Builders FirstSource — Nov 5, 2024 release

Our scale and financial flexibility help us act as a key partner to homebuilders, and we have clear line of sight to compound value creation over the long term.”   Third Quarter 2024 Financial Performance Highlights All Year-Over-Year Comparisons Unless Otherwise Noted: Net Sales • Net sales of $4.2 billion, a 6.7% decrease, driven by a 7.2% decline in core organic sales as Multi-Family continues to trend downward and commodity deflation of 2.9%, partially offset by growth from acquisitions of 2.0% and one additional selling day contributing 1.4%.   • Core organic net sales declined 7.2%. Single-Family declined 4.6% and Multi-Family declined 30.9%, while Repair and Remodel (“R&R”)/Other increased 0.8%. On a weighted basis, Multi-Family and Single-Family lowered net sales by 4.2% and 3.2%, respectively, while R&R/Other raised sales by 0.2%.   Gross Profit • Gross profit was $1.4 billion, a decrease of 12.3%. Gross profit margin percentage decreased 210 basis points to 32.8%, primarily driven by ongoing Multi-Family and core organic normalization.   Selling, General and Administrative Expenses • SG&A was $958.3 million, an increase of $18.8 million, or 2.0%, primarily driven by additional expenses from operations acquired within the last twelve months and asset write-offs, which were partially offset by lower variable compensation on decreased sales. As a percentage of net sales, total SG&A increased by 190 basis points to 22.6%, primarily attributable to reduced operating leverage.   2   Interest Expense • Interest expense increased $4.1 million to $54.3 million, primarily due to higher average debt balances.   Income Tax Expense • Income tax