No Stop in Sight for SRS
SRS Acquisition's Locations Nationwide
Summers in Texas always are hot, but this past one was especially intense in the north Dallas suburb of McKinney. That's where SRS Acquisition Corp. was adding feverishly to its collection of roofing supply stores and gunning to boost this year's sales by 66% to $200 million.
"We are willing to open new locations and grow when everyone else is contracting," Daniel Tinker, vice president and COO of SRS, told ProSales.
Over the summer, SRS acquired Atlanta South Supply in the Atlanta market, Shake & Shingle Supply in the Denver market, River City Wholesale in Louisville, Ky., and four Roofline Supply & Delivery locations in Oregon. All are independent roofing distributors. Then it followed up on Aug. 31 by announcing that its Wilson Wholesale unit serving the Chicago market was opening a new location in Minneapolis.
SRS broke onto the ProSales 100 this year, ranking 29th with 2008 total sales of $120 million. It's aiming to break the $1 billion mark by 2012.
"We are trying to preserve the legacy and heritage of the companies we acquire," Tinker said, noting this approach has helped SRS win over several firms.
Green Start-Up Plans 25 Stores
A California start-up company plans to open 25 green building materials stores in the Golden State in what its owner says is a plan to place a store within a mile of every Home Depot and Lowe's outlet in the country and build a huge green training and networking site on the Internet.
New Home Inc. will open a flagship store in Dublin, Calif., in January followed by nine more stores in the Bay Area and Sacramento, another 15 elsewhere in California, and eventually stores and distribution centers in the rest of the United States. Each of the stores will cover about 30,000 square feet, employ roughly 40 people, and carry more than 200,000 eco-friendly products spanning more than 36 categories, including lumber, roofing, flooring, insulation, and cabinets. It has yet to identify any brands it will sell.
New Home founder and CEO Rich Rifkin said the company will appeal to professional builders and remodelers as well as the do-it-yourself crowd. The staff will be drawn from experienced builders who happen to be out of work because of the housing crash, and many of those staffers will be certified as LEED Accredited Professionals or hold similar green documents. The result, Rifkin said, will be "a different level of service than at a big-box store."
BMHC Incurs $9.4 Million Loss
Building Materials Holding Corp. (BMHC) incurred a $9.4 million net loss in July on $66.3 million in sales, America's sixth-biggest LBM operation reported in a Chapter 11 filing. The Boise, Idaho-based building materials dealer and turnkey framing contractor said in the document, submitted Aug. 28, that its operating loss totaled $5.7 million. Most of the rest of what figured in its net loss stemmed from nearly $3.5 million in professional fees related to its reorganization under Chapter 11 of the federal bankruptcy code.
The cost of goods sold totaled $53.3 million, giving BMHC a 19.6% gross margin, while selling, general, and administrative costs added up to $13.3 million across BMHC's 12 operating units, or 27.6% of sales. Just over half of the nearly $109 million in accounts receivable are current, the company said, while $14.8 million are past due one to 30 days, $6.2 million are past due 31 to 60 days, $2.4 million are 61 to 90 days overdue, and $24.9 million are more than $90 days past due.
LMC Names New President
John A. Somerville Jr., sales vice president at Dow Building Solutions North America, has been named president and CEO of Lumbermens Merchandising Corp., the $3 billion buying co-op for 350 LBM companies with 1,200 facilities nationwide. Somerville was to take on his new duties Oct. 1.
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Counting Cars, Counting Pros A Los Angeles-based dealer keeps track of business activity at a nearby Home Depot by having an employee count the number of cars in The Home Depot's parking lot at the same time each week. If the number goes down, he has an inkling that The Home Depot isn't doing as well.