US LBM Holding’s IPO prep work

An early version of the prospectus filed by Buffalo Grove, Illinois-based US LBM Holdings paints the picture of a company that intends to continue to shake up the lumber and building supply industry. But it also intends to respect its traditions

In one of the more colorful highlights of the US LBM S-1 filing to the Securities and Exchange Commission (a filing dated May 9, 2017), US LBM founder and CEO described the balance between innovation and tradition.

“Interestingly,” he wrote in letter to investors, “if you read the 1916 Edward Hines Lumber handbook on lumber delivery and replace ‘horse and buggy’ with ‘tractor trailer,’ you will quickly realize that not much has changed in this industry over the past 100 years. Our goal is to drive change and accelerate the speed at which our company and industry move forward, while always being mindful of the local nature of our business.’

Edward Hines, a Chicago-area lumber company, is one of the 30 different semi-autonomous brands of US LBM holdings.

Founded in 2009 with a footprint of 16 yards, US LBM is one of the most acquisition-oriented company in the LBM industry. In January, it acquired Ridout Lumber, a 12-unit dealer based in Searcy, Arkansas, bringing its presence to 29 states and 240 locations.

In the filing, the company pointed to a “robust acquisition pipeline that our management is continually cultivating.”

Other highlights from the filing:

• In 2016, the company generated $2.7 billion in net sales, and $187.0 million of adjusted EBITDA. while posting a net loss of $47.7 million.

• The company’s various business units have been operating an average of 70 years.

• From 2014 to 2016, the company’s mix of specialty products has grown from 69% to about 75% of total sales.

Also from his porspectus letter, Gibson wrote: "While going public is a transformative milestone in the history of our Company, it will not change our fundamental approach to the business."

See the US LBM S.E.C. filing here.