Attached files

file filename
8-K - FORM 8-K - Builders FirstSource, Inc.d79837e8vk.htm
Exhibit 99.1
(BUILDERS FIRST SOURCE LOGO)
For Immediate Release
Builders FirstSource Reports Fourth Quarter and Fiscal Year 2010 Results
February 17, 2011 (Dallas, TX) — Builders FirstSource, Inc. (NasdaqGS: 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 fourth quarter and fiscal year ended December 31, 2010.
                                 
    Fourth Quarter and Fiscal Year Financial Highlights (unaudited)  
    Fourth Quarter   Diluted     Fourth Quarter   Diluted  
    2010   Per Share     2009   Per Share  
 
                               
Sales
  $ 147.1  million           $ 154.0  million        
Income (loss) from continuing operations
  $ (24.5)  million   $ (0.26 )   $ 6.2  million   $ 0.16  
 
                               
Included in the calculation of income (loss) from continuing operations:
                               
Debt issuance cost write-offs
  $ 0.6  million   $ 0.01     $ 0.0  million   $ 0.00  
Recapitalization costs
  $ 0.0  million   $ 0.00     $ 3.0  million   $ 0.04  
Tax valuation allowance
  $ 9.4  million   $ 0.10     $ (21.1)  million   $ (0.53 )
 
                           
 
                               
Adjusted loss from continuing operations*
  $ (14.6)  million   $ (0.15 )   $ (13.1)  million   $ (0.33 )
 
                           
 
                               
Weighted average shares outstanding
    94.9  million             39.9  million        
 
                               
Adjusted EBITDA*
  $ (12.5 ) million           $ (12.2 ) million        
 
                       
 
 
    Fiscal Year   Diluted     Fiscal Year   Diluted  
    2010   Per Share     2009   Per Share  
 
                               
Sales
  $ 700.3  million           $ 677.9  million        
Loss from continuing operations
  $ (94.3)  million   $ (1.03 )   $ (56.9)  million   $ (1.45 )
 
                               
Included in the calculation of loss from continuing operations:
                               
Debt issuance cost write-offs
  $ 4.7  million   $ 0.03     $ 1.2  million   $ 0.02  
Recapitalization costs
  $ 0.0  million   $ 0.00     $ 3.2  million   $ 0.05  
Tax valuation allowance
  $ 35.4  million   $ 0.39     $ 3.9  million   $ 0.10  
 
                           
 
                               
Adjusted loss from continuing operations*
  $ (55.8)  million   $ (0.61 )   $ (50.3)  million   $ (1.28 )
 
                           
 
                               
Weighted average shares outstanding
    91.7  million             39.2  million        
 
                               
Adjusted EBITDA*
  $ (43.6 ) million           $ (35.1 ) million        
 
                       
 
*   See reconciliation attached.

1


 

