Huttig Building Products, Inc. Announces Third Quarter 2013 Results

Huttig Building Products, Inc. Announces Third Quarter 2013 Results 
ST. LOUIS, MO -- (Marketwired) -- 11/01/13 --  Huttig Building
Products, Inc. (OTCQB: HBPI), a leading domestic distributor of
millwork, building materials and wood products, today announced
results of operations for the three months ended September 30, 2013. 
Third Quarter 2013 Highlights 


 
--  Huttig reported third quarter 2013 sales of $153.3 million, an
    increase of 9% from the 2012 third quarter.
    
    
--  Huttig reported operating income of $3.8 million in 2013 compared to
    $4.4 million in 2012, which included a $2.4 million gain on disposal
    of assets.
    
    
--  Huttig reported income from continuing operations of $3.2 million in
    2013 compared to $3.7 million in 2012, which included a $2.4 million
    gain on disposal of assets.
    
    
--  Huttig's total available liquidity was $53.7 million at September 30,
    2013.

  
"We are pleased with our continued financial improvement in the third
quarter. It is our tenth consecutive quarter of improved net income
over the comparable prior year period, excluding significant special
items," said Jon Vrabely, Huttig's President and CEO. "We continue to
focus on executing our profitable growth strategy which we believe
will be aided by the recent execution of a supply agreement with CPG
Building Products that authorizes Huttig to distribute the entire
line of AZEK and TimberTech decking, railing and trim products in 13
locations through the east region. We are generating positive cash
flow from operations and positive earnings, which increases our
ability to pursue growth opportunities as the market recovers." 


 
                                                                            
Summary of Third Quarter Results                                            
($ in millions, except per share data)                                      
                                            Three Months Ended September 30,
                                            --------------------------------
                                                  2013             2012     
                                            ---------------  ---------------
Net sales                                   $ 153.3  100.0%  $ 141.1  100.0%
Gross margin                                $  30.8   20.1%  $  27.6   19.6%
Operating expenses                          $  27.0   17.6%  $  25.6   18.1%
Gain on disposal of assets                  $     -       -  $   2.4    1.7%
Operating income                            $   3.8    2.5%  $   4.4    3.1%
Income from continuing operations           $   3.2    2.1%  $   3.7    2.6%
Net income from continuing operations per                                   
 share - basic and diluted                  $  0.13          $  0.15        
Cash provided by operating activities       $   9.5          $   2.7        

 
Balance Sheet 
At September 30, 2013, Huttig had $3.0 million of cash and cash
equivalents plus $50.7 million of excess availability under its
credit facility for total available liquidity of $53.7 million. A
year ago, Huttig had $1.0 million of cash and cash equivalents plus
$36.2 million of excess availability under its credit facility for
total available liquidity of $37.2 million. Total debt was $62.4
million and $62.5 million at September 30, 2013 and 2012,
respectively. 
More detailed information about Huttig's financial results for the
three and nine months ended September 30, 2013 is included in
Huttig's Quarterly Report on Form 10-Q, which was filed on October
31, 2013. 
About Huttig  
Huttig Building Products, Inc., currently in its 128th 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 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. There are known and unknown
factors that could cause actual results or outcomes to differ
materially from those addressed in the forward-looking information.
Such known factors are detailed in the Company's Annual Report on
Form 10-K for the year ended December 31, 2012 and its Quarterly
Report on Form 10-Q for the quarter ended September 30, 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.                   


 
                                                                            
                                                                            
                                                                            
                                                                            
               HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY                
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (unaudited)                                 
                    (In Millions, Except Per Share Data)                    
                                                                            
                                                                            
                                   Three Months Ended    Nine Months Ended  
                                     September 30,         September 30,    
                                  -------------------   ------------------- 
                                    2013       2012       2013       2012   
                                  --------   --------   --------   -------- 
Net sales                         $  153.3   $  141.1   $  426.7   $  395.5 
Cost of sales                        122.5      113.5      343.0      319.2 
                                  --------   --------   --------   -------- 
  Gross margin                        30.8       27.6       83.7       76.3 
Operating expenses                    27.0       25.6       77.7       73.9 
Gain on disposal of assets               -       (2.4)         -       (2.4)
                                  --------   --------   --------   -------- 
  Operating income                     3.8        4.4        6.0        4.8 
Interest expense, net                  0.5        0.7        1.9        2.2 
                                  --------   --------   --------   -------- 
Income from continuing                                                      
 operations before income taxes        3.3        3.7        4.1        2.6 
Provision for income taxes             0.1          -        0.1          - 
                                  --------   --------   --------   -------- 
Income from continuing                                                      
 operations                            3.2        3.7        4.0        2.6 
Loss from discontinued                                                      
 operations, net of taxes             (0.2)      (0.1)      (0.4)      (0.3)
                                  --------   --------   --------   -------- 
Net income                        $    3.0   $    3.6   $    3.6   $    2.3 
                                  ========   ========   ========   ======== 
                                                                            
