Sales Up But Income Down for Huttig Building Products in 2014March 2nd, 2015 by Editor
The industry is on an upward trend, and Huttig Building Products has followed suit—at least in sales.
The distributor of building materials reported its financial results for the fourth quarter and year of 2014, which show the company sold more than the previous year but also made some investments that ultimately hurt its income.
Report highlights include:
- Net sales in the fourth quarter 2014 were $145.2 million, representing an 8 percent increase over 2013 net sales of $134.8 million for the same period, while full-year 2014 net sales were $623.7 million, representing an 11-percent increase over prior-year net sales of $561.5 million;
- Losses from continuing operations were $0.4 million in the fourth quarter for both 2014 and 2013. Income from continuing operations for the full year of 2014 was $5.8 million compared to $3.6 million for 2013;
- Net losses in the fourth quarter of 2014 were $0.5 million compared to $0.4 million for the same period a year ago. Net income for full year 2014 was $2.2 million compared to net income of $3.2 million for 2013. Net income for full-year 2014 reflected charges from discontinued operations of $3.6 million compared to $0.4 million for 2013;
- Adjusted EBITDA was $1.4 million in the fourth quarter 2014 compared to $1.2 million for the same period a year ago. Full-year adjusted EBITDA was $12.8 million in 2014 compared to $10.1 million in 2013; and
- Total available liquidity was $49.1 million at December 31, 2014 compared to $41.8 million a year ago.
“The housing market continued to show modest improvement in 2014 though the single-family segment growth was not as robust as many had anticipated,” says Jon Vrabely, president and CEO. “We were pleased that our revenue growth outpaced the market as we executed on our strategic growth initiatives, including the introduction of new products in our building materials business. We continued to reinvest in our people, technology platform and growth initiatives in 2014.”
Vrabely says that “as a result of a softer-than-anticipated market,” some of the investments the company made had a short-term dilutive effect on our earnings. “While we may have been ahead of the market from an investment perspective in 2014, we believe these investments will enhance our ability to generate profitable sales growth as the residential construction market continues to improve. As we celebrate our 130-year anniversary in 2015, I cannot over-emphasize my appreciation and gratitude to our associates for their dedication to our great company.”