• Net sales of $2.5 billion for the quarter increased 43.5% compared to the prior year period
  - Core organic sales increased 15.0%, excluding acquisitions and commodity impacts
  - Commodity inflation increased net sales 26.5%
  - Acquisitions contributed to net sales growth of 2.0%
• Gross profit of $669.2 million increased 40.4% compared to the prior year period
• Net income of $139.9 million, or $1.18 per diluted share, and adjusted net income of $149.0 million, or $1.26 per diluted share
• Adjusted EBITDA more than doubled to $257.1 million, driven by solid demand across all three customer end markets and commodity inflation
• Strong quarter-end balance sheet with a net debt to LTM Adjusted EBITDA ratio of 1.7x and liquidity of $1.2 billion

Chad Crow, CEO of Builders FirstSource, commented, "Record fourth quarter results reflect an exceptional finish to a year of remarkable performance, despite the challenges in 2020. Solid momentum from the continued execution of our strategic plan combined with strong residential market tailwinds positions Builders FirstSource to accelerate its success through the recently completed combination with BMC. The combined company provides a broader platform for growth including a deepened presence in the top housing markets across the nation. It has been my absolute pleasure to help build this great company over the past 21 years, and I believe that Dave Flitman's proven ability to drive sustainable growth with a defined vision will lead to further value creation for our shareholders in the quarters and years to come."

Dave Flitman, President of Builders FirstSource who will succeed Mr. Crow as CEO on April 1, added, "We are very excited about our merger, which was overwhelmingly approved by the shareholders of both companies and positions us with a long runway of growth well into the future. I want to thank Chad for his partnership in creating the premier specialty building materials distributor in the U.S. On a pro forma basis, our combined companies achieved outstanding top and bottom-line performance in 2020, including $12.8 billion in net sales and over $1 billion of Adjusted EBITDA. Our integration efforts are progressing very well against our plan and we remain confident in delivering our expected run rate cost savings of $130 million to $150 million by the end of 2023. I look forward to working with our more than 26,000 team members to execute our strategy and foster a culture where we live our values of safety, people, integrity, customers and excellence."

Peter Jackson, CFO of Builders FirstSource, said, "We entered 2021 with a strong foundation for our best-in-class solutions to thrive, underpinned by a pro forma leverage ratio for our combined companies of 1.3 times and free cash flow in excess of $286 million. We continue to evaluate opportunities to leverage the strength of our balance sheet as our debt falls. Looking ahead, we expect favorable market tailwinds from continued robust new single-family home demand to drive additional growth, and cash generation."

• Net sales for the fourth quarter ended December 31, 2020 were $2.5 billion, a 43.5% increase compared to a year ago. Core organic sales, which excludes acquisitions, commodity price fluctuations and differences in selling days between periods, increased by 15.0% while commodity price inflation added 26.5% to net sales.
• Acquisitions completed during the prior four quarters contributed net sales growth of 2.0%.
• Value-added core organic sales grew by an estimated 10.8%, led by 16.8% growth in our Manufactured Products category and 5.2% growth in our Windows, Doors, and Millwork category, as solid growth nationally was hindered by material availability constraints.
• Demand improved across our three customer end markets. Single family, repair and remodel / other and multi-family grew estimated core organic sales by 18.2%, 6.1% and 9.9% respectively.

• SG&A in the fourth quarter of 2020 was $455.3 million, an increase of approximately $53.9 million compared to the prior year period, driven primarily by higher variable compensation related to the increase in profitability. Excluding the increase in variable compensation, underlying SG&A increased by $5.6 million or 1.8%.
• As a percentage of net sales, SG&A decreased by 480 basis points to 18.0% in the fourth quarter of 2020. Contributing to the decrease as a percentage of net sales was the effect of commodity price inflation, core organic growth in our net sales, as well as continued expense control.

• GAAP net income was $139.9 million, or $1.18 per diluted share, compared to $41.4 million, or $0.35 per diluted share, in the same period a year ago.
• Adjusted net income was $149.0 million, or $1.26 per diluted share, compared to $45.8 million, or $0.39 per diluted share, in the fourth quarter of 2019. The 223.1% increase in adjusted net income was primarily driven by the increase in net sales described above.

• SG&A was $1.7 billion, an increase of approximately $94.2 million compared to the prior year period, mainly due to higher variable compensation driven by increased profitability. Excluding the increase in variable compensation, SG&A increased $47.2 million, or 3.8%.
• As a percentage of net sales, SG&A decreased by 215 basis points from 21.8% to 19.6% for the full year 2020. Contributing to the decrease was the effect of commodity price inflation as well as core organic growth in our net sales.

