Huttig Building Products, Inc. Announces Fourth Quarter and Full Year 2013 Results
February 20 2014 - 2:00AM
Marketwired
Huttig Building Products, Inc. Announces Fourth Quarter and Full
Year 2013 Results
Huttig Returns to Net Profitability in 2013
ST. LOUIS, MO--(Marketwired - Feb 20, 2014) - Huttig Building
Products, Inc. (Huttig, or the Company) (NASDAQ: HBP), a leading
domestic distributor of millwork, building materials and wood
products, today reported financial results for the fourth quarter
and year ended December 31, 2013.
Fourth Quarter and Full Year Highlights
- Net sales in the fourth quarter 2013 were $134.8 million,
representing a 7% increase over prior year net sales of $125.6
million. Full year 2013 net sales were $561.5 million, representing
an 8% increase over prior year net sales of $521.1 million.
- Net loss from continuing operations was $0.4 million in the
fourth quarter 2013 compared to a net loss of $2.7 million in the
prior year which included a goodwill impairment charge of $1.9
million. Full year 2013 net income from continuing operations was
$3.6 million compared to a net loss of $0.1 million in the prior
year which included a $2.4 million gain on disposal of capital
assets and a $1.9 million goodwill impairment charge.
- Adjusted EBITDA was $1.3 million in the fourth quarter 2013
compared to $0.8 million in the prior year. Full year Adjusted
EBITDA was $10.4 million compared to $6.2 million in the prior
year.
- Total available liquidity was $41.8 million at December 31,
2013 compared to $26.6 million a year ago.
"We continued to show year over year financial improvement in
2013. We are pleased to report our eleventh consecutive quarterly
improvement in net income, excluding special significant items. In
addition, our liquidity position has strengthened through our
operating results," said Jon Vrabely, Huttig's President and CEO.
"In December our stock began trading on the NASDAQ which represents
another milestone for Huttig and its shareholders. Our focus
remains on executing our business strategy of delivering profitable
sales growth and strong financial results for our
stakeholders."
Balance Sheet
At December 31, 2013, Huttig had $0.6 million of cash and cash
equivalents plus $41.2 million of excess availability under its
credit facility for total available liquidity of $41.8 million. A
year ago, Huttig had $2.3 million of cash and cash equivalents plus
$24.3 million of excess availability under its credit facility for
total available liquidity of $26.6 million. Total debt was $62.0
million and $59.8 million at December 31, 2013 and 2012,
respectively.
More detailed information about Huttig's financial results for
the year ended December 31, 2013 is included in Huttig's Annual
Report on Form 10-K, which was filed on February 20,
2014.
About Huttig
Huttig Building Products, Inc., currently in its 129th year of
business, is one of the largest domestic distributors of millwork,
building materials and wood products used principally in new
residential construction and in home improvement, remodeling and
repair work. Huttig distributes its products through 27
distribution centers serving 41 states. The Company's wholesale
distribution centers sell principally to building materials
dealers, national buying groups, home centers and industrial users,
including makers of manufactured homes.
Forward Looking Statements
This press release contains forward-looking information as
defined by the Private Securities Litigation Reform Act of 1995.
This information presents management's expectations, beliefs, plans
and objectives regarding future financial performance, and
assumptions or judgments concerning such performance. Any
discussions contained in this press release, except to the extent
that they contain historical facts, are forward-looking and
accordingly involve estimates, assumptions, judgments and
uncertainties. There are known and unknown factors that could cause
actual results or outcomes to differ materially from those
addressed in the forward-looking information. Such known factors
are detailed in the Company's Annual Report on Form 10-K for the
year ended December 31, 2013 filed with the Securities and Exchange
Commission and in other reports filed by the Company with the
Securities and Exchange Commission from time to time.
