BMHC Reports $66 M Loss
8.15.08 Building Materials Holding Corporation last evening, after the market closed, reported sales for the second quarter of 2008 decreased 41 percent to $385 million from $656 million in the same quarter a year ago. For the six months ended June 30, 2008, sales decreased 38 percent to $728 million from $1.2 billion in the year-ago period.
Net loss for the second quarter of 2008 was $31.9 million or $1.10 per share compared to net income of $19.4 million or $0.66 per share in the same quarter a year ago. For the six months ended June 30, 2008, net loss was $65.8 million or $2.27 per share compared to net income of $14.5 million or $0.49 per share in the same period of 2007.
The full financial release is here.
True Value Sales Down 4%
8.14.08 True Value Company has reported revenue of $571.3 million for the quarter ending June 28, 2008, a decrease of 3.9 percent or $23.1 million from $594.4 million for the same period a year ago. Comp store sales to core hardware store outlets were down 3.7 percent in the quarter.
For the six months ending June 28, 2008, True Value reported revenue of $1.036 billion, a decrease of 4.3 percent or $46.7 million from $1.083 billion for the same period a year ago. Comp store sales to core hardware store outlets were down 3.5 percent in the six-month period.
The full press release is here.
Ace Q2 Income Up 13%
8.13.08 Ace Hardware this week announced second quarter net income increased 13.2 percent over last year to $33.4 million. Total revenues for the quarter fell 2.7 percent to $1.067 billion.
For the first six months of the year, net income was $44.2 million, up $0.6 million over 2007. Total revenues for the first half ended June 30, 2008 fell 4.8 percent to $1.939 billion.
The full financial report is here.
BMHC Obtains Temporary Waiver on Credit Facility
8.11.08 Building Materials Holding Corporation (BMHC) has announced that it has obtained a temporary waiver of certain conditions to borrowing under its credit facility. The waiver allows the Company to borrow up to $60 million, through September 30th, while it works to finalize a permanent amendment to the credit facility.
The Company said it expects to reach agreement with its lenders on the amendment in a timely manner and that its business operations will not be affected.
The full press release is here.
PRO Group Names Director of Merchandising
8.11.08 PRO Group, Inc. has promoted Brendan Sullivan to director of merchandising, a new position. Sullivan is a 21-year, industry veteran having served in various merchandising and business development positions for SERVISTAR/COAST TO COAST and True Value prior to joining PRO Group in 2005 as managing director for the FARM MART Group.
PRO Group managing director for the PRO Hardware and GardenMaster divisions, Shari Kalbach, is now also managing director for the FARM MART Group.
The full press release is here.
BMHC Closing All SelectBuild Florida Operations
8.5.08 Building Materials Holding Corporation has announced that it will discontinue operations at its wholly-owned subsidiary SelectBuild Florida over the next four months.
"In light of the challenging homebuilding environment, we recognize the need to realign our business across the country to reflect local conditions," said Stanley M. Wilson, President and Chief Operating Officer. "The closure of the SelectBuild Florida facilities is in direct response to the challenging business environment in Florida. The Florida market has weakened considerably and we anticipate it will be some time before improvement is seen. Housing starts in the Florida market have dropped from a peak of 265,000 in 2005 to only 99,000 in 2007 and an estimated 61,000 in 2008."
The full press release is here.
Builders Firstource Reports Q2 Loss of $46 Million
8.1.08
Builders FirstSource, Inc. today reported a net loss of $45.9 million,
or ($1.29) per diluted share, on sales of $307.3 million for the second
quarter ended June 30, 2008. These results compare to net income of
$8.4 million, or $0.23 per diluted share on sales of $465.1 million for
the second quarter ended June 30, 2007.
The full financial report is here.
BMHC Out of Compliance with Credit Facility
7.30.08 Building Materials Holding Corporation has announced that, based on preliminary evaluation of financial information for its second quarter ended June 30, 2008, it was out of compliance with financial covenants contained in the Company's credit facility relating to minimum net worth and minimum earnings before interest, taxes, depreciation and amortization. Failure to comply with these covenants constitutes an event of default under the credit facility.
BMHC has been discussing with its lenders a temporary waiver of these covenants, in order to preserve access to liquidity under the credit facility.
As of July 28, 2008, there was $29 million outstanding on a revolving loan and $340 million outstanding on a term loan.
The full announcement from BMHC is here.
BlueLinx Sales Down 23%
7.30.08 BlueLinx Holdings Inc., a distributor of building products, today reported second-quarter net income totaled $6.6 million, or $0.21 per diluted share, compared with net income of $5.4 million, or $0.18 per diluted share, in the year-ago period. Revenues of $835 million declined 22.9 percent from $1.08 billion for the same period a year ago. The decline in revenue reflects a 26 percent drop in structural product sales and a 20 percent sales decline in specialty product sales from the year ago period.
For the six months ended June 28, 2008, net loss totaled $4.0 million, or $0.13 per diluted share, on revenues of $1.55 billion, compared with net income of $5.2 million, or $0.17 per diluted share, on revenues of $2.04 billion a year ago. The decline in income and revenue was largely due to a decline in volume of 26 percent primarily driven by a decline in housing starts of 30 percent from the prior year to date period partially offset by increases in underlying product prices.
"While we are pleased with our results, we expect the current housing market downturn to continue through 2009," said Howard Cohen, Chairman and Interim CEO. "We remain focused on managing cash flow by tightly managing inventories, receivables and our operating expenses. BlueLinx is financially positioned to be able to continue executing throughout this housing downturn. We generated $52 million in cash flow from operating activities during the second quarter and ended the period with $271 million in excess borrowing availability on our revolving credit facility," Cohen added.
BlueLinx financial releases are here.
