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Builders FirstSource Inc. Earnings: Tops Wall Street as Loss Narrows

Builders FirstSource Inc. ‘s fourth quarter loss narrowed due mainly to positive revenue growth. Builders FirstSource is a supplier and manufacturer of structural and related building products for residential new construction.

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Builders FirstSource Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $16.7 million (loss of 18 cents per diluted share) from $24.6 million (loss of 26 cents per share) in the same quarter a year earlier.

Revenue: Rose 31% to $192.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Builders FirstSource Inc. reported an adjusted net loss of 10 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 12 cents per share. It beat the average revenue estimate of $177.1 million.

Quoting Management: “Our sales for the fourth quarter of 2011 were $192.7 million, up 31.0 percent from sales of $147.1 million in the fourth quarter of 2010. We accomplished this substantial sales increase despite actual U.S. single-family starts increasing only 4.7%, the average number of U.S. single-family units under construction decreasing 10.7%, and average commodity prices being relatively flat during the quarter”, said Floyd Sherman, Builders FirstSource Chief Executive Officer. “Our Adjusted EBITDA for the quarter was a loss of $3.3 million compared to a loss of $12.5 million in the fourth quarter of 2010.” Commenting on fiscal 2011 results, Mr. Sherman continued, “We ended the year with sales of $779.1 million, up 11.2 percent over 2010 sales of $700.3 million, and improved our Adjusted EBITDA by $28.6 million, to a loss of $15.0 million. Our financial results improved in spite of an 8.6% decline in U.S. single-family starts, a 14.1% decline in U.S. single-family units under construction, and commodity deflation of approximately 6.0% for the year.”

Key Stats:

The company beat estimates last quarter after being in line with expectations in the third quarter with a loss of 7 cents per share.

The company’s revenue has now risen for two straight quarters. In the third quarter, revenue increased 20.4% to $217.2 million from the year earlier quarter.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 12 cents. The average estimate hasn’t changed from 41 cents per share for the fiscal year.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com