EX-99.1 2 c00379exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(BLUELINX LOGO)
4300 Wildwood Parkway
Atlanta, GA 30339
1-888-502-BLUE
www.BlueLinxCo.com
BlueLinx Contacts:
     
Doug Goforth, CFO & Treasurer
  Investor Relations:
BlueLinx Holdings Inc.
  Maryon Davis, Director Finance & IR
(770) 953-7505
  (770) 221-2666
FOR IMMEDIATE RELEASE
BLUELINX ANNOUNCES FIRST-QUARTER RESULTS
—Higher Gross Margins on 6% Revenue Growth—
ATLANTA — May 6, 2010 — BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the first quarter ended April 3, 2010.
The Company incurred a net loss of $14.7 million, or $0.48 per diluted share for the first quarter of 2010, compared with a net loss of $60.7 million, or $1.95 per diluted share, for the first quarter of 2009. Revenues increased 6% to $431.1 million from $407.1 million for the same period a year ago. Overall unit volume rose 1.4% compared to the year-ago period.
Gross profit for the first quarter totaled $52.3 million, up 18% from $44.3 million in the prior-year period. Gross margins increased to 12.1% from the 10.9% generated in the year earlier period. The improvement in margins was due to the Company’s continued focus on margin improvement, wood-based product pricing and an increase in sales through the warehouse channel. Total operating expenses decreased $2.4 million, or 3.9% from the same period a year ago, as the Company continued to aggressively manage its cost structure. Reported operating loss for the quarter was $8.0 million, compared with an operating loss of $18.4 million a year ago.
“While we achieved our first year over year quarterly increase in revenue in four years, our results were hindered by unusually severe weather conditions throughout the country” said BlueLinx President and CEO George Judd. “However, since the later part of the first quarter, we have seen an increase in demand for our products as the housing market appears to have begun its recovery.”
The Company’s operating results for the first quarter of 2010, adjusted for significant special items, are shown in the following table (see accompanying financial schedules for full financial details and reconciliations of non-GAAP financial measures to their GAAP equivalents):

 

 

 

BlueLinx 1Q ’10 Press Release
Page 2 of 8
         
in millions, except per share amounts   Quarter Ended  
(unaudited)   April 3, 2010  
Pretax loss
     ($14.7 )
Changes associated with the ineffective interest rate swap
     (0.8 )
 
      
Adjusted pretax loss
     (15.5 )
Adjusted benefit from income taxes
     (5.9 )
 
      
Adjusted net loss
     ($9.6 )
 
      
Diluted weighted average shares
     30.6  
 
      
Adjusted diluted net loss per share applicable to common shares
     ($0.31 )
 
      
The above table reflects the effect of a reduction to the fair value of the Company’s ineffective interest rate swap offset by the continued amortization of the other comprehensive loss related to the ineffective interest rate swap into interest expense. The adjusted benefit from income taxes reflected in the table is based on the Company’s effective tax rate for the current quarter, excluding the valuation allowance related to its deferred tax assets of $5.7 million, which assumes the Company is in a position to demonstrate that the deferred tax assets were realizable.
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 web site, 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 by calling 706-645-9291, Conference ID# 71272977. The recording will be available two hours after the conference call has concluded. Investors also can access a recording of this call on the BlueLinx web site, where a replay of the webcast will be available for 90 days.
Use of Non-GAAP Measures
BlueLinx reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). The Company also believes that presentation of certain non-GAAP measures, i.e., results excluding certain charges or other nonrecurring events, when appropriate, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, without the impact of significant special items, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides a better baseline for modeling future earnings expectations. 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.
About BlueLinx Holdings Inc.
Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing approximately 2,000 people, BlueLinx offers greater than 10,000 products from over 750 suppliers to service approximately 11,500 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The Company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses. BlueLinx is traded on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its Web site at www.BlueLinxCo.com.

