FBM Q2 sales rise 14%
The California-based wallboard distributor will continue to expand in 2018.
Foundation Building Materials (FBM) reported consolidated net sales of $605 million for its second quarter, marking a 14.3% increase from consolidated net sales of $529.2 million for second quarter 2017.
Base business net sales increased 9.5%, to $546.2 million for the quarter. Net sales from acquired branches and existing branches that were strategically combined contributed $28.2 million to the increase in consolidated net sales, FBM said.
FBM posted a net income of $5.4 million for the second quarter compared to a net income of $1.3 million during the second quarter of last year.
Specialty building products net sales increased 13.5 % for the quarter to $522.2 million compared to $460.1 million. Net sales from base business contributed $34.4 million of the net increase, driven by strong commercial activity, price increases, and product expansion into new geographic markets. Net sales from acquired branches and existing branches that were strategically combined with acquired branches contributed $27.7 million of the increase, FBM said.
Mechanical insulation sales were $82.8 million for the quarter, up nearly 20%. Net sales from base business contributed $13.1 million of the increase, which was primarily due to higher net sales from FMB’s industrial end markets.
Consolidated net sales for the first six months of 2018 were $1.14 billion, up more than 13% from sales of $1 billion in the first half of 2017. FBM’s net income for the first half of 2018 fell 17% to $4.3 million from a profit of $5.2 million in the same period of 2017.
On Aug. 1 FBM completed the acquisition of Ciesco, Inc. adding 6 additional SBP branches to the company’s Northeastern and Mid-Atlantic markets. For the remainder of 2018, Ciesco is expected to contribute $24 million to $27 million to net sales.
Through Aug. 9, FBM Company has completed 3 acquisitions totaling 13 branches with combined annualized net sales in excess of $100 million.
As of June 30, 2018, the Company has opened 5 greenfield branches and expects to open up to 2 more branches by the end of 2018, for a total of 6 to 7 new branches.
“As we enter the second half of 2018, our business remains strong, and we see solid activity in each of our end markets,” said Reuben Mendoza, CEO of FBM.
Based in Tustin, Calif., FBM distributes wallboard, suspended ceiling systems, and mechanical insulation through more than 220 branches across the U.S. and Canada.
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