BMC Stock Holdings, corporate parent of the nation's second-biggest full-service lumberyard, reported today its net income doubled to $18.4 million in the third-quarter from a year-earlier $9.2 million on a 7.3% increase in net sales to $881 million.

Operating income actually dipped 1.2% to $33.3 million. The big change in net income stemmed largely from the fact that the company incurred a $12.5 million loss last year on extinguishment of debt but didn't report any such action this year.

Higher prices for lumber and sheet goods contributed 4.5 points of the 7.3-point sales gain, while recent acquisitions boosted sales another 2.3 points, the Atlanta-based dealer said. Increased volumes provided the final half-point. Sales would have looked 1.6 points better, BMC added, were it not for the fact that this year's third quarter had one fewer sales day than last year's July-to-October period.

Gross profit increased 3.2% to $209.5 million for a margin of 23.8%, down from 2016's margin of 24.7%. Roughly 50 of the 90-basis-point decline was linked to reduced gross margins from the purchase of lumber and sheet goods. Net profit as a percent of sales rose to 2.1% from 1.1%.

The impact of the higher lumber prices was evident in the company's breakdown of net sales and cost of sales. The number of dollars taken in from sales of building products jumped 9.4% to $671.3 million, but the cost of sales grew 7.1% to $172.3 million. Drilling down even further, sales of lumber and sheet goods climbed 18.4% to $294.7 million. Sales of structural component--such as trusses, which also are affected by wide prices-- shot up 17.5% to $145.2 million. Millwork, door, and window sales declined 2.8% to $225.8 million, and sales of other products and services slipped 0.5% to 215.3 million.

Meanwhile, sales of construction services rose just 1.1%, to $209.7 million, while the cost of selling those services was virtually unchanged at $172.3 million.

BMC prefers to measure itself in terms of adjusted EBITDA, which it defines as net income plus interest expense, income tax expense, depreciation and amortization, merger and integration costs, non-cash stock compensation expense, impairment of assets, acquisition costs, loss on debt extinguishment, inventory step-up charges and other items. By that metric, adjusted EBITDA grew to $59.3 million from $58.2 million, but its adjusted EBITDA margin dropped to 6.7% from 7.1%.

“Our team delivered a year-over-year top-line increase of 8.9% per day, as well as growth in net income, adjusted EBITDA and operating cash flow for the quarter," President and CEO Peter Alexander said. "We are pleased with our team’s ongoing execution and ability to deliver this solid performance despite the short-term impacts of Hurricanes Harvey and Irma on our Houston and Georgia operations.'

The company's balance sheet shows that goodwill accounts for $262 million of the company's $1.52 billion in assets, while on the liabilities side the company has $396.2 million in long-term debt.

BMC ranks fourth on the latest ProSales 100, trailing only ABC Supply, Builders First Source, and Beacon Roofing Supply. It had 147 locations as of Jan. 1 in the South and West.