BlueLinx expects double-digit sales growth in Q4
BlueLinx Holdings has reported preliminary results for its fourth fiscal quarter, with expected revenues at approximately $440 million, an increase of 12.5% from $391.1 million for the fourth quarter of fiscal 2011.
Net loss for the quarter, which ended Dec. 29, 2012, was reported in per-share figures. BlueLinx expects to report a fourth-quarter net loss per diluted share in the range of $0.16 to $0.22. This compares with a net loss of $0.17 per diluted share for the fourth quarter of fiscal 2011.
Gross profit margin for the quarter is expected to be approximately 11.9%, compared with 12.3% for the fourth quarter of fiscal 2011. The net loss included a pre-tax net gain of $0.2 million, or $0.00 per diluted share, and $3.9 million, or $0.07 per diluted share, from significant special items in the fourth quarter of 2012 and 2011, respectively.
For the full year ended Dec. 29, 2012, the Atlanta-based distributor expects to report a net loss per diluted share in the range of $0.35 to $0.41, compared with a net loss of $0.89 per diluted share in fiscal 2011. Revenues are expected to be approximately $1.91 billion for fiscal year 2012, an increase of 8.5% from $1.76 billion for the previous fiscal year.
Gross profit margin for fiscal 2012 is expected to be approximately 12.1%, compared with 12.0% in fiscal 2011. Net loss included a pre-tax net gain of $10.4 million, or $0.17 per diluted share, and $12.6 million, or $0.29 per diluted share, from significant special items in fiscal 2012 and fiscal 2011, respectively.
“We are excited about BlueLinx’ prospects in the recovering housing market and the continued favorable trends in housing fundamentals experienced through the fourth quarter,” said George Judd, president and CEO. “Year-over-year revenues grew for the sixth consecutive quarter in the fourth quarter of 2012.” Judd also expressed “positive momentum” as the company enters the 2013 fiscal year.
Revolving credit facilities and mortgage indebtedness for Bluelinx, based on the preliminary results, totaled approximately $171.4 million and $209.6 million, respectively. As of Dec. 31, 2011, revolving credit facilities and mortgage indebtedness totaled approximately $94.5 million and $243.3 million, respectively. Excess availability under the company’s revolving credit facilities as of Dec. 29, 2012, is expected to be approximately $86.6 million, compared with $118.3 million as of Dec. 31, 2011.
The BlueLinx board of directors has approved a plan to commence a rights offering of common stock to its stockholders, which the company expects will produce gross proceeds of approximately $40 million. Proceeds of this transaction will be used to repay indebtedness under its U.S. credit facility, the announcement said. Cerberus ABP Investor, the company’s majority stockholder, has indicated that it intends to subscribe for the maximum additional shares it can purchase, subject to certain conditions.
BlueLinx will report financial results for the fourth quarter before the market opens on Feb. 13, 2013.
William Kristol to speak at NLBMDA event
William Kristol, editor of The Weekly Standard and a regular commentator on Fox News, will address the members of the National Lumber & Building Material Dealers Association (NLBMDA) at its legislative conference on March 18-20, 2013. The annual spring conference will be held at the Crystal City Marriott in Arlington, Va.
LBM dealers from around the country will gather to discuss policy issues and attend Capitol Hill appointments with their legislators and key federal agency officials. The conference will culminate with a reception for members of Congress and their staff on Capitol Hill. The NLBMDA event will take place jointly with the Window & Door Manufacturers Association (WDMA), providing business networking opportunities for members of both organizations.
For more information on the conference, click here.
New president at Style Crest
Style Crest, the Fremont, Ohio-based distributor of building materials and manufacturer of vinyl siding, has appointed Jeff Buckley as president, Residential Housing Group.
Buckley spent his career in building products and distribution, most recently with Weyerhauser, where he held the position of general manager of the Eastern Division since 2006.
Buckley will be leading the company’s Residential Housing Group efforts in increasing sales and profitability through market share growth in both new construction and the remodeling markets.
Style Crest is a two-step distributor of exterior siding, exterior accessories, and composite decking and railing, with plans to continue to add to its portfolio of building products. Style Crest also manufactures vinyl siding sold under the Homex and RMC Siding brands. Style Crest primarily distributes products through independent lumber building material dealers and other specialty dealers.