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EX - 99.1 2 q22021earnings991.htm EX - 99.1 BlueLinx America's Building Products Distributor Exhibit 99.1 BlueLinx Announces Second Quarter 2021 Results Record Net Income and Adjusted EBITDA TTM Net Sales , Net Income and Adjusted EBITDA of $ 4.1 billion , $ 250 million , and $ 392 million , respectively Strong Financial Performance Supports Significantly Improved Balance Sheet MARIETTA , GA , August 3 , 2021 - BlueLinx Holdings Inc. ( NYSE : BXC ) , a leading U.S. wholesale distributor of building products , today reported financial results for the three months ended July 3 , 2021 . SECOND QUARTER 2021 RESULTS ( all comparisons versus the prior - year period unless otherwise noted ) • Net sales increased to $ 1.3 billion , an increase of 87 % • Gross margin increased 480 basis points to 19.2 % • Net income of $ 113 million , an increase of $ 107 million • Adjusted EBITDA of $ 166 million , an increase of $ 135 million • • Excess availability and cash on hand of $ 276 million , an increase of $ 138 million Amended and extended revolving credit facility for an additional five years " We continued our business transformation during the second quarter , while capitalizing on elevated demand within our core residential construction and home renovation markets , " stated Dwight Gibson , President and CEO of BlueLinx . “ Our performance - driven culture , emphasis on long - term customer and supplier relationships at both national and local levels and our strategic product and service offerings , represent a durable and meaningful value proposition in a highly fragmented market . ” " Our record - setting second quarter performance was driven by a combination of product price escalations , overall volume growth within our specialty products business and an improved sales mix , " continued Gibson . “ Supply - demand imbalances continued to persist across our specialty categories throughout the second quarter , resulting in a succession of supplier price increases that allowed the company to expand its margins . We expect that demand for key specialty categories will continue to outpace supply for the remainder of the current year and likely into the first half of 2022. " " Commodity wood prices remained volatile during the second quarter , " continued Gibson . " While wood - based commodity prices continued to rise during April and mid - May , lumber prices declined by nearly 50 % and 38 % during June and July , respectively . In anticipation of the decline in commodity wood prices , we reduced our structural inventory footage to below prior - year levels , which served to mitigate price deflation in the period . We continue to take similar actions into the third quarter , consistent with our disciplined approach to working capital management . ” “ Our balance sheet transformation continued during the second quarter . Significant cash flow generation in the period supported further debt reduction and an improved net leverage ratio , ” stated Kelly Janzen , Chief Financial Officer . " We ended the second quarter with net debt to trailing twelve - month adjusted EBITDA of 1.5x , including lease finance obligations , the lowest level in the history of our company . Our strong balance sheet provides BlueLinx with significant optionality as we seek to deploy capital toward high - return investments capable of supporting long - term profitable growth . ” FINANCIAL PERFORMANCE For the three months ended July 3 , 2021 , BlueLinx generated net sales of $ 1.3 billion , an increase of $ 609 million when compared to the prior - year period . BlueLinx reported second quarter net income of $ 113 million , or $ 11.61 per diluted share , versus $ 7 million , or $ 0.71 per diluted share , in the prior - year period . The year - over - year increase in profitability was attributable to broad - based revenue growth across both the specialty and structural product lines , improved price realization , together with disciplined inventory management and targeted cost control . Net sales of specialty products , which includes engineered wood , industrial products , cedar , moulding , siding , metal products and insulation , increased $ 226 million to $ 675 million in the second quarter . Elevated demand for construction materials , along with continued supply constraints , contributed to price increases throughout the second quarter , improving net sales growth . 1