BlueLinx Advances Delevering Strategy with Completion of Three Facility Sales
September 01 2016 - 7:00AM
BlueLinx Holdings Inc. (NYSE:BXC), announced today that it has
recently completed the sale of its Jackson, Mississippi; Little
Rock, Arkansas; and Shreveport, Louisiana facilities, for aggregate
net proceeds of approximately $1.9 million.
In addition to these property sales, the Company
has six other non-operating facilities under contract with various
purchasers in transactions expected to generate in excess of
approximately $30 million of aggregate net proceeds before
year-end, subject to satisfaction of customary closing conditions.
The Company also continues to actively market several Company-owned
operating facilities for possible sale leaseback transactions as
part of the Company’s real estate sale optimization efforts.
The net proceeds arising out of these real estate
efforts are being used to pay down the Company’s mortgage. There
can be no assurance, however, that any of these pending or
potential sales will close on favorable terms, or at all.
“Earlier this year we announced an initiative to
reduce the Company’s financial leverage and improve our working
capital performance. We are pleased to share that we are continuing
to successfully execute on our strategy to deleverage BlueLinx by
reducing our mortgage as a result of these transactions,” said
Mitch Lewis, President and Chief Executive Officer.
About BlueLinx Holdings Inc.
BlueLinx Holdings Inc., operating through its
wholly owned subsidiary BlueLinx Corporation, is a leading
distributor of building products in the United States. The Company
is headquartered in Atlanta, Georgia and operates its distribution
business through its national network of distribution centers.
BlueLinx is traded on the New York Stock Exchange under the symbol
BXC. Additional information about BlueLinx can be found on its
website at www.BlueLinxCo.com.
Forward-looking Statements
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements relating to our ability to
return to profitability, and our guidance regarding anticipated
financial results. All of these forward-looking statements are
based on estimates and assumptions made by our management that,
although believed by BlueLinx to be reasonable, are inherently
uncertain. Forward-looking statements involve risks and
uncertainties, including, but not limited to, economic,
competitive, governmental and technological factors outside of
BlueLinx’s control that may cause its business, strategy or actual
results to differ materially from the forward-looking statements.
These risks and uncertainties may include, among other things:
changes in the prices, supply and/or demand for products that it
distributes; general economic and business conditions in the United
States; the activities of competitors; changes in significant
operating expenses; changes in the availability of capital and
interest rates; adverse weather patterns or conditions; acts of
cyber intrusion; the Company’s ability to realize expected net
proceeds from its real estate sales optimization efforts to meet
the debt reduction obligations under the Company’s mortgage; and
other factors described in the “Risk Factors” section in the
Company’s Annual Report on Form 10-K for the year ended January 2,
2016, its Quarterly Reports on Form 10-Q, and in its periodic
reports filed with the Securities and Exchange Commission from time
to time. Given these risks and uncertainties, you are cautioned not
to place undue reliance on forward-looking statements. BlueLinx
undertakes no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events, and changes in expectation or otherwise, except as required
by law.
BlueLinx Contact Information:
Susan O’Farrell, SVP, CFO & Treasurer
BlueLinx Holdings Inc.
(770) 953-7000
Natalie Poulos, Investor Relations
BlueLinx Holdings Inc.
(770) 953-7522
investor.relations@bluelinxco.com
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Mar 2024 to Apr 2024
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Apr 2023 to Apr 2024