DALLAS, April 25, 2013 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq:BLDR), a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, today reported its results for the first quarter ended March 31, 2013.
Highlights include the following (see financial schedules for more information, including non-GAAP reconciliations):
Commenting on the company's results, Floyd Sherman, Builders FirstSource Chief Executive Officer said, "I am very pleased to start our fiscal year with such strong financial results, as we ended the first quarter with over $319 million in sales and improved our Adjusted EBITDA by $7.5 million. We were able to achieve topline growth of greater than 30 percent for a sixth consecutive quarter." Mr. Sherman added, "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 percent and single-family units under construction increased 23.2 percent."
Chad Crow, Builders FirstSource Senior Vice President and Chief Financial Officer, added, "Though our sales growth for the quarter was very positive, the commodity lumber price inflation we experienced during the quarter once again placed significant downward pressure on gross margins. Subsequent to setting first quarter customer pricing in late December, commodity lumber prices increased 20 percent through the end of the first quarter. 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. For the quarter, we estimate commodity lumber inflation negatively impacted gross margin by 1.8 percentage points."
First Quarter 2013 Results Compared to First Quarter 2012
(See accompanying financial schedules for full financial details and reconciliations of Non-GAAP financial measures to their GAAP equivalents.)
Liquidity and Capital Resources
Outlook
Concluding, Mr. Sherman said, "We are excited about the prospects for the homebuilding industry, and the outlook continues to suggest favorable opportunities for Builders FirstSource. The National Association of Homebuilders ("NAHB") is now predicting a 24.2 percent increase in single-family housing starts for 2013, and an additional 28.8 percent 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."
Conference Call
Builders FirstSource will host a conference call Friday, April 26, 2013 at 10:00 a.m. Central Time (CT) and will simultaneously broadcast it live over the Internet. To participate in the teleconference, please dial into the call a few minutes before the start time: 888-461-2021 (U.S. and Canada) and 719-785-1768 (international). A replay of the call will be available at 3:00 p.m. CT through May 1st. To access the replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (international) and refer to pass code 6046293. The live webcast and archived replay can also be accessed on the company's website at www.bldr.com under the "Investors" section. The online archive of the webcast will be available for approximately 90 days.
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is a leading supplier and manufacturer of structural and related building products for residential new construction. The company operates 53 distribution centers and 44 manufacturing facilities in 9 states, 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. Builders FirstSource also distributes windows, interior and exterior doors, dimensional lumber and lumber sheet goods, millwork and other building products. For more information about Builders FirstSource, visit the company's website at www.bldr.com.
Cautionary Notice
Statements in this news release and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about expected market share gains, plans to reduce costs, forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Builders FirstSource, Inc. on the date this release was submitted. Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company's growth strategies, including gaining market share, or the Company's revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy. Builders FirstSource, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.'s most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
Financial Schedules to Follow
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES | ||
Condensed Consolidated Statements of Operations | ||
(unaudited) | ||
Three months ended | ||
March 31, | ||
2013 | 2012 | |
(in thousands, except per share amounts) | ||
Sales | $ 319,702 | $ 219,389 |
Cost of sales | 257,355 | 174,270 |
Gross margin | 62,347 | 45,119 |
Selling, general and administrative expenses (includes stock-based compensation expense of $1,335 and $803 for the three months ended in 2013 and 2012, respectively) | 61,078 | 50,833 |
Facility closure costs | 59 | 128 |
Income (loss) from operations | 1,210 | (5,842) |
Interest expense, net | 12,500 | 13,105 |
Loss from continuing operations before income taxes | (11,290) | (18,947) |
Income tax expense | 315 | 174 |
Loss from continuing operations | (11,605) | (19,121) |
Loss from discontinued operations (net of income tax expense of $0 in 2013 and 2012, respectively) | (203) | (67) |
Net loss | $ (11,808) | $ (19,188) |
Basic and diluted net loss per share: | ||
Loss from continuing operations | $ (0.12) | $ (0.20) |
Loss from discontinued operations | (0.00) | (0.00) |
Net loss | $ (0.12) | $ (0.20) |
Weighted average common shares: | ||
Basic and diluted | 95,989 | 95,261 |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES | ||||
Sales by Product Category | ||||
(unaudited) | ||||
Three months ended March 31, | ||||
2013 | 2012 | |||
(in thousands) | ||||
