increased by an estimated 6.5%, driven by increased volumes across all of our product categories, led by growth in value-added product categories.

Gross Margin

  • Gross profit increased $53.9 million to $2.0 billion. Our gross margin percentage increased to 27.2% from 24.9% in the prior year period, a 230 basis point improvement. The increase was primarily attributable to an improved product mix, the decline in the cost of commodities relative to our customer pricing commitments, and continued pricing discipline. In addition, sales growth from our higher margin, value-added product categories contributed to increased gross profit dollars and percentage compared to the prior year period.

Interest Expense

  • Interest expense was $109.6 million in 2019, an increase of $1.3 million from 2018. The increase was due to lower outstanding debt balances offset by $10.2 million in one-time charges related to the debt transactions executed during the year. In addition, interest expense for the full year 2018 included a $3.2 million gain on debt extinguishment.

Adjusted Net Income

  • Net income was $221.8 million, or $1.90 per diluted share, compared to $205.2 million, or $1.76 per diluted share, in the prior year period, representing an increase of $0.14 per diluted share, or 8.0%.
  • Adjusted net income was $245.1 million, or $2.09 per diluted share, compared to $221.2 million, or $1.90 per diluted share in the year ago period, representing an increase of $0.19 per diluted share.  The year over year increase in adjusted net income of $23.9 million, or 10.8%, was primarily driven by the higher gross margin.

Adjusted EBITDA

  • Adjusted EBITDA grew $14.5 million to $516.1 million, or 7.1% of net sales, compared to $501.6 million, or 6.5% of sales, attributable to higher gross margin dollars partially offset by increases in variable compensation related to the growth in estimated sales volume and profitability.  The 2.9% increase in Adjusted EBITDA, and the 60 basis points improvement in EBITDA margin, were primarily due to the factors described above.

Capital Structure, Leverage, and Liquidity Information:

  • Net debt was $1,285.9 million as of December 31, 2019. The net debt to Adjusted EBITDA leverage ratio remained steady at 2.5x compared to September 30, 2019, at the low end of the Company’s previously stated leverage target ratio of between 2.5x and 3.5x. 
  • Cash provided by operating activities was $504.0 million in 2019 which was positively impacted by commodity deflation on the value of working capital compared to the prior year period.
  • Cash used in investing activities was $199.2 million in 2019 including $92.9 million used for our acquisitions of Sun State and Raney in 2019 and capital expenditures of $112.9 million.
  • Liquidity as of December 31, 2019 was $695.3 million, consisting of $14.1 million cash on hand and $681.2 million net borrowing availability under our revolving credit facility.
  • In February of 2020, we issued $550.0 million in aggregate principal amount of senior unsecured notes due 2030 to redeem the remaining $503.9 million in aggregate principal amount of our senior secured notes due 2024, as well as, $47.5 million in aggregate principal amount of our senior secured notes due in 2027, and to pay related transaction premiums, fees and expenses.

Acquisition Activity:

In December 2019, we acquired certain assets and the operations of Raney Components and Raney Construction (“Raney”). Raney manufactures and installs wall panels, roof trusses, roof decking, interior wall framing and other select building products to its customers across Florida, with annual revenue of approximately $140 million.

In January 2020, we acquired certain assets and the operations of Bianchi & Company, Inc. (“Bianchi”). Bianchi is a supplier and installer of interior and exterior doors, crown moldings, open stair rail, chair rail, wainscoting, commercial hollow metal frames and doors and other custom millwork to its customers in the Carolina markets. Bianchi has annual revenue of approximately $30 million.

Since July 2019, we have completed five tuck-in acquisitions, adding six truss and millwork facilities to supplement organic growth, which in aggregate are expected to generate approximately $240 million in annual value-added net sales.

Outlook:

Peter Jackson, CFO, concluded, “I am extremely positive on the outlook for Builders FirstSource in the new decade ahead. Our company is well positioned to be the building supply company of choice for builders thanks to our enhanced geographic reach, diversified product offerings, national manufacturing capabilities, and strong partnerships with our customers. We are excited about our plans to drive greater value through our operational excellence initiatives as well as capitalizing on a strong economy and steady growth in the single family housing market. The continued execution of our strategic plan, in combination with an overall positive macroeconomic environment, puts us on firm footing to achieve our full year 2020 objectives. Thank you to all of our associates for their hard work and dedication to help us further advance our premier industry position.”

The Company has provided supplemental non-GAAP financial information for the consolidated company that is adjusted to exclude one-time integration, one-time refinancing, and other costs (“Adjusted”). As the information herein includes non-GAAP financial information, please refer to the accompanying financial schedules for non-GAAP reconciliations to their GAAP equivalents. 

