Stock Building Supply Sales Up 28.4% in Third Quarter - Modern Distribution Management

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Stock Building Supply Sales Up 28.4% in Third Quarter

The newly public company recorded a loss for the period of $5.5 million, including $9 million of charges related to its IPO.

Stock Building Supply Holdings, Inc. (Nasdaq: STCK), Raleigh, NC, reported third-quarter sales of $328.5 million, up 28.4 percent year-over-year. Volume contributed 23.4 percent to growth, while prices added 5 percent. The increased sales volume was primarily due to increased single-family housing starts and higher repair and remodel activity.

The building materials distributor recorded a net loss for the period of $5.5 million, compared to profit of $40,000 a year ago.

Results include $9.3 million of initial public offering transaction-related costs, including a $9 million fee for terminating management services with The Gores Group, LLC. Stock completed its IPO on Aug. 14, yielding approximately $46.8 million of proceeds that were used to repay debt.

"While we expect the normal seasonal and weather related slow-down in our business as we enter the winter months, we believe macroeconomic trends remain favorable for year-over-year improvement in our core markets," CEO Jeff Rea said. "With the short- and mid-term objective of accelerating both our revenue growth and profitability, we plan to continue to invest in our strategic initiatives to better serve our core customers, expand our capacity and increase our operating capabilities."

For the nine months ended Sept. 30, sales were $891.8 million, up 29.2 percent year-over-year. Stock recorded a loss for the period of $7.6 million, compared with a loss of $10.8 million a year ago.

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