EX-99.1 2 c74132exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
(BLUELINX HOLDINGS 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.
  Russ Zukowski, Vice President Finance
(770) 953-7505
  (770) 953-7620 
FOR IMMEDIATE RELEASE
BLUELINX ANNOUNCES SECOND-QUARTER RESULTS
— Net Income of $0.21 Per Share on $835 Million Revenue —
Gross Margin Rises to12.9% for Quarter —
ATLANTA — July 30, 2008 — BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of building products in North America, today reported financial results for the second quarter ended June 28, 2008.
The company’s second-quarter net income totaled $6.6 million, or $0.21 per diluted share, compared with net income of $5.4 million, or $0.18 per diluted share, in the year-ago period. Revenues of $835 million declined 22.9% from $1.08 billion for the same period a year ago. The decline in revenue reflects a 26% drop in structural product sales and a 20% sales decline in specialty product sales from the year ago period. The decline in sales is primarily attributable to a decline in unit volume partially offset by increases in underlying structural product prices. The overall second-quarter unit volume decline of 26% was mainly due to lower unit volumes in both structural and specialty products driven predominately by a 32% decline in housing starts relative to year ago levels.
Gross profit for the second quarter totaled $107.4 million, compared with $119.2 million in the prior-year period, largely reflecting reduced unit volume associated with the continuing decline in housing starts. The decrease in gross profit related to volume was offset in part by an increase in gross margin to 12.9% from 11.0% a year earlier. Overall margins improved as a result of the Company’s ongoing initiatives to increase margins across all product categories combined with increases in underlying product prices.
Total operating expenses of $86.3 million decreased $12.4 million, or 12.5%, from the same period a year ago, reflecting the Company’s ongoing focus on managing expenses to the current operating environment. Operating income for the quarter totaled $21.1 million, compared with $20.6 million a year ago.
For the six months ended June 28, 2008, net loss totaled $4.0 million, or $0.13 per diluted share, on revenues of $1.55 billion, compared with net income of $5.2 million, or $0.17 per diluted share, on revenues of $2.04 billion a year ago. The decline in income and revenue was largely due to a decline in volume of 26% primarily driven by a decline in housing starts of 30% from the prior year to date period partially offset by increases in underlying product prices.
Gross profit for the six months totaled $185.2 million and gross margin was 11.9%, compared with $223 million and 10.9%, respectively, a year earlier. Operating expenses declined to $171.9 million from $192.5 million a year ago.

 

 


 

BlueLinx Q2 ‘08 Press Release
Page 2 of 5
“While we are pleased with our results, we expect the current housing market downturn to continue through 2009” said Howard Cohen, Chairman and Interim CEO. “We remain focused on managing cash flow by tightly managing inventories, receivables and our operating expenses. Bluelinx is financially positioned to be able to continue executing throughout this housing downturn. We generated $52 million in cash flow from operating activities during the second quarter and ended the period with $271 million in excess borrowing availability on our revolving credit facility” Cohen added.
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# 57204671. 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, 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 2,500 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.
Forward-looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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; 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 December 29, 2007 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 Q2 ‘08 Press Release
Page 3 of 5
BlueLinx Holdings Inc.
Statements of Operations

   in thousands, except per share data
                                 
    Quarters Ended     Six Months Ended  
    June 28,     June 30     June 28,     June 30,  
    2008     2007     2008     2007  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Net sales
  $ 834,669     $ 1,081,990     $ 1,551,429     $ 2,039,104  
Cost of sales
    727,234       962,752       1,366,191       1,816,111  
 
                       
Gross profit
    107,435       119,238       185,238       222,993  
 
                       
Operating expenses:
                               
Selling, general, and administrative
    81,227       93,346       161,862       181,814  
Depreciation and amortization
    5,103       5,335       10,071       10,734  
 
                       
Total operating expenses
    86,330       98,681       171,933       192,548  
 
                       
Operating income
    21,105       20,557       13,305       30,445  
Non-operating expenses:
                               
Interest expense
    9,385       11,798       18,739       22,404  
Other expense (income), net
    190       (225 )     320       (608 )
 
                       
 
                               
Income (loss) before provision for (benefit from) income taxes
    11,530       8,984       (5,754 )     8,649  
Provision for (benefit from) income taxes
    4,931       3,550       (1,762 )     3,404  
 
                       
Net income (loss)
  $ 6,599     $ 5,434     $ (3,992 )   $ 5,245  
 
                       
 
                               
Basic weighted average number of common shares outstanding
    31,079       30,848       31,003       30,824  
 