|
|
SUMMARY OF FOURTH QUARTER AND FULL YEAR 2013
RESULTS |
($ in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
Three Months Ended December 31, |
|
2013 |
|
2012 |
Net
sales |
$ |
134.8 |
|
|
100.0% |
|
$ |
125.6 |
|
|
100.0% |
Gross
margin |
$ |
27.4 |
|
|
20.3% |
|
$ |
24.4 |
|
|
19.4% |
Operating expenses |
$ |
27.1 |
|
|
20.1% |
|
$ |
24.5 |
|
|
19.5% |
Goodwill impairment |
$ |
- |
|
|
- |
|
$ |
1.9 |
|
|
1.5% |
Operating income (loss) |
$ |
0.3 |
|
|
0.2% |
|
$ |
(2.0 |
) |
|
-1.6% |
Net
(loss) from continuing operations |
$ |
(0.4 |
) |
|
-0.3% |
|
$ |
(2.7 |
) |
|
-2.1% |
Net
loss from continuing operations per share - basic and diluted |
$ |
(0.02 |
) |
|
|
|
$ |
(0.12 |
) |
|
|
Cash
provided by operating activities |
$ |
0.3 |
|
|
|
|
$ |
7.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Year Ended December 31, |
|
2013 |
|
2012 |
Net
sales |
$ |
561.5 |
|
|
100.0% |
|
$ |
521.1 |
|
|
100.0% |
Gross
margin |
$ |
111.1 |
|
|
19.8% |
|
$ |
100.7 |
|
|
19.3% |
Operating expenses |
$ |
104.8 |
|
|
18.7% |
|
$ |
98.4 |
|
|
18.9% |
Goodwill impairment |
$ |
- |
|
|
- |
|
$ |
1.9 |
|
|
0.4% |
Gain
on disposal of assets |
$ |
- |
|
|
- |
|
$ |
(2.4 |
) |
|
-0.5% |
Operating income |
$ |
6.3 |
|
|
1.1% |
|
$ |
2.8 |
|
|
0.5% |
Net
income (loss) from continuing operations |
$ |
3.6 |
|
|
0.6% |
|
$ |
(0.1 |
) |
|
0.0% |
Net
income from continuing operations per share - basic and
diluted |
$ |
0.15 |
|
|
|
|
$ |
- |
|
|
|
Cash
provided by (used in) operating activities |
$ |
1.2 |
|
|
|
|
$ |
(4.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(In millions, cxcept per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
Net sales |
$ |
134.8 |
|
|
$ |
125.6 |
|
|
$ |
561.5 |
|
|
$ |
521.1 |
|
Cost of sales |
|
107.4 |
|
|
|
101.2 |
|
|
|
450.4 |
|
|
|
420.4 |
|
|
Gross
margin |
|
27.4 |
|
|
|
24.4 |
|
|
|
111.1 |
|
|
|
100.7 |
|
Operating expenses |
|
27.1 |
|
|
|
24.5 |
|
|
|
104.8 |
|
|
|
98.4 |
|
Goodwill impairment |
|
- |
|
|
|
1.9 |
|
|
|
- |
|
|
|
1.9 |
|
Gain on disposal of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2.4 |
) |
|
Operating income (loss) |
|
0.3 |
|
|
|
(2.0 |
) |
|
|
6.3 |
|
|
|
2.8 |
|
Interest expense, net |
|
0.7 |
|
|
|
0.7 |
|
|
|
2.6 |
|
|
|
2.9 |
|
Income (loss) from continuing operations before income
taxes |
|
(0.4 |
) |
|
|
(2.7 |
) |
|
|
3.7 |
|
|
|
(0.1 |
) |
Provision for income taxes |
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
- |
|
Net income (loss) from continuing operations |
|
(0.4 |
) |
|
|
(2.7 |
) |
|
|
3.6 |
|
|
|
(0.1 |
) |
Net loss from discontinued operations, net of
taxes |
|
- |
|
|
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
Net income (loss) |
$ |
(0.4 |
) |
|
$ |
(2.8 |
) |
|
$ |
3.2 |
|
|
$ |
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations per share - basic
and diluted |
$ |
(0.02 |
) |
|
$ |
(0.12 |
) |
|
$ |
0.15 |
|
|
$ |
- |
|
Net loss from discontinued operations per share - basic
and diluted |
|
- |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
Net income per share - basic and diluted |
$ |
(0.02 |
) |
|
$ |
(0.13 |
) |
|
$ |
0.13 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
shares outstanding |
|
22.9 |
|
|
|
22.9 |
|
|
|
22.8 |
|
|
|
22.9 |
|
|
Diluted shares outstanding |
|
22.9 |
|
|
|
22.9 |
|
|
|
22.8 |
|
|
|
