BMC Stock sees merger synergies come to life in Q4

BMC Stock Holdings, Inc. reported substantial year-over-year increases for the fourth quarter and full fiscal 2016 year, the majority of which was owing to synergies created by the merger of Stock Building Supply and BMC in December 2015.

For the fourth quarter ended Dec. 31, 2016, net sales were up 46.5% to $747.6 million. Adjusted net sales were up 2.7%.

Meanwhile, net income of $10.4 million represented an increase of $17.9 million over the same period last year, placing the company back in the black.

“Our merger, which we completed a little more than a year ago, unlocked numerous opportunities to expand the business and improve profitability," said president and CEO Peter Alexander. "During 2016, we achieved strong operational and financial results including significant gains in operating margins and cash generation."

For fiscal 2016, net sales of $3.1 billion were up 96.2%, and adjusted net sales were up 10.5%.

Full-year net income was $30.9 million, up $35.7 million from the previous year.

“In addition,” Alexander continued, “we made significant strides on our integration efforts and technology initiatives, including the achievement of $31 million in cost synergy savings in our 2016 operating results.  Also, during the year, we rolled out ReadyFrame, our differentiated whole-house framing solution that assists professional builders and contractors to reduce their labor needs and shorten cash conversion cycles, to the remainder of our major markets. This product offering grew more than 46% during 2016 to over $100 million in sales. With a remarkably strong team in place and what I believe are the best products and solutions available to professional builders and remodelers in the residential homebuilding space, I am very optimistic about our prospects for 2017 and beyond.”

Referring to the company's outlook for 2017, he continued: "With a large portion of our merger integration efforts behind us, we are increasing our efforts to accelerate our growth strategy both through organic and inorganic means. We will continue to target opportunities that further enhance our value-added product offerings and/or expand our geographic footprint into attractive markets.”