Big sales boost for BMC in Q4

BMC-Stock Holdings reported net sales of $840.9 million in fourth quarter sales, marking an increase of 12.5%. For the full year, net sales were up 8.8% to $3.4 billion.

The company’s interim President and CEO David Keltner said the fourth quarter surge included acceleration in key, value-added product categories. Plus, he said the company is nearing completion of its integration efforts and pointed to $48 million in full year run rate cost savings from synergies.

BMC acquired Stock Holdings officially on Dec. 1, 2015, forming BMC-Stock Holdings.

The company’s fourth quarter produced net income of $17.6 million, up from $10.4 million in the prior-year quarter. Full year net income was $57.4 million, up from $30.9 million.

In the release announcing earnings, Keltner described the company as acquisition-oriented. In a prepared statement, he said: “Specifically, we intend to build upon our solid foundation of value-added products and services, while enhancing our operational excellence and high-performing culture to drive continuous improvement throughout the organization. We also expect to pursue our strategic expansion plans through additional bolt-on acquisitions.”

On cue, the company announced the acquisition of W.E. Shone Co. on the same morning of its earnings report. Shone Lumber is based in Delaware. Its three facilities service Delaware, New Jersey and Pennsylvania.

BMC, like many LBM-focused companies, expects to benefit from improvement in the economy in general and the housing market in specific. “We believe positive fundamentals support our view that residential construction will continue to improve in 2018,” said Jim Major, executive VP and CFO.

The company's search for a permanent CEO is continuing with the help of an executive search firm. Former President and CEO Peter Alexander stepped down on Jan. 10, under mutual agreement with the board of directors.