Builders FirstSource Provides Update Related to COVID-19
Builders FirstSource, Inc. (“Builders FirstSource”) remains focused on prioritizing the safety and well-being of our team members, customers and communities as we continue to supply our essential products and services amid the global COVID-19 pandemic.
Operating with a Safety-First Approach
Builders FirstSource locations remain open and operational except in the few states or counties where construction activities have been prohibited. As an essential supplier of diversified products and services to builders and contractors, we have strictly adhered to the recommendations and guidelines promoted by the Centers for Disease Control and Prevention (“CDC”) and local community health departments where we operate.
In recent months, we have proactively implemented business continuity measures across our network and believe we are well prepared to manage our business through this crisis. That begins with our commitment to supporting customers while protecting the health and welfare of all team members, channel partners and the communities where we operate. General safeguards, amongst many, include enhanced location cleaning processes, remote working accommodations, suspended group activities, air travel restrictions, and promoting social distancing practices. We are also using technology where possible to facilitate customer orders and other interactions to further reduce direct contact between employees. A dedicated team of executives is in place to monitor daily best practices, ensure safety and implement swift action as needed.
Enhancing Financial Flexibility
Builders FirstSource entered the pandemic situation with a solid capital position and balance sheet to continue operations during this volatile period. We have also taken proactive steps to further enhance our financial flexibility, liquidity and cash flow, including:
– Drawing down an additional $150 million of cash under our revolving credit facility
– Delaying capital expenditures that do not impact near-term programs
– Optimizing all areas of working capital
– Deferring or limiting non-essential operating expenses
– Freezing hiring, deferring corporate wage increases and taking other cost actions to protect existing jobs
– Reducing executive and senior management cash compensation
– Cutting board compensation with the balance of fees to be paid in company stock
Following the draw downs in March, we had approximately $150 million of cash on hand with no debt maturities until 2024. We believe our current cash balance plus access to an estimated $480 million of additional availability under our revolver provides the financial flexibility to manage our business with a safety-first emphasis across our nationwide footprint.
Affirms First Quarter 2020 Guidance and Withdraws Full Year 2020 Outlook
We are affirming our guidance for the first quarter ended March 31, 2020. We experienced strong activity levels through most of the quarter. Net sales for the first quarter are expected to be up between 6 to 10 percent, on a sales per day basis, compared to the prior year period. Adjusted EBITDA for the quarter is expected to be between $90 million and $100 million.
Due to the evolving macro-economic uncertainty in the current homebuilding environment, we are withdrawing our previous full year 2020 outlook, which did not contemplate the impacts of COVID-19. Management will provide a business update as part of its first quarter 2020 earnings results.
CEO Chad Crow remarked, “We are well prepared to navigate through this rapidly evolving pandemic. As an essential business, we are proud to continue supporting our customers with a paramount focus on health and safety. We will continue to take prudent and proactive actions to safely operate our business and maintain a strong liquidity position during this uncertain period while positioning our Company to succeed when macroeconomic conditions improve. I thank the Builders FirstSource team for their unwavering dedication to our company, customers, and communities during this volatile time.”
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. We operate in 40 states with approximately 400 locations and have a market presence in 77 of the top 100 Metropolitan Statistical Areas, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (certain of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other building products. For more information about Builders FirstSource, visit the Company’s website at www.bldr.com.
Binit Sanghvi – Vice President Investor Relations – (214) 765-3804
Source: Builders FirstSource, Inc.