Builders FirstSource, Inc. (Nasdaq: BLDR)
remains focused on prioritizing the safety and well-being of our
team members, customers and communities as we continue to supply
our essential products and services amid the global COVID-19
pandemic.
Operating with a Safety-First Approach
Builders FirstSource locations remain open and
operational except in the few states or counties where construction
activities have been prohibited. As an essential supplier of
diversified products and services to builders and contractors, we
have strictly adhered to the recommendations and guidelines
promoted by the Centers for Disease Control and Prevention (CDC)
and local community health departments where we operate.
In recent months, we have proactively implemented
business continuity measures across our network and believe we are
well prepared to manage our business through this crisis. That
begins with our commitment to supporting customers while protecting
the health and welfare of all team members, channel partners and
the communities where we operate. General safeguards, amongst
many, include enhanced location cleaning processes, remote working
accommodations, suspended group activities, air travel
restrictions, and promoting social distancing practices. We are
also using technology where possible to facilitate customer orders
and other interactions to further reduce direct contact between
employees. A dedicated team of executives is in place to monitor
daily best practices, ensure safety and implement swift action as
needed.
Enhancing Financial Flexibility
Builders FirstSource entered the pandemic situation
with a solid capital position and balance sheet to continue
operations during this volatile period. We have also taken
proactive steps to further enhance our financial flexibility,
liquidity and cash flow, including:
- Drawing down an additional $150 million of cash under our
revolving credit facility
- Delaying capital expenditures that do not impact near-term
programs
- Optimizing all areas of working capital
- Deferring or limiting non-essential operating expenses
- Freezing hiring, deferring corporate wage increases and taking
other cost actions to protect existing jobs
- Reducing executive and senior management cash compensation
- Cutting board compensation with the balance of fees to be paid
in company stock
Following the draw downs in March, we had
approximately $150 million of cash on hand with no debt maturities
until 2024. We believe our current cash balance plus access to an
estimated $480 million of additional availability under our
revolver provides the financial flexibility to manage our business
with a safety-first emphasis across our nationwide footprint.
Affirms First Quarter 2020 Guidance and Withdraws
Full Year 2020 Outlook
We are affirming our guidance for the first quarter
ended March 31, 2020. We experienced strong activity levels through
most of the quarter. Net sales for the first quarter are expected
to be up between 6 to 10 percent, on a sales per day basis,
compared to the prior year period. Adjusted EBITDA for the quarter
is expected to be between $90 million and $100 million.
Due to the evolving macro-economic uncertainty in
the current homebuilding environment, we are withdrawing our
previous full year 2020 outlook, which did not contemplate the
impacts of COVID-19. Management will provide a business update as
part of its first quarter 2020 earnings results.
Management Comment
CEO Chad Crow remarked, “We are well prepared to
navigate through this rapidly evolving pandemic. As an essential
business, we are proud to continue supporting our customers with a
paramount focus on health and safety. We will continue to take
prudent and proactive actions to safely operate our business and
maintain a strong liquidity position during this uncertain period
while positioning our Company to succeed when macroeconomic
conditions improve. I thank the Builders FirstSource team for their
unwavering dedication to our company, customers, and communities
during this volatile time.”
About Builders FirstSource
Headquartered in Dallas, Texas, Builders
FirstSource is the largest U.S supplier of building products,
prefabricated components, and value-added services to the
professional market segment for new residential construction and
repair and remodeling. We provide customers an integrated
homebuilding solution, offering manufacturing, supply, delivery and
installation of a full range of structural and related building
products. We operate in 40 states with approximately 400
locations and have a market presence in 77 of the top 100
Metropolitan Statistical Areas, providing geographic diversity and
balanced end market exposure. We service customers from
strategically located distribution and manufacturing facilities
(certain of which are co-located) that produce value-added products
such as roof and floor trusses, wall panels, stairs, vinyl windows,
custom millwork and pre-hung doors. Builders FirstSource also
distributes dimensional lumber and lumber sheet goods, millwork,
windows, interior and exterior doors, and other building products.
For more information about Builders FirstSource, visit the
Company’s website at www.bldr.com.
Cautionary Notice Regarding Forward-Looking
Statements
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, 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. In
addition, oral statements made by our directors, officers and
employees to the investor and analyst communities, media
representatives and others, depending upon their nature, may also
constitute forward-looking statements. As with the forward-looking
statements included in this release, these forward-looking
statements are by nature inherently uncertain, and actual results
may differ materially as a result of many factors. 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.
Contact:Binit SanghviVP Investor RelationsBuilders
FirstSource, Inc.(214) 765-3804
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