Unaudited Supplemental Consolidating Financial Statements

6 Months Ended

Jul. 02, 2011

Unaudited Supplemental Consolidating Financial Statements [Abstract]

Unaudited Supplemental Consolidating Financial Statements

14. Unaudited Supplemental Consolidating Financial Statements

The condensed consolidating financial information as of July 2, 2011 and January 1, 2011 and for the second quarters and first half of fiscal 2011 and fiscal 2010 is provided due to restrictions in our revolving credit facility that limit distributions by BlueLinx Corporation, our operating company and our wholly-owned subsidiary, to us, which, in turn, may limit our ability to pay dividends to holders of our common stock (see our Annual Report on Form 10-K for the year ended January 1, 2011, for a more detailed discussion of these restrictions and the terms of the facility). Also included in the supplemental condensed consolidated financial statements are sixty-two single member limited liability companies, which are wholly owned by us (the “LLC subsidiaries”). The LLC subsidiaries own certain warehouse properties that are occupied by BlueLinx Corporation, each under the terms of a master lease agreement. The warehouse properties collateralize a mortgage loan and are not available to satisfy the debts and other obligations of either us or BlueLinx Corporation.

The consolidating statement of operations for BlueLinx Holdings Inc. for the period from April 3, 2011 to July 2, 2011 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation
	Holdings			and			LLC
	Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	500,810		$	7,429		$	(7,429	)	$	500,810
Cost of sales		—			443,165			—			—			443,165

Gross profit		—			57,645			7,429			(7,429	)		57,645

Operating expenses:
Selling, general and administrative		1,387			62,822			—			(7,429	)		56,780
Depreciation and amortization		—			1,663			961			—			2,624

Total operating expenses		1,387			64,485			961			(7,429	)		59,404

Operating (loss) income		(1,387	)		(6,840	)		6,468			—			(1,759	)
Non-operating expenses:
Interest expense		—			2,980			4,750			—			7,730
Changes associated with ineffective interest rate swap		—			—			—			—			—
Other (income) expense, net		—			133			1			—			134

(Loss) income before (benefit from) provision for income taxes		(1,387	)		(9,953	)		1,717			—			(9,623	)
(Benefit from) provision for income taxes		706			122			(670	)		—			158
Equity in loss of subsidiaries		(7,688	)		—			—			7,688			—

Net (loss) income	$	(9,781	)	$	(10,075	)	$	2,387		$	7,688		$	(9,781	)

The consolidating statement of operations for BlueLinx Holdings Inc. for the period from April 4, 2010 to July 3, 2010 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation
	Holdings			and			LLC
	Inc.			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	540,781		$	7,456	$	(7,456	)	$	540,781
Cost of sales		—			476,662			—		—			476,662

Gross profit		—			64,119			7,456		(7,456	)		64,119

Operating expenses:
Selling, general and administrative		1,561			62,939			45		(7,456	)		57,089
Depreciation and amortization		—			2,473			961		—			3,434

Total operating expenses		1,561			65,412			1,006		(7,456	)		60,523

Operating (loss) income		(1,561	)		(1,293	)		6,450		—			3,596
Non-operating expenses:
Interest expense		—			3,447			4,758		—			8,205
Changes associated with ineffective interest rate swap		—			(1,256	)		—		—			(1,256	)
Other (income) expense, net		—			(48	)		66		—			18

(Loss) income before (benefit from) provision for income taxes		(1,561	)		(3,436	)		1,626		—			(3,371	)
(Benefit from) provision for income taxes		(630	)		32			634		—			36
Equity in loss of subsidiaries		(2,476	)		—			—		2,476			—

Net (loss) income	$	(3,407	)	$	(3,468	)	$	992	$	2,476		$	(3,407	)

The consolidating statement of operations for BlueLinx Holdings Inc. for the period from January 2, 2011 to July 2, 2011 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation
	Holdings			and			LLC
	Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	891,414		$	14,857		$	(14,857	)	$	891,414
Cost of sales		—			787,500			—			—			787,500

Gross profit		—			103,914			14,857			(14,857	)		103,914

Operating expenses:
Selling, general and administrative		3,005			124,301			(7,222	)		(14,857	)		105,227
Depreciation and amortization		—			3,647			1,914			—			5,561

