Net sales increased 15.3% on a year-over-year (YOY) basis in the third quarter of 2021 to $245.3 million for Huttig Building Products. Net income for the distributor also increased YOY in the third quarter, growing from $6.1 million in 2020 to $18.7 million in 2021, according to Huttig’s quarterly earnings report.
“Despite the continued challenging business environment related to severe supply chain disruption and a lack of available labor, our organization pulled together once again to generate another quarter of strong financial results,” Jon Vrabely, president and CEO of Huttig, said in a prepared statement. “Our strong performance in the quarter, and on a year-to-date basis, are a direct result of the fortitude and dedication of our associates, and the actions we have taken over the past two years to meaningfully and sustainably improve our financial model.”
The increase in net sales for Huttig was primarily attributable to an increase in residential construction activity compared to the COVID-19-impacted third quarter of 2020, according to Huttig. Sales were also favorably impacted by an improved pricing environment where demand-driven pricing was pronounced due to higher input costs, including labor and materials, caused by supply chain disruption. Huttig said YOY sales growth was moderated by the company’s planned restructuring activities and by its 2020 product rationalization program.
Millwork sales for Huttig increased 16.4% YOY to $105.7 million in the third quarter of 2021. Huttig said the product category has been “significantly impacted” by supply chain disruption and by 2020 restructuring and product rationalization activities. Millwork has been subject to multiple price increases since the third quarter of 2020.
Building product sales increased 12.7% YOY to $119.6 million, positively impacted by consistent high levels of demand and by price increases for certain product lines within the category. Wood product sales increased 26.6% YOY, benefited by higher market prices on a YOY basis in the category.
Huttig reported its gross margin increased from $42.7 million in the third quarter of 2020 to $56.8 million in the third quarter of 2021. As a percentage of net sales, gross margin increased significantly from 20.1% to 23.2%. The distributor said gross margins were favorably impacted by Huttig’s focus on non-commoditized, strategic product lines that carry higher margins, as well as effective pricing management.
The company’s adjusted EBITDA for the third quarter was $17.5 million, compared to $8.5 million for the prior-year period.
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.
