Builders First Source posts big loss in Q1
Builders FirstSource, one of the industry’s largest pro dealers, reported a net loss of $30.5 million for its first quarter, which ended on March 31. This compares to a loss of $15.8 million in the first quarter of 2008. Sales for the Dallas-based chain of lumberyard and component plants were $163.8 million for the first fiscal quarter, a 37% decrease from sales of $259.8 million during the same quarter of 2008.
In a prepared statement, CEO Floyd Sherman said market share gains and further penetration in the multi-family and light commercial segments reduced the sales decline by 17%, compared to the first quarter. One distribution center and one truss facility were closed during the quarter, he said.
Charles Horn, the company’s SVP and CFO, said Builders FirstSource ended the quarter with more than $102 million in cash, of which $83.5 is available for operations. The company intends to continue paring back expenses, he said, and has targeted a 10% reduction in the “average full-time equivalent” employees by the end of the second quarter, which would lower annual payroll costs by approximately $14 million.
Listed ninth on the Home Channel News Top 350 Pro Dealer Scoreboard, Builders FirstSource operates 57 lumberyards in 11 states, primarily in the Southeast and the East.
Azek hires VP marketing
Brian Kincaid has joined AZEK Building Products as VP marketing, where he will be responsible for market research, AZEK brand and product development and marketing communications.
With 12 years of director-level marketing experience at Newell Rubbermaid, Kincaid most recently served as global marketing director, Home Products, for the company’s GRACO Products division. In this capacity, Kincaid was responsible for product development, strategic planning, channel management and marketing. He was instrumental in the re-launching and turnaround of several key categories.
“I look forward to contributing to AZEK Building Products’ continued growth curve,” said Kincaid. “It is exciting to work with a company that has the number one brands in trim and stain-resistant decking and to take those brands to the next level.”
Kincaid holds an MBA from East Carolina University, as well as an MS and BS from the University of Illinois. He will be based in Scranton, Pa.
NAHB connects jobs to NOL carryback
The current net operating loss carryback law needs to be expanded, according to Joe Robson, chairman of the National Association of Home Builders (NAHB) and a homebuilder from Tulsa, Okla.
Robson issued a statement pointing to the loss of jobs in the residential construction industry.
The statement reads: “Since February 2006, residential construction has lost nearly 1 million jobs and this figure continues to grow on a monthly basis. In order to put builders back to work and help to revive housing and the economy, we continue to call on Congress and the Obama Administration to do everything possible to expand the net operating loss (NOL) carryback provision that was contained in the recently enacted economic stimulus legislation. NAHB supports the fullest and most robust NOL carryback provision possible in order to avert more costly layoffs in construction and other industries that would take an even worse toll on the nation’s economy. As part of this expanded NOL carryback, NAHB also supports measures to ensure that an enhanced NOL rule would not create any undue advantages in the marketplace.”