– Debt principal reduction of $63.6 million from
Q2 2015 – – Net working capital reduced by $64.5 million from Q2
2015 –
BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of
building and industrial products in North America, today reported
financial results for the fiscal second quarter ended July 2,
2016.
“We are pleased to report our second quarter
results and the significant progress we’re making on our key
strategic initiatives of reducing working capital, exiting
underperforming facilities, and monetizing certain real estate.
We were able to execute on these important activities while
still improving our same center sales volume, operational
efficiency, and adjusted EBITDA. Our team is energized to continue
our focus on deleveraging our balance sheet, garnering market share
and improving our operating results,” said Mitch Lewis, President
and Chief Executive Officer.
Susan O’Farrell, Senior Vice President and Chief
Financial Officer added, “As previously announced on April 21st,
our primary focus is on deleveraging the balance sheet. We have
decreased our debt principal by $63.6 million and our net working
capital by $64.5 million when compared to the same period a year
ago primarily through our inventory and facility rationalization.
In addition, we are currently under contract to sell several of our
closed facilities and are actively marketing certain operating
facilities for sale leaseback opportunities.”
Second Quarter Results Compared to Prior
Year PeriodFor the fiscal quarter ended July 2, 2016,
BlueLinx generated net sales of $509.0 million, with a 1.7%
increase in sales unit volume. When excluding closed facilities,
revenue for same centers increased $8.3 million compared to the
same period a year ago, with a 4.1% increase in sales unit
volume.
The Company recorded gross profit in fiscal
second quarter 2016 of $57.4 million with a gross margin of 11.3%,
or 13.1% when excluding closed facilities and SKU
rationalization.
The Company recorded a net loss of $3.1 million
for fiscal second quarter 2016 compared to net income of $2.9
million from this period a year ago. The inventory and facility
rationalization initiatives reduced net income by $7.7 million
during the quarter. These charges included $1.2 million in
severance and employee benefits charges. Excluding these severance
and employee benefits charges, operating expenses remained
comparable to the same period last year, even with increased sales
volume.
Adjusted EBITDA, which is a non-GAAP measure,
for fiscal second quarter 2016 was $12.7 million, up $2.9 million
versus $9.8 million for the same period a year ago.
LiquidityAs of July 2,
2016, the Company had $65.3 million of excess availability under
its asset-based revolving credit facilities.
Conference CallBlueLinx 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 by calling 404-537-3406, Conference
ID# 50544972. 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 website.
Use of Non-GAAP
MeasuresBlueLinx 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 (e.g., write-off of debt issuance costs, charges
associated with mortgage refinancing), income taxes, depreciation
and amortization, and further adjusted to exclude certain non-cash
items and other adjustments to Consolidated Net Income (Loss). We
present Adjusted EBITDA 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 believe net working capital is helpful to investors in
highlighting our operating efficiencies. Net working capital is
defined as accounts receivable plus inventories less accounts
payable and bank overdrafts. Management of net working capital
helps us monitor our progress in meeting our goals to maximize our
return on net working capital assets and our ability to easily
convert assets into cash.
We believe comparable same center sales are helpful to highlight
our performance on a go-forward basis. Same center sales exclude
closed centers which are defined as facility locations that have
been announced closed and are no longer operating and generating
revenue.
About BlueLinx Holdings
Inc.BlueLinx Holdings Inc., operating through its wholly
owned subsidiary BlueLinx Corporation, is a leading distributor of
building products in North America. The Company is
headquartered in Atlanta, Georgia and operates its distribution
business through its 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 StatementsThis
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
January 2, 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.
