Stock Building Supply Holdings reported second quarter 2013 net income of $2 million, compared to a $2.2 million loss reported in the same period last year, and representing the first time in six years the Raleigh, N.C.-based supplier has logged a profit.
Stock, which a couple weeks ago completed an initial public offering that raised about $55.2 million, had net sales in the second quarter of $314.7 million, an increase of 27.7% compared to year-ago net sales of $246.5 million.
The company said operating income in the quarter came in at $3.9 million, up $6 million from an operating loss of $2.1 million in the prior year period. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $9 million, compared to $2.3 million in second quarter 2012.
"During the second quarter we capitalized on improving trends in the housing industry and continued to successfully execute our business strategy," said CEO Jeff Rea
He attributed the strong quarterly performance to “improvements we've made in our customer service and our efficiency in executing on our customers' needs.”
Net sales to single-family home builders in the second quarter rose 40% over the same period last year, which, Rea said, tracks the 15.2% increase in U.S. single-family housing starts over the same period.
“We also delivered solid growth in sales to professional repair and remodeling contractors, with second quarter net sales increasing approximately 12% compared to the second quarter of 2012,” Rea said.
On Aug. 14, Stock’s IPO offered 7 million shares of common stock at $14 a share. The company sold 4,411,765 shares, while investors such as The Gores Group offered 2,588,235 shares
Underwriters purchased an additional 1.050 million shares of common stock from some stockholders. The IPO’s total size was 8.050 million shares, which brought in about $55.2 million after deducting $4.3 million in underwriting discounts and other expenses of about $2.3 million.
The nation’s ninth largest building supply company, Stock had a net loss of $36.9 million in 2012.