News Details

ATLANTA, Aug. 2, 2012 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the second quarter ended 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.  

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):

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.

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.

CONTACT: Doug Goforth, CFO & Treasurer
         BlueLinx Holdings Inc.
         (770) 953-7505

         Investor Relations:
         Maryon Davis, Director Finance & IR
         (770) 221-2666