BMC Stock Holdings, Inc. (BMCH) Misses Q1 EPS by 2c

BMC Stock Holdings, Inc. (NASDAQ: BMCH) reported Q1 EPS of $0.11, $0.02 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $757.7 million versus the consensus estimate of $742.36 million.

• Net sales of $757.7 million, an increase of 4.2%, including accelerating growth in March
• Ready-Frame® sales of $34.1 million, an increase of 68%
• Net income of $3.7 million, an increase of $10.5 million
• Adjusted EBITDA (non-GAAP) of $33.6 million, a decrease of $0.1 million
• Diluted earnings per share of $0.06, an increase of $0.16 per share
• Adjusted net income per diluted share (non-GAAP) of $0.11, an increase of $0.03 per share
• Successfully completed two acquisitions (including one in April), enhancing the Company’s footprint and value-added capabilities in the Washington, DC and Dallas/Fort Worth markets
• Reaffirmed expectation of total annual run rate cost savings from the merger of $46 million to $52 million by the end of 2017

Peter Alexander, President and Chief Executive Officer of BMC, commented, “The solid fundamentals supporting an improving housing market, combined with our internal growth initiatives aimed at growing our higher-margin categories, should enable us to deliver notable profit growth for 2017. As has been widely reported, however, unusually high levels of precipitation in certain of our western markets delayed construction and curtailed our rate of growth at the start of the year. During the first quarter, net sales increased 4.2%, but encouragingly accelerated as the quarter concluded, as March sales grew more than 9% and that higher growth rate continued in April.”

Jim Major, Executive Vice President and Chief Financial Officer of BMC, added, “Lumber and sheet goods costs rose sharply during the first quarter and again in April. While we expect rising commodity costs to result in higher net sales and gross profit dollars in future months, such rapid and extensive moves in product costs minimized our ability to achieve more meaningful gross margin percentage improvements in the first quarter. Rising commodity costs may continue to constrain incremental EBITDA margins in the second quarter as increased selling prices have not yet been fully absorbed into the market. As a result, we are redoubling our efforts to drive improved operating expense leverage over the balance of 2017.”

For earnings history and earnings-related data on BMC Stock Holdings, Inc. (BMCH) click here.

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