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 second quarter ended June 30, 2020, and provided a business
update on its response to the COVID-19 pandemic.
“In light of all of the economic uncertainty
caused by the COVID-19 pandemic, I am pleased with our financial
performance in the second quarter,” said Jon Vrabely, Huttig’s
President and Chief Executive Officer. “We acted early,
decisively, and aggressively to adjust our cost structure and
inventory levels to mitigate the threat to the company posed by the
pandemic. I am very proud of all of our associates for the
dedication, hard work, and personal sacrifices that have been made
on behalf of our stakeholders. Moving forward, we remain
committed to continuing to take the necessary actions to protect
our associates and diligently manage the business as the external
environment continues to change.”
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
Net
sales |
$ |
192.0 |
|
100.0 |
% |
|
$ |
218.5 |
|
100.0 |
% |
Gross
margin |
|
38.7 |
|
20.2 |
% |
|
|
44.3 |
|
20.3 |
% |
Operating
expenses |
|
34.7 |
|
18.1 |
% |
|
|
41.0 |
|
18.8 |
% |
Restructuring charges |
|
1.5 |
|
0.8 |
% |
|
|
- |
|
0.0 |
% |
Operating
income |
|
2.5 |
|
1.3 |
% |
|
|
3.3 |
|
1.5 |
% |
Income
(loss) from continuing operations |
|
1.6 |
|
0.8 |
% |
|
|
(10.3 |
) |
-4.7 |
% |
Net income
(loss) |
|
1.6 |
|
0.8 |
% |
|
|
(10.3 |
) |
-4.7 |
% |
Earnings
(loss) from continuing operations per share- basic and diluted |
$ |
0.06 |
|
|
|
$ |
(0.40 |
) |
|
Net earnings
(loss) per share - basic and diluted |
$ |
0.06 |
|
|
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
2020 |
|
|
|
2019 |
|
Net
sales |
$ |
395.0 |
|
100.0 |
% |
|
$ |
415.9 |
|
100.0 |
% |
Gross
margin |
|
79.6 |
|
20.2 |
% |
|
|
81.7 |
|
19.6 |
% |
Operating
expenses |
|
73.7 |
|
18.7 |
% |
|
|
80.6 |
|
19.4 |
% |
Goodwill
impairment |
|
9.5 |
|
2.4 |
% |
|
|
- |
|
0.0 |
% |
Restructuring charges |
|
1.5 |
|
0.4 |
% |
|
|
- |
|
0.0 |
% |
Operating
income (loss) |
|
(5.1 |
) |
-1.3 |
% |
|
|
1.1 |
|
0.3 |
% |
Loss from
continuing operations |
|
(7.3 |
) |
-1.8 |
% |
|
|
(13.5 |
) |
-3.2 |
% |
Net
loss |
|
(7.3 |
) |
-1.8 |
% |
|
|
(13.5 |
) |
-3.2 |
% |
Loss from
continuing operations per share- basic and diluted |
$ |
(0.28 |
) |
|
|
$ |
(0.53 |
) |
|
Net loss per
share - basic and diluted |
$ |
(0.28 |
) |
|
|
$ |
(0.53 |
) |
|
|
|
|
|
|
|
Results of Operations
Three Months Ended June 30, 2020
Compared to Three Months Ended June 30, 2019
As anticipated, the impact of the COVID-19
pandemic negatively affected our net sales, although our COVID-19
readiness and response plan has driven an overall improvement in
our operating results relative to our initial pandemic
forecasts.
Net sales were $192.0 million in the second
quarter of 2020, which was $26.5 million, or 12.1%, lower than
the second quarter of 2019. The decline was caused primarily
by the changes to the operating environment resulting from the
pandemic. While some of our largest markets were significantly
impacted by the pandemic early in the second quarter, demand has
improved as construction activity has rebounded. Revenues
were lower in all three of our product classifications, with
varying levels of pandemic-related supply chain disruption across
product lines.
