BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale
distributor of building products, today reported financial results
for the three months ended September 28, 2024.
THIRD QUARTER 2024 HIGHLIGHTS
- Net sales of $747 million
- Gross profit of $126 million, gross margin of 16.8% and
specialty product gross margin of 19.4%, which includes a net
benefit of approximately $3.5 million related to import duties from
prior periods
- Net income of $16 million, or $1.87 diluted earnings per
share
- Adjusted net income of $17 million, or $1.95 adjusted diluted
earnings per share
- Adjusted EBITDA of $37 million, or 4.9% of net sales, which
includes a net benefit of approximately $3.5 million related to
import duties from prior periods
- Operating cash flow of $62 million and free cash flow of $54
million
- Available liquidity of $873 million, including $526 million
cash and cash equivalents on hand
- $15 million in share repurchases, with $61 million remaining on
the share repurchase authorization as of quarter-end
“Our third quarter results delivered solid volume growth in
several of our key specialty product categories, as well as strong
volume growth across our structural products business,” said Shyam
Reddy, President and CEO of BlueLinx. “Specialty products’ gross
margins were within our expected range and structural products’
gross margins were strong, despite the effects of continued price
deflation for both product categories. Current market conditions
remain challenging, but we believe our growth strategy, significant
liquidity, and strong balance sheet will continue to position us
well for an industry rebound.”
“Our strong free cash flow generation of $54 million during the
third quarter resulted in a cash balance of $526 million and a net
leverage ratio of (1.2x),” said Andy Wamser, Senior Vice President,
Chief Financial Officer and Treasurer of BlueLinx. “During the
third quarter, we purchased $15 million of stock under our share
repurchase program, once again showing our commitment to returning
capital to shareholders. At the end of the quarter, we had $61
million remaining on our share repurchase authorization, and we
will continue to be opportunistic in the market.”
THIRD QUARTER 2024 FINANCIAL PERFORMANCE
In the third quarter of 2024, net sales were $747 million, a
decrease of $63 million, or 8% when compared to the third quarter
of 2023. Gross profit was $126 million, a decrease of $14 million,
or 10%, year-over-year, and gross margin was 16.8%, down 40 basis
points from the same period last year.
Net sales of specialty products, which includes products such as
engineered wood, siding, millwork, outdoor living, specialty lumber
and panels, and industrial products, were $519 million, a decrease
of $40 million, or 7.1% when compared to the third quarter of 2023.
This decrease was due to price deflation across specialty products,
partially offset by an increase in volumes. Gross profit from
specialty product sales was $100 million, a decrease of $10
million, or 9.4% when compared to the third quarter of last year.
Gross margin for specialty products was 19.4% compared to 19.8% in
the prior year period. The current period included a net benefit of
$3.5 million for import duty-related items from prior periods.
Excluding this benefit, gross margin was 18.7%. The duty items were
related to changes in retroactive rates for anti-dumping duties and
to classification adjustments for certain goods imported by the
Company.
Net sales of structural products, which includes products such
as lumber, plywood, oriented strand board, rebar, and remesh,
decreased $23 million, or 9.1% when compared to the third quarter
of 2023, to $228 million in the third quarter of 2024. The decrease
in structural sales was due to price deflation in both lumber and
panels, partially offset by an increase in volumes. Gross profit
from sales of structural products was $25 million, a decrease of $3
million from the prior year period, and gross margin was 11.0%,
compared to 11.3% in the prior year period. Gross profit and gross
margin for current period were positively impacted by a $2.4
million inventory write-down for certain structural products at the
end of the second quarter 2024 that resulted in lower cost of
products sold in the third quarter 2024 since substantially all of
the inventory associated with the write-down was sold during third
quarter of fiscal 2024. This adjustment increased the current
quarter’s gross margin for structural products by 100 basis points.
The third quarter of fiscal 2023 was negatively impacted by a $0.6
million interim period provision for inventory related to our
structural products.
Excluding the structural products inventory write-down at the
end of second quarter 2024 that benefited cost of products sold in
the current quarter, and the duty-related items for specialty
products, both totaling $5.9 million, Company gross margin was
16.0% for the third quarter.
