EX-99.1 2 d389796dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

4300 Wildwood Parkway

Atlanta, GA 30339

1-888-502-BLUE

www.BlueLinxCo.com

 

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 SECOND-QUARTER RESULTS

– Operating Profit of $3.9 Million for the Quarter –

ATLANTA – August 2, 2012 – BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the second quarter ended June 30, 2012.

The Company incurred a net loss of $3.7 million, or $0.06 per diluted share, for the second quarter of 2012, compared to a net loss of $9.8 million, or $0.31 per diluted share, for the second quarter of 2011. Revenues for the second quarter increased 3.2% to $517.0 million from $500.8 million for the same period a year ago. The increase in revenue is attributable to increased underlying product prices for both specialty and structural product categories. Overall unit volume declined 1.3% compared to the same period a year ago as seasonal demand was pulled forward by favorable weather experienced during the first quarter of fiscal 2012 and the Company focused on improving gross profit through profitable revenue growth.

Gross profit for the second quarter ended June 30, 2012 totaled $63.2 million, up 9.6% from $57.6 million in the year-ago period. Gross margins increased to 12.2% from the 11.5% generated in the year-ago period. These increases reflect the Company’s continued focus on margin expansion, rising product prices for many of the products distributed, including key grades of wood-based products, and a shift to the warehouse channel from the direct and reload channels.

Total operating expenses of $59.3 million for the second quarter were flat compared to the same period a year ago and included a $0.5 million gain from a property insurance settlement in 2012. Reported operating income for the quarter was $3.9 million, compared with an operating loss of $1.8 million a year ago.

“For the second quarter we grew our revenue, increased our margins, and kept our operating expenses flat as we expanded our out-of-warehouse business, producing an improved operating profit of $3.9 million. This is our first quarterly operating profit since the second quarter of 2010,” said BlueLinx President and CEO George Judd. “We expect our operating results to continue to improve as we continue to execute our strategy in a recovering housing market,” Mr. Judd continued.

For the six months ended June 30, 2012, net loss totaled $14.7 million, or $0.25 per diluted share, compared with $22.1 million, or $0.71 per diluted share, a year ago. Revenues for the six months totaled $970.7 million, up 8.9% from $891.4 million the same period a year ago, reflecting higher structural and specialty product prices and unit volumes. Gross profit for the six months ended June 30, 2012 totaled $117.4 million and gross margin was 12.1%, compared with $103.9 million and 11.7%, respectively, a year earlier. Operating expenses increased to $117.6 million from $110.8 million a year ago and included total gains of $1.0 million from an insurance settlement and the sale of certain properties in the first half of 2012 and a $7.2 million gain from the sale of certain properties in 2011.


BlueLinx 2Q ’12 Press Release

Page 2 of 7

 

The Company’s operating results for the 2012 and 2011 second quarter and year-to-date periods, 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):

 

     Quarters Ended     Six Months Ended  

in millions, except per share amounts

(unaudited)

   June 30,
2012
    July 2,
2011
    June 30,
2012
    July 2,
2011
 

Pretax loss

   ($ 3.5   ($ 9.6   ($ 14.3   ($ 22.1

Gain from sale of certain properties

     —          —          (0.5     (7.2

Gain from property insurance settlement

     (0.5     —          (0.5     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted pretax loss before the effect of special interest items

     (4.0     (9.6     (15.3     (29.3

Changes associated with the ineffective interest rate swap

     —          —          —          (1.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted pretax loss

     (4.0     (9.6     (15.3     (31.1

Adjusted benefit from income taxes

     (1.3     (3.5     (5.5     (12.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net loss

   ($ 2.6   ($ 6.1   ($ 9.8   ($ 19.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average shares

     60.1        31.1        60.1        31.0   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted net loss per share applicable to common shares

   ($ 0.04   ($ 0.20   ($ 0.16   ($ 0.62
  

 

 

   

 

 

   

 

 

   

 

 

 

For the quarter and year-to-date periods ended June 30, 2012, the above table reflects the following events; (i) the Company recorded a gain on the sale of certain surplus properties during the first quarter of 2012; (ii) the Company recorded a gain from a property insurance settlement. The adjusted benefit from income taxes reflected in the table is comprised of the Company’s effective tax rate excluding the valuation allowance related to its deferred tax assets and the tax effect of significant special items. The valuation allowance recorded for the quarter and year-to-date periods are $1.4 million and $5.5 million, respectively. The adjusted benefit from income taxes assumes the Company’s deferred tax assets are realizable.

