Stock points to positives in Q3
Fresh after completing its initial public offering on Aug. 14, Raleigh, N.C.-based Stock Building Supply posted mixed results for the third quarter. The pro dealer reported a net loss of $5.5 million in the third quarter ended Sept. 30. However, sales were up 28.4% to $328.5 million, compared with $255.8 million in the same period last year.
Now traded on the Nasdaq market under the ticker symbol STCK, Stock’s IPO yielded approximately $46.8 million of proceeds that were used to repay borrowings under the company's revolver.
The company’s net loss included $9.3 million of IPO transaction-related costs, compared with net income of $0.04 million in the prior-year period. In the third quarter of 2012, stock earned $40,000.
For the nine months, Stock’s net income loss narrowed to $7.59 million, compared with a net loss of $10.76 million in the same nine-month period of 2012.
"In the third quarter, our business performance continued its positive trend of strong revenue growth and increases in adjusted EBITDA,” said CEO Jeff Rea in a prepared statement. “Additionally we completed our transition to a public company with a successful IPO on Aug. 14, which helped improve our liquidity and strengthen our balance sheet. We believe our growth rate continues to outperform our industry benchmarks as revenues from new single-family construction increased approximately 31%, while repair and remodel revenues increased 28% compared with third quarter 2012."
The company reported a significant reduction in debt -- from $116.6 million at the beginning of the quarter to $57.2 million as of Sept. 30. “We believe our current capital structure will allow us to make the required investments in our business to support our anticipated future growth," said Jim Major, executive VP and CFO.