Conference Call

Builders FirstSource will host a conference call Friday, February 21st, 2019 at 9:00 a.m. Central Time (CT) and will simultaneously broadcast it live on the Internet. The earnings release presentation will be posted at www.bldr.com under the “investors” section after the market closes on Thursday, February 20th.  To participate in the teleconference, please dial into the call a few minutes before the start time: 800-367-2403 (U.S. and Canada) and 334-777-6978 (international), Conference ID: 8532776.  A replay of the call will be available at 1:00 p.m. Central Time through March 7th.  To access the replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (international) and refer to pass code 8532776. The live webcast and archived replay can also be accessed on the Company's website at www.bldr.com under the “Investors” section.  The online archive of the webcast will be available for approximately 90 days.

About Builders FirstSource

Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling.  We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products.  We operate in 40 states with approximately 400 locations and have a market presence in 77 of the top 100 Metropolitan Statistical Areas, providing geographic diversity and balanced end market exposure.  We service customers from strategically located distribution and manufacturing facilities (certain of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. For more information about Builders FirstSource, visit the Company’s website at www.bldr.com.

Cautionary Notice

Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.  Readers are cautioned not to place undue reliance on forward-looking statements.  In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results may differ materially as a result of many factors.  All forward-looking statements are based upon information available to Builders FirstSource, Inc. on the date this release was submitted.  Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company’s growth strategies, including gaining market share, or the Company’s revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy.  Builders FirstSource, Inc. may not succeed in addressing these and other risks.  Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission.  Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

Contact:
Binit Sanghvi
VP Investor Relations                                                 
Builders FirstSource, Inc.
(214) 765-3804

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME 

 Three Months Ended
December 31,
 
 2019  2018 
      
 (In thousands, except per share amounts) 
Net sales$1,763,573  $1,815,980 
Cost of sales 1,287,017   1,323,201 
Gross margin 476,556   492,779 
Selling, general and administrative expenses 401,418   402,302 
Income from operations 75,138   90,477 
Interest expense, net 27,480   23,408 
Income before income taxes 47,658   67,069 
Income tax expense 6,291   15,048 
Net income$41,367  $52,021 
Comprehensive income$41,367  $52,021 
Net income per share:       
Basic$0.36  $0.45 
Diluted$0.35  $0.45 
Weighted average common shares:       
Basic 115,932   114,898 
Diluted 117,483   116,375 


BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME 

  Years Ended December 31, 
  2019  2018  2017 
          
  (In thousands, except per share amounts) 
Net sales $7,280,431  $7,724,771  $7,034,209 
Cost of sales  5,303,602   5,801,831   5,306,818 
Gross margin  1,976,829   1,922,940   1,727,391 
Selling, general and administrative expenses  1,584,523   1,553,972   1,442,288 
Income from operations  392,306   368,968   285,103 
Interest expense, net  109,551   108,213   193,174 
Income before income taxes  282,755   260,755   91,929 
Income tax expense  60,946   55,564   53,148 
Net income $221,809  $205,191  $38,781 
Comprehensive income $221,809  $205,191  $38,781 
Net income per share:            
Basic $1.92  $1.79  $0.34 
Diluted $1.90  $1.76  $0.34 
Weighted average common shares outstanding:            
Basic  115,713   114,586   112,587 
Diluted  117,025   116,554   115,597 


BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

  December 31, 
  2019  2018 
       
  (In thousands, except per share amounts) 
ASSETS        
Current assets:        
Cash and cash equivalents $14,096  $10,127 
Accounts receivable, less allowances of $13,492 and $13,054 at December 31, 2019 and 2018, respectively  614,946   654,170 
Other receivables  77,447   68,637 
Inventories, net  561,255   596,896 
Other current assets  39,123   43,921 
Total current assets  1,306,867   1,373,751 
Property, plant and equipment, net  721,887   670,075 
Operating lease right-of-use assets, net  292,684    
Goodwill  769,022   740,411 
Intangible assets, net  128,388   103,154 
Deferred income taxes  8,417   22,766 
Other assets, net  22,225   22,152 
Total assets $3,249,490  $2,932,309 
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable  436,823   423,168 
Accrued liabilities  308,950   292,526 
Current portion of operating lease liabilities  61,653    
Current maturities of long-term debt  13,875   15,565 
Total current liabilities  821,301   731,259 
Noncurrent portion of operating lease liabilities  236,948    
Long-term debt, net of current maturities, debt discount, premium and issuance costs  1,277,398   1,545,729 
Deferred income taxes  36,645    
Other long-term liabilities  52,245   58,983 
Total liabilities  2,424,537   2,335,971 
Commitments and contingencies        
Stockholders’ equity:        
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding at December 31, 2019 and 2018      
Common stock, $0.01 par value, 200,000 shares authorized; 116,052 and 115,078 shares issued and outstanding at December 31, 2019 and 2018, respectively  1,161   1,151 
Additional paid-in capital  574,955   560,221 
Retained earnings  248,837   34,966 
Total stockholders’ equity  824,953   596,338 
Total liabilities and stockholders’ equity $3,249,490  $2,932,309 


BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

  Years Ended December 31, 
  2019  2018
  2017 
          
  (In thousands) 
Cash flows from operating activities:            
Net income $221,809  $205,191   $38,781 
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and amortization  100,038   97,906    92,993 
Amortization of debt discount, premium and issuance costs  3,880   4,642    6,092 
Loss (gain) on extinguishment of debt  8,189   (3,170)   56,657 
Deferred income taxes  50,994   51,823    49,104 
Stock compensation expense  12,239   14,420    13,508 
Net (gain) loss on sales of assets and asset impairments  (949  (1,393   6,965 
Changes in assets and liabilities, net of assets acquired and liabilities assumed:            
Receivables  42,789   (9,221   (75,673)
Inventories  44,202   (5,425   (60,645)
Other current assets  4,674   (10,356   8 
Other assets and liabilities  1,611   5,637    8,315 
Accounts payable  4,070   (89,392   65,764 
Accrued liabilities  10,500   22,168    (23,341)
Net cash provided by operating activities  504,046   282,830    178,528 
Cash flows from investing activities:            
Purchases of property, plant and equipment  (112,870)  (101,411   (62,407)
Proceeds from sale of property, plant and equipment  6,545   4,753    2,981 
Cash used for acquisitions  (92,855)       
Net cash used in investing activities  (199,180)  (96,658   (59,426)
Cash flows from financing activities:            
Borrowings under revolving credit facility  1,040,000   1,662,000    1,370,000 
Repayments under revolving credit facility  (1,192,000)  (1,833,000   (1,020,000)
Proceeds from long-term debt and other loans  478,375   3,818     
Repayments of long-term debt and other loans  (610,834)  (65,312   (379,926)
Payments of debt extinguishment costs  (2,301)  (134   (48,704)
Payments of loan costs  (8,618)      (2,799)
Exercise of stock options  4,873   3,945    8,055 
Repurchase of common stock  (10,392)  (4,895)   (2,644)
Net cash used in financing activities  (300,897)  (233,578   (76,018)
Net increase (decrease) in cash and cash equivalents  3,969   (47,406   43,084 
Cash and cash equivalents at beginning of period  10,127   57,533    14,449 
Cash and cash equivalents at end of period $14,096  $10,127   $57,533 

Supplemental disclosure of non-cash activities

For the years ended December 31, 2019, 2018 and 2017, the Company retired assets subject to other finance obligations of $0.6 million, $0.6 million and $14.0 million and extinguished the related other finance obligations of $0.6 million, $0.7 million and $11.7 million, respectively.

The Company purchased equipment which was financed through finance lease obligations of $16.5 million, and capital lease obligations of $10.2 million and $14.2 million in the years ended December 31, 2019, 2018 and 2017, respectively. In addition, purchases of property, plant and equipment included in accounts payable were $3.4 million, $2.4 million and $3.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.


BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES Reconciliation of Adjusted Non-GAAP Financial Measures to their GAAP Equivalents (unaudited)
         
Note: The company provided detailed explanations of these non-GAAP financial measures in its Form 8K filed with the Securities and Exchange Commission on February 20, 2020. 
        
 Three months ended December 31, Twelve months ended December 31, 
  2019   2018   2019   2018  
                 
 (in millions) (in millions) 
Reconciliation to Adjusted EBITDA:        
GAAP Net Income$41.4  $52.0  $221.8  $205.2  
Integration related expenses 2.3   4.3   13.1   19.2  
Debt issuance and refinancing cost (1) 3.5   (3.2)  10.2   (3.2) 
Adjusted Net Income 47.2   53.1   245.1   221.2  
                 
Weighted average diluted common shares (in millions) 117.5   116.4   117.0   116.6  
Diluted adjusted net income per share:$0.40  $0.46  $2.09  $1.90  
Reconciling items:        
Depreciation and amortization expense 28.3   25.2   100.1   97.9  
Interest expense, net 24.0   26.6   99.4   111.4  
Income tax (benefit) expense 6.3   15.0   61.0   55.6  
Stock compensation expense 2.9   4.5   12.3   14.4  
(Gain)/loss on sale and asset impairments 0.3   (0.9)  (0.9)  (1.0) 
Other management-identified adjustments (2) 0.3   1.5   (0.9)  2.1  
Adjusted EBITDA$109.3  $125.0  $516.1  $501.6  
Adjusted EBITDA Margin 6.2%  6.9%  7.1%  6.5% 
         
(1) Costs associated with issuing and extinguishing long term debt in 2019 and 2018.      
(2) Primarily relates to severance and one time cost.        



BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES 
Financial Data 
(adjusted and unaudited) 
         
 Three months ended December 31, Twelve months ended December 31, 
  2019   2018   2019   2018  
                 
 (in millions except per share amounts) 
Net sales 1,763.6   1,816.0   7,280.4   7,724.8  
Gross margin 476.6   492.8   1,976.8   1,922.9  
Gross margin % 27.0%  27.1%  27.2%  24.9% 
Adjusted SG&A/Other (excluding depreciation and amortization) as a % of sales (1) 20.8%  20.3%  20.1%  18.4% 
Adjusted EBITDA 109.3   125.0   516.1   501.6  
Adjusted EBITDA margin % 6.2%  6.9%  7.1%  6.5% 
Depreciation and amortization (28.3)  (25.2)  (100.1)  (97.9) 
Interest expense, net of debt issuance cost and refinancing (24.0)  (26.6)  (99.4)  (111.4) 
Income tax expense (6.3)  (15.0)  (61.0)  (55.6) 
Other adjustments (3.5)  (5.1)  (10.5)  (15.5) 
Adjusted Net Income$47.2  $53.1  $245.1  $221.2  
Basic adjusted net income per share:$0.41  $0.46  $2.12  $1.93  
Diluted adjusted net income per share:$0.40  $0.46  $2.09  $1.90  
Weighted average common shares (in millions)        
Basic 115.9   114.9   115.7   114.6  
Diluted 117.5   116.4   117.0   116.6  
         
Note: The company provided detailed explanations of these non-GAAP financial measures in its Form 8-K filed with the Securities and Exchange Commission on February 20, 2020. 
(1) Adjusted SG&A and other as a percentage of sales is defined as GAAP SG&A less depreciation and amortization, stock comp, acquisition, integration and other expenses. GAAP SG&A in Q4-19 of $401.4M less $28.3M depreciation and amortization, less $2.3M of integration expenses, less $2.9M of stock comp, less $0.6 in gains on assets, impairments, and other. GAAP SG&A in FY19 of $1584.5M less $100.1M depreciation and amortization, less $13.1M of integration expenses, less $12.3M of stock comp, plus $1.8 in gains on assets, impairments, and other. 



BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
 Sales by Product Category
(adjusted and unaudited)
                  
 Three months ended December 31, Twelve months ended December 31, 
 2019 2018  2019
 2018 
 Net Sales % of Net Sales Net Sales % of Net Sales% Change Net Sales % of Net Sales Net Sales % of Net Sales% Change
Manufactured Products$356.7 20.2% $341.1  18.8%4.6% $1,449.5  19.9% $1,392.0  18.0%4.1%
Windows, Doors & Millwork 391.1 22.2%  365.7  20.1%6.9%  1,542.9  21.2%  1,445.9  18.7%6.7%
Value-Added Products 747.8 42.4%  706.8  38.9%5.8%  2,992.4  41.1%  2,837.9  36.7%5.4%
                  
Gypsum, Roofing & Insulation 119.6 6.8%  127.7  7.0%-6.4%  528.6  7.3%  528.4  6.9%0.0%
Siding, Metal & Concrete Products 170.3 9.6%  169.4  9.4%0.5%  712.6  9.8%  697.8  9.0%2.1%
Other 199.0 11.3%  183.7  10.1%8.3%  795.2  10.9%  758.5  9.8%4.8%
Specialized Products 488.9 27.7%  480.8  26.5%1.7%  2,036.4  28.0%  1,984.7  25.7%2.6%
                  
Lumber & Lumber Sheet Goods$526.9 29.9% $628.4  34.6%-16.1% $2,251.6  30.9% $2,902.2  37.6%-22.4%
                  
Total adjusted net sales$1,763.6 100.0% $1,816.0  100.0%-2.9% $7,280.4  100.0% $7,724.8  100.0%-5.8%
                  
Note: In Millions                 



 BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
 Interest Reconciliation
 (unaudited)
      
  Three months ended December 31, 
  Interest Expense Net Debt Outstanding 
  (in millions)
 2027 Secured Notes @ 6.75% Fixed$7.9  $475.0  
 2024 Secured Notes @ 5.625% Fixed 7.1   503.9  
 2024 Term Loan @ 5.6% (Floating LIBOR) 1.5   52.0  
 Revolving Credit Facility @ 4.4% (Floating LIBOR) 1.2   27.0  
 Amortization of debt issuance costs, discount and premium 0.9    
 Finance leases and other finance obligations 5.4   242.1  
 Loss on debt extinguishment 3.5    
 Cash   (14.1) 
 Total$27.5  $1,285.9  
      
      
      
  Three months ended December 31, Twelve months ended December 31, 
  2019 2019 
 Free Cash Flow(in millions) (in millions) 
 Operating activities$144  $504  
 Less: Capital expenditures (35)  (113) 
 Free Cash Flow$109  $391  

 

Source: Builders FirstSource, Inc.