For the quarter and year-to-date periods ended July 2, 2011, the above table reflects the following events: (i) the Company recorded a gain on the sale of certain surplus properties during the first quarter of 2011; (ii) the Company recorded the effect of a reduction in the fair value of its terminated ineffective interest rate swap partially offset by the continued amortization of the accumulated other comprehensive loss related to the ineffective interest rate swap into interest expense. The adjusted benefit from income taxes reflected in the table is comprised of the Company’s effective tax rate excluding the valuation allowance related to its deferred tax assets, a tax benefit related to our intra period income tax allocation to other comprehensive income and the tax effect of significant special items. The valuation allowance recorded for the quarter and year-to-date periods are $3.7 million and $8.5 million, respectively. The adjusted benefit from income taxes assumes the Company’s deferred tax assets are 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 404-537-3406, Conference ID# 13021334. 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.


BlueLinx 2Q ’12 Press Release

Page 3 of 7

 

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 1,900 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 approximately 55 distribution centers. 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, including statements relating to our ability to return to profitability and 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 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 supply and/or demand for products that it distributes, 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 December 31, 2011 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 2Q ’12 Press Release

Page 4 of 7

 

BlueLinx Holdings Inc.

Statements of Operations

        in thousands, except per share data

 

     Quarters Ended     Six Months Ended  
     June 30,     July 2,     June 30,     July 2,  
     2012     2011     2012     2011  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Net sales

   $ 517,026      $ 500,810      $ 970,734      $ 891,414   

Cost of sales

     453,838        443,165        853,314        787,500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     63,188        57,645        117,420        103,914   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling, general, and administrative

     57,136        56,780        113,202        105,227   

Depreciation and amortization

     2,187        2,624        4,447        5,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     59,323        59,404        117,649        110,788   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     3,865        (1,759     (229     (6,874

Non-operating expenses:

        

Interest expense

     7,325        7,730        14,107        16,791   

Changes associated with the ineffective interest rate swap, net

     —          —          —          (1,751

Other expense, net

     49        134        (13     149   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before provision for income taxes

     (3,509     (9,623     (14,323     (22,063

Provision for income taxes

     197        158        402        44   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (3,706   $ (9,781   $ (14,725   $ (22,107
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted weighted average number of common shares outstanding

     60,098        31,063        60,050        30,953   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted net loss per share applicable to common shares

   $ (0.06   $ (0.31   $ (0.25   $ (0.71
  

 

 

   

 

 

   

 

 

   

 

 

 


BlueLinx 2Q ’12 Press Release

Page 5 of 7

 

BlueLinx Holdings Inc.

Balance Sheets

        in thousands

 

     June 30,     December 31,  
     2012     2011  
     (unaudited)        

Assets:

    

Current assets:

    

Cash and cash equivalents

   $ 5,151      $ 4,898   

Receivables, net

     202,114        138,872   

Inventories, net

     235,630        185,577   

Other current assets

     27,397        27,141   
  

 

 

   

 

 

 

Total current assets

     470,292        356,488   
  

 

 

   

 

 

 

Property, plant, and equipment:

    

Land and land improvements

     42,808        49,562   

Buildings

     94,332        95,652   

Machinery and equipment

     76,072        75,508   

Construction in progress

     1,215        741   
  

 

 

   

 

 

 

Property, plant, and equipment, at cost

     214,427        221,463   

Accumulated depreciation

     (102,267     (98,335
  

 

 

   

 

 

 

Property, plant, and equipment, net

     112,160        123,128   

Non-current deferred income tax assets, net

     382        358   

Other non-current assets

     27,822        23,941   
  

 

 

   

 

 

 

Total assets

   $ 610,656      $ 503,915   
  

 

 

   

 

 

 

Liabilities:

    

Current liabilities:

    

Accounts payable

   $ 78,850      $ 70,228   

Bank overdrafts

     30,703        22,364   

Accrued compensation

     6,510        4,496   

Current maturities of long-term debt

     60,495        9,046   

Deferred income taxes, net

     382        382   

Other current liabilities

     12,371        16,558   
  

 

 

   

 

 

 

Total current liabilities

     189,311        123,074   
  

 

 

   

 

 

 

Noncurrent liabilities:

    

Long-term debt

     381,672        328,695   

Other non-current liabilities

     45,152        43,772   
  

 

 

   

 

 

 

Total liabilities

     616,135        495,541   
  

 

 

   

 

 

 

Stockholders’ (Deficit) Equity:

    

Common stock

     637        620   

Additional paid-in capital

     208,457        207,626   

Accumulated other comprehensive loss

     (21,873     (21,900

Accumulated deficit

     (192,700     (177,972
  

 

 

   

 

 

 

Total stockholders’ (deficit) equity

     (5,479     8,374   
  

 

 

   

 

 

 

Total liabilities and stockholders’ (deficit) equity

   $ 610,656      $ 503,915   
  

 

 

   

 

 

 


BlueLinx 2Q ’12 Press Release

Page 6 of 7

 

BlueLinx Holdings Inc.

