Builders FirstSource – BLDR – First Positive EBITDA Quarter Since 2007

Builders FirstSource, Inc. (Nasdaq:BLDR), a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, reported its results for the second quarter ended June 30, 2012.

“We delivered our best operating performance in nearly five years, reporting positive Adjusted EBITDA of $2.1 million for the second quarter, and improving to break-even Adjusted EBITDA June year-to-date,” said Floyd Sherman, Builders FirstSource Chief Executive Officer. ”Our second quarter sales grew 31.7 percent compared to the second quarter of 2011. Over the same time period, actual single-family housing starts in the South Region increased 21.3 percent while single-family units under construction increased 1.5 percent. Our topline growth far exceeded the increase in residential construction activity, and we met our primary goal for the quarter of getting back to positive EBITDA.”

Mr. Sherman added, “The broad-based housing recovery that began in the latter half of 2011 continues, though moderately paced. At the same time, however, we are seeing meaningful improvements in our financial results as we continue to grow market share, leverage our strong competitive position, and provide first-class customer service.”

Commenting on the second quarter financial results, Chad Crow, Builders FirstSource Senior Vice President and Chief Financial Officer, added, “I am extremely pleased with our sales growth and the fact that we achieved positive EBITDA.  It was, however, a difficult quarter for gross margins as higher than expected sales volume, combined with roughly 16 percent commodity lumber price inflation, forced us to replace inventory during the latter half of the quarter at higher costs, with limited ability to adjust intra-quarter customer pricing.”

Mr. Crow continued, “Our most important goal for the quarter, however, was to get back to positive EBITDA. We achieved our goal by growing sales and generating the incremental gross profit dollars necessary to accomplish this significant financial objective. Congratulations to all our employees for reaching this important milestone in our journey back to profitability.”

BLDR – Outlook

Mr. Sherman concluded, “We made significant strides during the first half of 2012, the result of our employees’ efforts over the past several years positioning the company to take advantage of the improved housing environment we are finally seeing. We believe we will continue to see housing gradually recover, which should drive further financial improvements in our business. Throughout this downturn, we have not wavered from our commitment to grow market share, improve operating efficiencies and conserve capital. It is extremely gratifying to see the hard work and dedication of all our employees translating to improved financial results.”

BLDR – About Builders FirstSource

Headquartered in Dallas, Texas, Builders FirstSource (BLDR) is a leading supplier and manufacturer of structural and related building products for residential new construction. BLDR 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.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.