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 FOURTH-QUARTER AND FULL-YEAR RESULTS
– Markets Continue Improvement as Fourth Quarter Sales Rise 10.4% –
– Full Year Comparable Same Center Revenue Increases 13.5% –
– Restructuring Initiatives Completed in 2013 –
ATLANTA – February 20, 2014 – BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the fiscal fourth quarter and fiscal year ending January 4, 2014. The fiscal fourth quarter and fiscal year ending January 4, 2014, included 14 and 53 weeks respectively, compared to 13 and 52 weeks respectively, for the fiscal fourth quarter and fiscal year ending December 29, 2012.
“Our operating performance for the fourth quarter of 2013 represents an improvement in net sales reflecting continued market recovery while our Adjusted EBITDA improved over 2012 levels,” said Mitch Lewis, President and Chief Executive Officer. “We are gaining traction on the previously announced restructuring efforts that were completed in 2013. Our organization is intently focused on improving our gross margins and operating more efficiently to facilitate leveraging our incremental volume to enhance our financial performance,” Mr. Lewis concluded.
Revenues for the fiscal fourth quarter ending January 4, 2014, increased 10.4% to $486.3 million from $440.3 million for the fiscal fourth quarter ended December 29, 2012. On a 13-week comparable same center basis, 2013 fourth quarter revenue increased to $467.1 million or 12.1% compared to the fiscal fourth quarter of 2012. Adjusted EBITDA loss for the 2013 fiscal fourth quarter improved to $1.0 million from an adjusted EBITDA loss of $1.4 million for the same period a year ago. The 2013 quarterly adjusted EBITDA was $0.1 million, a year-over-year improvement of $1.5 million when considering the additional week in the 2013 fiscal fourth quarter.
For the full fiscal year 2013, revenues totaled $2.15 billion, up 12.8% from $1.91 billion the same period a year ago. On a 52-week comparable same center basis, revenues for the 2013 year increased 13.5%.
BlueLinx 4Q ’13 Press Release
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The Company’s net sales and Adjusted EBITDA for the 2013 and fiscal 2012 fourth quarter and full year periods, reported on a comparable same center basis, 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):
| | | | | | | | | | | | | | | | | |
Comparable Same Center
Net Sales and Adjusted EBITDA
in millions
(unaudited) | | For the 13-week and 13-week
Periods Ended | | | For the 52-week and 52-week
Periods Ended | |
| | | Quarters Ended | | | Years Ended | |
| | | January 4, 2014 | | | December 29, 2012 | | | January 4, 2014 | | | December 29, 2012 | |
| Comparable Net Sales | | $ | 467.1 | | | $ | 416.7 | | | $ | 2,047.2 | | | $ | 1,803.1 | |
| Comparable Adjusted EBITDA | | $ | 0.1 | | | ($ | 1.4 | ) | | $ | 2.4 | | | $ | 6.0 | |
The Company incurred a net loss of $2.5 million, or $0.03 per diluted share for the fiscal fourth quarter of 2013, compared with a net loss of $11.4 million, or $0.17 per diluted share, for the fiscal fourth quarter of 2012. The current quarter net loss included an income tax benefit of $8.0 million related to the allocation of income tax expense to other comprehensive loss for a non-operating actuarial gain associated with the Company’s hourly pension plan. Fiscal fourth-quarter results for 2013 included net pretax gains from significant special items of $0.1 million, or $0.00 per diluted share. Fiscal fourth-quarter results for 2012 included net pretax charges from significant special items of $0.5 million, or $0.01 per diluted share. After adjusting for significant special items, 2013 fiscal fourth quarter adjusted net loss was $6.4 million, or $0.08 per diluted share, compared to an adjusted net loss of $6.7 million, or $0.10 per diluted share, for the same period a year ago.
Gross profit for the 2013 fiscal fourth quarter totaled $54.3 million, up 4.3% from $52.1 million in the year-ago period. Gross margins for the 2013 fiscal fourth quarter of 11.2% were up compared to the full fiscal year gross margin of 10.6%, and down compared to 11.8% for the same period a year ago. Overall 2013 fiscal fourth quarter gross margins were impacted by a higher channel mix of direct and reload sales and higher year ago structural wood-based product prices.
Fiscal 2013 fourth-quarter operating expenses were $58.1 million compared to $56.7 million for the same period a year ago. Significant special items included in operating expenses for the 2013 fiscal fourth quarter included $1.3 million in gains from the sale of certain properties and $1.2 million in restructuring and severance costs. Significant special items included in operating expenses in the year ago quarter included $0.2 million in gains from the sale of certain properties. Operating expenses in the year ago period also included $3.5 million in expenses related to the five closed distribution centers. After adjusting for significant special items, closed distribution centers, and the 53rd week, operating expense as a percentage of comparable same center revenue improved to 11.7% in the 2013 fiscal fourth quarter from 12.8% in the year ago period. Reported operating loss for the 2013 fiscal fourth quarter was $3.7 million, compared to an operating loss of $4.5 million a year ago and reflects the increase in gross margin dollars and the significant special items detailed in the adjusted net loss table below.
