home Latest News BlueLinx Announces Second-Quarter Results – GlobeNewswire (press release)

BlueLinx Announces Second-Quarter Results – GlobeNewswire (press release)

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– Net Income of $3.2 Million; Best Second Quarter Since 2008 –
– Adjusted EBITDA of $12.8 Million; Best Second Quarter Since 2008 –
– Gross Margin of 12.8%, up 150 Basis Points From Q2 2016 –    
– Debt Principal Reduction of $76.4 Million From Q2 2016 –
ATLANTA, Aug. 10, 2017 (GLOBE NEWSWIRE) —  BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building and industrial products in the United States, today reported financial results for the fiscal second quarter ended July 1, 2017.“We continue to make progress in our local market and sales excellence emphasis, which coupled with our ongoing deleveraging efforts, enabled us to improve our financial performance while significantly reducing our debt from prior year levels. As we remain focused on our customers and markets, our team is energized and motivated to continue improving our operating results and garnering market share,” said Mitch Lewis, President and Chief Executive Officer.Susan O’Farrell, Senior Vice President and Chief Financial Officer added, “With the successful completion of our operational efficiency initiatives, we have experienced excellent performance this quarter, even with fewer facilities. Our commitment to improving our business resulted in our best second quarter net income, gross margin, and Adjusted EBITDA results since 2008.“We have also significantly reduced our debt principal by $76.4 million from this period a year ago.  We continue to focus on deleveraging our balance sheet while actively marketing certain owned facilities for sale leaseback opportunities and exploring financing alternatives. Furthermore, with the working capital efficiencies we have achieved, we have reduced our operating working capital by $21.6 million from second quarter 2016.”Second Quarter Results Compared to Prior Year Period
BlueLinx generated net sales of $474.0 million for the second quarter of fiscal 2017, compared to $509.0 million from the prior fiscal second quarter. As previously disclosed, the Company undertook several operational efficiency initiatives beginning in the second quarter of fiscal 2016, pursuant to which it closed and sold certain facilities and rationalized inventory by discontinuing certain underperforming products. When excluding the effects of these operational efficiency initiatives, adjusted same-center net sales increased by $23.2 million or 5.1% from this period a year ago. We believe that excluding the effects of the Company’s operational efficiency initiatives from our financial performance is helpful in presenting comparability across periods.
Even with the pressure on commodity lumber prices during the period, the Company recorded gross profit of $60.5 million during the fiscal second quarter, up $3.2 million from the prior fiscal second quarter, with a gross margin of 12.8%, up 150 basis points from this period a year ago. When excluding the effects of the Company’s operational efficiency initiatives, adjusted same-center gross profit increased by $3.4 million from fiscal second quarter 2016.BlueLinx recorded net income of $3.2 million for the fiscal second quarter, up $6.4 million from this period a year ago.  Adjusted EBITDA, which is a non-GAAP measure, was $12.8 million for the fiscal second quarter.First Six Months of Fiscal 2017 Compared to Prior Year Period
For the first six months of fiscal 2017, the Company generated $902.6 million in net sales compared to $983.3 million from the prior year period. When excluding the effects of our operational efficiency initiatives, adjusted same-center net sales increased by $32.2 million or 3.7% from the same period in 2016.
Gross profit for the first six months of fiscal 2017 was equal to the prior period at $115.0 million, with a gross margin of 12.7%, an increase of 100 basis points from the prior year period. When excluding the effects of the Company’s operational efficiency initiatives, adjusted same-center gross profit increased by $6.0 million or 5.5% from the first six months ended July 2, 2016.The Company recorded net income of $3.8 million for the first six months of fiscal 2017, up $13.1 million from this period a year ago. Adjusted EBITDA, which is a non-GAAP measure, for the six month period was $20.1 million, an increase of $0.5 million or 2.3% from the first six months of fiscal 2016. Excluding the effects of our operational efficiency initiatives, same-center Adjusted EBITDA, a non-GAAP measure, was up $1.7 million or 8.9% from the same period in 2016. Working Capital and Liquidity
As of July 1, 2017, the Company had $74.2 million of excess availability under its asset-based revolving credit facility, based on qualifying inventory and receivables, an increase of $8.9 million from the same period a year ago. As a result of our working capital initiatives and mortgage reduction efforts, interest expense decreased by $0.9 million or 14.1% from fiscal second quarter 2016 and by $2.8 million or 21.2% from the first six months of fiscal 2016.
