BlueLinx reports $13.4 million loss
Fresh off of a major acquisition, BlueLinx reported first quarter 2018 net sales of $437.5 – a 2.1% increase from first quarter 2017 net sales $428.6 million in the first quarter 2017.
But the Atlanta, Ga.-based building products distributor also reported a net loss $13.4 million for the first quarter, a 95% plunge compared to a net income of $0.6 million for the same period last year.
BlueLinx said, due to its acquisition of LBM distributor Cedar Creek during the quarter, the stock market “reacted favorably” resulting in a rising stock price and stock appreciation rights (SARs) charges of $8.9 million. The distributor said it plans to pay the charges in 2018 and 2019.
After BlueLinx announced the acquisition on March 12, the company’s stock price more than doubled in the days that followed.
The company also incurred one-time charges for legal, consulting, and professional fees of $3.6 million related to the Cedar Creek acquisition. The combined companies should create one of the largest wholesale distributors of LBM products in the industry with total revenue of approximately $3.2 billion in 2017 and more than 70 locations in 40 states.
“Our first quarter was perhaps the most productive in the history of BlueLinx. We entered into $110 million of sale leaseback transactions that allowed us to deleverage the balance sheet and enter into an agreement to acquire Cedar Creek,” said Mitch Lewis, BlueLinx president and CEO.
During the quarter BlueLinx also completed four sale leaseback transactions and eliminated debt of $98 million.
“Our continued focus on deleveraging the business improved our financial performance and significantly reduced our debt during the quarter,” said Susan O’Farrell, senior vp and CFO of BlueLinx.
But the Atlanta, Ga.-based building products distributor also reported a net loss $13.4 million for the first quarter, a 95% plunge compared to a net income of $0.6 million for the same period last year.
BlueLinx said, due to its acquisition of LBM distributor Cedar Creek during the quarter, the stock market “reacted favorably” resulting in a rising stock price and stock appreciation rights (SARs) charges of $8.9 million. The distributor said it plans to pay the charges in 2018 and 2019.
After BlueLinx announced the acquisition on March 12, the company’s stock price more than doubled in the days that followed.
The company also incurred one-time charges for legal, consulting, and professional fees of $3.6 million related to the Cedar Creek acquisition. The combined companies should create one of the largest wholesale distributors of LBM products in the industry with total revenue of approximately $3.2 billion in 2017 and more than 70 locations in 40 states.
“Our first quarter was perhaps the most productive in the history of BlueLinx. We entered into $110 million of sale leaseback transactions that allowed us to deleverage the balance sheet and enter into an agreement to acquire Cedar Creek,” said Mitch Lewis, BlueLinx president and CEO.
During the quarter BlueLinx also completed four sale leaseback transactions and eliminated debt of $98 million.
“Our continued focus on deleveraging the business improved our financial performance and significantly reduced our debt during the quarter,” said Susan O’Farrell, senior vp and CFO of BlueLinx.