Net income from continuing                                                  
 operations per share - basic                                               
 and diluted                      $   0.13   $   0.15   $   0.16   $   0.10 
Net loss from discontinued                                                  
 operations per share - basic                                               
 and diluted                         (0.01)     (0.01)     (0.01)     (0.01)
                                  --------   --------   --------   -------- 
Net income per share - basic and                                            
 diluted                          $   0.12   $   0.14   $   0.15   $   0.09 
                                  ========   ========   ========   ======== 
                                                                            
Weighted average shares                                                     
 outstanding:                                                               
  Basic shares outstanding            22.9       23.0       22.7       22.9 
  Diluted shares outstanding          22.9       23.0       22.8       22.9 
                                                                            
                                                                            
                                                                            
                                                                            
                HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY               
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                                 (unaudited)                                
                                (In Millions)                               
                                                                            
                                 September 30,   December 31,  September 30,
                                      2013           2012           2012    
                                 -------------  -------------  -------------
                                                                            
ASSETS                                                                      
CURRENT ASSETS:                                                             
  Cash and equivalents           $         3.0  $         2.3  $         1.0
  Trade accounts receivable, net          60.3           41.7           57.5
  Inventories                             61.3           55.0           56.5
  Other current assets                     5.6            7.3            6.5
                                 -------------  -------------  -------------
    Total current assets                 130.2          106.3          121.5
                                 -------------  -------------  -------------
                                                                            
PROPERTY, PLANT AND EQUIPMENT                                               
  Land                                     4.3            4.3            4.3
  Building and improvements               24.1           23.8           23.7
  Machinery and equipment                 33.0           31.2           30.9
                                 -------------  -------------  -------------
    Gross property, plant and                                               
     equipment                            61.4           59.3           58.9
  Less accumulated depreciation           45.4           43.7           43.1
                                 -------------  -------------  -------------
    Property, plant and                                                     
     equipment, net                       16.0           15.6           15.8
                                 -------------  -------------  -------------
                                                                            
OTHER ASSETS:                                                               
  Goodwill                                 6.3            6.3            8.2
  Other                                    2.0            2.2            1.6
  Deferred income taxes                    7.2            7.1            7.3
                                 -------------  -------------  -------------
    Total other assets                    15.5           15.6           17.1
                                 -------------  -------------  -------------
TOTAL ASSETS                     $       161.7  $       137.5  $       154.4
                                 =============  =============  =============
                                                                            
                                                                            
                                                                            
                                                                            
               HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY                
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                (unaudited)                                 
                      (In Millions, Except Share Data)                      
                                                                            
                              September 30,    December 31,   September 30, 
                                   2013            2012            2012     
                              -------------   -------------   ------------- 
                                                                            
LIABILITIES AND                                                             
 SHAREHOLDERS' EQUITY                                                       
CURRENT LIABILITIES:                                                        
 Current maturities of long-                                                
  term debt                   $         0.3   $         0.6   $           - 
 Trade accounts payable                50.6            31.2            40.7 
 Deferred income taxes                  7.2             7.1             7.3 
 Accrued compensation                   3.9             4.1             3.9 
 Other accrued liabilities             13.0            14.3            15.2 
                              -------------   -------------   ------------- 
   Total current liabilities           75.0            57.3            67.1 
                              -------------   -------------   ------------- 
NON-CURRENT LIABILITIES:                                                    
 Long-term debt, less                                                       
  current maturities                   62.1            59.2            62.5 
 Other non-current                                                          
  liabilities                           1.5
             1.9             2.0 
                              -------------   -------------   ------------- 
   Total non-current                                                        
    liabilities                        63.6            61.1            64.5 
                              -------------   -------------   ------------- 
                                                                            