Fiscal 2013 full-year net loss totaled $40.6 million, or $0.51 per diluted share, compared with a net loss of $23.0 million, or $0.35 per diluted share a year ago. Fiscal full-year results for 2013 included net pretax charges from significant special items of $10.6 million, or $0.13 per diluted share. Fiscal full-year results for 2012 included net pretax gains from significant special items of $10.9 million, or $0.17 per diluted share.
Gross profit for the 2013 fiscal year totaled $228.5 million and gross margin was 10.6%, compared with $230.1 million and 12.1% a year ago. Declines in gross margin were driven by volatility in wood-based structural product pricing, primarily during the fiscal 2013 second quarter. The decline in gross margin was further impacted by lower margin structural sales increasing from 42% of revenue in the year ago period to 45% of revenue for the year ended January 4, 2014.
BlueLinx 4Q ’13 Press Release
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Total operating expenses for the 2013 fiscal year increased to $249.8 million from $224.6 million a year ago. Significant special items included in operating expenses for the 2013 fiscal year included $5.2 million in gains from the sale of certain properties, $12.1 million in restructuring and severance costs, and $10.0 million in expenses related to closed distribution centers. Significant special items included in operating expenses in the year ago period included total gains of $10.4 million from the sale of certain properties and an insurance settlement. Operating expense in 2012 also included $12.7 million in expenses related to the five distribution centers closed in 2013. After adjusting for significant special items, closed distribution centers, and the 53rd week, operating expense as a percentage of comparable same center revenue improved to 11.6% for the 2013 fiscal year from 11.8% a year ago. Reported operating loss for 2013 was $21.3 million, compared to operating income of $5.5 million a year ago and reflects the decline in gross margin and the significant special items detailed in the adjusted net loss table below.
The Company’s net sales for the 2013 and 2012 fiscal fourth quarter and fiscal full year periods, reported on a same center and comparable basis, 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):
| | | | | | | | | | | | | | | | | | | | | | | | | |
Comparable Same
Center Net Sales
in millions
(unaudited) | | Quarters Ended | | | Years Ended | |
| | | January 4, 2014 | | | December 29, 2012 | | | % Inc (Dec) | | | January 4, 2014 | | | December 29, 2012 | | | % Inc (Dec) | |
| Total Net Sales | | $ | 486.3 | | | $ | 440.3 | | | | 10.4 | % | | $ | 2,152.0 | | | $ | 1,907.8 | | | | 12.8 | % |
| Less: Closed Center | | | - | | | | 23.6 | | | | (100.0 | %) | | | 85.6 | | | | 104.7 | | | | (18.2 | %) |
| Same Center | | | 486.3 | | | | 416.7 | | | | 16.7 | % | | | 2,066.4 | | | | 1,803.1 | | | | 14.6 | % |
| Less: Week of December 29, 2013 | | | 19.2 | | | | - | | | nmf | | | | 19.2 | | | | - | | | nmf | |
| Comparable 13/52-week vs. 13/52-week | | $ | 467.1 | | | $ | 416.7 | | | | 12.1 | % | | $ | 2,047.2 | | | $ | 1,803.1 | | | | 13.5 | % |
The Company’s Adjusted EBITDA for the 2013 and 2012 fiscal fourth quarter and fiscal full year periods, reported on a same center and comparable basis, 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):
| | | | | | | | | | | | | | | | | |
Adjusted EBITDA
in millions
(unaudited) | | Quarters Ended | | | Years Ended | |
| | | January 4, 2014 | | | December 29, 2012 | | | January 4, 2014 | | | December 29, 2012 | |
| Net loss | | $ | (2.5 | ) | | $ | (11.4 | ) | | $ | (40.6 | ) | | $ | (23.0 | ) |
| Reconciling items: | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 2.6 | | | | 2.0 | | | | 9.1 | | | | 8.6 | |
| Interest expense, net | | | 7.0 | | | | 6.8 | | | | 28.0 | | | | 28.2 | |
| (Benefit from) provision for income taxes | | | (8.3 | ) | | | - | | | | (9.0 | ) | | | 0.4 | |
| Loss (income) from closed distribution centers | | | - | | | | 0.7 | | | | 3.7 | | | | (0.5 | ) |
| Gain from sale of certain properties | | | (1.3 | ) | | | (0.2 | ) | | | (5.2 | ) | | | (9.9 | ) |
| Gain from property insurance settlement | | | - | | | | - | | | | - | | | | (0.5 | ) |
| Stock-based compensation (excluding restructuring) | | | 0.4 | | | | 0.7 | | | | 3.2 | | | | 2.8 | |
| Restructuring and severance related costs | | | 1.2 | | | | - | | | | 12.1 | | | | - | |
| Adjusted EBITDA Same Center | | $ | (1.0 | ) | | $ | (1.4 | ) | | $ | 1.3 | | | $ | 6.0 | |