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS ANDCOMPREHENSIVE INCOME
(LOSS)(In thousands, except per share
data)(unaudited) |
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
July 2, 2016 |
|
July 4, 2015 |
|
July 2, 2016 |
|
July 4, 2015 |
Net sales |
$ |
509,011 |
|
|
$ |
515,656 |
|
|
$ |
983,337 |
|
|
$ |
970,605 |
|
Cost of sales |
451,624 |
|
|
455,673 |
|
|
868,354 |
|
|
860,426 |
|
Gross profit |
57,387 |
|
|
59,983 |
|
|
114,983 |
|
|
110,179 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling,
general, and administrative |
52,294 |
|
|
50,675 |
|
|
107,093 |
|
|
100,711 |
|
Depreciation and amortization |
2,396 |
|
|
2,438 |
|
|
4,872 |
|
|
4,716 |
|
Total
operating expenses |
54,690 |
|
|
53,113 |
|
|
111,965 |
|
|
105,427 |
|
Operating income |
2,697 |
|
|
6,870 |
|
|
3,018 |
|
|
4,752 |
|
Non-operating expenses
(income): |
|
|
|
|
|
|
|
Interest
expense |
6,250 |
|
|
6,690 |
|
|
13,457 |
|
|
13,243 |
|
Other
expense (income), net |
135 |
|
|
29 |
|
|
(237 |
) |
|
387 |
|
Income (loss) before
benefit from income taxes |
(3,688 |
) |
|
151 |
|
|
(10,202 |
) |
|
(8,878 |
) |
Benefit from income
taxes |
(544 |
) |
|
(2,719 |
) |
|
(913 |
) |
|
(2,803 |
) |
Net income (loss) |
$ |
(3,144 |
) |
|
$ |
2,870 |
|
|
$ |
(9,289 |
) |
|
$ |
(6,075 |
) |
Weighted average common
shares: |
|
|
|
|
|
|
|
Basic |
8,895 |
|
|
8,739 |
|
|
8,886 |
|
|
8,728 |
|
Diluted |
8,895 |
|
|
8,786 |
|
|
8,886 |
|
|
8,728 |
|
Basic and diluted net
income (loss) per share applicable to common stock |
$ |
(0.35 |
) |
|
$ |
0.33 |
|
|
$ |
(1.05 |
) |
|
$ |
(0.70 |
) |
|
|
|
|
|
|
|
|
Comprehensive income
(loss): |
|
|
|
|
|
|
|
Net income (loss) |
$ |
(3,144 |
) |
|
$ |
2,870 |
|
|
$ |
(9,289 |
) |
|
$ |
(6,075 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
Foreign
currency translation, net of tax |
34 |
|
|
(34 |
) |
|
306 |
|
|
(316 |
) |
Amortization of unrecognized pension loss, net of tax |
223 |
|
|
211 |
|
|
447 |
|
|
422 |
|
Pension
curtailment, net of tax |
(12,185 |
) |
|
6,102 |
|
|
(12,185 |
) |
|
6,102 |
|
Total
other comprehensive income (loss) |
(11,928 |
) |
|
6,279 |
|
|
(11,432 |
) |
|
6,208 |
|
Comprehensive income
(loss) |
$ |
(15,072 |
) |
|
$ |
9,149 |
|
|
$ |
(20,721 |
) |
|
$ |
133 |
|
BLUELINX
HOLDINGS INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands, except share
data)(unaudited) |
|
|
|
|
|
July 2, 2016 |
|
January 2, 2016 |
Assets: |
|
|
|
Current assets: |
|
|
|
Cash |
$ |
5,240 |
|
|
$ |
4,808 |
|
Receivables, less allowances of $3.4 million and $3.2 million,
respectively |
181,623 |
|
|
138,545 |
|
Inventories, net |
214,802 |
|
|
226,660 |
|
Other
current assets |
28,562 |
|
|
32,011 |
|
Total current
assets |
430,227 |
|
|
402,024 |
|
Property and
equipment: |
|
|
|
Land and
land improvements |
35,926 |
|
|
40,108 |
|
Buildings |
80,630 |
|
|
89,006 |
|
Machinery
and equipment |
78,646 |
|
|
79,173 |
|
Construction in progress |
349 |
|
|
255 |
|
Property and equipment,
at cost |
195,551 |
|
|
208,542 |
|
Accumulated depreciation |
(105,628 |
) |
|
(106,966 |
) |
Property and equipment,
net |
89,923 |
|
|
101,576 |
|
Other non-current
assets |
9,784 |
|
|
9,542 |
|
Total assets |
$ |
529,934 |
|
|
$ |
513,142 |
|
Liabilities: |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
96,830 |
|
|
$ |
88,087 |
|
Bank
overdrafts |
17,330 |
|
|
17,287 |
|
Accrued
compensation |
6,829 |
|
|
4,165 |
|
Current
maturities of long-term debt |
62,653 |
|
|
6,611 |
|
Other
current liabilities |
12,942 |
|
|
14,023 |
|
Total current
liabilities |
196,584 |
|
|
130,173 |
|
Non-current
liabilities: |
|
|
|
Long-term
debt |
340,222 |
|
|
377,773 |
|
Pension
benefit obligation |
45,755 |
|
|
36,791 |
|
Other
non-current liabilities |
12,934 |
