BLDR boosts sales, narrows loss

Despite commodity deflation, Dallas-based Builders FirstSource posted first-quarter net sales of $1.4 billion, up 9.1% from the same quarter last year.

The company's adjusted net loss was $11.6 million, compared to a loss of $55.9 million in the first quarter of 2015.

Commenting on the first quarter results, Builders FirstSource CEO Floyd Sherman remarked,

Builders FirstSource CEO Floyd Sherman said sales in our value-added categories of prefabricated components, windows & doors, and millwork grew 14 percent versus Pro Forma 2015. 

"Absent commodity deflation, our new residential construction sales volume grew 16 percent in the first quarter and repair and remodel volume grew by 15 percent," he said.

Builders FirstSource acquired ProBuild on July 31, 2015, creating the industry's largest pro dealer. Sherman said the integration efforts were progressing well. The combined company has implemented cost savings initiatives that are projected to bring in about $65 to $70 million in savings. Of that savings, some $46-$48 million are projected in overhead and SG&A.

"We have a defined roadmap to achieve $100-120 million of cost savings within two years of the closing date," Sherman said. “With operations in 40 states, and 23 percent of our sales attributed to the repair and remodel end market, we believe we have also reduced cyclicality through broader sales exposure.”

CFO Chad Crow said the company Has completed 25 conversions to its proprietary ERP system "With minimal disruptions or issues." Builders FirstSource plans to migrate 88 locations by the end of 2016.