BlueLinx Issues Earnings Estimate, Shares Soar
7.22.08 BlueLinx Holdings Inc. (NYSE:BXC), a distributor of building products in North America, last Wednesday was the biggest percentage gainer on the New York Stock Exchange (climbing from around $3.30/share to $5.00/share) when it issued a press release stating it “expects to report second-quarter earnings per diluted share in the range of $0.18 to $0.24 on revenue of approximately $835 million based on a preliminary review of the Company's unaudited results for the second quarter ended June 28, 2008. Gross profit margin for the quarter is expected to be approximately 12.9 percent, compared with 11.0 percent for the same period a year ago when the Company reported net income of $0.18 per diluted share on revenue of $1.08 billion.”
The company will report second quarter earnings on July 30.
The full press release is here.
Orgill Building New DC
7.21.08 Orgill, Inc., has announced plans to build a warehouse and distribution center in Sikeston, Missouri. The new center will replace and consolidate current Orgill facilities in Memphis, Tennessee, and Vandalia, Illinois. Construction on Orgill’s “Mid-America SuperCenter” is scheduled to begin next month, and is expected to be completed in August, 2009.
The full press release is here.
Norandex Relocates Corporate Headquarters
7.17.08 Norandex Building Materials Distribution, one of the largest distributors of exterior siding, windows, and doors in the United States, has completed the relocation of its corporate offices from Macedonia, Ohio to a newer and larger facility in nearby Hudson, Ohio.
Norandex President and CEO Brian Chambers said “the move is another important step in implementing the company's aggressive growth strategy. Despite current market conditions, we are actively seeking new opportunities to extend our geographic reach, expand our product lines, and effectively grow our business."
Fastenal Sales +16% to $1.17B, Earnings +26% to $144.3M
7.11.08 The Fastenal Company today reported net sales for the three-month period ended June 30, 2008 totaled $604.219 million, an increase of 16.3 percent over net sales of $519.706 million in the second quarter of 2007. Net earnings increased from $60.256 million in the second quarter of 2007 to $76.166 million in the second quarter of 2008, an increase of 26.4 percent. Basic and diluted earnings per share increased from $.40 to $.51 for the comparable periods.
Net sales for the six-month period ended June 30, 2008 totaled $1.170 billion, an increase of 16.0 percent over net sales of $1.009 billion in the first six months of 2007. Net earnings increased from $114.289 million in the first six months of 2007 to $144.260 million in the first six months of 2008, an increase of 26.2 percent. Basic and diluted earnings per share increased from $.76 to $.97 for the comparable periods.
Fastenal financial reports are here.
PRO Names Retailer of the Year
7.11.08 PRO Hardware has named Poultry Electric PRO Hardware of Winchester, Tenn. the winner of the 2008 Paul L. Cosgrave Memorial Award. Poultry Electric is also the 2007 PRO Hardware Retailer of the Year for Wallace Hardware Company.
“Owned by Dale and Thelma Goodwin, Poultry Electric PRO Hardware is thriving amid a changing market in rural Winchester, Tenn. The store is one of a few hardware stores in the country that have successfully integrated poultry supplies,” according to a press release.
The Paul L. Cosgrave Memorial Award, presented annually to a PRO Hardware retailer, recognizes superior commitment to the principles and ideals of effective hardware merchandising developed by PRO Hardware founder Paul L. Cosgrave.
Buyers & Sellers Meet at Group Merchandising Conference
7.7.08 Home improvement industry distributors from PRO Group and Val-Test Distributors met in late June at the Embassy Suites Hotel in downtown Atlanta for the 2008 Group Merchandising Conference.
The meeting format features scheduled buyer/vendor appointments in private suites throughout the hotel. This year’s two-day event allowed for approximately 890 30-minute meetings involving 38 distributor buyers and 95 vendor representatives.
The full press release on the event is here.
C.H. Briggs CEO Nominated for Entrepreneur Award
6.13.08 Julia H. Klein, CEO of C.H. Briggs Company, the largest independently owned distributor of specialty building products in the country, has been named a finalist in the Ernst & Young 2008 Entrepreneur of The Year awards for Greater Philadelphia. Ms. Klein was honored with the “Women Who Are Changing America” award in 2005 by the Women’s Business Enterprise Council.
Ms. Klein is a board member of the National Association of Wholesaler-Distributors Research and Education Foundation and is a member of the Young Presidents Organization.
The full press release is here.
Grainger May Sales Up 7%
6.13.08 Grainger today reported sales results for the month of May 2008. Daily sales grew 7 percent versus May 2007 including a 1 percentage point benefit from foreign currency primarily due to the Canadian dollar. Daily sales were negatively affected by approximately 1 percentage point due to a decline in the sales of seasonal products. There was one less selling day in May 2008 (21) versus May 2007 (22).
The full press release is here.
Fastenal May Sales +11%
6.9.08 Fastenal Company has reported net sales for the month of May increased 10.7 percent to $197.1 million from $178.1 million in the year-ago period.
During the month, the company opened 21 new locations.
Fastenal financial releases are here.
Ace Hardware Q1 Sales -7.2%
5.30.08 Ace Hardware Corporation this week reported net income of $10.8 million for the first quarter of 2008, a decrease of $3.3 million compared to $14.1 million for the first quarter of 2007.
Total revenues for the first quarter of 2008 decreased $67.8 million, or 7.2 percent, to $872.1 million. Total continuing merchandise sales in the first quarter of 2008 declined 6.4 percent while retail service revenues declined 13.1 percent.
Merchandise sales to comparable domestic stores in the first quarter of 2008 accounted for $72.9 million of the sales decline. However, merchandise sales to net domestic stores opened in the 2007 and 2008 fiscal year periods contributed $10.9 million in incremental sales. Ace added 27 new stores and cancelled 41 stores in the first quarter, which brought the company’s total store count to 4,616 at the end of the first quarter in 2008 as compared to 4,630 at the end of fiscal year 2007.
