BlueLinx swings to Q2 profit
Distributor slims down its losses for the first half of 2019.
Building products distributor BlueLinx Holdings reported a second quarter 2019 net income of $6 million compared to a net loss of $9 million for the same period last year.
Sales for the quarter decreased 21% to $706 million compared to $893 million in the second quarter of 2018, however.
Sales for the first six months of 2019 inched upward to $1.35 billion from $1.33 billion in the first half of 2018.
The company’s losses for the first six months of 2019 were narrowed to $400,000 compared to a net loss of $22 million in the same period a year ago.
The Marietta, Ga.-based company’s results include second quarter 2019 includes gains from sales of real property of $10 million and one-time charges for integration costs and professional fees of $4 million related to last year’s Cedar Creek acquisition. The prior year period included one-time charges for legal, consulting, and professional fees of $12 million related to the Cedar Creek acquisition and $11 million in acquisition-related inventory step-up charges, BlueLinx said.
During the quarter, BlueLinx completed two sale-leaseback transactions and two sales of former distribution facilities as part of our real estate monetization and debt reduction efforts. The transactions resulted in gross proceeds of approximately $57 million, used to pay down debt.
BlueLinx says it services approximately 15,000 national, regional, and local dealers, as well as specialty distributors, national home centers, industrial, and manufactured housing customers in 40 states.
The bottom line: BlueLinx cuts down on first-half loss and turns a $6 million profit in teh second quarter.
What the CEO said: “We are pleased with our gross margin improvement in the quarter and we expect to achieve continued margin expansion as our business grows following our substantially completed integration of Cedar Creek. We continued to navigate deflationary conditions in commodity wood products and lower-than-expected single family housing starts through the first half of this year; however, we are seeing favorable trends that support our optimism for an improved second half compared to 2018. We are committed to driving further margin improvement by realizing operational efficiencies while keeping costs aligned with business levels and we see numerous advantages to leveraging our business platform to drive improvement in the second half of 2019,” said Mitch Lewis, president and CEO of BlueLinx.
Company info: The full second quarter 2019 report from BlueLinx can be accessed here.
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