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BLDR » Topics » SEASONALITY AND OTHER FACTORS

These excerpts taken from the BLDR 10-K filed Mar 2, 2009.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year


10

Table of Contents

due to higher sales during the peak residential construction season. These increases have in the past resulted in negative operating cash flows during this peak season, which generally have been financed through available cash. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. We have also from time to time utilized our credit facility to cover working capital needs if needed.
 
SEASONALITY
AND OTHER FACTORS


 



Our first and fourth quarters have historically been, and are
expected to continue to be, adversely affected by weather
patterns in some of our markets, causing reduced construction
activity. In addition, quarterly results historically have
reflected, and are expected to continue to reflect, fluctuations
from period to period arising from the following:


 


































































  • 
The volatility of lumber prices;
 
  • 
The cyclical nature of the homebuilding industry;
 
  • 
General economic conditions in the markets in which we compete;
 
  • 
The pricing policies of our competitors;
 
  • 
The production schedules of our customers; and
 
  • 
The effects of weather.


 



The composition and level of working capital typically change
during periods of increasing sales as we carry more inventory
and receivables. Working capital levels typically increase in
the second and third quarters of the year





10




Table of Contents






due to higher sales during the peak residential construction
season. These increases have in the past resulted in negative
operating cash flows during this peak season, which generally
have been financed through available cash. Collection of
receivables and reduction in inventory levels following the peak
building and construction season have more than offset this
negative cash flow. We have also from time to time utilized our
credit facility to cover working capital needs if needed.


 




SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;


29

Table of Contents

 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in negative operating cash flows during this peak season, which generally have been financed through available cash. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. We have also from time to time utilized our credit facility to cover working capital needs if needed.
 
SEASONALITY
AND OTHER FACTORS


 



Our first and fourth quarters have historically been, and are
expected to continue to be, adversely affected by weather
patterns in some of our markets, causing reduced construction
activity. In addition, quarterly results historically have
reflected, and are expected to continue to reflect, fluctuations
from period to period arising from the following:


 
















  • 
The volatility of lumber prices;





29




Table of Contents





 
























































  • 
The cyclical nature of the homebuilding industry;
 
  • 
General economic conditions in the markets in which we compete;
 
  • 
The pricing policies of our competitors;
 
  • 
The production schedules of our customers; and
 
  • 
The effects of weather.


 



The composition and level of working capital typically change
during periods of increasing sales as we carry more inventory
and receivables. Working capital levels typically increase in
the second and third quarters of the year due to higher sales
during the peak residential construction season. These increases
have in the past resulted in negative operating cash flows
during this peak season, which generally have been financed
through available cash. Collection of receivables and reduction
in inventory levels following the peak building and construction
season have more than offset this negative cash flow. We have
also from time to time utilized our credit facility to cover
working capital needs if needed.


 




These excerpts taken from the BLDR 10-K filed Mar 5, 2008.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;


28

Table of Contents

 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in negative operating cash flows during this peak season, which generally have been financed through available cash. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. Currently, we have nothing drawn on our revolving credit facility. We believe our revolving credit facility and our available cash on hand will continue to be sufficient to cover seasonal working capital needs.
 
SEASONALITY
AND OTHER FACTORS


 



Our first and fourth quarters have historically been, and are
expected to continue to be, adversely affected by weather
patterns in some of our markets, causing reduced construction
activity. In addition, quarterly results historically have
reflected, and are expected to continue to reflect, fluctuations
from period to period arising from the following:


 


























  • 
The volatility of lumber prices;
 
  • 
The cyclical nature of the homebuilding industry;





28




Table of Contents





 














































  • 
General economic conditions in the markets in which we compete;
 
  • 
The pricing policies of our competitors;
 
  • 
The production schedules of our customers; and
 
  • 
The effects of weather.


 



The composition and level of working capital typically change
during periods of increasing sales as we carry more inventory
and receivables. Working capital levels typically increase in
the second and third quarters of the year due to higher sales
during the peak residential construction season. These increases
have in the past resulted in negative operating cash flows
during this peak season, which generally have been financed
through available cash. Collection of receivables and reduction
in inventory levels following the peak building and construction
season have more than offset this negative cash flow. More
recently, we have relied less on our revolving credit facility
due to our ability to generate sufficient operating cash flows.
Currently, we have nothing drawn on our revolving credit
facility. We believe our revolving credit facility and our
available cash on hand will continue to be sufficient to cover
seasonal working capital needs.


