Losses narrow at Builders FirstSource
Builders FirstSource, one of the industry’s largest pro dealers, reported $206.4 million in sales for the second quarter of 2011, a decrease of 2.4% over sales of $211.5 million in the second quarter a year ago. The company attributed the decline to commodity price deflation, which was partially offset by a slight increase in sales volume, the company said.
Net loss for the Dallas-based LBM chain was $15.5 million, compared with a net loss of $19 million in the corresponding period of 2010.
During the current quarter, Builders FirstSource recorded $1.9 million of facility closure costs primarily related to the closure of a distribution facility in Georgia.
“We are very encouraged by our second-quarter results, as our near break-even adjusted EBITDA was our best operating performance since the third quarter of 2007,” said Floyd Sherman, CEO at Builders FirstSource. “We finished the current quarter with sales of $206.4 million, down just 2.4% compared with sales of $211.5 million in the second quarter of 2010. While U.S. single-family housing starts and average commodity prices were down 13.1% and 20.8%, respectively, over this same time period, our sales volume was up slightly, which we believe is indicative of significant market share gains during the quarter.”
Sherman added: “Though there continues to be a significant amount of uncertainty in the macro-economic factors that drive housing demand, we are seeing positive trends in our results in spite of the difficult environment.”
Builders FirstSource operates 51 distribution centers and 46 manufacturing facilities in nine states, often on the same site, 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.