Revenue during the quarter dropped 8.07 percent to $476.05 million from $517.83 million in the previous year period. Gross margin for the quarter expanded 87 basis points over the previous year period to 12.61 percent. Total expenses were 95.25 percent of quarterly revenues, down from 98.36 percent for the same period last year. This has led to an improvement of 311 basis points in operating margin to 4.75 percent.

Operating income for the quarter was $22.62 million, compared with $8.48 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $11.08 million compared with $10.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 30 basis points in the quarter to 2.33 percent from 2.03 percent in the last year period.

“Our performance this quarter confirms that we continue to make good progress on our key strategic initiatives of monetizing our real estate and deleveraging the balance sheet. We have successfully extended our asset-based credit facility, prudently managed our working capital, and sold several of our unoccupied facilities which have enabled us to significantly reduce our debt from 2015 third quarter levels. In addition, we continue to focus on our customers through our local market emphasis as we improve our operational efficiencies and bottom line,” said Mitch Lewis, President and Chief Executive Officer.

Cash flow from investing activities was $18.39 million for the nine month period as against cash outgo of $0.86 million in the last year period.

The company has spent $18.32 million cash to carry out financing activities during the nine month period as against cash inflow of $31.50 million in the last year period.

Cash and cash equivalents stood at $4.70 million as on Oct. 01, 2016, down 31.87 percent or $2.20 million from $6.90 million on Oct. 03, 2015.

Working capital increases sharply
BlueLinx Holdings Inc has recorded an increase in the working capital over the last year. It stood at $226.63 million as at Oct. 01, 2016, up 61.87 percent or $86.62 million from $140.01 million on Oct. 03, 2015. Current ratio was at 2.30 as on Oct. 01, 2016, up from 1.41 on Oct. 03, 2015.

Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 65 days for the last year period. Days sales outstanding were almost stable at 34 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 23 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went up to 23 days for the quarter from 22 for the same period last year.