Total operating expenses		3,005			127,948			(5,308	)		(14,857	)		110,788

Operating (loss) income		(3,005	)		(24,034	)		20,165			—			(6,874	)
Non-operating expenses:
Interest expense		—			7,292			9,499			—			16,791
Changes associated with the ineffective interest rate swap		—			(1,751	)		—			—			(1,751	)
Other expense, net		—			155			(6	)		—			149

(Loss) income before (benefit from) provision for income taxes		(3,005	)		(29,730	)		10,672			—			(22,063	)
(Benefit from) provision for income taxes		(3,481	)		(637	)		4,162			—			44
Equity in loss of subsidiaries		(22,583	)		—			—			22,583			—

Net (loss) income	$	(22,107	)	$	(29,093	)	$	6,510		$	22,583		$	(22,107	)

The consolidating statement of operations for BlueLinx Holdings Inc. for the period from January 3, 2010 to July 3, 2010 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation
	Holdings			and			LLC
	Inc.			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	971,831		$	14,912	$	(14,912	)	$	971,831
Cost of sales		—			855,434			—		—			855,434

Gross profit		—			116,397			14,912		(14,912	)		116,397

Operating expenses:
Selling, general and administrative		3,456			124,969			90		(14,912	)		113,603
Depreciation and amortization		—			5,257			1,921		—			7,178

Total operating expenses		3,456			130,226			2,011		(14,912	)		120,781

Operating (loss) income		(3,456	)		(13,829	)		12,901		—			(4,384	)
Non-operating expenses:
Interest expense		—			6,013			9,507		—			15,520
Changes associated with the ineffective interest rate swap		—			(2,061	)		—		—			(2,061	)
Other expense, net		—			214			37		—			251

(Loss) income before (benefit from) provision for income taxes		(3,456	)		(17,995	)		3,357		—			(18,094	)
(Benefit from) provision for income taxes		(1,318	)		61			1,309		—			52
Equity in loss of subsidiaries		(16,008	)		—			—		16,008			—

Net (loss) income	$	(18,146	)	$	(18,056	)	$	2,048	$	16,008		$	(18,146	)

The consolidating balance sheet for BlueLinx Holdings Inc. as of July 2, 2011 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation			LLC
	Holdings Inc.			and Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets:
Current assets:
Cash	$	90		$	6,019		$	—		$	—		$	6,109
Receivables		—			205,735			—			—			205,735
Inventories		—			212,654			—			—			212,654
Deferred income tax assets		—			59			—			—			59
Other current assets		1,955			20,306			40,641			—			62,902

Intercompany receivable		59,169			10,287			2,637			(72,093	)		—


Total current assets		61,214			455,060			43,278			(72,093	)		487,459

Property and equipment:
Land and land improvements		—			3,021			48,947			—			51,968
Buildings		—			9,737			87,954			—			97,691
Machinery and equipment		—			74,495			—			—			74,495
Construction in progress		—			1,027			—			—			1,027

Property and equipment, at cost		—			88,280			136,901			—			225,181
Accumulated depreciation		—			(68,271	)		(27,714	)		—			(95,985	)

Property and equipment, net		—			20,009			109,187			—			129,196
Investment in subsidiaries		(67,763	)		—			—			67,763			—
Non-current deferred income tax assets		—			—			—			—			—

Other non-current assets		—			18,472			141			—			18,613


Total assets	$	(6,549	)	$	493,541		$	152,606		$	(4,330	)	$	635,268

Liabilities:
Current liabilities:
Accounts payable	$	203		$	95,119		$	—		$	—			95,322
Bank overdrafts		—			28,798			—			—			28,798
Accrued compensation		20			5,382			—			—			5,402

Current maturities of long-term debt		—			110,584			40,923			—			151,507
Other current liabilities		811			12,883			1,244			—			14,938
Intercompany payable		11,807			60,286			—			(72,093	)		—

Total current liabilities		12,841			313,052			42,167			(72,093	)		295,967


Non-current liabilities:
Long-term debt		—			78,326			244,746			—			323,072
Non-current deferred income tax liabilities		—			107			—			—			107
Other non-current liabilities		3			35,511			—			—			35,514