Selling, general and administrative (“SG&A”) expenses were
$92 million in the third quarter of 2024, $1 million higher than
the prior year period. The year-over-year change in SG&A was
primarily due to higher technology expenses associated with our
digital transformation, partially offset by lower fleet-related
logistics costs.
Net income was $16 million, or $1.87 per diluted share, versus
$24 million, or $2.71 per diluted share, in the prior year period.
Adjusted Net Income was $17 million, or $1.95 per diluted share
compared to $27 million, or $2.98 per diluted share in the third
quarter of last year. The 2024 period reflects a pre-tax benefit of
$2.2 million related to an adjustment of the settlement charge
recorded in the fourth quarter of 2023 related to the termination
of our defined benefit pension plan. This benefit was partially
offset by $1.2 million of estimated net losses related to Hurricane
Helene in September 2024, which is reported within Other operating
expenses, net on our unaudited condensed consolidated statements of
operations.
Adjusted EBITDA was $37 million, or 4.9% of net sales, for the
third quarter of 2024, compared to $50 million, or 6.2% of net
sales in the third quarter of 2023. The current period includes the
benefit of the duty-related matters, and not including these items,
Adjusted EBITDA was $33 million, or 4.4% of net sales. Adjusted
EBITDA excludes the aforementioned adjustment of the pension
settlement and estimated insurance deductibles.
Net cash generated from operating activities was $62 million in
the third quarter of 2024 and free cash flow was $54 million. The
cash generated during the third quarter was driven by net income
and improved working capital.
CAPITAL ALLOCATION AND FINANCIAL POSITION
During the third quarter, we invested $8 million of cash in
capital investments primarily used to improve our distribution
facilities and for our digital transformation initiative.
Additionally, we purchased approximately $15 million of the
Company’s common stock through open market transactions under our
$100 million share repurchase program. At quarter-end, we had $61
million remaining under this authorization and we plan to continue
to be opportunistic with respect to repurchasing shares.
As of September 28, 2024, total debt and finance lease
obligations, but excluding real property finance lease obligations,
was $351 million. This consisted of $300 million of senior secured
notes that mature in 2029 and $51 million of finance lease
obligations for equipment. Net debt was ($176) million, which
consisted of total debt and finance leases excluding real property
finance lease obligations of $351 million less cash and cash
equivalents of $526 million, resulting in a net leverage ratio of
(1.2x) using a trailing twelve-month Adjusted EBITDA of $146
million. Available liquidity was $873 million which included an
undrawn revolving credit facility that had $346 million of
availability plus cash and cash equivalents of $526 million.
FOURTH QUARTER 2024 OUTLOOK
Through the first four weeks of the fourth quarter of 2024,
specialty product gross margin was in the range of 18% to 19% and
structural product gross margin was in the range of 9% to 10%.
Average daily sales volumes improved slightly versus the third
quarter of 2024.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on October 30, 2024, at
10:00 a.m. Eastern Time, accompanied by a supporting slide
presentation.
A webcast of the conference call and accompanying presentation
materials will be available in the Investor Relations section of
the BlueLinx website at https://investors.bluelinxco.com, and a
replay of the webcast will be available at the same site shortly
after the webcast is complete.
To participate in the live teleconference:
Domestic Live: 1-888-660-6392 Passcode: 9140086
To listen to a replay of the teleconference, which will be
available through November 13, 2024:
Domestic Replay: 1-800-770-2030 Passcode: 9140086
ABOUT BLUELINX
BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of
residential and commercial building products with both branded and
private-label SKUs across product categories such as lumber,
panels, engineered wood, siding, millwork, and industrial products.
With a strong market position, broad geographic coverage footprint
servicing 50 states, and the strength of a locally focused sales
force, we distribute a comprehensive range of products to our
customers which include national home centers, pro dealers,
cooperatives, specialty distributors, regional and local dealers
and industrial manufacturers. BlueLinx provides a wide range of
value-added services and solutions to our customers and suppliers,
and we operate our business through a broad network of distribution
centers. To learn more about BlueLinx, please visit
www.bluelinxco.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements.
