Stock Building Supply Announces Fourth Quarter 2013 Net Income of $3 MillionFebruary 27th, 2014 by DWM Magazine
Stock Building Supply Holdings Inc. reported its financial results for the fourth quarter and year ended December 31, 2013. The company shows net sales of $305.2 million, up 21 percent, compared to $252.1 million for the fourth quarter of 2012.
Additionally, the company reported an operating income of $5.1 million, compared to operating loss of $5.2 million for the fourth quarter of 2012 as well as a net income of $3.0 million, compared to a net loss of $3.8 million for the fourth quarter of 2012. Adjusted EBITDA was $9.6 million, compared to $3.1 million for the fourth quarter of 2012.
Full-year results show the company with net sales of $1,197.0 million, up 27.0 percent, compared to $942.4 million for full year 2012. Stock Building also reports a net loss of $4.6 million, including $10.0 million of initial public offering (“IPO”) transaction-related costs, compared to net loss of $14.5 million for full year 2012. Adjusted EBITDA of $27.8 million, compared to $2.0 million for full year 2012.
“During the fourth quarter of 2013, the U.S. housing industry continued its recovery and our business delivered strong revenue growth and profit improvement,” says Jeff Rea, CEO of Stock Building Supply. “Over the course of 2013, our net sales to single-family homebuilders grew nearly 31 percent and our net sales to remodeling contractors increased over 18 percent. This revenue growth, which outpaced the underlying increase in US single-family housing starts of 15.5 percent, as reported by the U.S. Census Bureau, enabled us to expand our operating profit margins and accelerate investments in our business.”
“During the past year, we continued to implement our productivity initiatives in order to achieve margin improvements from our net sales growth and operating cost structure,” adds Jim Major, executive vice president and chief financial officer. “These initiatives contributed to a reduction in our selling, general and administrative expenses as a percentage of net sales to 21.3 percent for full year 2013, compared to 23.5 percent in 2012. We also increased our gross profit as a percentage of net sales to 22.9 percent for full year 2013 as compared to 22.8 percent in 2012 and achieved sequential improvements in our gross margin percentage during each of the last three quarters of 2013.”
Total liquidity as of December 31, 2013 was approximately $72.1 million, which includes cash and cash equivalents of $1.1 million and $71.0 million of borrowing availability under our existing revolver. Capital expenditures during the fourth quarter and full year 2013 totaled $4.9 million and $7.4 million, respectively, primarily to fund purchases of delivery fleet and material handling equipment.