Millwork product sales decreased 17.9% in the
second quarter of 2020 to $81.7 million, compared to $99.5
million in the second quarter of 2019; building products sales
decreased 3.6% in the second quarter of 2020 to $97.5 million,
compared to $101.1 million in the second quarter of 2019; and wood
product sales decreased 28.5% in the second quarter of 2020 to
$12.8 million, compared to $17.9 million in the second quarter
of 2019. Millwork sales were most impacted by the disruption
of our supply chain. Building product sales were more resilient as
certain product lines within this category retained relatively
consistent high levels of demand. The decline in wood product sales
also reflected our decision to de-emphasize certain product lines
within the category.
Gross margin was $38.7 million in the
second quarter of 2020, compared to $44.3 million in the second
quarter of 2019. As a percentage of sales, gross margin was 20.2%
in the second quarter of 2020, compared to 20.3% in the second
quarter of 2019. Gross margins were negatively impacted by a shift
in sales mix reflecting higher proportionate sales of lower margin
categories and direct sales.
Operating expenses, excluding restructuring
charges of $1.5 million, decreased $6.3 million to
$34.7 million in the second quarter of 2020, compared to
$41.0 million in the second quarter of 2019. Personnel
costs decreased $4.7 million, or 19.3%, as a result of expense
reduction actions taken in response to the COVID-19 pandemic,
including the closing of two branches, workforce reductions, wage
reductions and suspension of Company matching contributions under
an employee benefit plan, as well as reduced medical claims.
Non-personnel costs decreased $1.6 million as travel and other
discretionary spend was curtailed and fuel costs were lower due to
lower volume and pricing. As a percentage of sales, operating
expenses, exclusive of restructuring, were 18.1% in the second
quarter of 2020 compared to 18.8% in the second quarter of
2019.
We are in the process of closing our Columbus,
Ohio and Selkirk, New York branch locations as part of our
restructuring efforts. We expect these efforts to be
substantially complete by the end of the third quarter this
year. During the second quarter of 2020, we recorded a
restructuring charge of $1.5 million for closure-related costs for
personnel, facility, equipment and working capital related
costs.
Net interest expense was $0.9 million in the
second quarter of 2020 and $1.8 million in the second quarter of
2019. The lower expense in the second quarter of 2020
reflects both lower average debt outstanding and lower interest
rates.
Income taxes were $0.0 million for the quarter
ended June 30, 2020, as compared to income tax expense of $11.8
million for the comparable quarter ended June 30, 2019. We
recorded a tax charge of $11.8 million in the second quarter of
2019 related to an increase in our deferred tax asset valuation
allowance. The increase was required as realization of the
net deferred asset was determined to no longer meet the
more-likely-than-not criterion under US GAAP. Most of the
Company’s net deferred tax asset is comprised of federal tax loss
carryforwards which will begin expiring in 2030. The deferred
tax valuation allowance is assessed each reporting period and the
amount of net deferred tax assets considered realizable could be
adjusted in future periods based on the Company’s financial
performance. As of June 30, 2020, we have continued to
maintain a full valuation allowance on our deferred tax
assets. The net operating loss carryforwards remain available
to offset future taxable income.
As a result of the foregoing factors, we
reported net income of $1.6 million for the quarter ended June
30, 2020, compared to a net loss of $10.3 million for the quarter
ended June 30, 2019. Adjusted for the $1.5 million
restructuring charge in 2020 and the $11.8 million tax charge in
2019, net income was $3.1 million and $1.5 million in 2020 and
2019, respectively.
Adjusted EBITDA was $5.7 million for the second
quarter of 2020 compared to $5.1 million for the second quarter of
2019. Adjusted EBITDA is a non-GAAP measurement. See below
reconciliation of Non-GAAP Financial Measures.
Six Months Ended June 30, 2020 Compared
to Six Months Ended June 30, 2019
Net sales were $395.0 million in the first six
months of 2020, which was $20.9 million, or 5.0%, lower than the
first six months of 2019. The decrease in net sales was
primarily caused by the impact of the COVID-19 pandemic early in
the second quarter. While some of our largest markets were
significantly impacted by the pandemic in the second quarter,
demand has improved as construction activity has rebounded.
Revenues were lower in all three of our product classifications,
with varying levels of pandemic-related supply chain disruption
across product lines.
Millwork product sales decreased 8.7% in the
first six months of 2020 to $177.9 million, compared to $194.8
million in the first six months of 2019; building products sales
increased 0.4% in the first six months of 2020 to $190.0 million,
compared to $189.3 million in the first six months of 2019; and
wood product sales decreased 14.8% in the first six months of 2020
to $27.1 million, compared to $31.8 million in the first six months
of 2019. Millwork sales were most impacted by the disruption of our
supply chain when compared to other product classifications.
Building product sales were more resilient as certain product lines
within this category retained relatively consistent high levels of
demand. The decline in wood product sales also reflected our
decision to de-emphasize certain product lines within the
category.
Gross margin was $79.6 million in the first six
months of 2020, compared to $81.7 million in the first six months
of 2019. As a percentage of sales, gross margin was 20.2% in the
first six months of 2020, compared to 19.6% in the first six months
of 2019. The gross margin percentage reflects the favorable
impact from our focus on higher margin sales opportunities,
partially offset by the change in product mix consistent with the
disproportionate increase in the building products category.
Operating expenses, excluding restructuring
costs of $1.5 million, decreased $6.9 million to $73.7 million in
the first six months of 2020, compared to $80.6 million in the
first six months of 2019. Personnel costs decreased $6.2
million as a result of expense reduction actions taken in response
to the COVID-19 pandemic, including the closing of two branches,
workforce reductions wage reductions, suspension of Company
matching contributions under an employee benefit plan and reduced
medical claims. Non-personnel costs decreased $0.7 million as
travel and other discretionary spend was curtailed and fuel costs
were lower due to lower volume and price, partially offset by an
increase in worker’s compensation expense and other insurance
costs. As a percentage of sales, operating expenses, net of
restructuring, were 18.7% in the first six months of 2020 compared
to 19.4% in the first six months of 2019.
During the first quarter of 2020, a decline in
the market value of the Company’s public equity concurrent with the
COVID-19 pandemic triggered an assessment of goodwill. As a result
of the interim goodwill impairment test, the Company recognized a
goodwill impairment charge of $9.5 million.
We are in the process of closing of our
Columbus, Ohio and Selkirk, New York branch locations as part of
our restructuring efforts. We expect these efforts to be
substantially complete by the end of the third quarter this
year. During the second quarter of 2020, we recorded a
restructuring charge of $1.5 million for closure-related costs for
personnel, facility, equipment and working capital related
costs.
Net interest expense was $2.2 million in the
first six months of 2020 compared to $3.5 million in the first six
months of 2019. The lower expense in the first six months of
2020 reflected both lower average borrowing and lower interest
rates.
Income taxes were $0.0 million for the first six
months of 2020, as compared to income tax expense of $11.1 million
for the first six months of 2019. In the six months ended June 30,
2019, we recorded a tax charge of $11.8 million for an increase in
our deferred tax asset valuation allowance. The increase was
required as realization of the net deferred asset was determined to
no longer meet the more-likely-than-not criterion under US
GAAP. Most of the Company’s net deferred tax asset is
comprised of federal tax loss carryforwards which will begin
expiring in 2030. The deferred tax valuation allowance is
assessed each reporting period and the amount of net deferred tax
assets considered realizable could be adjusted in future periods
based on the Company’s financial performance. The net
operating loss carryforwards remain available to offset future
taxable income.
As a result of the foregoing factors, we
reported a net loss of $7.3 million and $13.5 million for the six
months ended June 30, 2020 and 2019, respectively. Adjusted
for the $9.5 million goodwill impairment charge and the $1.5
million restructuring charge in 2020, and adjusted for the $11.8
million tax charge in 2019, year-to-date net income was $3.7
million in 2020 compared to a net loss of $1.7 million a year
ago.
Adjusted EBITDA was $9.2 million for the six
months ended June 30, 2020 compared to $4.7 million for the
comparable period of 2019. Adjusted EBITDA is a non-GAAP
measurement. See below reconciliation of Non-GAAP Financial
Measures.
Balance Sheet &
Liquidity
Cash provided by operating activities was
$10.3 million during the first six months of 2020, compared to
a cash usage of $19.8 million during the first six months of 2019.