“Our first quarter revenues were challenged by a very difficult environment overall at retail and a delay in the transition to spring weather in many parts of the country,” said Ace President and Chief Executive Officer Ray A. Griffith. “We are hopeful that the current economic stimulus efforts will boost consumer confidence and drive improved selling conditions at retail.”
Merchandise sales from Ace’s international business continued to be strong and contributed $7.8 million in incremental sales, up 22.4 percent over 2007, driven by increased sales to existing stores in the Middle East, sales to new stores in the Caribbean and sales growth from foreign-to-foreign wholesale operations located in Shanghai, China.
Ace financial reports are here.
Wolseley Profits Down 23%, Group Focusing on Cost Cuts
5.21.08 Wolseley plc, the world's largest specialist trade distributor of plumbing and heating products to professional contractors and a leading supplier of building materials, today issued its Interim Management Statement for the Group's third quarter and for the nine months ended April 30, 2008.
“The Group continues to focus on cost reduction and cash flow enhancement. Since April 30, 2008, further cost reduction decisions have been taken which will result in one-off costs of around 50 million pounds to be incurred in the fourth quarter. These cost reduction actions and other business improvement initiatives are expected to result in annualized savings of around 70 million pounds. These actions include the closure of 75 branches and headcount reductions of 200 at Ferguson and the closure or consolidation of 15 locations in Canada, with an associated headcount reduction of around 50 people. Further cost reduction and business improvement actions will be taken in North America and Europe before July 31, 2008 and further details will be provided in future announcements,” The company said in a press release.
The full release is here:
http://www.wolseley.com/MediaCentre/media_435.asp
BMHC Closing Two California Distribution Facilities
5.16.08 Building Materials Holding Corporation today announced that its wholly-owned subsidiary BMC West will close its millwork and building materials distribution facilities in Merced and Bakersfield, California. Both markets will continue to be served from nearby BMC West operations in Modesto and Fresno and the existing sales force will remain in place. The closures will affect approximately 30 employees and are expected to be completed within the next sixty days.
The announcement comes two days after the company announced the closing of its framing and concrete operations in Tucson, Arizona.
The full press release is here.
BMHC Reports $34 Million Loss for First Quarter
5.13.08 Building Materials Holding Corporation has reported sales for the first quarter of 2008 decreased 37 percent to $355 million from $559 million in the same quarter a year ago.
Net loss for the first quarter of 2008 increased to $33.9 million or $1.17 per share from a net loss of $5.0 million or $0.17 per share in the same quarter a year ago.
The full financial report is here.
BMHC Plans to Unify BMC West and SelectBuild
5.12.08 Building Materials Holding Corporation today announced plans to unify and streamline its BMC West and SelectBuild operations. Aggregate annual SG&A expense reductions from the plan are estimated to be in the range of $20 million to $25 million.
"We are conducting a comprehensive analysis of our business and developing an initial plan for improved profitability and cash flow to right-size the organization to reflect today's homebuilding market," said Robert E. Mellor, Chairman and Chief Executive Officer. "While there are considerable external pressures on the markets we serve, our Board and management team are committed to making internal changes designed to minimize the impact of the downturn.”
The full press release is here:
Builders FirstSource Reports Q1 Loss of $15.8 Million
4.25.08 Builders FirstSource, Inc. has reported a net loss of $15.8 million on sales of $270.5 million for the first quarter ended March 31, 2008. These results compare to net income of $0.2 million on sales of $411.1 million for the first quarter ended March 31, 2007. Sales dropped 34 percent due to the slowdown in the housing market, according to the company.
Builders FirstSource financial releases are here.
Ace Reports 2007 Revenues Up
4.22.08 Despite the decline in the U.S. housing market and overall economy, Ace Hardware Corporation reported wholesale revenues of $3.97 billion for the year ending December 29, 2007, which was a $39.4 million, or 1.0 percent increase, over the $3.93 billion in wholesale revenues from the comparable period in 2006.
Ace reported net income of $86.9 million for full year 2007, which was down from record net income of $94.5 million generated in 2006.
Huttig Reports $10M Q1 Loss
4.18.08 Huttig Building Products, Inc., a leading domestic distributor of millwork, building materials and wood products, yesterday announced results for the first quarter ended March 31, 2008.
The Company reported a net loss of $9.8 million for the 2008 first quarter, compared to a net loss of $3.4 million in the year-ago quarter. Net sales declined 25 percent to $166.8 million, compared to $222.4 million in the year ago period. The operating loss was $13.3 million compared to $3.8 million in the prior year quarter.
First quarter 2008 results include a non-cash goodwill impairment charge to operating expenses of $7.0 million before tax, or $0.24 per share net of tax, reflective of a further decline in actual and forecasted operating results at certain of the Company's branch operating units.
The full financial report is here.
PRO Names Synnott CEO
4.9.08 The PRO Group, Inc. Board of Directors has elected Steve Synnott President and Chief Executive Officer of PRO Group, Inc., effective May 1, 2008. A 15-year veteran of PRO Group, Synnott previously served as PRO Group’s President and Chief Operating Officer.
Richard Paige, formerly Chief Executive Officer, was elected Chairman of the Board of PRO Group, also effective May 1, 2008.
Paige stated, “The promotion of Steve to CEO is a key element of PRO Group’s management succession plan put into place two years ago. Steve has long-standing experience with wholesaler and retailer operations as well as wholesaler group dynamics. He is committed to deliver value to PRO Group Members. As CEO, Steve will be responsible for the strategic direction of PRO Group as well as the day-to-day operations.”
Synnott commented, “I am excited to continue a tradition initiated by PRO Group founder, Paul Cosgrave, in the early 1950s. PRO Group remains dedicated to the success of independent retailers offering leading-edge marketing, merchandising and promotional resources”.
