New Threads Only:  Add to Google Reader or Homepage
New Threads & Replies:  Add to Google Reader or Homepage
Forums are for serious investors only. GuruFocus Forum Rules.

Forum List » Business News and Headlines
SEC Filings, Earing Reports, Press Releases
New Topic Search
Goto Thread: PreviousNext
Goto: Forum ListMessage ListNew TopicSearchLog In
BlueLinx Holdings Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 4, 2011 03:46PM

BlueLinx Holdings Inc. (BXC) filed Quarterly Report for the period ended 2011-10-01. Bluelinx Holdings has a market cap of $104.5 million; its shares were traded at around $1.69 .



Highlight of Business Operations:

Net sales. For the third quarter of fiscal 2011, net sales increased by 1.8%, or $8.2 million, to $472.9 million. Sales during the quarter were positively impacted by the planned shift to a higher margin product mix and a moderate increase in volume driven by an increase in housing starts. New home construction has a significant impact on our sales. Specialty sales, primarily consisting of roofing, specialty panels, insulation, moulding, engineered wood products, vinyl siding, composite decking and metal products (excluding rebar and remesh) increased by $32.8 million, or 12.4%, compared to the third quarter of fiscal 2010, primarily due to an increase in specialty unit volume of 11.4% and an increase in specialty products prices of 1.0%. Structural sales, including plywood, OSB, lumber and metal rebar, decreased by $26.5 million, or 12.4% from a year ago, primarily as a result of a decrease in unit volume of 14.0%, slightly offset by an increase in structural product prices of 1.6%.

Selling, general, and administrative expenses. Selling, general and administrative expenses were $54.5 million, or 11.5% of net sales, for the third quarter of fiscal 2011, compared to $54.1 million, or 11.6% of net sales, a $0.4 million increase compared to the third quarter of fiscal 2010. The increase in selling, general, and administrative expense included a $1.1 million net reduction in force charge, an increase in variable compensation of $0.6 million and fuel of $1.0 million. These increases were primarily offset by a $2.0 million gain on the modification of the lease for our corporate headquarters in Atlanta, GA and a $1.2 million gain from an insurance recovery on the Newtown, CT facility. Selling, general and administrative expenses for the third quarter of fiscal 2010 included $3.0 million of tender offer expenses, which was offset by a gain of $5.2 million from settlement of the class action lawsuit regarding oriented strand board in which we were a claimant.

Net sales. For the first nine months of fiscal 2011, net sales decreased by 5.0%, or $72.2 million, to $1.4 billion. Sales during the first nine months were negatively impacted by a decrease in housing starts and a decrease of 20.7% in structural sales, partially offset by an 8.4% increase in specialty sales. New home construction has a significant impact on our sales. Specialty sales, primarily consisting of roofing, specialty panels, insulation, moulding, engineered wood products, vinyl siding, composite decking and metal products (excluding rebar and remesh) increased by $65.3 million or 8.4% compared to the first nine months of fiscal 2010, reflecting a 7.7% increase in unit volume and a 0.7% increase in product prices. Structural sales, including plywood, OSB, lumber and metal rebar, decreased by $140.7 million, or 20.7% from a year ago, primarily due to a 19.2% decrease in unit volume and a 1.5% decrease in product prices.

Gross profit. Gross profit for the first nine months of fiscal 2011 was $162.2 million, or 11.9% of sales, compared to $166.3 million, or 11.6% of sales, in the prior year period. The decrease in gross profit dollars compared to the first nine months of fiscal 2010 was driven primarily by a decrease in structural sales of 20.7%, partially offset by an 8.4% increase in specialty sales. The decrease in structural sales is due to a 19.2% decrease in unit volume as a result of the reduced demand in 2011 compared to 2010, which primarily resulted from the expiration of the housing credit in April 2010, and a 1.5% reduction in product prices. The increase in specialty sales is due to a 0.7% increase in product prices and a 7.7% increase in unit volume, which resulted from our focus on growing our specialty sales. The gross margin percentage increased to 11.9% primarily due to a shift in sales mix resulting in an increase in the higher gross margin specialty product sales combined with increased margins in both specialty and structural products due to our efforts to manage gross margins across all product categories.

Selling, general, and administrative. Selling, general and administrative expenses for the first nine months of fiscal 2011 were $159.8 million, or 11.7% of net sales, compared to $167.7 million, or 11.7% of net sales, during the first nine months of fiscal 2010. The decrease in selling, general, and administrative expense included a $2.0 million gain on the modification of the lease for our corporate headquarters in Atlanta, GA, a $1.2 million gain from an insurance recovery on the Newtown, CT facility, and a $6.9 million gain on the sale of real estate in the first nine months of fiscal 2011. These decreases in selling, general, and administrative expenses were partially offset by a $1.3 million reduction in force charge. Selling, general and administrative expenses for the first nine months of fiscal 2010 included $3.0 million of tender offer expenses, which was offset by a gain of $5.2 million from settlement of the class action lawsuit regarding oriented strand board in which we were a claimant.

Read the The complete Report



Stocks Discussed: BXC,
Rate this post:




Sorry, only registered users may post in this forum.

Please Login if you have an account or Create a Free Account if you don't




Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial