Exhibit 99.1
4300 Wildwood Parkway
Atlanta, GA 30339
1-888-502-BLUE
www.BlueLinxCo.com
BlueLinx Contacts:
| 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 FIRST-QUARTER RESULTS
—Higher Gross Margins on 6% Revenue Growth—
—Higher Gross Margins on 6% Revenue Growth—
ATLANTA — May 6, 2010 — BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the first quarter ended April 3, 2010.
The Company incurred a net loss of $14.7 million, or $0.48 per diluted share for the first quarter of 2010, compared with a net loss of $60.7 million, or $1.95 per diluted share, for the first quarter of 2009. Revenues increased 6% to $431.1 million from $407.1 million for the same period a year ago. Overall unit volume rose 1.4% compared to the year-ago period.
Gross profit for the first quarter totaled $52.3 million, up 18% from $44.3 million in the prior-year period. Gross margins increased to 12.1% from the 10.9% generated in the year earlier period. The improvement in margins was due to the Company’s continued focus on margin improvement, wood-based product pricing and an increase in sales through the warehouse channel. Total operating expenses decreased $2.4 million, or 3.9% from the same period a year ago, as the Company continued to aggressively manage its cost structure. Reported operating loss for the quarter was $8.0 million, compared with an operating loss of $18.4 million a year ago.
“While we achieved our first year over year quarterly increase in revenue in four years, our results were hindered by unusually severe weather conditions throughout the country” said BlueLinx President and CEO George Judd. “However, since the later part of the first quarter, we have seen an increase in demand for our products as the housing market appears to have begun its recovery.”
The Company’s operating results for the first quarter of 2010, 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):
BlueLinx 1Q ’10 Press Release
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| in millions, except per share amounts | Quarter Ended | |||
| (unaudited) | April 3, 2010 | |||
| Pretax loss | ($14.7 | ) | ||
| Changes associated with the ineffective interest rate swap | (0.8 | ) | ||
| Adjusted pretax loss | (15.5 | ) | ||
| Adjusted benefit from income taxes | (5.9 | ) | ||
| Adjusted net loss | ($9.6 | ) | ||
| Diluted weighted average shares | 30.6 | |||
| Adjusted diluted net loss per share applicable to common shares | ($0.31 | ) | ||
The above table reflects the effect of a reduction to the fair value of the Company’s ineffective interest rate swap offset by the continued amortization of the other comprehensive loss related to the ineffective interest rate swap into interest expense. The adjusted benefit from income taxes reflected in the table is based on the Company’s effective tax rate for the current quarter, excluding the valuation allowance related to its deferred tax assets of $5.7 million, which assumes the Company is in a position to demonstrate that the deferred tax assets were 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 706-645-9291, Conference ID# 71272977. 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 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 2,000 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 atwww.BlueLinxCo.com.
BlueLinx 1Q ’10 Press Release
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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 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 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 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 January 2, 2010 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 -
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BlueLinx Holdings Inc.
Statements of Operations
in thousands, except per share data
Statements of Operations
in thousands, except per share data
| Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||
| April 3, | April 4, | |||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 431,050 | $ | 407,111 | ||||||||||||||||||||||||||||||||||||||||
| Cost of sales | 378,772 | 362,835 | ||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 52,278 | 44,276 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Selling, general, and administrative | 56,514 | 57,665 | ||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,744 | 5,030 | ||||||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 60,258 | 62,695 | ||||||||||||||||||||||||||||||||||||||||||
| Operating loss | (7,980 | ) | (18,419 | ) | ||||||||||||||||||||||||||||||||||||||||
Non-operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 7,315 | 8,117 | ||||||||||||||||||||||||||||||||||||||||||
| Changes associated with the ineffective interest rate swap | (805 | ) | 4,832 | |||||||||||||||||||||||||||||||||||||||||
| Write-off of debt issuance costs | — | 1,407 | ||||||||||||||||||||||||||||||||||||||||||
| Other expense (income), net | 233 | (157 | ) | |||||||||||||||||||||||||||||||||||||||||
| Loss before provision for income taxes | (14,723 | ) | (32,618 | ) | ||||||||||||||||||||||||||||||||||||||||
| Provision for income taxes | 16 | 28,035 | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | $ | (14,739 | ) | $ | (60,653 | ) | ||||||||||||||||||||||||||||||||||||||
| Basic and diluted weighted average number of common shares outstanding | 30,587 | 31,083 | ||||||||||||||||||||||||||||||||||||||||||
| Basic and diluted net loss per share applicable to common stock | $ | (0.48 | ) | $ | (1.95 | ) | ||||||||||||||||||||||||||||||||||||||
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BlueLinx Holdings Inc.