 




This excerpt taken from the BLDR 10-Q filed Nov 1, 2007.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in lower or negative operating cash flows during this peak season, which generally have been financed through our revolving


12

Table of Contents

credit facility or cash on hand. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our substantial cash balance will be sufficient to cover seasonal working capital needs. We also have available borrowing capacity under the revolving credit facility which at September 30, 2007 was $107.8 million. However, based on current market conditions, by the first quarter of 2008 we may be in violation of certain financial covenants contained in the credit facility. We are currently evaluating our available financing options, and expect to have new financing in place prior to violation of existing covenants. Should other alternatives prove unsatisfactory, prior to a covenant default under our loan agreement we would expect to repay our term loan of $39.6 million from available cash on hand. Any resulting covenant default could prevent us from borrowing under our revolving credit facility and require us to cash collateralize our standby letters of credit in the amount of $17.2 million.
 
This excerpt taken from the BLDR 10-Q filed Aug 2, 2007.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in lower or negative operating cash flows during this peak season, which generally have been financed through our revolving credit facility or cash on hand. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our revolving


11

Table of Contents

credit facility and our ability to generate positive cash flows from operating activities will continue to be sufficient to cover seasonal working capital needs.
 
This excerpt taken from the BLDR 10-Q filed May 3, 2007.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in lower or negative operating cash flows during this peak season, which generally have been financed through our revolving credit facility or cash on hand. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our revolving


11

Table of Contents

credit facility and our ability to generate positive cash flows from operating activities will continue to be sufficient to cover seasonal working capital needs.
 
This excerpt taken from the BLDR 10-K filed Mar 12, 2007.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in negative operating cash flows during this peak season, which generally have been financed through our revolving credit facility. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our revolving credit facility and our ability to generate positive cash flows from operating activities will continue to be sufficient to cover seasonal working capital needs.
 
This excerpt taken from the BLDR 10-Q filed Nov 2, 2006.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in lower or negative operating cash flows during this peak season, which generally have been financed through our revolving credit facility or cash on hand. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our revolving credit facility and our ability to generate positive cash flows from operating activities will continue to be sufficient to cover seasonal working capital needs. See “Liquidity and Capital Resources”.


15

Table of Contents

This excerpt taken from the BLDR 10-Q filed Aug 3, 2006.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;
 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in lower or negative operating cash flows during this peak season, which generally have been financed through our revolving credit facility or cash on hand. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our revolving credit facility and our ability to generate positive cash flows from operating activities will continue to be sufficient to cover seasonal working capital needs.
 
This excerpt taken from the BLDR 10-K filed Mar 13, 2006.
SEASONALITY AND OTHER FACTORS
 
Our first and fourth quarters have historically been, and are expected to continue to be, adversely affected by weather patterns in some of our markets, causing reduced construction activity. In addition, quarterly results historically have reflected, and are expected to continue to reflect, fluctuations from period to period arising from the following:
 
  •  The volatility of lumber prices;
 
  •  The cyclical nature of the homebuilding industry;
 
  •  General economic conditions in the markets in which we compete;
 
  •  The pricing policies of our competitors;


25

Table of Contents

 
  •  The production schedules of our customers; and
 
  •  The effects of weather.
 
The composition and level of working capital typically change during periods of increasing sales as we carry more inventory and receivables. Working capital levels typically increase in the second and third quarters of the year due to higher sales during the peak residential construction season. These increases have in the past resulted in negative operating cash flows during this peak season, which generally have been financed through our revolving credit facility. Collection of receivables and reduction in inventory levels following the peak building and construction season have more than offset this negative cash flow. More recently, we have relied less on our revolving credit facility due to our ability to generate sufficient operating cash flows. We believe our revolving credit facility and our ability to generate positive cash flows from operating activities will continue to be sufficient to cover seasonal working capital needs.
 

EXCERPTS ON THIS PAGE:

10-K (4 sections)
Mar 2, 2009
10-K (2 sections)
Mar 5, 2008
10-Q
Nov 1, 2007
10-Q
Aug 2, 2007
10-Q
May 3, 2007
10-K
Mar 12, 2007
10-Q
Nov 2, 2006
10-Q
Aug 3, 2006
10-K
Mar 13, 2006

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