Revenue during the quarter surged 97.18 percent to $821.20 million from $416.47 million in the previous year period. Gross margin for the quarter expanded 140 basis points over the previous year period to 24.72 percent. Total expenses were 95.90 percent of quarterly revenues, down from 96.33 percent for the same period last year. This has led to an improvement of 43 basis points in operating margin to 4.10 percent.

Operating income for the quarter was $33.68 million, compared with $15.30 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $58.20 million compared with $41.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 276 basis points in the quarter to 7.09 percent from 9.85 percent in the last year period.

Peter Alexander, president and chief executive officer of BMC, commented, "In the third quarter, our employees continued to provide best-in-class customer service and solutions to grow revenue and further improve profitability. Net sales for the quarter increased 97.2% compared to net sales in the third quarter of 2015 and grew 6.0% when compared to Adjusted net sales in the third quarter of 2015, including millwork, doors and windows Adjusted net sales growth of 9.7%. Another important component of the third quarter net sales growth was ReadyFrame®, our whole-house solution, which enables builders to frame houses 20 to 30 percent faster with less labor and significantly less waste. I am extremely pleased that ReadyFrame®, which grew 43% to $28.6 million in net sales during the quarter, is now available in all of our major markets, setting the stage for substantial future growth capacity for this innovative product offering."

The company has spent $23.91 million cash to meet investing activities during the nine month period as against cash outgo of $146.73 million in the last year period. It has incurred net capital expenditure of $25.06 million on net basis during the nine month period, up 36.84 percent or $6.75 million from year ago period.

The company has spent $34.25 million cash to carry out financing activities during the nine month period as against cash inflow of $98.88 million in the last year period.

Cash and cash equivalents stood at $6.75 million as on Sep. 30, 2016, up 93.30 percent or $3.26 million from $3.49 million on Sep. 30, 2015.

Working capital increases sharply
BMC Stock Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $378.19 million as at Sep. 30, 2016, up 158.99 percent or $232.16 million from $146.02 million on Sep. 30, 2015. Current ratio was at 2.18 as on Sep. 30, 2016, up from 2.09 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 35 days for the last year period. Days sales outstanding went down to 27 days for the quarter compared with 30 days for the same period last year.

Days inventory outstanding has decreased to 21 days for the quarter compared with 31 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 26 for the same period last year.