BlueLinx Announces First Quarter Results.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- BlueLinx Holdings BlueLinx Holdings NYSE: BXC is a Fortune 1000 company based in Atlanta, Georgia. It is the largest building products wholesaler in the country. External links
See: New York Stock Exchange : BXC BXC Band Cross-Connect ), a leading distributor of building products in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , today reported financial results for the first fiscal quarter ended April 2, 2005. Revenues for the first quarter were $1.35 billion, representing a 5.6% increase over the $1.28 billion reported for the first quarter ended April 3, 2004. This increase was driven by 3.4% growth in unit volume, primarily within structural products, and 2.2% growth in price, primarily in specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. products. Net income for the first quarter was $8.4 million, or $0.28 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $27.3 million, or $0.91 per diluted share, in the comparable period last year. For purposes of comparison, the prior year first quarter statement of operations See Income statement. is presented on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, as if BlueLinx had been a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." , publicly-traded entity since December December: see month. 29, 2002. Gross profit for the first quarter was $119.3 million compared to $155.9 million in the prior year period. Gross margin fell to 8.8% from 12.2% for the same period last year. In anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of falling structural product prices during the quarter, the company distributed a greater proportion of structural product through the direct channel than during the same period last year in order to reduce its inventory risk. This resulted in a decline in the company's structural product gross margins. In addition, gross margins on certain specialty products such as metal and moulding were below last year's levels. For the first quarter of fiscal 2004, gross margin was significantly above the company's historical long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. average gross margin due to inventory profits associated with rapidly escalating structural product and metal prices. Selling, general & administrative expenses in the first quarter of fiscal 2005 declined $6.0 million to $91.4 million reflecting reduced variable expenses, including commission expenses, incentive compensation expenses, and materials handling Materials handling The loading, moving, and unloading of materials. The hundreds of different ways of handling materials are generally classified according to the type of equipment used. and warehouse expenses associated with distributing more product through the direct channel. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of fiscal 2005 was $23.6 million compared to $54.7 million in the first quarter of 2004. As Reported Results As reported sales for the quarter ended April 2, 2005 were $1.35 billion compared to $1.28 billion for the same period last year. Gross profit for the first quarter declined to $119.3 million from $154.1 million in the prior-year period primarily due to a decrease in gross margin for structural products, metal products and certain specialty products. Operating income was $23.6 million versus $55.0 million in the first quarter of 2004, reflecting lower gross profit partially offset by lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Net income for the first quarter of 2005 was $8.4 million compared to net income of $34.0 million for the first quarter of fiscal 2004. The company's net income of $34.0 million for the first quarter of 2004 was achieved as a division of Georgia-Pacific
Georgia-Pacific LLC. is an American pulp and paper company based in Atlanta, Georgia, and is one of the world's leading manufacturers and distributors of tissue, pulp, paper, packaging, Corporation and did not include interest expense and certain corporate overhead expenses that are included in the results for the quarter ended April 2, 2005. During the first quarter the company used $81.5 million in cash in operating activities to support seasonal increases in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed and inventories offset somewhat by a corresponding increase in payables Payables Related: Accounts payable . This compares to $204 million of net cash used by operations in the first quarter of 2004. Cash from financing activities totaled $86.5 million, primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the draw down on the company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility to support seasonal working capital increases. This compares to $205 million of cash from investing activities in the first quarter of 2004. During the first quarter of 2004, the division was financed by Georgia-Pacific Corporation. "BlueLinx accomplished a great deal during the first quarter, advancing our organic growth strategy to increase unit volume by adding profitable customers, particularly in the under-represented industrial segment, continuing to enlarge TO ENLARGE. To extend; as, to enlarge a rule to plead, is to extend the time during which a defendant may plead. To enlarge, means also to set at liberty; as, the prisoner was enlarged on giving bail. the vendor base and increasing customers' share of purchases. Our nationwide presence, broad product offering, diverse customer and vendor base create advantages for us in the building products supply chain that we leverage to deliver value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. solutions for customers and vendors alike," said Chuck chuck a hand grip to be attached to intramedullary pins to enable the surgeon to rotate or drive them into bone. McElrea, chief executive officer. "Anticipating that structural product prices would decline during the quarter, based on a number of market indicators, we took decisive action to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the risk of
holding inventory by increasing the selling velocity of price sensitive
products. Our business model has built-in built-in - (Or "primitive") A built-in function or operator is one provided by the lowest level of a language implementation. This usually means it is not possible (or efficient) to express it in the language itself. correcting mechanisms to
adjust variable expenses to gross margin fluctuations."
