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FBM Q2 sales rise 14%

The California-based wallboard distributor will continue to expand in 2018.

BY HBSDealer Staff

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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Sales soar, costs rise for BlueLinx

Q2 Cedar Creek integration costs take a bite out of earnings.

BY HBSDealer Staff

BlueLinx reported net sales of $893.0 million for the second quarter of 2018, up 88.4% from net sales of $474 million in the second quarter of 2017.

The Atlanta, Ga.-based building products distributor also reported a second quarter net loss of $8.6 million compared to a net income of $3.2 million in the same period a year ago. For the first six months of the year, BlueLinx reported a $22 million loss, swinging from a net income of $3.8 million in the first half of 2017.

BlueLinx CEO Mitch Lewis noted that the company was still in the beginning stages of integrating Cedar Creek into its portfolio, and cost savings are on the horizon.

“While we are still early in our 18-month integration process, based on specific opportunities we have identified and actions taken to date, we are increasingly confident in our ability to generate at least $50 million in annual synergies,” Lewis said.

Wall Street reacted positively to the earnings report, sending shares of BXC up almost 20% on Thursday.

For the first six months of 2018, BlueLinx posted net sales of $1.3 billion, a 47.4% increase from net sales of $902.6 million in the corresponding period last year.

During the second quarter BlueLinx incurred one-time charges of $11.6 million for legal, professional and other integration costs related to the acquisition of Cedar Creek, completed on April 13.

As a result of the increase in the company’s stock price following the acquisition of Cedar Creek, BlueLinx incurred charges in the second quarter associated with compensation expense from stock appreciation rights and other share-based compensation of $3.8 million. The company said it will pay out the expense in 2018 and 2019.

 

 

 

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HBSDealer Stock Watch: Day for the Bears

BY HBSDealer Staff
Hardware and building supply stocks generally retreated on Wednesday. Of the 30 stocks tracked below, 23 finished the day lower. The biggest mover was BECN, down 14%.
Company Price Change
AWI (Armstrong) 68.05 -2.37%
BCC (Boise) 44.00 N.C.
BECN (Beacon) 36.54 -13.98%
BLDR (Builders FS) 17.51 -1.79%
BMCH (BMC Stock) 22.35 -0.89%
BXC (BlueLinx) 32.39 -2.09%
CENT (Central Garden) 41.46 -2.03%
DE (Deere & Co.) 144.81 -0.90%
DOOR (Masonite) 65.50 -1.73%
EXP (Eagle) 99.08 -1.27%
FAST (Fastenal) 57.79 +0.87%
HBP (Huttig) 5.14 +0.59%
HD (Home Depot) 198.02 +0.49%
JELD (Jeld-Wen) 23.71 -9.95%
LL (Lumber Liquidators) 19.02 -1.40%
LOW (Lowe’s) 98.87 +0.09%
LPX (Louisiana-Pacific) 28.62 -0.56%
MAS (Masco) 39.22 -1.23%
PPG (PPG) 109.25 -0.65%
SHW (Sherwin-Williams) 443.66 -0.10%
SMG (Scotts Miracle-Gro) 75.97 -1.59%
SSD (Simpson) 72.79 -1.03%
SWK (Stanley) 143.24 -1.28%
TREX (Trex) 77.78 -1.82%
TSCO (Tractor Supply) 81.27 +1.61%
TTC (Toro) 59.91 -0.63%
UFPI (Universal Forest) 36.62 -0.46%
USG (USG) 43.21 -0.09%
WDFC (WD-40) 165.50 -0.48%
WY (Weyerhaeuser) 34.33 +0.20%
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