| Add back EBITDA loss week of December 29, 2013 | | | 1.1 | | | | - | | | | 1.1 | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | 0.1 | | | $ | (1.4 | ) | | $ | 2.4 | | | $ | 6.0 | |
| % Same Center | | | (0.2 | %) | | | (0.3 | %) | | | 0.1 | % | | | 0.3 | % |
| % Comparable 13/52-week vs. 13/52-week | | | 0.0 | % | | | (0.3 | %) | | | 0.1 | % | | | 0.3 | % |
BlueLinx 4Q ’13 Press Release
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The Company’s operating results for the 2013 and 2012 fiscal fourth quarter and fiscal full year 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):
| | | | | | | | | | | | | | | | | |
Adjusted Net Loss in millions, except per share amounts (unaudited) | | Quarters Ended | | | Years Ended | |
| | | January 4,
2014 | | | December 29,
2012 | | | January 4,
2014 | | | December 29,
2012 | |
| Pretax loss | | $ | (10.8 | ) | | $ | (11.3 | ) | | $ | (49.6 | ) | | $ | (22.6 | ) |
| Loss (income) from closed distribution centers | | | - | | | | 0.7 | | | | 3.7 | | | | (0.5 | ) |
| Gain from sale of certain properties | | | (1.3 | ) | | | (0.2 | ) | | | (5.2 | ) | | | (9.9 | ) |
| Gain from property insurance settlement | | | - | | | | - | | | | - | | | | (0.5 | ) |
| Restructuring and severance related costs | | | 1.2 | | | | - | | | | 12.1 | | | | - | |
| | | | | | | | | | | | | | | | | |
| Adjusted pretax loss | | | (10.9 | ) | | | (10.8 | ) | | | (39.0 | ) | | | (33.5 | ) |
| Adjusted benefit from income taxes | | | (4.5 | ) | | | (4.1 | ) | | | (15.4 | ) | | | (12.6 | ) |
| | | | | | | | | | | | | | | | | |
| Adjusted net loss | | $ | (6.4 | ) | | $ | (6.7 | ) | | $ | (23.7 | ) | | $ | (21.0 | ) |
| | | | | | | | | | | | | | | | | |
| Basic and diluted weighted average shares | | | 84.8 | | | | 65.5 | | | | 80.2 | | | | 65.5 | |
| | | | | | | | | | | | | | | | | |
| Adjusted basic and diluted net loss per share applicable to common shares | | $ | (0.08 | ) | | $ | (0.10 | ) | | $ | (0.30 | ) | | $ | (0.32 | ) |
For the fiscal quarter and fiscal full year periods ended January 4, 2014, the above table reflects the following events: (i) the Company recorded a loss from closed distribution centers; (ii) the Company recorded a gain on the sale of certain surplus properties; (iii) the Company recorded certain restructuring and severance related costs. 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 adjusted benefit from income taxes assumes the Company’s deferred tax assets are realizable. See the reconciliation of GAAP Net Loss to Adjusted Net Loss accompanying this press release for further details.
For the fiscal quarter and fiscal full year periods ended December 29, 2012, the above table reflects the following events: (i) the Company recorded a quarterly loss and annual profit from closed distribution centers; (ii) the Company recorded a gain on the sale of certain surplus properties; (iii) 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 adjusted benefit from income taxes assumes the Company’s deferred tax assets are realizable. See the reconciliation of GAAP Net Loss to Adjusted Net Loss accompanying this press release for further details.
Liquidity and Capital Resources
As of February 8, 2014, the Company had $59.2 million of excess availability under its asset-backed revolving credit facilities, based on qualifying inventory and receivables.
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# 59454923. 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 4Q ’13 Press Release
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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.
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 (loss) income plus interest expense and all interest expense related items (e.g. changes associated with ineffective interest rate swap, write-off of debt issue costs, charges associated with mortgage refinancing), 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.
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 over 1,700 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 current network of 50 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.
BlueLinx 4Q ’13 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 ability to return to profitability and our outlook on the housing industry 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 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; the ability to achieve greater operating efficiencies as a result of the restructuring; 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 29, 2012 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 4Q ’13 Press Release
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BlueLinx Holdings Inc.
