Builders FirstSource, Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net sales for Q3 2024 were $4,232.5 million, a decrease of 6.7% from $4,534.3 million in Q3 2023. For the nine months, net sales totaled $12,580.2 million, down 2.8% from $12,946.5 million in the prior year. The decrease in sales was attributed to a 7.2% decline in core organic sales, primarily due to reduced activity in the multi-family customer segment and lower housing starts.
Gross margin for Q3 2024 was $1,386.3 million, down from $1,581.1 million in Q3 2023, reflecting a gross margin percentage of 32.8%, compared to 34.9% in the previous year. For the nine months, gross margin decreased to $4,148.9 million from $4,547.4 million, with the gross margin percentage falling to 33.0% from 35.1%. Income from operations for Q3 2024 was $428.0 million, down from $641.6 million in Q3 2023, while for the nine months, it decreased to $1,291.1 million from $1,685.9 million.
Net income for Q3 2024 was $284.8 million, a significant drop from $451.5 million in Q3 2023. For the nine months, net income was $887.7 million, down from $1,189.9 million in the same period last year. Basic net income per share for Q3 2024 was $2.45, compared to $3.62 in Q3 2023, and for the nine months, it was $7.45, down from $9.19.
The company completed acquisitions of 11 companies in 2024 for approximately $265.4 million, net of cash acquired, following five acquisitions in 2023 for $156.7 million. Notable acquisitions in 2024 included Quality Door & Millwork, Inc. and Hanson Truss Components, Inc. Builders FirstSource funded these acquisitions through cash on hand and borrowings under a $1.8 billion revolving credit facility.
As of September 30, 2024, total assets increased to $10,894.1 million from $10,499.5 million at the end of 2023, while total liabilities rose to $6,447.5 million from $5,767.1 million. Long-term debt increased to $3,700.2 million from $3,177.4 million. Cash and cash equivalents significantly improved to $328.1 million from $66.2 million at the end of 2023.
The company also initiated a share repurchase program of up to $1.0 billion in August 2024, repurchasing 6.8 million shares at an average price of $171.37 per share during the nine months ended September 30, 2024. Additionally, Builders FirstSource is facing ongoing legal claims related to construction defects, although management believes these will not materially affect the company's financial position.
About Builders FirstSource, Inc.
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