 

 

 

BlueLinx 1Q ’10 Press Release
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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 outlook on the housing industry. 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 our control, that may cause our 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 supply and/or demand for products that we distribute, especially as a result of conditions in the residential housing market; general economic and business conditions in the United States; the activities of competitors; changes in significant operating expenses; changes in the availability of capital including the availability of residential mortgages; the ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions; adverse weather patterns or conditions; acts of war or terrorist activities; variations in the performance of the financial markets; and other factors described in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the year ended January 2, 2010 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, changes in expectation or otherwise, except as required by law.
- Tables to Follow -

 

 

 

BlueLinx 1Q ’10 Press Release
Page 4 of 8
BlueLinx Holdings Inc.
Statements of Operations
in thousands, except per share data
                 
    Quarters Ended  
    April 3,     April 4,  
    2010     2009  
    (unaudited)     (unaudited)  
 
Net sales
   $ 431,050     $ 407,111  
Cost of sales
     378,772       362,835  
 
            
Gross profit
     52,278       44,276  
 
            
Operating expenses
                
Selling, general, and administrative
     56,514       57,665  
Depreciation and amortization
     3,744       5,030  
 
            
Total operating expenses
     60,258       62,695  
 
            
Operating loss
     (7,980 )     (18,419 )
Non-operating expenses:
                
Interest expense
     7,315       8,117  
Changes associated with the ineffective interest rate swap
     (805 )     4,832  
Write-off of debt issuance costs
     —       1,407  
Other expense (income), net
     233       (157 )
 
            
Loss before provision for income taxes
     (14,723 )     (32,618 )
Provision for income taxes
     16       28,035  
 
            
Net loss
   $ (14,739 )   $ (60,653 )
 
            
Basic and diluted weighted average number of common shares outstanding
     30,587       31,083  
 
            
Basic and diluted net loss per share applicable to common stock
   $ (0.48 )   $ (1.95 )
 
            

 

 

 

BlueLinx 1Q ’10 Press Release
Page 5 of 8
BlueLinx Holdings Inc.
Balance Sheets
in thousands
                 
    April 3,     January 2,  
    2010     2010  
 
   (unaudited)   (unaudited)
Assets:
                
Current assets:
                
Cash and cash equivalents
   $ 13,379     $ 29,457  
Receivables, net
     183,942       119,347  
Inventories, net
     198,799       173,185  
Other current assets
     18,888       44,970  
 
            
Total current assets
     415,008       366,959  
 
            
 
Property, plant, and equipment:
                
Land and improvements
     52,704       52,621  
Buildings
     96,509       96,145  
Machinery and equipment
     71,165       69,767  
Construction in progress
     564       791  
 
            
Property, plant, and equipment, at cost
     220,942       219,324  
Accumulated depreciation
     (85,008 )     (82,141 )
 
            
Property, plant, and equipment, net
     135,934       137,183  
Other non-current assets
     38,806       42,704  
 
            
Total assets
   $ 589,748     $ 546,846  
 
            
 
                
Liabilities:
                
Current liabilities:
                
Accounts payable
   $ 85,938     $ 64,618  
Bank overdrafts
     37,185       27,232  
Accrued compensation
     5,181       4,879  
Other current liabilities
     23,058       22,508  
 
            
Total current liabilities
     151,362       119,237  
 
            
Noncurrent liabilities:
                
Long-term debt
     366,334       341,669  
Other non-current liabilities
     34,785       35,120  
 
            
Total liabilities
     552,481       496,026  
 
            
 
Shareholders’ Equity:
                
Common stock
     327       322  
Additional paid in capital
     145,490       145,035  
Accumulated other comprehensive loss
     (7,649 )     (8,375 )
Accumulated deficit
     (100,901 )     (86,162 )
 
            
Total shareholders’ equity
     37,267       50,820  
 
            
 
Total liabilities and shareholders’ equity
   $ 589,748     $ 546,846  
 
            

 

 

 

