BMC launches stock repurchase program
The pro dealer plans to repurchase $75 million in outstanding shares.
BMC Stock Holdings, Inc. announced that its board of directors has authorized a new $75 million stock repurchase program for the pro dealer’s common shares outstanding.
“The authorization of a stock repurchase plan demonstrates our confidence in the continued strength and long-term growth prospects of our business and underscores our commitment to a balanced capital allocation strategy,” said Dave Flitman , president and CEO of BMC.
“We believe our strong balance sheet and cash flow provide us the flexibility to opportunistically return capital to our shareholders while continuing to invest in organic and inorganic growth opportunities, including product and service innovation, manufacturing automation and acquisitions to drive shareholder value,” he added.
Under the board’s authorization, repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, or a combination of these and other methods. The repurchase program will expire on Nov. 20, 2019 or may be suspended or discontinued at any time, the company said.
Based in Raleigh, N.C., BMC Stock had sales of $3.4 billion in 2017 and operates in 45 metro areas in 19 states. At the start of November, BMC Stock reported third quarter 2018 net sales increased 12.4% to $990.3 million.
Existing-home sales rise in October
Existing-home sales rise in 3 of 4 major U.S. regions.
There was good news the day before Thanksgiving when it came to existing-home sales.
According to the latest report from the National Association of Realtors (NAR), existing-home sales increased in October after six straight months of decreases with 3 of the 4 major U.S. regions showing gains in the last month.
Total existing-home sales, including completed transactions of single-family homes, townhomes, condominiums and co-ops, increased 1.4% from September to a seasonally adjusted rate of 5.22 million in October. Sales are now down 5.1% from a year ago and the October 2017 rate of 5.5 million.
An increase in housing inventory is partly responsible for the October increase, the NAR said.
“After 6 consecutive months of decline, buyers are finally stepping back into the housing market,” said Lawrence Yun, chief economist of the NAR. “Gains in the Northeast, South and West – a reversal from last month’s steep decline or plateau in all regions – helped overall sales activity rise for the first time since March 2018.”
Single-family home sales are at a seasonally adjusted annual rate of 4.62 million in October, up from 4.58 million in September, and 5.3% below the 4.88 million sales pace from a year ago. The median existing single-family home price was $257,900 in October, up 4.3% from October 2017.
The median existing-home price for all housing types in October was $255,400, up 3.8% from the October 2017 price of $246,000. October’s price increase marks the 80th straight month of year-over-year gains.
Total housing inventory at the end of October decreased from 1.88 million in September to 1.85 million existing homes available for sale, but that represents an increase from 1.80 million a year ago, the NAR said. Unsold inventory is at a 4.3-month supply at the current sales pace, down from 4.4 last month and up from 3.9 months a year ago.
Properties typically stayed on the market for 33 days in October, up from 32 days in September but down from 34 days a year ago. About 46% of homes sold in October were on the market for less than a month.
“As more inventory enters the market and we head into the winter season, home price growth has begun to slow more meaningfully,” said Yun. “This allows for much more manageable, less frenzied buying conditions.”
The hottest metro areas in October were Midland, Texas; Fort Wayne, Ind.; Odessa, Texas; Boston-Cambridge-Newton, Mass.; and Columbus, Ohio.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 4.83% in October from 4.63% in September. The average commitment rate for all of 2017 was 3.99%.
“Rising interest rates and increasing home prices continue to suppress the rate of first-time homebuyers. Home sales could further decline before stabilizing. The Federal Reserve should, therefore, re-evaluate its monetary policy of tightening credit, especially in light of softening inflationary pressures, to help ease the financial burden on potential first-time buyers and assure a slump in the market causes no lasting damage to the economy,” says Yun.
First-time buyers were responsible for 31% of sales in October, down from last month and a year ago rate of 32%.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 600,000 units in October, up 5.3% from last month but down 3.2% from a year ago. The median existing condo price was $236,200 in October, which is down 0.2% from a year ago.
October existing-home sales in the Northeast increased 1.5% to an annual rate of 690,000, 6.8% below a year ago. The median price in the Northeast was $280,900, which is up 3% from October 2017.
In the Midwest, existing-home sales declined 0.8% from last month to an annual rate of 1.27 million in October, down 3.1% overall from a year ago. The median price in the Midwest was $197,000, up 2.4% from last year.
Sales rose 1.9% in the South to an annual rate of 2.15 million in October, down 2.3% from last year. The median price in the South was $221,600, up 3.8% from a year ago.
Existing-home sales in the West grew 2.8% to an annual rate of 1.11 million in October, 11.2% below a year ago. The median price in the West was $382,900, up 1.9% from October 2017.
Video: BMC’s Design Center in Dallas
On Jan. 15, this upscale center will set the stage for the unveiling of the January issue of HBSDealer.
Developed with a sense of Dallas’ architectural history and located in the Dallas Design District, a revitalization project in the heart of the city, the BMC Design Center in Dallas brings indoor living spaces to life.
Opened in 2015, the 4,200-sq.-ft. space features specialty millwork, cabinets and countertops, designer hardware, windows, doors, and more for kitchens, living rooms and bathrooms. Builders, designers and homeowners are equally comfortable in BMC’s Design Center, which is described as a facility that “feels more like a model home than a traditional retail showroom.”
On Jan. 15, the Dallas Design Center will host an unveiling of the BMC-focused January issue of HBSDealer, attended by BMC’s executive leadership team and other special guests. For more information, contact Amy Grant at [email protected], or Greg Cole at [email protected].