Builders FirstSource Reports Fourth Quarter and Fiscal Year 2010 Results (continued)
“Actual U.S. single-family starts were 471,100 in 2010, a 5.9 percent increase over 2009. This is the first time in the past five years there has been a year-over-year increase in housing starts.” said Floyd Sherman, Builders FirstSource Chief Executive Officer. Commenting on the recent quarter, Mr. Sherman added, “However, it is evident that challenging conditions still persist, as actual U.S. single-family starts for the fourth quarter of 2010 were 95,600, a decrease of 8.7 percent compared to the fourth quarter of 2009. In the South Region, as defined by the U.S. Census Bureau and which encompasses our entire geographic footprint, actual single-family starts were 49,900, down 9.3 percent from the fourth quarter of 2009, and single-family units under construction were 116,800, a decrease of 8.2 percent compared to the fourth quarter of 2009. Despite this decline in construction activity, our sales of $147.1 million for the current quarter were down just 4.5 percent when compared to sales of $154.0 million in the fourth quarter of 2009. These sales results, even when adjusted for commodity inflation, would indicate we gained market share during the quarter. We look to continue this trend, but only where these gains are at acceptable margins.”
Mr. Sherman continued, “For the current quarter, the competitive pricing pressures we had seen throughout the first nine months of 2010 were still present, but we have recently seen signs that suggest pricing discipline may be returning to the market. Fourth quarter gross margins were 19.1 percent, as compared to 19.7 percent in the fourth quarter of last year. For the year, we felt the negative impact of the commodity price volatility seen during the first half of 2010, as gross margins declined to 18.8 percent for the year, a 2.2 percentage point decrease from gross margins of 21.0 percent in 2009. We were able to partially mitigate this margin pressure by continuing our focus on expense control, management of headcount, and flexing capacity where appropriate. We have done this while maintaining a presence within all of our markets. We have also become a more efficient company, and feel we are well positioned to respond to any increase in building activity.”
Commenting on the Company’s results, Chad Crow, Builders FirstSource Senior Vice President and Chief Financial Officer, added, “Adjusted EBITDA in the current quarter was negative $12.5 million, down slightly from the negative $12.2 million in the fourth quarter of 2009, on $6.9 million less sales. Adjusted EBITDA for 2010 was negative $43.6 million as compared to negative $35.1 million for 2009. Although sales were up year-over-year, competitive pricing pressure, combined with extreme volatility in commodity prices during the first half of the year, negatively impacted margins. We were able to partially offset this negative impact through SG&A reductions.”
Mr. Crow continued, “We ended the year with available liquidity of $125.8 million, which consisted of $103.2 million of available cash and approximately $22.6 million in availability under our revolving credit facility. For the current quarter, our cash usage was approximately $18 million. Reductions in working capital contributed $2 million, which was offset by approximately $1 million in capital expenditures and $19 million of cash used to fund operating losses and service debt. Cash used for 2010 was approximately $83 million, excluding the $33.8 million federal income tax refund received in 2010, as well as $67.9 million in net proceeds from the rights offering we completed during the year. Of the cash used in 2010, approximately $6 million related to an increase in working capital, $9 million related to capital expenditures primarily for buyouts of vehicle and equipment leases, with the remaining $68 million used to fund the operating losses of the company and cash interest payments. For the current year, our asset utilization improved as our working capital expressed as a percentage of sales was 9.3 percent, excluding cash and income tax receivables, down from 10.2 percent in 2009. Accounts receivable days decreased to 35.5 days for 2010, compared to 38.8 days last year as we continued reducing our overall delinquency rate and increased the rate of our overall receivable collections. Our inventory turns were essentially flat year-over-year, ending at 9.1x for 2010. Accounts payable days

2


 

Builders FirstSource Reports Fourth Quarter and Fiscal Year 2010 Results (continued)
increased to 31.5 days, up from 28.9 days last year. Our focus on working capital management resulted in cash conversion days dropping to 44.2 days for 2010, a 5.1 day improvement over 2009.”
Fourth Quarter 2010 Results Compared to Fourth Quarter 2009
(See accompanying financial schedules for full financial details and reconciliations of Non-GAAP
financial measures to their GAAP equivalents.)
    Sales were $147.1 million compared to $154.0 million last year, a decline of $6.9 million or 4.5 percent. We estimate that sales increased 3.1 percent due to commodity inflation, but decreased approximately 7.6 percent due to volume and competitive pricing pressure.
 
    Gross margin percentage was 19.1 percent, down from 19.7 percent, a 0.6 percentage point decrease, which was primarily due to competitive pricing pressure.
 
    SG&A expenses decreased $4.1 million, or 8.3 percent. As a percentage of sales, SG&A expense decreased from 32.3 percent in 2009 to 31.0 percent in 2010, on $6.9 million less sales. Average full-time equivalent employees, excluding discontinued operations, for the fourth quarter 2010 were down 4.9 percent from the fourth quarter 2009 average. Our salaries and benefits expense, excluding stock compensation expense, was essentially flat at $26.1 million for the current quarter compared to $25.9 million for the same quarter last year. Office G&A expense fell $3.3 million or 42.3 percent, due primarily to $3.0 million of recapitalization costs we incurred in the fourth quarter of 2009. Delivery expense fell $0.8 million, or 8.3 percent, occupancy expense fell $0.2 million or 4.9 percent, and bad debt expense fell $0.9 million from the same quarter last year.
 
    Interest expense was $6.9 million in the current quarter, a decrease of $0.6 million from the fourth quarter of 2009.
 
    We recorded an income tax benefit of $0.1 million during the quarter compared to $33.2 million in the fourth quarter of 2009. Our benefit during the current quarter was reduced by an after-tax, non-cash valuation allowance of $9.4 million, or $0.10 per diluted share, related to our net deferred tax assets. Our benefit was increased in the fourth quarter of 2009 by a reduction of the after-tax, non-cash valuation allowance of $21.1 million, or $0.53 per diluted share, primarily due to tax legislation that allowed for an extended carry-back of net operating losses generated in 2009. Absent the valuation allowance, our tax benefit rate would have been 38.9 percent for the fourth quarter of 2010. Absent the valuation allowance and impacts of changes in tax law, our tax benefit rate would have been 36.9 percent for the fourth quarter of 2009.
 
