BFS reports $24.6 million loss for quarter
Builders FirstSource, one of the industry’s largest pro dealers, reported sales of $147.1 million for its fourth fiscal quarter, a 4.5% decline over sales of $154.0 million a year ago. The company estimates that sales increased 3.1% due to commodity inflation, but decreased approximately 7.6% due to volume and competitive pricing.
Net loss for the fourth quarter of 2010 was $24.6 million, compared with net income of $6.6 million for the fourth quarter of 2009.
Income (loss) from discontinued operations, which includes the results of discontinued Ohio and New Jersey operations, represented a loss of $0.1 million for the fourth quarter of 2010, compared with income of $0.3 million for the fourth quarter of 2009.
In year-end figures, the Dallas-based pro dealer posted $700.3 million for fiscal 2010, which ended Dec. 31, 2010, compared with $677.8 million for fiscal 2009. Net loss for the company was $95.5 million for fiscal 2010, compared with $61.8 million during fiscal 2009.
CEO Floyd Sherman said: “For the current quarter, the competitive pricing pressures we had seen throughout the first nine months of 2010 were still present, but we have recently seen signs that suggest pricing discipline may be returning to the market. Fourth-quarter gross margins were 19.1%, as compared with 19.7% for the fourth quarter of last year. For the year, we felt the negative impact of the commodity price volatility seen during the first half of 2010, as gross margins declined to 18.8% for the year, a 2.2% point decrease from gross margins of 21.0% in 2009. We were able to partially mitigate this margin pressure by continuing our focus on expense control, management of head count and flexing capacity where appropriate. We have done this while maintaining a presence within all of our markets. We have also become a more efficient company, and feel we are well positioned to respond to any increase in building activity.”