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BlueLinx Holdings Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: November 1, 2012 05:04PM

BlueLinx Holdings Inc. (BXC) filed Quarterly Report for the period ended 2012-09-29. Bluelinx Holdings, Inc. has a market cap of $129.2 million; its shares were traded at around $2.25 with and P/S ratio of 0.1.



Highlight of Business Operations:

Net sales. For the third quarter of fiscal 2012, net sales increased by 5.1%, or $23.9 million, to $496.8 million. Sales during the quarter were positively impacted by an increase in housing starts. New home construction has a significant impact on our sales. Structural sales increased by $24.8 million, or 13.3%, compared to the third quarter of fiscal 2011, primarily due to an increase in structural product prices of 16.6%, partially offset by a decrease in unit volumes of 3.3%. The increase in structural sales was partially offset by a decrease in specialty sales of $2.2 million, or 0.8%, from a year ago, primarily as a result of a decrease in specialty unit volume of 1.0% partially offset by an increase in product prices of 0.3%.

Selling, general, and administrative expenses. Selling, general and administrative expenses were $48.2 million, or 9.7% of net sales, for the third quarter of fiscal 2012, compared to $54.5 million, or 11.5% of net sales, a $6.4 million decrease compared to the third quarter of fiscal 2011. This decrease in selling, general, and administrative expenses includes a gain on the sale of real estate in the third quarter of fiscal 2012 of $9.2 million. In comparison, the third quarter of fiscal 2011 includes $2.1 million of net gains consisting of a $2.0 million gain on the modification of the lease for our corporate headquarters in Atlanta, Georgia and a $1.2 million gain from an insurance recovery on the Newtown, Connecticut facility partially offset by a $1.1 million reduction in force charge. After considering the effects of the items noted above, selling, general and administrative expense decreased as a percentage of sales from 12.0% in the third quarter of fiscal 2011 to 11.5% in the third quarter of fiscal 2012. The decrease in selling, general and administrative expense as a percentage of net sales between the third quarter of fiscal 2012 compared to the third quarter of fiscal 2011is due to a reduction in fuel, payroll, bad debt expense and other management fees. These changes were partially offset by an increase in employee incentives and rental expense and a decrease in backhaul income. For more information on the insurance settlement, see “Note 2. – Summary of Significant Accounting Policies – Impairment of Long-Lived Assets” in the Notes to Consolidated Financial Statements.

Net sales. For the first nine months of fiscal 2012, net sales increased by 7.6%, or $103.2 million, to $1,467.5 million. Sales during the first nine months were positively impacted by an increase in housing starts. New home construction has a significant impact on our sales. Structural sales increased by $70.0 million, or 13.0% from a year ago, primarily due to a 10.9% increase in product prices and a 2.1% increase in unit volume. Specialty sales increased by $33.1 million or 4.0% compared to the first nine months of fiscal 2011, reflecting a 2.2% increase in unit volume and a 1.8% increase in prices.

Gross profit. Gross profit for the first nine months of fiscal 2012 was $178.0 million, or 12.1% of sales, compared to $162.2 million, or 11.9% of sales, in the prior year period. The increase in gross profit dollars compared to the first nine months of fiscal 2011 was driven by an increase in unit volume of 2.2% and an increase in product prices of 5.4%, due to the Company s efforts to improve gross margin coupled with commodity price inflation. The gross margin percentage increased by 20 basis points to 12.1% for the nine months ended September 29, 2012 from 11.9% for the nine months ended October 1, 2011, primarily due to the above factors and an increase in sales through our warehouse channel, which has a higher gross margin.

Selling, general, and administrative. Selling, general and administrative expenses for the first nine months of fiscal 2012 were $161.4 million, or 11.0% of net sales, compared to $159.8 million, or 11.7% of net sales, during the first nine months of fiscal 2011. This increase in selling, general, and administrative expenses includes a gain on the sale of real estate in the first nine months of fiscal 2012 of $9.7 million and a $0.5 million gain from an insurance recovery. In comparison, the first nine months of fiscal 2011 includes $8.8 million of net gains consisting of a $6.9 million gain on the sale of real estate, a $2.0 million gain on the modification of the lease for our corporate headquarters in Atlanta, Georgia and a $1.2 million gain from an insurance recovery on the Newtown, Connecticut facility partially offset by a $1.3 million reduction in force charge. After considering the effect of the items noted above, selling, general and administrative expense as a percentage of net sales decreased between the first nine months of fiscal 2012 compared to the first nine months of fiscal 2011 from 12.4% to 11.7%. This decrease was due to a decrease in payroll and payroll related costs as a percent of sales and a decrease in fuel costs. This decrease reflects our efforts to improve our logistics efficiency. For more information on the insurance settlement, see “Note 2. – Summary of Significant Accounting Policies – Impairment of Long-Lived Assets” in the Notes to Consolidated Financial Statements.

Read the The complete Report



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