This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Builders FirstSource Reports First Quarter 2013 Results

Stocks in this article: BLDR

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.)

  • Sales were $319.7 million compared to $219.4 million last year, an increase of $100.3 million or 45.7 percent. We estimate sales increased 29.7 percent due to increased volume and 16.0 percent due to price.  
  • Gross margin percentage was 19.5 percent in the current quarter, down from 20.6 percent in the same quarter last year. Our gross margin decreased 1.8 percentage points largely due to commodity lumber inflation during the quarter, which was offset by a 0.7 percentage point gross margin improvement due to increased sales volume.  
  • Selling, general and administrative ("SG&A") expenses increased $10.2 million, or 20.2 percent, in the current quarter. As a percentage of sales, SG&A expense decreased to 19.1 percent in the current quarter, as compared to 23.2 percent in the first quarter of 2012. Our salaries and benefits expense, excluding stock compensation expense, was $37.7 million, or 11.8 percent of sales, in the current quarter compared to $31.1 million, or 14.2 percent of sales, in the first quarter of 2012. Delivery expense increased $1.4 million and other general administrative expense increased $1.2 million, both a result of increased sales volume.  
  • Interest expense was $12.5 million in the current quarter, a decrease of $0.6 million from the first quarter of 2012. The decrease was primarily related to a $2.7 million reduction in the non-cash, fair value adjustment related to stock warrants issued in connection with our term loan, offset by interest on the additional term loan principal borrowed in December 2012.  
  • We recorded $0.3 million of income tax expense in the first quarter of 2013, compared to $0.2 million in the first quarter of 2012. We recorded an after-tax, non-cash valuation allowance of $4.4 million and $7.0 million in the first quarters of 2013 and 2012, respectively, related to our net deferred tax assets. Absent the valuation allowance, the effective tax rate would have been 36.3 percent in both the first quarter of 2013 and 2012. As of the end of the current quarter, the company's gross federal income tax net operating loss available for carry-forward was approximately $245 million.  
  • Loss from continuing operations was $11.6 million, or $0.12 loss per diluted share, compared to $19.1 million, or $0.20 loss per diluted share, in the same quarter last year. Excluding the fair value adjustment for stock warrants and the tax valuation allowance, our loss from continuing operations was $0.07 per diluted share for the current quarter compared to a $0.09 loss per diluted share for the first quarter of 2012. See reconciliation attached.  
  • Net loss for the first quarter of 2013 was $11.8 million, or $0.12 loss per diluted share, compared to $19.2 million, or $0.20 loss per diluted share, in the first quarter of 2012.  
  • Diluted weighted average shares outstanding were 96.0 million in the first quarter of 2013 compared to 95.3 million in the same quarter of 2012.  
  • Adjusted EBITDA was $5.4 million in the current quarter, compared to an Adjusted EBITDA loss of $2.1 million in the same quarter last year. See reconciliation attached.

Liquidity and Capital Resources

  • Liquidity at March 31, 2013 was $102.7 million, which included $117.7 million in cash, reduced by the $15.0 million minimum cash requirement in our amended term loan.  
  • Cash usage for the current quarter was $26.8 million, of which $18.9 million was due to a build in working capital related to our higher sales volumes. The remainder of our cash usage related to $1.0 million of capital expenditures and $10.9 million of cash interest, offset somewhat by cash provided by operations.  
  • During the current quarter, we amended and reduced our existing $20.0 million stand-alone letter of credit ("LC") facility to $10.0 million. In addition, we transferred the $12.4 million of LC's outstanding under the stand-alone facility to our new $15.0 million LC sub-facility. This transfer eliminated the cash collateral requirement for our outstanding LC's and thus increased our overall liquidity at the time by $13.0 million. As of March 31, 2013, we have $12.6 million of LC's outstanding under our sub-facility and nothing outstanding under our stand-alone facility.  
  • Operating cash flow was negative $25.2 million for the current quarter, compared to negative $14.9 million for the first quarter of 2012, the difference primarily attributable to $16.5 million more in working capital build during the first quarter of 2013.  
  • Capital expenditures were $1.0 million for the first quarter of 2013, compared to $1.7 million for the first quarter of 2012.


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."

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs