Builders FirstSource posts inflation-aided sales gain
Dallas-based Builders FirstSource saw sales surge in the first quarter -- up 45.7% to $319.7 million.
"We were able to achieve top-line growth of greater than 30% for a sixth consecutive quarter," said CEO Floyd Sherman. "Our sales increase once again exceeded the increase in residential construction activity, as actual single-family housing starts in the South Region increased 27.4% and single-family units under construction increased 23.2%."
Despite the top-line success, the company faced downward pressure on margins due to rising prices of commodity lumber, according to Chad Crow, senior VP and CFO. "While we were able to obtain price increases from many of our customers during the quarter, they were not enough to offset the continued commodity price inflation," he said.
Net loss for the first quarter of 2013 was $11.8 million, compared with a net loss of $19.2 million in the first quarter of 2012.
Sherman added: "We are excited about the prospects for the home-building industry, and the outlook continues to suggest favorable opportunities for Builders FirstSource. The National Association of Homebuilders is now predicting a 24.2% increase in single-family housing starts for 2013, and an additional 28.8% increase in 2014. We believe Builders FirstSource is well positioned to take advantage of this recovery. Our strategy remains focused on increasing our market share and improving our operating margins as we move into the spring and summer building season."