Huttig Signs Distribution Deal with Railing Dynamics
4.3.03 Huttig Building Products, Inc. and Railing Dynamics, Inc. (RDI) have announced a strategic alliance agreement under which Huttig will distribute RDI branded products nationally. RDI is a manufacture of low-maintenance exterior railing systems. Huttig is one of the largest domestic distributors of millwork, building materials and wood products.
The full press release is here.
HD Supply Waterworks Acquires D&M Fabrication
3.31.08 HD Supply Waterworks, an HD Supply business that distributes a complete line of water, sewer, fire protection and storm drain products to serve the needs of contractors and municipalities in the water, wastewater, storm and fire protection markets, today announced it has finalized the purchase of D&M Fabrication, Inc. D&M Fabrication, Inc., located in Lodi, Calif., specializes in fabricating fire protection systems for distributors and contractors, who design, sell and/or install systems for end users. Terms of the sale were not disclosed.
"D&M Fabrication has an exceptional, best-in-class reputation for high-quality fabricated fire protection systems and has been a partner of HD Supply Waterworks for nearly a decade," said HD Supply Waterworks Regional Vice President, Chuck Reed. "This acquisition is extremely important for us because it will solidify our ability to provide value-added services to our customers through fabrication capabilities in Northern California," Reed said in a press release.
Wolseley H1 Profits Down 23%
3.19.08 Wolseley plc, the world’s largest distributor of plumbing and heating products to professional contractors and a leading supplier of building materials in North America, has reported first fiscal half 2008 profits down 23.1 percent to 300 million British pounds from 390 million pounds in the year-ago period. Total revenue for the half increased 2 percent to £8.029 billion.
Chip Hornsby, Wolseley plc Group CEO, said: “The first half results reflect creditable performance in most of our major markets against the background of increasingly challenging conditions. We are confident in the long term fundamentals of our markets and will emerge from this current downturn as a stronger organization with an excellent platform for future growth.”
The full report is here.
BMHC Reports $313M Loss
3.7.08 Building Materials Holding Corporation has reported sales for the fourth quarter of 2007 decreased 30 percent to $419 million from $597 million in the same quarter a year ago. For the year, sales decreased 29 percent to $2.3 billion from $3.2 billion in 2006.
Net loss for the fourth quarter of 2007 was $331.3 million compared to net income of $4.5 million a year ago.
Net loss for the year was $312.7 million compared to net income of $102.1 million in 2006.
The full press release is here.
ACE Names CFO
3.7.08 Ace Hardware Corporation has named Dorvin D. Lively chief financial officer, effective March 20, 2008.
Lively, 49, will oversee all financial-related activities of the company, including treasury, retailer financial services, general and operational accounting, budgeting and forecasting, tax, insurance, payroll and audit services.
The full press release is here.
BMHC Suspends Dividend
3.4.08 Building Materials Holding Corp. has announced it has amended its senior secured credit facility, providing for a $200 million revolving credit line maturing in November 2011.
In compliance with the loan agreement, BMHC’s Board has suspended its quarterly cash dividend, allowing the company to save approximately $12 million annually.
The full press release is here.
Ace Restates Financials
2.28.07 Ace Hardware Corporation has posted a press release on its website announcing “that it has successfully restated its previously issued financial statements for the fiscal years ended 2006, 2005 and 2004. The restatement was primarily the result of the discovery of an inventory accounting error, which the company announced in September 2007.”
“The restatement includes the correction of the inventory accounting error which reduced 2006, 2005 and 2004 net earnings by $18.9 million, $19.3 million and $33.5 million, respectively. Additionally, the company also recorded other out of period adjustments and reclassifications in the restatement of its financial statements. Measures are being taken to restore the company’s equity, which include the establishment of variance allocation accounts for Ace’s stockholders, its independent store owners.”
“We anticipate having Ace’s equity restored to previously reported levels within the next two years,” said Ace President and CEO Ray Griffith. “The fact that we identified the discrepancy, conducted a full, third-party investigation that found no fraud, no missing money and no missing inventory, and have issued audited restated financials within a six-month time frame is a testament to our resolve for fixing the issue and moving the company forward.”
A PDF of the full press release is here.
Builders FirstSource Reports $24 Million Loss
2.21.08 Builders FirstSource has reported fourth quarter 2007 sales declined 31 percent to $302.3 million from $438.6 million in the year-ago period. Net loss for the quarter was $20.4 million versus income of $3.9 million in 2006.
For the full 2007 fiscal year, sales declined 29 percent to $1.593 billion compared to $2.395 billion the prior year. Net loss for the year was $23.8 million, compared to a profit of $68.9 million the prior year.
The full financial report is here.
BMHC Names New President
2.20.08 Building Materials Holding Corporation (BMHC) yesterday announced that its Board of Directors has named Stanley M. Wilson President and Chief Operating Officer of BMHC, effective immediately. Both of BMHC's operating companies, BMC West and SelectBuild, will now report to Mr. Wilson, who will continue to report to Robert E. Mellor, Chairman of the Board and Chief Executive Officer.
Mr. Wilson, 63, was elected President and CEO of BMC West in 2004 and was appointed a Senior Vice President in 2003.
The full press release is here.
Builders First Source 4Q Sales Down 36%, Expects Loss
2.11.08 Builders FirstSource, Inc. has announced that its fourth quarter sales declined by 36 percent to approximately $300 million. As a result, the company expects to report a fourth quarter net loss in the range of $0.55 to $0.60 per fully diluted share when it reports after the market closes on February 20, 2008.
Fitch Downgrades BMHC
2.7.08 Fitch Ratings has downgraded the following ratings on Building Materials Holding Corp.:
--Issuer Default Rating (IDR) to 'B+' from 'BB';
--Senior secured debt to 'BB-/RR3' from 'BB+'.
Fitch has also placed BMHC on Rating Watch Negative.
“The downgrade reflects the difficult U.S. housing environment, current and expected negative trends in BMHC's operating results and meaningful deterioration in credit metrics,” according to the report.
