UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: July 31, 2014
(Date of earliest event reported)
Huttig Building Products, Inc.
(Exact name of registrant as specified in its charter)
DE
(State or other jurisdiction
of incorporation)
001-14982
(Commission File Number)
43-0334550
(IRS Employer
Identification Number)
555 Maryville University Drive, Suite 400
(Address of principal executive offices)
63141
(Zip Code)
314-216-2600
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition On July 31, 2014, Huttig Building Products, Inc. issued a press release announcing its results of operations for the second quarter ended June 30, 2014. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise stated in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: July 31, 2014 |
HUTTIG BUILDING PRODUCTS, INC.
By: /s/ Philip W. Keipp |
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| Exhibit No. | Description |
| 99.1 | Press Release of Huttig Building Products, Inc. dated July 31, 2014 |
Second Quarter Sales Increase 13% in 2014 From 2013
ST. LOUIS, MO -- (Marketwired - July 31, 2014) - 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, 2014.
Operating Summary
"While continuing to improve, the residential construction market continues to show moderate signs of volatility with growth rates varying greatly by region," said Jon Vrabely, Huttig's President and CEO. "Though the unpredictability of the market poses certain challenges, through our continued focus on improving financial performance and profitable sales growth, we generated stronger earnings, adjusted EBITDA and revenue during the second quarter. We were also pleased to announce we amended and extended our credit facility in the second quarter. The new facility provides us with increased financial flexibility. We believe this demonstrates a general confidence in our track record and financial performance."
Balance Sheet
At June 30, 2014, Huttig had $3.5 million of cash and cash equivalents plus $42.1 million of excess availability under its credit facility for total available liquidity of $45.6 million. A year ago, Huttig had $1.4 million of cash and cash equivalents plus $39.6 million of excess availability under its credit facility for total available liquidity of $41.0 million. Total debt was $88.9 million and $69.5 million at June 30, 2014 and 2013, respectively.
Non-GAAP Financial Measures
Huttig supplements its reporting of net income (loss) with the non-GAAP measurement of Adjusted EBITDA. This supplemental information should not be considered in isolation or as a substitute for GAAP measurements. Additional information regarding Adjusted EBITDA referred to in this press release is included below under "Reconciliation of Non-GAAP Measures."
About Huttig
Huttig Building Products, Inc., currently in its 130th 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. The Company'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 information as defined by the United States Private Securities Litigation Reform Act of 1995. This information presents management's expectations, beliefs, plans and objectives regarding future financial performance, and assumptions or judgments concerning such performance. Any discussions contained in this press release, except to the extent that they contain historical facts, are forward-looking and accordingly involve estimates, assumptions, judgments and uncertainties. Factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking information, include but are not limited, to changes relating to future 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, obligations with respect to environmental remediation and financial impact of litigation or contingencies. Other important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission and in other reports filed by the Company with the Securities and Exchange Commission from time to time. For additional information, see the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.
SUMMARY OF SECOND QUARTER RESULTS
(unaudited)
(In Millions, Except Per Share Data)
Three Months Ended June 30,
--------------------------------
2014 2013
--------------- --------------
Net sales $ 168.7 100.0% $ 148.9 100.0%
Gross margin $ 33.5 19.9% $ 29.8 20.0%
Operating expenses $ 29.4 17.4% $ 26.2 17.6%
Operating income $ 4.1 2.4% $ 3.6 2.4%
Income from continuing operations $ 3.4 2.0% $ 2.8 1.9%
Income from continuing operations per
share -
basic and diluted $ 0.14 $ 0.11
Cash (used in) provided by operating
activities $ (7.8) $ 3.9
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,
------------------ ------------------
2014 2013 2014 2013
-------- -------- -------- --------
Net sales $ 168.7 $ 148.9 $ 304.0 $ 273.4
Cost of sales 135.2 119.1 244.0 220.5
-------- -------- -------- --------
Gross margin 33.5 29.8 60.0 52.9
Operating expenses 29.4 26.2 56.1 50.7
-------- -------- -------- --------
Operating income 4.1 3.6 3.9 2.2
Interest expense, net 0.7 0.8 1.3 1.4
-------- -------- -------- --------
Income from continuing operations
before income taxes 3.4 2.8 2.6 0.8
Provision for income taxes - - - -
-------- -------- -------- --------
Income from continuing operations 3.4 2.8 2.6 0.8
Loss from discontinued operations,
net of taxes (0.2) (0.2) (3.4) (0.2)
-------- -------- -------- --------
Net income (loss) $ 3.2 $ 2.6 $ (0.8) $ 0.6
======== ======== ======== ========
Net income from continuing
operations per share-basic and
diluted $ 0.14 $ 0.11 $ 0.11 $ 0.03
Net loss from discontinued
operations per share-basic and
diluted (0.01) - (0.14) (0.01)
Net income (loss) per share - basic
and diluted $ 0.13 $ 0.11 $ (0.03) $ 0.02