Balance Sheets
in thousands
Balance Sheets
in thousands
| April 3, | January 2, | |||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2010 | |||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||
| Current assets: | ||||||||||||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 13,379 | $ | 29,457 | ||||||||||||||||||||||||||||||||||||||||
| Receivables, net | 183,942 | 119,347 | ||||||||||||||||||||||||||||||||||||||||||
| Inventories, net | 198,799 | 173,185 | ||||||||||||||||||||||||||||||||||||||||||
| Other current assets | 18,888 | 44,970 | ||||||||||||||||||||||||||||||||||||||||||
| Total current assets | 415,008 | 366,959 | ||||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment: | ||||||||||||||||||||||||||||||||||||||||||||
| Land and improvements | 52,704 | 52,621 | ||||||||||||||||||||||||||||||||||||||||||
| Buildings | 96,509 | 96,145 | ||||||||||||||||||||||||||||||||||||||||||
| Machinery and equipment | 71,165 | 69,767 | ||||||||||||||||||||||||||||||||||||||||||
| Construction in progress | 564 | 791 | ||||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment, at cost | 220,942 | 219,324 | ||||||||||||||||||||||||||||||||||||||||||
| Accumulated depreciation | (85,008 | ) | (82,141 | ) | ||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment, net | 135,934 | 137,183 | ||||||||||||||||||||||||||||||||||||||||||
| Other non-current assets | 38,806 | 42,704 | ||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 589,748 | $ | 546,846 | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
| Accounts payable | $ | 85,938 | $ | 64,618 | ||||||||||||||||||||||||||||||||||||||||
| Bank overdrafts | 37,185 | 27,232 | ||||||||||||||||||||||||||||||||||||||||||
| Accrued compensation | 5,181 | 4,879 | ||||||||||||||||||||||||||||||||||||||||||
| Other current liabilities | 23,058 | 22,508 | ||||||||||||||||||||||||||||||||||||||||||
| Total current liabilities | 151,362 | 119,237 | ||||||||||||||||||||||||||||||||||||||||||
| Noncurrent liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
| Long-term debt | 366,334 | 341,669 | ||||||||||||||||||||||||||||||||||||||||||
| Other non-current liabilities | 34,785 | 35,120 | ||||||||||||||||||||||||||||||||||||||||||
| Total liabilities | 552,481 | 496,026 | ||||||||||||||||||||||||||||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||||||||||||||||||||||||||
| Common stock | 327 | 322 | ||||||||||||||||||||||||||||||||||||||||||
| Additional paid in capital | 145,490 | 145,035 | ||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | (7,649 | ) | (8,375 | ) | ||||||||||||||||||||||||||||||||||||||||
| Accumulated deficit | (100,901 | ) | (86,162 | ) | ||||||||||||||||||||||||||||||||||||||||
| Total shareholders’ equity | 37,267 | 50,820 | ||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 589,748 | $ | 546,846 | ||||||||||||||||||||||||||||||||||||||||
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BlueLinx Holdings Inc.
