BMC Stock Holdings Inc. (Nasdaq: STCK), Raleigh, North Carolina, reported sales for the third quarter of $1.1 billion, an increase of 13.1% compared to the year-ago period. The company reported a profit for the quarter of $44.9 million, up 33.6% from the same quarter a year ago.
“BMC delivered record third quarter results, including double-digit net sales and net income growth, and record gross profit, Adjusted EBITDA and Adjusted Net Income,” said David Flitman, president and CEO of BMC. “These strong results were driven by strong demand in our single-family homes and pro remodel segments and higher lumber pricing, combined with solid execution against our four-pillar strategy, including our BMC Operating System-led productivity and cost savings initiatives. The double-digit sales growth led to sales in the third quarter exceeding $1 billion for the first time in our company’s history. In conjunction with this momentum, we remain vigilant about keeping our associates, suppliers and customers safe as the pandemic continues to evolve.
But the big news during the quarter was that BMC and Builders FirstSource Inc. (Nasdaq: BLDR), Dallas, Texas, announced they have entered into a definitive merger agreement under which Builders FirstSource and BMC will combine in an all-stock merger transaction valued at $2.5 billion. The deal unites the No. 2 (BLDR) and No. 5 (BMCH) companies on MDM’s 2020 Building & Construction Top Distributors list.
“Looking ahead, I am even more excited about the strategic combination with Builders FirstSource, which remains on track to close in late 2020 or early 2021, and I believe it will deliver meaningful shareholder value in the years to come,” Flitman said.
For the first nine months, BMC Stock Holdings reported sales of $3 billion, up 9.3% from the same period of 2019. Profit increased 23.3% to $110.5 million.