Building products distributor BlueLinx recorded a net loss of $16.2 million in the fourth quarter of 2018 and a net loss of $48.1 million for the full fiscal year. Net sales, however, continued to rise for the Marietta, Ga.-based distributor, according to the company’s fourth quarter earnings report.
BlueLinx reported net sales of $673 million for the fourth quarter, an increase of $239 million from the fourth quarter in 2017. Pro forma net sales for the same period were down 13.3%, or $103.6 million, from the fourth quarter in 2017. Net sales for the full fiscal year were $2.9 billion, an increase of 57.7% year over year (YOY). Pro forma net sales for the full year were up 80 basis points from 2017 to $3.3 billion.
The distributor acquired Cedar Creek on April 13, 2018, making year over year comparisons more muted for the company. Cedar Creek’s financial results are only included in the combined company’s reported financial results from the closing date of the acquisition forward.
“This was a transformative year for BlueLinx as we acquired Cedar Creek and made significant progress with our integration efforts over the course of the year. We are pleased that our integration efforts realized through December 2018 should result in annual synergies exceeding $30 million in 2019,” said Mitch Lewis, president and chief executive officer.
Lewis said the fourth quarter results reflect an overall deflationary commodity environment and a slowdown in single-family housing starts. Lewis said the company remains confident it can reach annual run-rate synergies of at least $50 million with continued integration efforts.
Adjusted EBITDA—earnings before interest, taxes, depreciation, amortization, and one-time costs—was $6.8 million for the fourth quarter of 2018, down $13.1 million YOY. On a pro forma basis, adjusted EBITDA was down $12.9 million YOY. For the full-year fiscal period, adjusted EBITDA was up $24.5 million YOY to $68.5. On a pro forma basis, the metric was $80.0 million, down $21.7 million.
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.
