BlueLinx Announces Third-Quarter Results

- Net Income Positive -- Up $1.4 million from Prior Year-

- Net Operating Income Up $2.4 million from Prior Year -

ATLANTA, Nov. 12, 2015 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading distributor of building products in North America, today reported financial results for the third quarter ended October 3, 2015.

Third Quarter Financial Highlights

• Adjusted EBITDA of $10.5 million 
  
• Net income of $0.6 million; up $1.4 million from prior year
  
• Selling, general, and administrative expenses down $6.2 million, or 11.1% from prior year
  
• Excess availability of $64.2 million as of October 3, 2015, an increase of $4.2 million over year-end 2014
  
  

“We were pleased to see positive net income even though our overall volumes were relatively flat.  Our focus on continuous improvement is producing results as we reduced our operating expenses and shifted our sales mix to distribution-friendly specialty products.  We continue to make progress in promoting the value-add service of BlueLinx as a wholesale distributor as the percentage of quarterly sales out of our warehouses was the highest in our history," said Mitch Lewis, President and Chief Executive Officer.

Susan O’Farrell, Senior Vice President and Chief Financial Officer added, “As previously discussed, we have engaged Eastdil Secured, L.L.C to assist us in refinancing our real estate mortgage in the next few months, well before the current loan's maturity in July 2016.  The $1 million monthly prepayment penalty ends on December 31, 2015, which makes our timing advantageous in terms of minimizing costly yield maintenance prepayment fees.”

Third Quarter Results Compared to Prior Year Period
The Company recorded net income of $0.6 million in the fiscal third quarter 2015, an increase of $1.4 million from fiscal third quarter 2014. Selling, general and administrative costs were reduced by $6.2 million year over year primarily in restructuring, personnel, and fuel expense categories.

Adjusted EBITDA for the fiscal third quarter 2015 was $10.5 million, versus Adjusted EBITDA of $11.1 million for the same period a year ago.  Gross margin in fiscal third quarter 2015 of 11.75% was flat compared to fiscal third quarter 2014. Gross margin for specialty products was up 24 basis points from the prior period. Gross profit in fiscal third quarter 2015 was $60.8 million, versus $64.6 million in fiscal third quarter 2014.

Revenues for the fiscal third quarter were $517.8 million, compared to $549.8 million in the fiscal third quarter 2014. Both sales and unit volumes were up in structural siding, specialty lumber, and specialty plywood product categories.

Liquidity
Year-to-date operating cash usage improved by $25.2 million compared to the same period in 2014, or 47.1%, mainly driven by improvements in working capital.  As of October 3, 2015, the Company had $64.2 million of excess availability under its asset-based revolving credit facilities. 

Conference Call
BlueLinx will host a conference call today at 10:00 a.m. Eastern Time, accompanied by a supporting slide presentation. Investors can listen to the conference call and view the accompanying slide presentation by going to the BlueLinx web site, www.BlueLinxCo.com, and selecting the conference link on the Investor Relations page. Investors will be able to access an archived recording of the conference call for one week by calling 404-537-3406, Conference ID# 57445998. The recording will be available two hours after the conference call has concluded. Investors also can access a recording of this call on the BlueLinx website, where a replay of the webcast will be available for 90 days.

Use of Non-GAAP Measures
BlueLinx reports its financial results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The Company also believes that presentation of certain non-GAAP measures, i.e., results excluding certain charges or other nonrecurring events, when appropriate, provides useful information for the understanding of its ongoing operations and enables investors to focus on period-over-period operating performance, without the impact of significant special items, and thereby enhances the user's overall understanding of the Company's current financial performance relative to past performance and provides a better baseline for modeling future earnings expectations. Any non-GAAP measures used herein are reconciled in the financial tables accompanying this news release. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results.

Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the Company. Adjusted EBITDA, as we define it, is an amount equal to net income (loss) plus interest expense and related items, income taxes, stock compensation, depreciation and amortization, further adjusted to exclude other non-cash items and certain other adjustments. Adjusted EBITDA is presented herein because we believe it is a useful supplement to cash flow from operations in understanding cash flows generated from operations that are available for debt service (interest and principal payments) and further investment in acquisitions. However, Adjusted EBITDA is not a presentation made in accordance with GAAP, and is not intended to present a superior measure of the financial condition from those determined under GAAP.

About BlueLinx Holdings Inc.
BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America.  The Company is headquartered in Atlanta, Georgia and operates its distribution business through its network of approximately 48 distribution centers. BlueLinx is traded on the New York Stock Exchange under the symbol BXC. Additional information about BlueLinx can be found on its website at www.BlueLinxCo.com.

Forward-looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our ability to return to profitability, and our guidance regarding anticipated financial results. 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 BlueLinx’ 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 prices, supply and/or demand for products that it distributes, general economic and business conditions in the United States; the activities of competitors; changes in significant operating expenses; changes in the availability of capital and interest rates; adverse weather patterns or conditions; acts of cyber intrusion; variations in the performance of the financial markets, including the credit markets; and other factors described in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the year ended January 3, 2015, 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, and changes in expectation or otherwise, except as required by law.

BlueLinx Contact Information:
Susan O’Farrell, SVP, CFO & Treasurer
BlueLinx Holdings Inc.
(770) 953-7000
investor.relations@bluelinxco.com