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TheStreet Open House

Builders FirstSource Reports First Quarter 2013 Results

Stocks in this article: BLDR

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)
CONTACT: Chad Crow
         Senior Vice President and Chief Financial Officer
         Builders FirstSource, Inc.
         (214) 880-3585

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