Zeeland Lumber & Supply expands
Zeeland, Mich.-based Zeeland Lumber & Supply expanded to Mishawaka, Indiana, its sixth location.
Other Michigan units operate in Zeeland; Wyoming, Kalamazoo and Waterford. The copmany also operates a facility an Elkhart, Indiana.
The company describes itself as an independently owned and operated organization that specializes in lumber and building material supply, truss and component manufacturing, and labor solutions.
The grand opening ceremony of the new Zeeland location took place July 29.
Merger-injected BMC boosts performance
Acquisitions of Stock, VNS and Robert Bowden certailiny paved the way to boosts in sales and income for the new BMC, but even adjusted sales and income showed significant growth, the company reported today.
BMC acquired Stock Dec. 1, 2015, creating BMC Stock Holdings. Here is the top and bottom line performance for the most recent quarter:
On an adjusted basis, the company estimates net sales, as compared to adjusted net sales in the second quarter of 2015, increased 5.4% as a result of acquisitions completed in 2015, 6.8% from other volume growth and 0.6% as a result of lumber and sheet goods commodity price inflation.
Adjusted net income in the second quarter of 2016 was $21.6 million, compared to adjusted net income of $12.2 million in the second quarter of 2015.
“During the quarter, the macro elements supporting further expansion in residential construction activity, including consumer confidence, low interest rates and employment and wage growth, remained favorable,” said Peter Alexander, CEO. “With this background, our operating teams continued to capitalize on profitable growth opportunities and delivered healthy financial improvements.”
Also on an adjusted apples-to-apples basis, structural component grew 15.3%, millwork, doors and windows grew 17.0%, and Ready-Frame offering grew sales 32%, compared to the second quarter of 2015.
“We expect that prevailing macroeconomic trends will continue to support steady growth in the U.S. housing market,” Alexander added.
Builders FirstSouce reports Q2 gains
With the acquisition of ProBuild a little more than a year ago, there are lot of moving parts to Builders FirstSource’s second-quarter earnings report.
But by any measure – GAAP or pro forma – sales and earnings were positive.
Including ProBuild’s financial results, the company posted net sales of $1.7 billion for the quarter, up 3.3% from the same period a year ago. Adjusted net income was $35.3 million, up from $18.4 million.
The company said the sales jump was largle the a result of the operating synergies realized by the merger – as well as $6.5 million in interest savings as a result of debt exchanges.
On a GAAP basis, excluding ProBuild, the following chart tells a story of big growth:
Builders FirstSource, GAAP numbers (excluding ProBuild):
• Q216 Net sales: $1,677 million
• Q215 Net sales: $461 million
• Q216 Net income: $29.4 million
• Q215 Net income: $3.6 million
According to CEO Floyd Sherman, the company achieved growth despite weather-related issues and construction labor constraints.
Sherman added: “I am extremely confident about the future of Builders FirstSource, and I believe the housing industry remains on a trajectory of steady growth. We are also encouraged by the recent increase in framing lumber composite prices. We expect to grow our revenues and operating profit by leveraging our national scale, improved geographic and end market exposure, customer reach, service advantage, and value added product portfolio.”
The integration of ProBuild and Builders FirstSource continues. The company has completed 46 conversions to Builder’s proprietary ERP system with “minimal disruptions,” said Chad Crow, president and CFO.
Builders operates 399 locations in 40 states. It is ranked first on the HBSDealer Top 200 list.