Latest Update on Hot Stock: BMC Stock Holdings, Inc. (NASDAQ: BMCH)

On 17 Dec 2019, BMC Stock Holdings, Inc stock identified change of 100.55% away from 52-week low price and recently located move of -2.52% off 52-week high price. BMCH stock has been recorded 4.46% away from 50 day moving average and 25.59% away from 200 day moving average. Moving closer, we can see that shares have been trading 0.38% off 20-day moving average.

BMC Stock Holdings, Inc. (BMCH) recently reported its financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Highlights (Comparisons are to Previous Year Period)

Net sales of $964.2M, a decrease of 2.6% primarily driven by commodity price deflation, partially offset by acquisition growth of 3.9% and Core Organic Growth (defined in the Net Sales table below) of 3.6%

Gross profit of $254.8M, a raise of 5.6%

Gross margin (or gross profit as a percentage of sales) of 26.4%, a raise of 200 basis points

Net income of $33.6M, a decrease of $2.3M

Adjusted EBITDA (non-GAAP) of $74.7M, up slightly from the previous year

Adjusted EBITDA margin (non-GAAP) of 7.7%, a raise of 20 basis points

Diluted earnings per share of $0.50, contrast to $0.53 in the previous year

Adjusted net income per diluted share (non-GAAP) of $0.58, unchanged from the previous year

Cash provided by operating activities of $69.1M, a raise of $9.4M

Completed three acquisitions with aggregate pre-acquisition net sales of about $95M for the twelve months ended June 30, 2019

Third Quarter 2019 Financial Results Contrast to Previous Year Period

Net sales reduced 2.6% to $964.2M, primarily driven by commodity price deflation.  Specifically, the Company estimates that net sales reduced 10.5% from commodity price deflation within the lumber & lumber sheet goods and structural components product categories and 1.1% from the disposition of the Coleman Floor business.  These decreases were partially offset by a raise of 3.9% from the Company’s recent acquisitions, 1.5% from an additional selling day versus the previous year period and a raise of 3.6% from Core Organic Growth.

Gross profit increased 5.6% to $254.8M.  Gross profit as a percentage of sales (gross margin) was 26.4%, contrast to 24.4% for the third quarter of 2018.  This result reflects a 210-basis point year-over-year improvement in gross margin within the lumber and lumber sheet goods category and a 160-basis point improvement within structural components.

Selling, general and administrative (“SG&A”) expenses increased $13.1M to $189.3M. About $6.7M of this increase related to SG&A expenses at the Company’s recently purchased businesses, $5.2M of the increase related to employee wages and benefits and $2.0M of the increase related to gains on the sale of property, equipment and real estate during the previous year period, partially offset by a decrease of $0.8M in other SG&A expenses.  SG&A expenses as a percent of net sales were 19.6%, contrast to 17.8% for the third quarter of 2018.  This increase was primarily a result of deflation in the selling prices of lumber and lumber sheet goods and structural components.

Depreciation expense, including the portion stated within cost of sales, increased to $14.0M, contrast to $12.8M in the third quarter of 2018.

Merger and integration costs reduced to $1.3M, consisting primarily of system integration costs, contrast to $1.5M in the third quarter of 2018.

Amortization expense increased to $4.6M, contrast to $3.8M in the third quarter of 2018, primarily Because of the amortization of intangible assets at recently purchased businesses.

Interest expense reduced to $5.8M, contrast to $5.9M in the third quarter of 2018.

Other income, net, increased to $3.5M, which was derived primarily from state and local tax incentives, interest income and consumer service charges, contrast to $3.0M in the third quarter of 2018.  This increase resulted primarily from a raise in interest income.

Net income was $33.6M, or $0.50 per diluted share for the quarter, contrast to $35.9M, or $0.53 per diluted share, in the third quarter of 2018.

Adjusted net income (non-GAAP) reduced slightly to $38.8M, or $0.58 per diluted share (non-GAAP), contrast to Adjusted net income of $39.3M, or $0.58 per diluted share, in the third quarter of 2018.

Adjusted EBITDA (non-GAAP) was $74.7M, up slightly from the third quarter of 2018.

Adjusted EBITDA margin (non-GAAP), defined as Adjusted EBITDA as a percentage of net sales, expanded 20 basis points to 7.7%, contrast to the third quarter of 2018.

Cash provided by operating activities increased $9.4M to $69.1M, primarily Because of commodity price deflation and improved inventory turns, contrast to the third quarter of 2018.

BMC Stock Holdings, Inc. noticed change of 0.31% to $29.4 along volume of 339227 shares in recent session compared to an average volume of 380.55K. BMCH’s shares are at 14.00% for the quarter and driving a 91.91% return over the course of the past year and is now at 89.92% since this point in 2018.   The average volatility for the week at 1.93% and for month was at 1.77%. There are 67.46M shares outstanding and 65.85M shares are floated in market. Right now, the stock beta is 0.92.

Leave a comment

(*) Required, Your email will not be published