Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2016 | May. 12, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BlueLinx Holdings Inc. | |
Entity Central Index Key | 1,301,787 | |
Trading Symbol | bxc | |
Current Fiscal Year Date | --01-02 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 90,037,255 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 474,326 | $ 454,949 |
Cost of sales | 416,730 | 404,753 |
Gross profit | 57,596 | 50,196 |
Operating expenses: | ||
Selling, general, and administrative | 54,799 | 50,036 |
Depreciation and amortization | 2,476 | 2,278 |
Total operating expenses | 57,275 | 52,314 |
Operating income (loss) | 321 | (2,118) |
Non-operating expenses (income): | ||
Interest expense | 7,207 | 6,553 |
Other expense (income), net | (372) | 358 |
Loss before benefit from income taxes | (6,514) | (9,029) |
Benefit from income taxes | (369) | (84) |
Net loss | $ (6,145) | $ (8,945) |
Basic and diluted weighted average number of common shares outstanding (in shares) | 88,764 | 87,165 |
Basic and diluted net loss per share applicable to common stock (in dollars per shares) | $ (0.07) | $ (0.10) |
Comprehensive loss: | ||
Net loss | $ (6,145) | $ (8,945) |
Other comprehensive income (loss): | ||
Foreign currency translation, net of tax | 272 | (282) |
Unrealized gain from pension plan, net of tax | 223 | 211 |
Total other comprehensive income (loss) | 495 | (71) |
Comprehensive loss | $ (5,650) | $ (9,016) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash | $ 7,126 | $ 4,808 |
Receivables, less allowances of $3.5 million and $3.2 million, respectively | 181,507 | 138,545 |
Inventories, net | 246,469 | 226,660 |
Other current assets | 25,184 | 32,011 |
Total current assets | 460,286 | 402,024 |
Property and equipment: | ||
Land and land improvements | 39,212 | 40,108 |
Buildings | 89,010 | 89,006 |
Machinery and equipment | 78,447 | 79,173 |
Construction in progress | 385 | 255 |
Property and equipment, at cost | 207,054 | 208,542 |
Accumulated depreciation | (108,766) | (106,966) |
Property and equipment, net | 98,288 | 101,576 |
Other non-current assets | 9,631 | 9,542 |
Total assets | 568,205 | 513,142 |
Current liabilities: | ||
Accounts payable | 104,687 | 88,087 |
Bank overdrafts | 18,479 | 17,287 |
Accrued compensation | 7,354 | 4,165 |
Current maturities of long-term debt | 4,981 | 6,611 |
Other current liabilities | 12,353 | 14,023 |
Total current liabilities | 147,854 | 130,173 |
Non-current liabilities: | ||
Long-term debt | 423,625 | 377,773 |
Pension benefit obligation | 34,807 | 36,791 |
Other non-current liabilities | 13,122 | 14,301 |
Total liabilities | 619,408 | 559,038 |
Stockholders’ deficit: | ||
Common Stock, $0.01 par value, Authorized - 200,000,000 shares, Issued - 90,054,008 and 89,438,466, respectively. | 901 | 894 |
Additional paid-in capital | 255,436 | 255,100 |
Accumulated other comprehensive loss | (34,279) | (34,774) |
Accumulated stockholders’ deficit | (273,261) | (267,116) |
Total stockholders’ deficit | (51,203) | (45,896) |
Total liabilities and stockholders’ deficit | $ 568,205 | $ 513,142 |
CONDENSED CONSOLIDATED BALANCE4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Apr. 02, 2016 | Jan. 02, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3.5 | $ 3.2 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 90,054,008 | 89,438,466 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net cash used in operating activities | $ (51,640) | $ (37,545) |
Net cash provided by (used in) investing activities | 1,230 | (337) |
Cash flows from financing activities: | ||
Repayments on revolving credit facilities | (263,624) | (76,723) |
Borrowings from revolving credit facilities | 315,630 | 121,806 |
Principal payments on mortgage | (8,812) | (7,930) |
Decrease in restricted cash related to the mortgage | 9,118 | 5,056 |
Other, net | 416 | (2,816) |
Net cash provided by financing activities | 52,728 | 39,393 |
Increase in cash | 2,318 | 1,511 |
Cash balance, beginning of period | 4,808 | 4,522 |
Cash balance, end of period | $ 7,126 | $ 6,033 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 02, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). These financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K (the “Annual Report on Form 10-K”) for the year ended January 2, 2016 , as filed with the Securities and Exchange Commission. Reclassifications Certain amounts in the prior years’ consolidated financial statements have been revised to conform to the current year presentation, as the prior year Condensed Consolidated Statement of Cash Flow has been conformed to the current year condensed presentation. New Accounting Standards Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption of the standard is permitted, but not before December 15, 2016. We are currently evaluating how the adoption of the revenue recognition standard will impact our Consolidated Financial Statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. Adoption of this standard may have a significant impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement, or presentation of lease expenses within the Consolidated Statements of Operations and Cash Flows. Information about our current undiscounted future lease payments and the timing of those payments is in Note 13, “Lease Commitments,” in our Annual Report on Form 10-K for the year ended January 2, 2016 . Share-Based Compensation. In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718).” This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation, and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. We are currently assessing how the adoption of this standard will impact our Consolidated Financial Statements. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Apr. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits The following table shows the components of net periodic pension cost (in thousands): Three Months Ended Three Months Ended Service cost $ 252 $ 300 Interest cost on projected benefit obligation 1,271 1,250 Expected return on plan assets (1,551 ) (1,523 ) Amortization of unrecognized loss 223 211 Net periodic pension cost $ 195 $ 238 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Carrying amounts for our financial instruments are not significantly different from their fair values, with the exception of our mortgage. To determine the fair value of our mortgage, we use a discounted cash flow model. We believe the mortgage fair value valuation to be Level 2 in the fair value hierarchy, as the valuation model has inputs that are observable for substantially the full term of the liability. As of April 2, 2016 , the carrying amount and fair value of our mortgage was $159.4 million and $165.7 million , respectively. The difference between the book value and the fair value is derived from the difference between the period-end market interest rate and the stated rate of our fixed-rate mortgage. The fair value of our debt is not indicative of the amounts at which we could settle our debt. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 02, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding unvested restricted shares. We calculate diluted earnings per share using the treasury stock method, by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock awards, restricted stock units, performance shares, and stock options. Basic and diluted earnings per share are equivalent for all fiscal periods presented, because all periods reflected net losses, and therefore all outstanding share-based awards would be antidilutive. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Apr. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We have two stock-based compensation plans covering officers, directors, and certain employees: the 2004 Equity Incentive Plan (the “2004 Plan”) and the 2006 Long-Term Equity Incentive Plan (the “2006 Plan”). The plans are designed to motivate and retain individuals who are responsible for the attainment of our primary long-term performance goals. The plans provide a means whereby the participants develop a further sense of proprietorship and personal involvement in our development and financial success, thereby advancing the interests of the Company and its stockholders. Although we do not have a formal policy on the matter, we issue new shares of our common stock to participants upon the exercise of options, upon the granting of restricted stock or vesting of restricted stock units, or upon the vesting of equity settled performance shares, out of the total amount of common shares applicable for issuance or vesting under either the 2006 Plan or the 2004 Plan. Shares are available for new issuance only under the 2006 Plan; the 2004 Plan has zero shares remaining for issuance, only for vesting of currently outstanding awards and for exercise of currently outstanding options. Restricted shares of 513,525 and restricted stock units of 525,252 vested in the first three months of fiscal 2016 due to the completion of the vesting term. Additionally, performance shares of 316,664 vested in the first three months of fiscal 2016 due to the completion of the vesting term and the satisfaction of the performance criteria. We granted 1,690,164 restricted stock units in the first three months of fiscal 2016; 1,100,000 of which vest at the end of a two -year period, while the remainder vest at the end of a one -year period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 02, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Comprehensive income (loss) is a measure of income (loss) which includes both net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) results from items deferred from recognition into our Consolidated Statements of Operations and Comprehensive Loss. Accumulated other comprehensive loss is separately presented on our Consolidated Balance Sheets as part of common stockholders’ deficit. The changes in balances for each component of Accumulated Other Comprehensive Loss for the quarter ended April 2, 2016 , were as follows (in thousands): Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss January 2, 2016, beginning balance $ 396 $ (35,382 ) $ 212 $ (34,774 ) Other comprehensive income, net of tax (1) 272 223 — 495 April 2, 2016, ending balance, net of tax $ 668 $ (35,159 ) $ 212 $ (34,279 ) (1) For the quarter ended April 2, 2016 , there was $0.2 million of actuarial loss recognized in the statements of operations as a component of net periodic pension cost. There was no unrecognized actuarial loss based on actuarial assumptions. There was no intraperiod income tax allocation and the deferred tax benefit was fully offset by a valuation allowance. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 21, 2016, we announced operational efficiency initiatives which will result in the closure of four distribution centers throughout 2016. The decision to close the distribution centers was made on April 18, 2016. We currently expect that approximately 60 full-time positions will be eliminated as a result of these closures, and we began notifying impacted employees on April 20, 2016. We currently expect to incur total pre-tax charges of approximately $1.0 million in employee termination and benefit costs, and we also expect to record certain inventory adjustments for inventory costs not fully recoverable. Additionally, we also began a stock keeping unit (“SKU”) rationalization initiative in local markets during the fiscal second quarter, and have identified certain less productive SKUs which we intend to discontinue offering. We intend to sell through our inventory in these SKUs commencing in the fiscal second quarter. At the current time, we expect to record certain adjustments to inventory in the second quarter for inventory costs not fully recoverable. We expect to accrue $0.5 million in sales incentives related to this program in the fiscal second quarter, which are expected to be paid in the third quarter of fiscal 2016. |
Summary of Significant Accoun13
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2016 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain amounts in the prior years’ consolidated financial statements have been revised to conform to the current year presentation, as the prior year Condensed Consolidated Statement of Cash Flow has been conformed to the current year condensed presentation. |