Mr. McElrea concluded, "Our strategy to gain market share is showing results, and we remain sharply focused on executing strategic initiatives to drive unit volume growth and productivity to achieve operational margin leverage and improve working capital utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be ." Dividend The BlueLinx Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a $0.125 dividend on the company's common shares for the quarter ended April 2, 2005, payable on June June: see month. 30, 2005 to shareholders of record on June 15, 2005. Basis of Presentation This release provides unaudited financial statements for the first quarter of 2005 and the first quarter of 2004. For purposes of comparison, the statement of operations for the first quarter ended April 3, 2004 is provided on both an as reported and a pro forma basis. Last year's pro forma results reflect the acquisition by BlueLinx of the real estate and operating assets Operating Assets Another term for working capital. of the building products distribution division of Georgia-Pacific and the Company's subsequent IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. on December 14, 2004. Results have been adjusted to reflect the acquisition transaction, mortgage refinancing Refinancing An extension and/or increase in amount of existing debt. transaction, and offering transaction, and are presented as if BlueLinx Holdings had been a standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. entity since December 29, 2002. On a pro forma basis diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is calculated using 30.2 million shares. Detailed reconciliations of all pro forma adjustments are included in a presentation, to be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with this release, which can be found on the BlueLinx web site at www.BlueLinxCo.com. Conference Call BlueLinx will host a conference call today at 10:00 a.m. Eastern Time accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by a supporting slide presentation. Investors may listen to the conference call and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the presentation by going to the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of the BlueLinx web site, at www.BlueLinxCo.com. Investors will also be able to access an encore recording of the conference call for one week by calling 706-645-9291, Conference ID# 5587165. The recording will be available two hours after the conference call has concluded. Investors may, alternatively, access a recording of this call on the BlueLinx web site - where a replay of the webcast will be available for 90 days. About BlueLinx Holdings Inc. Headquartered in Atlanta, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , BlueLinx Holdings Inc., operating through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. BlueLinx Corporation, is a leading distributor of building products in North America. Employing more than 3,400 people in North America, BlueLinx offers 10,000 products from over 750 suppliers to service more than 11,700 customers nationwide, including dealers, industrial manufacturers, manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected producers and home improvement retailers. The Company operates its distribution business from sales centers in Atlanta and Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , and its network of more than 60 warehouses. Additional information about BlueLinx can be found on its web site at www.BlueLinxCo.com. Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by BlueLinx to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors outside of its control, that may cause its business, strategy or actual results to differ materially from the forward-looking statements. These risks and uncertainties may include, among other things: changes in the supply and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. demand for products which we distribute; the activities of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. ; changes in significant operating expenses; changes in the availability of capital; the ability to identify acquisition opportunities and effectively and cost-efficiently integrate acquisitions; general economic and business conditions in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. or terrorist activities; variations in the performance of the financial markets; and other factors described in the "Risk Factors" section in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January January: see month. 1, 2005, and in its periodic reports filed with the Securities and Exchange Commission from time to time. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. BlueLinx undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
BlueLinx Holdings Inc.
As Reported Statement of Operations 1st Quarter 2005 and Proforma
Statement of Operations 1st Quarter 2004
Quarters Ended
-----------------------
BlueLinx BlueLinx
As Reported Proforma
------------ ----------
April 2, April 3,
2005 2004
------------ ----------
(in thousands, except
per share data)
Sales:
Net sales $1,351,619 $1,279,882
Cost of sales 1,232,291 1,123,934
------------ ----------
Gross profit 119,328 155,948
------------ ----------
Operating expenses:
Selling, general, and administrative 91,435 97,373
Depreciation and amortization 4,243 3,836
------------ ----------
Total operating expenses 95,678 101,209
------------ ----------
Operating income 23,650 54,739
Non-operating expenses:
Interest expense 9,334 8,363
Other expense, net 129 306
------------ ----------
Income before provision
for income taxes 14,187 46,070
Provision for income taxes 5,769 18,751
------------ ----------
Net income $ 8,418 $ 27,319
============ ==========
Basic weighted average number of common shares
outstanding 30,155 30,185
============ ==========
Basic net income per share applicable to common
stock $ 0.28 $ 0.91
============ ==========
Diluted weighted average number of common
shares outstanding 30,458 30,185
============ ==========
Diluted net income per share applicable to
common stock $ 0.28 $ 0.91
============ ==========
BlueLinx Holdings Inc.
