Builders FirstSource Reports Third Quarter Results; Annual Sales are UpOctober 21st, 2011 by DWM Magazine
Builders FirstSource Inc. reported its results for the third quarter ended September 30, 2011, and the company finished the current quarter with $217.2 million in sales–up 20.4 percent over the prior year. The company also reports that it improved its Adjusted EBITDA results by $7.6 million.
“Despite the continued sluggish housing market, we saw strong improvement in our third quarter 2011 results as our Adjusted EBITDA loss decreased to only $0.7 million, our best operating performance since the third quarter of 2007,” says Floyd Sherman, Builders FirstSource chief executive officer. “This also marks the third consecutive quarter of improved Adjusted EBITDA results when compared to the same quarter of the prior year, in spite of a very weak housing market.”
However, he adds that the housing market remains very challenging, as does the overall state of the economy.
“The seasonally adjusted annual rate for U.S. single-family housing starts in September 2011 was 425,000, which is down 4.9 percent when compared to September 2010,” he says. “For the current quarter, actual U.S. single-family housing starts were down 1.4 percent as compared to the third quarter of 2010 … Since our potential for revenue begins once a start converts to a unit under construction, we believe the 20.4 percent sales increase during the quarter represents a significant improvement in our financial and operational performance in an otherwise weak housing environment.”