Huttig Building Products, Inc. Announces First Quarter 2014 Results
April 24 2014 - 6:00AM
Marketwired
Huttig Building Products, Inc. Announces First Quarter 2014 Results
Sales Increase 9% in 2014 From 2013
ST. LOUIS, MO--(Marketwired - Apr 24, 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 first
quarter ended March 31, 2014.
Operating Summary
- Net sales in the first quarter 2014 were $135.3 million,
representing a 9% increase over prior year net sales of $124.5
million.
- Net loss from continuing operations was $0.8 million in the
first quarter 2014 compared to a net loss of $2.0 million a year
ago. Net loss, including discontinued operations, was $4.0
million compared to $2.0 million a year ago.
- The Company recorded a $3.1 million charge for environmental
liabilities related to a formerly owned property in Montana. This
charge is reflected in discontinued operations.
- Adjusted EBITDA was $1.0 million in the first quarter 2014
compared to negative $0.5 million a year ago.
- Total available liquidity was $41.9 million at March 31, 2014
compared to $37.7 million a year ago.
"Despite a challenging business environment as a result of the
unusually poor weather in the first quarter, our financial results
from continuing operations continued to improve as we executed on
our strategy of delivering profitable sales growth for our
shareholders," said Jon Vrabely, Huttig's President and CEO. "We
have been, and will continue to reinvest in our business to take
advantage of market opportunities and further strengthen our
financial performance."
Balance Sheet
At March 31, 2014, Huttig had $2.4 million of cash and cash
equivalents plus $39.5 million of excess availability under its
credit facility for total available liquidity of $41.9 million. A
year ago, Huttig had $1.2 million of cash and cash equivalents plus
$36.5 million of excess availability under its credit facility for
total available liquidity of $37.7 million. Total debt was $78.7
million and $72.5 million at March 31, 2014 and 2013,
respectively.
About Huttig
Huttig Building Products, Inc., currently in its 130th year of
business, is one of the largest domestic distributors of millwork,
building materials and wood products used principally in new
residential construction and in home improvement, remodeling and
repair work. Huttig distributes its products through 27
distribution centers serving 41 states. The Company's wholesale
distribution centers sell principally to building materials
dealers, national buying groups, home centers and industrial users,
including makers of manufactured homes.
Forward Looking Statements
This press release contains forward-looking information as
defined by the Private Securities Litigation Reform Act of 1995.
This information presents management's expectations, beliefs, plans
and objectives regarding future financial performance, and
assumptions or judgments concerning such performance. Any
discussions contained in this press release, except to the extent
that they contain historical facts, are forward-looking and
accordingly involve estimates, assumptions, judgments and
uncertainties. There are known and unknown factors that could cause
actual results or outcomes to differ materially from those
addressed in the forward-looking information. Such known factors
are detailed in the Company's Annual Report on Form 10-K for the
year ended December 31, 2013 filed with the Securities and Exchange
Commission and in other reports filed by the Company with the
Securities and Exchange Commission from time to time.