New Accounting Standards | New Accounting Standards Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Under this ASU and subsequently issued amendments, revenue is recognized at the time a good or service is transferred to a customer for the amount of consideration received. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption. The standard is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption of the standard is permitted, but not before December 15, 2016. We are currently evaluating how the adoption of the revenue recognition standard will impact our Consolidated Financial Statements. Leases. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This standard will require all leases with durations greater than twelve months to be recognized on the balance sheet and is effective for interim and annual reporting periods beginning after December 15, 2018, although early adoption is permitted. Adoption of this standard may have a significant impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement, or presentation of lease expenses within the Consolidated Statements of Operations and Cash Flows. Information about our current undiscounted future lease payments and the timing of those payments is in Note 13, “Lease Commitments,” in our Annual Report on Form 10-K for the year ended January 2, 2016 . Share-Based Compensation. In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718).” This standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on share-based compensation, and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. We are currently assessing how the adoption of this standard will impact our Consolidated Financial Statements. |
Earnings per Share | Earnings per Share We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding, excluding unvested restricted shares. We calculate diluted earnings per share using the treasury stock method, by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock awards, restricted stock units, performance shares, and stock options. Basic and diluted earnings per share are equivalent for all fiscal periods presented, because all periods reflected net losses, and therefore all outstanding share-based awards would be antidilutive. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net periodic pension cost for pension plans | The following table shows the components of net periodic pension cost (in thousands): Three Months Ended Three Months Ended Service cost $ 252 $ 300 Interest cost on projected benefit obligation 1,271 1,250 Expected return on plan assets (1,551 ) (1,523 ) Amortization of unrecognized loss 223 211 Net periodic pension cost $ 195 $ 238 |
Accumulated Other Comprehensi15
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Equity [Abstract] | |
Schedule of changes in accumulated balances for each component of other comprehensive income (loss) | The changes in balances for each component of Accumulated Other Comprehensive Loss for the quarter ended April 2, 2016 , were as follows (in thousands): Foreign currency, net of tax Defined benefit pension plan, net of tax Other, net of tax Total Accumulated Other Comprehensive Loss January 2, 2016, beginning balance $ 396 $ (35,382 ) $ 212 $ (34,774 ) Other comprehensive income, net of tax (1) 272 223 — 495 April 2, 2016, ending balance, net of tax $ 668 $ (35,159 ) $ 212 $ (34,279 ) (1) For the quarter ended April 2, 2016 , there was $0.2 million of actuarial loss recognized in the statements of operations as a component of net periodic pension cost. There was no unrecognized actuarial loss based on actuarial assumptions. There was no intraperiod income tax allocation and the deferred tax benefit was fully offset by a valuation allowance. |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 252 | $ 300 |
Interest cost on projected benefit obligation | 1,271 | 1,250 |
Expected return on plan assets | (1,551) | (1,523) |
Amortization of unrecognized loss | 223 | 211 |
Net periodic pension cost | $ 195 | $ 238 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | Apr. 02, 2016USD ($) |
Carrying Amount | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Mortgage, fair value disclosure | $ 159.4 |
Fair Value, Inputs, Level 2 | Fair Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Mortgage, fair value disclosure | $ 165.7 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) | 3 Months Ended |
Apr. 02, 2016shares | |
Restricted Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards vested in the period (in shares) | 513,525 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards vested in the period (in shares) | 525,252 |
Awards granted in the period (in shares) | 1,690,164 |
Restricted Stock Units (RSUs) | Two year period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted in the period (in shares) | 1,100,000 |
Award vesting period | 2 years |
Restricted Stock Units (RSUs) | One year period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards vested in the period (in shares) | 316,664 |
2004 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance | 0 |
Accumulated Other Comprehensi19
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (45,896) | |
Other comprehensive income, net of tax | 495 | $ (71) |
Ending balance, net of tax | (51,203) | |
Foreign currency, net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 396 | |
Other comprehensive income, net of tax | 272 | |
Ending balance, net of tax | 668 | |
Defined benefit pension plan, net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (35,382) | |
Other comprehensive income, net of tax | 223 | |
Ending balance, net of tax | (35,159) | |
Other, net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 212 | |
Other comprehensive income, net of tax | 0 | |
Ending balance, net of tax | 212 | |
Total Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (34,774) | |
Other comprehensive income, net of tax | 495 | |
Ending balance, net of tax | (34,279) | |
Defined benefit pension plans adjustment, net gain (loss), net of tax | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Reclassification of actuarial loss | $ 200 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 8 Months Ended | |
Dec. 31, 2016distribution_centerposition | Apr. 21, 2016USD ($) | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Expected sales of stock keeping unit (SKU) rationalization initiative | $ 0.5 | |
Employee Severance | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Expected cost of restructuring | $ 1 | |
Forecast | Facility Closing | ||
Subsequent Event [Line Items] | ||
Number of distribution centers to be closed or sold | distribution_center | 4 | |
Forecast | Employee Severance | ||
Subsequent Event [Line Items] | ||
Number of positions eliminated | position | 60 |