    Income (loss) from continuing operations was a loss of $24.5 million, or $0.26 loss per diluted share, compared to income of $6.2 million, or $0.16 per diluted share, in the same quarter last year. Excluding the valuation allowance and debt issuance cost write-offs, our loss from continuing operations per diluted share was $0.15 for the current quarter, compared to a loss of $0.33 per diluted share for the fourth quarter of 2009, excluding the valuation allowance and recapitalization costs.
 
    Income (loss) from discontinued operations, which includes the results of our discontinued Ohio and New Jersey operations, represented a loss of $0.1 million, or $0.00 per diluted share, for the fourth quarter of 2010, compared to income of $0.3 million, or $0.01 per diluted share, for the fourth quarter of 2009.

3


 

Builders FirstSource Reports Fourth Quarter and Fiscal Year 2010 Results (continued)
    Net loss for the fourth quarter of 2010 was $24.6 million, or $0.26 loss per diluted share, compared to net income of $6.6 million, or $.17 per diluted share, in the fourth quarter of 2009.
 
    Diluted weighted average shares outstanding were 94.9 million compared to 39.9 million. Approximately 58.6 million additional shares were issued in the first quarter of 2010 as part of our rights offering and debt exchange.
 
    Adjusted EBITDA was a loss of $12.5 million compared to a loss of $12.2 million in the same quarter last year. See reconciliation attached.
Liquidity and Capital Resources
    Our total liquidity at December 31, 2010 was $125.8 million, which included $103.2 million in available cash and $22.6 million in borrowing availability under our revolver. Outstanding borrowings under our revolver were $20.0 million at the end of 2010 and 2009, respectively.
 
    In November of 2010, we amended our 2007 senior secured revolving credit facility. The amendment provides us with up to $25.0 million of additional borrowing availability by reducing our minimum liquidity requirement, which was previously set at $35.0 million. The amendment also reduced the maximum borrowing capacity under the facility from $250.0 million to $150.0 million, thus decreasing our annual interest expense related to commitment fees by approximately $0.4 million.
 
    Operating cash flow was negative $17.6 million for the fourth quarter of 2010, as compared to negative $12.5 million for the same quarter last year.
 
    Capital expenditures were $0.8 million for the current quarter, compared to $0.1 million for 2009.
Outlook
Mr. Sherman concluded, “While interest rates remain near record-low levels, the economy is still faced with high unemployment and foreclosures that congest the new home sales pipeline. Through this, however, we are seeing some signs that point to improvements in our business. Recently, we have seen a return of certain customers that we had previously lost due to pricing. The return of these customers is due, in part, to our ability to offer a service-level that we believe is unsurpassed in the industry and which aids the customer in job-site control. Competitive pricing pressure continues, but in certain markets we saw some signs of slight easing towards the end of the year. We were able to increase our liquidity through the recent amendment to our credit facility, and previous efforts to lower our operating expense structure should make us a more efficient company going forward. Even though industry forecasters are predicting that housing conditions are expected to show improvements during 2011, the first six months of 2011 may be difficult, especially on a year-over-year comparative basis, due to the momentum created by the expiration of the federal tax credit for first-time homebuyers during the first half of 2010. We are, however, optimistic about the long-term outlook for our industry and believe Builders FirstSource is well positioned to take advantage of the recovery once it does come.”

4


 

Builders FirstSource Reports Fourth Quarter and Fiscal Year 2010 Results (continued)
Conference Call
Builders FirstSource will host a conference call Friday, February 18, 2011 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: 888-656-7422 (U.S. and Canada) and 913-312-1449 (international). A replay of the call will be available at 3:00 p.m. CT through February 23rd. To access the replay, please dial 888-203-1112 (U.S. and Canada) and 719-457-0820 (international) and refer to pass code 4510180. The live webcast and archived replay can also be accessed on the company’s website at www.bldr.com. 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 52 distribution centers and 47 manufacturing facilities in 9 states, principally in the southern and eastern United States. 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 website 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 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.
# # #
Contact:
M. Chad Crow
Senior Vice President and Chief Financial Officer
Builders FirstSource, Inc.
(214) 880-3585
Financial Schedules to Follow

5


 

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
                                 
    Three months ended   Fiscal year ended
    December 31,   December 31,
    2010   2009   2010   2009
    (in thousands, except per share amounts)
 
                               
Sales
  $ 147,093     $ 153,963     $ 700,343     $ 677,886  
Cost of sales
    119,032       123,672       568,587       535,480  
         
Gross margin
    28,061       30,291       131,756       142,406  
 
                               
Selling, general and administrative expenses (includes stock-based compensation expense of $1,091 and $340 for the three months ended in 2010 and 2009, respectively, and $4,308 and $2,861 for the fiscal year ended in 2010 and 2009, respectively)
    45,632       49,745       194,092       201,403  
Asset impairments
                839       470  
Facility closure costs
    138       10       558       1,200  
         
