Huttig Posts Strong Second-Quarter ResultsAugust 2nd, 2016 by Editor
Huttig Building Products Inc., a distributor of millwork, building materials and wood products, reported financial results for the second quarter of 2016 that reflected increased sales.
“We delivered our 21st consecutive quarterly improvement over prior year’s quarter, excluding unusual items, in the second quarter of 2016,” said Jon Vrabely, Huttig president and CEO. “I am very pleased with our financial results and our continued success in executing our strategic priorities in the quarter. We closed the acquisition of BenBilt Building Systems, accelerated our revenue and margin growth, and continued our investments in people, capital, and technology, which we believe will support our growth and profitability going forward.”
The company reported earnings of 41 cents per share, up from 20 cents in the second quarter of 2015. Adjusted earnings were 23 cents per share.
Net sales were $197.9 million in 2016, which was 13 percent higher than in 2015. The increase was primarily due to higher levels of construction activity, the addition of a new product line and the acquisition that was completed during the quarter.
Sales increased in all product categories in 2016 compared to 2015. Millwork sales increased 16percent in 2016 to $96.5 million. Building products sales increased 10 percent in 2016 to $80.5 million. Wood product sales increased 9 percent in 2016 to $20.9 million.
Gross margin increased 19 percent to $42.2 million in 2016 compared to $35.6 million in 2015. As a percentage of sales, gross margin increased to 21.3 percent in 2016 from 20.3 percent in 2015.
Huttig reported income from continuing operations of $5.9 million in the second quarter of 2016 compared to $5.4 million in the second quarter of 2015. In the second quarter of 2015, income from continuing operations benefited by $2.0 million primarily related to a reduction in the valuation allowance, which resulted in zero tax expense. Net income in the second quarter of 2016 was $10.4 million compared to $5.1 million in the second quarter of 2015.