Statements of Operations
in thousands, except per share data | | | | | | |
| | | Quarters Ended | | | Years Ended | |
| | | January 4, | | | December 29, | | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | | | 2014 | | | 2012 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | | |
| | | | | | | | | | | | | |
| Net sales | | $ | 486,275 | | | $ | 440,298 | | | $ | 2,151,972 | | | $ | 1,907,842 | |
| Cost of sales | | | 431,927 | | | | 388,179 | | | | 1,923,489 | | | | 1,677,772 | |
| Gross profit | | | 54,348 | | | | 52,119 | | | | 228,483 | | | | 230,070 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Selling, general, and administrative | | | 55,483 | | | | 54,638 | | | | 240,667 | | | | 215,996 | |
| Depreciation and amortization | | | 2,571 | | | | 2,012 | | | | 9,117 | | | | 8,565 | |
| Total operating expenses | | | 58,054 | | | | 56,650 | | | | 249,784 | | | | 224,561 | |
| | | | | | | | | | | | | | | | | |
| Operating (loss) income | | | (3,706 | ) | | | (4,531 | ) | | | (21,301 | ) | | | 5,509 | |
| Non-operating expenses: | | | | | | | | | | | | | | | | |
| Interest expense | | | 6,998 | | | | 6,756 | | | | 28,024 | | | | 28,157 | |
| Other expense (income), net | | | 50 | | | | 22 | | | | 306 | | | | (7 | ) |
| | | | | | | | | | | | | | | | | |
| Loss before (benefit from) provision for income taxes | | | (10,754 | ) | | | (11,309 | ) | | | (49,631 | ) | | | (22,641 | ) |
| (Benefit from) provision for income taxes | | | (8,297 | ) | | | 61 | | | | (9,013 | ) | | | 386 | |
| Net loss | | $ | (2,457 | ) | | $ | (11,370 | ) | | $ | (40,618 | ) | | $ | (23,027 | ) |
| | | | | | | | | | | | | | | | | |
| Basic weighted average number of common shares | | | | | | | | | | | | | | | | |
| outstanding | | | 84,818 | | | | 65,494 | | | | 80,163 | | | | 65,452 | |
| Basic net loss per share applicable to common | | | | | | | | | | | | | | | | |
| shares | | $ | (0.03 | ) | | $ | (0.17 | ) | | $ | (0.51 | ) | | $ | (0.35 | ) |
| Diluted weighted average number of common | | | | | | | | | | | | | | | | |
| shares outstanding | | | 84,818 | | | | 65,494 | | | | 80,163 | | | | 65,452 | |
| Diluted net loss per share applicable to common | | | | | | | | | | | | | | | | |
| shares | | $ | (0.03 | ) | | $ | (0.17 | ) | | $ | (0.51 | ) | | $ | (0.35 | ) |
BlueLinx 4Q ’13 Press Release
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| | | | | | | | | |
| BlueLinx Holdings Inc. | | | | | | |
| Balance Sheets | | | | | | |
| in thousands | | | | | | |
| | | | | | | |
| | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | |
| | | (unaudited) | | | | |
| Assets: | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 5,034 | | | $ | 5,188 | |
| Receivables, net | | | 150,297 | | | | 157,465 | |
| Inventories, net | | | 223,580 | | | | 230,059 | |
| Other current assets | | | 22,814 | | | | 19,427 | |
| Total current assets | | | 401,725 | | | | 412,139 | |
| | | | | | | | | |
| Property, plant, and equipment: | | | | | | | | |
| Land and improvements | | | 41,176 | | | | 43,120 | |
| Buildings | | | 90,082 | | | | 94,070 | |
| Machinery and equipment | | | 73,004 | | | | 78,674 | |
| Construction in progress | | | 3,028 | | | | 1,173 | |
| Property, plant, and equipment, at cost | | | 207,290 | | | | 217,037 | |
| Accumulated depreciation | | | (96,171 | ) | | | (101,684 | ) |
| Property, plant, and equipment, net | | | 111,119 | | | | 115,353 | |
| Non-current deferred income tax assets, net | | | 824 | | | | 445 | |
| Other non-current assets | | | 16,578 | | | | 16,799 | |
| Total assets | | $ | 530,246 | | | $ | 544,736 | |
| | | | | | | | | |
| Liabilities: | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 60,363 | | | $ | 77,850 | |
| Bank overdrafts | | | 19,377 | | | | 35,384 | |
| Accrued compensation | | | 4,173 | | | | 6,170 | |
| Current maturities of long-term debt | | | 9,141 | | | | 8,946 | |
