News

Sales soar, costs rise for BlueLinx

Q2 Cedar Creek integration costs take a bite out of earnings.

BY HBSDealer Staff

BlueLinx reported net sales of $893.0 million for the second quarter of 2018, up 88.4% from net sales of $474 million in the second quarter of 2017.

The Atlanta, Ga.-based building products distributor also reported a second quarter net loss of $8.6 million compared to a net income of $3.2 million in the same period a year ago. For the first six months of the year, BlueLinx reported a $22 million loss, swinging from a net income of $3.8 million in the first half of 2017.

BlueLinx CEO Mitch Lewis noted that the company was still in the beginning stages of integrating Cedar Creek into its portfolio, and cost savings are on the horizon.

“While we are still early in our 18-month integration process, based on specific opportunities we have identified and actions taken to date, we are increasingly confident in our ability to generate at least $50 million in annual synergies,” Lewis said.

Wall Street reacted positively to the earnings report, sending shares of BXC up almost 20% on Thursday.

For the first six months of 2018, BlueLinx posted net sales of $1.3 billion, a 47.4% increase from net sales of $902.6 million in the corresponding period last year.

During the second quarter BlueLinx incurred one-time charges of $11.6 million for legal, professional and other integration costs related to the acquisition of Cedar Creek, completed on April 13.

As a result of the increase in the company’s stock price following the acquisition of Cedar Creek, BlueLinx incurred charges in the second quarter associated with compensation expense from stock appreciation rights and other share-based compensation of $3.8 million. The company said it will pay out the expense in 2018 and 2019.

 

 

 

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HBSDealer Stock Watch: Day for the Bears

BY HBSDealer Staff
Hardware and building supply stocks generally retreated on Wednesday. Of the 30 stocks tracked below, 23 finished the day lower. The biggest mover was BECN, down 14%.
Company Price Change
AWI (Armstrong) 68.05 -2.37%
BCC (Boise) 44.00 N.C.
BECN (Beacon) 36.54 -13.98%
BLDR (Builders FS) 17.51 -1.79%
BMCH (BMC Stock) 22.35 -0.89%
BXC (BlueLinx) 32.39 -2.09%
CENT (Central Garden) 41.46 -2.03%
DE (Deere & Co.) 144.81 -0.90%
DOOR (Masonite) 65.50 -1.73%
EXP (Eagle) 99.08 -1.27%
FAST (Fastenal) 57.79 +0.87%
HBP (Huttig) 5.14 +0.59%
HD (Home Depot) 198.02 +0.49%
JELD (Jeld-Wen) 23.71 -9.95%
LL (Lumber Liquidators) 19.02 -1.40%
LOW (Lowe’s) 98.87 +0.09%
LPX (Louisiana-Pacific) 28.62 -0.56%
MAS (Masco) 39.22 -1.23%
PPG (PPG) 109.25 -0.65%
SHW (Sherwin-Williams) 443.66 -0.10%
SMG (Scotts Miracle-Gro) 75.97 -1.59%
SSD (Simpson) 72.79 -1.03%
SWK (Stanley) 143.24 -1.28%
TREX (Trex) 77.78 -1.82%
TSCO (Tractor Supply) 81.27 +1.61%
TTC (Toro) 59.91 -0.63%
UFPI (Universal Forest) 36.62 -0.46%
USG (USG) 43.21 -0.09%
WDFC (WD-40) 165.50 -0.48%
WY (Weyerhaeuser) 34.33 +0.20%
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Thermo-stats on the rise

Smart and connected thermostat sales are expected to grow significantly.

BY HBSDealer Staff

Look for prices to drop significantly in the high-end thermostat category. According to a report from the Freedonia Group, rapidly declining prices will be the most significant driver of unit sales of smart and connected thermostats.

The group says U.S. demand for smart and connected thermostats is forecast to increase 23% per year through 2022 to 14.5 million units. Ramped up efforts by utility companies, homebuilders, and HVAC contractors to promote these products based on their cost- and energy-saving benefits will also help sales.

The smart and connected thermostat market is expected to transition to become more replacement-oriented between 2022 and 2025, which will correspond with declining sales. By then, most households interested in these products will have purchased one.

The above findings were shared by the Cleveland-based Freedonia Group to help build awareness for its report: the recently published “Smart & Connected Thermostats in the U.S.”

The report also pointed to the leading industry players in the field: Honeywell, ecobee and Nest Labs (Google).

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B.WOODWARD says:
Aug-10-2018 07:50 am

While I believe the report is right about prices dropping on current product what will keep this category active is the fact thermostats will become much more than just HVAC controls. The future will see multi-functions for many areas of the home outside of the traditional air and temperature control. More disruption ahead.....

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