EX-99.1 3 c73160exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
 

EXHIBIT 99.1
(BLUELINX LOGO)
4300 Wildwood Parkway
Atlanta, GA 30339
1-888-502-BLUE
www.BlueLinxCo.com
     
BlueLinx Contacts:
   
Doug Goforth, CFO & Treasurer
  Investor Relations:
BlueLinx Holdings Inc.
  Russ Zukowski, Vice President Finance
(770) 953-7505
  (770) 953-7620
FOR IMMEDIATE RELEASE
BLUELINX ANNOUNCES FIRST-QUARTER RESULTS
Net Loss of $0.34 Per Share on 25.1 Percent Revenue Decline as Housing-Related Slowdown Continues -
ATLANTA — May 1, 2008 — BlueLinx Holdings Inc. (NYSE: BXC), a leading distributor of building products in North America, today reported financial results for the first quarter ended March 29, 2008.
The Company incurred a first-quarter net loss of $10.6 million, or $0.34 per diluted share, compared with a net loss of $189,000, or $0.01 per share, in the year-ago period. Revenues decreased 25.1% to $716.8 million from $957.1 million for the same period a year ago, reflecting a 28.1% drop in structural product sales and a 22.5% sales decline in specialty products. Structural and specialty unit volumes declined 27.8% and 22.3%, respectively, from year-ago levels. The sales decline was mainly due to lower unit volumes in both structural and specialty products driven predominately by a 30.2% decline in housing starts relative to year ago levels.
Gross profit for the first quarter totaled $77.8 million, down 25% from $103.8 million in the prior-year period, reflecting lower unit volume associated with the decline in housing starts. Gross margin increased by 10 basis points to 10.9% from 10.8% in the prior year period reflecting a shift in mix toward higher-margin specialty products. First-quarter structural product gross margin of 8.6% declined 10 basis points from the year-ago period. Specialty product gross margin of 14.2% increased 30 basis points from a year ago.
Total operating expenses of $85.6 million decreased $8.3 million, or 8.8%, from the same period a year ago, primarily reflecting decreases in payroll costs related to headcount reductions implemented in the fourth quarter of 2007. Operating loss for the quarter totaled $7.8 million, compared with an operating profit of $9.9 million a year ago.
“Despite the challenging business environment, we continued to provide quality service to our customers and suppliers. We utilized approximately $21 million in cash for operations during the quarter compared to using $77 million in the year ago quarter,” said Howard S. Cohen, interim chief executive officer.
“We remain focused on managing cash flow by tightly managing inventories, receivables and our operating expenses. Our company is financially positioned to be able to continue executing throughout this housing downturn,” Cohen added. “We ended the period with approximately $228 million in excess availability on our revolving credit facility.”

 

 


 

BlueLinx Q1 ‘08 Press Release
Page 2 of 5
Conference Call
BlueLinx will host a conference call today at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation. Investors can listen to the conference call and view the accompanying slide presentation by going to the BlueLinx web site, www.BlueLinxCo.com, and selecting the conference link on the Investor Relations page. Investors will be able to access an archived recording of the conference call for one week by calling 706-645-9291, Conference ID# 44179237. 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, when appropriate, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, without the impact of significant special items, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides a better baseline for modeling future earnings expectations. Any non-GAAP measures used herein are reconciled in the financial tables accompanying this news release. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.
About BlueLinx Holdings Inc.
Headquartered in Atlanta, Georgia, BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America. Employing approximately 2,600 people, BlueLinx offers greater than 10,000 products from over 750 suppliers to service approximately 11,500 customers nationwide, including dealers, industrial manufacturers, manufactured housing producers and home improvement retailers. The Company operates its distribution business from sales centers in Atlanta and Denver, and its network of more than 70 warehouses. BlueLinx is traded on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its Web site 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 our control, that may cause our business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: changes in the supply and/or demand for products that we distribute, especially as a result of conditions in the residential housing market; general economic and business conditions in the United States; the activities of competitors; changes in significant operating expenses; changes in the availability of capital; 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, 2007 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 Q1 ‘08 Press Release
Page 3 of 5
BlueLinx Holdings Inc.
Statements of Operations
in thousands, except per share data
                 
    Quarters Ended  
    March 29,     March 31,  
    2008     2007  
    (unaudited)     (unaudited)  
 
               
Net sales
  $ 716,760     $ 957,114  
Cost of sales
    638,957       853,359  
 
           
Gross profit
    77,803       103,755  
 
           
Operating expenses:
               
Selling, general, and administrative
    80,635       88,468  
Depreciation and amortization
    4,968       5,400  
 
           
Total operating expenses
    85,603       93,868  
 
           
 
               
Operating (loss) income
    (7,800 )     9,887  
Non-operating expenses:
               
Interest expense
    9,354       10,606  
Other expense (income), net
    130       (383 )
 