Loss from operations
    (17,709 )     (19,464 )     (63,733 )     (60,667 )
Interest expense, net
    6,906       7,487       31,672       27,045  
         
Loss from continuing operations before income taxes
    (24,615 )     (26,951 )     (95,405 )     (87,712 )
Income tax benefit
    (117 )     (33,181 )     (1,112 )     (30,823 )
         
Income (loss) from continuing operations
    (24,498 )     6,230       (94,293 )     (56,889 )
Income (loss) from discontinued operations (net of income tax benefit of $0 in 2010 and 2009, respectively)
    (115 )     344       (1,215 )     (4,965 )
         
Net Income (loss)
  $ (24,613 )   $ 6,574     $ (95,508 )   $ (61,854 )
         
 
                               
Basic and diluted net loss per share:
                               
Income (loss) from continuing operations
  $ (0.26 )   $ 0.16     $ (1.03 )   $ (1.45 )
Income (loss) from discontinued operations
    (0.00 )     0.01       (0.01 )     (0.13 )
         
Net Income (loss)
  $ (0.26 )   $ 0.17     $ (1.04 )   $ (1.58 )
         
 
                               
Weighted average common shares:
                               
Basic
    94,904       39,458       91,676       39,164  
         
Diluted
    94,904       39,886       91,676       39,164  
         

6


 

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Sales by Product Category
(unaudited)
                                 
    Three months ended December 31,
    2010   2009
    (in thousands)
 
                               
Prefabricated components
  $ 26,035       17.7 %   $ 29,222       19.0 %
Windows & doors
    36,771       25.0 %     36,294       23.6 %
Lumber & lumber sheet goods
    40,805       27.7 %     39,609       25.7 %
Millwork
    16,663       11.3 %     16,915       11.0 %
Other building products & services
    26,819       18.3 %     31,923       20.7 %
         
Total sales
  $ 147,093       100.0 %   $ 153,963       100.0 %
         
                                 
    Fiscal year ended December 31,
    2010   2009
    (in thousands)
 
                               
Prefabricated components
  $ 135,469       19.3 %   $ 129,781       19.1 %
Windows & doors
    161,079       23.0 %     163,952       24.2 %
Lumber & lumber sheet goods
    201,445       28.8 %     164,627       24.3 %
Millwork
    75,843       10.8 %     72,798       10.7 %
Other building products & services
    126,507       18.1 %     146,728       21.7 %
         
Total sales
  $ 700,343       100.0 %   $ 677,886       100.0 %
         

7


 

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
                 
    December 31,     December 31,  
    2010     2009  
    (in thousands, except per share amounts)  
 
               
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 103,234     $ 84,098  
Trade accounts receivable, less allowance of $2,444 and $4,883 at December 31, 2010 and 2009, respectively
    55,631       60,723  
Other receivables
    4,060       39,758  
Inventories
    63,810       48,022  
Other current assets
    8,614       7,741  
 
           
Total current assets
    235,349       240,342  
Property, plant and equipment, net
    57,068       64,025  
Goodwill
    111,193       111,193  
Other assets, net
    9,194       19,391  
 
           
Total assets
  $ 412,804     $ 434,951  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 44,866     $ 39,570  
Accrued liabilities
    26,284       28,923  
Current maturities of long-term debt
    5,301       48  
 
           
Total current liabilities
    76,451       68,541  
Long-term debt, net of current maturities
    163,801       299,135  
Other long-term liabilities
    13,047       20,328  
 
           
Total liabilities
    253,299       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; 96,769 and 36,347 shares issued and outstanding at December 31, 2010 and 2009, respectively
    949       363  
Additional paid-in capital
    355,194       150,240  
Accumulated deficit
    (194,481 )     (98,973 )
Accumulated other comprehensive loss
    (2,157 )     (4,683 )
 
           
Total stockholders’ equity
    159,505       46,947  
 
           
Total liabilities and stockholders’ equity
  $ 412,804     $ 434,951  
 
           

8


 

BUILDERS FIRSTSOURCE, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
                 
    Fiscal year ended December 31,  
    2010     2009  
    (in thousands)  
 
               
Cash flows from operating activities:
               
 
               
Net loss
  $ (95,508 )   $ (61,854 )
Adjustments to reconcile net loss to net cash used in operating activities:
               
