Mixed Q4 for BMC
BMC Stock Holdings reported fourth quarter 2019 net sales increased 3.6% to $890.6 from net sales of $859.5 million in the fourth quarter 2018.
The Raleigh, N.C.-based pro dealer said the sales increase was driven by acquisition growth of 6.1% and core organic growth of 3.9%, partially offset by a decrease of 5.9% from commodity price deflation.
Full-year 2019 net sales decreased 1.5% to $3.6 billion driven by commodity price deflation of 7.5%, partially offset by an increase of 3.9% from acquisition growth and 3.1% from core organic growth
BMC’s net income for the fourth quarter decreased 28.2% to $20.2 million compared to a net income of $28.1 for the same period a year ago. The company’s net income for the year fell 8.3% to $109.8 million compared to a net income of $119.7 in 2018.
In the fourth quarter, BMC acquired DeFord Lumber. Serving the Dallas-Fort Worth market, DeFord had sales of $75 million for the 12 months ended Sept. 30, 2019.
The dealer made six acquisitions in 2019 with annualized sales of approximately $275 million.
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The Bottom Line: Commodity price deflation stings sales as fourth quarter profits fall more than 28%.
What the CEO said: “2019 was a year of significant accomplishment, leveraging our strong culture, innovation and continuous improvement efforts to drive enhancements in safety, customer service, pricing and productivity,” said Dave Flitman, president and CEO of BMC. “I’m proud of our team’s execution of our strategic initiatives during the year in the face of significant commodity deflation.”
“Looking ahead to 2020, we believe we have strong underlying strength in our core business segments which, coupled with our strategic acquisitions and record cash generation, positions us well to expect 2020 to be a year of solid revenue and earnings growth. I’d like to thank our employees for their focused execution during the year and am excited about our momentum heading into 2020.”
Company info: BMC Stock’s full fourth quarter and year-end report is available here.
The Raleigh, N.C.-based pro dealer said the sales increase was driven by acquisition growth of 6.1% and core organic growth of 3.9%, partially offset by a decrease of 5.9% from commodity price deflation.
Full-year 2019 net sales decreased 1.5% to $3.6 billion driven by commodity price deflation of 7.5%, partially offset by an increase of 3.9% from acquisition growth and 3.1% from core organic growthBMC’s net income for the fourth quarter decreased 28.2% to $20.2 million compared to a net income of $28.1 for the same period a year ago. The company’s net income for the year fell 8.3% to $109.8 million compared to a net income of $119.7 in 2018.
In the fourth quarter, BMC acquired DeFord Lumber. Serving the Dallas-Fort Worth market, DeFord had sales of $75 million for the 12 months ended Sept. 30, 2019.
The dealer made six acquisitions in 2019 with annualized sales of approximately $275 million.
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The Bottom Line: Commodity price deflation stings sales as fourth quarter profits fall more than 28%.
What the CEO said: “2019 was a year of significant accomplishment, leveraging our strong culture, innovation and continuous improvement efforts to drive enhancements in safety, customer service, pricing and productivity,” said Dave Flitman, president and CEO of BMC. “I’m proud of our team’s execution of our strategic initiatives during the year in the face of significant commodity deflation.”
“Looking ahead to 2020, we believe we have strong underlying strength in our core business segments which, coupled with our strategic acquisitions and record cash generation, positions us well to expect 2020 to be a year of solid revenue and earnings growth. I’d like to thank our employees for their focused execution during the year and am excited about our momentum heading into 2020.”
Company info: BMC Stock’s full fourth quarter and year-end report is available here.