Builders FirstSource, America's biggest full-service lumberyard chain, reported today it swung to a net profit of $6.4 million in the final three months of 2016 from a $10.3 million loss in the year-earlier period.

Sales rose 6.3% to $1.55 billion, with more than two-thirds of the increase coming from commodity price increases, the Dallas-based dealer said. Gross margin (after deducting revenue from closed facilities) slipped to 25.3% of revenue, a one-point drop. The net income percentage works out to 4.1% of sales.

BFS prefers to measure itself in terms of adjusted EBITDA--earnings before interest, taxes, depreciation, amortization, and various other factors. By that metric, BFS swung to a positive $18.3 million from a negative $300,000 in the final three months of 2015. The dealer cited that change as proof of the success it has achieved in producing synergies and cutting debt payments following its July 2015 acquisition of ProBuild.

"We grew sales by 5.5%,, excluding closed locations, in the year, including 7.5% sales volume growth in the new residential construction end market," Floyd Sherman, the company's CEO, said in a statement. "Our focus and investments we have made in manufacturing capacity are driving returns, with sales of our manufactured products growing 10.2% over 2015, and reaching an 18% product mix in the fourth quarter.

"We have created significant value through our synergy cost savings initiatives, with the current run rate synergy savings already reaching $100 million, within our guidance range at the acquisition close," Sherman added. "Although we have more to capture from our integration efforts and opportunities to drive ongoing efficiencies, we have now implemented all actions necessary to capture $100 million of the cost savings associated with the ProBuild acquisition."

For all 2016, the company posted $6.37 billion in revenue. Pre-tax income totaled $21.7 million but thanks to $122.7 million in income tax benefits, BFS reported annual net income of $144.3 million. It said it won't pay any federal income tax this year because it's able to carry forward past net operating losses.

The company's balance sheet as of Dec. 31, 2016, shows $2.91 billion in assets. Goodwill accounts for $740.4 million of that total, along with $115.3 million in deferred income taxes. On the liability side, the company's long-term debt stood at $1.79 billion--roughly $137 million better than where it was one year earlier.

Revenues from lumber and sheet goods totaled $516.3 million in the fourth quarter, or 33.4% of all sales. That's up about 2 points from the final quarter of 2015. Sales of manufactured products totaled $273.1 million, or 17.7% of sales. There was an $11.5 million gain in sales of windows, doors and millwork, to $322.9 million, but sales of gypsum, roofing and insulation slipped to $123.4 million from a year-earlier $125.5 million.