DALLAS, Feb. 8 /PRNewswire-FirstCall/ -- Builders FirstSource, Inc. , a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, expects to report a fourth quarter net loss in the range of $0.55 to $0.60 per fully diluted share with revenues of approximately $300 million based on the company's unaudited results for the fourth quarter ended December 31, 2007. Included in the net loss for the quarter are non-cash charges of $11.0 million, or $0.20 per share net of tax, related to goodwill and asset impairment charges, and the write-off of deferred financing fees related to its old credit facility. Additionally, the Company's net loss included cash charges of $2.1 million, or $0.04 per share, net of tax, related to severance and other items.
For the fourth quarter of 2007, the Company expects to have positive operating cash flow in the range of $11 million to $13 million. Cash on-hand increased to about $100 million at December 31, 2007 after the permanent retirement of $39.9 million of long-term debt. In addition, the Company improved its liquidity during the quarter by entering into a new $350 million credit facility. This new facility lowers the Company's borrowing costs and eliminates certain affirmative loan covenants. At December 31, 2007, the Company had approximately $120 million in availability under this facility.
"We saw further declines in the macroeconomic factors that affect our industry during the fourth quarter," said Floyd Sherman, Builders FirstSource, Inc. Chief Executive Officer. "The macroeconomic sales drivers, housing starts and commodity lumber prices, combined to decrease our fourth quarter sales in 2007 when compared to the same time period in 2006 by 36 percent. That being said, our controllable sales drivers, market share and new operations, combined to offset these declines for the same time period by approximately five percent."
"In response to the challenging conditions, we continued to focus on reducing operating costs, improving operating efficiencies and cash management. We were able to realize additional selling, general and administrative cost reductions, specifically salaries and wages, as we reduced full time equivalent employees 21.0% from fourth quarter December 2006. Our liquidity remains strong with over $220 million in combined cash and availability on our credit facility. We believe we are well-positioned for the continued challenging operating environment and for opportunities to grow the company."
Fourth Quarter Earnings Release and Conference Call
Builders FirstSource will hold a conference call and webcast on Thursday, February 21st, to discuss the company's fourth quarter 2007 financial results and other business matters. The teleconference will begin at 10:00 a.m. Central Time and will be hosted by Floyd Sherman, Chief Executive Officer and Charles Horn, Senior Vice President and Chief Financial Officer. A copy of the company's press release announcing its financial results and other statistical information about the period to be presented is expected to be made available after the market closes on February 20th, at the Investors section of the Builders FirstSource, Inc. Web site, at http://www.bldr.com/.
To participate in the teleconference, please dial into the call a few minutes before the start time: 800-753-9048 (U.S. and Canada) and 913-312-0652 (international). A replay of the call will be available at 1:00 p.m. Central Time on February 21st through February 29th. To access the replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (international) and refer to pass code 7914081. The live webcast and archived replay can also be accessed on the company's Web site at http://www.bldr.com/.
About Builders FirstSource
Headquartered in Dallas, Texas, Builders FirstSource is a leading supplier and manufacturer of structural and related building products for residential new construction. The company operates in 13 states, principally in the southern and eastern United States, and has 68 distribution centers and 61 manufacturing facilities, many of which are located on the same premises as our distribution facilities. Manufacturing facilities include plants that manufacture roof and floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes windows, interior and exterior doors, dimensional lumber and lumber sheet goods, millwork and other building products. For more information about Builders FirstSource, visit the company's Web site at http://www.bldr.com/.
Cautionary Notice
Statements in this news release and the schedules hereto which are not purely historical facts or which necessarily depend upon future events, including statements about the impact of expected market share gains, plans to reduce costs, forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Builders FirstSource, Inc. on the date this release was submitted. Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company's growth strategies, including gaining market share, or the Company's revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy. Builders FirstSource, Inc. may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.'s most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.
