Continued strength in the residential construction market contributed to positive results for Huttig Building Products in the first quarter of 2021, including net sales of $214.7 million in the quarter. The net sales posted during the first quarter represented an increase of $11.7 million, or 5.8%, from the sales posted during the first quarter of 2020, according to the distributor’s quarterly earnings report.
Huttig said its income growth in the first quarter was moderated in comparison to the prior-year period because of restructuring activities and the company’s 2020 product rationalization program. The St. Louis-based distributor also said it continued to experience supply chain disruption across several key product categories during the quarter, which mitigated revenue growth. Despite these headwinds, sales were favorably impacted by pricing for certain products within Huttig’s portfolio.
Huttig’s millwork sales in the first quarter remained stagnant at $96.2 million when compared to the first quarter of 2020. Huttig said millwork products were the product category most impacted by supply chain disruption and the category was also impacted by the company’s restructuring and product rationalization activities. Building product sales increased 10.0% year-over-year (YOY) in the first quarter of 2021 to $101.9 million, benefiting from high levels of demand. Wood product sales increased 16.9% YOY to $16.6 million during the first quarter.
Huttig’s restructuring activities in the second half of 2020 included the closure of two branches and a strengthened focus on core and strategic products.
“The continued execution of our strategy combined with strong demand in residential construction resulted in substantial gains in our first quarter operating results,” Jon Vrabely, president and CEO of Huttig, said in a prepared statement. “Our focus on profitable sales growth of our strategic product categories and disciplined management of the expense structure contributed to record first quarter operating results as a public company.”
Huttig reported a gross margin of $45.7 million in the first quarter of 2020, compared to $40.9 million the prior-year period. As a percentage of sales, gross margin was 21.3% in the quarter, an increase of 80 basis points YOY. Huttig said its gross margin was favorably impacted by its focus on non-commoditized strategic product lines with higher margins as well as improved pricing management. Huttig said the gross margin percentage from refocusing efforts were “more pronounced” due to the “disproportionate” increase in direct sales in the first quarter of 2021 compared to 2020.
The distributor reported a net income of $8.1 million for the first quarter of 2021, compared to a net loss of $8.9 million in the first quarter of 2020. Adjusted EBITDA in the quarter was $10.5 million, compared to $3.5 million in 2020.
Huttig Building Products is a domestic distributor of millwork, building materials and wood products used in residential construction and in-home improvement, remodeling, and repair work. The company distributes its products through 25 distribution centers serving 41 states.