The increase in cash provided by operating activities was primarily
attributable to improved operating results combined with a $30.9
million reduction of inventory during the first six months of 2020
driven by our COVID-19 readiness and response plan. Accounts
payable increased $6.1 million and $18.1 million in 2020
and 2019, respectively, primarily as a result of seasonal inventory
purchase activity and temporary modifications to terms with key
vendors during the first six months of 2020, and due to seasonal
inventory purchases to support cyclical sales activity during the
first six months of 2019. These decreases in working capital
were partially offset by an increase in accounts receivable of
$35.0 million during the first six months of 2020, compared to
an increase of $27.7 million in the prior-year corresponding
period. The increase in accounts receivable over the first
six months of 2020 was primarily a result of cyclical increases in
sales activity with a disproportionate impact from recovering sales
late in the second quarter of 2020.
At June 30, 2020, we had $56.0 million of total
liquidity including excess committed borrowing availability of
$54.2 million and cash of $1.8 million. Total liquidity was $39.6
million at June 30, 2019 including excess committed borrowing
availability of $38.5 million and cash of $1.1 million.
Impact and Company Response to
COVID-19
In March 2020, the World Health Organization
recognized the novel strain of coronavirus, COVID-19, as a
pandemic. The United States, various other countries and
state and local jurisdictions have imposed, among other things,
travel and business operation restrictions intended to limit the
spread of the COVID-19 virus and have advised or required
individuals to adhere to social distancing or limit or forego their
time outside of their home. This pandemic and the
governmental response have resulted in significant and widespread
economic disruptions to, and uncertainty in, the global and U.S.
economies, including in the regions in which we operate. In
many jurisdictions, we and our customers were deemed “essential
businesses” and continued to operate, reducing the impact of these
restrictions on its operations and results for the three and six
months ended June 30, 2020. However, our management cannot
reliably predict the future impact of the pandemic and the
governmental response to the pandemic on our operations and future
results.
With the exception of closing two branches as a
part our restructuring efforts, all of our branches remain open and
capable of meeting customer needs. We have taken protective
measures to guard the health and well-being of our employees and
customers, including the implementation of social distancing
guidelines and remote work options where possible. We have
observed certain of our customers reducing purchases and operations
due to the impact of COVID-19 and governmental restrictions. We
adjusted our sales forecast accordingly and have taken proactive
measures to protect our operating liquidity, including
communicating with vendors and customers, seeking modification of
payment and other terms of rental and procurement agreements and
monitoring our accounts receivable. We have also reduced
inventory levels to meet an anticipated decrease in demand and
implemented cost containment measures, including closing two
branches, lay-offs, wage reductions, suspension of matching
contributions under a qualified defined contribution plan, and
eliminated non-essential spend. We have delayed or cancelled
certain planned capital expenditures. We have utilized our
diverse overseas network to source alternative suppliers of our
proprietary products, while simultaneously rationalizing our
purchase volume to better align with our current sales
projections. We have also been proactively communicating with
our lenders regarding potential modification to the terms of our
credit facility should it be deemed necessary. While we
intend for these actions to mitigate the impact of the pandemic on
our operations, we cannot provide any assurance that these actions
will be successful.
Although we are reviewing and intend to seek
available benefits under the CARES Act, we cannot predict the
manner in which such benefits will be allocated or administered and
we cannot assure you that we will be able to access such benefits
in a timely manner or at all. Certain of the benefits we seek to
access under the CARES Act have not previously been administered on
the present scale or at all. Government or third party program
administrators may be unable to cope with the volume of
applications in the near term and any benefits we receive may not
be as extensive as we currently estimate, may impose additional
conditions and restrictions on our operations or may otherwise
provide less relief than we contemplate. Accessing these benefits
and our response to the COVID-19 pandemic have required our
management team to devote extensive resources to these issues,
which we expect to continue in the near future, and which
negatively affect our ability to implement our business plan and
respond to opportunities.
Conference Call
Huttig Building Products, Inc. will host a
conference call Tuesday, August 4, 2020 at 10:00 a.m. Central Time.