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SUMMARY OF FIRST QUARTER RESULTS |
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($ in millions, except per share data) |
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(unaudited) |
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Three Months Ended March 31, |
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2014 |
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|
2013 |
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Net sales |
|
$ |
135.3 |
|
|
100.0 |
% |
|
$ |
124.5 |
|
|
100.0 |
% |
Gross margin |
|
$ |
26.5 |
|
|
19.6 |
% |
|
$ |
23.1 |
|
|
18.6 |
% |
Operating expenses |
|
$ |
26.7 |
|
|
19.7 |
% |
|
$ |
24.5 |
|
|
19.7 |
% |
Operating loss |
|
$ |
(0.2 |
) |
|
-0.1 |
% |
|
$ |
(1.4 |
) |
|
-1.1 |
% |
Net loss from continuing operations |
|
$ |
(0.8 |
) |
|
-0.6 |
% |
|
$ |
(2.0 |
) |
|
-1.6 |
% |
Net loss from continuing operations per share - |
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basic
and diluted |
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$ |
(0.03 |
) |
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$ |
(0.09 |
) |
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Cash used by operating activities |
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$ |
(13.7 |
) |
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$ |
(12.5 |
) |
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HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In millions, except per share data) |
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(unaudited) |
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Three Months Ended |
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March 31, |
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2014 |
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|
2013 |
|
Net sales |
|
$ |
135.3 |
|
|
$ |
124.5 |
|
Cost of sales |
|
|
108.8 |
|
|
|
101.4 |
|
|
Gross
margin |
|
|
26.5 |
|
|
|
23.1 |
|
Operating expenses |
|
|
26.7 |
|
|
|
24.5 |
|
|
Operating loss |
|
|
(0.2 |
) |
|
|
(1.4 |
) |
Interest expense, net |
|
|
0.6 |
|
|
|
0.6 |
|
Loss from continuing operations before income
taxes |
|
|
(0.8 |
) |
|
|
(2.0 |
) |
Provision for income taxes |
|
|
- |
|
|
|
- |
|
Net loss from continuing operations |
|
|
(0.8 |
) |
|
|
(2.0 |
) |
Net loss from discontinued operations, net of
taxes |
|
|
(3.2 |
) |
|
|
- |
|
Net loss |
|
$ |
(4.0 |
) |
|
$ |
(2.0 |
) |
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|
|
|
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Net loss from continuing operations per share - basic
and diluted |
|
$ |
(0.03 |
) |
|
$ |
(0.09 |
) |
Net loss from discontinued operations per share - basic
and diluted |
|
|
(0.14 |
) |
|
|
- |
|
Net loss per share - basic and diluted |
|
$ |
(0.17 |
) |
|
$ |
(0.09 |
) |
|
|
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Weighted average shares outstanding: |
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|
|
|
|
|
|
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Basic
shares outstanding |
|
|
23.3 |
|
|
|
22.6 |
|
|
Diluted shares outstanding |
|
|
23.3 |
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22.6 |
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HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
CONSOLIDATED BALANCE SHEETS |
(In millions) |
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March 31, |
2014 |
|
2013 |
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ASSETS |
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CURRENT ASSETS: |
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Cash and equivalents |
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$ |
2.4 |
|
$ |
1.2 |
|
Trade accounts receivable, net |
|
|
60.2 |
|
|
54.6 |
|
Inventories |
|
|
75.1 |
|
|
64.1 |
|
Other current assets |
|
|
6.1 |
|
|
9.6 |
|
|
Total
current assets |
|
|
143.8 |
|
|
129.5 |
|
|
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PROPERTY, PLANT AND EQUIPMENT |
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Land |
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|
4.3 |
|
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4.3 |
|
Building and improvements |
|
|
24.2 |
|
|
23.7 |
|
Machinery and equipment |
|
|
34.6 |
|
|
32.0 |
|
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Gross
property, plant and equipment |
|
|
63.1 |
|
|
60.0 |
|
Less accumulated depreciation |
|
|
46.8 |
|
|
44.2 |
|
|
Property, plant and equipment, net |
|
|
16.3 |
|
|
15.8 |
|
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OTHER ASSETS: |
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Goodwill |
|
|
6.3 |
|
|
6.3 |
|
Other |
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|
1.8 |
|
|
2.1 |
|
Deferred income taxes |
|
|
7.9 |
|
|
7.4 |
|
|
Total
other assets |
|
|
16.0 |
|
|
15.8 |
TOTAL ASSETS |
|
$ |
176.1 |
|
$ |
161.1 |
|
|
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|
|
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
|
CONSOLIDATED BALANCE SHEETS |
|
(In millions, except share data) |
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|
March 31, |
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2014 |
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|
2013 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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CURRENT LIABILITIES: |
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Current maturities of long-term debt |
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$ |
0.8 |
|
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$ |
0.4 |