| Deferred income taxes, net | | | 823 | | | | 449 | |
| Other current liabilities | | | 12,949 | | | | 10,937 | |
| Total current liabilities | | | 106,826 | | | | 139,736 | |
| Non-current liabilities: | | | | | | | | |
| Long-term debt | | | 388,995 | | | | 368,446 | |
| Other non-current liabilities | | | 40,323 | | | | 57,146 | |
| Total liabilities | | | 536,144 | | | | 565,328 | |
| | | | | | | | | |
Stockholders’ Deficit: | | | | | | | | |
| Common stock | | | 866 | | | | 637 | |
| Additional paid in capital | | | 251,150 | | | | 209,815 | |
| Accumulated other comprehensive loss | | | (16,293 | ) | | | (30,042 | ) |
| Accumulated deficit | | | (241,621 | ) | | | (201,002 | ) |
Total stockholders’ deficit | | | (5,898 | ) | | | (20,592 | ) |
Total liabilities and stockholders’ deficit | | $ | 530,246 | | | $ | 544,736 | |
BlueLinx 4Q ’13 Press Release
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| | | | | | | | | |
| BlueLinx Holdings Inc. | | | | | | |
| Statements of Cash Flows | | | | | | |
| in thousands | | | | | | |
| | | | | | | |
| | | Periods Ended | |
| | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | |
| | | (unaudited) | | | | |
| | | | | | | |
| Cash flows from operating activities: | | | | | | |
| Net loss | | $ | (40,618 | ) | | $ | (23,027 | ) |
| Adjustments to reconcile net loss | | | | | | | | |
| to cash used in operations: | | | | | | | | |
| Depreciation and amortization | | | 9,117 | | | | 8,565 | |
| Amortization of debt issuance costs | | | 3,184 | | | | 3,746 | |
| Write-off of debt issuance costs | | | 119 | | | | - | |
| Gain from sale of properties | | | (5,220 | ) | | | (9,885 | ) |
| Gain from property insurance settlement | | | - | | | | (476 | ) |
| Vacant property charges, net | | | 1,321 | | | | (30 | ) |
| Severance charges | | | 5,607 | | | | - | |
| Payments on modification on lease agreement | | | (300 | ) | | | (5,875 | ) |
| Deferred income tax benefit | | | (5 | ) | | | (20 | ) |
| Share-based compensation expense, excluding restructuring related | | | 3,222 | | | | 2,797 | |
| Share-based compensation expense, restructuring related | | | 2,895 | | | | - | |
| (Increase) decrease in restricted cash related to insurance and other | | | (1,810 | ) | | | 695 | |
| Other | | | (13,455 | ) | | | 3,285 | |
| | | | (35,943 | ) | | | (20,225 | ) |
| Changes in primary working capital components: | | | | | | | | |
| Receivables | | | 7,168 | | | | (18,593 | ) |
| Inventories | | | 6,479 | | | | (44,482 | ) |
| Accounts payable | | | (17,585 | ) | | | 9,050 | |
| Net cash used in operating activities | | | (39,881 | ) | | | (74,250 | ) |
| | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | |
| Property, plant, and equipment investments | | | (4,912 | ) | | | (2,826 | ) |
| Proceeds from disposition of assets | | | 10,365 | | | | 19,195 | |
| Net cash provided by investing activities | | | 5,453 | | | | 16,369 | |
| | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | |
| Excess tax benefits from share-based compensation arrangements | | | 16 | | | | - | |
| Repurchase of shares to satisfy employee tax withholdings | | | (3,192 | ) | | | (526 | ) |
| Repayments on the revolving credit facilities | | | (560,186 | ) | | | (473,349 | ) |
| Borrowings from the revolving credit facilities | | | 599,968 | | | | 550,270 | |
| Payments of principal on mortgage | | | (19,038 | ) | | | (37,272 | ) |
| Payments on capital lease obligations | | | (3,142 | ) | | | (2,259 | ) |
| (Decrease) increase in bank overdrafts | | | (16,007 | ) | | | 13,020 | |
| Decrease in restricted cash related to the mortgage | | | 40 | | | | 9,970 | |
| Debt financing costs | | | (2,900 | ) | | | (1,683 | ) |
| Proceeds from stock offering less expenses paid | | | 38,715 | | | | - | |
| Net cash provided by financing activities | | | 34,274 | | | | 58,171 | |
| | | | | | | | | |
| (Decrease) increase in cash | | | (154 | ) | | | 290 | |
