Building products distributor BlueLinx Holdings reported net sales decreased marginally while net income expanded during the company’s fiscal second quarter of 2020. BlueLinx’s net sales decreased $7 million on a year-over-year (YOY) basis to $699 million in the fiscal second quarter, according to the distributor’s earnings report.
BlueLinx said net sales were up $9 million on a YOY basis when excluding $16 million in net sales from the fiscal second quarter of 2019 related to a discontinued siding line. The distributor said net sales were positively impacted by higher commodity prices during the second quarter.
The company recorded a net income of $7 million during the second quarter, a 16.7% increase from the prior year period. The distributor’s net income includes one-time items totaling $3 million for restructuring, share-based compensation expense, and integration-related charges. The prior year period’s net income included one-time gains from sales of real property of $10 million offset by one-time integration-related charges totalling around $6 million. Excluding one-time items, BlueLinx’s net income increased $8 million YOY.
“Our strong second quarter results validate the positive impact we have realized from the operational improvements we began in the second half of 2019 and accelerated earlier this year,” BlueLinx president and CEO Mitch Lewis said in a prepared statement. “We gained momentum as the quarter progressed, experiencing increased demand and an improving structural products commodity market compared to the lower sales volume and gross margins we saw in April due to the pandemic.”
BlueLinx recorded a gross profit in the second quarter of $101 million, compared to $94 million from the second quarter of 2019. The company’s gross margin increased 110 basis points YOY to 14.4% in the second quarter. The distributor’s adjusted EBITDA during the quarter increased 24% on a YOY basis to $31 million for the second quarter.
“The numerous actions we undertook in response to the COVID-19 pandemic also contributed to the successful financial results this quarter,” Lewis said. “Ensuring a safe and healthy workplace environment for our associates continues to be our highest priority. I am proud of how well our associates have managed the challenges and opportunities that have arisen during these trying times and we are focused on continuing to effectively support our nation’s essential infrastructure needs in partnership with our customers and suppliers.”
Marietta, Ga.-based BlueLinx has a distribution footprint serving 40 states and the company distributes its range of structural and specialty products to approximately 15,00 customers across the United States.
