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Builders' Loss Narrows in 4Q

Zacks Equity Research

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).

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