Foundation Building Materials rises to big Q4 profit
Foundation Building Materials reported a fourth quarter 2017 net income of $75.9 million – an increase of $84.7 million compared to a net loss of $8.8 million in the fourth quarter 2016.
Foundation Building Materials reported a fourth quarter 2017 net income of $75.9 million – an increase of $84.7 million compared to a net loss of $8.8 million in the fourth quarter 2016.
The company said net income for the quarter increased primarily due to the passage of the Tax Cut and Jobs Act of 2017, which decreased the Foundation’ undiscounted liability under its Tax Receivable Agreement from $203.8 million at Sept. 30, 2017 to $135.8 million at Dec. 31.
For the year, Foundation reported a net income was $82.5 million – an increase of $110.9 million, compared to a net loss of $28.4 million in 2016.
The specialty building products distributor of wallboard, suspended ceiling systems, and mechanical insulation also reported fourth quarter 2017 net sales of $516.8 million – an 11.8% increase from net sales of $462.2 million in the fourth quarter 2016.
The Tustin, Calif.-based company said net sales from acquired branches and those that were strategically combined with existing branches increased by $50.6 million period over period while base business net sales increased $4 million or 2.1%
Specialty building product net sales for the fourth quarter were $443.7 million compared to $400.5 million for the same period a year ago.
Consolidated net sales for the year were $2.1 billion compared to $1.4 billion in 2016 – a 48% increase. Net sales from acquired branches and existing branches that were combined contributed $624 million of the increase. Base business net sales increased $44.4 million, or 5.8% year-over-year, due to continued organic growth initiatives, the company reported.
In 2017 Foundation Building Materials completed 10 acquisitions totaling 19 branches. The 10 acquisitions contributed $78.4 million of net sales for the year.
The company said net income for the quarter increased primarily due to the passage of the Tax Cut and Jobs Act of 2017, which decreased the Foundation’ undiscounted liability under its Tax Receivable Agreement from $203.8 million at Sept. 30, 2017 to $135.8 million at Dec. 31.
For the year, Foundation reported a net income was $82.5 million – an increase of $110.9 million, compared to a net loss of $28.4 million in 2016.
The specialty building products distributor of wallboard, suspended ceiling systems, and mechanical insulation also reported fourth quarter 2017 net sales of $516.8 million – an 11.8% increase from net sales of $462.2 million in the fourth quarter 2016.
The Tustin, Calif.-based company said net sales from acquired branches and those that were strategically combined with existing branches increased by $50.6 million period over period while base business net sales increased $4 million or 2.1%
Specialty building product net sales for the fourth quarter were $443.7 million compared to $400.5 million for the same period a year ago.
Consolidated net sales for the year were $2.1 billion compared to $1.4 billion in 2016 – a 48% increase. Net sales from acquired branches and existing branches that were combined contributed $624 million of the increase. Base business net sales increased $44.4 million, or 5.8% year-over-year, due to continued organic growth initiatives, the company reported.
In 2017 Foundation Building Materials completed 10 acquisitions totaling 19 branches. The 10 acquisitions contributed $78.4 million of net sales for the year.