Huttig Sales Down 21%, Reports $8 Million Loss
2.6.08 Huttig Building Products last night reported preliminary results for the year ended December 31, 2007. Net sales for the year declined 21 percent to $874.8 million from $1.103 billion in the prior year. Net loss for the year was $8.0 million, compared with a loss of $7.7 million in 2006.
For the fourth quarter, sales declined 22 percent to $179.9 million from $231.1 million in the year-ago period. Net loss for the quarter was $5.8 million, compared with a loss of $4.3 million a year ago.
The full financial report is here.
ProBuild Completes Buy of HD Supply LBM Business
2.5.08 ProBuild Holdings announced yesterday that it has finalized the previously announced purchase of substantially all of the assets of Atlanta-based HD Supply Lumber and Building Materials. Terms of the sale were not disclosed.
“ProBuild is pursuing a strategy of aggressive growth, both organic and via acquisition,” said ProBuild Chief Executive Officer Paul W. Hylbert. “The addition of HD Supply Lumber and Building Materials’ yards and truss plants strengthen our position in very important long-term, high-growth housing markets in the Southeast.”
“HD Supply Lumber and Building Materials currently operates 39 lumberyards in Georgia and Florida, 7 truss plants, a construction services division and 10 engineered lumber production facilities. Although operating under the HD Supply portfolio of businesses, some facilities operate under other brand names, including Williams Bros. Lumber, Cox Lumber and Forest Products Building Materials.”
“The HD Supply Lumber and Building Materials acquisition follows on the heels of very aggressive acquisition activity by ProBuild in the Florida and Georgia Markets. In December, ProBuild acquired Fort Lauderdale-based Rosen Building Supplies as well as Granger Lumber in Jacksonville. Over the past year, ProBuild has completed 11 acquisitions, adding to its national network of distribution and manufacturing facilities,” according to a press release.
The full press release is here:
BMHC in Talks with Lenders
2.4.08 Building Materials Holding today announced that it is in discussions with its lenders regarding a temporary waiver of certain conditions to borrowing under its credit facility as well as a permanent amendment to its syndicated credit facility.
BMHC currently is in the process of finalizing its financial statements for the fourth quarter and full year 2007 and completing its year-end audit. Although these processes have not been finalized, BMHC has been discussing with its lenders a temporary waiver of certain covenants, in order to preserve access to liquidity under the credit facility, and an amendment to the credit facility to better reflect current market conditions.
The full press release is here.
Do it Best Redesigns Website
1.30.08 “The new website boasts a more neutral color palette, less clutter, more functionality, and more effective promotion of products and services,” according to a press release.
“We made the changes to help our member-owned stores meet the needs of their customers,” said Rob Schmelz, e-commerce manager for Do it Best Corp. “Ship-to-Store, for example, is a service we’ve provided for years and now we’ve made it easier for consumers to find and use it on our website.” Schmelz says they’re already seeing a significant increase in customers using that service.
View the new site here.
Huttig to Release Results
1.24.08 Huttig Building Products, Inc. will host a conference call to discuss fourth quarter 2007 financial results on Wednesday, February 6, 2008, at 11 AM Eastern Time. To access the call, dial 888-694-4702 and enter pin number 30146590. A replay will be available through February 20, 2008 by dialing 800-642-1687 and entering the same pin number.
Do it Best Offering Private Label Credit Card
1.14.08 Do it Best Corp. has selected Shoppers Charge Accounts Co. (SCA) to develop and administer a new private label credit card for its dealers throughout the United States.
Builders FirstSource Gets Line of Credit
12.19.07 Builders FirstSource, Inc. yesterday entered into a new $350 million revolving credit facility jointly arranged by Wachovia Capital Markets, LLC and UBS Investment Bank.
"We believe this credit facility further enhances our liquidity and will enable us to better manage our business through the difficult housing environment. Our current borrowing capacity under the agreement is approximately $150 million, which coupled with our cash on hand provides over $250 million of liquidity," said Floyd Sherman, Chief Executive Officer.
The full press release is here.
BMHC Sells Aspen Location
12.18.07 Building Materials Holding Corporation has completed the sale of the real estate used by its former building materials distribution operation in Aspen, Colorado to the City of Aspen. The sale of this property is the final component of the previously announced strategic sale of three retail-oriented business units in Western Colorado. The sale continues BMHC's strategy to focus on professional builders and contractors and to emphasize value-added products and services.
The transaction closed on December 17, 2007. The sale price was $18.25 million and, in conjunction with the sale, BMHC will recognize a gain of approximately $10 million, net of related taxes, for the fourth quarter of 2007.
The full press release is here.
Huttig Closing Two Facilities
12.17.07 Huttig Building Products, Inc. has announced the consolidation and closing of distribution facilities in Greensburg, Pennsylvania and Kansas City, Missouri. The Company will continue to service the Greensburg customer base from adjacent distribution facilities in Columbus, Ohio and Lancaster, Pennsylvania. Likewise, the Company will continue to service a significant portion of the Kansas City customer base from the Company's distribution facility in Springfield, Missouri.
The full press release is here.
Distributor, Vendor Execs Hold Annual Planning Meeting
11.12.07 Distributors representing the Charlotte-based Distribution America and Denver-based PRO Group, Inc. gathered with manufacturers November 7-9 at the Executive Planning Conference (EPC) for nearly 3,500 separate one-on-one meetings.
New products and promotional programs were common themes at the joint event at the Marco Island Marriott in Marco Island, Fla., 
which drew approximately 500 home improvement industry executives. Thirty-two independent distributor companies were represented at the event, along with 150 key manufacturers.
