BlueLinx Holdings, Inc. (NYSE:BXC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 10:00 am ET

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BlueLinx Holdings, Inc. (NYSE:BXC) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Kelly C. Janzen

term loan and revolving credit facility was reduced by $125 million over the prior year period. It's also worth noting that the reduction in bank debt contributed to an overall decrease in our interest expense of approximately $2 million year-over-year.

As you may recall, early in the pandemic, we were able to prepare for a downside scenario when we amended, at no cost to the company, the minimum term loan leverage ratio to 8.75 for both the second and third quarters of 2020. We ended the second quarter at 4.86, well below the required ratio. Even with this significant cushion, we will continue to look for opportunities to pay down the term loan to below $45 million, which would eliminate the levered ratio requirement in its entirety.

One vehicle for debt reduction to pay down the term loan is the continued monetization of our owned real estate, which is valued at approximately $40 million. While activity slowed early in the quarter due to uncertainties related to COVID-19, industrial real estate markets are recovering. Three of the 13 remaining owned properties valued at approximately $8 million are considered dark properties and are available for sale, while the other 10 are still operating. We are also actively pursuing potential additional sale leasebacks of certain properties and will keep you updated on our progress.

The past quarter was certainly an unusual first full quarter for me, but I am very proud of the BlueLinx team and our accomplishments in an incredibly challenging environment. While there is still uncertainty as to future impacts that the pandemic may bring, we feel that we are better prepared than we have ever been to manage through potential challenges. Our improved liquidity, fixed cost structure and operational discipline provide a stronger platform to execute on our financial and business objectives in the near term.

Now I'd like to open the line for any questions.