Huttig Building Products, Inc. (“Huttig”) (NASDAQ: HBP), a leading domestic distributor of millwork, building materials and wood products, today reported financial results for the third quarter ended September 30, 2015.
Jon Vrabely, President and CEO stated, “We are pleased with the continued improvement in our financial performance achieved in the third quarter. This represents our 18th consecutive quarter of year over year improved performance, excluding unusual items. We were successful in growing our revenue, gross profit, and earnings while continuing to invest in our strategic initiatives to accelerate profitable revenue growth and continued improved financial performance. In the third quarter, we released $21.7 million of our valuation allowance related to our net deferred tax assets demonstrating our confidence that we will realize a substantial portion of our net operating loss (NOL) carryforwards in future years. In addition, our final remedial action work plan related to the Missoula, Montana property was approved by the Montana Department of Environmental Quality and we anticipate implementing the plan and commencing field work this year.”
Net sales in the third quarter of 2015 were $181.7 million, representing a 4% increase over net sales of $174.5 million for the prior year’s third quarter.
Operating income in the third quarter of 2015 was $6.4 million, representing a 52% increase over operating income of $4.2 million for the prior year’s third quarter.
Adjusted EBITDA was $7.6 million in the third quarter of 2015, representing a 43% increase over Adjusted EBITDA of $5.3 million for the prior year’s third quarter.
Total available liquidity was $71.2 million at September 30, 2015, representing a 26% increase over total liquidity of $56.4 million at September 30, 2014.
Income tax benefit was $17.4 million in the third quarter of 2015 as a result of the release of a significant portion of Huttig’s valuation allowance related to federal and certain state NOL carryforwards that are more likely than not to be realized. No income tax expense or benefit was recognized in 2014.
Income from continuing operations was $23.2 million in the third quarter of 2015 compared to $3.6 million for the prior year’s third quarter.
Net income in the third quarter of 2015 was $20.5 million compared to $3.5 million in the prior year quarter. Third quarter net income included after tax charges from discontinued operations of $2.7 million in 2015 compared to $0.1 million in the prior year’s quarter. The charge in the third quarter of 2015 resulted primarily from a change in the estimated liability associated with the Missoula, Montana environmental remediation accrual.