Do it Best Vendors and Retailers Provide Over $200,000 to Habitat for Humanity
11.5.07 At the 2007 Do it Best October MarketSM, the co-op, its members, and its vendors continued their support of Habitat for Humanity with product donations and monetary contributions. At the conclusion of the Market, held in Indianapolis, 18 Habitat for Humanity affiliates from Indiana, Ohio, Michigan and Kentucky received more than $195,000 in product donations from nearly 90 Do it Best Corp. vendors who were given the opportunity to donate all or part of their booth displays
Since its inception in 2004 the co-op’s vendors have now contributed more than $1 million in products to Habitat affiliates.
In addition, the co-op held their third annual “Rental Zone Sunrise Auction” in which gently used products from the rental exhibit area at the Market were auctioned. The results of this year’s auction netted about $10,000 in monetary contributions earmarked for Habitat
BMHC 3Q Sales Down 24%
10.26.07 Building Materials Holding Corporation (NYSE: BLG), a leading provider of construction services and building materials to professional residential builders and contractors, has reported sales for the third quarter of 2007 decreased 24% to $618 million from $818 million in the same quarter a year ago.
For the nine months, sales decreased 28% to $1.9 billion from $2.6 billion in the same period of 2006.
Net income for the third quarter of 2007 decreased to $4.2 million from $35.3 million a year ago. For the nine months ended September 30, 2007, net income decreased to $18.6 million from $97.6 million in the same period of 2006.
Commenting on third quarter results, Robert E. Mellor, Chairman, President and Chief Executive Officer, stated, "Our third quarter results reflect the continued deterioration of the homebuilding market.”
The full financial report is here.
Builders FirstSource Reports Sales Down, 3Q Loss
10.26.07
Builders FirstSource yesterday reported sales declined 27 percent in the third quarter to $413.9 million from $569.9 million last year. Net loss for the quarter was $11.5 million compared to net income of $17.3 million last year.
The full financial report is here.
Do it Best CEO Stresses Commitment to Co-Op Model, Unlike “Others”
10.25.07 During his annual address at the Do it Best October Market, President and CEO Bob Taylor announced the highest rebate in the company’s history ($126.2 million) and said, “while others might look to move away from a co-op structure, we embrace it and see it as the perfect way to align the interests of Do it Best Corp. with those of our members.”
Mr. Taylor went on to say the co-op has “no higher priority than the fiduciary obligation we have to our members...to be good stewards of your investment.”
“A for-profit company cannot provide the same alignment of interest and return on investment,” Taylor said.
The full press release is here.
Do it Best Presents Vendor of the Year Awards
10.25.07 Do it Best Corp. recently presented its Vendor of the Year awards at the co-op’s Member Purchase Awards & Vendor Recognition Breakfast at the 2007 Do it Best October Market™ in Indianapolis, IN.
The Scotts Miracle-Gro Company was selected as the Outstanding Products & Services Vendor of the Year, and GE Lighting received the Overall Sales Growth Vendor of the Year Award. The Sherwin-Williams Company received the Collaborative Forecasting and Replenishment Award.
The following companies were honored as Departmental Vendor of the Year Award winners:
Lumber: Huber Engineered Wood Products
Commodities: G.A.P. Roofing, Inc.
Home Décor – Kitchen & Bath: Team Efforts
Home Décor – Flooring: IVC US
Building Materials: Amerimax
Millwork: Nelson Wood Shims
Home & Hardware: Master Lock
Building Specialties: Custom Building Products
Hand Tools: IRWIN Industrial Tools
Power Tools: Shop-Vac
Plumbing: Moen, Inc.
Heating & Automotive: Cequent Consumer Products
Electrical: GE Lighting
Housewares: Rubbermaid
Outdoor Power Equipment: Black & Decker
Lawn and Garden, Green Goods: Gilmour Group
Fastener, Farm, Ranch & Pet: The Hillman Group
Paint: Cabot
Outdoor Living: MAG Instrument, Inc.
INCOM Distributor Supply™: AO Safety
International: Husqvarna Outdoor Products
Rental: Multiquip, Inc.
HD Supply Names CFO
10.19.07 HD Supply, a distributor of construction and maintenance products, yesterday announced that Mark Jamieson has been appointed Senior Vice President and Chief Financial Officer.
"Mark Jamieson has an impressive record of achievement and leadership spanning over three decades at several highly respected companies," said Joe DeAngelo, Chief Executive Officer of HD Supply.
Mr. Jamieson most recently worked at Ryder Systems, a $6 billion global transportation and supply chain management solutions company, where he served as CFO since 2006. He spent 29 years of his career at General Electric, where he held numerous financial leadership roles, most recently as President and CEO of GE Insurance Company.
Do it Best Reports 2007 Results
9.13.07 Do it Best Corp. today reported that it ended its 2007 fiscal year with a 3.4 percent increase in overall profitability, driven by a 4.4 percent increase in sales through distribution. The co-op also reported they will be returning a record-setting $126.2 million rebate to its member-owners. While unit sales increased over the past fiscal year, an unprecedented deflation in lumber and panel pricing contributed to an 8 percent decrease in gross sales to $2.81 billion, according to the company.
“This year, the Do it Best Corp. team and our member-owners turned in the most positive bottom-line performance in our company’s history,” said Bob Taylor, Do it Best Corp. president and CEO. “What makes this even more impressive is that this was accomplished in the face of a slumping housing market, softness in some regional economies and continued high fuel prices. Once again, our team’s ability to control expenses and increase productivity has been a key factor in controlling overhead and helping us maintain our position as the most efficient co-op in the industry.”
Ace Finds $154 Million Shortfall
9.6.07 Ace Hardware Corporation has announced that it has discovered a $154 million accounting error in the company’s historical financial statements that resulted in an overstatement of gross margin and gross profit. The error, according to the company, appears to have accumulated over a minimum of five years.
As a result of the discovery, Ace has decided it will not immediately pursue its recently announced plans to change from a cooperative to a traditional corporation.