SHAREHOLDERS' EQUITY                                                        
 Preferred shares; $.01 par                                                 
  (5,000,000 shares                                                         
  authorized)                             -               -               - 
 Common shares; $.01 par                                                    
  (50,000,000 shares                                                        
  authorized: 24,314,942;                                                   
  23,920,195; and 24,896,596                                                
  shares issued at September                                                
  30, 2013, December 31,                                                    
  2012 and September 30,                                                    
  2012, respectively)                   0.2             0.2             0.2 
 Additional paid-in capital            39.6            39.2            40.1 
 Accumulated deficit                  (16.7)          (20.3)          (17.5)
                              -------------   -------------   ------------- 
   Total shareholders'                                                      
    equity                             23.1            19.1            22.8 
                              -------------   -------------   ------------- 
                                                                            
TOTAL LIABILITIES AND                                                       
 SHAREHOLDERS' EQUITY         $       161.7   $       137.5   $       154.4 
                              =============   =============   ============= 
                                                                            
                                                                            
                                                                            
                                                                            
               HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARY                
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                (unaudited)                                 
                               (In Millions)                                
                                                                            
                                Three Months Ended      Nine Months Ended   
                                  September 30,           September 30,     
                              ---------------------   --------------------- 
                                 2013        2012        2013        2012   
                              ---------   ---------   ---------   --------- 
Cash Flows From Operating                                                   
 Activities:                                                                
    Net income                $     3.0   $     3.6   $     3.6   $     2.3 
    Adjustments to reconcile                                                
     net income to net cash                                                 
     provided by (used in)                                                  
     operating activities:                                                  
      Net loss from                                                         
       discontinued                                                         
       operations                   0.2         0.1         0.4         0.3 
      Depreciation and                                                      
       amortization                 0.8         0.8         2.3         2.4 
      Stock-based                                                           
       compensation                 0.3         0.2         0.8         0.6 
    Gain on disposal of                                                     
     assets                           -        (2.4)          -        (2.4)
      Changes in operating                                                  
       assets and                                                           
       liabilities:                                                         
      Trade accounts                                                        
       receivable                  (1.2)       (0.9)      (18.6)      (18.1)
      Inventories                  (2.6)        3.4        (6.3)      (11.7)
      Trade accounts payable        6.6        (4.0)       19.4        12.4 
      Other                         2.4         1.9        (0.7)        2.8 
                              ---------   ---------   ---------   --------- 
      Total cash provided by                                                
       (used in) operating                                                  
       activities                   9.5         2.7         0.9       (11.4)
                              ---------   ---------   ---------   --------- 
Cash Flows From Investing                                                   
 Activities:                                                                
  Capital expenditures             (0.2)       (0.6)       (1.5)       (1.5)
  Proceeds from disposition                                                 
   of capital assets                  -         3.3           -         3.3 
                              ---------   ---------   ---------   --------- 
      Total cash (used in)                                                  
       provided by investing                                                
       activities                  (0.2)        2.7        (1.5)        1.8 
                              ---------   ---------   ---------   --------- 
Cash Flows From Financing                                                   
 Activities:                                                                
    Borrowings (payments) of                                                
     debt, net                     (7.7)       (6.0)        1.7         9.9 
    Repurchase shares of                                                    
     common stock                     -           -        (0.4)          - 
                              ---------   ---------   ---------   --------- 
      Total cash (used in)                                                  
       provided by financing                                                
       activities                  (7.7)       (6.0)        1.3         9.9 
                              ---------   ---------   ---------   --------- 
Net increase (decrease) in         
                                         
 cash and equivalents               1.6        (0.6)        0.7         0.3 
Cash and equivalents,                                                       
 beginning of period                1.4         1.6         2.3         0.7 
                              ---------   ---------   ---------   --------- 
Cash and equivalents, end of                                                
 period                       $     3.0   $     1.0   $     3.0   $     1.0 
                              =========   =========   =========   ========= 
                                                                            
Supplemental Disclosure of                                                  
 Cash Flow Information:                                                     
    Interest paid             $     0.5   $     0.6   $     1.7   $     1.9 
    Income taxes paid                 -           -         0.1         0.1 

  
For additional information:  
Don Hake
Huttig Building Products, Inc.
555 Maryville University Drive, # 400
St. Louis, MO 63141
PO Box 1041
Chesterfield, MO 63006
Investor@huttig.com 
 
 
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