| Balance, beginning of period | | | 5,188 | | | | 4,898 | |
| Balance, end of period | | $ | 5,034 | | | $ | 5,188 | |
| | | | | | | | | |
| Non Cash Transactions: | | | | | | | | |
| Capital leases | | $ | 5,069 | | | $ | 5,238 | |
BlueLinx 4Q ’13 Press Release
Page 10 of 12
| | | | | | | | | | | | | | | | | | | | | |
| BlueLinx Holdings Inc. | | | | | | | | | | | | | | | |
| Unaudited Reconciliation of GAAP Net loss to Non-GAAP Adjusted EBITDA |
| in thousands | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Quarters Ended | | | Year Ended | |
| | | March 30, | | | June 29, | | | September 28, | | | January 4, | | | January 4, | |
| | | 2013 | | | 2013 | | | 2013 | | | 2014 | | | 2014 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | |
| | | | | | | | | | | | | | | | |
| GAAP net loss | | $ | (12,649 | ) | | $ | (22,306 | ) | | $ | (3,206 | ) | | $ | (2,457 | ) | | $ | (40,618 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 2,173 | | | | 2,229 | | | | 2,144 | | | | 2,571 | | | | 9,117 | |
| Interest expense | | | 7,192 | | | | 6,916 | | | | 6,918 | | | | 6,998 | | | | 28,024 | |
| Provision for (benefit from) income taxes | | | 213 | | | | (292 | ) | | | (636 | ) | | | (8,297 | ) | | | (9,013 | ) |
| Loss from closed distribution centers | | | 212 | | | | 1,578 | | | | 1,898 | | | | - | | | | 3,689 | |
| Gain from sale of certain properties | | | (230 | ) | | | - | | | | (3,679 | ) | | | (1,311 | ) | | | (5,220 | ) |
| Gain from property insurance settlement | | | - | | | | - | | | | - | | | | - | | | | - | |
| Stock compensation (excluding restructuring) | | | 824 | | | | 1,055 | | | | 987 | | | | 356 | | | | 3,222 | |
| Restructuring and severance related costs | | | 889 | | | | 7,309 | | | | 2,758 | | | | 1,167 | | | | 12,123 | |
| Adjusted EBITDA Same Center | | $ | (1,376 | ) | | $ | (3,511 | ) | | $ | 7,184 | | | $ | (973 | ) | | $ | 1,324 | |
| Add back EBITDA loss week of December 29, 2013 | | | - | | | | - | | | | - | | | | 1,081 | | | | 1,081 | |
| Comparable 13/52-week vs. 13/52-week | | $ | (1,376 | ) | | $ | (3,511 | ) | | $ | 7,184 | | | $ | 108 | | | $ | 2,405 | |
| Percentage Same Center | | | (0.3 | %) | | | (0.6 | %) | | | 1.3 | % | | | (0.2 | %) | | | 0.1 | % |
| Percentage Comparable 13/52-week vs. 13/52-week | | | (0.3 | %) | | | (0.6 | %) | | | 1.3 | % | | | 0.0 | % | | | 0.1 | % |
| | | Quarters Ended | | | Year Ended | |
| | | March 31, | | | June 30, | | | September 29, | | | December 29, | | | December 29, | |
| | | 2012 | | | 2012 | | | 2012 | | | 2012 | | | 2012 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | | | | (unaudited) | |
| | | | | | | | | | | | | | | | | | | | | |
| GAAP net loss | | $ | (11,019 | ) | | $ | (3,706 | ) | | $ | 3,068 | | | $ | (11,370 | ) | | $ | (23,027 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 2,260 | | | | 2,187 | | | | 2,106 | | | | 2,012 | | | | 8,565 | |
| Interest expense | | | 6,782 | | | | 7,325 | | | | 7,294 | | | | 6,756 | | | | 28,157 | |
| Provision for (benefit from) income taxes | | | 205 | | | | 197 | | | | (77 | ) | | | 61 | | | | 386 | |
| (Income) loss from closed distribution centers | | | (242 | ) | | | (574 | ) | | | (379 | ) | | | 706 | | | | (489 | ) |
| Gain from sale of certain properties | | | (578 | ) | | | 48 | | | | (9,151 | ) | | | (204 | ) | | | (9,885 | ) |
| Gain from property insurance settlement | | | - | | | | (476 | ) | | | - | | | | - | | | | (476 | ) |
| Stock compensation (excluding restructuring) | | | 743 | | | | 677 | | | | 677 | | | | 700 | | | | 2,797 | |
| Restructuring and severance related costs | | | - | | | | - | | | | - | | | | - | | | | - | |
| Adjusted EBITDA Same Center | | $ | (1,849 | ) | | $ | 5,678 | | | $ | 3,538 | | | $ | (1,339 | ) | | $ | 6,028 | |
| Add back EBITDA loss week of December 29, 2013 | | | - | | | | - | | | | - | | | | - | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | (1,849 | ) | | $ | 5,678 | | | $ | 3,538 | | | $ | (1,339 | ) | | $ | 6,028 | |
