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BlueLinx Holdings Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 6, 2011 07:20PM
BlueLinx Holdings Inc. (BXC) filed Quarterly Report for the period ended 2011-04-02. Bluelinx Holdings Inc. has a market cap of $115 million; its shares were traded at around $3.46 with and P/S ratio of 0.1.
Highlight of Business Operations:
Net sales. For the first quarter of fiscal 2011, net sales decreased by 9.4%, or $40.4 million, to $390.6 million. Sales during the quarter decreased as compared to the first quarter of fiscal 2010, due to severe winter weather and the fact that first quarter of 2010 sales were positively affected by the first-time homebuyer U.S. income tax credit. Specialty sales, primarily consisting of roofing, specialty panels, insulation, moulding, engineered wood products, vinyl siding, outdoor living and metal products (excluding rebar and remesh) increased by $2.0 million, or less than 1.0%, compared to the first quarter of fiscal 2010, primarily due to a 1.0% increase in specialty products prices offset by a 0.2% decrease in unit volume. Structural sales, including plywood, OSB, lumber and metal rebar, decreased by $42 million, or 20.6% from a year ago, as a result of a decrease in unit volume of 25.2% offset by an increase in structural product prices of 4.4%.
Selling, general, and administrative. Selling, general and administrative expenses for the first quarter of fiscal 2011 were $48.4 million, or 12.4% of net sales, compared to $56.5 million, or 13.1% of net sales, during the first quarter of fiscal 2010. The $8.1 million decline in selling, general, and administrative expenses included $7.2 million in real estate gains. The remaining factors resulting in the decline are related to reductions in incentives of $0.5 million and third party freight costs of $0.4 million.
Depreciation and amortization. Depreciation and amortization expense totaled $2.9 million for the first quarter of fiscal 2011, compared to $3.7 million for the first quarter of fiscal 2010. The $0.8 million decrease in depreciation and amortization is primarily related to a portion of our property and equipment becoming fully depreciated during the first quarter of 2011 coupled with capital expenditures not keeping pace with our historical depreciation of property and equipment.
Operating loss. Operating loss for the first quarter of fiscal 2011 was $5.1 million, or 1.3% of sales, compared to an operating loss of $8.0 million, or 1.9% of sales, in the first quarter of fiscal 2010, reflecting a $6.0 million decrease in gross profit and an $8.9 million decrease in operating expense.
Interest expense, net. Interest expense totaled $9.0 million for the first quarter of fiscal 2011 compared to $7.3 million for the first quarter of fiscal 2010. The $1.7 million increase is largely due to an increase of debt over the same period. Interest expense related to our revolving credit facility and mortgage was $4.0 million and $4.6 million, respectively, during this period. During the first quarter of fiscal 2010, interest expense related to our revolving credit facility and mortgage was $2.8 million and $4.6 million, respectively. In addition, interest expense included $0.4 million and $(0.1) million of debt issue cost amortization for the first quarter of fiscal 2011 and the first quarter of fiscal 2010, respectively.
Changes associated with ineffective interest rate swap. Changes associated with the ineffective interest rate swap totaled $(1.6) million in the first quarter of fiscal 2011 compared to $(0.8) million for the first quarter of fiscal 2010. The $0.8 million increase is primarily due to a $0.9 increase in the gain associated with the change in the swaps fair value.
Stocks Discussed: BXC,