- Net Income of $2.9 million -
- Adjusted EBITDA of $9.8 million -
ATLANTA, Aug. 13, 2015 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the second quarter ended July 4, 2015.
Second Quarter Financial Highlights
- Net income of $2.9 million, or $0.03 per diluted share
- Adjusted EBITDA of $9.8 million
- Revenue of $515.7 million
- Selling, general, and administrative expenses down $4.3 million, or 7.7% compared to second quarter 2014
- Excess availability of $65.0 million as of July 4, 2015, an increase of $5 million over year-end 2014
“Our team remains focused on outstanding customer service, top line growth, margin and cost efficiency as we execute our operational initiatives. While the second quarter was relatively flat to our second quarter in 2014, we saw improvement in June following a particularly wet April and May, and we strive to keep that momentum going for the remainder of the year," said Mitch Lewis, President and Chief Executive Officer.
Susan O’Farrell, Senior Vice President and Chief Financial Officer added, “We continue to explore refinancing options as we carefully weigh the timing of our refinancing efforts against the pre-payment penalty of our existing mortgage, which is approximately $1.0 million per month until December 2015.”
Second Quarter Results Compared to Prior Year Period
The Company recorded net income of $2.9 million, or $0.03 per diluted share, in the fiscal second quarter 2015 versus net income in the fiscal second quarter 2014 of $3.2 million, or $0.04 per diluted share, which included a $5.0 million gain on the sale of property.
Adjusted EBITDA for the fiscal second quarter 2015 of $9.8 million versus Adjusted EBITDA of $10.6 million for the same period a year ago.
Gross profit in fiscal second quarter 2015 was $60.0 million, versus $62.0 million in fiscal second quarter 2014. Overall, gross margins were impacted by the decline in unit volumes that occurred in fiscal second quarter 2015.
Revenues for the fiscal second quarter ended July 4, 2015, were $515.7 million, compared to $531.5 million in the fiscal second quarter ended July 5, 2014. Overall, revenue was significantly impacted by structural price decreases of 6.5%, which were partially offset by a structural unit volume increase of 0.9%, primarily in the lumber product category.
Liquidity
As of July 4, 2015, the Company had $65.0 million of excess availability under its asset-based revolving credit facilities.
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 404-537-3406, Conference ID# 57441061. 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, 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 accounting principles generally accepted in the U.S. (“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.
Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the Company. Adjusted EBITDA, as we define it, is an amount equal to net income (loss) plus interest expense and related items, income taxes, stock compensation, depreciation and amortization, further adjusted to exclude other non-cash items and certain other adjustments. Adjusted EBITDA is presented herein because we believe it is a useful supplement to cash flow from operations in understanding cash flows generated from operations that are available for debt service (interest and principal payments) and further investment in acquisitions. 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.
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 48 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’ 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 3, 2015, 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 | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| July 4, 2015 | July 5, 2014 | July 4, 2015 | July 5, 2014 | ||||||||||||
