Continental Building Products Reports Third Quarter 2016 Results

Continental Building Products, Inc. (NYSE:CBPX) (the Company), a leading manufacturer of wallboard and gypsum-based products, announced today results for the third quarter ended September 30, 2016.

Highlights of Third Quarter 2016 as Compared to Third Quarter 2015
  • Net sales of $114.6 million rose by 5.9%
  • Cash flow from operations increased to $35.6 million, up 25.3%
  • Net income improved to $6.2 million compared to $4.2 million
  • Adjusted EBITDA 1 of $30.4 million down from $33.7 million
  • Earnings per share increased 50.0% to $0.15; Adjusted earnings per share 1 remained constant at $0.25
  • Deployed $11.4 million to repurchase 520,843 shares of common stock
  • Extended debt maturity and reduced interest rate through successful refinancing

"We are pleased to achieve another quarter of revenue growth and significant cash flow generation reflecting the strength of our highly efficient, low cost operations," stated Jay Bachmann, Continental's Chief Executive Officer. "For the third consecutive quarter, we experienced stronger demand in our markets east of the Mississippi which drove the 6% net sales growth versus last year. We converted all of our adjusted EBITDA into operating cash flow and deployed over $11 million for share repurchases to enhance shareholder returns. As we look to the remainder of 2016, we remain committed to executing our operational initiatives and taking advantage of value-enhancing opportunities."

Third Quarter 2016 Results vs. Third Quarter 2015

Wallboard volumes increased to 634 million square feet (MMSF), compared to 567 MMSF in the prior year quarter, helped by continued stronger demand in the construction markets, specifically new residential and overall in the Southeast. Net sales were up 5.9% to $114.6 million on higher volumes, compared to $108.2 million in the prior year quarter, partially offset by lower average mill net price 2 of $144.34, compared to $153.05 in the prior year quarter. Average mill net price was essentially flat on a sequential quarter basis when compared to $144.86 in the second quarter 2016.

Gross profit was $27.8 million, compared to $30.0 million in the prior year quarter. Gross margin declined to 24.3% compared to 27.7% in the prior year quarter, primarily as a result of higher raw material and maintenance costs.

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