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Posted March 7, 2018

Huttig Building Products announces Q4 and full year 2017 results

Company sees net sales of $179.2 million in Q4 and $753.2 million for 2017.


Huttig Building Products, Inc. (“Huttig” or the “Company”) (NASDAQ: HBP), a leading domestic distributor of millwork, building materials and wood products, has reported financial results for the fourth quarter and year ended December 31, 2017.

“We continued to make significant investments in our infrastructure, people, and technology platform during the fourth quarter as we remained committed to the implementation of our strategic plan,” said Jon Vrabely, Huttig’s President and CEO.

“While these investments have negatively impacted our financial results in 2017, including the most recent quarter, we continue to believe that the investments made in operating expenses and capital will accelerate our growth and diversify our business, which will improve operating leverage and increase the value of the company over the intermediate term.”

Fourth Quarter 2017 Compared to Fourth Quarter 2016

Net sales from continuing operations were $179.2 million for the fourth quarter 2017, which were $14.8 million, or approximately 9%, higher than the fourth quarter 2016. The increase was primarily due to higher levels of construction activity and the expansion of the Huttig-Grip product line.

Sales in the major product categories changed as follows in 2017 from 2016: millwork sales increased 2% to $92.8 million, building product sales increased 16% to $69.6 million primarily due to the expansion of the Huttig-Grip product line, and wood product sales increased 29% to $16.8 million. 

Gross margin increased approximately 3% to $36.8 million, or 20.5% of net sales, in the fourth quarter 2017 compared to $35.6 million, or 21.7% of net sales, in the fourth quarter 2016. The decrease in gross margin percentage was primarily due to higher production costs associated with our millwork products as well as a higher proportion of direct sales in our overall mix.

Fiscal 2017 Compared to Fiscal 2016

Net sales from continuing operations were $753.2 million in 2017, which were $39.3 million, or approximately 6%, higher than 2016. The increase was primarily due to higher levels of construction activity, the expansion of the Huttig-Grip product line and a full year’s results from the acquisition of BenBilt, which was completed on April 4, 2016.

Sales in the major product categories changed as follows in 2017 from 2016: millwork sales increased 5% to $381.4 million, building product sales increased 7% to $299.0 million, and wood product sales increased 2% to $72.8 million primarily due to increased construction activity and the BenBilt acquisition. 

Gross margin increased approximately 3% to $155.8 million, or 20.7% of net sales, in 2017 as compared to $151.2 million, or 21.2% of net sales, in 2016. The decrease in gross margin percentage was primarily due to higher production costs associated with our millwork products as well as a higher proportion of direct sales in our overall mix.

Huttig, currently in its 134th year of business, is one of the largest domestic distributors of millwork, building materials and wood products used principally in new residential construction and in-home improvement, remodeling and repair work. Huttig distributes its products through 27 distribution centers serving 41 states. Huttig's wholesale distribution centers sell principally to building materials dealers, national buying groups, home centers and industrial users, including makers of manufactured homes.

Learn more at www.huttig.com

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