Huttig Building Products (NASDAQ: HBP) has received an unsolicited offer from Mill Road Capital Management to acquire all common stock at $2.75 per share. The Board of Directors will review this proposal with financial and legal advisors to decide on the best course of action for shareholders. Huttig, a major distributor of millwork and building materials, operates 25 distribution centers across 41 states, focusing on the residential construction and home improvement markets. Future updates will be provided as required by disclosure regulations.
Huttig Building Products (HBP) reported Q2 2020 net sales of $192.0 million, down 12.1% from $218.5 million in Q2 2019. The gross margin slightly decreased to 20.2%. Operating income stood at $2.5 million, affected by a $1.5 million restructuring charge, yet improved from $1.3 million in Q2 2019. Liquidity improved to $56.0 million, with senior debt reduced by $32.2 million. With a strategic response to COVID-19, Huttig closed two branches and reduced personnel costs, showcasing adaptability amidst economic uncertainty.
Huttig Building Products (HBP) reported a 2.8% increase in net sales to $203.0 million for Q1 2020, driven by new residential construction. Gross margin improved to 20.1% from 18.9%. However, the company faced an operating loss of $7.6 million, impacted by a $9.5 million goodwill impairment charge. Adjusted EBITDA stood at $3.5 million, up from a loss of $0.3 million a year earlier. Total liquidity increased to $55.4 million. The company anticipates significant impact from COVID-19, prompting adjustments in operations and cost containment measures.