Bluelinx Holdings Inc (ticker: BXC, exchange: New York Stock Exchange (.N))
News Release -
8-Aug-2005
BlueLinx Announces Second Quarter Results ATLANTA--(BUSINESS WIRE)--Aug. 8, 2005--BlueLinx Holdings Inc.
(NYSE: BXC), a leading distributor of building products in North
America, today reported financial results for the second fiscal
quarter ended July 2, 2005.
Revenues for the second quarter were $1.49 billion, down 4.7% from
the $1.56 billion reported for the second quarter ended July 3, 2004.
This decline reflects a 4.4% increase in unit volume offset by a 9.1%
decrease in prices. Net income for the second quarter was $7.8
million, or $0.25 per diluted share, compared to $29.8 million, or
$0.99 per diluted share, in the prior-year period. For purposes of
comparison, the 2004 second quarter statement of operations is
presented on a pro forma basis, as if BlueLinx had been a stand-alone,
publicly-traded entity since December 29, 2002.
Gross profit for the second quarter was $115.7 million compared to
$164.1 million in the prior-year period. Gross margin fell to 7.8%
from 10.5% in the second quarter of 2004, primarily reflecting a
decline in structural product margins. Additionally, margins in the
second quarter of 2004 were favorably impacted by strong steel
markets. Selling, general, and administrative expenses in the second
quarter declined by $12.4 million, primarily due to lower incentive
compensation expense and reduced sales commissions. Operating income
for the quarter was $23.2 million compared to $59.9 million for the
second quarter last year, reflecting lower gross profit, partially
offset by lower variable expenses.
For the first six months of fiscal 2005, BlueLinx reported sales
of $2.84 billion, flat with last year. Gross profit for the
year-to-date period was $235.0 million compared to $320.1 million in
2004, translating to gross margins of 8.3% and 11.3%, respectively,
and primarily reflecting a decline in structural product margins.
Selling, general, and administrative expenses in the second quarter
declined by $18.4 million, primarily due to lower incentive
compensation expense and reduced sales commissions. Net income was
$16.2 million, or $0.53 per diluted share, versus $57.1 million, or
$1.89 per diluted share, in the prior-year period. For purposes of
comparison, the 2004 year-to-date statement of operations is presented
on a pro forma basis, as if BlueLinx had been a stand-alone,
publicly-traded entity since December 29, 2002.
"Today, we are operating in a weakening price environment, and we
continue to aggressively implement our business improvement
strategies" said Chuck McElrea, chief executive officer. "We are
taking the steps we believe necessary to diminish the impact of price
depreciation on our financial results, advancing our strategic growth
initiatives and solidifying the foundation for long term growth. We
continue to gain market share in the building products distribution
marketplace, leveraging our diverse geographic footprint, broad
product offering and extensive customer base. We have added new
customer programs for specialty products, increased sales revenue from
targeted accounts, signed on new industrial accounts and continued to
roll out product line expansions with new and existing vendors. These
achievements demonstrate the effectiveness of our value added supply
chain solutions approach, particularly as a means of increasing the
proportion of less price sensitive specialty products."
Mr. McElrea concluded, "The BlueLinx management team has
encountered challenging market conditions before. Based on our
experience, we have put mechanisms in place to navigate through
pricing cycles and designed a strategy to generate profitable growth
and market share gains over time. We remain committed to our long term
growth strategy and focused on increasing return on net assets by
continuously creating operating efficiencies and improving working
capital utilization."
As Reported Results
As reported sales for the second quarter ended July 2, 2005 were
$1.49 billion compared to $1.56 billion for the same period last year.
Gross profit declined to $115.7 million from $162.6 million in the
prior-year period primarily reflecting a decline in structural product
margins. Net income for the second quarter of 2005 was $7.8 million
compared to net income of $27.7 million for the second quarter of
fiscal 2004. The company's net income of $27.7 million for the second
quarter of 2004 was achieved partially as a division of
Georgia-Pacific Corporation and did not include interest expense and
certain corporate overhead expenses that are included in the results
for the quarter ended July 2, 2005.
On a year-to-date basis, BlueLinx reported sales of $2.84 billion,
flat with last year. Gross profit was $235.0 million compared with
$316.7 million in 2004; net income was $16.2 million versus $61.6
million in the prior-year period.
