DALLAS, April 25, 2011 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq:BLDR), a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, today reported its results for the first quarter ended March 31, 2011.
"Our sales for the first quarter of 2011 were $162.8 million, up approximately 1.0% when compared to the first quarter of 2010, despite an approximate 20 percent decline in single-family starts over this same time period. Commodity prices for lumber and lumber sheet goods were, on average, comparable over these same periods. We believe our improved sales performance despite the difficult macro-economic environment was due to our strong competitive position and competitors exiting our markets, and is indicative of market share gains over this time period. The March 2011 seasonally adjusted annual rate for U.S. single-family housing starts decreased to 422,000, down approximately 21 percent from the annualized rate of 535,000 in March 2010," said Floyd Sherman, Builders FirstSource Chief Executive Officer. "Actual U.S. single-family housing starts for the first quarter of 2011 were 89,900, a decrease of 21.4 percent compared to the first quarter of 2010. In the South Region, as defined by the U.S. Census Bureau, and which includes all of our markets, we saw similar trends as actual single-family housing starts were 52,700, down 19.3 percent, and single-family units under construction were 110,800, down 14.6 percent compared to the first quarter of 2010."
Mr. Sherman added, "First quarter gross margins were 19.3%, up 1.1 percentage points from 18.2% in the first quarter of 2010, and slightly better than the 19.1% gross margin from the fourth quarter of 2010. Slightly increased sales volume combined with a decrease of fixed costs in cost of goods sold was the primary driver behind our gross margin improvement for the quarter. Looking at our operating expenses on a quarter-over-quarter comparative basis, we again demonstrated our ability to control costs as selling, general and administrative expenses decreased 5.5 percent on $1.4 million more in sales. Adjusted EBITDA loss in the current quarter was $9.7 million, an improvement over the Adjusted EBITDA loss of $15.3 million in the first quarter of 2010."
Chad Crow, Builders FirstSource Senior Vice President and Chief Financial Officer commented on the first quarter results, saying, "Our liquidity at the end of the current quarter was approximately $115 million, which was better than anticipated due to our improved financial performance. Our $115 million of liquidity consisted of $77.6 million in available cash and approximately $37.8 in borrowing availability under our revolving credit facility. Of the $25.6 million of cash used in the current quarter, $8.4 million was due to an increase in working capital and $0.5 million related to capital expenditures. The remaining $16.7 million was cash used to fund general operations and is a $4.2 million improvement over the $20.9 million of cash used for the same purpose in the first quarter of last year."
First Quarter 2011 Results Compared to First Quarter 2010
(See accompanying financial schedules for full financial details and reconciliations of Non-GAAP financial measures to their GAAP equivalents.)
Liquidity and Capital Resources
Mr. Sherman concluded, "We are encouraged by our first quarter financial results, especially in light of continued housing market challenges, the difficult pricing environment and the overall state of the economy. As we anticipated, quarter-over-quarter comparisons will be very difficult through the first half of this year due to the temporary momentum created by the expiration of the federal tax credit for first-time homebuyers during the first half of 2010. We remain optimistic about the long-term health of our industry and our ability to endure the trying conditions those of us in the housing industry continue to face. My sincere gratitude goes out to all Builders FirstSource employees for their ongoing dedication and commitment to seeing the Company through this downturn."
Builders FirstSource will host a conference call today, Monday, April 25, 2011, at 9:00 a.m. Central Time (CT) and will simultaneously broadcast it live over the Internet. To participate in the teleconference, please dial into the call a few minutes before the start time: 888-791-4319 (U.S. and Canada) and 913-312-1424 (international). A replay of the call will be available from 2:00 p.m. through April 30, 2011. To access the replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (international). Please refer to pass code 8169569. To access the webcast, go to www.bldr.com and click on "Investors." The online archive of the webcast will be available for approximately 90 days.
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is a leading supplier and manufacturer of structural and related building products for residential new construction. The company operates 52 distribution centers and 46 manufacturing facilities in 9 states, principally in the southern and eastern United States. Manufacturing facilities include plants that manufacture roof and floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes windows, interior and exterior doors, dimensional lumber and lumber sheet goods, millwork 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, plans to reduce costs, forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, 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. 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 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. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
Financial Schedules to Follow
CONTACT: M. Chad Crow
Senior Vice President and Chief Financial Officer
Builders FirstSource, Inc.