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General Building Materials

General Building Materials (GBMI), with the stock symbol USLM, is a public company that operates in the building materials industry in the United States. The company's primary focus is on the wholesale distribution of specialty building materials, such as doors, windows, and millwork, to customers in the new construction and repair and remodel markets.

Historically, GBMI has reported stable revenue growth over the past few years, although revenue for the most recent year decreased slightly compared to the previous year. In 2020, the company reported net sales of $267.6 million, a decrease of 2.3% compared to $273.9 million in 2019. This decrease in revenue was largely due to the impact of the COVID-19 pandemic on the construction industry.

However, the company has managed to maintain a strong gross profit margin, which has remained above 20% for the past five years. In 2020, GBMI reported a gross profit margin of 21.3%, up from 20.9% in 2019. This indicates that the company has been able to effectively manage its costs and maintain healthy profitability, even during times of economic uncertainty.

In terms of earnings, GBMI reported net income of $6.3 million in 2020, down from $11.2 million in 2019. This decrease in net income was primarily due to the decline in revenue and higher operating expenses. However, the company has maintained a positive earnings trend over the past five years, with net income increasing from $1.9 million in 2016 to $11.2 million in 2019.

GBMI has also demonstrated a solid balance sheet, with a strong cash position and low debt levels. The company had $10.1 million in cash and cash equivalents as of December 31, 2020, and total debt of $1.5 million. This healthy balance sheet provides the company with flexibility to invest in growth opportunities and navigate economic challenges.

In conclusion, while GBMI's revenue was affected by the COVID-19 pandemic in 2020, the company has a strong track record of revenue growth, healthy gross profit margins, and positive net income. Additionally, GBMI's balance sheet is solid, with a strong cash position and low debt levels. These factors position GBMI well for future growth and success in the building materials industry.