Participants can listen to the call live via webcast by going
to the investor portion of Huttig’s website at
www.huttig.com. Participants can also access the live
conference call via telephone at (866) 238-1641 or (213) 660-0927
(international). The conference ID for this call is 9050677.
About Huttig
Huttig, currently in its 136th 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. Huttig'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
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. The words or phrases “will likely
result,” “are expected to,” “will continue,” “is anticipated,”
“believe,” “estimate,” “project” or similar expressions may
identify forward-looking statements, although not all
forward-looking statements contain such words. Statements
made in this press release looking forward in time, including, but
not limited to, statements regarding our current views with respect
to financial performance, future growth in the housing market,
distribution channels, sales, favorable supplier relationships,
inventory levels, the ability to meet customer needs, enhanced
competitive posture, strategic initiatives, absence of material
financial impact from litigation or contingencies, including
environmental proceedings, are included pursuant to the “safe
harbor” provision of the Private Securities Litigation Reform Act
of 1995.
These statements present management’s
expectations, beliefs, plans and objectives regarding our future
business and financial performance. We cannot guarantee that
any forward-looking statements will be realized or achieved. These
forward-looking statements are based on current projections,
estimates, assumptions and judgments, and involve known and unknown
risks and uncertainties. We disclaim any obligation to
publicly update or revise any of these forward-looking statements,
whether as a result of new information, future events or
otherwise.
There are a number of factors, some of which are
beyond our control that could cause our actual results to differ
materially from those expressed or implied in the forward-looking
statements. These factors include, but are not limited to,
the following: the impact of global health concerns, including the
current COVID-19 pandemic, and governmental responses to such
concerns, on our business, results of operations, liquidity and
capital resources; the success of our growth initiatives; expansion
of the Huttig-Grip product line; the strength of new construction,
home improvement and remodeling markets and the recovery of the
homebuilding industry to levels consistent with the historical
annual average total housing starts from 1959 to 2019 of
approximately 1.4 million starts based on statistics tracked by the
U.S. Census Bureau; the cyclical nature of our industry; our
ability to comply with, and the restrictive effect of, the
financial covenant applicable under our credit facility; risks of
international suppliers; the ability to source alternative
suppliers in light of the COVID-19 pandemic; product liability
claims and other legal proceedings; commodity prices and demand in
light of the COVID-19 pandemic; stock market volatility; failure to
meet exchange listing requirements; stockholder activist
disruption; current or future litigation; information technology
failures, network disruptions, cybersecurity attacks or breaches in
data security; termination of key supplier relationships; our
failure to attract and retain key personnel; goodwill impairment;
deterioration of our customers’ creditworthiness or our inability
to forecast such deteriorations particularly in light of the
COVID-19 pandemic; the loss of a significant customer; the cost of
environmental compliance, including actual expenses we may incur to
resolve proceedings we are involved in arising out of a formerly
owned facility in Montana; competition with existing or new
industry participants; deterioration in our relationship with our
unionized employees, including work stoppages or other disputes;
funding requirements for multi-employer pension plans for our
unionized employees; significant uninsured claims; the integration
of any business we acquire and the liabilities of such businesses;
the seasonality of our operations; federal and state transportation
regulations; fuel cost increases; any limitations on our ability to
utilize our deferred tax assets to reduce future taxable income and
tax liabilities; risks associated with our private brands;
uncertainties resulting from changes to United States and foreign
laws, regulations and policies; the potential impact of changes in
tariff costs, including tariffs on imported steel and aluminum, and
potential anti-dumping or countervailing duties; and those set
forth under Part I, Item 1A – “Risk Factors” in the Company’s
Annual Report on Form 10-K for the year ended December 31,
2019 as supplemented by Form 8-K filed on April 27, 2020 and Part
II, Item 1A – “Risk Factors” of the Quarterly Report on Form 10-Q
for the quarter ended March 31, 2020. These factors may not
constitute all factors that could cause actual results to differ
from those discussed in any forward-looking statement. Accordingly,
forward-looking statements should not be relied upon as a predictor
of actual results.
