Building products distributor BlueLinx Holdings experienced a $60 million year over year (YOY) decrease in net sales in the fourth quarter of 2019. Net sales for the full fiscal year declined 7.7% YOY to $2.64 billion from net sales of $2.86 billion in 2018, according to the company’s quarterly earnings report.
Net sales in the fourth quarter were primarily impacted by lower commodity prices and the discontinuation of a siding product in late 2018, which affected YOY net sales by approximately $13 million and $46 million respectively, according to BlueLinx. The full fiscal year results were also negatively affected by these two factors. The YOY comparison in net sales was also affected by disparate sales that materialized in 2019 related to BlueLinx’s Cedar Creek acquisition.
Marietta, Ga.-based BlueLinx reported a net loss of $10.2 million in the fourth quarter, compared to a net loss of $16.2 million in the same period a year ago. The fourth-quarter net loss includes one-time charges for pension settlement and withdrawal costs of $4 million, integration related charges of $3 million, and $1 million for restructuring charges.
For the full year, BlueLinx narrowed its net loss from $48.1 million in 2018 to $17.7 million in 2019. The 2019 fiscal year included gains from sales of real property of $13 million and one-time charges for acquisition-related integration costs of $14 million.
BlueLinx reported a gross profit of $83 million during the fourth quarter with a gross margin of 13.5% compared to 12.1% in the prior-year period. The distributor posted a gross profit of $357 million for the 2019 fiscal year with a gross margin of 13.5% compared to 11.6% in the prior-year period.
Adjusted EBITDA was $10.9 million for the fourth quarter, compared to $6.8 million in the prior year period. Adjusted EBITDA was $71.4 million for the full fiscal year, compared to $68.5 million in 2018.
BlueLinx has a distribution footprint serving 40 states and the company distributes its range of structural and specialty products to approximately 15,000 customers across the United States.
