Q4 sales rise 31% at Builders FirstSource
Dallas-based pro dealer Builders FirstSource reported sales of $192.7 million for its fourth fiscal quarter, an increase of 31.0% from sales of $147.1 million in the fourth quarter a year ago. The company estimated that sales increased approximately 29% due to increased sales volume and 2% due to price.
Net loss for the quarter, which ended Dec. 31, 2011, was $16.7 million, compared with $24.6 million in the corresponding period a year ago.
Commenting on the quarter, Builders FirstSource CEO Floyd Sherman said: “We accomplished this substantial sales increase despite actual U.S. single-family starts increasing only 4.7%, the average number of U.S. single-family units under construction decreasing 10.7%, and average commodity prices being relatively flat during the quarter.”
For fiscal year 2011, the southeastern LBM chain ended the year with sales of $779.1 million, up 11.2% over fiscal year 2010 sales of $700.3 million.
Net loss for 2011 was $65 million, compared with $95.5 million in 2010.
“We continue to open a significant number of new accounts and increase our sales with the national builders,” Sherman continued. “In addition, our improved liquidity made possible by our new term loan enabled us to take advantage of opportunistic inventory buys toward the end of the year. Our strong inventory position at year-end should allow us to cover our customer requirements in the first quarter of 2012, and also give our sales force the flexibility to continue to pursue new sales opportunities.
“Though 2011 presented us with the fewest number of U.S. single-family housing starts since this downturn began, we significantly improved our results through the continued execution of our strategy, which focuses on pricing discipline, cost containment, preserving liquidity and providing superior customer service,” he added. “I believe that through the dedication and sacrifices of our employees, we have positioned Builders FirstSource to outperform the competition and take full advantage of the expected housing recovery in our markets. I am truly excited about the future of our company, and am ever-grateful for our employees, customers and vendors that have partnered with us during these trying times.”