As Reported Statements of Operations 1st Quarter 2005 and 1st Quarter
2004
Quarters Ended
BlueLinx BlueLinx
As Reported As Reported
(Combined)
----------- -----------
April 2, April 3,
2005 2004
----------- -----------
(in thousands, except
per share data)
Sales:
Net sales $1,351,619 $1,279,882
Cost of sales 1,232,291 1,125,784
----------- -----------
Gross profit 119,328 154,098
----------- -----------
Operating expenses:
Selling, general, and administrative 91,435 94,681
Depreciation and amortization 4,243 4,431
----------- -----------
Total operating expenses 95,678 99,112
----------- -----------
Operating income 23,650 54,986
Non-operating expenses:
Interest expense 9,334 -
Other expense, net 129 306
----------- -----------
Income before provision
for income taxes 14,187 54,680
Provision for income taxes 5,769 20,717
----------- -----------
Net income $ 8,418 $ 33,963
----------- -----------
Basic weighted average number of common shares
outstanding 30,155
===========
Basic net income per share applicable to common
stock $ 0.28
===========
Diluted weighted average number of common
shares outstanding 30,458
===========
Diluted net income per share applicable to
common stock $ 0.28
===========
Dividends declared per share of common stock $ 0.125
===========
BlueLinx Holdings Inc.
As Reported Balance Sheets for Periods Ending April 2, 2005 and
January 1, 2005
----------- -----------
BlueLinx BlueLinx
As Reported As Reported
----------- -----------
April 2, January 1,
2005 2005
----------- -----------
(in thousands)
Assets:
Current assets:
Cash $ 18,706 $ 15,572
Receivables 499,423 363,688
Inventories 517,913 500,231
Deferred income taxes 7,151 6,122
Other current assets 35,241 34,203
----------- -----------
Total current assets 1,078,434 919,816
----------- -----------
Property, plant, and equipment:
Land and land improvements 55,573 55,573
Buildings 93,133 93,133
Machinery and equipment 46,752 41,063
Construction in progress 1,414 5,089
----------- -----------
Property, plant, and equipment, at cost 196,872 194,858
Accumulated depreciation (11,267) (7,880)
----------- -----------
Property, plant, and equipment, net 185,605 186,978
Other non-current assets 29,747 30,268
----------- -----------
Total assets $1,293,786 $1,137,062
=========== ===========
Liabilities :
Current liabilities:
Accounts payable $ 338,358 $ 270,271
Bank overdrafts 38,557 32,033
Accrued compensation 9,303 18,292
Current maturities of long-term debt 153,247 94,103
Other current liabilities 13,091 13,142
----------- -----------
Total current liabilities 552,556 427,841
----------- -----------
Noncurrent liabilities:
Long-term debt 574,000 558,000
Deferred income taxes 667 740
Other long-term liabilities 11,049 8,989
----------- -----------
Total liabilities 1,138,272 995,570
----------- -----------
Shareholders' Equity:
Common stock 302 295
Additional paid in capital 130,733 121,306
Accumulated other comprehensive income (844) (789)
Retained earnings 25,323 20,680
----------- -----------
Total shareholders' equity 155,514 141,492
----------- -----------
----------- -----------
Total liabilities and equity $1,293,786 $1,137,062
=========== ===========
BlueLinx Holdings Inc.
As Reported Statements of Cash Flows for Periods Ending April 2, 2005
and April 3, 2004
Quarters Ended
BlueLinx BlueLinx
As Reported As Reported
(Combined)
----------- -----------
April 2, April 3,
2005 2004
----------- -----------
(in thousands)
Cash flows from operating activities:
Net income $ 8,418 $ 33,963
Adjustments to reconcile net income
to cash used in operations:
Depreciation and amortization 4,243 4,431
Amortization of debt issue costs 1,005 -
Deferred income tax provision (benefit) (1,102) 4,173
Changes in assets and liabilities:
Receivables (135,735) (203,726)
Inventories (17,682) (118,904)
Accounts payable 68,087 103,568
Changes in other working capital (9,465) (25,793)
Other 778 (1,711)
----------- -----------
Net cash used in operating activities $ (81,453) $ (203,999)
----------- -----------
Cash flows from investing activities:
Property, plant, and equipment investments (2,048) (1,152)
Proceeds from sale of assets 140 203
----------- -----------
Cash used in investing activities $ (1,908) $ (949)
----------- -----------
Cash flows from financing activities:
Net transactions with Georgia-Pacific
Corporation - 211,098
Issuance of common stock, net 8,600 -
Net increase in revolving credit facility 75,144 -
Increase (decrease) in bank overdrafts 6,524 (6,432)
Common dividends paid (3,773) -
----------- -----------
Net cash provided by financing activities $ 86,495 $ 204,666
----------- -----------
Increase (decrease) in cash 3,134 (282)
Balance, beginning of period 15,572 506
----------- -----------
Balance, end of period $ 18,706 $ 224
=========== ===========
Supplemental Cash Flow Information
Income taxes paid for the period $ 10,592 $ 16,544
----------- -----------
Interest paid during the period $ 8,291 $ -
=========== ===========
BlueLinx Holdings Inc.
