BMC Stock Holdings reported record net income and adjusted EBITDA during the fiscal second quarter of 2020. BMC reported second quarter net income of $43.6 million, a 22.2% increase from the fiscal second quarter of 2019. Additionally, net sales at the pro dealer increased 3.5% on a year-over-year (YOY) basis to $979.9 million during the quarter, according to the company’s earnings report.
BMC said net sales growth was primarily driven by growth from acquisitions of 4.3% YOY, and 2.0% YOY growth as a result of price inflation. The growth was partially offset by a decrease from other organic sales declines due to the impact of the coronavirus (COVID-19) pandemic and a closed location.
The Raleigh, N.C.-based dealer reported gross profit increased 2.9% on a YOY basis to $252.8 million. The company’s gross margin decreased 20 basis points from the prior year period to 25.8%. The decline in gross margin was driven by a decrease in the gross margin in the lumber and lumber sheet goods and structural components product categories, which benefited from unusually high commodity price-related gross margins during the prior year period.
“Our record second-quarter results exceeded our expectations and were driven by the steadfast execution of our strategy, accelerated productivity, and structural cost savings across our business, coupled with a strong pipeline of construction activity,” Dave Flitman, president and CEO of BMC, said in a news release. “These strong results are a testament to the determination of our associates, who remain focused on growing our business and providing outstanding customer service despite their personal sacrifice in this unprecedented environment.”
BMC’s adjusted EBITDA for the second quarter 2as $90.3 million, a 23.2% increase from adjusted EBITDA in the fiscal second quarter of 2019. The company’s adjusted EBITDA margin was a record 9.2%, up 150 basis points on a YOY basis.
“We are pleased that our team’s efforts enabled us to generate strong net sales growth in millwork, doors and windsor, and our pro remodel and multi-family segments, as well as outperform the market in single-family starts which resulted in record net income, adjusted EBITDA, and adjusted EBITDA margin in the quarter,” Flitman said.
The pro dealer also provided a COVID-19 business update in its earnings report. BMC formed a cross-function task force in mid-March which continues to meet daily to ensure the company is responding with the development of the necessary processes, protocols, training, and communications related to its COVID-19 response.
“Our top priority remains keeping our associates, suppliers, and customers safe as the pandemic evolves,” Flitman said. “We continue to take any and all necessary steps to protect our team while simultaneously growing our value-added products, which remain in high demand from our customers.”
