FBM sales slow, but Q4 income rises
Fourth quarter 2019 sales at Foundation Building Materials slipped 0.3% to $514.8 million from fourth quarter 2018 sales of $516.2 million.
The specialty building products distributor said sales during the quarter from base business branches decreased $4.1 million compared to the prior year period, primarily due to ongoing softness in Canadian markets and lower residential construction volumes.
Sales for the full fiscal year 2019 increased 5.4% to $2.15 billion from 2018 sales of $2.04 billion.
The Santa Ana, Calif.-based company reported a net income from continuing operations of $9.6 million for the fourth quarter compared to a net income from continuing operations of $1.9 million in the same period a year ago.
For the full year, Foundation Building Materials posted a net income from continuing operations of $41.8 million compared to $36.4 million in the prior year.
In 2019, the company completed five acquisitions with combined annual net sales of more than $52. Last year Foundation Building Materials opened four greenfield branches and expects to open four to six more branches by the end of 2020, which includes its most recent greenfield branch in Charleston, S.C.
Foundation Building Materials is a specialty building products distributor of wallboard, suspended ceiling systems, and metal framing with more than 175 locations in the United States and Canada.
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The Bottom Line: Profits from continuing operations jump ahead in Q4 and 2019 for Foundation Building Materials.
What the CEO said: “We are pleased to deliver strong fourth quarter and full-year results. As our results demonstrate, 2019 was a year of focus and execution, and we achieved our financial goals with solid sales growth and profit margin expansion, which contributed to our reduction of debt,” said Ruben Mendoza, president and CEO of Foundation Building Materials. "For 2020, our strategic priorities are to drive organic growth, further reduce our debt, and continue to drive profit margin expansion that will deliver long-term value to our shareholders.”
Company info: The full fourth quarter and year-end 2019 report from Foundation Building Materials is available here.
The specialty building products distributor said sales during the quarter from base business branches decreased $4.1 million compared to the prior year period, primarily due to ongoing softness in Canadian markets and lower residential construction volumes.
Sales for the full fiscal year 2019 increased 5.4% to $2.15 billion from 2018 sales of $2.04 billion.
The Santa Ana, Calif.-based company reported a net income from continuing operations of $9.6 million for the fourth quarter compared to a net income from continuing operations of $1.9 million in the same period a year ago.For the full year, Foundation Building Materials posted a net income from continuing operations of $41.8 million compared to $36.4 million in the prior year.
In 2019, the company completed five acquisitions with combined annual net sales of more than $52. Last year Foundation Building Materials opened four greenfield branches and expects to open four to six more branches by the end of 2020, which includes its most recent greenfield branch in Charleston, S.C.
Foundation Building Materials is a specialty building products distributor of wallboard, suspended ceiling systems, and metal framing with more than 175 locations in the United States and Canada.
###
The Bottom Line: Profits from continuing operations jump ahead in Q4 and 2019 for Foundation Building Materials.
What the CEO said: “We are pleased to deliver strong fourth quarter and full-year results. As our results demonstrate, 2019 was a year of focus and execution, and we achieved our financial goals with solid sales growth and profit margin expansion, which contributed to our reduction of debt,” said Ruben Mendoza, president and CEO of Foundation Building Materials. "For 2020, our strategic priorities are to drive organic growth, further reduce our debt, and continue to drive profit margin expansion that will deliver long-term value to our shareholders.”
Company info: The full fourth quarter and year-end 2019 report from Foundation Building Materials is available here.