Builders FirstSource posts $20 million loss
Builders FirstSource, the industry’s sixth largest pro dealer, posted sales of $302.3 million for its fourth fiscal quarter, a drop of 31 percent compared to revenues of $438.6 million in the same quarter last year. The company posted a net loss of $20.4 million for the quarter, which ended on Dec. 31, 2007. This compares to a net income of $3.9 million for the fourth quarter of 2006.
For the year-end figures, Builders FirstSource reported sales of $1.59 billion, compared to $2,24 billion, a 29 percent decline. Net loss was $23.8 million, compared to net income of $68.9 million for fiscal 2006.
In a prepared statement, Charles Horn, Builders FirstSource senior vp and CFO, said: “We continue to execute our strategy of reducing headcount, rationalizing physical capacity, restructuring underperforming operations and driving operational improvements.” The Dallas pro dealer has reduced its head count by approximately 36 percent since the housing correction started in March 2006, according to the statement.
“We improved our overall liquidity during the fourth quarter of 2007 by entering into a new $350 million revolving credit facility,” Horn continued. “At the end of December, we had approximately $120 in availability under the credit facility and $98 million in cash on hand for nearly $220 million in combined liquidity.”
Builders FirstSource is a lumber and building materials distributor with locations in 13 states, principally in the southern and eastern U.S.