BMC Stock Holdings, Inc. (BMCH) Tops Q4 EPS by 19c, Revenues Beat

BMC Stock Holdings, Inc. (NASDAQ: BMCH) reported Q4 EPS of $0.48, $0.19 better than the analyst estimate of $0.29. Revenue for the quarter came in at $859 million versus the consensus estimate of $855.13 million.

• Net sales of $859.5 million, an increase of 2.2%
• Gross profit as a percent of sales (“gross margin”) of 26.7%, an increase of 340 basis points
• Net income of $28.1 million, an increase of $10.5 million, or 59.4%
• Adjusted EBITDA (non-GAAP) of $65.5 million, an increase of $17.9 million, or 37.7%
• Adjusted EBITDA margin (non-GAAP) of 7.6%, an increase of 190 basis points
• Diluted earnings per share of $0.41, an increase of $0.15 per share
• Adjusted net income per diluted share (non-GAAP) of $0.48, an increase of $0.25 per share
• Cash provided by operating activities of $99.4 million, an increase of $53.6 million

“2018 marked a year of record results in which our team accelerated momentum across all areas of our business,” said Dave Flitman, President and CEO of BMC. “We drove net income, diluted earnings per share, adjusted net income per diluted share and adjusted EBITDA significantly higher on a year-over-year basis while we expanded Adjusted EBITDA margin 130 basis points to 7.2%. In addition, we delivered valuable improvements in both safety and customer service. Our team launched a first-of-its-kind innovation in truss manufacturing and announced the planned addition of more of these automated truss lines in the coming months. I’d like to take this opportunity to thank all of our employees for their hard work that resulted in such remarkable performance in 2018.”

Jim Major, Executive Vice President and CFO of BMC, added, “I would like to add my congratulations to the BMC team for delivering a very strong level of performance for 2018. In particular, our sales and sourcing teams did an outstanding job navigating a volatile commodity environment, including a sharp correction in the second half of the year. During the fourth quarter, we realized an extraordinary improvement in gross margins of over 500 basis points within our lumber and lumber sheet goods and structural components categories, which resulted from a significant decline in the cost of lumber and lumber sheet goods after hitting multi-year highs in June.”

Flitman continued, “As we entered 2019, we continued to drive our objective to pursue strategic expansions. We began the year by significantly improving our position in the Charlotte, North Carolina market with the acquisitions of Barefoot & Company and Locust Lumber. We were pleased to complete these transactions, and we will continue to look for opportunities to enhance our customer mix, bolster our capabilities and/or capacity in value-added products and improve our presence in key markets. Looking ahead to the remainder of this year, I am confident in our ability to build upon our success in 2018. We will continue our focus on delivering superior levels of customer service and the utilization of what we believe are industry-leading eBusiness tools to more effectively serve the needs of builders and contractors.”

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

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