Total liabilities		12,844			426,996			286,913			(72,093	)		654,661

Stockholders’ (Deficit) Equity/Parent’s Investment		(19,393	)		66,545			(134,307	)		67,763			(19,392	)

Total liabilities and equity	$	(6,549	)	$	493,541		$	152,606		$	(4,330	)	$	635,268

The consolidating balance sheet for BlueLinx Holdings Inc. as of January 1, 2011 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation			LLC
	Holdings Inc.			and Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets:
Current assets:
Cash	$	384		$	13,913		$	—		$	—		$	14,297
Receivables		—			119,202			—			—			119,202
Inventories		—			188,250			—			—			188,250
Deferred income tax assets, current		—			143			—			—			143
Other current assets		669			20,500			1,599			—			22,768
Intercompany receivable		57,208			8,759			—			(65,967	)		—

Total current assets		58,261			350,767			1,599			(65,967	)		344,660

Property and equipment:
Land and land improvements		—			3,027			49,513			—			52,540
Buildings		—			8,069			88,651			—			96,720
Machinery and equipment		—			70,860			—			—			70,860
Construction in progress		—			2,028			—			—			2,028

Property and equipment, at cost		—			83,984			138,164			—			222,148

Accumulated depreciation		—			(65,564	)		(26,953	)		—			(92,517	)

Property and equipment, net		—			18,420			111,211			—			129,631
Investment in subsidiaries		(47,943	)		—			—			47,943			—
Other non-current assets		—			19,602			31,126			—			50,728

Total assets	$	10,318		$	388,789		$	143,936		$	(18,024	)	$	525,019

Liabilities:
Current liabilities:
Accounts payable	$	59		$	62,768		$	—		$	—			62,827
Bank overdrafts		—			23,089			—			—			23,089
Accrued compensation		—			4,594			—			—			4,594

Current maturities of long-term debt		—			—			1,190			—			1,190

Other current liabilities		—			15,065			483			1,244			16,792
Intercompany payable		9,264			57,947			—			(67,211	)		—


Total current liabilities		9,323			163,463			1,673			(65,967	)		108,492


Non-current liabilities:
Long-term debt		—			97,200			284,479			—			381,679
Non-current deferred income tax liabilities		—			192			—			—			192
Other non-current liabilities		4			33,661			—			—			33,665

Total liabilities		9,327			294,516			286,152			(65,967	)		524,028

Stockholders’ Equity (Deficit)/Parent’s Investment		991			94,273			(142,216	)		47,943			991


Total liabilities and equity	$	10,318		$	388,789		$	143,936		$	(18,024	)	$	525,019

The consolidating statement of cash flows for BlueLinx Holdings Inc. for the period from January 2, 2011 to July 2, 2011 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation
	Holdings			and			LLC
	Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(22,107	)	$	(29,093	)	$	6,510		$	22,583		$	(22,107	)
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities:
Depreciation and amortization		—			3,647			1,914			—			5,561
Amortization of debt issuance costs		—			1,094			—			—			1,094
Gain from the sale of properties		—			—			(7,222	)		—			(7,222	)
Changes associated with the ineffective interest rate swap		—			(1,751	)		—			—			(1,751	)
Deferred income tax benefit		—			(214	)		—			—			(214	)
Share-based compensation expense		—			1,137			—			—			1,137
Decrease (increase) in restricted cash		—			432			—			—			432
Equity in earnings of subsidiaries		22,583			—			—			(22,583	)		—
Changes in assets and liabilities:
Receivables		—			(86,533	)		—			—			(86,533	)
Inventories		—			(24,404	)		—			—			(24,404	)
Accounts payable		123			32,352			20			—			32,495
Changes in other working capital		(452	)		566			(208	)		(1,244	)		(1,338	)
Intercompany receivable		(1,961	)		(1,528	)		(1,519	)		5,008			—
Intercompany payable		2,543			2,339			(1,118	)		(3,764	)		—
Other		17			(458	)		2,245			—			1,804

Net cash provided by (used in) operating activities		746			(102,414	)		622			—			(101,046	)

