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EX - 99.1 2 q12021earnings991.htm EX - 99.1 BlueLinx America's Building Products Distributor Exhibit 99.1 BlueLinx Announces First Quarter 2021 Results Net Sales Exceed $ 1 billion , Highest Q1 Since 2006 Record Net Income of $ 62 million and Adjusted EBITDA of $ 107 million More than $ 100 million decrease in Total Outstanding Bank Debt year over year MARIETTA , GA , May 4 , 2021 - BlueLinx Holdings Inc. ( NYSE : BXC ) , a leading U.S. wholesale distributor of building products , today reported financial results for the three months ended April 3 , 2021 . First Quarter 2021 Results ( all comparisons versus the prior - year period unless otherwise noted ) • Net sales increased $ 363 million , or 55 % , to $ 1.0 billion • Gross margin increased 350 basis points to 17.6 % • Net income of $ 62 million , an increase of $ 63 million • Adjusted EBITDA of $ 107 million , improved by $ 87 million • Excess availability and cash on hand increased to $ 238 million • Term Loan fully repaid " The BlueLinx team has continued to perform at a high level during a period of continued strength in residential construction and home renovation , leading to significant year - over - year growth in revenue and profitability , ” said Mitch Lewis , President and CEO . " We generated more than $ 1 billion in revenue and $ 107 million in Adjusted EBITDA during the first quarter , providing the Company a strong platform to drive continued growth and efficiency across our business . " " The ongoing supply - demand imbalances for many of our products contributed to further price escalations during the first quarter , a trend that is continuing in the second quarter , " stated Lewis . " We are a beneficiary of these price escalations which are a key near - term driver of improved margin realization and profitability while remaining focused on preemptive actions to help mitigate the impact of downside commodity price risk . ” " Our business transformation continued during the first quarter , supported by a significant increase in gross profit across both product categories , ” stated Kelly Janzen , Chief Financial Officer . “ Since the end of the first quarter 2020 , we have reduced our total outstanding bank debt by over $ 100 million . Late in the quarter , we voluntarily repaid the approximately $ 16 million of remaining outstanding principal under our term loan , an action which further simplifies our capital structure and reduces cash interest expense . We ended the first quarter with excess availability of $ 238 million under our revolving credit facility , an increase of $ 141 million versus the prior - year period , and a net leverage ratio of 2.5x , inclusive of finance lease obligations . " " Given the significant increase in net sales , accounts receivable grew by more than $ 125 million in the first quarter , when compared to the fourth quarter 2020 , ” continued Janzen . “ As we look to the second half of the current year , we anticipate that the conversion of our accounts receivable will result in significant growth in cash flow . " Financial Performance The Company reported net sales of $ 1.0 billion in the first quarter , compared to $ 662 million in the prior year period , and gross profit of $ 180 million , compared to $ 93 million in the prior year period . First quarter net sales for specialty products , which includes products such as engineered wood , cedar , moulding , siding , metal products and insulation , accounted for $ 563 million of net sales in the period , up from $ 421 million in the prior year period . The $ 142 million improvement year over year was primarily a result of price escalations . The specialty gross margin was 19.3 % which increased 290 basis points compared to the first quarter of 2020. Net sales of structural products , which includes products such as lumber , plywood , oriented strand board , rebar , and remesh , continued to benefit from wood - based commodity price inflation and were $ 462 million , an increase of $ 222 million compared to last year . The impact of wood - based commodity price inflation is estimated to approximate the full amount 1