Basis of Presentation
This release provides unaudited financial statements for the
second quarter and year-to-date periods of 2005 and 2004. For purposes
of comparison, the statement of operations for the second quarter and
year-to-date ended July 3, 2004 is provided on both an as reported and
a pro forma basis. Last year's pro forma results reflect the
acquisition by BlueLinx of the real estate and operating assets of the
building products distribution division of Georgia-Pacific and the
Company's subsequent IPO on December 14, 2004. Results have been
adjusted to reflect the acquisition transaction, mortgage refinancing
transaction, and offering transaction, and are presented as if
BlueLinx Holdings had been a standalone entity since December 29,
2002. On a pro forma basis diluted earnings per share is calculated
using 30.2 million shares. Detailed reconciliations of all pro forma
adjustments are included in a presentation, to be read in conjunction
with this release, which can be found on the BlueLinx web site at
www.BlueLinxCo.com.
Conference Call
BlueLinx will host a conference call today at 10:00 a.m. Eastern
Daylight Time accompanied by a supporting slide presentation.
Investors may listen to the conference call and download the
presentation by going to the Investor Relations page of the BlueLinx
web site, at www.BlueLinxCo.com. Investors will also be able to access
an encore recording of the conference call for one week by calling
706-645-9291, Conference ID# 7841982. The recording will be available
two hours after the conference call has concluded. Investors may,
alternatively, access a recording of this call on the BlueLinx web
site where a replay of the webcast will be available for 90 days.
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
more than 3,400 people in North America, BlueLinx offers 10,000
products from over 750 suppliers to service more than 11,700 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 60 warehouses. 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.
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 its 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 which we distribute; the
activities of competitors; changes in significant operating expenses;
changes in the availability of capital; the ability to identify
acquisition opportunities and effectively and cost-efficiently
integrate acquisitions; general economic and business conditions in
the United States; 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 1, 2005, 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 or otherwise, except as
required by law.
BlueLinx Holdings Inc.
Proforma Statement of Operations
in thousands, except per share data
Quarters Ended Six Months Ended
-----------------------------------------------
BlueLinx BlueLinx BlueLinx BlueLinx
As Reported Proforma As Reported Proforma
----------- ---------- ----------- -----------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
----------- ---------- ---------- ----------
Sales:
Net sales $1,486,976 $1,561,064 $2,838,595 $2,840,946
Cost of sales 1,371,295 1,396,946 2,603,586 2,520,880
---------- ---------- ---------- ----------
Gross profit 115,681 164,118 235,009 320,066
---------- ---------- ---------- ----------
Operating expenses:
Selling, general, and
administrative 87,948 100,393 179,383 197,766
Depreciation and
amortization 4,557 3,836 8,800 7,672
---------- ---------- ---------- ----------
Total operating
expenses 92,505 104,229 188,183 205,438
---------- ---------- ---------- ----------
Operating income 23,176 59,889 46,826 114,628
Non-operating expenses:
Interest expense 10,656 9,470 19,990 17,833
Other expense, net 224 134 353 441
---------- ---------- ---------- ----------
Income before
provision for
income taxes 12,296 50,285 26,483 96,354
Provision for income
taxes 4,545 20,466 10,314 39,216
---------- ---------- ---------- ----------
Net income $ 7,751 $ 29,819 $ 16,169 $ 57,138
========== ========== ========== ==========
Basic weighted average
number of common shares
outstanding 30,186 30,185 30,170 30,185
========== ========== ========== ==========
Basic net income per
share applicable to
common stock $ 0.26 $ 0.99 $ 0.54 $ 1.89
========== ========== ========== ==========
Diluted weighted
average number of
common shares
outstanding 30,476 30,185 30,458 30,185
========== ========== ========== ==========
Diluted net income per
share applicable to
common stock $ 0.25 $ 0.99 $ 0.53 $ 1.89
========== ========== ========== ==========
Dividends declared per
share of common stock $ 0.125 $ 0.25
========== ==========
BlueLinx Holdings Inc.