Forward-looking statements include, without limitation, any
statement that predicts, forecasts, indicates or implies future
results, performance, liquidity levels or achievements, and may
contain the words “believe,” “anticipate,” “could,” “expect,”
“estimate,” “intend,” “may,” “project,” “plan,” “should,” “will,”
“will be,” “will likely continue,” “will likely result,” “would,”
or words or phrases of similar meaning.
The forward-looking statements in this press release include
statements about our strategy, liquidity, and debt, our long-run
positioning relative to industry conditions, future share
repurchases, and the information set forth under the heading “Third
Quarter 2024 Outlook”.
Forward-looking statements in this press release are based on
estimates and assumptions made by our management that, although
believed by us to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties that may
cause our business, strategy, or actual results to differ
materially from the forward-looking statements. These risks and
uncertainties include those discussed in greater detail in our
filings with the Securities and Exchange Commission. We operate in
a changing environment in which new risks can emerge from time to
time. It is not possible for management to predict all of these
risks, nor can it assess the extent to which any factor, or a
combination of factors, may cause our business, strategy, or actual
results to differ materially from those contained in
forward-looking statements. Factors that may cause these
differences include, among other things: housing market conditions;
pricing and product cost variability; volumes of product sold;
competition; the cyclical nature of the industry in which we
operate; consolidation among competitors, suppliers, and customers;
disintermediation risk; loss of products or key suppliers and
manufacturers; our dependence on international suppliers and
manufacturers for certain products; effective inventory management
relative to our sales volume or the prices of the products we
produce; business disruptions; potential acquisitions and the
integration and completion of such acquisitions; information
technology security risks and business interruption risks; the
ability to attract, train, and retain highly qualified associates
and other key personnel while controlling related labor costs;
exposure to product liability and other claims and legal
proceedings related to our business and the products we distribute;
natural disasters, catastrophes, fire, wars or other unexpected
events; the impacts of climate change; successful implementation of
our strategy; wage increases or work stoppages by our union
employees; costs imposed by federal, state, local, and other
regulations; compliance costs associated with federal, state, and
local environmental protection laws; the effects of epidemics,
global pandemics or other widespread public health crises and
governmental rules and regulations; fluctuations in our operating
results; our level of indebtedness and our ability to incur
additional debt to fund future needs; the covenants of the
instruments governing our indebtedness limiting the discretion of
our management in operating the business; the potential to incur
more debt; the fact that we have consummated certain sale leaseback
transactions with resulting long-term non-cancelable leases, many
of which are or will be finance leases; the fact that we lease many
of our distribution centers, and we would still be obligated under
these leases even if we close a leased distribution center;
inability to raise funds necessary to finance a required repurchase
of our senior secured notes; a lowering or withdrawal of debt
ratings; changes in our product mix; increases in fuel and other
energy prices or availability of third-party freight providers;
changes in insurance-related deductible/retention reserves based on
actual loss development experience; the possibility that the value
of our deferred tax assets could become impaired; changes in our
expected annual effective tax rate could be volatile; the costs and
liabilities related to our participation in multi-employer pension
plans could increase; the risk that our cash flows and capital
resources may be insufficient to service our existing or future
indebtedness; interest rate risk, which could cause our debt
service obligations to increase; and changes in, or interpretation
of, accounting principles.
Given these risks and uncertainties, we caution you not to place
undue reliance on forward-looking statements. We expressly disclaim
any obligation to update or revise any forward-looking statement as
a result of new information, future events or otherwise, except as
required by law.
NON-GAAP MEASURES AND SUPPLEMENTAL FINANCIAL
INFORMATION
The Company reports its financial results in accordance with
GAAP. The Company also believes that presentation of certain
non-GAAP measures may be useful to investors and may provide a more
complete understanding of the factors and trends affecting the
business than using reported GAAP results alone. Any non-GAAP
measures used herein are reconciled to their most directly
comparable GAAP measures herein in the “Reconciliation of Non-GAAP
Measurements” table later in this release. The Company cautions
that non-GAAP measures are not intended to present superior
measures of our financial condition from those measures determined
under GAAP and should be considered in addition to, but not as a
substitute for, the Company’s reported GAAP results. The Company
further cautions that its non-GAAP measures, as used herein, are
not necessarily comparable to other similarly titled measures of
other companies due to differences in methods of calculation.
Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines
Adjusted EBITDA as an amount equal to net income (loss) plus
interest expense and all interest expense related items, income
taxes, depreciation and amortization, and further adjusted for
certain non-cash items and other special items, including
compensation expense from share based compensation, one-time
charges associated with the legal, consulting, and professional
fees related to our merger and acquisition activities, gains or
losses on sales of properties, amortization of deferred gains on
real estate, and expense associated with our restructuring
activities, such as severance, in addition to other significant
and/or one-time, nonrecurring, non-operating items.
The Company presents Adjusted EBITDA because it is a primary
measure used by management to evaluate operating performance.
Management believes this metric helps to enhance investors’ overall
understanding of the financial performance and cash flows of the
business. Management also believes Adjusted EBITDA is helpful in
highlighting operating trends. Adjusted EBITDA is frequently used
by securities analysts, investors, and other interested parties in
their evaluation of companies, many of which present an Adjusted
EBITDA measure when reporting their results.
We determine our Adjusted EBITDA Margin, which we sometimes
refer to as our Adjusted EBITDA as a percentage of net sales, by
dividing our Adjusted EBITDA for the applicable period by our net
sales for the applicable period. We believe that this ratio is
useful to investors because it more clearly defines the quality of
earnings and operational efficiency of translating sales to
profitability.
Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx
defines Adjusted Net Income as Net Income adjusted for certain
non-cash items and other special items, including compensation
expense from share based compensation, one-time charges associated
with the legal, consulting, and professional fees related to our
merger and acquisition activities, gains or losses on sales of
properties, amortization of deferred gains on real estate, and
expense associated with our restructuring activities, such as
severance, in addition to other significant and/or one-time,
nonrecurring, non-operating items, further adjusted for the tax
impacts of such reconciling items. BlueLinx defines Adjusted
Earnings Per Share (basic and/or diluted) as the Adjusted Net
Income for the period divided by the weighted average outstanding
shares (basic and/or diluted) for the periods presented. We believe
that Adjusted Net Income and Adjusted Earnings Per Share (basic
and/or diluted) are useful to investors to enhance investors’
overall understanding of the financial performance of the business.
Management also believes Adjusted Net Income and Adjusted Earnings
Per Share (basic and/or diluted) are helpful in highlighting
operating trends.
Our Adjusted Net Income and Adjusted Earnings Per Share (basic
and/or diluted) are not presentations made in accordance with GAAP
and are not intended to present superior measures of our financial
condition from those measures determined under GAAP. Adjusted Net
Income and Adjusted Earnings Per Share (basic or diluted), as used
herein, are not necessarily comparable to other similarly titled
captions of other companies due to differences in methods of
calculation. These non-GAAP measures are reconciled in the
“Reconciliation of Non-GAAP Measurements” table later in this
release.
Free Cash Flow. BlueLinx defines free cash flow as net cash
provided by operating activities less total capital expenditures.
Free cash flow is a measure used by management to assess our
financial performance, and we believe it is useful for investors
because it relates the operating cash flow of the Company to the
capital that is spent to continue and improve business operations.
In particular, free cash flow indicates the amount of cash
generated after capital expenditures that can be used for, among
other things, investment in our business, strengthening our balance
sheet, and repayment of our debt obligations. Free cash flow does
not represent the residual cash flow available for discretionary
expenditures since there may be other nondiscretionary expenditures
that are not deducted from the measure. Free cash flow is not a
presentation made in accordance with GAAP and is not intended to
present a superior measure of financial condition from those
determined under GAAP. Free cash flow, as used herein, is not
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation. This
non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP
Measurements” table later in this release.
