BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S.
wholesale distributor of building products, today reported
financial results for the three months ended April 1, 2023.
FIRST QUARTER 2023
HIGHLIGHTS(all comparisons are versus the prior year
period unless otherwise noted)
- Net sales of $798 million, a decrease of $504 million
- Gross profit of $134 million, gross margin of 16.7% and
specialty margin of 18.8%
- Net income of $18 million, or $1.94 diluted earnings per
share
- Adjusted net income of $23 million, or $2.53 adjusted diluted
earnings per share
- Adjusted EBITDA of $47 million, 5.9% of net sales
- Operating cash generated of $89 million and free cash flow of
$80 million
- Available liquidity increased to $723 million, including $376
million cash on hand
- Net debt of $195 million and net leverage ratio of 0.6x
“Our first quarter performance reflected the
continued execution of our long-term strategy in a challenging
market, guided by a continued focus on high-value specialty
categories and operational, pricing, and procurement excellence
across our distribution network,” stated Shyam Reddy, President and
CEO of BlueLinx. “Despite a decline in demand for building
products across our industry since late last year, we worked hard
to maintain both our price and cost discipline, resulting in solid
margin performance, lower operating expenses and strong operating
cash flow.”
“BlueLinx remains well-positioned for future
growth by leveraging its national scale, deep supplier and customer
relationships and fortified balance sheet,” continued Reddy. “We
will remain disciplined in our approach to capital allocation to
drive long-term value creation and we intend to repurchase $34
million of the company’s common stock under our existing $100
million dollar share repurchase program in the near term.”
FIRST QUARTER 2023 FINANCIAL
PERFORMANCE In the first quarter of 2023, net sales
were $798 million, a decrease of $504 million, or 39% when compared
to the first quarter of 2022. Gross profit was $134 million, a
decrease of $158 million, or 54%, year-over-year, and gross margin
was 16.7%, down 560 basis points from the same period last
year.
Net sales of specialty products, which includes
products such as engineered wood, siding, millwork, outdoor living,
industrial products and specialty lumber and panels, decreased $200
million, or 26%, to $568 million. This decline was due to lower
volume, primarily related to engineered wood products.
Gross profit from specialty product sales was $107 million, a
decrease of $77 million, or 42%, compared to the first quarter last
year. Gross margin was 18.8% compared to 24.0% in the prior year
period.
Net sales of structural products, which includes
products such as lumber, plywood, oriented strand board, rebar, and
remesh, decreased $304 million, or 57%, to $230 million in the
first quarter and gross profit from sales of structural products
decreased $80 million from $107 million in the prior year period.
The decrease in structural sales and gross profit was due primarily
to the year-over-year declines in the average composite price of
framing lumber and structural panels, which were 67% and 60%
respectively. Gross margin on structural product sales was 11.7% in
the first quarter, down from 20.0% in the prior year
period.
Selling, general and administrative (“SG&A”)
expenses were $91 million in the first quarter, including
approximately $2 million of incremental operating expenses related
to our acquisition of Vandermeer Forest Products, and was flat
versus the prior year period.
Net income was $18 million, or $1.94 per diluted
share, versus $133 million, or $13.19 per diluted share, in the
prior year period. Adjusted Net Income was $23 million, or $2.53
per diluted share compared to $136 million, or $13.44 per diluted
share in the first quarter of last year.
Adjusted EBITDA was $47 million, or 5.9% of net
sales, for the first quarter of 2023, as compared to $202 million,
or 15.5% of net sales in the first quarter of 2022, which was an
all-time high for Company quarterly Adjusted EBITDA.
Net cash generated from operating activities was
$89 million in the first quarter of 2023 compared to $2 million in
the prior year period, and free cash flow was $80 million. The
increase in cash generated during the first quarter was driven by a
net benefit from working capital, primarily related to a reduction
of about $75 million in specialty inventory.
CAPITAL ALLOCATION AND FINANCIAL
POSITIONDuring the first quarter, we invested $9 million
of cash in capital investments used to improve our distribution
facilities and upgrade our fleet, an increase of $6 million when
compared to the prior year period. Additionally, we have $34
million of share repurchase authorization remaining. Under our
remaining share repurchase authorization, we may repurchase our
common stock at any time or from time to time, without prior
notice, subject to prevailing market conditions and other
considerations.
As of April 1, 2023, total debt was $571
million, consisting of $300 million of senior secured notes that
mature in 2029 and $271 million of finance leases. Available
liquidity was $723 million which included an undrawn revolving
credit facility that had $346 million of availability plus cash and
cash equivalents of $376 million. Net debt was $195 million,
resulting in a net leverage ratio of 0.6x on trailing twelve-month
Adjusted EBITDA of $322 million.
MARKET AND SECOND QUARTER 2023
UPDATEOur end-markets, including repair and remodel, new
residential construction, and commercial construction, continue to
experience pressure from the higher interest rate environment and
economic uncertainty, resulting in lower activity levels and a
decrease in demand for building products. In the first quarter, we
experienced a meaningful decline in volume for some of our key
product categories, particularly those tied to new residential
construction like engineered wood products, associated with the
double-digit decline in single-family housing starts
year-over-year.
Through the first four weeks of the second
quarter of 2023, specialty product gross margin was in the range of
18% to 19% and structural product gross margin was in the range of
10% to 11%. Average daily sales volumes for both specialty and
structural products were slightly improved versus the first quarter
of 2023. The Company will continue to evaluate market pricing for
wood-based commodities and adjust accordingly at the end of each
period.
