Stock Monitor: Quanex Building Products Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 18, 2017 / Active-Investors free earnings report on BMC Stock Holdings, Inc. (NASDAQ: BMCH) ("BMC") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=BMCH. BMC reported its third quarter fiscal 2017 operating results on November 06, 2017. The building materials company's sales grew 7.3% on a y-o-y basis. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Quanex Building Products Corporation (NYSE: NX), which also belongs to the Industrial Goods sector as the Company BMC Stock Holdings. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, BMC Stock Holdings most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=BMCH

Earnings Highlights and Summary

For the three months ended September 30, 2017, BMC's net sales increased 7.3% to $881.01 million compared to $821.20 million in Q3 2016. The Company's revenue numbers fell short of analysts' estimates of $889.5 million.

BMC estimated that net sales increased 4.5% from lumber and sheet goods commodity price inflation, 2.3% from recent acquisitions and 0.5% from increased volumes. BMC's increase in sales volume was negatively impacted by one less selling day during the reported quarter compared to Q3 2016, resulting in a 1.6% impact to net sales. Additionally, the impact of Hurricanes Harvey and Irma is estimated to have decreased net sales by $12.0 million to $15.0 million during the reported quarter.

During Q3 2017, BMC's gross profit grew 3.2% to $209.5 million on a y-o-y basis. The Company's gross margin was 23.8% for the reported quarter compared to 24.7% for the year ago comparable period. BMC's Q3 2017 gross margin reflected an approximately 50 basis point decline in gross margin within the lumber and lumber sheet goods product category, and a higher percentage of total net sales being derived from the lumber and lumber sheet goods product category, which realized lower than Company average gross margins.

For Q3 2017, BMC's selling, general, and administrative (SG&A) expenses increased 5.8% to $158.2 million, primarily related to incremental expenses from acquired operations, expense related to pending litigation and an increase in health care costs. The Company's SG&A expenses as a percent of net sales improved to 18.0% in the reported quarter compared to 18.2% for the prior year's same quarter.

BMC's net income increased to $18.44 million, or $0.27 per diluted share, in Q3 2017 compared to $9.24 million or $0.14 per diluted share in Q3 2016, which included a pre-tax loss on debt extinguishment of $12.5 million. The Company's adjusted net income jumped 8% to $23.0 million, or $0.34 per diluted share, in the reported quarter compared to adjusted net income of $21.3 million, or $0.32 per diluted share, in the year-ago period, and came in ahead of Wall Street's estimates of $0.33 per share.

For Q3 2017, BMC's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew 1.9% to $59.3 million on a y-o-y basis. The Company's adjusted EBITDA margin declined 40 basis points to 6.7%.

Segment Results

For Q3 2017, BMC's Building products sales totaled $671.32 million compared to sales of $613.76 million in Q3 2016. The Company's Construction services sales totaled $209.70 million in the reported quarter versus sales of $207.44 million in the year-earlier same quarter.

During Q3 2017, BMC's Ready-Frame, its whole-house framing solution, delivered $47 million in net sales with particularly strong performance in Colorado and the Pacific Northwest, where Ready-Frame is well-known throughout the service area. The Company is forecasting to deliver $150 million to $170 million in total sales from Ready-Frame in 2017 and over $300 million annually by 2020.

Liquidity and Capital Resources

During Q3 2017, BMC's cash provided by operating activities of $37.0 million increased by $12.5 million. The Company's total liquidity as of September 30, 2017, was approximately $268.5 million, which included cash and cash equivalents of $12.1 million and $256.4 million of borrowing availability under the Company's asset-backed revolver. BMC's capital expenditures totaled $16.5 million during the reported quarter, primarily utilized to fund purchases of vehicles and equipment to support increased sales volume and replace aged assets, and facility and technology investments to support the Company's operations. BMC's debt leverage ratio at the end of September 2017 was 2x its trailing 12-month adjusted EBITDA, at the very low-end of the Company's target range of 2x to 3x.

Stock Performance Snapshot

December 15, 2017 - At Friday's closing bell, BMC Stock Holdings' stock advanced 1.52%, ending the trading session at $23.35.

Volume traded for the day: 1.30 million shares, which was above the 3-month average volume of 566.63 thousand shares.

Stock performance in the last month ? up 5.42%; previous three-month period ? up 12.26%; past twelve-month period ? up 21.93%; and year-to-date ? up 19.74%

After last Friday's close, BMC Stock Holdings' market cap was at $1.55 billion.

Price to Earnings (P/E) ratio was at 31.30.

The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry. This sector was up 0.9% at the end of the session.

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