As Reported Statements of Operations 1st Quarter 2005 and 1st Quarter
2004
As Reported Reconciliation
Distribution BlueLinx
BlueLinx BlueLinx Division As Reported
As Reported As Reported As Reported (Combined)
----------- ----------- ------------ -----------
Period from Period from Period from Period from
January 2, Inception January 4, January 4,
2005 to (March 8, 2004 to 2004 to
April 2, 2004) to April 3, April 3,
April 3,
2005 2004 2004 2004
---------- ----------- ------------ -----------
(in thousands, except per share data)
Sales:
Net sales $1,351,619 $ - $ 1,279,882 $1,279,882
Cost of sales 1,232,291 - 1,125,784 1,125,784
---------- ----------- ------------ -----------
Gross profit 119,328 - 154,098 154,098
---------- ----------- ------------ -----------
Operating expenses:
Selling, general,
and administrative 91,435 584 94,097 94,681
Depreciation and
amortization 4,243 - 4,431 4,431
----------- ----------- ------------ -----------
Total operating
expenses 95,678 584 98,528 99,112
---------- ----------- ------------ -----------
Operating income 23,650 (584) 55,570 54,986
Non-operating
expenses:
Interest expense 9,334 - - -
Other expense net 129 - 306 306
---------- ----------- ------------ -----------
Income before income
taxes 14,187 (584) 55,264 54,680
Provision for income
taxes 5,769 (228) 20,945 20,717
---------- ----------- ------------ -----------
Net income $ 8,418 $ (356) $ 34,319 $ 33,963
========== =========== ============ ===========
Basic weighted average
number of common
shares outstanding 30,155
==========
Basic net income per
share applicable to
common stock $ 0.28
==========
Diluted weighted
average number of
common shares
outstanding 30,458
==========
Diluted net income per
share applicable to
common stock $ 0.28
==========
Dividends declared per
share of common
stock $ 0.125
==========
BlueLinx Holdings Inc.
As Reported Statements of Cash Flows for Periods Ending April 2, 2005
and April 3, 2004
As Reported Reconciliation
Distribution BlueLinx
BlueLinx BlueLinx Division As Reported
As Reported As Reported As Reported (Combined)
----------- ----------- ----------- -----------
Period from Period from Period from Period from
January 2, Inception January 4, Inception
2005 to (March 8, 2004 to (March 8,
April 2, 2004) to April 3, 2004) to
April 3, April 3,
2005 2004 2004 2004
---------- ----------- ----------- -----------
(in thousands)
Cash flows from
operating activities:
Net income (loss) $ 8,418 $ (356) $ 34,319 $ 33,963
Adjustments to
reconcile net income
to cash used in
operations:
Depreciation and
amortization 4,243 - 4,431 4,431
Amortization of
debt issue costs 1,005 - - -
Deferred income tax
provision
(benefit) (1,102) (228) 4,401 4,173
Changes in assets
and liabilities:
Receivables (135,735) - (203,726) (203,726)
Inventories (17,682) - (118,904) (118,904)
Accounts payable 68,087 3,267 100,301 103,568
Changes in other
working capital (9,465) (2,683) (23,110) (25,793)
Other 778 - (1,711) (1,711)
---------- ----------- ----------- -----------
Net cash used in
operating activities $ (81,453) $ - $ (203,999) $ (203,999)
---------- ----------- ----------- -----------
Cash flows from
investing activities:
Property, plant, and
equipment investments (2,048) - (1,152) (1,152)
Proceeds from sale of
assets 140 - 203 203
---------- ----------- ----------- -----------
Cash used in investing
activities $ (1,908) $ - $ (949) $ (949)
---------- ----------- ----------- -----------
Cash flows from
financing activities:
Net transactions with
Georgia-Pacific
Corporation - - 211,098 211,098
Issuance of common
stock, net 8,600 - - -
Net increase in
revolving credit
facility 75,144 - - -
Increase (decrease) in
bank overdrafts 6,524 - (6,432) (6,432)
Common dividends paid (3,773) -
---------- ----------- ----------- -----------
Net cash provided by
financing activities $ 86,495 $ - $ 204,666 $ 204,666
---------- ----------- ----------- -----------
Increase (decrease) in
cash 3,134 - (282) (282)
Balance, beginning of
period 15,572 - 506 506
---------- ----------- ----------- -----------
Balance, end of period $ 18,706 $ - $ 224 $ 224
========== =========== =========== ===========
Supplemental Cash Flow
Information
Income taxes paid for
the period $ 10,592 $ - $ 16,544 $ 16,544
---------- ----------- ----------- -----------
Interest paid during
the period $ 8,291 $ - $ - $ -
========== =========== =========== ===========
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion