Huttig Building Products Inc. (NASDAQ:HBP) Q3 2018 Earnings Conference Call Transcript
Oct 30, 2018 • 11:00 am ET
Good morning and welcome to the Huttig Building Products Third Quarter 2018 Earnings Call. Participants will be in listen-only mode until the end of the call, when the company will have a question-and-answer session, please limit your question to one question and one follow-up question.
I would now like to turn the call over to Philip Keipp. Please go ahead, sir.
Philip W. Keipp
Thank you and welcome to Huttig's Third Quarter 2018 Earnings Call. As previously announced, I have rejoined the company as Vice President and CFO, where I served in that capacity from July 2009 through June 2015. I am excited to be back and work with the senior leadership team and the organization to help drive the execution of our strategic growth initiatives.
With me this morning is Jon Vrabely, President and CEO and Bob Furio, Executive Vice President and COO. During the call today, we will discuss our third quarter operating and financial results, and provide commentary on our progress in executing our strategic growth initiatives. Following the prepared remarks, the call will be opened up for questions.
(Forward-Looking Cautionary Statements)
Today's call is being webcast live and recorded. If you ask a question, it will be included in our live transmission and in any future use of the recording. You can replay the call on the Investor Relations page of the website under financials.
And now it is my pleasure to turn the call over to Bob.
Good morning, and thank you for joining our third quarter 2018 earnings call. I will provide a financial update on our strategic growth initiatives and Phil will discuss our financial performance in the quarter and for the first nine months of the year.
As previously stated, since embarking on the accelerated growth strategy in early 2017. Our goal is to transform Huttig into a more diversified company, making us less susceptible to the volatility of the new residential construction market, while simultaneously creating significant sustainable above market growth opportunities for many years into the future.
To that end, we have invested in growth initiatives to expand our value add door fabrication services as well as product line additions and expansions. The investments we have made offer the opportunity to continue to grow in the traditional market segments we currently serve with our core customers while simultaneously positioning us to grow in a variety of products, market segments and customer segments that have historically not been core to our business.
Even though we are still in the early stages of implementing and executing our transformational growth strategy, our total sales growth in the third quarter of 2018 of 11.2% and year-to-date growth of 12.1% has clearly demonstrated that the strategy is working.
Based on our market segment revenue mix, we have and continue to grow at a rate that is approximately twice that of the residential construction markets we serve. Growths from the investments we made in our strategic initiatives accounted for over 60% of our total growth in the quarter. We estimate