BlueLinx Holdings Inc (BXC) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $10.36 million, or $ 1.14 a share in the quarter, against a net loss of $6.06 million, or $0.69 a share in the last year period. Revenue during the quarter went down marginally by 1.52 percent to $421.66 million from $428.15 million in the previous year period. Gross margin for the quarter expanded 40 basis points over the previous year period to 12.42 percent. Total expenses were 96.15 percent of quarterly revenues, down from 99.17 percent for the same period last year. This has led to an improvement of 301 basis points in operating margin to 3.85 percent.
Operating income for the quarter was $16.21 million, compared with $3.56 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.68 million compared with $4.16 million in the prior year period. At the same time, adjusted EBITDA margin improved 38 basis points in the quarter to 1.35 percent from 0.97 percent in the last year period.
“We are pleased to share the strong finish we had in 2016 which demonstrates our continued focus on our key strategic initiative to delever the Company through monetizing our real estate and improving our working capital. The successful execution of this strategy enabled us to improve our financial performance while significantly reducing our debt from prior year levels. We continue to evaluate alternatives to reduce the Company’s leverage and enhance liquidity,” said Mitch Lewis, President and Chief Executive Officer.
Operating cash flow improves marginally
BlueLinx Holdings Inc has generated cash of $41.40 million from operating activities during the year, up 3.68 percent or $1.47 million, when compared with the last year. Cash flow from investing activities was $36.84 million from investing activities during the year as against cash outgo of $0.80 million in the last year.
The company has spent $77.51 million cash to carry out financing activities during the year as against cash outgo of $38.84 million in the last year period.
Cash and cash equivalents stood at $5.54 million as on Dec. 31, 2016, up 15.22 percent or $0.73 million from $4.81 million on Jan. 02, 2016.
Working capital drops significantly
BlueLinx Holdings Inc has witnessed a decline in the working capital over the last year. It stood at $191.47 million as at Dec. 31, 2016, down 29.57 percent or $80.38 million from $271.85 million on Jan. 02, 2016. Current ratio was at 2.24 as on Dec. 31, 2016, down from 3.09 on Jan. 02, 2016.
Debt comes down
Bluelinx Holdings has recorded a decline in total debt over the last one year. It stood at $321.96 million as on Dec. 31, 2016, down 19.85 percent or $79.71 million from $401.67 million on Jan. 02, 2016. Total debt was 72.49 percent of total assets as on Dec. 31, 2016, compared with 78.28 percent on Jan. 02, 2016. Interest coverage ratio improved to 3.04 for the quarter from 0.51 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: editor@irisindia.net
