Stock Building Supply Announces Second Quarter 2013 ResultsAugust 30th, 2013 by DWM Magazine
Stock Building Supply Holdings Inc. reported its financial results for the second quarter ended June 30, 2013, and sales are up more than 25 percent compared to the previous year.
Highlights include net sales of $314.7 million, up 27.7 percent compared to the prior year period; operating income of $3.9 million, up $6.0 million from an operating loss of $2.1 million in the prior year period; adjusted EBITDA of $9.0 million, compared to $2.3 million in the prior year period; and net income of $2.0 million, resulting in earnings per diluted share of $0.07, compared to a net loss of $2.2 million or ($0.25) per diluted share in the prior year period. Additionally, the company amended its credit agreement to extend the maturity to December 31, 2016, and reduce the applicable interest rate margins by 75 basis points in addition to completing its initial public offering on August 14, 2013, increasing pro forma liquidity at June 30, 2013, to approximately $77.5 million through the use of $46.2 million of the proceeds to repay borrowings under the company’s revolver.
“During the second quarter we capitalized on improving trends in the housing industry and continued to successfully execute our business strategy,” says Jeff Rea, CEO. “Our strong results are a reflection of the continued improvements we’ve made in our customer service and our efficiency in executing on our customers’ needs. We estimate our second quarter net sales to single-family homebuilders increased 40.0 percent compared to the second quarter of 2012. This compares favorably to the 15.2 percent increase in U.S. single-family housing starts over the same period. We also delivered solid growth in sales to professional repair and remodeling contractors, with second quarter net sales increasing approximately 12.0 percent compared to the second quarter of 2012.”
Jim Major, executive vice president and chief financial officer adds, “We successfully leveraged our cost structure to deliver increased profitability along with increased sales. For the second quarter of 2013, our selling, general and administrative expenses decreased to 20.8 percent of sales compared to 22.2 percent for the second quarter of 2012. Our recent amendment to our credit agreement and the use of proceeds from our initial public offering to reduce debt will lower our cash interest expense and result in improved liquidity to fund growth opportunities that arise from the continuing housing market recovery.”
“Our business continues to show year-over-year improvements in revenue and profitability while macroeconomic trends remain favorable for growth in new residential construction and repair and remodel activity by our core customers,” says Rea. “Additionally, the successful completion of our initial public offering strengthened our balance sheet and provides enhanced liquidity to invest in and execute upon our strategic growth and customer service initiatives.”