Net Debt, Net Debt Excluding Real Property Finance Lease
Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio
Excluding Real Property Finance Lease Liabilities. BlueLinx
calculates Net Debt as its total short- and long-term debt,
including outstanding balances under our term loan and revolving
credit facility and the total amount of its obligations under
finance leases, less cash and cash equivalents. Net Debt Excluding
Real Property Finance Lease Liabilities is calculated in the same
manner as Net Debt, except the total amount of obligations under
real estate finance leases are excluded. Although our credit
agreements do not contain leverage covenants, a net leverage ratio
excluding finance lease obligations for real property is included
within the terms of our revolving credit agreement. We believe that
Net Debt and Net Debt Excluding Real Property Finance Lease
Liabilities are useful to investors because our management reviews
both metrics as part of its management of overall liquidity,
financial flexibility, capital structure and leverage, and
creditors and credit analysts monitor our net debt as part of their
assessments of our business. We determine our Overall Net Leverage
Ratio by dividing our Net Debt by Twelve-Month Trailing Adjusted
EBITDA. Our calculation of Net Leverage Ratio Excluding Real
Property Finance Lease Liabilities is determined by dividing our
Net Debt Excluding Real Property Finance Lease Liabilities by
Twelve-Month Trailing Adjusted EBITDA. We believe that these ratios
are useful to investors because they are indicators of our ability
to meet our future financial obligations. In addition, our Net
Leverage Ratio is a measure that is frequently used by investors
and creditors. Our Net Debt, Net Debt Excluding Real Property
Finance Lease Liabilities, Overall Net Leverage Ratio, and Net
Leverage Ratio Excluding Real Property Finance Lease Liabilities
are not made in accordance with GAAP and are not intended to
present a superior measure of our financial condition from measures
and ratios determined under GAAP. The calculations of our Net Debt,
Net Debt Excluding Real Property Finance Lease Liabilities, Overall
Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property
Finance Lease Liabilities are presented in the table on page 8. Net
Debt, Net Debt Excluding Real Property Finance Lease Liabilities,
Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real
Property Finance Lease Liabilities, as used herein, are not
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation.
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(In thousands, except per share
amounts)
Net sales
$
747,288
$
809,981
$
2,241,895
$
2,423,852
Cost of products sold
621,619
670,735
1,866,101
2,015,264
Gross profit
125,669
139,246
375,794
408,588
Gross margin
16.8
%
17.2
%
16.8
%
16.9
%
Operating expenses (income):
Selling, general, and administrative
92,210
91,354
272,913
271,278
Depreciation and amortization
9,530
8,089
29,083
23,758
Amortization of deferred gains on real
estate
(984
)
(984
)
(2,952
)
(2,952
)
Other operating expenses, net
888
1,131
1,210
5,240
Total operating expenses
101,644
99,590
300,254
297,324
Operating income
24,025
39,656
75,540
111,264
Non-operating expenses:
Interest expense, net
4,619
5,577
14,044
19,575
Settlement of defined benefit pension
plan
(2,226
)
—
(2,226
)
—
Other expense, net
—
594
—
1,782
Income before provision for income
taxes
21,632
33,485
63,722
89,907
Provision for income taxes
5,616
9,103
15,878
23,247
Net income
$
16,016
$
24,382
$
47,844
$
66,660
Basic earnings per share
$
1.88
$
2.72
$
5.54
$
7.39
Diluted earnings per share
$
1.87
$
2.71
$
5.53
$
7.38
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
September 28, 2024
December 30, 2023
(In thousands, except share
data)
ASSETS
Current assets:
Cash and cash equivalents
$
526,281
$
521,743
Receivables, less allowances of $3,244 and
$3,398, respectively
278,049
228,410
Inventories, net
340,541
343,638
Other current assets
36,500
26,608
Total current assets
1,181,371