| Net sales | $ | 515,656 | $ | 531,494 | $ | 970,605 | $ | 975,438 | |||||||
| Cost of sales | 455,673 | 469,461 | 860,426 | 860,729 | |||||||||||
| Gross profit | 59,983 | 62,033 | 110,179 | 114,709 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general, and administrative | 50,675 | 54,925 | 100,711 | 107,122 | |||||||||||
| Gains from sales of property | — | (5,041 | ) | — | (5,251 | ) | |||||||||
| Depreciation and amortization | 2,438 | 2,421 | 4,716 | 4,773 | |||||||||||
| Total operating expenses | 53,113 | 52,305 | 105,427 | 106,644 | |||||||||||
| Net operating income | 6,870 | 9,728 | 4,752 | 8,065 | |||||||||||
| Non-operating (income) expenses: | |||||||||||||||
| Interest expense | 6,690 | 6,859 | 13,243 | 13,313 | |||||||||||
| Other (income) expense, net | 29 | (40 | ) | 387 | 120 | ||||||||||
| Income (loss) before provision for (benefit from) income taxes | 151 | 2,909 | (8,878 | ) | (5,368 | ) | |||||||||
| Provision for (benefit from) income taxes | (2,719 | ) | (327 | ) | (2,803 | ) | 4 | ||||||||
| Net income (loss) | $ | 2,870 | $ | 3,236 | $ | (6,075 | ) | $ | (5,372 | ) | |||||
| Weighted average common shares: | |||||||||||||||
| Basic | 87,399 | 85,874 | 87,282 | 85,531 | |||||||||||
| Diluted | 87,862 | 86,472 | 87,282 | 85,531 | |||||||||||
| Basic and diluted net income (loss) per share applicable to common stock | $ | 0.03 | $ | 0.04 | $ | (0.07 | ) | $ | (0.06 | ) | |||||
| BLUELINX HOLDINGS INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands) | |||||||
| (unaudited) | |||||||
| July 4, 2015 | January 3, 2015 | ||||||
| Assets: | |||||||
| Current assets: | |||||||
| Cash | $ | 2,844 | $ | 4,522 | |||
| Receivables, net of allowances of $3.6 million and $3.1 million, respectively | 197,345 | 144,537 | |||||
| Inventories, net | 276,362 | 242,546 | |||||
| Other current assets | 31,680 | 23,289 | |||||
| Total current assets | 508,231 | 414,894 | |||||
| Property, plant, and equipment: | |||||||
| Land and land improvements | 41,219 | 41,095 | |||||
| Buildings | 90,610 | 90,161 | |||||
| Machinery and equipment | 79,431 | 77,279 | |||||
| Construction in progress | 594 | 1,188 | |||||
| Property, plant, and equipment, at cost | 211,854 | 209,723 | |||||
| Accumulated depreciation | (107,455 | ) | (104,456 | ) | |||
| Property, plant, and equipment, net | 104,399 | 105,267 | |||||
| Non-current deferred income tax assets, net | 501 | 501 | |||||
| Other non-current assets | 10,435 | 18,320 | |||||
| Total assets | $ | 623,566 | $ | 538,982 | |||
| Liabilities: | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 115,058 | $ | 67,291 | |||
| Bank overdrafts | 11,852 | 27,280 | |||||
| Accrued compensation | 4,316 | 5,643 | |||||
| Current maturities of long-term debt | 203,142 | 2,679 | |||||
| Deferred income taxes, net | 518 | 518 | |||||
| Other current liabilities | 13,772 | 13,831 | |||||
| Total current liabilities | 348,658 | 117,242 | |||||
| Non-current liabilities: | |||||||
| Long-term debt | 264,113 | 403,274 | |||||
| Pension benefit obligation | 31,956 | 41,734 | |||||
| Other non-current liabilities | 13,394 | 12,758 | |||||
| Total liabilities | 658,121 | 575,008 | |||||
| Stockholders’ deficit: | |||||||
| Common Stock, $0.01 par value, Authorized - 200,000,000 shares; Issued - 89,521,404 and 88,748,638 shares, respectively | 896 | 888 | |||||
| Additional paid-in capital | 254,380 | 253,051 | |||||
| Accumulated other comprehensive loss | (28,217 | ) | (34,425 | ) | |||
| Accumulated stockholders' deficit | (261,614 | ) | (255,540 | ) | |||
| Total stockholders’ deficit | (34,555 | ) | (36,026 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 623,566 | $ | 538,982 | |||
| BLUELINX HOLDINGS INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (In thousands) | |||||||
