Builders FirstSource, the industry’s sixth largest pro dealer, posted a net loss of $15.8 million, in contrast to net income of $0.2 million for the first quarter of 2007.
The Dallas -based chain reported sales of $270.5 million for its first quarter, a decline of 34.2 percent over sales of $411.1 million in the same period last year.
In a prepared statement, Builders FirstSource said worsening industry conditions have resulted in pricing pressures from both customers and competitors with liquidity constraints, who are monetizing their inventories.
Commenting on the results, senior vp and CFO Charles Horn said: "We ended the quarter with over $210 million in liquidity. We used cash in operating activities during the quarter as we experienced a slight build in our inventories in March, as our sales per ship day increased 6.7 percent over December 2007 levels.”
The company’s outlook for 2008 includes a prediction of difficult market conditions and downward pressure on operating results, “at least through the first half of 2009.”
Builders FirstSource operates in 13 states, principally in the southern and eastern United States, with 66 lumberyards, many of them containing additional manufacturing facilities for trusses, windows, doors and custom millwork.