BMC Stock Holdings points to progress
BMC pointed to progress with the integration of what was Stock Building Supply and with the expansion of its ReadyFrame solution – and both contributed to a big jump in third-quarter net sales.
Reflecting the Dec. 1, 2015 acquisition of Stock – a move that created a dealer with some 110 locations in 17 states -- sales increased 97.2% to $821.2 million in the quarter. Net income increased to $9.2 million, up from $4.0 million in last year’s third quarter.
Since the merger, the company says it has implemented cost-synergy initiatives totaling about $28 million in future annual run rate savings. With those, the company remains on track to achieve run-rate synergies of $40 million to $50 million by the end of 2017.
Adjusted to account for the merger, net sales grew 6.0% when compared to net sales in the third quarter of 2015.
CEO Peter Alexander described the pro dealer’s ReadyFrame whole-house solution as a growing and important component of the business. The program allows builders to frame houses 20% to 30% faster and with less labor, he said. “I am extremely pleased that ReadyFrame, which grew 43% to $28.6 million in net sales during the quarter, is now available in all of our major markets, setting the state for substantial future growth capacity for this innovative product offering.”
Regarding the integration with Stock, the company said it was encouraged by “significant progress.”
Also encouraging is the outlook for residential construction. “Macroeconomic trends remain favorable and should support further growth in the U.S. single-family housing market,” said Alexander.
For the third quarter of 2016, the Company reported operating income of $33.7 million, compared to operating income of $15.3 million in the third quarter of 2015.