Stella-Jones' 2Q 2020 sales reached $768 million, up $101 million, or 15%, versus sales of $667 million for the corresponding period last year.
2Q 2020 net income was $69 million, or $1.02 per diluted share, versus net income of $52 million, or $0.76 per share, last year.
“We are pleased with our financial performance, as each of our three core product categories continued to deliver improved results. Bolstered by exceptional demand for residential lumber, we realized double-digit sales growth of 15% and increased EBITDA by 28% to $120 million this quarter, surpassing the $100 million mark for the first time in a single quarter. We generated $146 million of cash from operations and reduced our leverage, further improving our financial strength and flexibility. Based on our strong quarterly performance and resilient business model, we have increased our annual 2020 EBITDA guidance and announced our intention to repurchase up to 3,000,000 of the Company’s outstanding shares, under a Normal Course Issuer Bid,” stated Éric Vachon, President and CEO of Stella-Jones.
1H 2020 sales amounted to $1.28 billion, versus $1.11 billion for the corresponding period last year. The improvement in sales led to an increase in gross profit, which grew 20% to $214 million, compared to the prior year period
1H 2020 operating income was $146 million, or 11.4% of sales, compared with $123 million, or 11.1% of sales last year. EBITDA rose to $183 million, up 16%, compared to $158 million reported in the prior year period, reflecting an EBITDA margin of 14.3%. Net income totalled $97 million, or $1.43 per diluted share, versus $81 million, or $1.18 per diluted share last year.
Stella-Jones Inc. is a leading producer and marketer of pressure-treated wood products.
