RALEIGH, NC -- Stock Building Supply Holdings, Inc., a large, diversified lumber and building materials distributor and solutions provider that sells primarily to new construction and repair and remodeling contractors, reported net income of $2.0 million on sales of $314.7 million. Sales for the period were up 27.7% from the same period a year earlier.
"During the second quarter we capitalized on improving trends in the housing industry and continued to successfully execute our business strategy," stated Jeff Rea, Chief Executive Officer of Stock Building Supply. "Our strong results are a reflection of the continued improvements we've made in our customer service and our efficiency in executing on our customers' needs. We estimate our second quarter net sales to single-family homebuilders increased 40.0% compared to the second quarter of 2012. This compares favorably to the 15.2% increase in U.S. single-family housing starts over the same period. We also delivered solid growth in sales to professional repair and remodeling contractors, with second quarter net sales increasing approximately 12.0% compared to the second quarter of 2012."
Commenting on the second quarter results, Jim Major, Executive Vice President and Chief Financial Officer added, "We successfully leveraged our cost structure to deliver increased profitability along with increased sales. For the second quarter of 2013, our selling, general and administrative expenses decreased to 20.8% of sales compared to 22.2% for the second quarter of 2012. Our recent amendment to our credit agreement and the use of proceeds from our initial public offering to reduce debt will lower our cash interest expense and result in improved liquidity to fund growth opportunities that arise from the continuing housing market recovery."