BMC Stock is off to a good start
The results are in for BMC Stock Holdings, Inc., and it looks like the new operation's first full quarter after its Dec. 1 merger was a success.
One caveat, however: the results aren't necessarily comparable to prior-year results, because the merger was technically accounted for as a "reverse acquisition," meaning Stock Building Supply was treated as the legal acquirer and Building Material Holdings Corporation was the acquirer for accounting purposes. Thus, the current results are being stacked up to the combined results of BMC and Stock during last year's first quarter, but the adjusted financial information has not been prepared in accordance with GAAP.
"This adjusted financial information is not necessarily indicative of what the company’s results actually would have been had the merger been completed as of January 1, 2015," explained the company in a statement.
Nevertheless, here it is: net sales for the first quarter ended March 31, 2016 were up 148.4% to $727.4 million, or 23.2% if compared to adjusted net sales of $590.4 million in the first quarter of 2015.
However, the company sustained a net loss of $6.8 million, which includes merger and integration costs of $2.8 million and integration-related impairment charges of $11.9 million. That's compared to a net loss of $3.6 million in the first quarter of 2015.
On an adjusted basis, net income of $5.4 million was up from the previous year's adjusted net loss of $0.3 million.
“Calendar year 2016 is off to a great start, as outsized growth rates in our structural components and millwork, doors and windows product groups, along with favorable weather conditions, helped drive a 23.2% increase in net sales, including 13.5% organic volume improvement per sales day, compared to adjusted net sales in the first quarter of 2015," said president and CEO Peter Alexander. "More importantly, we successfully leveraged our strong sales growth profitably, as adjusted EBITDA margin improved 200 basis points to 4.6%, compared to the first quarter of 2015.”
“Employees across our company continue to identify and share operational best practices while staying sharply focused on our number one priority - providing best in class customer service and solutions,” added Alexander. “In numerous locations across our footprint, teams are reorganizing our distribution, structural component and millwork operations in order to reduce cost, maximize capacity utilization, prepare for the introduction of our Ready-Frame product offering in eight new markets, and promote cross-selling opportunities across the entire sales force. Furthermore, we are moving quickly to integrate our operations on a single information technology platform, which will solidify the foundation for further development of our customer-centric eBusiness offerings.”