Non-GAAP Financial Measures
Huttig supplements its reporting of net income
with the non-GAAP measurement of Adjusted EBITDA. This supplemental
information should not be considered in isolation or as a
substitute for GAAP measures.
The Company defines Adjusted EBITDA as net
income adjusted for interest, income taxes, depreciation and
amortization and other items as listed in the table below and
presents Adjusted EBITDA because it is a primary measure used by
management, and by similar companies in the industry, to evaluate
operating performance and Huttig believes it 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 as a
measure of operating performance. Huttig compensates 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. Because not all companies
use identical calculations, Huttig’s 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 GAAP, to Adjusted EBITDA for the periods presented (in
millions):
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
June 30, |
|
June 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net income
(loss) |
$ |
1.6 |
|
|
$ |
(10.3 |
) |
|
$ |
(7.3 |
) |
|
$ |
(13.5 |
) |
Interest
expense, net |
|
0.9 |
|
|
|
1.8 |
|
|
|
2.2 |
|
|
|
3.5 |
|
Benefit from
income taxes |
|
- |
|
|
|
11.8 |
|
|
|
- |
|
|
|
11.1 |
|
Depreciation
and amortization |
|
1.4 |
|
|
|
1.3 |
|
|
|
2.7 |
|
|
|
2.7 |
|
Stock
compensation expense |
|
0.3 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
1.1 |
|
Goodwill
impairment |
|
- |
|
|
|
- |
|
|
|
9.5 |
|
|
|
- |
|
Restructuring Charges |
|
1.5 |
|
|
|
- |
|
|
|
1.5 |
|
|
|
- |
|
Other |
|
- |
|
|
|
(0.1 |
) |
|
|
- |
|
|
|
(0.2 |
) |
Adjusted
EBITDA |
$ |
5.7 |
|
|
$ |
5.1 |
|
|
$ |
9.2 |
|
|
$ |
4.7 |
|
|
|
|
|
|
|
|
|
HUTTIG
BUILDING PRODUCTS, INC. AND SUBSIDIARY |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
(in
millions, except Per Share Data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net
sales |
|
$ |
192.0 |
|
|
$ |
218.5 |
|
|
$ |
395.0 |
|
|
$ |
415.9 |
|
Cost of
sales |
|
|
153.3 |
|
|
|
174.2 |
|
|
|
315.4 |
|
|
|
334.2 |
|
Gross margin |
|
|
38.7 |
|
|
|
44.3 |
|
|
|
79.6 |
|
|
|
81.7 |
|
Operating
expenses |
|
|
34.7 |
|
|
|
41.0 |
|
|
|
73.7 |
|
|
|
80.6 |
|
Goodwill
impairment |
|
|
— |
|
|
|
— |
|
|
|
9.5 |
|
|
|
— |
|
Restructuring charges |
|
|
1.5 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
Operating
income (loss) |
|
|
2.5 |
|
|
|
3.3 |
|
|
|
(5.1 |
) |
|
|
1.1 |
|
Interest
expense, net |
|
|
0.9 |
|
|
|
1.8 |
|
|
|
2.2 |
|
|
|
3.5 |
|
Income
(loss) from operations before income taxes |
|
|
1.6 |
|
|
|
1.5 |
|
|
|
(7.3 |
) |
|
|
(2.4 |
) |
Income tax
expense |
|
|
— |
|
|
|
11.8 |
|
|
|
— |
|
|
|
11.1 |
|
Income
(loss) from continuing operations |
|
|
1.6 |
|
|
|
(10.3 |
) |
|
|
(7.3 |
) |
|
|
(13.5 |
) |
Loss from
discontinued operations, net of taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income
(loss) |
|
$ |
1.6 |
|
|
$ |
(10.3 |
) |
|
$ |
(7.3 |
) |
|
$ |
(13.5 |
) |
|
|
|
|
|
|
|
|
|
Earnings
(loss) per share: |
|
|
|
|
|
|
|
|
Earnings
(loss) from continuing operations per share- basic |
|
$ |
0.06 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.53 |
) |
Loss from
