BlueLinx Holdings Inc (BXC) swung to a net profit for the quarter ended Apr. 01, 2017. The company has made a net profit of $0.58 million, or $ 0.06 a share in the quarter, against a net loss of $6.14 million, or $0.69 a share in the last year period. Revenue during the quarter dropped 9.64 percent to $428.61 million from $474.33 million in the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 12.70 percent. Total expenses were 98.63 percent of quarterly revenues, down from 99.93 percent for the same period last year. This has led to an improvement of 130 basis points in operating margin to 1.37 percent.
Operating income for the quarter was $5.86 million, compared with $0.32 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.32 million compared with $7.01 million in the prior year period. At the same time, adjusted EBITDA margin improved 23 basis points in the quarter to 1.71 percent from 1.48 percent in the last year period.
“Our continued emphasis on local market strategy and sales excellence, while successfully executing our deleveraging strategy, is reflected in the results we reported this quarter. We will remain focused on improving the operating results at BlueLinx as we continue to execute on our strategy to deleverage our balance sheet and improve our financial strength,” said Mitch Lewis, President and Chief Executive Officer.
Operating cash flow remains negative
BlueLinx Holdings Inc has spent $39.86 million cash to meet operating activities during the quarter as against cash outgo of $51.64 million in the last year period. Cash flow from investing activities was $27.27 million for the quarter, up 2,116.83 percent or $26.04 million, when compared with the last year period.
Cash flow from financing activities was $12.24 million for the quarter, down 76.79 percent or $40.49 million, when compared with the last year period.
Cash and cash equivalents stood at $5.18 million as on Apr. 01, 2017, down 27.24 percent or $1.94 million from $7.13 million on Apr. 02, 2016.
Working capital declines
BlueLinx Holdings Inc has witnessed a decline in the working capital over the last year. It stood at $259.05 million as at Apr. 01, 2017, down 17.09 percent or $53.38 million from $312.43 million on Apr. 02, 2016. Current ratio was at 2.86 as on Apr. 01, 2017, down from 3.11 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 61 days for the last year period. Days sales outstanding were almost stable at 32 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 26 days for the quarter compared with 52 days for the previous year period. At the same time, days payable outstanding went up to 23 days for the quarter from 21 for the same period last year.
Debt comes down
BlueLinx Holdings Inc has recorded a decline in total debt over the last one year. It stood at $336.22 million as on Apr. 01, 2017, down 24.80 percent or $110.86 million from $447.08 million on Apr. 02, 2016. Total debt was 67.56 percent of total assets as on Apr. 01, 2017, compared with 78.68 percent on Apr. 02, 2016. Interest coverage ratio improved to 1.12 for the quarter from 0.04 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
