Name: Builders FirstSource Inc. (NYSE:BLDR) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Builders FirstSource Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	22,726,418)	19,893,856)	8,558,874)	7,280,431)	7,724,771)
Cost of sales	(14,982,039)	(14,042,900)	(6,336,290)	(5,303,602)	(5,801,831)
Gross margin	7,744,379)	5,850,956)	2,222,584)	1,976,829)	1,922,940)
Selling, general and administrative expenses	(3,974,173)	(3,463,532)	(1,678,730)	(1,584,523)	(1,553,972)
Income from operations	3,770,206)	2,387,424)	543,854)	392,306)	368,968)
Interest expense, net	(198,373)	(135,877)	(135,688)	(109,551)	(108,213)
Income before income taxes	3,571,833)	2,251,547)	408,166)	282,755)	260,755)
Income tax expense	(822,464)	(526,131)	(94,629)	(60,946)	(55,564)
Net income	2,749,369)	1,725,416)	313,537)	221,809)	205,191)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

A comprehensive review of the financial performance from 2018 to 2022 reveals a period of substantial growth and expanding profitability. The most notable characteristic of this period is the exponential increase in both top-line revenue and bottom-line net income, particularly beginning in 2021.

Revenue and Gross Profitability: Net sales exhibited a stable trajectory between 2018 and 2020, followed by a significant acceleration in 2021, where sales more than doubled from 8.56 billion to 19.89 billion. This growth continued into 2022, reaching 22.73 billion. Concurrent with this revenue growth, gross margins improved not only in absolute terms but also as a percentage of sales, rising from approximately 24.8% in 2018 to 34.1% in 2022, indicating enhanced pricing power or more efficient cost of sales management.
Operating Efficiency and Leverage: Operating expenses, specifically selling, general, and administrative (SG&A) expenses, increased over the five-year period but grew at a much slower pace than net sales. While sales increased nearly threefold from 2018 to 2022, SG&A expenses grew by approximately 2.5 times. This disparity demonstrates strong operating leverage, where the company successfully scaled its operations without a proportional increase in overhead, leading to a surge in income from operations from 368.97 million in 2018 to 3.77 billion in 2022.
Net Income and Profitability Trends: Net income experienced a dramatic upward shift, growing from 205.19 million in 2018 to 2.75 billion in 2022. The growth in net income outpaced revenue growth, driven by the expansion of gross margins and the aforementioned operating leverage. The transition from 2020 to 2021 was the most critical period, with net income increasing from 313.54 million to 1.73 billion.
Financial Obligations and Taxation: Interest expenses remained relatively stable from 2018 through 2021, ranging between 108 million and 136 million, before increasing to 198.37 million in 2022. Income tax expenses scaled in alignment with the increase in pre-tax income, rising from 55.56 million in 2018 to 822.46 million in 2022, reflecting the significantly higher taxable earnings generated in the latter years of the period.

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