| (unaudited) | |||||||
| Six Months Ended | Six Months Ended | ||||||
| July 4, 2015 | July 5, 2014 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (6,075 | ) | $ | (5,372 | ) | |
| Adjustments to reconcile net loss to net cash used in operations: | |||||||
| Depreciation and amortization | 4,716 | 4,773 | |||||
| Amortization of debt discount and issuance costs | 1,506 | 1,689 | |||||
| Gains from sales of property | — | (5,251 | ) | ||||
| Severance charges | 853 | 1,276 | |||||
| Intraperiod income tax allocation related to pension plan | (1,134 | ) | (150 | ) | |||
| Pension expense | 476 | 450 | |||||
| Share-based compensation expense | 1,181 | 2,873 | |||||
| Other | (643 | ) | 232 | ||||
| Changes in operating assets and liabilities: | |||||||
| Receivables, net | (52,808 | ) | (55,209 | ) | |||
| Inventories, net | (33,816 | ) | (44,064 | ) | |||
| Accounts payable | 47,767 | 39,620 | |||||
| Restructuring liability | (519 | ) | (1,597 | ) | |||
| Restricted cash related to insurance and other | (803 | ) | (701 | ) | |||
| Prepaid assets | (1,650 | ) | (7,288 | ) | |||
| Accrued compensation and other assets and liabilities | (5,298 | ) | 390 | ||||
| Net cash used in operating activities | (46,247 | ) | (68,329 | ) | |||
| Cash flows from investing activities: | |||||||
| Property, plant, and equipment investments | (1,135 | ) | (1,253 | ) | |||
| Proceeds from sale of assets | 436 | 7,213 | |||||
| Net cash provided by (used in) investing activities | (699 | ) | 5,960 | ||||
| Cash flows from financing activities: | |||||||
| Repurchase of shares to satisfy employee tax withholdings | (261 | ) | (894 | ) | |||
| Repayments on revolving credit facilities | (187,394 | ) | (216,746 | ) | |||
| Borrowings from revolving credit facilities | 256,647 | 290,023 | |||||
| Principal payments on mortgage | (8,534 | ) | (8,262 | ) | |||
| Payments on capital lease obligations | (1,614 | ) | (1,176 | ) | |||
| Increase (decrease) in bank overdrafts | (15,428 | ) | 3,202 | ||||
| Decrease (increase) in restricted cash related to the mortgage | 1,886 | (1,019 | ) | ||||
| Debt financing costs | (34 | ) | — | ||||
| Payments on stock offering, less expenses paid | — | (98 | ) | ||||
| Net cash provided by financing activities | 45,268 | 65,030 | |||||
| Increase (decrease) in cash | (1,678 | ) | 2,661 | ||||
| Cash balance, beginning of period | 4,522 | 5,034 | |||||
| Cash balance, end of period | $ | 2,844 | $ | 7,695 | |||
| Supplemental Cash Flow Information | |||||||
| Noncash investing and financing transactions: | |||||||
| Equipment under capital leases | $ | 2,029 | $ | 1,107 | |||
| Debt financing costs | $ | 1,252 | $ | 201 | |||
| BLUELINX HOLDINGS INC. | |||||||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP ADJUSTED EBITDA | |||||||||||||||
| (In thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||
| July 4, 2015 | July 5, 2014 | July 4, 2015 | July 5, 2014 | ||||||||||||
| (Dollars in thousands) (unaudited) | |||||||||||||||
| Net income (loss) | $ | 2,870 | $ | 3,236 | $ | (6,075 | ) | $ | (5,372 | ) | |||||
| Adjustments: | |||||||||||||||
| Depreciation and amortization | 2,438 | 2,421 | 4,716 | 4,773 | |||||||||||
| Interest expense | 6,690 | 6,859 | 13,243 | 13,313 | |||||||||||
| Provision for (benefit from) income taxes | (2,719 | ) | (327 | ) | (2,803 | ) | 4 | ||||||||
| Gain from the sale of properties | — | (5,041 | ) | — | (5,251 | ) | |||||||||
| Share-based compensation expense, excluding restructuring | 519 | 637 | 1,135 | 1,327 | |||||||||||
| Restructuring, severance, debt fees, and other | (36 | ) | 2,821 | (65 | ) | 2,821 | |||||||||
| Adjusted EBITDA | $ | 9,762 | $ | 10,606 | $ | 10,151 | $ | 11,615 | |||||||