BlueLinx 1Q ’10 Press Release
Page 6 of 8
BlueLinx Holdings Inc.
Statements of Cash Flows
in thousands
                 
    Quarters Ended  
    April 3,     April 4,  
    2010     2009  
    (unaudited)     (unaudited)  
Cash flows from operating activities:
                
Net loss
   $ (14,739 )   $ (60,653 )
Adjustments to reconcile net loss to cash used in operations:
                
Depreciation and amortization
     3,744       5,030  
Amortization of debt issuance costs
     (73 )     614  
Payment from terminating the Georgia-Pacific supply agreement
     4,706       —  
Changes associated with the ineffective interest rate swap
     (805 )     4,832  
Write-off of debt issuance costs
     —       1,407  
Deferred income tax (benefit) provision
     (207 )     27,230  
Share-based compensation expense
     1,043       537  
Decrease in restricted cash related to the ineffective interest rate swap, insurance, and other
     5,882       (159 )
Changes in assets and liabilities:
                
Receivables
     (64,595 )     (26,137 )
Inventories
     (25,614 )     11,385  
Accounts payable
     21,320       21,908  
Changes in other working capital
     22,879       (3,949 )
Other
     (134 )     (428 )
 
            
Net cash used in operating activities
     (46,593 )     (18,383 )
 
            
 
Cash flows from investing activities:
                
Property, plant, and equipment investments
     (409 )     (166 )
Proceeds from disposition of assets
     149       421  
 
            
Net cash (used in) provided by investing activities
     (260 )     255  
 
            
Cash flows from financing activities:
                
Repurchase of common stock
     (583 )     (792 )
Increase (decrease) in the revolving credit facility
     24,665       (60,000 )
Payments on capital lease obligations
     (402 )     —  
Increase (decrease) in bank overdrafts
     9,953       (8,531 )
Increase in restricted cash related to the mortgage
     (2,864 )     (2,878 )
Other
     6       6  
 
            
Net cash provided by (used in) financing activities
     30,775       (72,195 )
 
            
 
Decrease in cash
     (16,078 )     (90,323 )
Balance, beginning of period
     29,457       150,353  
 
            
Balance, end of period
   $ 13,379     $ 60,030  
 
            

 

 

 

BlueLinx 1Q ’10 Press Release
Page 7 of 8
BlueLinx Holdings Inc.
Reconciliation of GAAP Loss to Adjusted Net Loss
in thousands
                 
    Quarters Ended  
    April 3,     April 4,  
    2010     2009  
    (unaudited)     (unaudited)  
 
GAAP net loss
   $ (14,739 )   $ (60,653 )
Changes associated with the ineffective interest rate swap
     (805 )     4,832  
Facility consolidations & severance related costs
     —       1,079  
Write-off of debt issuance costs
     —       1,407  
Tax effect of selected charges
     311       (2,825 )
Valuation allowance
     5,683       40,200  
 
            
Adjusted net loss
   $ (9,550 )   $ (15,960 )
 
            

 

 

 

BlueLinx 1Q ’10 Press Release
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BlueLinx Holdings Inc.
Adjusted Net Loss
in thousands, except per share data
                 
    Quarters Ended  
    April, 3     April 4,  
    2010     2009  
    (unaudited)     (unaudited)  
 
Pretax loss
   $ (14,723 )   $ (32,618 )
Changes associated with the ineffective interest rate swap
     (805 )     4,832  
Facility consolidations & severance related costs
     —       1,079  
Write-off of debt issuance costs
     —       1,407  
 
            
Adjusted pretax loss
     (15,528 )     (25,300 )
Adjusted benefit from income taxes
     (5,978 )     (9,340 )
 
            
Adjusted net loss
   $ (9,550 )   $ (15,960 )
 
            
Diluted weighted average shares
     30,587       31,083  
 
            
Adjusted diluted net loss per share applicable to common shares
   $ (0.31 )   $ (0.51 )
 
            
###