CARY, N.C., April 1, 2020 /PRNewswire/ -- Cornerstone
Building Brands, Inc. (NYSE: CNR) (the
"Company"), a leading North American manufacturer of
exterior building solutions, today provided an update on actions
the Company is taking in response to the COVID-19 pandemic.
"Our top priority is the health and safety of our employees,
customers, and communities," said James S.
Metcalf, Chairman and Chief Executive Officer. "The
U.S. Department of Homeland Security has designated our industry as
'life sustaining and essential.' We intend to continue operations
as an 'essential' business and deliver quality products to our
customers. We have implemented enhanced health and safety
protocols to safeguard our employees who perform jobs that must be
done in our facilities. We are also taking prudent and
precautionary steps to maintain financial flexibility and
liquidity. With these actions and the Company's existing
financial position, I am confident that we are well positioned to
navigate the uncertainty of the current situation."
A summary of updates and actions taken are as follows:
- Implemented additional, rigorous facility cleaning procedures
at all locations
- Reconfigured workspaces and direction to achieve social
distancing
- Instituted telecommuting, where possible
- Temporarily banned domestic and international business
travel
- Developed business continuity plans to ensure safe and stable
operations
- Increased communications with employees, customers, and
suppliers
- Deployed policies and practices consistent with CDC and
government guidelines
Given the current uncertainties surrounding the economic
environment, the Company is taking prudent and precautionary
actions to maintain financial flexibility and enhance liquidity
by:
- Rationalizing facility and organizational structures
- Reducing discretionary and non-essential expenses
- Lowering 2020 capital expenditures by an estimated $30 million
- Continuing to optimize working capital
- Increasing cash on hand by $260
million from a draw on its asset-based revolving credit
facility and its cash flow revolver, which both expire in
April 2023. As of March 31, 2020, the Company had cash and cash
equivalents of over $400
million.
First Quarter 2020 Earnings Call
The Company expects
to provide an update on business conditions, financial outlook
items, and capital allocation during its first quarter earnings
call, which is scheduled for Wednesday, May 13,
2020 at 9:00 a.m. Eastern Time.
About Cornerstone Building Brands
Cornerstone
Building Brands is a leading manufacturer of exterior building
products in North America.
Headquartered in Cary, North
Carolina, the Company serves residential and commercial
customers across new construction and the repair & remodel
markets. As the #1 manufacturer of windows, vinyl siding, insulated
metal panels, metal roofing and wall systems and metal accessories,
Cornerstone Building Brands combines a comprehensive portfolio of
products with an expansive national footprint that includes more
than 20,000 employees at manufacturing, distribution and office
locations throughout North
America. For more information, visit us
at www.cornerstonebuildingbrands.com.
Certain statements in this release (including statements
regarding the Company's estimates and expectations concerning the
effects of the COVID-19 pandemic) that are not historical in nature
are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The Company cautions that
actual results may differ materially from those projected or
implied in forward-looking statements due to a variety of important
factors, including the severity, duration and spread of the
COVID-19 pandemic, as well as actions that may be taken by
governmental authorities to contain COVID-19 or to treat its
impact. Additional factors are discussed in the Company's
filings with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the year
ended December 31, 2019, filed with the SEC on March 3, 2020. Except as required by the federal
securities laws, the Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
Investor Relations
Tina
Beskid
tina.beskid@cornerstone-bb.com
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SOURCE Cornerstone Building Brands, Inc.