“At this time, we have no reason to believe there are any other significant problems in our financial statements/reporting and have absolutely no indication of theft or missing inventory,” said Ray Griffith, President and CEO.
The full press release on the matter is here.
Ace Hardware Considering Change to “for-Profit” Status
8.31.07 Ace Hardware Corp., according to reports, hopes to convert from a retailer-owned cooperative to a for-profit corporation by early next year.
The move, contingent upon approval by a majority of its retailer-owners, would end the system of returning profits to store owners in the form of dividends, but would keep Ace retailers as sole owners and stockholders of the privately held corporation.
Do it Best Names Markley VP Merchandising
8.17.07 Do it Best Corp. this week named Steve Markley to the position of Vice President – Merchandising, replacing Jay Brown who in July was promoted to VP – Retail Development.
Markley is a nine-year veteran of the member-owned distributor and last year oversaw the opening of buying offices in China and Hong Kong.
Builders FirstSource Acquires Bama Truss
8.2.07 Builders FirstSource, Inc. yesterday announced it has acquired Bama Truss and Components, Inc., an Alabama supplier of wood roof and floor trusses, wood panels, steel roof trusses and various related building materials and services. Bama has annual sales of about $25 million.
Builders FirstSource Sales Decline 28% in Second Quarter
7.30.07 Builders FirstSource, a supplier and manufacturer of structural and building material products for residential construction, reports second quarter sales fell 27.6 percent to $465.1 million.
Net income for the period declined to $8.4 million from last year’s $28.4 million.
BMHC 2Q Sales Off 24%
7.27.07 Building Materials Holding Corporation has reported second quarter 2007 sales of $697 million, a decrease of 24% from $922 million in the same quarter a year ago. For the six months ended June 30, 2007, sales were $1.3 billion, a decrease of 30% from $1.8 billion in 2006.
Net income for the second quarter was $19.4 million or $0.66 per share compared to $34.2 million or $1.16 per share in the same quarter a year ago. The current quarter results included a gain of $5.7 million or $0.19 per share from the sale of certain real estate associated with the relocation of a building materials operation in Texas. For the six months ended June 30, 2007, net income was $14.5 million or $0.49 per share compared to $62.2 million or $2.10 per share in the same period of 2006.
Robert E. Mellor, Chairman, President and Chief Executive Officer, stated, "Market conditions remained very challenging during the second quarter, with year-over-year comparisons continuing to reflect the sharp correction occurring in the homebuilding sector.”
The full report from BMHC is here.
Do it Best Names Brown VP of Retail Development
7.9.07 Do it Best Corp. today named Jay Brown to the position of vice president of retail development. Since June 2004, Brown had been the co-op’s vice president of merchandising. Prior to that, he was senior general manager, consumer brands for Valspar Corporation.
PRO Group and Val-Test Distributors Meet in Atlanta
6.12.07 Distributors from PRO Group and Val-Test are meeting June 11-13 at the Embassy Suites Hotel in downtown Atlanta to have scheduled buyer/vendor meetings in private suites throughout the hotel.
This is the third year PRO Group has hosted the conference and the first year distributors from Val-Test have been invited to participate.
At the conference, vendors are invited to set up gondolas, end caps or other merchandise displays in their suites.
Huttig Reports 1Q Loss
4.30.07 Hutting Building Products, a distributor of millwork, building materials and wood products, has reported a net loss for the first quarter of $3.2 million compared with a profit of $2.4 million in the year-ago period.
Net sales for the quarter ended March 31, 2007 fell to $222.4 million versus $281.1 million last year.
BMHC Reports 1Q loss of $5M
4.27.07 Building Materials Holding Corp. last night reported a net loss of $5 million for the first quarter compared with net earnings of $28.1 million in the year-ago period.
Sales in the quarter declined 36 percent to $569 million from last year’s $885 million.
“The market correction continues to be challenging for homebuilders and their suppliers, and we are all focused intently on recalibrating our expense run rates to match significantly lower revenues,” said Robert Mellor, Chairman and CEO.
The full BMHC report is here.
Ace Launches New TV Ads
4.10.07 Ace Hardware has launched a national TV ad campaign designed to drive sales for its lawn and garden, outdoor living and paint departments.
The ads focus on the “helpful service our stores provide customers every day,” said Paula Erickson, director of advertising and brand development for Ace.
The 15 and 30-second spots feature a red-vested Ace associate by the homeowner’s side as they show off the results of their home improvement projects. All the spots are tagged “Almost Like We’re Right There; Ace: The Helpful Place.”
House-Hasson Makes Acquisition
4.3.07 House-Hasson Hardware today announced it has acquired the consumer products division of Persinger Supply Company. Don Hasson, president of House-Hasson, said the acquisition will help the company further expand its services to home improvement retailers in Virginia, West Virginia, Ohio and Pennsylvania.
BMHC Completes Acquisition of Riggs Plumbing
3.29.07 Building Materials Holding Corporation (BMHC) today announced that its wholly owned subsidiary, SelectBuild Construction, Inc. has completed the acquisition of the remaining 27% of Riggs Plumbing LLC. Riggs provides turnkey rough and finish plumbing installation to high-volume residential builders in the Phoenix and Tucson markets and in 2006 had sales of approximately $90 million.
SelectBuild acquired its initial interest of 60% of Riggs in April 2005 and acquired an additional 13% in July 2005.
Ace Awards Hardware Store to “Dream Ace” Winner
Ace Hardware announced yesterday that Gower Talley of Canby, Ore. is the winner of a $1 million Ace Hardware store to open in Houston on June 29.
More than 5,400 aspiring storeowners entered the contest in January. Ace retailers participated in a live vote during the Ace Hardware Convention in Las Vegas, following presentations by the two finalists, to select the winner.
The new 15,500 square-foot store includes opening stock inventory, fixtures, décor and all the necessary technology to operate the store.
