BlueLinx income rises as sales slip

Building products distributor BlueLinx reported that second quarter net sales dipped to $699 million compared to sales of $706 million in the second quarter of 2019.

But the Marietta, Ga.-based company posted a net income of $7 million, rising nearly 17% from a net income of $6 million for the same period last year.

Net sales were positively impacted by higher commodity prices, with $14 million of net sales growth attributable to commodity price inflation in the current period.

BlueLinx’s second quarter net income includes one-time items totaling $3 million for restructuring, share-based compensation expense, and integration-related charges. 

Net income in the prior year period included one-time gains from sales of real property of $10 million offset by one-time integration-related charges, restructuring costs, and share-based compensation expense totaling $6 million.  

Excluding the one-time items, net income increased by $8 million year over year, BlueLinx reported.

The company also said that it had reduced debt under its term loan and revolving credit facility by $125 million during the quarter.

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The Bottom Line: As sales slip slightly, BlueLinx profits rise almost 17% to $7 million in the second quarter.

What the CEO said: “Our strong second quarter results validate the positive impact we have realized from the operational improvements we began in the second half of 2019 and accelerated earlier this year,” said Mitch Lewis, president and CEO of BlueLinx. “We gained momentum as the quarter progressed, experiencing increased demand and an improving structural products commodity market compared to the lower sales volume and gross margins we saw in April due to the pandemic.”

Company info: The full second quarter 2020 report from BlueLinx is available here.