| Percentage Same Center | | | (0.4 | %) | | | 1.2 | % | | | 0.8 | % | | | (0.3 | %) | | | 0.3 | % |
| Percentage Comparable 13/52-week vs. 13/52-week | | | (0.4 | %) | | | 1.2 | % | | | 0.8 | % | | | (0.3 | %) | | | 0.3 | % |
BlueLinx 4Q ’13 Press Release
Page 11 of 12
| | | | | | | | | | | | | | | | | |
| BlueLinx Holdings Inc. | |
| Unaudited Reconciliation of GAAP Net loss to Non-GAAP Adjusted EBITDA |
| in thousands | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Quarters Ended | | | Years Ended | |
| | | January 4, | | | December 29, | | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | | | 2014 | | | 2012 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | |
| GAAP net loss | | $ | (2,457 | ) | | $ | (11,370 | ) | | $ | (40,618 | ) | | $ | (23,027 | ) |
| | | | | | | | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | 2,571 | | | | 2,012 | | | | 9,117 | | | | 8,565 | |
| Interest expense | | | 6,998 | | | | 6,756 | | | | 28,024 | | | | 28,157 | |
| (Benefit from) provision for income taxes | | | (8,297 | ) | | | 61 | | | | (9,013 | ) | | | 386 | |
| Loss (income) from closed distribution centers | | | - | | | | 706 | | | | 3,689 | | | | (489 | ) |
| Gain from sale of certain properties | | | (1,311 | ) | | | (204 | ) | | | (5,220 | ) | | | (9,885 | ) |
| Gain from property insurance settlement | | | - | | | | - | | | | - | | | | (476 | ) |
| Stock compensation (excluding restructuring) | | | 356 | | | | 700 | | | | 3,222 | | | | 2,797 | |
| Restructuring and severance related costs | | | 1,167 | | | | - | | | | 12,123 | | | | - | |
| Adjusted EBITDA Same Center | | $ | (973 | ) | | $ | (1,339 | ) | | $ | 1,324 | | | $ | 6,028 | |
| Add back EBITDA loss week of December 29, 2013 | | | 1,081 | | | | - | | | | 1,081 | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | 108 | | | $ | (1,339 | ) | | $ | 2,405 | | | $ | 6,028 | |
| BlueLinx Holdings Inc. | | | | | | | | | | | | |
| Unaudited Adjusted Pre-Tax Loss | | | | | | | | | | | | |
| in thousands, except for per share amounts | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Quarters Ended | | | Years Ended | |
| | | January 4, | | | December 29, | | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | | | 2014 | | | 2012 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | |
| | | | | | | | | | | | | |
| Pretax loss | | $ | (10,754 | ) | | $ | (11,309 | ) | | $ | (49,631 | ) | | $ | (22,641 | ) |
| Loss (income) from closed distribution centers | | | - | | | | 706 | | | | 3,689 | | | | (489 | ) |
| Gain from sale of certain properties | | | (1,311 | ) | | | (204 | ) | | | (5,220 | ) | | | (9,885 | ) |
| Gain from property insurance settlement | | | - | | | | - | | | | - | | | | (476 | ) |
| Restructuring and severance related costs | | | 1,167 | | | | - | | | | 12,123 | | | | - | |
| Adjusted pretax loss | | | (10,898 | ) | | | (10,807 | ) | | | (39,039 | ) | | | (33,491 | ) |
| Adjusted benefit from income taxes | | | (4,500 | ) | | | (4,112 | ) | | | (15,354 | ) | | | (12,540 | ) |
| Adjusted net loss | | $ | (6,398 | ) | | $ | (6,695 | ) | | $ | (23,685 | ) | | $ | (20,951 | ) |
| Basic and diluted weighted average shares | | | 84,818 | | | | 65,494 | | | | 80,163 | | | | 65,452 | |
| Adjusted basic and diluted net loss per share applicable to common shares | | $ | (0.08 | ) | | $ | (0.10 | ) | | $ | (0.30 | ) | | $ | (0.32 | ) |
| BlueLinx Holdings Inc. | | | | | | | | | | | | |
| Unaudited Reconciliation of GAAP Net Loss to Adjusted Net Loss | | | | | | | | | | | | |
| in thousands | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Quarters Ended | | | Years Ended | |
| | | January 4, | | | December 29, | | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | | | 2014 | | | 2012 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | |
| | | | | | | | | | | | | |
