Builders FirstSource, Inc. reported its results for the 4Q and full year ended December 31, 2019.
4Q 2019 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.
4Q 2019 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% versus 27.1% in the prior year period
4Q 2019 net income was $41.4 million, or $0.35 per diluted share, compared to $52 million, or $0.45 per diluted share, in the same period a year ago
FY 2019 net sales were $7.3 billion, a 5.8% decrease compared to the prior year, driven by the impact of commodity price deflation.
FY 2019 gross profit increased $53.9 million to $2 billion. Gross margin percentage increased to 27.2% from 24.9% in the prior year period, a 230 basis point improvement.
FY 2019 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%.
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.