                       
Basic net income (loss) per share applicable to common stock
  $ 0.21     $ 0.18     $ (0.13 )   $ 0.17  
 
                       
Diluted weighted average number of common shares outstanding
    31,312       30,995       31,003       30,945  
 
                       
Diluted net income (loss) per share applicable to common stock
  $ 0.21     $ 0.18     $ (0.13 )   $ 0.17  
 
                       
Dividends declared per share of common stock
  $     $ 0.125     $     $ 0.25  
 
                       

 

 


 

BlueLinx Q2 ‘08 Press Release
Page 4 of 5
BlueLinx Holdings
Inc. Balance Sheets

   in thousands
                 
    June 28,     December 29,  
    2008     2007  
    (unaudited)        
Assets:
               
Current assets:
               
Cash
  $ 29,791     $ 15,759  
Receivables
    295,081       263,176  
Inventories
    315,368       335,887  
Deferred income taxes
    14,605       12,199  
Other current assets
    38,657       53,231  
 
           
Total current assets
    693,502       680,252  
 
           
 
               
Property, plant, and equipment:
               
Land and land improvements
    57,362       57,295  
Buildings
    98,550       98,420  
Machinery and equipment
    67,922       67,217  
Construction in progress
    1,360       4,212  
 
           
Property, plant, and equipment, at cost
    225,194       227,144  
Accumulated depreciation
    (60,954 )     (54,702 )
 
           
Property, plant, and equipment, net
    164,240       172,442  
Non-current deferred income taxes
    2,218       2,628  
Other assets
    19,842       28,114  
 
           
Total assets
  $ 879,802     $ 883,436  
 
           
 
               
Liabilities :
               
Current liabilities:
               
Accounts payable
  $ 176,600     $ 164,717  
Bank overdrafts
    38,055       37,152  
Accrued compensation
    11,503       10,372  
Current maturities of long-term debt
    10,048        
Other current liabilities
    28,336       19,280  
 
           
Total current liabilities
    264,542       231,521  
 
           
Noncurrent liabilities:
               
Long-term debt
    451,000       478,535  
Other non-current liabilities
    13,016       18,557  
 
           
Total liabilities
    728,558       728,613  
 
           
 
               
Shareholders’ Equity:
               
Common stock
    324       312  
Additional paid in capital
    142,701       142,081  
Accumulated other comprehensive income
    5,207       5,426  
Retained earnings
    3,012       7,004  
 
           
Total shareholders’ equity
    151,244       154,823  
 
           
 
               
 
           
Total liabilities and shareholders’ equity
  $ 879,802     $ 883,436  
 
           

 

 


 

BlueLinx Q2 ‘08 Press Release
Page 5 of 5
BlueLinx Holdings Inc.
Statements of Cash Flows

   in thousands
                 
    Six Months Ended  
    June 28,     June 30,  
    2008     2007  
    (unaudited)     (unaudited)  
Cash flows from operating activities:
               
Net (loss) income
  $ (3,992 )   $ 5,245  
Adjustments to reconcile net (loss) income to cash provided by (used in) operations:
               
Depreciation and amortization
    10,071       10,734  
Amortization of debt issue costs
    1,215       1,215  
Deferred income tax benefit
    (2,931 )     (1,563 )
Share-based compensation expense
    1,119       2,227  
Excess tax benefits from share-based compensation arrangements
    (76 )     (60 )
Changes in assets and liabilities:
               
Receivables
    (31,905 )     (98,255 )
Inventories
    20,519       (59,536 )
Accounts payable
    11,883       64,503  
Changes in other working capital
    22,283       8,840  
Other
    2,589       2,278  
 
           
Net cash provided by (used in) operating activities
    30,775       (64,372 )
 
           
 
               
Cash flows from investing activities:
               
Property, plant, and equipment investments
    (1,502 )     (10,027 )
Proceeds from disposition of assets
    827       1,086  
 
           
Net cash used in investing activities
    (675 )     (8,941 )
 
           
 
               
Cash flows from financing activities:
               
Proceeds from stock options exercised
    434       323  
Excess tax benefits from share-base compensation arrangements
    76       60  
Net (decrease) increase in revolving credit facility
    (17,487 )     94,073  
Increase (decrease) in bank overdrafts
    903       (15,678 )
Common dividends paid
          (7,784 )
Other
    6       33  
 
           
Net cash (used in) provided by financing activities
    (16,068 )     71,027  
 
           
 
               
Increase (decrease) in cash
    14,032       (2,286 )
Balance, beginning of period
    15,759       27,042  
 
           
Balance, end of period
  $ 29,791     $ 24,756  
 
           
###