| GAAP net loss | | $ | (2,457 | ) | | $ | (11,370 | ) | | $ | (40,618 | ) | | $ | (23,027 | ) |
| Loss (income) from closed distribution centers | | | - | | | | 706 | | | | 3,689 | | | | (489 | ) |
| Gain from sale of certain properties | | | (1,311 | ) | | | (204 | ) | | | (5,220 | ) | | | (9,885 | ) |
| Gain from property insurance settlement | | | - | | | | - | | | | - | | | | (476 | ) |
| Restructuring and severance related costs | | | 1,167 | | | | - | | | | 12,123 | | | | - | |
| Benefit from income taxes related to non-operating pension adjustments | | | (8,004 | ) | | | - | | | | (8,726 | ) | | | - | |
| Tax effect of selected charges | | | 56 | | | | (193 | ) | | | (4,088 | ) | | | 4,188 | |
| Valuation allowance | | | 4,151 | | | | 4,366 | | | | 19,155 | | | | 8,738 | |
| Adjusted net loss | | $ | (6,398 | ) | | $ | (6,695 | ) | | $ | (23,685 | ) | | $ | (20,951 | ) |
BlueLinx 4Q ’13 Press Release
Page 12 of 12
| BlueLinx Holdings Inc. |
| Unaudited Comparable 13/52 Week vs. 13/52 Week Periods Ended |
| in thousands | |
| | | | | | | | | | | | | |
| | | For the 13-Week and 13-Week Periods Ended | | | For the 52-Week and 52-Week Periods Ended | |
| |
| | | Quarters Ended | | | Years Ended | |
| | | January 4, | | | December 29, | | | January 4, | | | December 29, | |
| | | 2014 | | | 2012 | | | 2014 | | | 2012 | |
| | | (unaudited) | | | (unaudited) | | | (unaudited) | | | (unaudited) | |
| Net Sales | | $ | 486,275 | | | $ | 440,298 | | | $ | 2,151,972 | | | $ | 1,907,842 | |
| Less: Closed Center | | | - | | | | 23,624 | | | | 85,578 | | | | 104,716 | |
| Same Center | | | 486,275 | | | | 416,674 | | | | 2,066,394 | | | | 1,803,126 | |
Less week of December 29, 2013 (1) | | | 19,219 | | | | - | | | | 19,219 | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | 467,056 | | | $ | 416,674 | | | $ | 2,047,175 | | | $ | 1,803,126 | |
| | | | | | | | | | | | | | | | | |
| Actual year-over-year percentage increase | | | 10.4 | % | | | | | | | 12.8 | % | | | | |
| Same Center year-over-year percentage increase | | | 16.7 | % | | | | | | | 14.6 | % | | | | |
| Comparable year-over-year percentage increase | | | 12.1 | % | | | | | | | 13.5 | % | | | | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | $ | 54,348 | | | $ | 52,119 | | | $ | 228,483 | | | $ | 230,070 | |
| Less: Closed Center | | | - | | | | 2,782 | | | | 6,294 | | | | 13,144 | |
| Same Center | | | 54,348 | | | | 49,337 | | | | 222,189 | | | | 216,926 | |
Less week of December 29, 2013 (1) | | | 2,087 | | | | - | | | | 2,087 | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | 52,261 | | | $ | 49,337 | | | $ | 220,102 | | | $ | 216,926 | |
| | | | | | | | | | | | | | | | | |
| Total operating expenses | | $ | 58,054 | | | $ | 56,650 | | | $ | 249,784 | | | $ | 224,561 | |
| Less: Closed Center | | | - | | | | 3,488 | | | | 9,983 | | | | 12,655 | |
| Same Center | | | 58,054 | | | | 53,162 | | | | 239,801 | | | | 211,906 | |
Less week of December 29, 2013 (2) | | | 3,345 | | | | - | | | | 3,345 | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | 54,709 | | | $ | 53,162 | | | $ | 236,456 | | | $ | 211,906 | |
| Percentage comparable sales | | | 11.7 | % | | | 12.8 | % | | | 11.6 | % | | | 11.8 | % |
| | | | | | | | | | | | | | | | | |
| Operating (loss) income | | $ | (3,706 | ) | | $ | (4,531 | ) | | $ | (21,301 | ) | | $ | 5,509 | |
| Add back loss from Closed Center | | | - | | | | 706 | | | | 3,689 | | | | (489 | ) |
| Same Center | | | (3,706 | ) | | | (3,825 | ) | | | (17,612 | ) | | | 5,020 | |
| Add back loss week of December 29, 2013 | | | 1,258 | | | | - | | | | 1,258 | | | | - | |
| Comparable 13/52-week vs. 13/52-week | | $ | (2,448 | ) | | $ | (3,825 | ) | | $ | (16,354 | ) | | $ | 5,020 | |
| | | | | | | | | | | | | | | | | |
| (1) Based on actual shipments for week ending January 4, 2014. | |
| (2) Estimate based on actual December 2013 run-rate. | |
