84 Lumber revealed today, July 9, that the company posted a profit for the month of May 2008, the dealer's first for the year.
While the Eight Four, Pa.-based company did not reveal how large of a profit it actually turned, it arrives on heels of several turbulent months that saw 84 Lumber close or consolidate 52 locations that it deemed unprofitable.
The third-largest U.S. pro dealer also said sales had been decreasing at company since April 2006, but leveled off in December 2007 and have remained consistent since. 84 Lumber is nearly 100% "dependent" on single family housing starts, the company noted.
"Because we are a national company with half of our locations in the Northeastern quadrant of the country, we have been somewhat less affected by drops in housing starts in the Southeast and Southwest quadrants than some of our competitors," Dan Wallach, 84 Lumber chief financial officer, said in a prepared statement released this morning. "This geographic footprint and gains in market share have allowed our sales to remain consistent even as starts have declined."
Last April the dealer also inked two, new five-year credit facilities with Sun Trust Bank and Wachovia Bank, totaling $590 million.
84 Lumber is the largest privately held pro dealer in the United States. It operates 380 stores in 37 states, along with manufacturing near or at many of those locations. The dealer ranked third on the 2008 ProSales 100 with overall sales of $3.1 billion for 2007, down nearly 21% from sales of $3.92 billion in 2006.