BlueLinx Holdings Inc., the Atlanta-based distributor whose majority owner wants to buy the rest of the company, reported today a net loss of $3.4 million for the second quarter, swinging from a year-earlier profit of $600,000. That loss occurred despite a 27.7% increase in revenues to $540.8 million.
The profit figures aren't totally comparable, as BlueLinx posted $19.4 million in pretax gains from "significant special items" in 2009's second quarter, in particular the $17.4 million gain it recorded as a result of the early cancellation of its Master Supply Agreement with Georgia-Pacific. (Story)
For April through June of this year, structural product sales increased 45.1% from the year-earlier period while specialty product sales grew 14.4%.
"The second-quarter business climate was characterized by unprecedented volatility in the structural wood-based products market and a sluggish recovery of demand for products related to new home construction." BlueLinx President and CEO George Judd said in a statement. "Despite this challenging environment, we performed well as we grew our unit volume by 11.9% and increased our gross profit by 32.8%. We also remained focused on cost management reducing our selling, general and administrative expenses to 10.6% of sales.
It cost BlueLinx $476.6 million to acquire and sell the products that generated its $540.8 million in revenue for the quarter, giving it a gross profit of $64.1 million. That's roughly 11.9% of sales, up from 11.4% a year before. Selling, general, and administrative expensives totaled $57.1 million, and there were depreciation and amortization costs of $3.4 million. Add those together and subtract them from the gross profit and BlueLinx's operating profit totaled $3.6 million. Roughly $8.2 million in interest expense helped lead to the $3.4 million net loss.
Today's financial report comes two weeks after Cerberus Capital Management, which owns 55% of BlueLinx, offered to buy the rest of the outstanding shares and take the company private. (Story)
BlueLinx provides products from more than 750 suppliers to 11,500 customers nationwide. It posted a $14.7 million net loss in the first quarter.