Building products distributor BlueLinx recorded a net loss of $7 million in the first quarter of 2019, compared to a net loss of $13 million from the first quarter of 2018. Net sales, however, continued to grow for the Marietta, Ga-based distributor, according to the company’s first quarter earnings report.
BlueLinx reported net sales nearly 46% to $639 million in the first quarter, an increase of $201 million year over year (YOY). The distributor partially attributed the increase in its first quarter net sales to its April 2018 acquisition of Cedar Creek.
“We have been pleased with our progress in the year following our Cedar Creek acquisition, and continue to see substantial long-term benefits to BlueLinx from the combination,” Mitch Lewis, president and CEO, said in a public statement. “Our revenue performance on a pro forma basis during the quarter compared to 2018 was impacted by deflation in commodity wood products and a reduction in single family housing starts.”
BlueLinx recorded a gross profit in the first quarter of $86 million, a 56% YOY increase, with a gross margin of 13.5%, from 12.6% in the year-earlier period. Adjusted EBITDA—earnings before interest, taxes, depreciation, amortization, and one-time costs—was $17 million for the first quarter, a $9 million increase YOY.
BlueLinx has a distribution footprint serving 40 states and distributes its range of structural and specialty products to approximately 15,000 national, regional, and local dealers, as well as specialty distributors, national home centers, industrial, and manufactured housing customers.
