BMC Stock Holdings benefited from higher lumber prices, its acquisition of Shone Lumber, and even state and local tax incentives to more than double its net profit to $27.7 million in the second quarter from $15.1 million in the year-earlier period. Sales jumped 12.6% to $998.5 million, the company announced today.

Just under two-thirds of the sales growth came from increased prices for lumber and sheet goods. Another 2.3 points of the increase was credited to Shone, a three-unit, $70 million, Delaware-based dealer that BMC took over in February. Organic growth contributed 2.4 points of the 12.6% gain.

The gross profit of $239.6 million—a 13.2% increase—boosted gross margin to 24.0% of sales from 23.9% in the April-to-June 2017 quarter.

Slide from BMC presentation to analysts July 30, 2018
BMC presentation to analysts, 7/30/18

Atlanta-based BMC likes to measure itself through adjusted EBITDA—earnings before interest, taxes, depreciation, amortization, merger and integration costs, non-cash stock compensation expense, acquisition costs, and other items. By that metric, adjusted EBITDA climbed 32.3% to $78.8 million. That works out to 7.9% of net sales, up from 6.7% a year before. Adjusted net income nearly doubled to $43.4 million from $23.0 million.

June's close of the second quarter marked BMC's fifth month since president and CEO Peter Alexander departed and David Keltner took over as interim chief. The company is still looking for a permanent leader, BMC said in a news release, and in the meantime "is aggressively moving forward with the execution of its growth strategies."

Operating income shot up 71.4% to $55.7 million. Nearly a quarter of that $23.2 million gain was from the near-elimination merger costs related to BMC's takeover of Stock Building Supply several years ago.

Below the operating line, BMC picked up three times as many benefits from state and local tax incentives—$2.9 million worth vs. $1 million a year ago.

Slide from BMC presentation to analysts 7/30/18
BMC presentation to analysts, 7/30/18

Following up on its news release, BMC used its conference call with analysts to tout a new truss plant in Cumming, Ga., that it opened earlier this year. The automated plant uses 33% fewer people than traditional truss operations, it says, while production per assembly line is 50% higher.

The company's balance sheet shows that goodwill accounted for $264.3 million of the company's $1.62 billion in assets as of June 30. Meanwhile, the liabilities side includes $345 million in long-term debt.

Sales of lumber and sheet goods rose 36.9% in the quarter from the year-earlier period to total $368.1 million. Sales of structural components, including BMC's Ready-Frame system, increased 16.8% to $167.6 million. Millwork, door, and window sales grew 25.0% to $249.2 million, while other products and services gained 21.3% to $213.5 million.