           
 
               
Loss before benefit from income taxes
    (17,284 )     (336 )
Benefit from income taxes
    (6,693 )     (147 )
 
           
Net loss
  $ (10,591 )   $ (189 )
 
           
 
               
Basic weighted average number of common shares outstanding
    30,928       30,800  
 
           
Basic net loss per share applicable to common stock
  $ (0.34 )   $ (0.01 )
 
           
Diluted weighted average number of common shares outstanding
    30,928       30,800  
 
           
Diluted net loss per share applicable to common stock
  $ (0.34 )   $ (0.01 )
 
           
Dividends declared per share of common stock
  $     $ 0.125  
 
           

 

 


 

BlueLinx Q1 ‘08 Press Release
Page 4 of 5
BlueLinx Holdings Inc.
Balance Sheets
in thousands
                 
    March 29,     December 29,  
    2008     2007  
    (unaudited)        
Current Assets:
               
Current assets:
               
Cash
  $ 16,956     $ 15,759  
Receivables
    280,948       263,176  
Inventories
    351,212       335,887  
Deferred income taxes
    14,574       12,199  
Other current assets
    39,143       53,231  
 
           
Total current assets
    702,833       680,252  
 
           
 
               
Property, plant, and equipment:
               
Land and land improvements
    57,348       57,295  
Buildings
    98,502       98,420  
Machinery and equipment
    69,714       67,217  
Construction in progress
    1,227       4,212  
 
           
Property, plant, and equipment, at cost
    226,791       227,144  
Accumulated depreciation
    (58,039 )     (54,702 )
 
           
Property, plant, and equipment, net
    168,752       172,442  
Non-current deferred income taxes
    4,931       2,628  
Other assets
    31,062       28,114  
 
           
Total assets
  $ 907,578     $ 883,436  
 
           
 
               
Liabilities :
               
Current liabilities:
               
Accounts payable
  $ 173,918     $ 164,717  
Bank overdrafts
    33,759       37,152  
Accrued compensation
    8,268       10,372  
Current maturities of long-term debt
    28,465        
Other current liabilities
    26,693       19,280  
 
           
Total current liabilities
    271,103       231,521  
 
           
Noncurrent liabilities:
               
Long-term debt
    475,877       478,535  
Other non-current liabilities
    19,816       18,557  
 
           
Total liabilities
    766,796       728,613  
 
           
 
               
Shareholders’ Equity:
               
Common stock
    322       312  
Additional paid in capital
    142,002       142,081  
Accumulated other comprehensive income
    2,045       5,426  
Retained (deficit) earnings
    (3,587 )     7,004  
 
           
Total shareholders’ equity
    140,782       154,823  
 
           
 
               
 
           
Total liabilities and shareholders’ equity
  $ 907,578     $ 883,436  
 
           

 

 


 

BlueLinx Q1 ‘08 Press Release
Page 5 of 5
BlueLinx Holdings Inc.
Statements of Cash Flows
in thousands
                 
    Quarters Ended  
    March 29,     March 31,  
    2008     2007  
    (unaudited)     (unaudited)  
Cash flows from operating activities:
               
Net loss
  $ (10,591 )   $ (189 )
Adjustments to reconcile net loss to cash used in operating activities:
               
Depreciation and amortization
    4,968       5,400  
Amortization of debt issue costs
    608       606  
Non-cash vacant property charges
    208        
Deferred income tax (benefit) provision
    (2,887 )     198  
Share-based compensation (credit) expense
    (114 )     874  
Excess tax deficiencies (benefits) from share-based compensation arrangements
    218       (60 )
Changes in assets and liabilities:
               
Receivables
    (17,772 )     (70,152 )
Inventories
    (15,325 )     (54,864 )
Accounts payable
    9,201       38,126  
Changes in other working capital
    16,388       3,526  
Other
    (5,991 )     (472 )
 
           
Net cash used in operating activities
    (21,089 )     (77,007 )
 
           
 
               
Cash flows from investing activities:
               
Property, plant, and equipment investments
    (957 )     (6,092 )
Proceeds from disposition of assets
    607       879  
 
           
Net cash used in investing activities
    (350 )     (5,213 )
 
           
 
               
Cash flows from financing activities:
               
Proceeds from stock options exercised
    434       323  
Excess tax (deficiencies) benefits from share-based compensation arrangements
    (218 )     60  
Net increase in revolving credit facility
    25,807       78,538  
(Decrease) increase in bank overdrafts
    (3,393 )     362  
Common dividends paid
          (3,876 )
Other
    6       33  
 
           
Net cash provided by financing activities
    22,636       75,440  
 
           
 
               
Increase (decrease) in cash
    1,197       (6,780 )
Balance, beginning of period
    15,759       27,042  
 
           
Balance, end of period
  $ 16,956     $ 20,262  
 
           
###