The building products distributor looks to buy up to $25 million of its outstanding shares of common stock.
BlueLinx Holdings Inc., the wholesale distributor of building products, announced today that its board of directors authorized a new share repurchase program under which the Company may repurchase up to $25 million of its outstanding shares of common stock in the open market.
The move is in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.
BlueLinx said its decision to repurchase its shares, as well as the timing of the repurchases, will depend on a variety of factors, including the ongoing assessment of the company’s capital needs, the market price of the company’s common stock, general market conditions and other corporate considerations, as determined by management.
The repurchase program may be suspended or discontinued at any time, BlueLinx said.
“BlueLinx is committed to a balanced capital allocation strategy designed to maximize total shareholder returns,” said Dwight Gibson, president and CEO of BlueLinx. “Given the strong performance of our business during the past year, coupled with a favorable multi-year outlook for residential construction and home renovation markets, we believe our capital allocation strategy should prioritize a combination of organic growth investments, the acquisition of complementary assets in key target markets and an opportunistic return of capital program.”
Gibson noted that the approval by board for a new share repurchase authorization demonstrates confidence in our business, “while providing management with another tool to optimize value creation.”
Earlier this month, BlueLinx reported that 2021 second net sales soared 87% to $1.3 billion from net sales of $698.8 million in the second quarter 2020.
The company also posted a net income of $113 million for the second quarter compared to a net income of $7 million in the prior second quarter.
Based in Marietta, Ga., BlueLinx serves 15,000 national, regional, and local dealers, specialty distributors, national home centers, and manufactured housing customers in 40 states.