|
|
14,301 |
|
Total liabilities |
595,495 |
|
|
559,038 |
|
Stockholders’
deficit: |
|
|
|
Common
Stock, $0.01 par value, Authorized - 20,000,000 shares, Issued -
9,031,275 and 8,943,846 respectively. |
90 |
|
|
89 |
|
Additional paid-in capital |
256,959 |
|
|
255,905 |
|
Accumulated other comprehensive loss |
(46,206 |
) |
|
(34,774 |
) |
Accumulated stockholders’ deficit |
(276,404 |
) |
|
(267,116 |
) |
Total stockholders’
deficit |
(65,561 |
) |
|
(45,896 |
) |
Total liabilities and
stockholders’ deficit |
$ |
529,934 |
|
|
$ |
513,142 |
|
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In
thousands)(unaudited) |
|
|
|
|
|
Six Months Ended July 2,
2016 |
|
Six Months Ended July 4,
2015 |
Net cash used
in operating activities |
$ |
(25,943 |
) |
|
$ |
(46,247 |
) |
|
|
|
|
Net cash
provided by (used in) investing activities |
1,853 |
|
|
(699 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Repayments on revolving
credit facilities |
(282,371 |
) |
|
(187,394 |
) |
Borrowings from
revolving credit facilities |
308,673 |
|
|
256,647 |
|
Principal payments on
mortgage |
(9,431 |
) |
|
(8,534 |
) |
Increase (decrease) in
bank overdrafts |
— |
|
|
(15,428 |
) |
Decrease in restricted
cash related to the mortgage |
9,118 |
|
|
— |
|
Other, net |
(1,467 |
) |
|
(23 |
) |
Net cash provided by
financing activities |
24,522 |
|
|
45,268 |
|
|
|
|
|
Increase (decrease) in
cash |
432 |
|
|
(1,678 |
) |
Cash balance, beginning
of period |
4,808 |
|
|
4,522 |
|
Cash balance, end of
period |
$ |
5,240 |
|
|
$ |
2,844 |
|
BLUELINX
HOLDINGS INC.RECONCILIATION OF NON-GAAP
MEASUREMENTS(In
thousands)(unaudited) |
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
Adjusted EBITDA |
July 2, 2016 |
|
July 4, 2015 |
|
July 2, 2016 |
|
July 4, 2015 |
Net income (loss) |
$ |
(3,144 |
) |
|
$ |
2,870 |
|
|
$ |
(9,289 |
) |
|
$ |
(6,075 |
) |
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
2,396 |
|
|
2,438 |
|
|
4,872 |
|
|
4,716 |
|
Interest
expense |
6,250 |
|
|
6,690 |
|
|
13,457 |
|
|
13,243 |
|
Benefit
from income taxes |
(544 |
) |
|
(2,719 |
) |
|
(913 |
) |
|
(2,803 |
) |
Gain from
the sale of properties |
(384 |
) |
|
— |
|
|
(761 |
) |
|
— |
|
Share-based compensation expense, excluding restructuring |
430 |
|
|
519 |
|
|
845 |
|
|
1,135 |
|
Restructuring, severance, and legal |
7,581 |
|
|
(36 |
) |
|
8,069 |
|
|
(65 |
) |
Refinancing-related expenses |
69 |
|
|
— |
|
|
3,385 |
|
|
— |
|
Adjusted EBITDA |
$ |
12,654 |
|
|
$ |
9,762 |
|
|
$ |
19,665 |
|
|
$ |
10,151 |
|
|
|
Quarter Ended |
|
Six Months Ended |
Comparable Same
Center Schedule |
|
July 2, 2016 |
|
July 4, 2015 |
|
July 2, 2016 |
|
July 4, 2015 |
Net sales |
|
$ |
509,011 |
|
|
$ |
515,656 |
|
|
$ |
983,337 |
|
|
$ |
970,605 |
|
Less:
closed centers |
|
31,164 |
|
|
46,121 |
|
|
65,861 |
|
|
90,973 |
|
Same center net
sales |
|
$ |
477,847 |
|
|
$ |
469,535 |
|
|
$ |
917,476 |
|
|
$ |
879,632 |
|
|
|
|
|
|
|
|
|
|
Actual year-over-year
percentage increase (decrease) |
|
(1.3 |
)% |
|
|
|
1.3 |
% |
|
|
Same center
year-over-year percentage increase |
|
1.8 |
% |
|
|
|
4.3 |
% |
|
|
BLUELINX
HOLDINGS INC.ADDITIONAL
INFORMATION(In
thousands)(unaudited) |
|
|
|
Quarter Ended |
Debt principal |
July 2, 2016 |
|
July 4, 2015 |
Revolving credit
facilities - principal |
$ |
246,858 |
|
|
$ |
300,020 |
|
Mortgage -
principal |
158,769 |
|
|
169,188 |
|
Total debt principal
payable |
$ |
405,627 |
|
|
$ |
469,208 |
|
|
|
|
|
|
|
|
|
BlueLinx Contact Information:
Susan O’Farrell, SVP, CFO & Treasurer
BlueLinx Holdings Inc.
(770) 953-7000
Natalie Poulos, Investor Relations
BlueLinx Holdings Inc.
(770) 953-7522
investor.relations@bluelinxco.com
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Apr 2023 to Apr 2024