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Jun 27, 2020
BlueLinx Q2 2020 Earnings Report
Reported financial results with flat net sales and gross margin improvement.
Key Takeaways
BlueLinx Holdings Inc. reported relatively flat net sales compared to the prior year, with a gross margin improvement and an increase in Adjusted EBITDA. The company's operational improvements and actions taken in response to the COVID-19 pandemic contributed to the successful financial results.
Net sales were $699 million, compared to $706 million in the prior year period.
Gross margin increased 110 basis points to 14.4%, compared to 13.3% in the prior year period.
Net income was $7 million, compared to $6 million in the prior year period.
Adjusted EBITDA was $31 million, compared to $25 million in the prior year period.
Forward Guidance
Company's sales volumes were positive relative to the prior year period during July, with increases in sales volume in both the structural and specialty categories. The Company also experienced July gross margins above its historical averages.
Positive Outlook
- Sales volumes were positive relative to the prior year period during July.
- Increases in sales volume in both the structural and specialty categories.
- Experienced July gross margins above its historical averages.
- Market conditions have improved with increases in single family housing starts.
- The Builder’s Confidence Index returned to pre COVID-19 levels, and continued strong commodity markets
Challenges Ahead
- Infection, hospitalization and mortality rates from COVID-19 remain significant.
- The trajectory of the virus over the remainder of 2020 and beyond is unpredictable.
- The pandemic, and business and social restrictions stemming from the pandemic, will continue to affect the broader economy.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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