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BlueLinx Holdings Inc. Reports Operating Results (10-Q)

August 02, 2012 | About:
10qk

10qk

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BlueLinx Holdings Inc. (BXC) filed Quarterly Report for the period ended 2012-06-30.

Bluelinx Holdings Inc. has a market cap of $153.5 million; its shares were traded at around $2.1 with and P/S ratio of 0.1.

Highlight of Business Operations:

Net sales. For the second quarter of fiscal 2012, net sales increased by 3.2%, or $16.2 million, to $517.0 million. Sales during the quarter were positively impacted by an increase in housing starts. New home construction normally has a significant impact on our sales. However, we believe, mild weather resulted in the pull forward of sales into the first quarter of fiscal 2012, offsetting demand associated with higher housing starts. Structural sales increased by $23.1 million, or 12.0%, compared to the second quarter of fiscal 2011, primarily due to an increase in structural unit volume and product prices of 0.4% and 11.6%, respectively. These increases were partially offset by a decrease in specialty sales of $2.0 million, or 0.6%, from a year ago, primarily as a result of a decrease in specialty unit volume of 2.3%, partially off-set by an increase in product prices of 1.7%.

Operating income (loss). Operating income for the second quarter of fiscal 2012 was $3.9 million, or 0.7% of sales, compared to operating loss of $(1.8) million, or (0.4)% of sales, in the second quarter of fiscal 2011, reflecting an increase in gross profit dollars of $5.6 million and a $0.4 million decrease in depreciation expense, as a result of factors described above. This change is partially offset by an increase in selling, general, and administrative expenses of $0.3 million.

Net sales. For the first six months of fiscal 2012, net sales increased by 8.9%, or $79.3 million, to $970.7 million. Sales during the first six months were positively impacted by an increase in housing starts. New home construction has a significant impact on our sales. Specialty sales increased by $35.4 million or 6.5% compared to the first six months of fiscal 2011, reflecting a 3.9% increase in unit volume and a 2.6% increase in prices. Structural sales increased by $45.2 million, or 12.8% from a year ago, primarily due to a 4.5% increase in unit volume and a 8.3% increase in product prices.

Gross profit. Gross profit for the first six months of fiscal 2012 was $117.4 million, or 12.1% of sales, compared to $103.9 million, or 11.7% of sales, in the prior year period. The increase in gross profit dollars compared to the first six months of fiscal 2011 was driven by an increase in unit volume of 4.2% and an increase in product prices of 4.7% due to the Companys efforts to improve gross margin coupled with commodity price inflation. The gross margin percentage increased by 40 basis points to 12.1%, 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 six months of fiscal 2012 were $113.2 million, or 11.7% of net sales, compared to $105.2 million, or 11.8% of net sales, during the first six months of fiscal 2011. The increase in selling, general, and administrative expenses primarily was due to the inclusion of a $7.2 million gain on sale of real estate in the first six months of fiscal 2011 compared to a $0.5 million gain on the sale of real estate and a $0.5 million gain related to the insurance settlement for our Newtown, Connecticut facility in the first six months of 2012. After considering the effect of the real estate gains on each period, selling, general and administrative expense as a percentage of net sales decreased due to a decrease in payroll and a decrease in fuel as a percentage of net sales, partially offset by an increase in incentives.

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