Cash flows from investing activities:
Investment in subsidiaries		(1,040	)		—			1,040			—			—
Property, plant and equipment investments		—			(2,702	)		(2,818	)		—			(5,520	)
Proceeds from disposition of assets		—						8,971			—			8,971

Net cash (used in) provided by investing activities		(1,040	)		(2,702	)		7,193			—			3,451

Cash flows from financing activities:
Net transactions with Parent		—			—			—			—			—
Repurchase of common stock		—			—			—			—
Increase in revolving credit facility		—			91,710			—			—			91,710
Payments on capital lease obligations		—			(197	)		—			—			(197	)
Increase in bank overdrafts		—			5,709			—			—			5,709
Increase in restricted cash related to the mortgage		—			—			(7,815	)		—			(7,815	)
Intercompany receivable		—			—			—			—			—
Intercompany payable		—			—			—			—			—
Other					—			—			—

Net cash provided by (used in) financing activities		—			97,222			(7,815	)		—			89,407

Decrease in cash		(294	)		(7,894	)		—			—			(8,188	)
Balance, beginning of period		384			13,913			—			—			14,297

Balance, end of period	$	90		$	6,019		$	—		$	—		$	6,109

Noncash transactions
Capital leases	$	—		$	2,544		$	—		$	—		$	2,544

The consolidating statement of cash flows for BlueLinx Holdings Inc. for the period from January 3, 2010 to July 3, 2010 follows (in thousands):


				BlueLinx
	BlueLinx			Corporation
	Holdings			and			LLC
	Inc.			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(18,146	)	$	(18,056	)	$	2,048		$	16,008		$	(18,146	)
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities:
Depreciation and amortization		—			5,254			1,924			—			7,178
Amortization of debt issuance costs		—			43			336			—			379
Payments from terminating the Georgia-Pacific supply agreement		—			4,706			—			—			4,706
Changes associated with the ineffective interest rate swap		—			(2,061	)		—			—			(2,061	)
Deferred income tax benefit		—			(414	)		—			—			(414	)
Share-based compensation expense		910			1,059			—			—			1,969
Decrease in restricted cash related to the ineffective interest rate swap, insurance, and other		—			5,607			—			—			5,607
Equity in earnings of subsidiaries		16,008			—			—			(16,008	)		—
Changes in assets and liabilities:
Receivables		—			(82,222	)		—			—			(82,222	)
Inventories		—			(52,973	)		—			—			(52,973	)
Accounts payable		4			38,856			—			—			38,860
Changes in other working capital		246			19,503			(1,211	)		—			18,538
Intercompany receivable		10,376			(471	)		—			(9,905	)		—
Intercompany payable		(1,937	)		(9,433	)		1,465			9,905			—
Other		(14	)		(2,253	)		(28	)		—			(2,295	)

Net cash provided by (used in) operating activities		7,447			(92,855	)		4,534			—			(80,874	)

Cash flows from investing activities:
Investment in subsidiaries		(2,123	)		—			—			2,123			—
Property, plant and equipment investments		—			(1,263	)		—			—			(1,263	)
Proceeds from disposition of assets		—			656			—			—			656

Net cash (used in) provided by investing activities		(2,123	)		(607	)		—			2,123			(607	)

Cash flows from financing activities:
Net transactions with Parent		—			—			2,123			(2,123	)		—
Repurchase of common stock		(583	)		—			—			—			(583	)
Increase in revolving credit facility		—			68,687			—			—			68,687
Payments on capital lease obligations		—			(473	)		—			—			(473	)
Increase in bank overdrafts		—			9,880			—			—			9,880
Increase in restricted cash related to the mortgage		—			—			(6,581	)		—			(6,581	)
Debt financing costs		—			(43	)		(48	)		—			(91	)
Intercompany receivable		(4,716	)		—			—			4,716			—
Intercompany payable		—			4,716			—			(4,716	)		—
Other		6			—			—			—			6

Net cash (used in) provided by financing activities		(5,293	)		82,767			(4,506	)		(2,123	)		70,845

Increase (decrease) in cash		31			(10,695	)		28			—			(10,636	)
Balance, beginning of period		32			29,129			296			—			29,457

Balance, end of period	$	63		$	18,434		$	324		$	—		$	18,821

- Definition

Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions.

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