Stock Building Supply posts Q3 loss
10/30/2013 11:37 AM
10/30/2013 11:38 AM
Stock Building Supply swung to a loss in the third quarter as the Raleigh company booked costs related to its initial public offering of stock earlier this year.
The company reported a net loss of $5.5 millon in the quarter, or 30 cents per diluted share, a figure that included $9.3 million in IPO costs. That compared with net income of $40,000, or 8 cents per diluted share, in the third quarter of 2012.
Stock’s net sales rose 28 percent to $328.5 million in the third quarter. The company attributed the increased sales to more single-family housing starts and an uptick in remodeling activity.
“We believe our growth rate continues to outperform our industry benchmarks as revenues from new single-family construction increased approximately 31 percent, while repair and remodel revenues increased 28 percent compared to third quarter 2012,” Jeff Rea, Stock’s CEO, said in a statement.
Stock sells windows, doors, roofing and other housing materials in 20 metropolitan areas in 13 states. The company raised $57.4 million in an IPO in August, with Stock’s proceeds totaling $46.8 million.
The company returned to profitability in the second quarter after posting net losses the past two years – $42.1 million in 2011 and $14.2 million last year.
Stock shares, which began trading at $14 a share in August, closed Wednesday at $15.41, down 31 cents.
Staff writer David Bracken
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