Stock Building Supply posted an operating income of $8.4 million in 3Q 2014, an improvement over its operating loss of $2.9 million last year. The company also grew its net sales to $354.1 million, up 7.8% from $328.5 million in the third quarter, 2013.

The company, which ranked ninth on the 2014 ProSales 100 list, increased its gross margin percentage for the quarter to 23.8%, up from from 22.9% one year ago. The increase was driven by improved gross margins on sales of structural components and lumber and lumber sheet goods as well as increases in supplier consideration due to higher purchase volumes.

"In the third quarter, we reported year-over-year financial improvement, reflecting the continued execution of our core strategies designed to grow our business profitably," said Stock CEO Jeff Rea. "Our year-over-year sales volume growth of approximately 8% and gross profit growth of 12% in the third quarter continue to compare favorably to U.S. single-family housing starts, which increased less than 4% for the nine months ended September 30, 2014," he added.

In August, the company outlined its growth strategy and predicted "significant white space for profitable growth" in months ahead partly due to a projected increase in housing starts.

"While the U.S. housing market has been slower than anticipated so far in 2014, our service professionals have once again delivered solid operating result improvements," said Rea. "We anticipate a continued, gradual recovery in the housing market from today's levels and remain focused on both near-term and longer-term value creation activities. Additionally, we are maintaining the pace of investment in our strategic service and growth initiatives which we expect will enhance the strength of our business moving forward."