Prefabricated components | $ 60,820 | 19.0% | $ 43,449 | 19.8% |
Windows & doors | 63,605 | 19.9% | 49,726 | 22.7% |
Lumber & lumber sheet goods | 116,797 | 36.5% | 66,430 | 30.3% |
Millwork | 29,053 | 9.1% | 21,403 | 9.7% |
Other building products & services | 49,427 | 15.5% | 38,381 | 17.5% |
Total sales | $ 319,702 | 100.0% | $ 219,389 | 100.0% |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES | ||
Condensed Consolidated Balance Sheets | ||
(unaudited) | ||
March 31, | December 31, | |
2013 | 2012 | |
(in thousands, except per share amounts) | ||
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 117,666 | $ 131,432 |
Restricted cash | -- | 12,068 |
Accounts receivable, less allowance of $3,108 and $2,831 at March 31, 2013 and December 31, 2012, respectively | 137,443 | 117,405 |
Inventories | 132,830 | 108,999 |
Other current assets | 8,338 | 9,968 |
Total current assets | 396,277 | 379,872 |
Property, plant and equipment, net | 42,387 | 44,084 |
Goodwill | 111,193 | 111,193 |
Other assets, net | 13,634 | 15,692 |
Total assets | $ 563,491 | $ 550,841 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 98,869 | $ 79,397 |
Accrued liabilities | 41,452 | 37,778 |
Current maturities of long-term debt | 62 | 60 |
Total current liabilities | 140,383 | 117,235 |
Long-term debt, net of current maturities | 361,467 | 360,895 |
Other long-term liabilities | 24,580 | 24,615 |
Total liabilities | 526,430 | 502,745 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares issued and outstanding | -- | -- |
Common stock, $0.01 par value, 200,000 shares authorized; 96,900 and 96,916 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively | 962 | 957 |
Additional paid-in capital | 364,239 | 363,471 |
Accumulated deficit | (328,140) | (316,332) |
Total stockholders' equity | 37,061 | 48,096 |
Total liabilities and stockholders' equity | $ 563,491 | $ 550,841 |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES | ||
Condensed Consolidated Statements of Cash Flows | ||
(unaudited) | ||
Three months ended March 31, | ||
2013 | 2012 | |
(in thousands) | ||
Cash flows from operating activities: | ||
Net loss | $ (11,808) | $ (19,188) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,774 | 2,850 |
Amortization of deferred loan costs | 295 | 171 |
Amortization of debt discount | 588 | 328 |
Fair value adjustment of stock warrants | 426 | 3,148 |
Deferred income taxes | 134 | 116 |
Bad debt expense | 275 | 62 |
Stock compensation expense | 1,335 | 803 |
Net gain on sale of assets | (11) | (31) |
Changes in assets and liabilities: | ||
Receivables | (20,313) | (17,369) |
Inventories | (23,831) | (9,282) |
Other current assets | 1,434 | 1,234 |
Other assets and liabilities | (263) | (723) |
Accounts payable | 19,472 | 16,831 |
Accrued liabilities | 4,304 | 6,145 |
Net cash used in operating activities | (25,189) | (14,905) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (981) | (1,746) |
Proceeds from sale of property, plant and equipment | 11 | 31 |
Decrease in restricted cash | 13,030 | 114 |
Net cash provided by (used in) investing activities | 12,060 | (1,601) |
Cash flows from financing activities: | ||
Payments of long-term debt and other loans | (14) | (13) |
Deferred loan costs | (61) | (287) |
Exercise of stock options | 474 | 98 |
Repurchase of common stock | (1,036) | (496) |
Net cash used in financing activities | (637) | (698) |
Net change in cash and cash equivalents | (13,766) | (17,204) |
Cash and cash equivalents at beginning of period | 131,432 | 146,833 |
Cash and cash equivalents at end of period | $ 117,666 | $ 129,629 |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES | ||
Supplemental Interest Expense Information | ||
(unaudited - dollars in thousands) | ||
Three months ended | ||
March 31, | ||
2013 | 2012 | |
Detail of Interest Expense: | ||
Term loan | $ 6,469 | $ 4,651 |
Floating rate notes | 4,517 | 4,542 |
Credit facility | 14 | 8 |
Change in fair value of stock warrants * | 426 | 3,148 |
Amortization of debt discount * | 588 | 328 |
Amortization of deferred loan costs * | 295 | 171 |
Other | 191 | 257 |
Interest expense, net | $ 12,500 | $ 13,105 |
* Non-cash item |
BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES | |||
Reconciliation of Non-GAAP Financial Measures to their GAAP Equivalents | |||
(unaudited - dollars in thousands) | |||
Note: The company provided detailed explanations of these non-GAAP financial measures in its Form 8-K filed with the Securities and Exchange Commission on April 25, 2013. | |||
Three months ended | |||
March 31, | |||
2013 | 2012 | ||
Reconciliation to Adjusted EBITDA: | |||
Net loss | $ (11,808) | $ (19,188) | |
Reconciling items: | |||
Depreciation and amortization expense | 2,774 | 2,850 | |
Interest expense, net | 12,500 | 13,105 | |
Income tax expense | 315 | 174 | |
Loss from discontinued operations, net of tax | 203 | 67 | |
Stock compensation expense | 1,335 | 803 | |
Other | 52 | 106 | |
Adjusted EBITDA | $ 5,371 | $ (2,083) | |
Three months ended | |||
March 31, | |||
2013 | 2012 | ||
Net of Tax | Net of Tax | ||
Reconciliation to Adjusted loss from continuing operations: | |||
Loss from continuing operations | $ (11,605) | $ (19,121) | |
Reconciling items: | |||
Warrant fair value adjustment | 426 | 3,148 | |
Tax valuation allowance | 4,408 | 7,045 | |
Adjusted loss from continuing operations | $ (6,771) | $ (8,928) | |
Weighted average diluted shares outstanding | 95,989 | 95,261 | |
Adjusted loss from continuing operations per diluted share | $ (0.07) | $ (0.09) |