Construction products distributor BlueLinx Holdings Inc. (BXC), Wednesday said its first-quarter net loss widened from the same quarter a year ago, hurt by a decline in revenues as well as one-time charges related to a valuation allowance against its deferred tax assets.
Atlanta, Georgia-based BlueLinx Holdings' net loss for the first quarter widened to $60.7 million or $1.95 per share from $10.6 million or $0.34 per share in the same quarter a year ago.
After-tax charges for the first quarter came in at $44.6 million, up from $1.44 million in the same quarter a year ago. After tax charges for the first quarter included deferred tax asset valuation allowance totaling $40.2 million.
Gross margins for the first quarter, however, remained flat with 10.9% of gross margin recorded in the same quarter a year ago.
Operating loss for the quarter also widened to $18.4 million from $7.8 million in the same quarter a year ago, despite a decline in operating expenses.
Revenues decreased 43.2% to $407.1 million from $716.8 million in the comparable quarter last year as structural and specialty products unit volumes declined due to a 51% decline in housing starts relative to the same quarter last year.
Owing to on going cost reduction initiatives, total operating expenses for the first quarter decreased $22.9 million, or 26.8% to $62.7 million, from the same period a year ago, primarily reflecting ongoing initiatives to reduce the Company's cost structure.
Further, the company said it will receive a payment of $18.8 million in cash from Georgia-Pacific as per an agreement signed with the company on April 27, 2009 to terminate BlueLinx's supply agreement. The company also expects a net gain of nearly $17.3 million related to this transaction in the second quarter to reduce operating expenses for the second quarter.
BXC is currently trading at $4.19, up $0.38 or 9.97% on the NYSE.
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