22.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
CONSOLIDATED BALANCE SHEETS |
(In millions) |
|
|
|
|
|
December 31, |
2013 |
|
2012 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash and equivalents |
$ |
0.6 |
|
$ |
2.3 |
|
Trade accounts receivable, net |
|
43.8 |
|
|
41.7 |
|
Inventories |
|
66.7 |
|
|
55.0 |
|
Other current assets |
|
7.2 |
|
|
7.3 |
|
|
Total
current assets |
|
118.3 |
|
|
106.3 |
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
|
|
Land |
|
4.3 |
|
|
4.3 |
|
Building and improvements |
|
24.2 |
|
|
23.8 |
|
Machinery and equipment |
|
34.2 |
|
|
31.2 |
|
|
Gross
property, plant and equipment |
|
62.7 |
|
|
59.3 |
|
Less accumulated depreciation |
|
46.1 |
|
|
43.7 |
|
|
Property, plant and equipment, net |
|
16.6 |
|
|
15.6 |
|
|
|
|
|
|
OTHER ASSETS: |
|
|
|
|
|
|
Goodwill |
|
6.3 |
|
|
6.3 |
|
Other |
|
1.9 |
|
|
2.2 |
|
Deferred income taxes |
|
7.9 |
|
|
7.1 |
|
|
Total
other assets |
|
16.1 |
|
|
15.6 |
TOTAL ASSETS |
$ |
151.0 |
|
$ |
137.5 |
|
|
|
|
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
|
CONSOLIDATED BALANCE SHEETS |
|
(In millions, except share data) |
|
|
|
|
|
|
|
|
December 31, |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
$ |
1.2 |
|
|
$ |
0.6 |
|
|
Trade accounts payable |
|
40.3 |
|
|
|
31.2 |
|
|
Deferred income taxes |
|
7.9 |
|
|
|
7.1 |
|
|
Accrued compensation |
|
3.5 |
|
|
|
4.1 |
|
|
Other accrued liabilities |
|
13.1 |
|
|
|
14.3 |
|
|
|
Total
current liabilities |
|
66.0 |
|
|
|
57.3 |
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Long-term debt, less current maturities |
|
60.8 |
|
|
|
59.2 |
|
|
Other non-current liabilities |
|
1.3 |
|
|
|
1.9 |
|
|
|
Total
non-current liabilities |
|
62.1 |
|
|
|
61.1 |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Preferred shares; $.01 par (5,000,000 shares
authorized) |
|
- |
|
|
|
- |
|
|
Common shares; $.01 par (50,000,000 shares authorized:
24,317,192 and 23,920,195 shares issued at December 31, 2013, and
December 31, 2012, respectively) |
|
0.2 |
|
|
|
0.2 |
|
|
Additional paid-in capital |
|
39.8 |
|
|
|
39.2 |
|
|
Accumulated deficit |
|
(17.1 |
) |
|
|
(20.3 |
) |
|
|
Total
shareholders' equity |
|
22.9 |
|
|
|
19.1 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
151.0 |
|
|
$ |
137.5 |
|
|
|
|
|
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
Cash Flows From Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(0.4 |
) |
|
$ |
(2.8 |
) |
|
$ |
3.2 |
|
|
$ |
(0.5 |
) |
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from discontinued operations |
|
- |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
Depreciation and amortization |
|
0.8 |
|
|
|
0.7 |
|
|
|
3.1 |
|
|
|
3.1 |
|
|
|
Stock-based compensation |
|
0.2 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
|
0.8 |
|
|
|
Goodwill impairment |
|
- |
|
|
|
1.9 |
|
|
|
- |
|
|
|
1.9 |
|
|
|
Gain on disposal of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2.4 |
) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
accounts receivable |
|
16.5 |
|
|
|
15.8 |
|
|
|
(2.1 |
) |
|
|
(2.3 |
) |
|
|
|
Inventories |
|
(5.4 |
) |
|
|
1.5 |
|
|
|
(11.7 |
) |
|
|
(10.2 |
) |
|
|
|
Trade
accounts payable |
|
(10.3 |
) |
|
|
(9.5 |
) |
|
|
9.1 |
|
|
|
2.9 |
|
|
|
|
Other |
|
(1.1 |
) |
|
|
(0.8 |
) |
|
|
(1.8 |
) |
|
|
2.0 |
|
|
|
Total cash provided by (used in) operating
