BlueLinx receives NYSE notice
Building products distributor BlueLinx reported that it has received written notice from the New York Stock Exchange (NYSE) for failing to be in compliance with listing standards.
NYSE said that BlueLinx’s average market capitalization has been less than $50 million over a consecutive 30 trading-day period and its last reported stockholders' equity was below $50 million.
Prior to hefty stock market declines as result of the COVID-19 pandemic, the Marietta, Ga.-based market capitalization was above $50 million. BlueLinx said it has sent NYSE a plan to regain compliance for listing standards as required by January 2022.
“We entered 2020 focused on profitably growing our business, and we got off to a solid start in the first quarter,” said Mitch Lewis, CEO of BlueLinx. “In response to the unexpected COVID‑19 pandemic, we immediately developed plans and took actions that should give BlueLinx the financial and operating flexibility necessary to provide long-term value for our stakeholders, and we are poised to continue our progress once the pandemic subsides.”
BlueLinx stock closed at $5.95 on April 28, up $1.10 or 22.68%.
Earlier this month, BlueLinx announced that it had stopped all hiring while furloughing about 15% of its corporate employees. Additional “substantial” headcount reductions and cuts to operating expenses were also made. BlueLinx did not disclose how many employees it had let go.
Other moves included reducing or eliminating executive and management base salaries for the next six months.
As of April 1, BlueLinx had reduced its term loan principal balance to approximately $69 million. The distributor also said that it has about $95 million to $100 million in cash on hand.
The company also reported that first quarter 2020 sales are forecast to be 9% higher than the prior year period when excluding the impact of first quarter 2019 net sales attributable to the discontinued legacy Cedar Creek siding line.
BlueLinx will report first quarter 2020 financial results on May 5 following the close of the market.
NYSE said that BlueLinx’s average market capitalization has been less than $50 million over a consecutive 30 trading-day period and its last reported stockholders' equity was below $50 million.
Prior to hefty stock market declines as result of the COVID-19 pandemic, the Marietta, Ga.-based market capitalization was above $50 million. BlueLinx said it has sent NYSE a plan to regain compliance for listing standards as required by January 2022.
“We entered 2020 focused on profitably growing our business, and we got off to a solid start in the first quarter,” said Mitch Lewis, CEO of BlueLinx. “In response to the unexpected COVID‑19 pandemic, we immediately developed plans and took actions that should give BlueLinx the financial and operating flexibility necessary to provide long-term value for our stakeholders, and we are poised to continue our progress once the pandemic subsides.”
BlueLinx stock closed at $5.95 on April 28, up $1.10 or 22.68%.
Earlier this month, BlueLinx announced that it had stopped all hiring while furloughing about 15% of its corporate employees. Additional “substantial” headcount reductions and cuts to operating expenses were also made. BlueLinx did not disclose how many employees it had let go.
Other moves included reducing or eliminating executive and management base salaries for the next six months.
As of April 1, BlueLinx had reduced its term loan principal balance to approximately $69 million. The distributor also said that it has about $95 million to $100 million in cash on hand.
The company also reported that first quarter 2020 sales are forecast to be 9% higher than the prior year period when excluding the impact of first quarter 2019 net sales attributable to the discontinued legacy Cedar Creek siding line.
BlueLinx will report first quarter 2020 financial results on May 5 following the close of the market.