HDW appoints new president
Stapleton to replace Beauvais at Texas-based regional hardware distributor.
Hardware Distribution Warehouses announced a replacement for CEO and President Kenneth R. Beauvais, who resigned November 5. Billy Stapleton has been appointed by the new HDW Board of Directors as president of HDW.
Prior to becoming president, Stapleton was the VP of merchandising. He has been with HDW for 23 years.
“The board is confident that under his leadership and guidance HDW will continue to move forward,” according to the announcement released.
Stapleton has worked in the wholesale hardware industry for more than 30 years and began his career with Dallas, Texas-based Higginbotham Pearlstone, which was on of the three distributors that helped form the original HDW in 1994.
Hardware Distribution Warehouse, Inc. is an employee-owned company. It provides independent hardware and lumber yards a source for retail products. HDW is a member-owner of Distribution America, the nation’s largest network of independent hardware and paint sundries wholesale distributors.
CEO resigns at HDW
Kenny Beauvais leaves Texas-based Hardware Distribution Warehouses Inc.
Marshall, Texas-based HDW Inc. President and CEO Kenny Beauvais is leaving the company.
The move was confirmed by the company and comes more than a year after it combined the operations of its distribution centers in Shreveport, La., and Houston, Texas into a single facility in Marshall, Texas, where it set up its headquarters.
HDW took on the Houston facility when it acquired the distributor formerly known as Handy Hardware in 2016.
HDW also operates a distribution center in Greenwood, Mississippi.
In a press release from September, Beauvais pointed to strong sales at the company’s Fall Market, which benefited from 60 new dealer attendees.
According to Jimmy Horne, VP of corporate communications, a decision on who will become the new CEO has not been made yet. HDW, which stands for Hardware Distribution Warehouses, plans to provide more information shortly.
HDW is a product of multiple mergers in the hardware distribution industry. It was formed in 1994 with the combination of three companies: South States, Inc. of Shreveport, La.; Henderson & Baird Company, Greenwood, Miss.; and Higginbotham-Pearlstone Hardware Company, Dallas, Texas. That combined entity took on the name of “South States,” and later changed to HDW.
The company’s web site says the distributor today serves more than 2,000 lumberyards hardware stores and other retailers in 11 southern states.
Huttig pleased with Q3 growth
Building products distributor sees double-digit revenue gains.
Pointing to growth that outpaced the LBM market, St. Louis-based Huttig Building Products reported third quarter sales of $220.0 million, up 11.2% over the prior year.
Net income declined slightly to $1.2 million, compared to $1.4 million in the third quarter of 2017.
Residential construction activity was cited as one reason for sales gains. Another factor, according to the company, was the execution of its strategic growth initiatives.
“Our sales performance in the quarter clearly demonstrates that our growth and diversification strategy is working,” said Jon Vrabely, Huttig’s president and CEO. “While our total growth in the quarter far outpaced that of the market, of which a considerable amount was derived from outside our traditional customer segments, we need to continue to improve our margin and operating leverage to achieve our working capital targets. As such, we are taking measures to right-size our inventory and expense structure to be more aligned with our current and future projected growth.”
The company’s growth initiatives included an emphasis on building products, which saw the biggest percent gains in Q3. Huttig’s sales by category were reported like this:
- Building products sales increased 17.3% in the third quarter of 2018 to $96.9 million, compared to $82.6 million in the third quarter of 2017;
- Millwork product sales increased 7.4% in the third quarter of 2018 to $104.8 million, compared to $97.6 million in the third quarter of 2017; and
- Wood product sales increased 4.6% in the third quarter of 2018 to $20.3 million, compared to $19.4 million in the third quarter of 2017.
For the nine-month period, net sales were $643.4 million, which was $69.4 million, or 12.1%, higher than 2017. Here again, the company cited an increase in residential construction activity as compared to 2017 levels and organic growth derived from the execution of strategic growth initiatives.
Operating expenses increased $2.9 million to $41.1 million in the third quarter of 2018, compared to $38.2 million in the third quarter of 2017. Personnel costs increased approximately $1.5 million, primarily as a result of wage increases, increased variable compensation, higher healthcare costs, and hiring additional sales and warehouse personnel related to the execution of our strategic growth initiatives.
Non-personnel costs increased approximately $1.4 million, primarily as a result of higher fuel prices, increased contract hauling costs, and higher facilities costs.