BMHC Announces $25M Share Repurchase Program
3.15.07 Building Materials Holding Corp. yesterday announced its Board of Directors has approved a share repurchase program of up to $25 million over the next 12 months.
Robert E. Mellor, chairman and CEO, said, “While we will continue to seek and evaluate acquisitions and other capital investment opportunities, the share repurchase program provides us with an additional method to strategically manage our capital.”
Ace Hardware Sales + 6.5%
3.5.07 Ace Hardware Corp. has reported record wholesale sales for 2006 of $3.77 billion, up 6.5 percent from 2005. Net earnings for the co-op increased 5.1 percent to $105.5 million from $100.4 million a year ago. Domestic revenues increased by 6.2 percent, driven primarily by new store openings and strong sales in the paint/cleaning supplies, plumbing and basic electrical categories. International sales increased 13.3 percent, driven by gains in the Middle East, South America and Caribbean regions.
The company opened 188 new stores during the year, and currently has over 4,600 stores with retail sales of approximately $13 billion.
You can read the company’s press release on 2006 results here.
True Value Earnings +9%
2.28.07 True Value Company yesterday reported it had earnings of $62.9 million in 2006 ($72.8 million including extraordinary gains), a 19-year high for the co-op. Revenue for the year increased slightly to $2.05 billion from the previous year’s $2.04 billion.
Also, the company reported it has reduced its total year-end debt by 25.6 percent to $144.5 million from $194.1 million a year ago.
Builders FirstSource 4Q Sales Fall 23%
2.26.07 Builders FirstSource reports sales in the fourth quarter fell 22.5 percent to $438.6 million from $565.9 million in the year-ago period. For the fiscal year, sales declined 4.2 percent to $2.24 billion. The company said the sales decline is attributable to a 32 percent decline in housing activity in its markets.
Net income for the quarter fell to $3.9 million versus $19.5 million a year ago. For the year, thanks to a strong first half, income increased to $68.9 million from $48.6 million.
Huttig Closing NY Center
2.21.07 Huttig Building Products is closing its lumber and building products distribution center in Hauppauge, NY and eliminating about 30 jobs due to the downturn in the housing market.
The company said it will take a $2.0 million to $2.5 million charge in the first quarter related to the move.
Huttig Building Products Reports 4Q and Full Year Loss
2.12.07 Huttig Building Products last week reported an operating loss of $2.6 million on sales of $231.1 million for the fourth quarter ended December 31, 2006. That compares with income of $1.2 million on sales of $264.5 million in the year-ago period.
For the year, the company reported an operating loss of $7.7 million on sales of $1.103 billion, down from income of $17.1 million on sales of $1.097 billion in 2005.
“The housing market continues to be difficult. During the past two quarters, we have closed or consolidated five branches, trimmed our workforce by approximately 300 positions, or 14 percent, and entered into a new credit facility,” said Jon P. Vrabley, president and CEO.
Pro and Val-Test to Co-Host Group Merchandising Conference in June
2.09.07 Distributor members of the Schaumburg, Illinois-based Val-Test will join Denver-based PRO Group, Inc. distributors at the Group Merchandising Conference (GMC) June 11-13, 2007 at the Embassy Suites Hotel in downtown Atlanta.
The event is expected to draw approximately 250 home improvement industry executives, including 35 distributor companies and 90 key manufacturing companies.
"PRO Group executives invited Val-Test to participate in the event as a way to make participating even more meaningful for manufacturers," said PRO Group President and Chief Operating Officer, Steve Synnott.
Russell Meeks, president of Val-Test, said, "This event will mark the first time the two distribution groups have co-hosted an event. We look forward to this event, and the synergies that our two groups can get by teaming up." Meeks added, "This is not a merger, however, PRO and VAL-TEST can work together to make the GMC an even bigger and better event for our members and suppliers."
The focus of the Group Merchandising Conference is to place new products, assortments, cut cases, displays, and planograms at retail. The event features private scheduled 30-minute meetings between buyers and sellers, who meet in private suites where products are displayed.
BMHC 4Q Profits Fall 87%
2.6.07 Building Materials Holding Corp. yesterday reported fourth quarter profit fell 87 percent to $4.5 million from $33.5 million in the year-ago period. Revenue in the quarter dropped 26 percent to $608 million from $818 million.
For the full fiscal year, earnings declined 21 percent to $102.1 million from $129.5 million in 2005. Revenues for the year increased 11 percent to $3.25 billion from $2.91 billion.
“Our fourth quarter results reflected the on-going correction of inventory levels which currently overhang the housing market,” said Robert Mellor, chairman, president and CEO.
Posted 11/3/06:
Do it Best Intros Toolbox Truck
Do
it Best Corp. introduced a new “toolbox” truck design during its recent October
Market. The clever and engaging design makes the truck trailer appear to
be a 70-foot-long toolbox.
More than
20 trucks have been converted to the new design with an additional 157 to
be added during 2007 as truck leases come up for renewal.
Posted 11/3/06:
Handy Hardware Joins DA
Handy
Hardware Wholesale yesterday joined Distribution America. Handy serves more
than 1,150 hardware stores, home centers and lumberyards in a 10-state region.
The 45-year-old company reported revenue of more than $225 million last year.
Distribution
America, a leading marketing and merchandising group, has annual sales of
over $1.2 billion serving 20,000 retailers through its member-wholesalers
in all 50 states and 20 countries. Adding Handy increases Distribution America’s
volume by over 20 percent.
“Handy Hardware is one of the largest, most
well respected distributors in our industry, and they truly fit with our
organization,” said Dave Christmas, president of Distribution America.
“Distribution
America offers purchasing power and outstanding efficiencies for us as a
company from a buying standpoint. Plus, their retail marketing programs and
tools for dealers are advantageous to our customer base,” said Mickey Schulte,
vice president of marketing for Handy Hardware.