BlueLinx pursues sales leasebacks

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BlueLinx pursues sales leasebacks

By HBSDealer Staff - 12/11/2019
Building products distributor BlueLinx Holdings Inc. says it continues to actively explore sale leaseback and real estate sale opportunities. The announcement, along with a report on gains of sales volume, preceded a 15% jump in the share price of BXC on Tuesday.

The Atlanta-based company has a $100 million portfolio of owned real estate, and CEO Mitch Lewis said that BlueLinx is “making good progress” monetizing that portfolio through sale-leasebacks and outright sales.

Mitch Lewis

“We believe these efforts should generate meaningful debt reduction in the next 60 days,” he said in a press release. The company’s debt reduction efforts could also benefit from filing for a shelf registration, which gives the company the option to issue securities.

The company is pleased by ‘tangible gains’ in volume, “as the Company continues to emphasize customer service, sales growth, and operational efficiency,” he said. The sales volume recovery discussed during BlueLinx’s third quarter earnings call has continued through the first seven weeks of the fourth quarter. For that period, excluding the effect of the previously discussed loss of a key siding product line, we continued to make progress recapturing market share, as evidenced by overall volumes being up approximately 3% over the comparable prior year period.”

The company reported significant deflation-related sales declines in its recent third-quarter earnings report.