Builders FirstSource (BFS) reported today it returned to the black in the second quarter, posting a $10.6 million net profit vs.a $48.2 million loss in the year-earlier period. Sales rose 7.1% to $426.5 million, the biggest amount for any quarter since 2006.
Gross margin percentage climbed to 22% from 20.7% in 2013's April-to-June period. Income from operations gained 31.8% to $17.4 million. Adjusted EBITDA--which it defines as net income excluding depreciation, amortization, interest expense, income taxes, and stock compensation--grew to $20.4 million from $16.7 million.
Floyd Sherman, BFS' chief executive officer, noted that the company's sales rose despite market prices for lumber and sheet goods that averaged 8.8% less than their sales price last year.
This quarter's net profit looked so good compared with last year's largely because the company recorded a $61.1 million interest expense in 2013, when among other things it shelled out $39.5 million to terminate an old loan so it could do a refinancing. The company's interest expense in 2014's second quarter was just $6.5 million.
Dallas-based BFS is the sixth-biggest company on the ProSales 100, with 2013 sales of $1.49 billion. It serves markets in the Southeast such as Houston, where on June 30 it expanded its presence by acquiring Slone Lumber.