Conference Call
BlueLinx will host a conference call today at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation. Investors can listen to the conference call and view the accompanying slide presentation by going to the BlueLinx website, www.BlueLinxCo.com, and selecting the conference link on the Investor Relations page. Investors will be able to access an archived recording of the conference call for one week following the live call by dialing 404-537-3406, Conference ID# 5957625. The recording will be available two hours after the conference call has concluded. Investors can also access a recording of this call on the BlueLinx website.
Use of Non-GAAP Measures and Supplementary Information
BlueLinx reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company also believes that presentation of certain non-GAAP measures may be useful to investors. Any non-GAAP measures used herein are reconciled in the financial tables accompanying this news release. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.
We define Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items, income taxes, depreciation and amortization, and further adjusted to exclude certain non-cash items and other adjustments to Consolidated Net Income (Loss). Further, we also exclude, as an additional measure, the effects of the operational efficiency initiatives, to determine same-center Adjusted EBITDA, which is useful for period over period comparability.We present Adjusted EBITDA (and the exclusion of the effects of the operational efficiency initiatives) because it is a primary measure used by management to evaluate operating performance and, we believe, helps to enhance investors’ overall understanding of the financial performance and cash flows of our business. However, Adjusted EBITDA is not a presentation made in accordance with GAAP, and is not intended to present a superior measure of the financial condition from those determined under GAAP. Adjusted EBITDA, as used herein, is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. We believe Adjusted EBITDA is helpful in highlighting operating trends. We also believe that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results. We compensate for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than using GAAP results alone.We define the non-GAAP metrics of adjusted same-center net sales and adjusted same-center gross profit as net sales and gross profit excluding the effects of both closed facilities and the inventory rationalization initiative. These measures are not in accordance with GAAP, and are not intended to present a superior measure of the financial condition from those determined under GAAP. Adjusted same-center net sales and adjusted same-center gross profit, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.We believe adjusted same-center net sales and adjusted same-center gross profit are helpful in presenting comparability across periods without the effect of our operational efficiency initiatives. We also believe that these non-GAAP metrics are used by securities analysts, investors, and other interested parties in their evaluation of our company, to illustrate the effects of these initiatives. We compensate for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than using GAAP results alone.Additionally, we believe supplementary GAAP-based information such as operating working capital and debt principal are helpful to investors in explaining the impacts of our operating efficiencies. Operating working capital is defined as current assets less current liabilities plus the current portion of long-term debt. Operating working capital is an important measure we use to determine the efficiencies of our operations and our ability to readily convert assets into cash. Debt principal is defined as the principal amount of debt payable at the stated period-end date and is used by management to monitor our progress in meeting our goals to reduce the debt on our balance sheet.About BlueLinx Holdings Inc.
BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building and industrial products in the United States. The Company is headquartered in Atlanta, Georgia and operates its distribution business through its broad network of distribution centers. BlueLinx is traded on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its website at www.BlueLinxCo.com.
Forward-looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our ability to return to profitability, and our guidance regarding anticipated financial results. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by BlueLinx to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, and technological factors outside of BlueLinx’s control that may cause its business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: changes in the prices, supply and/or demand for products that it distributes, general economic and business conditions in the United States; the activities of competitors; changes in significant operating expenses; changes in the availability of capital and interest rates; adverse weather patterns or conditions; acts of cyber intrusion; variations in the performance of the financial markets, including the credit markets; and other factors described in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, its Quarterly Reports on Form 10-Q, and in its periodic reports filed with the Securities and Exchange Commission from time to time. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, and changes in expectation or otherwise, except as required by law.