1,120,399
Property and equipment, at cost
423,842
396,321
Accumulated depreciation
(187,992
)
(170,334
)
Property and equipment, net
235,850
225,987
Operating lease right-of-use assets
45,647
37,227
Goodwill
55,372
55,372
Intangible assets, net
27,834
30,792
Deferred income tax asset, net
51,306
53,256
Other non-current assets
13,699
14,568
Total assets
$
1,611,079
$
1,537,601
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
186,319
$
157,931
Accrued compensation
18,400
14,273
Finance lease liabilities - current
12,547
11,178
Operating lease liabilities - current
8,276
6,284
Real estate deferred gains - current
3,935
3,935
Other current liabilities
28,247
24,961
Total current liabilities
257,724
218,562
Long-term debt
294,733
293,743
Finance lease liabilities, less current
portion
281,263
274,248
Operating lease liabilities, less current
portion
38,752
32,519
Real estate deferred gains, less current
portion
64,280
66,599
Other non-current liabilities
18,738
17,644
Total liabilities
955,490
903,315
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.01 par value,
30,000,000 shares authorized, none outstanding
—
—
Common Stock, $0.01 par value, 20,000,000
shares authorized, 8,423,383 and 8,650,046 outstanding,
respectively
84
87
Additional paid-in capital
138,522
165,060
Retained earnings
516,983
469,139
Total stockholders’ equity
655,589
634,286
Total liabilities and stockholders’
equity
$
1,611,079
$
1,537,601
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(In thousands)
Cash flows from operating
activities:
Net income
$
16,016
$
24,382
$
47,844
$
66,660
Adjustments to reconcile net income to
cash provided by operations:
Depreciation and amortization
9,530
8,089
29,083
23,758
Amortization of debt discount and issuance
costs
330
330
990
989
Settlement of frozen defined benefit
pension plan
(2,226
)
—
(2,226
)
—
Provision for deferred income taxes
2,371
567
1,950
1,117
Amortization of deferred gains from real
estate
(984
)
(984
)
(2,952
)
(2,952
)
Share-based compensation
3,186
2,980
6,941
9,475
Changes in operating assets and
liabilities:
Accounts receivable
(2,286
)
(3,227
)
(47,413
)
(46,013
)
Inventories
17,032
15,150
3,097
120,151
Accounts payable
7,809
11,287
27,932
49,791
Other current assets
(280
)
5,790
(9,892
)
2,621
Other assets and liabilities
11,268
13,242
11,080
5,127
Net cash provided by operating
activities
61,766
77,606
66,434
230,724
Cash flows from investing
activities:
Proceeds from sale of assets
565
63
839
191
Property and equipment investments
(7,929
)
(4,899
)
(19,830
)
(18,938
)
Net cash used in investing activities
(7,364
)
(4,836
)
(18,991
)
(18,747
)
Cash flows from financing
activities:
Common stock repurchase and retirement
(15,453
)
(17,722
)
(29,982
)
(29,321
)
Repurchase of shares to satisfy employee
tax withholdings
(805
)
(1,197
)
(3,257
)
(5,157
)
Principal payments on finance lease
liabilities
(3,255
)
(2,393
)
(9,666
)
(6,659
)
Net cash used in financing activities
(19,513
)
(21,312
)
(42,905
)
(41,137
)
Net change in cash and cash
equivalents
34,889
51,458
4,538
170,840
Cash and cash equivalents at beginning of
period
491,392
418,325
521,743
298,943
Cash and cash equivalents at end of
period
$
526,281
$
469,783
$
526,281
$
469,783
The following schedule presents our
revenues disaggregated by specialty and structural product
category:
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(Dollar amounts in thousands)
Net sales by product category
Specialty products
$
519,000
$
558,851
$
1,562,300
$
1,697,679
Structural products
228,288
251,130
679,595
726,173
Total net sales
$
747,288
$
809,981
$
2,241,895
$
2,423,852
Gross profit by product category
Specialty products
$
100,479
$
110,898
$
308,878
$
326,366
Structural products
25,190
28,348
66,916
82,222
Total gross profit
$
125,669
$
139,246
$
375,794
$
408,588
Gross margin % by product category
Specialty products
19.4
%
19.8
%
19.8
%
19.2
%
Structural products
11.0
%
11.3
%
9.8
%
11.3
%
Company gross margin %
16.8
%
17.2
%
16.8
%
16.9
%
BLUELINX HOLDINGS INC.
