Stock Building Supply reported net sales of $280 million in the first quarter of 2014, a 12.6% increase over year-ago sales of $248.7 million. Operating losses came to $4.4 million in the quarter, down 15% from first quarter 2013 losses of $5.3 million.
Single-family customer builders and repair and remodeling contractors drove sales in the quarter by 9% and 17.3%, respectively, according to Stock CEO Jeff Rea.
“Despite the challenging weather conditions that impacted operations in many of our geographies during the quarter, revenues increased over 12% versus the prior year, and materially outpaced the approximately 2% decline in U.S. single family housing starts,” Rea said during an April 29 earnings call with investors.
CFO Jim Major said the Raleigh, N.C.-based dealer continued in the first quarter of the year to “leverage our above-market growth with both single-family homebuilders and remodeling contractors to drive an increase in our gross profit of over 21%, and expansion in our gross margins of 170 basis points,” compared to the year-ago quarter.
Stock saw sales volume growth across all product lines, Rea said. Specifically, he said, structural component sales grew more than 24% in the quarter, as customers expanded the use of components as a means to improve quality, minimize jobsite inefficiencies, and reduce cycle times.
"Windows and other exterior products also provided healthy growth in the first quarter," said Rea. "Sales in this category grew approximately 18% on improved demand from our customer builder and repair and remodel customers." The U.S. west and south, where winter weather wasn't as dismal, saw the most gains in window and exterior products.
Major estimates the future looks bright for the company, as long as the single-family market and lumber prices gain momentum as expected in the coming months.
"We're not going to slow down," says Rea. "We expect to see continued longterm growth."