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Trade accounts payable |
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|
52.6 |
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43.7 |
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Deferred income taxes |
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|
7.9 |
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|
7.4 |
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Accrued compensation |
|
|
4.0 |
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4.4 |
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Other accrued liabilities |
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|
10.2 |
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|
14.4 |
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Total
current liabilities |
|
|
75.5 |
|
|
|
70.3 |
|
NON-CURRENT LIABILITIES: |
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|
|
|
|
|
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|
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Long-term debt, less current maturities |
|
|
77.9 |
|
|
|
72.1 |
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|
Other non-current liabilities |
|
|
4.3 |
|
|
|
1.8 |
|
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|
Total
non-current liabilities |
|
|
82.2 |
|
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|
73.9 |
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SHAREHOLDERS' EQUITY |
|
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Preferred shares; $.01 par (5,000,000 shares
authorized) |
|
|
- |
|
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|
- |
|
|
Common shares; $.01 par (50,000,000 shares authorized:
24,578,066 and 24,324,025 shares issued at March 31, 2014 and March
31, 2013, respectively) |
|
|
0.2 |
|
|
|
0.2 |
|
|
Additional paid-in capital |
|
|
39.3 |
|
|
|
39.1 |
|
|
Accumulated deficit |
|
|
(21.1 |
) |
|
|
(22.4 |
) |
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|
Total
shareholders' equity |
|
|
18.4 |
|
|
|
16.9 |
|
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$ |
176.1 |
|
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$ |
161.1 |
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HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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( In millions) |
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(unaudited) |
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Three Months Ended |
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March 31, |
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|
2014 |
|
|
2013 |
|
Cash Flows From Operating Activities: |
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|
|
|
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|
Net loss |
|
$ |
(4.0 |
) |
|
$ |
(2.0 |
) |
|
Adjustments to reconcile net loss to net cash used in
operating activities: |
|
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|
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|
|
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|
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Net loss from discontinued operations |
|
|
3.2 |
|
|
|
- |
|
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Depreciation and amortization |
|
|
0.9 |
|
|
|
0.7 |
|
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|
Stock-based compensation |
|
|
0.3 |
|
|
|
0.2 |
|
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Changes in operating assets and liabilities: |
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|
|
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|
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Trade accounts receivable |
|
|
(15.9 |
) |
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|
(12.5 |
) |
|
|
|
Inventories |
|
|
(8.4 |
) |
|
|
(9.1 |
) |
|
|
|
Trade accounts payable |
|
|
11.8 |
|
|
|
12.1 |
|
|
|
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Other |
|
|
(1.6 |
) |
|
|
(1.9 |
) |
|
|
Total cash used in operating activities |
|
|
(13.7 |
) |
|
|
(12.5 |
) |
Cash Flows From Investing Activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(0.3 |
) |
|
|
(0.8 |
) |
|
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Total cash used in investing activities |
|
|
(0.3 |
) |
|
|
(0.8 |
) |
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
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Borrowings of debt, net |
|
|
16.6 |
|
|
|
12.6 |
|
|
Repurchase shares of common stock |
|
|
(0.8 |
) |
|
|
(0.4 |
) |
|
|
Total cash provided by financing activities |
|
|
15.8 |
|
|
|
12.2 |
|
Net increase (decrease) in cash and equivalents |
|
|
1.8 |
|
|
|
(1.1 |
) |
Cash and equivalents, beginning of period |
|
|
0.6 |
|
|
|
2.3 |
|
Cash and equivalents, end of period |
|
$ |
2.4 |
|
|
$ |
1.2 |
|
|
|
|
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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):
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HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY |
|
CONDENSED CONSOLIDATED ADJUSTED EBITDA |
|
(unaudited) |
|
(In Millions) |
|
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Three Months Ended |
|
|
|
March 31, |
|
|
|
2014 |
|
|
2013 |
|
Net
loss |
|
$ |
(4.0 |
) |
|
$ |
(2.0 |
) |
Discountinued Operations |
|
|
3.2 |
|
|
|
- |
|
Interest expense, net |
|
|
0.6 |
|
|
|
0.6 |
|
Provision for income taxes |
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
0.9 |
|
|
|
0.7 |
|
Stock
compensation expense |
|
|
0.3 |
|
|
|
0.2 |
|
Adjusted EBITDA |
|
$ |
1.0 |
|
|
$ |
(0.5 |
) |
For more information, contact: Don Hake investor@huttig.com
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