BlueLinx net sales tumble
The building products distributor narrowed its net loss.
Marietta, Ga.-based building products distributor BlueLinx reported third-quarter sales of $679 million, down from $860 million in the prior year quarter. The company narrowed its net loss to $7.0 million.
Wall street reacted negatively to the news — shares of BXC declined about 40% on Wednesday.
On the positive side of the ledger, the company recorded gross profit of $94 million, compared to $92 million a year ago. Also, the company reduced its debt by $92 million, and pointed to strong liquidity.
Third quarter 2019 included one-time charges for integration and restructuring costs of $4 million, and charges related to a partial multi-employer pension plan withdrawal of $1 million. The prior year period included a partial multi-employer pension plan withdrawal of $7 million, and acquisition related fees and restructuring costs of $5 million.
The company completed the acquisition of Cedar Creek in April of 2018.
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Bottom line: The company narrowed its net loss to $7.0 million, compared to a net loss of $9.9 million in the prior-year quarter.
What the CEO said: “We are pleased that we expanded gross margin again this quarter, both sequentially and on a year-over-year basis,” said CEO Mitch Lewis. “Gross margin was 13.8%, our highest gross margin since the acquisition of Cedar Creek, which led to the increase in gross profit over 2018 and our improved results. Our team is focused on profitable growth through providing our customers and suppliers excellent products and service while continuing our emphasis on operating our business more efficiently.”
More on BlueLinx: The company’s full third-quarter earnings release is here.
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