Builder services fuel BMC Q1
Led by big revenue from its Ready-Frame and structural components businesses, first quarter 2018 sales at BMC increased more than 10% to $834.2 million from net sales of $757.7 million in the first quarter of 2017.
The Atlanta-based pro dealer also reported a net income of $15.4 million for the quarter, rising more than 300% from a net income of $3.7 million during the same period a year ago.
BMC said that net sales for the quarter 6.8% from higher selling prices of lumber and lumber sheet goods, 2.8% from recent acquisitions and 0.5% from other organic growth.
The company estimates that net sales to single-family home builders and remodeling contractors increased 14.2%, while net sales to multifamily, commercial and other contractors declined 12.6%.
Net sales of Ready-Frame were $50.2 million, an increase of 47.1% for the period. Ready-Frame provides pre-cut and pre-built framing products to builders. Interim president and CEO Dave Keltner said sales in the structural components category grew 23.6% as compared to a year ago, driven in part by the continued success of Ready-Frame
In regard to the labor crisis facing the home building industry, BMC has it covered, according to Keltner.
“BMC is a leader in providing innovative solutions for our customers, who continue to enjoy solid demand but face persistent challenges from labor constraints and cost inflation,” Keltner said.
Within BMC’s manufacturing and distribution facilities, it plans to roll out the BMC Operating System and is investing in automation to improve processes while increase our efficiency, capacity and customer service levels, Keltner said.
“With our customer focus and unique offerings and capabilities, we remain well-positioned to drive sustainable growth and value for all of our stakeholders,” the executive added.
BMC incurred $1.8 million in severance and executive search costs related to the departure of the company’s former CEO Peter Alexander, along with the search for his permanent replacement. This past January, Alexander left BMC under mutual agreement with the board of directors. Keltner assumed the role of interim president and CEO while the company searches for a replacement.
The company also reported that merger and integration costs — related to the 2015 merger between BMC and Stock Building Supply — decreased to $1.7 million for the quarter, compared to $4.4 million in the first quarter of 2017.
BMC operates locations in 45 metro areas across 19 states, primarily in the South and West.
The Atlanta-based pro dealer also reported a net income of $15.4 million for the quarter, rising more than 300% from a net income of $3.7 million during the same period a year ago.
BMC said that net sales for the quarter 6.8% from higher selling prices of lumber and lumber sheet goods, 2.8% from recent acquisitions and 0.5% from other organic growth.
The company estimates that net sales to single-family home builders and remodeling contractors increased 14.2%, while net sales to multifamily, commercial and other contractors declined 12.6%.
Net sales of Ready-Frame were $50.2 million, an increase of 47.1% for the period. Ready-Frame provides pre-cut and pre-built framing products to builders. Interim president and CEO Dave Keltner said sales in the structural components category grew 23.6% as compared to a year ago, driven in part by the continued success of Ready-Frame
In regard to the labor crisis facing the home building industry, BMC has it covered, according to Keltner.
“BMC is a leader in providing innovative solutions for our customers, who continue to enjoy solid demand but face persistent challenges from labor constraints and cost inflation,” Keltner said.
Within BMC’s manufacturing and distribution facilities, it plans to roll out the BMC Operating System and is investing in automation to improve processes while increase our efficiency, capacity and customer service levels, Keltner said.
“With our customer focus and unique offerings and capabilities, we remain well-positioned to drive sustainable growth and value for all of our stakeholders,” the executive added.
BMC incurred $1.8 million in severance and executive search costs related to the departure of the company’s former CEO Peter Alexander, along with the search for his permanent replacement. This past January, Alexander left BMC under mutual agreement with the board of directors. Keltner assumed the role of interim president and CEO while the company searches for a replacement.
The company also reported that merger and integration costs — related to the 2015 merger between BMC and Stock Building Supply — decreased to $1.7 million for the quarter, compared to $4.4 million in the first quarter of 2017.
BMC operates locations in 45 metro areas across 19 states, primarily in the South and West.