Builders FirstSource Provides Update Related to COVID-19

DALLAS, April 06, 2020 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq:  BLDR) 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.