discontinued operations per share- basic |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net earnings
(loss) per share - basic |
|
$ |
0.06 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.53 |
) |
|
|
|
|
|
|
|
|
|
Earnings
(loss) from continuing operations per share- diluted |
|
$ |
0.06 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.53 |
) |
Loss from
discontinued operations per share- diluted |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income
(loss) per share- diluted |
|
$ |
0.06 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.53 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
Basic shares outstanding |
|
|
26.0 |
|
|
|
25.5 |
|
|
|
26.0 |
|
|
|
25.4 |
|
Diluted shares outstanding |
|
|
26.2 |
|
|
|
25.5 |
|
|
|
26.0 |
|
|
|
25.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HUTTIG
BUILDING PRODUCTS, INC. AND SUBSIDIARY |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
June
30, |
|
|
|
2020 |
|
2019 |
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and equivalents |
|
$ |
1.8 |
|
$ |
2.2 |
|
$ |
1.1 |
|
Trade accounts receivable, net |
|
|
95.5 |
|
|
60.5 |
|
|
96.7 |
|
Inventories, net |
|
|
108.5 |
|
|
139.4 |
|
|
141.7 |
|
Other current assets |
|
|
9.2 |
|
|
12.8 |
|
|
13.4 |
|
Total current assets |
|
|
215.0 |
|
|
214.9 |
|
|
252.9 |
|
|
|
|
|
|
|
|
|
PROPERTY,
PLANT AND EQUIPMENT: |
|
|
|
|
|
|
|
Land |
|
|
5.0 |
|
|
5.0 |
|
|
5.0 |
|
Buildings and improvements |
|
|
32.6 |
|
|
32.4 |
|
|
32.5 |
|
Machinery and equipment |
|
|
58.8 |
|
|
58.2 |
|
|
56.5 |
|
Gross property, plant and equipment |
|
|
96.4 |
|
|
95.6 |
|
|
94.0 |
|
Less accumulated depreciation |
|
|
66.6 |
|
|
64.4 |
|
|
62.0 |
|
Property, plant and equipment, net |
|
|
29.8 |
|
|
31.2 |
|
|
32.0 |
|
|
|
|
|
|
|
|
|
OTHER
ASSETS: |
|
|
|
|
|
|
|
Operating lease right-of-use assets |
|
|
38.6 |
|
|
40.9 |
|
|
34.2 |
|
Goodwill |
|
|
— |
|
|
9.5 |
|
|
9.5 |
|
Deferred income taxes |
|
|
— |
|
|
— |
|
|
— |
|
Other |
|
|
4.8 |
|
|
5.0 |
|
|
5.5 |
|
Total other assets |
|
|
43.4 |
|
|
55.4 |
|
|
49.2 |
|
TOTAL
ASSETS |
|
$ |
288.2 |
|
$ |
301.5 |
|
$ |
334.1 |
|
|
|
|
|
|
|
|
HUTTIG
BUILDING PRODUCTS, INC. AND SUBSIDIARY |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
(in
millions, except share data) |
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
June
30, |
|
|
2020 |
|
2019 |
|
2019 |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
1.7 |
|
|
$ |
1.7 |
|
|
$ |
1.7 |
Current maturities of operating lease right-of-use liabilities |
|
|
9.8 |
|
|
|
9.7 |
|
|
|
9.2 |
Trade accounts payable |
|
|
62.9 |
|
|
|
56.8 |
|
|
|
69.6 |
Accrued compensation |
|
|
5.5 |
|
|
|
5.5 |
|
|
|
4.4 |
Other accrued liabilities |
|
|
15.3 |
|
|
|
15.8 |
|
|
|
13.1 |
Total current liabilities |
|
|
95.2 |
|
|
|
89.5 |
|
|
|
98.0 |
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
Long-term debt, less current maturities |
|
|
125.6 |
|
|
|
135.1 |
|
|
|
158.6 |
Operating lease right-of-use liabilities, less current
maturities |
|
|
29.0 |
|
|
|
31.6 |
|
|
|
25.5 |
Other non-current liabilities |
|
|
2.2 |
|
|
|
2.4 |
|
|
|
2.5 |
Total non-current liabilities |
|
|
156.8 |
|
|
|
169.1 |
|
|
|
186.6 |
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
