Back to Main

Builders' Loss Narrows in 4Q - Analyst Blog

By: Zacks.com
Posted: 2/25/2013 9:50:00 AM
Referenced Stocks: BECN;BLDR;LL;TVPKF

Builders FirstSource, Inc. ( BLDR ) reported its financial results for the fourth quarter and year 2012 on Feb 21, 2013. The company reported adjusted loss per share of 8 cents in the quarter compared with a loss of 9 cents reported in the year-ago quarter and the Zacks Consensus Estimate of a loss per share of 7 cents.

For 2012, adjusted net loss reported was 31 cents per share, an improvement over a loss of 38 cents reported in 2011 and the Zacks Consensus Estimate of a loss of 32 cents.

Total revenue in the fourth quarter jumped 49.3% year over year to $287.6 million while that for year 2012 increased 37.4% to $1,070.7 million.

Revenue across various product categories increased in the quarter with Prefabricated components registering revenue increase of 48.7% and Windows & doors revenue increasing by 32.0%. Lumber and lumber sheet goods revenue increased 77.8%, revenue from Millwork jumped 40.5% and that from Other building products & services increased 34.2%. 

Gross profits in the fourth quarter climbed 47.8% year over year and came in at $58.1 million while gross margin settled at 20.2%. As a percentage of revenue, selling, general and administrative expenses represented 20.1%, down 430 basis points over the year-ago quarter.

Exiting the fourth quarter 2012, the company's cash and cash equivalents (including restricted cash) stood at $143.5 million, down from $160.1 million in the year-ago quarter. Long-term debt balance was at $360.9 million, up 21.3% year over year.

For the full year 2012, cash used in operating activities was $66.9 million, roughly flat compared with 2011 while capital spending increased from $4.8 million in 2011 to $10.4 million.

Builders FirstSource, Inc, with a market capitalization of $566 million, primarily engages in the supply and manufacture of structural and related building products for new residential constructions in the United States.

The stock currently carries a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are Lumber Liquidators Holdings, Inc. ( LL ) and Travis Perkins plc ( TVPKF ), both holding a Zacks Rank #1 (Strong Buy) and Beacon Roofing Supply, Inc. ( BECN ), with a Zacks Rank #2 (Buy).



BEACON ROOFING (BECN): Free Stock Analysis Report

BUILDERS FIRSTS (BLDR): Free Stock Analysis Report

LUMBER LIQUIDAT (LL): Free Stock Analysis Report

TRAVIS PERKINS (TVPKF): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research