Builders FirstSource loss widens in Q1

Builders FirstSource, one of the industry’s largest pro dealers, reported a net loss of $30.5 million for its first quarter, which ended on March 31, 2009. This compares to a loss of $15.8 million in first quarter 2008. Sales for the Dallas-based chain of lumberyard and component plants were $163.8 million for the first fiscal quarter, a 37% decrease from sales of $259.8 million during the same quarter of 2008.

In a prepared statement, CEO Floyd Sherman said market share gains and further penetration in the multi-family and light commercial segments reduced the sales decline by 17%, compared with the first quarter. One distribution center and one truss facility were closed during the quarter, he said.

Charles Horn, the company’s senior VP and CFO, said Builders FirstSource ended the quarter with more than $102 million in cash, of which $83.5 is available for operations. The company intends to continue paring back expenses, he said, and has targeted a 10% reduction in the “average full-time equivalent” employee work force by the end of the second quarter, which the company expects will lower annual payroll costs by approximately $14 million.

Listed ninth on the Home Channel News Top 350 Pro Dealer Scoreboard, Builders FirstSource operates 57 lumberyards in 11 states, primarily in the Southeast and the East.