Builders FirstSource reported fourth quarter 2013 net income of $4.5 million compared to a net loss of $12 million in the same quarter of 2012. Net sales in the final quarter of 2013 grew 28.3% to $369.1 million from year-ago sales of $287.6 million.
Full-year 2013 results showed an improvement over 2012, with a $42.7 million net loss, compared to a $56.8 million net loss the prior year. Net sales for the year totaled $1.5 billion, a 39% increase over year-ago net sales of 1.1 billion.
"We ended fiscal 2013 with sales of approximately $1.5 billion, a 39.2% increase over fiscal year 2012 sales,” says CEO Floyd Sherman. “From a U.S. single-family housing starts perspective, 2013 ended with 618,400 actual starts, up 15.5% over 2012, but still well below the historical average of the past 50 years.”
He says, when combined with the ongoing recovery in U.S. housing, market share gains of recent years have boosted the Dallas-based BFS’ sales growth. “In turn, this enabled us to end fiscal 2013 with positive earnings before taxes, when excluding the effects of charges related to our May 2013 debt refinancing,” he says.
The company reported that its gross margin percentage improved 220 basis points, to 22.4% in the fourth quarter of 2013, compared to 20.2% in the fourth quarter of 2012. The gross margin strength was due to improved customer pricing and to leveraging fixed costs within cost of goods sold and improved sales mix.
"We certainly closed 2013 on a strong note as indicated by our fourth quarter results,” Sherman says. “However, winter weather across our markets thus far in 2014 has caused disruptions and has delayed construction activity.”
“Nevertheless, we still believe a growing demand for housing exists in our markets, and that once the weather abates increased construction activity will return,” he says.