BMC Stock's mixed results

Atlanta-based BMC Stock Holdings pointed to profitable growth momentum in a fourth quarter that showed a 63.6% net sales gain, along with a $7.4 million net loss.

The company also pointed to savings and synergies from its merger, and looked to benefit from even more. BMC and Stock officially merged on Dec. 1, 2015.

“Our integration process is on target as we have taken decisive actions toward combining two best-in-class teams,” said Peter Alexander, president and CEO of BMC Stock. “We moved quickly to establish a lean organizational structure with talent from both legacy businesses. As a result of our efforts, we secured approximately $10 million of annual cost synergies in the first month after the closing of the merger and have increased our anticipated annual run-rate of cost synergies to $40 million to $50 million by the fourth quarter of 2017.”

The company’s fourth-quarter 2015 results included about $19 million in merger-related costs.

According to Alexander, BMC’s growth will be fueled in part by the company’s unique capabilities -- “best-in-class millwork manufacturing, Ready-Frame structural framing products and our eBusiness tools across the combined branch network."

The company operates about 110 locations in 17 states.

Alexander also described industry conditions as favorable to business. “We believe positive macro-economic trends related to job and wage growth, builder confidence and consumer sentiment, combined with improving household formation rates and favorable demographics, will continue to support steady-paced new residential housing market growth in 2016,” he said. 

BMC Stock by the numbers

Q4 Net sales

Q415: $510.2 million

Q414: $311.8 million

Net income (loss)

Q415: ($7.4 million)

Q414: $4.0 million

FY Net sales

FY15 $1.577 billion

FY14 $1.311 billion

FY Net income (loss)

FY15 ($4.8 million)

FY14 $94.0 million