Stock Building Supply posted a net income of $5.6 million in 2Q 2014, more than double its 2Q 2013 net income of $2 million this time last year. The company also grew its net sales to $344 million, up 9.5% from $314.7 million in the second quarter, 2013.
The company's gross margin percentage for the quarter increased to 23.9%, up from from 22.7% one year ago. The increase was driven by improved gross margins on sales of structural components and lumber and lumber sheet goods, as well as more total net sales derived from non-commodity product offerings.
In a call with investors, Stock president and CEO Jeff Rea said the company, which ranked ninth on the 2014 ProSales 100 list, generally shoots for a 9-10% sales growth target on an annual basis.
"We've been very focused on our organic growth efforts," said Rea.
The company notes that net sales increased 13.3% related to sales volume, which was offset in part by reduced selling prices on commodity products.
"While the pace of recovery in U.S. single-family housing starts has been slower than expected, we remain confident that the recovery in the residential construction market is progressing, and anticipate continued growth in our core business segments in the second half of 2014," said
"As demonstrated in the first half of the year, we are realizing benefits from our local and company-wide operating initiatives and remain focused on executing our strategy to further improve our customer service, growth capabilities and operating results."