Building products distributor BlueLinx saw its net sales decrease by $181 million year over year (YOY) to $679 million in the third quarter of 2019. Marietta, Ga.-based BlueLinx also recorded a net loss in the quarter of $7.0 million, down from its net loss of $9.9 million during the third quarter of 2018, according to the company’s third quarter earnings report.
BlueLinx also recorded gross profit of $94 million during the third quarter, a $2 million increase YOY. The distributor’s gross margin in the quarter was 13.8%, compared to 10.7% in the third quarter of 2018.
“We are pleased that we expanded gross margin again this quarter, both sequentially and on a year-over-year basis,” BlueLinx president and CEO Mitch Lewis said in a news release. “Gross margin was 13.8%, our highest gross margin since the acquisition of Cedar Creek, which led to the increase in gross profit over 2018 and our improved results. Our team is focused on profitable growth through providing our customers and suppliers excellent products and service while continuing our emphasis on operating our business more efficiently.”
The third quarter of 2019 included one-time charges for integration and restructuring costs of $4 million, and charges related to a partial multi-employer pension plan withdrawal of $1 million. The previous year period included a partial multi-employer pension plan withdrawal of $7 million and acquisition-related fees and restructuring costs of $5 million.
Adjusted EBITDA was $19.0 million for the third quarter, compared to $16.6 million in the prior year period.
During the quarter, BlueLinx also reduced debt under its term loan and revolving credit facility by $92 million YOY.
BlueLinx has a distribution footprint serving 40 states and the company distributes its range of structural and specialty products to approximately 15,000 customers across the U.S.
