Wow....a once great company, Georgia Pacific Corp dumps the distribution division because of two good years to an unsuspecting Cerberus Capital Management group. Everyone expected closures and a fairly rapid demise even after the IPO at $13 and change when they became Bluelinx. 9 years later and they are finally getting around to it. The board is not blind.....they will dismantle this cash burner until the lipstick no longer melts and dump it or sell off every piece of real estate that will turn. They are not concerned about customers, employees, or the future....wake up.
Let me guess....another bitter ex-employee. Check your facts before you start spouting off. They have access to ample cash and they are no longer top heavy after the recent cut. New CEO will be announced soon. This company is a BARGAIN at $2.09. Hell, the real estate they own is worth more than $2.09/share.
With gross margins like they displayed they should shut the thing then & liquidate. I'm not an ex-employee either. This thing can't a break even though housing has been bouncing strongly. I've been a shareholder at times and it has nothing going for it. As for the access to cash what good is it if they just lose it as soon as they raise it?
If $2.09 is a BARGAIN, what is $1.99? Let me anwer that for you - the beginning of the end. Having access to ample cash does you no good when have a flawed business & can't turn a profit. More losses coming. They'll be broken up & sold off.
New single family home sales hit a 5 year high... a 497,000 adjusted annual rate. BlueLinx wasn't making big profits at an adjusted annual rate of one million. Even at a 5 year peak, it's less than half that figure. It's just not going to work in this size market.
Are you kidding me the only way they survive is to borrow more money, yes they got there credit raise again to 455 millions, they had two right offer on there stock to lower there debt which didn't happen they sold facility, Seattle and Hayward which they said to pay down there debt, still growing, now there shutting down 5 facility in their 3rd quater the busiest time of the year, that like Macy closing 5 stores during xmas, and actually in 2005 Cerbus refinanced all their facility, so there mortgage to the hilt, Universal forest made money last two years, Huttig lost 500,000 last year almost broke even they have a 60 million debt, Blue Linx has'nt made money in 7 years, they already lost 12.5 million first quater this year
We hope the steps this time work. There are a number of really good people that remain. People do business with people. Relationships matter in my 30 years in the business. Branches need to support the sales effort. We buy from a number of wholesalers and trust matters.