Huttig points to improved financial performance
St. Louis-based Huttig Building Products pointed to improvements in financial metrics for the third quarter.
But regarding the unsolicited takeover offer from private equity firm Mill Road Capital, Huttig said little, other than that it was reviewing the proposal.
"The company does not intend to disclose any updates regarding its review of the proposal until the Board of Directors makes a determination requiring further disclosure," Huttig said.
Meanwhile, the business of distributing building products continues. Sales declined slightly in the three months ended Sept. 30 to $212.7 million, down 1.4% from $215.7 million in the same quarter last year.
CEO Jon Vrabely pointed to meaningful improvements in the business, including expense and debt reductions.
Several factors contributed to the decline in sales: supply chain disruption, labor shortages and the closure of two branches in the third quarter of 2020.
The company stated: "While some of our largest markets were significantly impacted early in the pandemic, third quarter activity has recovered to levels approaching prior year sales after posting a 12.1% year-over-year decline in the second quarter of 2020. Demand has improved as construction activity has rebounded."
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Bottom line: Huttig reported net income of $6.1 million for the quarter, compared to net income of $1.6 million for the 2019 third quarter.
What the CEO said: "As devastating as the impact of the COVID-19 global pandemic has been on our country, economy, and way of life, it was the catalyst for many of the changes we made to our business, contributing to our improved financial performance in the quarter,” said Jon Vrabely, president and CEO of Huttig.
More information: The company's full earnings release is here.