Statements of Cash Flows

        in thousands

 

     Six Months Ended  
     June 30,     July 2,  
     2012     2011  
     (unaudited)     (unaudited)  

Cash flows from operating activities:

    

Net loss

   $ (14,725   $ (22,107

Adjustments to reconcile net loss to cash used in operations:

    

Depreciation and amortization

     4,447        5,561   

Amortization of debt issuance costs

     1,863        1,094   

Gain from sale of properties

     (530     (7,222

Gain from property insurance settlement

     (476     —     

Changes associated with the ineffective interest rate swap

     —          (1,751

Vacant property charges, net

     (78     —     

Payments on modification on lease agreement

     (5,000     —     

Deferred income tax benefit

     (24     (214

Share-based compensation expense

     1,420        1,137   

Decrease in restricted cash related to the swap, insurance, and other

     657        432   

Changes in assets and liabilities:

    

Receivables

     (63,242     (86,533

Inventories

     (50,053     (24,404

Accounts payable

     10,050        32,495   

Changes in other working capital

     (4,382     (1,338

Other

     9,967        1,625   
  

 

 

   

 

 

 

Net cash used in operating activities

     (110,106     (101,225
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Property, plant, and equipment investments

     (2,140     (5,341

Proceeds from disposition of assets

     1,915        8,971   
  

 

 

   

 

 

 

Net cash (used in) provided by investing activities

     (225     3,630   
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Repurchase of shares to satisfy employee tax withholdings

     (424     —     

Repayments on the revolving credit facilities

     (201,403     (171,736

Borrowings from the revolving credit facilities

     313,666        263,446   

Payment of principal on mortgage

     (7,747     —     

Payments on capital lease obligations

     (414     (197

Increase in bank overdrafts

     8,339        5,709   

Increase in restricted cash related to the mortgage

     —          (7,815

Debt financing costs

     (1,433     —     
  

 

 

   

 

 

 

Net cash provided by financing activities

     110,584        89,407   
  

 

 

   

 

 

 

Increase (decrease) in cash

     253        (8,188

Balance, beginning of period

     4,898        14,297   
  

 

 

   

 

 

 

Balance, end of period

   $ 5,151      $ 6,109   
  

 

 

   

 

 

 

Non Cash Transactions:

    

Capital leases

   $ 32      $ 2,544   
  

 

 

   

 

 

 


BlueLinx 2Q ‘12 Press Release

Page 7 of 7

 

BlueLinx Holdings Inc.

Adjusted Pre-Tax Loss

        in thousands, except for per share amounts

 

     Quarters Ended     Six Months Ended  
     June 30,     July 2,     June 30,     July 2,  
     2012     2011     2012     2011  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Pretax loss

   $ (3,509   $ (9,623   $ (14,323   $ (22,063

Gain from sale of certain properties

     48        —          (530     (7,222

Gain from property insurance settlement

     (476     —          (476     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted pretax loss before the effect of special interest items

     (3,937     (9,623     (15,329     (29,285

Changes associated with the ineffective interest rate swap

     —          —          —          (1,751
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted pretax loss

     (3,937     (9,623     (15,329     (31,036

Adjusted benefit from income taxes

     (1,322     (3,546     (5,515     (11,950
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net loss

   $ (2,615   $ (6,077   $ (9,814   $ (19,086
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average shares

     60,098        31,063        60,050        30,953   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted net loss per share applicable to common shares

   $ (0.04   $ (0.20   $ (0.16   $ (0.62
  

 

 

   

 

 

   

 

 

   

 

 

 

BlueLinx Holdings Inc.

Reconciliation of GAAP Net Loss to Adjusted Net Loss

        in thousands

 

     Quarters Ended     Six Months Ended  
     June 30,     July 2,     June 30,     July 2,  
     2012     2011     2012     2011  
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

GAAP net loss

   $ (3,706   $ (9,781   $ (14,725   $ (22,107

Gain from sale of certain properties

     48        —          (530     (7,222

Gain from property insurance settlement

     (476     —          (476     —     

Changes associated with the ineffective interest rate swap

     —          —          —          (1,751

Tax effect of selected charges

     165        —          388        3,465   

Valuation allowance

     1,354        3,704        5,529        8,529   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net loss

   $ (2,615   $ (6,077   $ (9,814   $ (19,086
  

 

 

   

 

 

   

 

 

   

 

 

 

###