Source:newsobserver.com
Stock Building Supply, which filed plans for an initial public offering of stock in June, expects to turn a profit in the second quarter of this year.
The Raleigh-based company reported in an updated securities filing that it expects net income of between $1.3 million and $2.3 million, compared to a loss of $2.2 million during the same period in 2012.
The company expects net sales of between $313.7 million and $315.3 million in the second quarter, or about 27 percent higher than the same period last year. For the first six months of 2013, Stock expects net sales of between $562.4 million and $564 million, up from $434.4 million last year.
Stock attributed the increasing sales to "the improving residential construction market and increased selling prices for lumber and lumber sheet goods."
Stock, founded in 1922 as Carolina Builders, sells windows, doors, roofing and other housing materials.
The company posted net losses the last two years - $42.1 million in 2011 and $14.2 million last year. But Stock's sales have been rising, increasing 24 percent to $942 million last year.
The company has not scheduled a date for its IPO. In its initial filing in June, Stock said it hoped to raise as much as $175 million in an IPO.
The company's revised filing does not include a maximum amount that Stock is proposing to raise.
Stock plans to use $60 million of the proceeds from the IPO to pay off a revolving credit line, according to its filings. An additional $9 million would be paid to The Gores Group to terminate a management services agreement.
Stock had about $100 million in debt as of the end of March.
The company expects net sales of between $313.7 million and $315.3 million in the second quarter, or about 27 percent higher than the same period last year. For the first six months of 2013, Stock expects net sales of between $562.4 million and $564 million, up from $434.4 million last year.
Stock attributed the increasing sales to "the improving residential construction market and increased selling prices for lumber and lumber sheet goods."
Stock, founded in 1922 as Carolina Builders, sells windows, doors, roofing and other housing materials.
The company posted net losses the last two years - $42.1 million in 2011 and $14.2 million last year. But Stock's sales have been rising, increasing 24 percent to $942 million last year.
The company has not scheduled a date for its IPO. In its initial filing in June, Stock said it hoped to raise as much as $175 million in an IPO.
The company's revised filing does not include a maximum amount that Stock is proposing to raise.
Stock plans to use $60 million of the proceeds from the IPO to pay off a revolving credit line, according to its filings. An additional $9 million would be paid to The Gores Group to terminate a management services agreement.
Stock had about $100 million in debt as of the end of March.