Preferred shares: $.01 par (5,000,000 shares authorized) |
|
|
— |
|
|
|
— |
|
|
|
— |
Common shares: $.01 par (75,000,000 shares authorized: 26,894,006;
26,441,926; and 26,542,639 shares issued at June 30, 2020, December
31, 2019 and June 30, 2019, respectively) |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
0.3 |
Additional paid-in capital |
|
|
48.8 |
|
|
|
48.2 |
|
|
|
47.0 |
Retained earnings (accumulated deficit) |
|
|
(12.9 |
) |
|
|
(5.6 |
) |
|
|
2.2 |
Total shareholders’ equity |
|
|
36.2 |
|
|
|
42.9 |
|
|
|
49.5 |
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
288.2 |
|
|
$ |
301.5 |
|
|
$ |
334.1 |
|
|
|
|
|
|
|
HUTTIG
BUILDING PRODUCTS, INC. AND SUBSIDIARY |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(unaudited) |
(in
millions) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Cash Flows
From Operating Activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1.6 |
|
|
$ |
(10.3 |
) |
|
$ |
(7.3 |
) |
|
$ |
(13.5 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1.4 |
|
|
|
1.3 |
|
|
|
2.7 |
|
|
|
2.7 |
|
Non-cash interest expense |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
Stock-based compensation |
|
|
0.3 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
1.1 |
|
Deferred income taxes |
|
|
— |
|
|
|
11.8 |
|
|
|
— |
|
|
|
11.0 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
9.5 |
|
|
|
— |
|
Restructuring charges |
|
|
1.5 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
|
1.2 |
|
|
|
(7.5 |
) |
|
|
(35.0 |
) |
|
|
(27.7 |
) |
Inventories, net |
|
|
38.8 |
|
|
|
7.5 |
|
|
|
30.9 |
|
|
|
(7.7 |
) |
Trade accounts payable |
|
|
(22.6 |
) |
|
|
(17.0 |
) |
|
|
6.1 |
|
|
|
18.1 |
|
Other |
|
|
2.5 |
|
|
|
(0.6 |
) |
|
|
1.2 |
|
|
|
(3.9 |
) |
Cash provided by (used in) continuing operating activities |
|
|
24.7 |
|
|
|
(14.2 |
) |
|
|
10.3 |
|
|
|
(19.8 |
) |
Cash used in discontinued operating activities |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Total cash provided by (used in) operating activities |
|
|
24.7 |
|
|
|
(14.3 |
) |
|
|
10.2 |
|
|
|
(20.0 |
) |
Cash Flows
From Investing Activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(0.8 |
) |
Total cash used in investing activities |
|
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
(0.8 |
) |
Cash Flows
From Financing Activities: |
|
|
|
|
|
|
|
|
Borrowings (repayments) of debt, net |
|
|
(22.9 |
) |
|
|
14.9 |
|
|
|
(9.8 |
) |
|
|
21.2 |
|
Repurchase of shares to satisfy employee tax withholdings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.1 |
) |
Total cash provided by (used in) financing activities |
|
|
(22.9 |
) |
|
|
14.9 |
|
|
|
(9.8 |
) |
|
|
21.1 |
|
Net increase
(decrease) in cash and equivalents |
|
|
1.4 |
|
|
|
0.2 |
|
|
|
(0.4 |
) |
|
|
0.3 |
|
Cash and
equivalents, beginning of period |
|
|
0.4 |
|
|
|
0.9 |
|
|
|
2.2 |
|
|
|
0.8 |
|
Cash and
equivalents, end of period |
|
$ |
1.8 |
|
|
$ |
1.1 |
|
|
$ |
1.8 |
|
|
$ |
1.1 |
|
|
|
|
|
|
|
|
|
|
For more information, contact:
investor@huttig.com
Huttig Building Products (NASDAQ:HBP)
Historical Stock Chart
From Aug 2024 to Sep 2024
Huttig Building Products (NASDAQ:HBP)
Historical Stock Chart
From Sep 2023 to Sep 2024