Builders FirstSource (BFS) announced today its fourth quarter net income shrank to $2.4 million, down from its year-earlier net income of $4.5 million. Sales rose 7.5% from the company's 2013 fourth quarter totals to $396.7 million. But excluding its recent acquisitions, the company's sales only rose 3%, reported BFS CFO Chad Crow in an earnings statement.
The Dallas-based dealer's gross margin reached 22.8% in the quarter, up slightly from its 4Q13 gross margin of 22.5%. Sales and general and administrative expenses increased 19.9% in the quarter from a year earlier to total $9.4 million.
"We produced another solid quarter of gross margin expansion," said COO Chad Crow. "I'm very pleased to say we improved our margin percentage sequentially each quarter of 2014, resulting in an 80 basis point increase year-over-year."
BFS measures its performance via adjusted EBITDA--earnings plus depreciation and amortization, interest expense, income tax expenses, stock compensation expense, and acquisition cost. The company's adjusted EBITDA rose to $17.7 million, or 4.5% of sales, in the fourth quarter from its year-ago adjusted EBITDA of $16.2 million, or 4.4% of sales.
The company's revenue mix was roughly the same in the fourth quarter as it was last year: Lumber and sheet goods contributed 30.7% of sales, down from 33.3%; window and door sales rose slightly to 23.2% of the total (up from 22.4%); prefabricated components contributed 19.9% (from 19.5%); millwork provided 11.1% (up from 9.6%); and other building products and services provided 15.1% of all sales (down from 15.2%).
The company has had a flurry of openings and acquisitions in recent months, most recently with the buying of Cibolo, Texas-based manufacturer TimberTech. Additionally, in December, the company opened two new distribution facilities in Houston and San Antonio, Texas.