BlueLinx shares its results for 2Q
by MDJ staff
August 09, 2014 09:17 PM | 1059 views | 0 0 comments | 4 4 recommendations | email to a friend | print
BlueLinx Holdings Inc., 4300 Wildwood Parkway in Marietta, on Aug. 7 reported financial results for the fiscal second quarter ending July 5.

“We are pleased to report fiscal 2014 second quarter adjusted EBITDA of $10.6 million and net income of $3.2 million. This result is encouraging as we are beginning to see the benefits from our key business initiatives as well as our restructuring efforts undertaken last year, which continue to position the company for future success.

“Adjusted EBITDA of $10.6 million during the second quarter is the company’s best quarterly adjusted EBITDA in the last five years, represents an improvement of approximately $14.1 million from the second quarter of 2013, and marks the fourth consecutive quarter of year over year improvement,” said Mitch Lewis, president and CEO.

Revenues on a same center basis for the fiscal 2Q ending July 5, decreased $39.4 million, or 6.9 percent, compared to the fiscal 2Q ending June 29, 2013. Taking into account revenues from closed centers, revenues for the fiscal 2014 2Q fell 12.1 percent to $531.5 million from $604.6 million in the year-ago period. The same center sales decline primarily was due to a decline in structural unit volumes and certain structural product price declines relative to year-ago levels. Adjusted EBITDA for the fiscal 2014 2Q improved to $10.6 million from an adjusted EBITDA loss of $3.5 million for the same period a year ago.

The company had net income of $3.2 million, or four cents per diluted share for the fiscal 2014 2Q, compared with a net loss of $22.3 million, or 27 cents per diluted share, for the fiscal 2013 2Q. Fiscal 2014 2Q results included net pretax gains from significant special items of $2.2 million, or three cents per diluted share. Fiscal 2013 2Q results included net pretax charges from significant special items of $8.9 million, or 11 cents per diluted share. Fiscal 2014 2Q adjusted net income was $900,000 or one cent per diluted share, compared to an adjusted net loss of $8.6 million, or 10 cents per diluted share, for the same period a year ago.

Gross profit on a same center basis for the fiscal 2Q ending July 5, increased $9.9 million or 18.9 percent compared to the fiscal 2Q 2013. Taking into account closed centers, gross profit for the fiscal 2014 2Q totaled $62 million, up 12.4 percent from $55.2 million in the year-ago period. Gross margins for the fiscal 2014 2Q improved to 11.7 percent compared to 9.1 percent for the same period a year ago. Overall 2014 fiscal 2Q gross margins were impacted by improved structural margins and the improved sales mix to the relatively higher margin specialty products.

Fiscal 2014 2Q operating expenses were $52.3 million compared to $70.7 million for the same period a year ago. Significant special items included in operating expenses for the fiscal 2014 2Q included a $5 million gain from the sale of property and $2.8 million charge related to changes in executive leadership. Approximately $1.5 million of this amount relates to stock compensation expense and $1.3 million relates to severance. Significant special items included in operating expenses in the year ago quarter included $7.3 million in restructuring and severance costs. Operating expenses in the year ago period also included $4.6 million in expenses related to closed distribution centers. Reported operating income for the fiscal 2014 2Q improved to $9.7 million, compared to an operating loss of $15.6 million a year ago and reflects improved margins, operating efficiency, and a reduction in expenses that more than offset decline in revenue and significant special items.

The company incurred a net loss of $5.4 million, or six cents per diluted share for the fiscal six months ending July 5, compared with a net loss of $35 million, or 46 cents per diluted share, a year ago. Fiscal six-month results for 2014 included net pretax gains from significant special items of $2.4 million, or three-cents per diluted share. Fiscal six-month results for 2013 included net pretax charges from significant special items of $9.8 million, or 13 cents per diluted share. For the fiscal six months ended July 5, adjusted net loss was $4.9 million, or six-cents per diluted share, compared to an adjusted net loss of $15.9 million, or 21 cents per diluted share, for the same period a year ago.

Gross profit on a same center basis for the fiscal six months ending July 5, increased $9.5 million or 9 percent compared to the same period a year ago. Taking into account closed centers, gross profit for the first six months of fiscal 2014 totaled $114.7 million, an increase of $3.1 million or 2.7 percent from $111.6 million in the same period a year ago. Gross margins for the first six months of fiscal 2014 improved to 11.8 percent, compared to 10.1 percent for the same period a year ago. Overall, gross margin percentage was higher due to improved margins of structural products and an improved mix of specialty products.

Total operating expenses for the first six months of 2014 fiscal year decreased to $106.6 million compared to $132.3 million for the same period a year ago. Significant special items included in operating expenses for the first six months of 2014 fiscal year included a $5.3 million gain from the sale of properties and a $2.8 million charge related to the change in executive leadership. Significant special items included in operating expenses in the year ago period included a $200,000 gain from the sale of property and $8.2 million in restructuring and severance costs.

Operating expenses in the year ago period also included $1.8 million in expenses related to closed distribution centers. Reported operating income for the first six months of fiscal 2014 improved to $8.1 million, compared to an operating loss of $20.7 million a year ago and reflects a reduction in expenses that more than offset decline in revenue and significant special items.

BlueLinx Holdings Inc. is a leading distributor of building products in North America.

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