Stock points to positives in Q3
Fresh after completing its initial public offering on Aug. 14, Raleigh, N.C.-based Stock Building Supply posted mixed results for the third quarter. The pro dealer reported a net loss of $5.5 million in the third quarter ended Sept. 30. However, sales were up 28.4% to $328.5 million, compared with $255.8 million in the same period last year.
Now traded on the Nasdaq market under the ticker symbol STCK, Stock’s IPO yielded approximately $46.8 million of proceeds that were used to repay borrowings under the company’s revolver.
The company’s net loss included $9.3 million of IPO transaction-related costs, compared with net income of $0.04 million in the prior-year period. In the third quarter of 2012, stock earned $40,000.
For the nine months, Stock’s net income loss narrowed to $7.59 million, compared with a net loss of $10.76 million in the same nine-month period of 2012.
"In the third quarter, our business performance continued its positive trend of strong revenue growth and increases in adjusted EBITDA,” said CEO Jeff Rea in a prepared statement. “Additionally we completed our transition to a public company with a successful IPO on Aug. 14, which helped improve our liquidity and strengthen our balance sheet. We believe our growth rate continues to outperform our industry benchmarks as revenues from new single-family construction increased approximately 31%, while repair and remodel revenues increased 28% compared with third quarter 2012."
The company reported a significant reduction in debt — from $116.6 million at the beginning of the quarter to $57.2 million as of Sept. 30. “We believe our current capital structure will allow us to make the required investments in our business to support our anticipated future growth," said Jim Major, executive VP and CFO.
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WOLF promotes Ed O’Brien
York, Pa.-based WOLF announced the promotion of Ed O’Brien to the post of VP operations.
WOLF describes itself as the largest supplier of kitchen and bath cabinets in the United States and a leading provider of building products along the East Coast. The company says the move, along with the promotion of Mike Sessinger, will help it achieve an expanded service area and help evolve its strategic focus.
Both Sessinger and O’Brien will report to WOLF president Brad Kostelich.
NLBMDA honors Fromme
The National Lumber and Building Material Dealers Association (NLBMDA) presented 2012 chair Cally Coleman Fromme, president and CEO of Zarsky Lumber Company in Victoria, Texas, with the 2013 Grassroots Dealer of the Year award during the ProDealer Industry Summit in Nashville, Tenn.
Fromme earned the award for her efforts in helping to reintroduce the Innocent Sellers Fairness Act (H.R. 2746), a top legislative priority for the NLBMDA. The bill provides product liability protection to those businesses that sell products, but did not manufacture them.
Fromme’s outreach to Rep. Blake Farenthold (R-Texas), in building support for the legislation, was critical to its reintroduction. Farenthold, a member of the House Committee on Judiciary, has worked to protect Americans from abusive litigation, and became familiar with the Innocent Sellers Fairness Act after meeting with Fromme about the legislation. His reintroduction of the legislation is an important step in addressing lawsuit abuse.
“NLBMDA is appreciative of Congressman Farenthold’s work to bring balance back to our legal system," said Fromme. "Retailers whose only role in the supply chain is the sale of a product should not be held liable for product defects that they did not create."
Unfounded and unfair lawsuits are increasingly having a negative effect on the ability of building material dealers and distributors to run their businesses and contribute to their communities. According to a 2010 study by the U.S. Chamber of Commerce Institute for Legal Reform, small businesses bear 81% of business tort liability costs. The high costs of defending product liability lawsuits have caused many building material dealers to settle, regardless of the merits of the case.
"NLBMDA thanks Cally for her continued work in helping lumber and building material dealers," said 2013 NLBMDA chair Chuck Bankston, president of Bankston Lumber Company in Barnesville, Ga. "Abusive product liability cases are part of a growing litigation burden, and we appreciate Congressman Farenthold’s leadership on this issue."