Weighted average shares outstanding:
Basic shares outstanding 23.6 22.8 23.4 22.7
Diluted shares outstanding 23.6 22.9 23.5 22.7
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(In Millions)
June 30, December 31, June 30,
2014 2013 2013
----------- ------------ -----------
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 3.5 $ 0.6 $ 1.4
Trade accounts receivable, net 69.4 44.3 59.5
Inventories 77.4 66.7 58.7
Other current assets 6.5 7.2 5.7
----------- ------------ -----------
Total current assets 156.8 118.8 125.3
----------- ------------ -----------
PROPERTY, PLANT AND EQUIPMENT
Land 4.3 4.3 4.3
Buildings and improvements 24.6 24.2 23.9
Machinery and equipment 34.9 34.2 32.4
----------- ------------ -----------
Gross property, plant and
equipment 63.8 62.7 60.6
Less accumulated depreciation 47.4 46.1 44.8
----------- ------------ -----------
Property, plant and equipment,
net 16.4 16.6 15.8
----------- ------------ -----------
OTHER ASSETS:
Goodwill 6.3 6.3 6.3
Other 2.3 1.9 2.1
Deferred income taxes 7.7 7.9 7.4
----------- ------------ -----------
Total other assets 16.3 16.1 15.8
----------- ------------ -----------
TOTAL ASSETS $ 189.5 $ 151.5 $ 156.9
=========== ============ ===========
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(unaudited)
(In Millions, Except Share Data)
June 30, December 31, June 30,
2014 2013 2013
----------- ------------ -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term
debt $ 0.6 $ 1.2 $ 0.2
Trade accounts payable 52.0 40.8 44.4
Deferred income taxes 7.7 7.9 7.4
Accrued compensation 2.9 3.5 2.0
Other accrued liabilities 11.8 13.1 12.3
----------- ------------ -----------
Total current liabilities 75.0 66.5 66.3
----------- ------------ -----------
NON-CURRENT LIABILITIES:
Long-term debt, less current
maturities 88.3 60.8 69.3
Other non-current liabilities 4.2 1.3 1.6
----------- ------------ -----------
Total non-current liabilities 92.5 62.1 70.9
----------- ------------ -----------
SHAREHOLDERS' EQUITY
Preferred shares; $.01 par
(5,000,000 shares authorized) - - -
Common shares; $.01 par
(50,000,000 shares authorized:
24,572,371; 24,317,192; and
24,920,195 shares issued at June
30, 2014, December 31, 2013 and
June 30, 2013, respectively) 0.2 0.2 0.2
Additional paid-in capital 39.7 39.8 39.2
Accumulated deficit (17.9) (17.1) (19.7)
----------- ------------ -----------
Total shareholders' equity 22.0 22.9 19.7
----------- ------------ -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 189.5 $ 151.5 $ 156.9
=========== ============ ===========
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,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Cash Flows From Operating
Activities:
Net income (loss) $ 3.2 $ 2.6 $ (0.8) $ 0.6
Adjustments to reconcile net
income (loss) to net cash
(used in) provided by
operating activities:
Net loss from discontinued
operations 0.2 0.2 3.4 0.2
Depreciation and
amortization 0.7 0.7 1.5 1.3
Non-cash interest expense 0.1 0.1 0.2 0.2
Stock-based compensation 0.4 0.3 0.7 0.5
Changes in operating assets
and liabilities:
Trade accounts receivable (9.2) (4.9) (25.1) (17.4)
Inventories (2.3) 5.4 (10.7) (3.7)
Trade accounts payable (0.6) 0.7 11.2 12.8
Other (0.3) (1.2) (1.9) (3.1)
--------- --------- --------- ---------
Total cash (used in)
provided by operating
activities (7.8) 3.9 (21.5) (8.6)
--------- --------- --------- ---------
Cash Flows From Investing
Activities:
Capital expenditures (0.6) (0.5) (0.9) (1.3)
--------- --------- --------- ---------
Total cash used in investing
activities (0.6) (0.5) (0.9) (1.3)
--------- --------- --------- ---------
Cash Flows From Financing
Activities:
Borrowings of debt, net 9.5 (3.2) 26.1 9.4
Repurchase shares of common
stock - - (0.8) (0.4)
--------- --------- --------- ---------
Total cash provided by (used
in) financing activities 9.5 (3.2) 25.3 9.0
--------- --------- --------- ---------
Net increase (decrease) in cash
and equivalents 1.1 0.2 2.9 (0.9)
Cash and equivalents, beginning
of period 2.4 1.2 0.6 2.3
--------- --------- --------- ---------
Cash and equivalents, end of
period $ 3.5 $ 1.4 $ 3.5 $ 1.4
========= ========= ========= =========
Reconciliation of Non-GAAP Measures
The Company defines Adjusted EBITDA as net income (loss) adjusted for interest, income taxes, depreciation and amortization and other special significant items as listed in the table below.
We present Adjusted EBITDA because it is a primary measure used by management, and in our industry, to evaluate operating performance and 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 (loss) as a measure of operating performance. We compensate 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 other than GAAP results alone. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Adjusted EBITDA (unaudited)
The following table presents a reconciliation of net income (loss), the most directly comparable financial measure under U.S. GAAP, to Adjusted EBITDA for the periods presented (amounts in millions):
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED ADJUSTED EBITDA
(unaudited)
(In Millions)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2014 2013 2014 2013
--------- --------- --------- ---------
Net income (loss) $ 3.2 $ 2.6 $ (0.8) $ 0.6
Discountinued operations 0.2 0.2 3.4 0.2
Interest expense, net 0.7 0.8 1.3 1.4
Provision for income taxes - - - -
Depreciation and amortization 0.7 0.7 1.5 1.3
Stock compensation expense 0.4 0.3 0.7 0.5
--------- --------- --------- ---------
Adjusted EBITDA $ 5.2 $ 4.6 $ 6.1 $ 4.0
--------- --------- --------- ---------
For more information, contact: Don Hake investor@huttig.com