Huttig posts Q4 loss
Huttig Building Products reported fourth quarter 2017 net sales from continuing operations were $179.2 million, about 9% higher than net sales from continuing operations of $164.4 million in the same period a year ago.
The St. Louis-based distributor reported that millwork sales increased 2% to $92.8 million during the fourth quarter, building product sales increased 16% to $69.6 million (primarily due to the expansion of the Huttig-Grip product line) and wood product sales increased 29% to $16.8 million.
For the year, net sales increased about 6% to $753.2 million in 2017 from net sales of $713.9 million in 2016. Huttig said the increase was driven by higher levels of construction activity, the expansion of the Huttig-Grip product line and a full year’s results from the acquisition of BenBilt, completed on April 4, 2016.
However, Huttig reported a net loss of $9.8 million for the quarter compared to net earnings of $200,000 in the fourth quarter of 2016. For the year, the company posted a net loss of $7.1 million. In 2016 Huttig reported net earnings of $16.3 million.
A number of factors impacted Huttig’s profits for the quarter and the year including continued investments in infrastructure, employees and technology, according to Huttig president and CEO Jon Vrabely.
Huttig’s operation expenses increased $8.6 million or 25% to $42.4 million in the fourth quarter of 2017, to $33.8 million, or 20.6% of net sales, in the fourth quarter 2016. Personnel costs increased $4.7 million during the quarter while non-personnel costs increased $3.9 million during the period.
“While these investments have negatively impacted our financial results in 2017, including the most recent quarter, we continue to believe that the investments made in operating expenses and capital will accelerate our growth and diversify our business, which will improve operating leverage and increase the value of the company over the intermediate term,” Vrabely said.
Vrabely has also been serving as interim CFO of Huttig since last month’s departure of Oscar Martinez, who had served as CFO since April 2016.
The St. Louis-based distributor reported that millwork sales increased 2% to $92.8 million during the fourth quarter, building product sales increased 16% to $69.6 million (primarily due to the expansion of the Huttig-Grip product line) and wood product sales increased 29% to $16.8 million.
For the year, net sales increased about 6% to $753.2 million in 2017 from net sales of $713.9 million in 2016. Huttig said the increase was driven by higher levels of construction activity, the expansion of the Huttig-Grip product line and a full year’s results from the acquisition of BenBilt, completed on April 4, 2016.
However, Huttig reported a net loss of $9.8 million for the quarter compared to net earnings of $200,000 in the fourth quarter of 2016. For the year, the company posted a net loss of $7.1 million. In 2016 Huttig reported net earnings of $16.3 million.
A number of factors impacted Huttig’s profits for the quarter and the year including continued investments in infrastructure, employees and technology, according to Huttig president and CEO Jon Vrabely.
Huttig’s operation expenses increased $8.6 million or 25% to $42.4 million in the fourth quarter of 2017, to $33.8 million, or 20.6% of net sales, in the fourth quarter 2016. Personnel costs increased $4.7 million during the quarter while non-personnel costs increased $3.9 million during the period.
“While these investments have negatively impacted our financial results in 2017, including the most recent quarter, we continue to believe that the investments made in operating expenses and capital will accelerate our growth and diversify our business, which will improve operating leverage and increase the value of the company over the intermediate term,” Vrabely said.
Vrabely has also been serving as interim CFO of Huttig since last month’s departure of Oscar Martinez, who had served as CFO since April 2016.