activities |
|
0.3 |
|
|
|
7.1 |
|
|
|
1.2 |
|
|
|
(4.3 |
) |
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(0.7 |
) |
|
|
(0.4 |
) |
|
|
(2.2 |
) |
|
|
(1.9 |
) |
|
Proceeds from disposition of capital assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3.3 |
|
|
|
Total cash (used in) provided by investing
activities |
|
(0.7 |
) |
|
|
(0.4 |
) |
|
|
(2.2 |
) |
|
|
1.4 |
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings (payments) of debt, net |
|
(2.0 |
) |
|
|
(6.5 |
) |
|
|
(0.3 |
) |
|
|
3.4 |
|
|
Repurchase shares of common stock |
|
- |
|
|
|
1.1 |
|
|
|
(0.4 |
) |
|
|
1.1 |
|
|
|
Total cash (used in) provided by financing
activities |
|
(2.0 |
) |
|
|
(5.4 |
) |
|
|
(0.7 |
) |
|
|
4.5 |
|
Net increase (decrease) in cash and equivalents |
|
(2.4 |
) |
|
|
1.3 |
|
|
|
(1.7 |
) |
|
|
1.6 |
|
Cash and equivalents, beginning of period |
|
3.0 |
|
|
|
1.0 |
|
|
|
2.3 |
|
|
|
0.7 |
|
Cash and equivalents, end of period |
$ |
0.6 |
|
|
$ |
2.3 |
|
|
$ |
0.6 |
|
|
$ |
2.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Measures
The Company's definition of Adjusted EBITDA is net income (loss)
adjusted for interest, income taxes, depreciation and amortization
and other special significant items as listed in the table
below.
We present Adjusted EBITDA because it is a primary measure used
by management, and in our industry, to evaluate operating
performance and enhances investors' overall understanding of the
financial performance of our business. Adjusted EBITDA is not
a recognized term under GAAP and does not purport to be an
alternative to net income (loss) as a measure of operating
performance. We compensate for the limitations of using
non-GAAP financial measures by using them to supplement GAAP
results to provide a more complete understanding of the factors
affecting the business other than GAAP results alone. Because
not all companies use identical calculations, our presentation of
Adjusted EBITDA may not be comparable to other similarly titled
measures of other companies.
Adjusted EBITDA
The following table presents a reconciliation of net income
(loss), the most directly comparable financial measure under U.S.
GAAP, to Adjusted EBITDA for the periods presented (amounts in
millions):
|
|
|
|
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
|
CONDENSED CONSOLIDATED ADJUSTED EBITDA |
|
(unaudited) |
|
(In Millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
2012 |
|
Net
income (loss) |
$ |
(0.4 |
) |
|
$ |
(2.8 |
) |
|
$ |
3.2 |
|
$ |
(0.5 |
) |
Discountinued Operations |
|
- |
|
|
|
0.1 |
|
|
|
0.4 |
|
|
0.4 |
|
Interest expense, net |
|
0.7 |
|
|
|
0.7 |
|
|
|
2.6 |
|
|
2.9 |
|
Provision for income taxes |
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
- |
|
Depreciation and amortization |
|
0.8 |
|
|
|
0.7 |
|
|
|
3.1 |
|
|
3.1 |
|
Stock
compensation expense |
|
0.2 |
|
|
|
0.2 |
|
|
|
1.0 |
|
|
0.8 |
|
Goodwill impairment |
|
- |
|
|
|
1.9 |
|
|
|
- |
|
|
1.9 |
|
Gain
on disposal of assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
(2.4 |
) |
Adjusted EBITDA |
$ |
1.3 |
|
|
$ |
0.8 |
|
|
$ |
10.4 |
|
$ |
6.2 |
|
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Contact Info: Don Hake investor@huttig.com
Huttig Building Products (NASDAQ:HBP)
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