Builders FirstSource (BFS) president and chief operating officer Kevin O'Meara has resigned effective Oct. 29, the company announced on Tuesday, Oct. 30. The news comes five days after BFS reported its had swung to a net loss of $11.5 million in the third quarter on a 35% decline in sales from 2006's third quarter to $413.9 million. The Dallas-based company--the 7th biggest LBM dealer on the ProSales 100, with pro sales in 2006 nearing $2.2 billion--said it has no plans to fill O'Meara's position at this time.
"As one of the three founders of Builders FirstSource, over the last 10 years, Kevin was instrumental in growing the company to over $2 billion in revenues, culminating in the Company's initial public offering in June of 2005," BFS chairman Paul Levy said in a statement. "At this juncture, Kevin feels that it would be mutually beneficial for Kevin and the company for him to seek new corporate leadership opportunities. Accordingly, he has decided to leave Builders FirstSource."
O'Meara co-founded BFS in 1998 and served as chief financial officer. He was promoted to chief operating officer in May 2000 and added the president's title in October 2006, according to past company announcements. Prior to co-founding BFS, O'Meara served as vice president, strategic planning and business development at Fibreboard Corp. He also worked at Bain & Company, a strategic management consulting firm, and at two private investment firms.
BFS operates in 13 states, principally in the southern and eastern U.S., and has 68 distribution centers and 61 manufacturing facilities. BFS also distributes windows, interior and exterior doors, dimensional lumber and lumber sheet goods, millwork and other building products.
Like several of the biggest, most widespread LBM operations, BFS has staked much of its growth on serving big production builders, which as a group are suffering the most from the current housing slump. In the earnings annoucement, BFS CEO Floyd Sherman attributed the third quarter's numbers to declines in housing starts, tightened mortgage credit standards and lower market prices for lumber products.
"These macroeconomic factors were partially mitigated by our ability to grow market share and from sales provided by new operations," he said in the statement. "As a result of the continued decline in housing starts and lower than expected operating performance in certain markets, we recorded an $18.9 million goodwill impairment charge during the quarter."