Depreciation and amortization
    15,433       17,915  
Asset impairments
    839       470  
Amortization of deferred loan costs
    5,955       3,763  
Deferred income taxes
    (1,235 )     411  
Bad debt expense
    792       2,711  
Net non-cash (income) expense from discontinued operations
    (3 )     724  
Stock compensation expense
    4,308       2,861  
Net gain on sales of assets
    (258 )     (601 )
Changes in assets and liabilities:
               
Receivables
    40,001       23,030  
Inventories
    (15,788 )     20,846  
Other current assets
    (873 )     617  
Other assets and liabilities
    (280 )     (3,555 )
Accounts payable
    5,296       4,156  
Accrued expenses
    (399 )     (14,240 )
 
           
Net cash used in operating activities
    (41,720 )     (2,746 )
 
           
 
               
Cash flows from investing activities:
               
Purchases of property, plant and equipment
    (8,953 )     (2,103 )
Proceeds from sale of property, plant and equipment
    602       1,986  
 
           
Net cash used in investing activities
    (8,351 )     (117 )
 
           
 
               
Cash flows from financing activities:
               
Payments under revolving credit facility
          (20,000 )
Payments of long-term debt and other loans
    (105,188 )     (43 )
Deferred loan costs
    (50 )      
Proceeds from rights offering
    180,107        
Payments of recapitalization costs
    (5,631 )     (620 )
Exercise of stock options
          859  
Repurchase of common stock
    (31 )     (126 )
 
           
Net cash provided by (used in) financing activities
    69,207       (19,930 )
 
           
 
               
Net change in cash and cash equivalents
    19,136       (22,793 )
Cash and cash equivalents at beginning of period
    84,098       106,891  
 
           
Cash and cash equivalents at end of period
  $ 103,234     $ 84,098  
 
           

9


 

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 February 17, 2011.
                                 
    Three months ended   Fiscal year ended
    December 31,   December 31,
    2010   2009   2010   2009
 
                               
Reconciliation to Adjusted EBITDA:
                               
Net Income (loss)
  $ (24,613 )   $ 6,574     $ (95,508 )   $ (61,854 )
Reconciling items:
                               
Depreciation and amortization expense
    3,765       4,033       15,433       17,915  
Interest expense, net
    6,906       7,487       31,672       27,045  
Income tax benefit
    (117 )     (33,181 )     (1,112 )     (30,823 )
Net gain on sale of assets
    (96 )     (76 )     (258 )     (601 )
(Income) loss from discontinued operations, net of tax
    115       (344 )     1,215       4,965  
Asset impairments
                839       470  
Facility closure costs
    138       10       558       1,200  
Severance
    348       43       499       583  
Litigation settlement
                (1,238 )      
Recapitalization costs
          2,958       (43 )     3,186  
Stock compensation expense
    1,091       340       4,308       2,861  
         
Adjusted EBITDA
  $ (12,463 )   $ (12,156 )   $ (43,635 )   $ (35,053 )
         
 
                               
Adjusted EBITDA as percentage of sales
    -8.5 %     -7.9 %     -6.2 %     -5.2 %
                                 
    Three months ended     Three months ended  
    December 31, 2010     December 31, 2009  
    Pre-Tax     Net of Tax     Pre-Tax     Net of Tax  
 
                               
Reconciliation to Adjusted loss from continuing operations:
                               
Income (loss) from continuing operations
          $ (24,498 )           $ 6,230  
Reconciling items:
                               
Debt issuance cost write-offs
    643       418       0        
Recapitalization costs
    0             2,958       1,808  
Tax valuation allowance
            9,448               (21,130 )
 
                           
Adjusted loss from continuing operations
          $ (14,632 )           $ (13,092 )
 
                           
 
                               
Weighted average diluted shares outstanding
            94,904               39,886  
 
                           
 
                               
Adjusted loss from continuing operations per diluted share
          $ (0.15 )           $ (0.33 )
 
                           
                                 
    Fiscal year ended     Fiscal year ended  
    December 31, 2010     December 31, 2009  
    Pre-Tax     Net of Tax     Pre-Tax     Net of Tax  
 
                               
Reconciliation to Adjusted loss from continuing operations:
                               
Loss from continuing operations
          $ (94,293 )           $ (56,889 )
Reconciling items:
                               
Debt issuance cost write-offs
    4,736       3,079       1,220       792  
Recapitalization costs
    43       26       3,186       1,948  
Tax valuation allowance
            35,393               3,883  
 
                           
Adjusted loss from continuing operations
          $ (55,795 )           $ (50,266 )
 
                           
 
                               
Weighted average diluted shares outstanding
            91,676               39,164  
 
                           
 
                               
Adjusted loss from continuing operations per diluted share
          $ (0.61 )           $ (1.28 )
 
                           

10