Statements of Cash Flows
in thousands
Statements of Cash Flows
in thousands
| Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||
| April 3, | April 4, | |||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||||||||
| Net loss | $ | (14,739 | ) | $ | (60,653 | ) | ||||||||||||||||||||||||||||||||||||||
| Adjustments to reconcile net loss to cash used in operations: | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,744 | 5,030 | ||||||||||||||||||||||||||||||||||||||||||
| Amortization of debt issuance costs | (73 | ) | 614 | |||||||||||||||||||||||||||||||||||||||||
| Payment from terminating the Georgia-Pacific supply agreement | 4,706 | — | ||||||||||||||||||||||||||||||||||||||||||
| Changes associated with the ineffective interest rate swap | (805 | ) | 4,832 | |||||||||||||||||||||||||||||||||||||||||
| Write-off of debt issuance costs | — | 1,407 | ||||||||||||||||||||||||||||||||||||||||||
| Deferred income tax (benefit) provision | (207 | ) | 27,230 | |||||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | 1,043 | 537 | ||||||||||||||||||||||||||||||||||||||||||
| Decrease in restricted cash related to the ineffective interest rate swap, insurance, and other | 5,882 | (159 | ) | |||||||||||||||||||||||||||||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||||||
| Receivables | (64,595 | ) | (26,137 | ) | ||||||||||||||||||||||||||||||||||||||||
| Inventories | (25,614 | ) | 11,385 | |||||||||||||||||||||||||||||||||||||||||
| Accounts payable | 21,320 | 21,908 | ||||||||||||||||||||||||||||||||||||||||||
| Changes in other working capital | 22,879 | (3,949 | ) | |||||||||||||||||||||||||||||||||||||||||
| Other | (134 | ) | (428 | ) | ||||||||||||||||||||||||||||||||||||||||
| Net cash used in operating activities | (46,593 | ) | (18,383 | ) | ||||||||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||||||
| Property, plant, and equipment investments | (409 | ) | (166 | ) | ||||||||||||||||||||||||||||||||||||||||
| Proceeds from disposition of assets | 149 | 421 | ||||||||||||||||||||||||||||||||||||||||||
| Net cash (used in) provided by investing activities | (260 | ) | 255 | |||||||||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||||||
| Repurchase of common stock | (583 | ) | (792 | ) | ||||||||||||||||||||||||||||||||||||||||
| Increase (decrease) in the revolving credit facility | 24,665 | (60,000 | ) | |||||||||||||||||||||||||||||||||||||||||
| Payments on capital lease obligations | (402 | ) | — | |||||||||||||||||||||||||||||||||||||||||
| Increase (decrease) in bank overdrafts | 9,953 | (8,531 | ) | |||||||||||||||||||||||||||||||||||||||||
| Increase in restricted cash related to the mortgage | (2,864 | ) | (2,878 | ) | ||||||||||||||||||||||||||||||||||||||||
| Other | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||
| Net cash provided by (used in) financing activities | 30,775 | (72,195 | ) | |||||||||||||||||||||||||||||||||||||||||
| Decrease in cash | (16,078 | ) | (90,323 | ) | ||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | 29,457 | 150,353 | ||||||||||||||||||||||||||||||||||||||||||
| Balance, end of period | $ | 13,379 | $ | 60,030 | ||||||||||||||||||||||||||||||||||||||||
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BlueLinx Holdings Inc.
Reconciliation of GAAP Loss to Adjusted Net Loss
in thousands
Reconciliation of GAAP Loss to Adjusted Net Loss
in thousands
| Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||
| April 3, | April 4, | |||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
| GAAP net loss | $ | (14,739 | ) | $ | (60,653 | ) | ||||||||||||||||||||||||||||||||||||||
| Changes associated with the ineffective interest rate swap | (805 | ) | 4,832 | |||||||||||||||||||||||||||||||||||||||||
| Facility consolidations & severance related costs | — | 1,079 | ||||||||||||||||||||||||||||||||||||||||||
| Write-off of debt issuance costs | — | 1,407 | ||||||||||||||||||||||||||||||||||||||||||
| Tax effect of selected charges | 311 | (2,825 | ) | |||||||||||||||||||||||||||||||||||||||||
| Valuation allowance | 5,683 | 40,200 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss | $ | (9,550 | ) | $ | (15,960 | ) | ||||||||||||||||||||||||||||||||||||||
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BlueLinx Holdings Inc.
Adjusted Net Loss
in thousands, except per share data
Adjusted Net Loss
in thousands, except per share data
| Quarters Ended | ||||||||||||||||||||||||||||||||||||||||||||
| April, 3 | April 4, | |||||||||||||||||||||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
| Pretax loss | $ | (14,723 | ) | $ | (32,618 | ) | ||||||||||||||||||||||||||||||||||||||
| Changes associated with the ineffective interest rate swap | (805 | ) | 4,832 | |||||||||||||||||||||||||||||||||||||||||
| Facility consolidations & severance related costs | — | 1,079 | ||||||||||||||||||||||||||||||||||||||||||
| Write-off of debt issuance costs | — | 1,407 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted pretax loss | (15,528 | ) | (25,300 | ) | ||||||||||||||||||||||||||||||||||||||||
| Adjusted benefit from income taxes | (5,978 | ) | (9,340 | ) | ||||||||||||||||||||||||||||||||||||||||
| Adjusted net loss | $ | (9,550 | ) | $ | (15,960 | ) | ||||||||||||||||||||||||||||||||||||||
| Diluted weighted average shares | 30,587 | 31,083 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted diluted net loss per share applicable to common shares | $ | (0.31 | ) | $ | (0.51 | ) | ||||||||||||||||||||||||||||||||||||||
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