RECONCILIATION OF NON-GAAP
MEASUREMENTS
(Unaudited)
The following two tables reconcile Net
income to Adjusted EBITDA (non-GAAP) for the reporting periods
indicated:
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(In thousands)
Net income
$
16,016
$
24,382
$
47,844
$
66,660
Adjustments:
Depreciation and amortization
9,530
8,089
29,083
23,758
Interest expense, net
4,619
5,577
14,044
19,575
Provision for income taxes
5,616
9,103
15,878
23,247
Share-based compensation expense
3,186
2,980
6,941
9,475
Amortization of deferred gains on real
estate
(984
)
(984
)
(2,952
)
(2,952
)
Gain from sales of property(1)
(272
)
—
(272
)
—
Pension settlement and related
cost(1)(2)
(2,226
)
594
(2,226
)
1,782
Acquisition-related costs(1)(3)(5)
—
75
—
92
Restructuring and other(1)(4)(5)
1,160
606
1,481
4,699
Adjusted EBITDA
$
36,645
$
50,422
$
109,821
$
146,336
Trailing Twelve Months
Ended
September 28, 2024
December 30, 2023
September 30, 2023
(In thousands)
Net income
$
29,720
$
48,536
$
98,646
Adjustments:
Depreciation and amortization
37,368
32,043
31,419
Interest expense, net
18,215
23,746
28,855
Provision for income taxes
25,981
33,350
31,988
Share-based compensation expense
9,521
12,055
13,063
Amortization of deferred gains on real
estate
(3,934
)
(3,934
)
(3,935
)
Gain from sales of property(1)
(272
)
—
—
Pension settlement and related
cost(1)(2)
28,808
32,817
1,782
Acquisition-related costs(1)(3)(5)
186
278
1,114
Restructuring and other(1)(4)(5)
697
3,913
6,503
Adjusted EBITDA
$
146,290
$
182,804
$
209,435
The following notes relate to both of the
tables presented above for Adjusted EBITDA:
(1)
Reflects non-recurring items of
approximately $1.3 million in non-beneficial items in the current
quarter and $1.3 million in beneficial items in the prior quarterly
period. For the current year nine-month period, reflects
non-recurring non-beneficial items of approximately $1.0 million
and the prior year nine-month period reflects $6.6 million of
non-recurring, beneficial items. For the trailing twelve months
ended, reflects approximately $29.4 million of non-recurring,
beneficial items, and approximately $9.4 million of non-recurring,
beneficial items, in the prior trailing twelve- month period.
(2)
Reflects expenses related to our
previously disclosed settlement of the BlueLinx Corporation Hourly
Retirement Plan (defined benefit) in 4Q 2023.
(3)
Reflects primarily legal, professional,
technology and other integration costs.
(4)
Reflects net losses related to Hurricane
Helene in 3Q 2024, our 2023 restructuring efforts such as
severance, net of other one-time non-operating items in 2024 and
2023.
(5)
Certain amounts for periods in fiscal 2023
have been reclassified for Acquisition-related costs and
Restructuring and other.
