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Mar 28, 2020
BlueLinx Q1 2020 Earnings Report
BlueLinx's financial performance improved with increased net sales and gross margin, despite a net loss influenced by one-time charges.
Key Takeaways
BlueLinx reported a net sales increase to $662 million from $639 million year-over-year, with a gross margin improvement to 14.1% from 13.5%. The company experienced a net loss of $0.8 million, an improvement from the prior year's $6.7 million loss, although results were impacted by one-time charges. Adjusted EBITDA increased to $19.9 million from $16.6 million year-over-year.
Net sales increased to $662 million compared to $639 million year-over-year.
Gross margin improved to 14.1% compared to 13.5% year-over-year.
Net loss decreased to $0.8 million compared to a net loss of $6.7 million year-over-year.
Adjusted EBITDA increased to $19.9 million compared to $16.6 million year-over-year.
Forward Guidance
Due to the impact of COVID-19, the company implemented policies and procedures to protect its associates, serve its customers, and support its suppliers. The company expects these actions to reduce the company’s cost structure, strengthen its balance sheet, and preserve and increase liquidity.
Positive Outlook
- Business designated as “essential” in all states in which it operates.
- No significant supply chain disruptions experienced as a result of the COVID-19 pandemic.
- Implemented safety and hygiene protocols consistent with the Centers for Disease Control and Prevention (“CDC”) and local guidance.
- Company amended both its revolving credit facility and term loan facility to enhance liquidity and provide financial flexibility.
- Company entered the second quarter with excess availability and cash on hand of approximately $97 million.
Challenges Ahead
- Unpredictable impact of business and social restrictions stemming from the pandemic on the U.S. housing industry and broader economy.
- Many of the Company’s markets have experienced negative sales volume impacts when compared to the prior year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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