Builders FirstSource Reports First Quarter 2010 Results

DALLAS, April 22, 2010 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc.
(Nasdaq:BLDR), a leading supplier and manufacturer of structural and related
building products for residential new construction in the United States, today
reported its results for the quarter ended March 31, 2010.

First Quarter Financial
Highlights (unaudited)

--------------------------------------------------------------------------------
-------------

First Diluted
First Diluted
Quarter Per
Quarter Per
2010 Share
2009 Share

--------------------------------------------------------------------------------
-------------
Sales $ 161.4 million
$159.6 million
Loss from continuing operations $(31.2) million $(0.38)
$(28.6) million $(0.73)

Included in the calculation of

loss from continuing

operations:

Debt issue costs write-off $ 4.1 million $0.03
$ 1.2 million $0.02

Tax valuation allowance $11.6 million $0.14
$0.31
----------------
$12.2 million----------------
$0.17
$0.33

Adjusted loss from continuing

operations* $(17.0) million $(0.21)
$(0.40)
================
$(15.6) million================

Adjusted EBITDA* $(15.3) million
$(12.5) million
===============================
===============================

* See reconciliation attached.

"The first quarter of 2010 saw a continued improvement in housing starts as
actual U.S. single-family housing starts increased to 114,300, up 46.0 percent
from the same quarter last year," said Floyd Sherman, Builders FirstSource Chief
Executive Officer. "The annualized rate for single-family housing starts at the
end of the current quarter was 531,000, up 47.1 percent from the annualized rate
of 361,000 one year ago."

Mr. Sherman added, "Though housing starts improved in the current quarter,
actual U.S. single-family units under construction declined 16.8 percent
quarter-over-quarter, indicating the number of homes in the construction
pipeline continues to decrease. The annualized rate for single-family housing
units under construction at the end of the current quarter was 305,000, down
12.1 percent from the annualized rate of 347,000 one year ago. The trend was
similar for building activity in the South Region, as defined by the U.S. Census
Bureau, which encompasses our entire geographic operating footprint.

"Our sales in the current quarter were up slightly, but we experienced a 48.1
percent increase in commodity prices quarter-over-quarter. While commodity
prices were up dramatically, fixed pricing agreements with our customers which
range from 30, 60 and 90 days, prevented us from passing along a substantial
portion of these increases to our customers. As a result of this unprecedented
run up in commodity prices during the quarter, combined with fixed pricing
agreements with our customers, our gross margin fell to 18.2%, down from 21.0%
in the first quarter of 2009. This run up in commodity pricing has continued
into April, but we believe our current inventory levels should help mitigate
some of the pricing pressure in the second quarter. While higher commodity
prices are good for the long-term health of our company, rapid increases which
we are currently experiencing places added pressure on gross margins."

Commenting on the first quarter results, Chad Crow, Builders FirstSource Senior
Vice President and Chief Financial Officer, added, "We ended the quarter with
over $124.8 million in cash, which does not include the $33.8 million income tax
refund we received subsequent to quarter-end. Available liquidity was $131.2
million, as we had $6.4 million of net borrowing availability at quarter-end
under our revolver. Cash used for the current quarter, excluding the net
proceeds from our recently closed rights offering, was $27.2 million, which was
less than we had forecasted. Of the $27.2 million of cash used, $4.4 million was
due to an increase in working capital, the result of improved sales in March
combined with inventory buys to cover fixed customer pricing arrangements, and
$1.9 million related to capital expenditures. The remaining $20.9 million of
cash used to fund general operations was impacted by rapidly increasing
commodity prices, which reduced our gross margin by approximately $4.0-$5.0
million during the quarter. From a working capital perspective, our accounts
receivable days decreased to 36.1 days for the current quarter, compared to 42.1
days last year. Inventory turns improved to 9.1x from 7.7x for the same quarter
of last year. Additionally, accounts payable days increased to 34.4 days, up
from the 27.3 days for the first quarter of last year. These improvements helped
to lower our cash conversion days to 41.9 days in the current quarter, down from
61.9 days for the same time last year."

First Quarter 2010 Results Compared to First Quarter 2009

(See accompanying financial schedules for full financial details and
reconciliations of Non-GAAP financial measures to their GAAP equivalents.)

-- Sales were $161.4 million compared to $159.6 million last year, an
increase of $1.8 million or 1.1 percent. Our sales increase was
primarily attributable to commodity inflation during the current
quarter.

-- Gross margin percentage was 18.2 percent, down from 21.0 percent, a 2.8
percentage point decline. Specifically, our gross margin percentage
declined 3.1 percentage points due to price and was only slightly
impacted by volume (fixed costs in costs of goods sold) and sales
mix.

-- Selling, general and administrative ("SG&A") expenses decreased $2.6
million, or 5.0 percent. As a percentage of sales, SG&A expense
decreased from 32.6 percent in 2009 to 30.6 percent in 2010 primarily
due to reduced customer write-offs, lower salaries and benefits expense,
and better leveraging of costs due to commodity inflation and improved
sales.

-- Interest expense was $11.3 million in the current quarter, an increase
of $3.8 million over the year ago quarter. The increase was due to the
write off of $1.6 million of unamortized debt issue costs related to
long-term debt repaid during the quarter and $2.5 million of costs
related to the recapitalization transaction. Interest expense also
increased by $0.8 million related to fair value adjustments on our
interest rate swaps. These increases were partially off-set by a
write-off of $1.2 million in debt issue costs related to the capacity
reduction of our revolving credit facility from $350 million to $250
million in the first quarter of 2009.

-- We recorded an income tax benefit of $0.1 million during the quarter
compared to $2.1 million of expense in the first quarter of 2009. We
recorded an after-tax, non-cash valuation allowance of $11.6 million and
$12.2 million, in 2010 and 2009, respectively, related to our net
deferred tax assets. Absent this valuation allowance, our tax benefit
rate would have been 37.6 percent and 38.0 percent in 2010 and 2009,
respectively.

-- Loss from continuing operations was $31.2 million, or $0.38 loss per
diluted share, compared to $28.6 million, or $0.73 loss per diluted
share. Excluding the valuation allowance and the write-off of debt issue
costs, our loss from continuing operations per diluted share was $0.21
and $0.40 for 2010 and 2009, respectively.

-- Our loss from discontinued operations for the first quarter of 2010 was
$0.2 million, or $0.00 per diluted share, compared to $2.0 million, or
$0.05 loss per diluted share for the first quarter of 2009.

-- Net loss was $31.4 million, or $0.38 loss per diluted share, compared to
net loss of $30.6 million, or $0.78 loss per diluted share.

-- Diluted weighted average shares outstanding were 81.8 million compared
to 39.0 million. Approximately 58.6 million additional shares were
issued in the current quarter as part of our rights offering and debt
exchange.

-- Adjusted EBITDA was a loss of $15.3 million compared to a loss of $12.5
million last year. See reconciliation attached.

Liquidity and Capital Resources

-- In January 2010, we announced the completion of our rights offering and
debt exchange. The closing of these transactions reduced our long-term
debt by $130 million and extended the maturity of $139.7 million of our
remaining debt to 2016. The rights offering also provided us
approximately $65 million in net proceeds to be used for general
corporate purposes.

-- Our cash on hand was $124.8 million at March 31, 2010. Our net borrowing
availability at March 31, 2010, in excess of the $35.0 million minimum
liquidity covenant, was $6.4 million. We also received our federal
income tax refund of approximately $33.8 million in April 2010.

-- Operating cash flow was $(26.9) million compared to $(3.2) million for
the first quarter of 2009.

-- Capital expenditures were $1.9 million which primarily related to lease
buyouts on rolling stock. Capital expenditures in the first quarter of
2009 were $1.7 million.

Outlook

Mr. Sherman concluded, "Although housing starts have somewhat stabilized, we
continue to experience intense pricing pressure from competition, and rapidly
rising commodity prices will continue to present challenges in the second
quarter. We also do not yet know the future impact on our sales, if any, that
may result from the upcoming expiration of the federal tax credit for first-time
homebuyers. However, while industry conditions remain difficult, our improved
liquidity position, coupled with our $33.8 million federal income tax refund
received in April, currently has us well positioned to take advantage of a
housing recovery. Finally, I would like to thank all our employees for their
hard work and the sacrifices they have made during these challenging times. I
believe we have the strongest team in the industry and I am proud to be a part
of the BFS team."

Conference Call

Builders FirstSource will host a conference call Friday, April 23, 2010, at
10:00 a.m. Central Time (CT) and will simultaneously broadcast it live over the
Internet. To participate in the teleconference, please dial into the call a few
minutes before the start time: 888-677-8751 (U.S. and Canada) and 913-905-1084
(international). A replay of the call will be available from 3:00 p.m. through
April 28, 2010. To access the replay, please dial 888-203-1112 (U.S. and Canada)
and 719-457-0820 (international). Please refer to pass code 8892646. To access
the webcast, go to www.bldr.com and click on "Investors." The online archive of
the webcast will be available for approximately 90 days.

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 9 states, principally in the southern and
eastern United States, and has 55 distribution centers and 51 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 www.bldr.com.

Cautionary Notice

Statements in this news release and the schedules hereto that are not purely
historical facts or that 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.

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)

Three months ended

March 31,
------------------------

2010 2009
----------- -----------
(in thousands, except
per share amounts)

Sales $ 161,373 $ 159,576

Cost of sales 131,942 126,026
----------- -----------
Gross margin 29,431 33,550

Selling, general and administrative expenses
(includes
stock-based compensation expense of
$1,041 and
$1,437 for the three months ended in 2010
and 2009,
respectively) 49,445 52,062

Facility closure costs 5 454
----------- -----------
Loss from operations (20,019) (18,966)

Interest expense, net 11,325 7,536
----------- -----------
Loss from continuing operations before
income taxes (31,344) (26,502)

Income tax (benefit) expense (144) 2,114
----------- -----------
Loss from continuing operations (31,200) (28,616)
Loss from discontinued operations (net of
income tax
benefit of $0 in 2010 and 2009,
respectively) (186) (1,962)
----------- -----------

Net loss $ (31,386) $ (30,578)
=========== ===========

Basic and diluted net loss per share:
Loss from continuing operations $ (0.38) $ (0.73)

Loss from discontinued operations (0.00) (0.05)
----------- -----------

Net loss $ (0.38) $ (0.78)
=========== ===========

Weighted average common shares:

Basic and diluted 81,849 39,025
=========== ===========

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Sales by Product Category
(unaudited)

Three months ended March 31,
--------------------------------------

2010 2009
------------------ ------------------
(dollars in thousands)

Prefabricated components $ 31,970 19.8% $ 28,953 18.1%
Windows & doors 36,937 22.9% 39,904 25.0%
Lumber & lumber sheet goods 44,388 27.5% 38,927 24.4%
Millwork 17,778 11.0% 16,478 10.3%
Other building products &
services 30,300 18.8% 35,314 22.2%
---------- ------ ---------- ------

Total sales $ 161,373 100.0% $ 159,576 100.0%
========== ====== ========== ======

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)

December
March 31, 31,

2010 2009
---------- ----------
(in thousands, except
per share amounts)

ASSETS
Current assets:
Cash and cash equivalents $ 124,817 $ 84,098
Trade accounts receivable, less
allowance of $4,303 and $4,883
at
March 31, 2010 and December 31,
2009, respectively 74,238 60,723
Other receivables 36,513 39,758
Inventories 63,384 48,022

Other current assets 7,548 7,741
---------- ----------
Total current assets 306,500 240,342
Property, plant and equipment,
net 62,195 64,025
Goodwill 111,193 111,193

Other assets, net 11,210 19,391
---------- ----------

Total assets $ 491,098 $ 434,951
========== ==========

LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts Payable $ 57,593 $ 39,570
Accrued liabilities 26,586 28,923
Current maturities of long-term
debt 49 48
---------- ----------
Total current liabilities 84,228 68,541
Long-term debt, net of current
maturities 169,089 299,135

Other long-term liabilities 19,164 20,328
---------- ----------
272,481 388,004
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par
value, 10,000 shares
authorized; zero shares
issued and outstanding -- --
Common stock, $0.01 par value,
200,000 shares authorized;
96,709
and 36,347 shares issued and
outstanding at March 31, 2010
and
December 31, 2009, respectively 949 363
Additional paid-in capital 351,927 150,240
Accumulated deficit (130,359) (98,973)
Accumulated other comprehensive
loss (3,900) (4,683)
---------- ----------

Total stockholders' equity 218,617 46,947
---------- ----------
Total liabilities and
stockholders' equity $ 491,098 $ 434,951
========== ==========

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited)

Three months ended March
31,
------------------------

2010 2009
----------- -----------
(in thousands)
Cash flows from operating activities:
Net loss $ (31,386) $ (30,578)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 3,768 4,748
Amortization of deferred loan costs 4,491 1,875
Deferred income taxes (329) 103
Bad debt expense 410 1,130
Net non-cash (income) expense from
discontinued
operations (3) 77
Non-cash stock based compensation 1,041 1,437
Net gain on sales of assets (61) (283)
Changes in assets and liabilities:
Receivables (10,677) 13,088
Inventories (15,362) 5,033
Other current assets 193 2,254
Other assets and liabilities (387) (458)
Accounts payable 18,023 7,820

Accrued liabilities 3,388 (9,481)
----------- -----------

Net cash used in operating activities (26,891) (3,235)
----------- -----------

Cash flows from investing activities:
Purchases of property, plant and
equipment (1,858) (1,670)
Proceeds from sale of property, plant
and equipment 118 700
----------- -----------

Net cash used in investing activities (1,740) (970)
----------- -----------

Cash flows from financing activities:
Payments of long-term debt and other
loans (105,152) (10)
Proceeds from rights offering 180,107 --
Payment of recapitalization costs (5,574) --

Repurchase of common stock (31) (126)
----------- -----------
Net cash provided by (used in)
financing activities 69,350 (136)
----------- -----------

Net change in cash and cash equivalents 40,719 (4,341)
Cash and cash equivalents at beginning of
period 84,098 106,891
----------- -----------
Cash and cash equivalents at end of
period $ 124,817 $ 102,550
=========== ===========

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures to their GAAP
Equivalents
(unaudited - dollars in thousands)

Note: The company provided detailed explanations of these non-GAAP
financial measures in its Form 8-K filed
with the Securities and Exchange Commission on April 22, 2010.

Three months ended

March 31,
------------------------

2010 2009
----------- -----------

Reconciliation to Adjusted EBITDA:
Net loss $ (31,386) $ (30,578)
Reconciling items:
Depreciation and amortization expense 3,768 4,748
Interest expense, net 11,325 7,536
Income tax (benefit) expense (144) 2,114
Net gain on sale of assets (61) (283)
Loss from discontinued operations, net
of tax 186 1,962
Facility closure costs 5 454
Severance 20 114
Recapitalization costs (70) --

Stock compensation expense 1,041 1,437
----------- -----------

Adjusted EBITDA $ (15,316) $ (12,496)
=========== ===========

Adjusted EBITDA as percentage of sales -9.5% -7.8%

Three months
ended
March 31,

2010
2009
--------------------
--------------------

Pre-Tax Net of Tax Pre-Tax
Net of Tax
------- ----------- -------
-----------

Reconciliation to Adjusted loss from continuing

operations:

Loss from continuing operations $ (31,200)
$ (28,616)
Reconciling items:

Debt issue cost write-offs 4,094 2,567 1,220
793

Tax valuation allowance 11,644
12,185
-----------
-----------

Adjusted loss from continuing operations $ (16,989)
$ (15,638)
===========
===========

Weighted average diluted shares outstanding 81,849
39,025
===========
===========

Adjusted loss from continuing operations per

diluted share $ (0.21)
$ (0.40)
===========
===========

CONTACT: Builders FirstSource, Inc.
M. Chad Crow, Senior Vice President and
Chief Financial Officer
(214) 880-3585