As Reported Statements of Operations
in thousands, except per share data
Quarters Ended Six Months Ended
-----------------------------------------------
BlueLinx BlueLinx BlueLinx BlueLinx
As Reported As Reported As Reported As Reported
(Combined) (Combined)
----------- ----------- ----------- -----------
July 2, July 3, July 2, July 3,
2005 2004 2005 2004
----------- ----------- ----------- -----------
Sales:
Net sales $1,486,976 $1,561,064 $2,838,595 $2,840,946
Cost of sales 1,371,295 1,398,423 2,603,586 2,524,207
---------- ---------- ---------- ----------
Gross profit 115,681 162,641 235,009 316,739
---------- ---------- ---------- ----------
Operating expenses:
Selling, general, and
administrative 87,948 106,758 179,383 201,439
Depreciation and
amortization 4,557 4,061 8,800 8,492
---------- ---------- ---------- ----------
Total operating
expenses 92,505 110,819 188,183 209,931
---------- ---------- ---------- ----------
Operating income 23,176 51,822 46,826 106,808
Non-operating expenses:
Interest expense 10,656 6,794 19,990 6,794
Other expense, net 224 134 353 441
---------- ---------- ---------- ----------
Income before
provision for
income taxes 12,296 44,894 26,483 99,573
Provision for income
taxes 4,545 17,223 10,314 37,940
---------- ---------- ---------- ----------
Net income $ 7,751 $ 27,671 $ 16,169 $ 61,633
========== ========== ========== ==========
Basic weighted average
number of common
shares outstanding 30,186 30,170
========== ==========
Basic net income per
share applicable to
common stock $ 0.26 $ 0.54
========== ==========
Diluted weighted
average number of
common shares
outstanding 30,476 30,458
========== ==========
Diluted net income per
share applicable to
common stock $ 0.25 $ 0.53
========== ==========
Dividends declared per
share of common stock $ 0.125 $ 0.25
========== ==========
BlueLinx Holdings Inc.
As Reported Balance Sheets
in thousands
----------- -----------
BlueLinx BlueLinx
As Reported As Reported
----------- -----------
July 2, January 1,
2005 2005
----------- -----------
Assets:
Current assets:
Cash $ 27,197 $ 15,572
Receivables 509,505 363,688
Inventories 486,133 500,231
Deferred income taxes 7,455 6,122
Other current assets 42,615 34,203
---------- ----------
Total current assets 1,072,905 919,816
---------- ----------
Property, plant, and equipment:
Land and land improvements 55,916 55,573
Buildings 94,083 93,133
Machinery and equipment 50,356 41,063
Construction in progress 88 5,089
---------- ----------
Property, plant, and equipment, at cost 200,443 194,858
Accumulated depreciation (14,794) (7,880)
---------- ----------
Property, plant, and equipment, net 185,649 186,978
Other non-current assets 27,953 30,268
---------- ----------
Total assets $1,286,507 $1,137,062
========== ==========
Liabilities :
Current liabilities:
Accounts payable $ 335,147 $ 270,271
Bank overdrafts 42,493 32,033
Accrued compensation 8,541 18,292
Current maturities of long-term debt 124,595 94,103
Other current liabilities 13,246 13,142
---------- ----------
Total current liabilities 524,022 427,841
---------- ----------
Noncurrent liabilities:
Long-term debt 590,000 558,000
Deferred income taxes 762 740
Other long-term liabilities 11,798 8,989
---------- ----------
Total liabilities 1,126,582 995,570
---------- ----------
Shareholders' Equity:
Common stock 302 295
Additional paid in capital 131,301 121,306
Accumulated other comprehensive income (981) (789)
Retained earnings 29,303 20,680
---------- ----------
Total shareholders' equity 159,925 141,492
---------- ----------
---------- ----------
Total liabilities and equity $1,286,507 $1,137,062
========== ==========
BlueLinx Holdings Inc.
