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BMC Stock Holdings (Nasdaq: BMCH) | Company Profile, History, Competitors

 

BMC Stock Holdings (NASDAQ: BMCH) is a lumber and building materials distributor in the United States. As of 2017, BMC has 149  store locations in the United States. It was founded in 1987 and headquartered in Atlanta, GA.

BMC was formed in 1987 as a management buyout of the lumber business of Boise Cascade. BMC provides lumber, finished plywood, oriented strandboard (OSB), doors, building supplies and and ready-made parts for homebuilders and remodelling contractors.

Business Overview

BMC operates in four main segments:
  • Lumber & Lumber Sheet Good (33% of 2017 Revenues): Sells dimensional lumber, plywood, and OSB products for framing.
  • Millwork (27% of 2017 Revenues): Sells doors, trim, millwork and cabinets.
  • Other Building Products (17% of 2017 Revenues): Sells hardware, cabinets, gypsum, roofing, flooring, insulation as well as design assistance and installation.
  • Structural Components (16% of 2017 Revenue) Sells ready-made parts that contractors can use. These include trusses, wall panels, engineered wood and their Ready-Frame packages.

Customers

BMC targets customers across 43 regions in 18 states including new construction, homebuilders and remodelling contractors. Some of its largest customers include DR Horton, Hovnanian, Lennar and Toll Brothers.

History

The company was founded in 1987 as a management buyout from executives at Boise Cascade lumber company. The management team was funded by a private equity firm McCown De Leeuw & Co. The entity was called BMC West.

In 1991, BMC West went public. In 1997, BMC West formed a holding company called BMHC. In 2009, the company filed for Chapter 11 bankruptcy. In 2010, the company emerged from bankruptcy largely owned by its lender Wells Fargo.

In 2015, BMC merged with Stock Building Company in a reverse merger.

Competitors

BMC's main lumber distribution competitors are Builders FirstSource, US LBM, 84 Lumber and Carter Lumber.

Management

David L. Keltner (CEO): David L. Keltner serves as CEO since 2018. Prior, he was CFO of Ferguson Enterprises and CFO of Wolseley North America.

James F. Major Jr. (CFO): James Major serves as CFO since 2015. Prior, he was CFO of Stock Building Supply Holdings. He had also worked as an Audit Manager at PriceWaterhouseCoopers.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $1,197 
$1,312 
$1,577 
$3,094 
$3,366 
 Gross Profit $274 
$295 
 $361 
 $742 
 $796 
 Operating Profit $1 
$54 
 $12 
 $84 
 $101 
 Net Income($7)$94 
($5) $31 
$57 
 EPS($0.36)$2.39 
($0.12)
$0.46 
$0.85 

BMC Stock Holdings
 
  Ticker     NASDAQ: BMCH
  Industry Homebuilding
  Founded 1987
  Headquarters Atlanta, GA
  Locations 149
  Revenues
$3.4bn (2017)
  Employees 9,100 (2017)
  Website buildwith
bmc.com