The following tables reconciles Net income
and Diluted earnings per share to Adjusted net income (non-GAAP)
and Adjusted diluted earnings per share (non-GAAP):
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(In thousands, except per share
data)
Net income
$
16,016
$
24,382
$
47,844
$
66,660
Adjustments:
Share-based compensation expense
3,186
2,980
6,941
9,475
Amortization of deferred gains on real
estate
(984
)
(984
)
(2,952
)
(2,952
)
Gain from sale of property
(272
)
—
(272
)
—
Pension settlement and related cost
(2,226
)
594
(2,226
)
1,782
Acquisition-related costs (2)
—
75
—
92
Restructuring and other (2)
1,160
606
1,481
4,699
Tax impacts of reconciling items above
(1)
(224
)
(889
)
(741
)
(3,387
)
Adjusted net income
$
16,656
$
26,764
$
50,075
$
76,369
Basic EPS
$
1.88
$
2.72
$
5.54
$
7.39
Diluted EPS
$
1.87
$
2.71
$
5.53
$
7.38
Weighted average shares outstanding -
Basic
8,496
8,936
8,623
9,010
Weighted average shares outstanding -
Diluted
8,528
8,970
8,647
9,027
Non-GAAP Adjusted Basic EPS
$
1.96
$
2.99
$
5.80
$
8.47
Non-GAAP Adjusted Diluted EPS
$
1.95
$
2.98
$
5.79
$
8.45
(1)
Tax impact calculated based on the
effective income tax rate for the respective three and nine-month
periods presented
(2)
Certain amounts for prior periods in
fiscal 2023 have been reclassified for Acquisition-related costs
and Restructuring and other
In the following table, our Adjusted
EBITDA margin (non-GAAP) is calculated and compared to Net income
as a percentage of Net sales:
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(Dollar amounts in thousands)
Net sales
$
747,288
$
809,981
$
2,241,895
$
2,423,852
Net income
$
16,016
$
24,382
$
47,844
$
66,660
Net income as a percentage of Net
sales
2.1
%
3.0
%
2.1
%
2.8
%
Net sales
$
747,288
$
809,981
$
2,241,895
$
2,423,852
Adjusted EBITDA - non-GAAP(1)
$
36,645
$
50,422
$
109,821
$
146,336
Adjusted EBITDA margin - non-GAAP
4.9
%
6.2
%
4.9
%
6.0
%
(1)
See the table that reconciles Net income
to Adjusted EBITDA (non-GAAP)
The following schedule reconciles Total
debt and finance leases to: Net debt (non-GAAP) and to Net debt
excluding finance lease liabilities for real property (non-GAAP).
The calculations of Net leverage ratio (non-GAAP) and Net leverage
ratio excluding real property finance leases liabilities (non-GAAP)
are also presented.
As of
September 28, 2024
December 30, 2023
September 30, 2023
($ amounts in thousands)
Long term debt(1)
$
300,000
$
300,000
$
300,000
Finance lease liabilities for equipment
and vehicles
50,752
42,252
34,008
Finance lease liabilities for real
property
243,058
243,174
243,335
Total debt and finance leases
593,810
585,426
577,343
Less: available cash and cash
equivalents
526,281
521,743
469,783
Net debt (non-GAAP)
$
67,529
$
63,683
$
107,560
Net debt, excluding finance lease
liabilities for real property (non-GAAP)
$
(175,529
)
$
(179,491
)
$
(135,775
)
Trailing twelve-month adjusted EBITDA
(non-GAAP, see above reconciliations)
$
146,290
$
182,804
$
209,435
Net leverage ratio
0.5x
0.3x
0.5x
Net leverage ratio excluding real
property finance lease liabilities(2)
(1.2x)
(1.0x)
(0.6x)
(1)
As of September 28, 2024, December 30,
2023, and September 30, 2023, our long-term debt is comprised of
$300 million of senior-secured notes issued in October 2021. These
notes are presented under the long-term debt caption of our
unaudited condensed consolidated balance sheets at $294.7 million,
$293.7 million, and $293.4 million as of September 28, 2024,
December 30, 2023, and September 30, 2023, respectively. This
presentation is net of their unamortized issuance costs and
discount. Our senior secured notes are presented in this table at
their face value for the purposes of calculating our net leverage
ratio.
(2)
Net leverage ratio excluding finance lease
obligations for real property is included within the terms of our
revolving credit agreement.
The following schedule reconciles Net cash
provided by operating activities to Free cash flow (non-GAAP):
Three Months Ended
Nine Months Ended
September 28, 2024
September 30, 2023
September 28, 2024
September 30, 2023
(In thousands)
Net cash provided by operating
activities
$
61,766
$
77,606
$
66,434
$
230,724
Less: Property and equipment
investments
(7,929
)
(4,899
)
(19,830
)
(18,938
)
Free cash flow - non-GAAP
$
53,837
$
72,707
$
46,604
$
211,786
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241029284536/en/
Tom Morabito Investor Relations Officer (470) 394-0099
investor@bluelinxco.com
Grafico Azioni BlueLinx (NYSE:BXC)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni BlueLinx (NYSE:BXC)
Storico
Da Dic 2023 a Dic 2024