Huttig Building Products, Inc. Announces Third Quarter 2020 Results and Provides Business Update on COVID-19 Impact
Huttig Building Products reported third quarter results with net sales of $212.7 million, a decrease from $215.7 million in the prior year. Operating income rose to $6.9 million from $3.3 million, while adjusted EBITDA grew to $8.5 million, up from $5.3 million. The company improved liquidity to $69.8 million compared to $46.5 million the previous year and reduced debt by $51.9 million. Management attributes these improvements to operational changes made in response to the COVID-19 pandemic.
- Operating income increased to $6.9 million from $3.3 million.
- Adjusted EBITDA rose to $8.5 million, up from $5.3 million.
- Total liquidity improved to $69.8 million from $46.5 million.
- Debt reduced by $51.9 million compared to the previous year.
- Net sales decreased from $215.7 million to $212.7 million.
- Gross margin remained flat at 20.1% compared to the previous year.
- Operating expenses were reported at $35.8 million.
Third Quarter 2020 Highlights (as compared to prior year quarter):
- Net sales of $212.7 million compared to
$215.7 million - Reduced operating expenses by
13.5% to$35.8 million - Operating income increased to $6.9 million compared to $3.3 million
- Generated cash from operations of
$25.4 million compared to$9.6 million - Adjusted EBITDA increased to $8.5 million compared to $5.3 million
- Total liquidity increased to $69.8 million compared to $46.5 million a year ago
- Reduced indebtedness by $51.9 million compared to a year ago
ST. LOUIS, Oct. 29, 2020 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2020, and provided a business update on its response to the COVID-19 pandemic.
“As devastating as the impact of the COVID-19 global pandemic has been on our country, economy, and way of life, it was the catalyst for many of the changes we made to our business, contributing to our improved financial performance in the quarter,” said Jon Vrabely, President and CEO of Huttig. “I am very proud of our entire organization and our third quarter results in what remains a very challenging environment. Sales in the quarter approached prior year levels, and if not for the impact of COVID-related supply chain challenges, internal restructuring activities, and our continued product line rationalization initiative, we estimate our sales in the quarter would have exceeded prior year levels. We made meaningful improvements, reducing our expenses and debt, and have adapted to a leaner expense structure that establishes the foundation for a more profitable future.”
| Three Months Ended September 30, | |||||||||||
| 2020 | 2019 | ||||||||||
| Net sales | $ | 212.7 | 100.0 | % | $ | 215.7 | 100.0 | % | |||
| Gross margin | 42.7 | 20.1 | % | 44.7 | 20.7 | % | |||||
| Operating expenses |
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FAQ
What were the financial results of Huttig Building Products for Q3 2020?
Huttig reported net sales of $212.7 million, operating income of $6.9 million, and adjusted EBITDA of $8.5 million for Q3 2020.
Did Huttig Building Products increase its liquidity in Q3 2020?
Yes, Huttig increased its liquidity to $69.8 million compared to $46.5 million a year ago.
How much did Huttig reduce its debt by in Q3 2020?
Huttig reduced its debt by $51.9 million compared to the previous year.
What challenges did Huttig face during the pandemic in Q3 2020?
Huttig faced COVID-related supply chain challenges and internal restructuring activities affecting their sales.
What was Huttig’s operating income in Q3 2020?
Huttig's operating income increased to $6.9 million in Q3 2020.
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