RALEIGH, N.C., July 29, 2014 (GLOBE NEWSWIRE) -- Stock Building Supply Holdings, Inc. (Nasdaq:STCK), a large, diversified lumber and building materials distributor and solutions provider that sells primarily to new construction and remodeling contractors, today reported its financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Financial Highlights
- Net sales of $344.6 million, up 9.5%, compared to $314.7 million in the prior year period
- Operating income of $8.9 million, up 130.1%, compared to $3.9 million in the prior year period
- Net income of $5.6 million, compared to $2.0 million in the prior year period
- Adjusted income from continuing operations of $5.8 million, compared to $3.2 million in the prior year period
- Adjusted EBITDA of $12.9 million, compared to $9.0 million in the prior year period
Commenting on the Company's results, Jeff Rea, President and Chief Executive Officer of Stock Building Supply, stated, "During the second quarter, we continued to grow at above-market rates with overall sales volume increasing approximately 13% and gross profit dollars increasing 15%. While U.S. single-family housing starts increased only 1.2% in the first half of 2014 compared to the prior year period, our sales and service professionals delivered double-digit growth during this time period in key product categories such as structural components, millwork and interior products and windows and exterior products. Furthermore, our sales to remodeling contractors increased nearly 13% in the second quarter as compared to the prior year, and we continued to invest in strategic growth initiatives aimed at improving our service capabilities for this customer segment. Additionally, in the second quarter we expanded our structural component capacity in North Carolina and Utah and opened a new distribution and customer support facility in north Charlotte."Jim Major, Executive Vice President and Chief Financial Officer, stated, "Our focused sales and productivity initiatives continue to drive gross margin improvements and increases in adjusted EBITDA. Second quarter gross margin improved approximately 120 basis points to 23.9% as compared to the prior year period, reflecting the benefits of our growth with key customer groups and value-added product categories. Adjusted EBITDA increased $3.9 million, which represented a pull-through of 13.1% of incremental net sales. We continue to maintain a balanced approach to funding growth investments to bolster our market position while driving improvements in our operating margins."
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