• GAAP net income was $313.5 million, or $2.66 per diluted share, compared to $221.8 million, or $1.90 per diluted share, for the full year 2019, an increase of $0.76 per diluted share, or 40.0%.
• Adjusted net income was $354.5 million, or $3.01 per diluted share, compared to $239.5 million, or $2.05 per diluted share, for the full year 2019, an increase of $0.96 per diluted share. The increase in adjusted net income of $115.0 million, or 48.0%, was primarily driven by the increase in net sales, partially offset by higher SG&A.

• Cash generated by operating activities was $260.1 million for the full year. Cash used in investing activities was $136.2 million, including capital expenditures, net of proceeds, of $103.6 million and $32.6 million used for our acquisitions.
• Liquidity as of December 31, 2020 was $1.2 billion, consisting of $747.0 million in net borrowing availability under the revolving credit facility and $423.8 million cash on hand.
• Adjusted EBITDA, on a trailing twelve-month basis, was $700.2 million and net debt was approximately $1.2 billion as of December 31, 2020. Our net leverage ratio declined sequentially to 1.7x in December 31, 2020 versus 2.3x at September 30, 2020 and 2.5x at December 31, 2019.
  

The Company has provided supplemental unaudited financial data of the combined company in this press release. The below financial data combines Builders FirstSource and BMC historical operating results as if the businesses had been operated together on a combined basis during prior periods along with adjustments to reclassify certain BMC historical financial information to conform to Builders FirstSource historical financial information. This financial data is not intended to be, and was not, prepared on a basis consistent with the unaudited pro forma condensed combined financial information included in Builders FirstSource's Pre-effective amendment to an S-4 filing dated November 17, 2020 with the U.S. Securities and Exchange Commission (the "Pro Forma S-4 Filing"), which provides the pro forma data information prepared in accordance with Article 11 of SEC Regulation S-X.

A table accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bfaaf86d-1d0e-4277-b6cd-c796d177b955

Pro forma combined gross margin percentage in the fourth quarter 2020 was 26.0%, down from 26.8% in the prior period. The decrease in gross margin percentage was primarily attributable to a shift in sales mix driven by commodity inflation compared to the prior year period. Additionally, the sharp rise in commodity prices during the quarter relative to our short-term customer pricing commitments contributed to the decline. For the full year 2020, pro forma gross margin percentage was 25.8%, down from 26.9% in the prior year.

• Single family starts growth across our geographies in the high single digits; multi-family starts decline in the low single digits; and R&R growth in the low single digits.
• Commodity tailwind of 0% to 10% compared to the prior year
• Recently completed acquisitions net sales accretion of 2%
• Less selling days of approximately 1% or 2 fewer days
• Depreciation and amortization expenses in the range of $540 million to $550 million.
• Capital Expenditures in the 1.4% to 1.6% range of net sales
• Interest expense in the range of $110 million to $115 million
• An effective tax rate of approximately 23.0% to 25.0%

Conference Call
Builders FirstSource will host a conference call Friday, February 26^th, 2021, at 8:00 a.m. Central Time (CT) and will simultaneously broadcast it live on the Internet. The earnings release presentation will be posted at www.bldr.com under the "investors" section before the market opens on Friday, February 26^th. To participate in the teleconference, please dial into the call a few minutes before the start time: 800-949-2175 (U.S. and Canada) and 646-828-8143 (international), Conference ID: 6228010. A replay of the call will be available at 12 noon Central Time through March 13^th. To access the replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (international) and refer to pass code 6228010. The live webcast and archived replay can also be accessed on the Company's website at www.bldr.com under the "Investors" section. The online archive of the webcast will be available for approximately 90 days.

About Builders FirstSource
Headquartered in Dallas, Texas, 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. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. We operate in 40 states with approximately 550 locations and have a market presence in 46 of the top 50 Metropolitan Statistical Areas, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (certain of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. For more information about Builders FirstSource, visit the Company's website at www.bldr.com.

Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource, Inc. on the date this release was submitted. Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the recent novel coronavirus disease 2019 (also known as "COVID-19") pandemic, the Company's merger with BMC, the Company's growth strategies, including gaining market share, or the Company's revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy. Builders FirstSource, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.'s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") and in the other reports filed by the Company with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

The financial measures entitled Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, diluted Adjusted net income per share and Free cash flow are not financial measures recognized under GAAP and are therefore non-GAAP financial measures. The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and operating results. Adjusted EBITDA is defined as GAAP net income before depreciation and amortization expense, interest expense, net, income tax expense and other non-cash or special items including stock compensation expense, acquisition and integration expense, debt issuance and refinancing costs, gains (loss) on sale and asset impairments and other items. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. Adjusted net income is defined as GAAP net income before non-cash or special items including acquisition and integration expense and debt issuance and refinancing cost offset by the tax effect of those adjustments to net income. Adjusted net income per diluted share is defined as Adjusted net income divided by weighted average diluted common shares outstanding. Free cash flow is defined as GAAP net cash from operating activities less capital expenditures, net of proceeds from the sale of property, plant and equipment.

Company management uses Adjusted EBITDA, Adjusted EBITDA margin and Adjusted net income as supplemental measures in its evaluation of the Company's business, including for trend analysis, purposes of determining management incentive compensation and budgeting and planning purposes. Company management believes that these measures provide a meaningful measure of the Company's performance and a better baseline for comparing financial performance across periods because these measures eliminate the effects of period to period changes, in the case of Adjusted EBITDA and Adjusted EBITDA margin, in taxes, costs associated with capital investments, interest expense, stock compensation expense, and other non-cash and non-recurring items and, in the case of Adjusted net income, in certain non-recurring items. Company management also uses free cash flow as a supplemental measure in its evaluation of the Company's business, including for purposes of its internal liquidity assessments. Company management believes that free cash flow provides a meaningful evaluation of the Company's liquidity.

The Company believes that these non-GAAP financial measures provide additional tools for investors to use in evaluating ongoing operating results, cash flows and trends and in comparing the Company's financial measures with other companies in the Company's industry, which may present similar non-GAAP financial measures to investors. However, the Company's calculation of these financial measures are not necessarily comparable to similarly titled measures reported by other companies. Company management does not consider these financial measures in isolation or as alternatives to financial measures determined in accordance with GAAP. Furthermore, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company's financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company's GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below.

The Company's Adjusted EBITDA outlook and full-year forecast for its effective tax rate exclude the impact of certain income and expense items that management believes are not part of underlying operations. These items may include, but are not limited to, loss on early extinguishment of debt, restructuring charges, certain tax items, and charges associated with non-recurring professional and legal fees associated with acquisitions. The Company's management cannot estimate on a forward-looking basis without unreasonable effort the impact these income and expense items will have on its reported Net income and its reported effective tax rate because these items, which could be significant, are difficult to predict and may be highly variable. As a result, the Company does not provide a reconciliation to the most comparable GAAP financial measure for its Adjusted EBITDA outlook or its effective tax rate on operations forecast. Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to the Company's outlook.

For avoidance of doubt, the Pro Forma Combined Unaudited and Adjusted Financial Data included in this release was not intended to be, and was not, prepared on a basis consistent with the unaudited pro forma condensed combined financial data included in Builders FirstSource's Registration Statement on Form S-4 filed with the SEC and that was declared effective by the SEC on November 18, 2020 (the "Form S-4"), which provides the pro forma financial data prepared in accordance with Article 11 of SEC Regulation S-X. For instance, the Pro Forma Combined Unaudited and Adjusted Financial Data does not give effect to the BMC merger under the acquisition method of accounting in accordance with Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 805, Business Combinations ("ASC Topic 805"), with Builders FirstSource treated as the legal and accounting acquirer, and was not prepared to reflect the merger as if it occurred on the first day of any of the fiscal periods presented. The Pro Forma Combined Unaudited and Adjusted Financial Data has not been adjusted to give effect to pro forma events that are (1) directly attributable to the merger, (2) factually supportable, or (3) expected to have a continuing impact on the combined results of Builders FirstSource and BMC. Consequently, the Pro Forma Combined Unaudited and Adjusted Financial Data is intentionally different from, but does not supersede, the pro forma financial data set forth in the Form S-4.

In addition, the Pro Forma Combined Unaudited and Adjusted Financial Data does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The Pro Forma Combined Unaudited and Adjusted Financial Data have no impact on Builders FirstSource's or BMC's previously reported consolidated balance sheets or statements of operations, cash flows or equity.

Tables accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/6419e81f-1847-4648-bf24-2ee3f9e6b53d