As Reported Statements of Cash Flows
in thousands
Six Months Ended
-----------------------
BlueLinx BlueLinx
As Reported As Reported
(Combined)
----------- -----------
July 2, July 3,
2005 2004
----------- -----------
Cash flows from operating activities:
Net income $ 16,169 $ 61,633
Adjustments to reconcile net income
to cash used in operations:
Depreciation and amortization 8,800 8,492
Amortization of debt issue costs 1,893 459
Deferred income tax provision (benefit) (1,311) 6,928
Changes in assets and liabilities:
Receivables (145,817) (235,556)
Inventories 14,098 (144,341)
Accounts payable 64,876 278,710
Changes in other working capital (17,446) 197
Other 1,992 (1,578)
--------- ---------
Net cash used in operating activities $ (56,746) $ (25,056)
--------- ---------
Cash flows from investing activities:
Acquisition of operating assets of division - (776,307)
Property, plant, and equipment investments (6,323) (1,519)
Proceeds from sale of assets 650 252
--------- ---------
Cash used in investing activities $ (5,673) $(777,574)
--------- ---------
Cash flows from financing activities:
Net transactions with Georgia-Pacific
Corporation - 88,352
Issuance of preferred stock - 95,000
Issuance of common stock, net 8,600 5,000
Proceeds from stock options exercised 38 -
Net increase in revolving credit facility 62,492 451,769
Proceeds from issuance of term loan - 100,300
Proceeds from issuance of mortgage payable - 100,000
Fees paid to issue debt - (15,192)
Increase in bank overdrafts 10,460 9,329
Common dividends paid (7,546) -
--------- ---------
Net cash provided by financing activities $ 74,044 $ 834,558
--------- ---------
Increase in cash 11,625 31,928
Balance, beginning of period 15,572 506
--------- ---------
Balance, end of period $ 27,197 $ 32,434
========= =========
BlueLinx Holdings Inc.
Statements of Operations
As Reported Reconciliation
in thousands, except per share data
Distribution BlueLinx
BlueLinx BlueLinx Division As Reported
As Reported As Reported As Reported (Combined)
----------- ----------- ----------- -----------
Period from Period from Period from Period from
April 3, 2005 April 4, 2004 April 4,2004 April 4,
to July 2, to July 3, to May 7, to July 3,
2005 2004 2004 2004
------------- ------------- ------------ ------------
Sales:
Net sales $1,486,976 $955,612 $605,452 $1,561,064
Cost of sales 1,371,295 866,084 532,339 1,398,423
---------- -------- -------- ----------
Gross profit 115,681 89,528 73,113 162,641
---------- -------- -------- ----------
Operating expenses:
Selling, general,
and
administrative 87,948 61,652 45,106 106,758
Depreciation and
amortization 4,557 2,317 1,744 4,061
---------- -------- -------- ----------
Total operating
expenses 92,505 63,969 46,850 110,819
---------- -------- -------- ----------
Operating income 23,176 25,559 26,263 51,822
Non-operating
expenses:
Interest expense 10,656 6,794 - 6,794
Other expense net 224 (173) 307 134
---------- -------- -------- ----------
Income before
income taxes 12,296 18,938 25,956 44,894
Provision for
income taxes 4,545 7,386 9,837 17,223
---------- -------- -------- ----------
Net income $ 7,751 $ 11,552 $ 16,119 $ 27,671
========== ======== ======== ==========
Less: Preferred
stock dividends - 1,484
Net income
applicable to
common
shareholders $ 7,751 $ 10,068
========== ========
Basic weighted
average number
of common shares
outstanding 30,186 18,100
========== ========
Basic net income
per share
applicable to
common stock $ 0.26 $ 0.56
========== ========
Diluted weighted
average number of
common shares
outstanding 30,476 19,288
========== ========
Diluted net income
per share
applicable to
common stock $ 0.25 $ 0.52
========== ========
Dividends declared
per share of
common stock $ 0.125
==========
BlueLinx Holdings Inc.
