BlueLinx Holdings Inc. reported net sales of $871 million in the 3Q 2020, compared to $679 million in the prior year period and gross profit of $159 million, compared to $94 million in the prior year period. Net sales during the quarter benefitted significantly from historic price inflation across key wood-based commodities during the period, primarily impacting net sales of structural products.
The company reported net income of $55 million in the 3Q, or $5.72 per diluted share, compared to a net loss of $7 million, or $(0.75) per diluted share, in the prior-year period. 3Q 2020 net income benefited from approximately $8 million, or $0.84 per diluted share, of non-recurring items, including a gain on a sale-leaseback transaction involving its Denver facility, versus a reduction of $5 million from non-recurring items, or $(0.50) per diluted share, in the prior-year period. Excluding these non-recurring items, net income increased by $49 million on a year-over-year basis in the third quarter, when compared to the 3Q 2019.
Adjusted EBITDA, a non-GAAP measure, was a record $81 million in the 3Q, compared to $19 million in the prior-year period. Cash provided by operating activities was $61 million in the 3Q, an increase of $46 million versus the prior-year period, primarily attributable to the year-over-year increase in Adjusted EBITDA.
“This was a transformative quarter for BlueLinx as we took advantage of our operational improvements over the last year to maximize our financial performance,” said Mitch Lewis, President and CEO. “Although the COVID-19 pandemic continued to affect our business and the broader economy, we drove significant increases in net sales as well as historical levels of net income and Adjusted EBITDA by closely managing an improving housing market and an unprecedented inflationary environment in our wood-based structural product markets. We remain focused on our strategic imperatives, including organic sales growth, margin expansion and disciplined working capital management. We also continue to support our employees and our country’s essential infrastructure needs during the COVID-19 pandemic through strong partnerships with both our customers and suppliers.”
BlueLinx Holdings Inc. is a leading distributor of building and industrial products in the United States.
