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| BlueLinx announces 4Q results BlueLinx Holdings Inc., a leading distributor of building products in North America, reported financial results for the fourth quarter ended January 2, 2010. The company generated net income of $12.0 million, or $0.37 per diluted share for the fourth quarter of 2009, compared with a net loss of $25.1 million, or $0.81 per diluted share, in the year-ago period. The fourth-quarter results include a tax benefit of $23.6 million or $0.72 per diluted share. This income tax benefit is comprised of a $20.4 million benefit related to our anticipated tax refund on our 2009 taxable loss, due to the extension of the net operating loss carry back provision to five years and a $3.3 million non-cash benefit related to the allocation of income tax expense to other comprehensive income, which is recorded in shareholders' equity, partially offset by other income tax expense. Revenues decreased 27% to $366.1 million from $501.5 million for the same period a year ago. Overall unit volume fell 23%. The sales decline was mainly due to lower unit volumes in both structural and specialty products driven predominately by a 20% decline in housing starts relative to year-ago levels. Gross profit for the fourth quarter totaled $45.3 million, down 2.5% from $46.4 million in the prior-year period, reflecting lower unit volume associated with the decline in housing starts. Gross margins of 12.4% increased from the 9.3% margins generated in the year earlier period. Total operating expenses decreased $23.2 million, or 32% from the same period a year ago, as the Company continued to align its cost structure to the current operating environment and recognized a deferred gain of $6.0 million from the sale of a surplus property in the fourth quarter of 2008. Reported operating loss for the quarter was $4.8 million, compared with an operating loss of $26.8 million a year ago. For the full year ended January 2, 2010, net loss totaled $61.5 million, or $1.98 per diluted share, on revenues of $1.65 billion, compared with a net loss of $31.7 million, or $1.02 per diluted share, on revenues of $2.8 billion a year ago. The decline in income and revenue was largely due to the 39% decline in housing construction activity relative to the prior period, as well as various charges taken during the twelve month period including the recognition of a tax valuation allowance, facility consolidation and severance related costs, and interest charges associated with our ineffective interest rate swap. These charges are quantified below. Gross profit for the full year ended January 2, 2010 totaled $193.2 million and gross margin was 11.7%, compared with $314.9 million and 11.3%, respectively, a year earlier. Operating expenses declined $114.5 million, or 35.4%, from $323.9 million a year ago. write your comments about the article :: © 2010 Construction News :: home page |