Statements of Operations Six Months
As Reported Reconciliation
in thousands, except per share data
Distribution BlueLinx
BlueLinx BlueLinx Division As Reported
As Reported As Reported As Reported (Combined)
----------- ------------ ------------ -----------
Period from Period from Period from Six Months
January 2, 2005 Inception January 4, 2004 Ended
to July 2, (March 8, 2004) to May 7, July 3,
to July 3,
2005 2004 2004 2004
------------ ------------ ------------ -----------
Sales:
Net sales $2,838,595 $955,612 $1,885,334 $2,840,946
Cost of sales 2,603,586 866,084 1,658,123 2,524,207
---------- ---------- ---------- ----------
Gross profit 235,009 89,528 227,211 316,739
---------- ---------- ---------- ----------
Operating expenses:
Selling, general,
and
administrative 179,383 62,236 139,203 201,439
Depreciation and
amortization 8,800 2,317 6,175 8,492
---------- ---------- ---------- ----------
Total operating
expenses 188,183 64,553 145,378 209,931
---------- ---------- ---------- ----------
Operating income 46,826 24,975 81,833 106,808
Non-operating
expenses:
Interest
expense 19,990 6,794 - 6,794
Other expense
net 353 (173) 614 441
---------- ---------- ---------- ----------
Income before
income taxes 26,483 18,354 81,219 99,573
Provision for
income taxes 10,314 7,158 30,782 37,940
---------- ---------- ---------- ----------
Net income 16,169 11,196 50,437 61,633
========== ========== ========== ==========
Less: Preferred
stock dividends - 1,484
Net income
applicable to
common
shareholders $ 16,169 $ 9,712
========== ==========
Basic weighted
average number
of common shares
outstanding 30,170 18,100
========== ==========
Basic net income
per share
applicable to
common stock $ 0.54 $ 0.54
========== ==========
Diluted weighted
average number
of common
shares
outstanding 30,458 19,288
========== ==========
Diluted net
income per
share
applicable to
common stock $ 0.53 $ 0.50
========== ==========
Dividends
declared per
share of
common stock $ 0.25
==========
BlueLinx Holdings Inc.
Statements of Cash Flows
As Reported Reconciliation
(in thousands)
Distribution BlueLinx
BlueLinx BlueLinx Division As Reported
As Reported As Reported As Reported (Combined)
------------- ----------- ------------- -----------
Period from Period from Period from Six Months
January 2, 2005 Inception January 4, 2004 Ended
to July 2, (March 8,2004) to May 7, July 3,
to July 3,
2005 2004 2004 2004
------------- ------------ ------------ -----------
Cash flows from
operating
activities:
Net income $ 16,169 $ 11,196 $ 50,437 $ 61,633
Adjustments to
reconcile net
income to cash
provided by
(used in)
operations:
Depreciation
and
amortization 8,800 2,317 6,175 8,492
Amortization of
debt issue costs 1,893 459 - 459
Deferred income
tax provision
(benefit) (1,311) (2,255) 9,183 6,928
Changes in assets
and liabilities:
Receivables (145,817) 56,794 (292,350) (235,556)
Inventories 14,098 1,348 (145,689) (144,341)
Accounts
payable 64,876 20,938 257,772 278,710
Changes in
other working
capital (17,446) (2,267) 2,464 197
Other 1,992 396 (1,974) (1,578)
--------- --------- --------- ---------
Net cash provided
by (used in)
operating
activities $ (56,746) $ 88,926 $(113,982) $ (25,056)
--------- --------- --------- ---------
Cash flows from
investing
activities:
Acquisition of
operating assets
of division - (776,307) - (776,307)
Property, plant,
and equipment
investments (6,323) (141) (1,378) (1,519)
Proceeds from sale
of assets 650 - 252 252
--------- --------- --------- ---------
Cash used in
investing
activities $ (5,673) $(776,448) $ (1,126) $(777,574)
--------- --------- --------- ---------
Cash flows from
financing
activities:
Net transactions
with Georgia-
Pacific
Corporation - - 88,352 88,352
Issuance of
preferred stock - 95,000 - 95,000
Issuance of common
stock, net 8,600 5,000 - 5,000
Proceeds from
stock options
exercised 38 -
Net increase in
revolving
credit facility 62,492 451,769 - 451,769
Proceeds from
issuance of
term loan - 100,300 - 100,300
Proceeds from
issuance of
mortgage payable - 100,000 - 100,000
Fees paid to issue
debt - (15,192) - (15,192)
Increase (decrease)
in bank
overdrafts 10,460 (16,921) 26,250 9,329
Common dividends
paid (7,546) - - -
--------- --------- --------- ---------
Net cash provided
by financing
activities $ 74,044 $ 719,956 $ 114,602 $ 834,558
--------- --------- --------- ---------
Increase
(decrease)
in cash 11,625 32,434 (506) 31,928
Balance, beginning
of period 15,572 - 506 506
--------- --------- --------- ---------
Balance, end of
period $ 27,197 $ 32,434 $ - $ 32,434
========= ========= ========= =========
CONTACT: BlueLinx Holdings Inc.
David Morris, 866-671-5138
cwitty@lhai.com
or
Investor:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening / Chris Witty, 212-838-3777
SOURCE: BlueLinx Holdings Inc.
|
Bluelinx Holdings Inc
