WEB NEWS Research
Bluelinx Holdings Inc. (NYSE:BXC) ($26.40, $245.2M market cap) , a company that distributes building and industrial products in the United States, announced Q3 2018 results:
Sales of $859.8 million vs $380.5 million in the prior year
Non-GAAP net loss of $0.37 vs Non-GAAP EPS of $0.64
Chairman and Chief Executive Officer Ernest A. Bates, M.D., said, "Our third quarter 2018 results demonstrated continued strong performance from our proton therapy business, in spite of a previously disclosed two week business disruption from a water system leak. Excluding the impact of this event, we estimate proton therapy revenue would have increased 41.8%. Our UF Health Cancer Center – Orlando Health (“Orlando Health”) single room proton system, on increased awareness of clinical benefits across several indications, posted steady gains in patients served, with firm reimbursement trends. We remain focused on driving this business and look forward to generating value as we replicate Orlando Health’s success in new markets."
You can see our full coverage on BXC here .
Research
Bluelinx Holdings ( NYSE:BXC ) ($15.60; $140.5M market cap) a building supply company announced a sales leaseback agreement with:
“Brennan Investment Group a private real estate investment firm that acquires, develops, and operates industrial facilities, announced its purchase and simultaneous leaseback of four buildings to BlueLinx Corporation (NYSE: BXC) in a joint venture with a client of Arch Street Capital Advisors, LLC. The portfolio, located in four states and totaling 2,306,835 square feet, is geographically dispersed throughout several top markets in the United States including Boston, Raleigh-Durham, Atlanta, and Washington, D.C. BlueLinx is a leading distributor of building and industrial products in the United States and operates through a broad network of distribution centers. Since 2011, through multiple ventures, Brennan and Arch Street have acquired over $1 billion of single tenant, net leased, industrial assets.”
Research
Bluelinx Holdings ( NYSE:BXC ) ($10.17; $92.5M market cap) a building supply companyannounced the repayment of the remaining balance on its CMBS mortgage of $98 million.
The payment was funded through long-term sale leaseback transactions on four properties owned by the Company, which provided $110 million in aggregate sale proceeds. The Company will operate these locations under long-term leases, and after the transaction, the Company will continue to own 33 facilities in the United States.
We are very pleased that over the last four months we have both replaced our ABL and paid the principal of our legacy mortgage while continuing our mission to deliver BlueLinx. The Company’s portfolio of owned real estate continues to provide financial strength as a source of liquidity for additional debt reduction and operational and strategic opportunities in the future,” said Mitch Lewis, President and CEO.
Shyam Reddy, Chief Administrative Officer, responsible for the Company’s real estate activity, added “We appreciate the support of our CMBS lenders through the transformation of BlueLinx over the last two years. We continue to engage in discussions regarding additional opportunities to monetize our real estate and will assess these transactions in light of our capital requirements and strategic initiatives.”
Research
Bluelinx Holdings Inc. (NYSE:BXC) ($8.72; market cap $793m) , a building material and industrial product provider, was recently added to our Buy on Pullback Mock Portfolio 6.0 due to a pullback in shares after announcing a non-dilutive secondary offering. You can see our recent research note here.
In order to highlight another investors take on the recent events, we encourage you to read a Seeking Alpha article posted yesterday, “BlueLinx Holdings: Favorable Risk-Reward Profile, Downside Protection, And Attractive Entry Point Following Non-Economic Selling”.
Comments & Business Outlook
BXC - Reported Q2 2017 earnings this morning:
Quotes from Management:
“We continue to make progress in our local market and sales excellence emphasis, which coupled with our ongoing deleveraging efforts, enabled us to improve our financial performance while significantly reducing our debt from prior year levels. As we remain focused on our customers and markets, our team is energized and motivated to continue improving our operating results and garnering market share,”
“With the successful completion of our operational efficiency initiatives, we have experienced excellent performance this quarter, even with fewer facilities. Our commitment to improving our business resulted in our best second quarter net income, gross margin, and Adjusted EBITDA results since 2008.”
“We have also significantly reduced our debt principal by $76.4 million from this period a year ago. We continue to focus on deleveraging our balance sheet while actively marketing certain owned facilities for sale leaseback opportunities and exploring financing alternatives. Furthermore, with the working capital efficiencies we have achieved, we have reduced our operating working capital by $21.6 million from second quarter 2016.”
Research
BXC ($10.07) - We have discussed our bullish thesis on BXC’s restructuring initiatives since last summer. We initiated our long position in BXC on August 4, 2016 on the heels of strong Q2 2016 results and restructuring efforts playing out (shares opened at $7.50 on Aug 4th).
Today, we would like to highlight another investor's perspective. Please see this Seeking Alphaarticle titled, “BlueLinx: A Turnaround Story With Strong Business Moat”
Research
BXC ($10.35) announced Q1 2017 results:
Sales of $428.6 million vs $474.3 million in the prior year
GAAP EPS of $0.06 vs a loss of $0.69
Non-GAAP loss of $0.11 vs non-GAAP loss of $0.30
Quotes from management:
“Our continued emphasis on local market strategy and sales excellence, while successfully executing our deleveraging strategy, is reflected in the results we reported this quarter. We will remain focused on improving the operating results at BlueLinx as we continue to execute on our strategy to deleverage our balance sheet and improve our financial strength,” said Mitch Lewis, President and Chief Executive Officer.
Susan O’Farrell, Senior Vice President and Chief Financial Officer added, “We are excited to see such a strong start to 2017. Our dedication to improving our business has resulted in record first quarter gross margin and net income results for BlueLinx. Since announcing our deleveraging plan last year, we significantly reduced our debt principal by $111.3 million from this time a year ago. As part of this debt reduction, we fully satisfied our July 2017 mortgage obligation three months ahead of schedule. Furthermore, with the working capital efficiencies we have gained, we have reduced our operating working capital by $56.1 million from first quarter 2016.”
Research
BXC ($7.74) completed another property sale and continues to advance deleveraging strategy. The company announced:
“it has recently completed the sale of its non-operating facility in Wausau, Wisconsin, generating approximately $1.1 million in net proceeds. With this sale, BlueLinx has realized approximately $34.1 million in net proceeds from certain real estate sales since announcing its deleveraging plan last year.
BlueLinx has other non-operating facilities under contract with various purchasers and continues to actively market several company-owned operating facilities for possible sale leaseback transactions. The Company expects that through the outright sale of the properties in which it no longer operates and the sale leaseback transactions in certain facilities that will remain, that it will cumulatively pay off more than $60 million of its mortgage balance in the second quarter of 2017 since extending earlier in 2016.”
Research
BXC ($8.83) announced it has completed the sale of its non-operating La Puenta, California facility for net proceeds of $14.5 million. All the net proceeds will be used to pay down overall debt. The company also stated it has other facilities under contract that are expected to close prior to year end that are expected to generate in excess of $14.5 million.
recap here.
