Builders FirstSource makes coronavirus capital moves
Builders FirstSource reported that it has put capital expenditures, not impacting near-term programs, on hold for the time being.
The Dallas, Texas-based company has also drawn down an additional $150 million in cash from its revolving credit facility. Builders FirstSource said that it has no debt maturities due until 2024 and has access to an additional $480 million additional credit available under its revolver.
“We are well prepared to navigate through this rapidly evolving pandemic,” said Chad Crow, CEO of Builders FirstSource. “As an essential business, we are proud to continue supporting our customers with a paramount focus on health and safety.”
With the exception of a few states where construction activities have been prohibited, Builder FirstSource locations remain open and operational. The company said that it “strictly adhered” to recommendations and guidelines promoted by the Centers for Disease Control and Prevention (CDC) and local community health departments.
Builders FirstSource operates about 400 locations in 40 states.
Other moves recently made by the dealer include freezing hiring, deferring corporate wage increases and taking other cost actions to protect existing jobs, reducing executive and senior management cash compensation and cutting board compensation.
“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,” Builders FirstSource said in a prepared statement.
Builder FirstSource also said that it entered the pandemic situation with a strong capital position and balance sheet to continue operations during the crisis.
Due to the evolving macro-economic situation in the current home building environment, Builder FristSource has withdrawn its previous full year 2020 outlook, which did not contemplate the impacts of COVID-19.
The Dallas, Texas-based company has also drawn down an additional $150 million in cash from its revolving credit facility. Builders FirstSource said that it has no debt maturities due until 2024 and has access to an additional $480 million additional credit available under its revolver.
“We are well prepared to navigate through this rapidly evolving pandemic,” said Chad Crow, CEO of Builders FirstSource. “As an essential business, we are proud to continue supporting our customers with a paramount focus on health and safety.”With the exception of a few states where construction activities have been prohibited, Builder FirstSource locations remain open and operational. The company said that it “strictly adhered” to recommendations and guidelines promoted by the Centers for Disease Control and Prevention (CDC) and local community health departments.
Builders FirstSource operates about 400 locations in 40 states.
Other moves recently made by the dealer include freezing hiring, deferring corporate wage increases and taking other cost actions to protect existing jobs, reducing executive and senior management cash compensation and cutting board compensation.
“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,” Builders FirstSource said in a prepared statement.
Builder FirstSource also said that it entered the pandemic situation with a strong capital position and balance sheet to continue operations during the crisis.
Due to the evolving macro-economic situation in the current home building environment, Builder FristSource has withdrawn its previous full year 2020 outlook, which did not contemplate the impacts of COVID-19.