BlueLinx Holdings reported 2Q net loss of $3.7 million

Aug 06, 2012. /Lesprom Network/. BlueLinx Holdings Inc. reported financial results for the 2Q ended June 30, 2012. BlueLinx Holdings incurred a net loss of $3.7 million, or $0.06 per diluted share, for the 2Q 2012, compared to a net loss of $9.8 million, or $0.31 per diluted share, for the 2Q 2011, as the company said in the press release received by Lesprom Network. Revenues for the 2Q increased 3.2% to $517 million from $500.8 million for the same period a year ago. The increase in revenue is attributable to increased underlying product prices for both specialty and structural product categories. Overall unit volume declined 1.3% compared to the same period a year ago as seasonal demand was pulled forward by favorable weather experienced during the 1Q of fiscal 2012 and the Company focused on improving gross profit through profitable revenue growth. Gross profit for the 2Q ended June 30, 2012 totaled $63.2 million, up 9.6% from $57.6 million in the year-ago period. Gross margins increased to 12.2% from the 11.5% generated in the year-ago period. These increases reflect the Company's continued focus on margin expansion, rising product prices for many of the products distributed, including key grades of wood-based products, and a shift to the warehouse channel from the direct and reload channels. Total operating expenses of $59.3 million for the 2Q were flat compared to the same period a year ago and included a $0.5 million gain from a property insurance settlement in 2012. Reported operating income for the quarter was $3.9 million, compared with an operating loss of $1.8 million a year ago. "For the 2Q we grew our revenue, increased our margins, and kept our operating expenses flat as we expanded our out-of-warehouse business, producing an improved operating profit of $3.9 million. This is our first quarterly operating profit since the 2Q 2010," said BlueLinx President and CEO George Judd. "We expect our operating results to continue to improve as we continue to execute our strategy in a recovering housing market," Mr. Judd continued. For the six months ended June 30, 2012, net loss totaled $14.7 million, or $0.25 per diluted share, compared with $22.1 million, or $0.71 per diluted share, a year ago. Revenues for the six months totaled $970.7 million, up 8.9% from $891.4 million the same period a year ago, reflecting higher structural and specialty product prices and unit volumes. Gross profit for the six months ended June 30, 2012 totaled $117.4 million and gross margin was 12.1%, compared with $103.9 million and 11.7%, respectively, a year earlier. Operating expenses increased to $117.6 million from $110.8 million a year ago and included total gains of $1 million from an insurance settlement and the sale of certain properties in the first half of 2012 and a $7.2 million gain from the sale of certain properties in 2011. BlueLinx Holdings Inc., operating through its wholly owned subsidiary BlueLinx Corporation, is a leading distributor of building products in North America.