BlueLinx continued its debt-slashing efforts today by announcing it sold a non-operating facility in La Puente, Calif., for $14.5 million and said it has several other facilities under contract that will net another $14.5 million in proceeds by year-end.
Today's news involving the 9.25-acre facility, which had served the Los Angeles market until its closure in April, comes just eight days after the company revealed it had sold facilities in Jackson, Miss.; Little Rock, Ark.; and Shreveport, Miss. It appears those earlier properties produced scant benefits compared with selling the La Puente yard, because BlueLinx's announcement today noted that the L.A. area yard's sale plus all other real estate sales in the past three months have generated a total of $16.4 million.
"All net proceeds arising out of these real estate efforts are being used to pay down BlueLinx's mortgage and reduce overall debt levels," the Atlanta-based distributor said in a press release.
On Aug. 4, as part of its quarterly earnings announcement, BlueLinx said it has cut its debt principal by $63.6 million since the April-to-June 2015 quarter and reduced working capital by $64.5 million. Its net profit swung to a $3.1 million loss in the second quarter from a $2.9 million profit in the year-earlier period. Sales rose 1.7% to $509 million.