Net sales increased 24.8% on a year-over-year basis to $230.4 million in the fiscal fourth quarter for Huttig Building Products, according to the company’s quarterly earnings report. For the full fiscal year, sales increased 18.4% compared to 2020 to $937.8 million.
Huttig attributed the YOY increase in sales in the fourth quarter to a continued strong residential construction market, along with an inflationary environment elevated by demand-driven pricing with higher input costs, which are reflective of challenges the supply chain and labor markets experienced throughout 2021. The distributor reported sales increased in three product classifications during the fourth quarter.
Millwork sales increased 27.7% YOY in the fourth quarter to $112.8 million, benefitting from improved market pricing. Huttig said demand for value-added millwork products exceeded supply, creating an input-constrained ability to produce. Building product sales for Huttig increased 21.1% YOY in the fourth quarter to $100.4 million, driven by high levels of demand for certain product lines within the category, including Huttig Grip fasteners. Wood product sales in the quarter increased 28.4% compared to the prior-year period to $17.2 million.
For the full fiscal year, Huttig said sales growth, while moderated by restructuring activities, was driven by an improved residential construction market and by growth in certain strategic product categories. Millwork sales for the full fiscal year increased 15.5% compared to 2020, wood products sales increased 38.0% YOY, and building product sales increased 18.2% compared to 2020.
“I am extremely proud of our 2021 performance and record results,” Jon Vrabely, president and CEO of Huttig, said in a prepared statement. “We generated adjusted EBITDA of $55.1 million, despite the impact from an $18.3 million LIFO charge. The continued execution of our business plan and the dedication of our associates to serve our customers have largely contributed to our success in sustainably changing our financial model.”
Gross margin in the fourth quarter for Huttig was $50.2 million, compared to $37.1 million from the same period a year ago. As a percentage of net sales, gross margin was 21.8% in the fourth quarter, an improvement of 170 basis points on a YOY basis. Huttig said the margin improvement reflects the favorable impact of the company’s focus on higher-margin sales opportunities, as well as effective pricing management.
For the full fiscal year, gross margin increased 30.5% to $208.0 million in 2021. Gross margin as a percentage of net sales increased from 20.1% in 2020 to 22.2% in 2021.
Huttig uses the last-in, first-out (LIFO) inventory valuation method to value inventories. In the fourth quarter of 2021, this resulted in gross margins that were $7.3 million lower, than if the company did not use the LIFO method. For the full fiscal year, gross margins were $18.3 million lower using LIFO than if the company did not use the LIFO inventory valuation method.
Huttig reported a net income of $7.4 million for the fiscal fourth quarter of 2021, compared to a net income of $0.3 million in the prior-year period. The company reported an adjusted EBITDA of $9.7 million in the fourth quarter, compared to $2.4 million from the fourth quarter of 2020.
For the full fiscal year, the distributor reported a net income of $49.1 million, compared to a net loss of $0.9 million in 2020. Adjusted EBITDA for the fiscal year 2021 was $55.1 million, compared to $20.1 million in 2020.
St. Louis-based Huttig is a distributor of millwork, building materials, and wood products. The company distributes its products through 25 distribution centers serving 41 states. The company’s distribution centers sell principally to building materials dealers, national buying groups, home centers, and industrial users.