CONFERENCE CALL
INFORMATION BlueLinx will host a conference
call on May 3, 2023, 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/events-and-presentations/default.aspx,
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: |
1-877-407-4018 |
Passcode: |
13737817 |
To listen to a replay of the teleconference, which will be
available through May 17, 2023:
Domestic
Replay: |
1-844-512-2921 |
Passcode: |
13737817 |
ABOUT BLUELINXBlueLinx (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 our comprehensive range of products to approximately
15,000 customers including 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.
We are headquartered in Georgia, with executive offices located at
1950 Spectrum Circle, Marietta, Georgia, and we operate our
distribution business through a broad network of distribution
centers. BlueLinx encourages investors to visit its website,
www.BlueLinxCo.com, which is updated regularly with financial and
other important information about BlueLinx.
INVESTOR & MEDIA CONTACTS
Noel Ryan(720) 778-2415investor@bluelinxco.com
Marketing &
Communicationsmediarequest@bluelinxco.com
NON-GAAP
MEASURES 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 or in the
financial tables accompanying this news release. The Company
cautions that non-GAAP measures 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. Non-GAAP measures 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.
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.
Net Debt and Net Leverage Ratio. BlueLinx
calculates net debt as its total short- and long-term debt,
including outstanding balances under our senior secured notes and
revolving credit facility and the total amount of its obligations
under financing leases, less cash and cash equivalents. We believe
that net debt is useful to investors because our management reviews
our net debt 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 trailing twelve-month
Adjusted EBITDA. We believe that this ratio is useful to investors
because it is an indicator of our ability to meet our future
financial obligations. In addition, the ratio is a measure that is
frequently used by investors and creditors.
FORWARD-LOOKING STATEMENTSThis
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 confidence in the Company’s
long-term growth strategy; our ability to capitalize on
supplier-led price increases and our value-added services; our
areas of focus and management initiatives; the demand outlook for
construction materials and expectations regarding new home
construction, repair and remodel activity and continued investment
in existing and new homes; our positioning for long-term value
creation; our efforts and ability to generate profitable growth;
our ability to increase net sales in specialty product categories;
our ability to generate profits and cash from sales of specialty
products; our multi-year capital allocation plans; our ability to
manage volatility in wood-based commodities; our improvement in
execution and productivity; our efforts and ability to maintain a
disciplined capital structure and capital allocation strategy; our
ability to maintain a strong balance sheet; our ability to focus on
operating improvement initiatives and commercial excellence; and
whether or not the Company will continue any share repurchases.
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: pricing and product cost
variability; volumes of product sold; competition; changes in the
supply and/or demand for products that we distribute; the cyclical
nature of the industry in which we operate; housing market
conditions; 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; potential
acquisitions and the integration and completion of such
acquisitions; business disruptions; effective inventory management
relative to our sales volume or the prices of the products we
distribute; 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; 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 effect of global pandemics such
as COVID-19 and other widespread public health crisis and their
effects on our business ; 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 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; availability of third-part freight providers;
changes in insurance-related deductible/retention reserves based on
actual loss 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; changes in actuarial
assumptions for our pension plan; 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;
variable interest rate risk under certain indebtedness changes in,
or interpretation of, accounting principles; stock price
fluctuations; the possibility that we could be the subject of
securities class action litigation due to stock price volatility;
possibility of unfavorable research about our business or industry
or lack of coverage or reporting; activities of activist
shareholders; and indebtedness terms that limit our ability to pay
dividends on common stock.
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.
|
BLUELINX HOLDINGS INC.CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited) |
|
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands, except per share data) |
Net sales |
$ |
797,904 |
|
|
$ |
1,302,305 |
|
Cost of sales |
|
664,365 |
|
|
|
1,011,254 |
|
Gross profit |
|
133,539 |
|
|
|
291,051 |
|
Gross margin |
|
16.7 |
% |
|
|
22.3 |
% |
Operating expenses
(income): |
|
|
|
Selling, general, and administrative |
|
91,174 |
|
|
|
91,289 |
|
Depreciation and amortization |
|
7,718 |
|
|
|
6,746 |
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(984 |
) |
Other operating expenses |
|
3,116 |
|
|
|
838 |
|
Total operating expenses |
|
101,024 |
|
|
|
97,889 |
|
Operating income |
|
32,515 |
|
|
|
193,162 |
|
Non-operating expenses: |
|
|
|
Interest expense, net |
|
7,687 |
|
|
|
11,293 |
|
Other expense, net |
|
594 |
|
|
|
1,138 |
|
Income before provision for
income taxes |
|
24,234 |
|
|
|
180,731 |
|
Provision for income
taxes |
|
6,422 |
|
|
|
47,322 |
|
Net income |
$ |
17,812 |
|
|
$ |
133,409 |
|
|
|
|
|
Basic income per share |
$ |
1.96 |
|
|
$ |
13.72 |
|
Diluted income per share |
$ |
1.94 |
|
|
$ |
13.19 |
|
|
BLUELINX HOLDINGS INC.CONDENSED
CONSOLIDATED BALANCE
SHEETS(Unaudited) |
|
|
April 1, 2023 |
|
December 31, 2022 |
|
(In thousands, except share data) |
ASSETS |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
376,234 |
|
|
$ |
298,943 |
|
Accounts receivable, less allowances of $3,733 and $3,449,
respectively |
|
298,888 |
|
|
|
251,555 |
|
Inventories, net |
|
409,324 |
|
|
|
484,313 |
|
Other current assets |
|
29,295 |
|
|
|
42,121 |
|
Total current assets |
|
1,113,741 |
|
|
|
1,076,932 |
|
Property and equipment, at
cost |
|
365,667 |
|
|
|
360,869 |
|
Accumulated depreciation |
|
(157,807 |
) |
|
|
(155,260 |
) |
Property and equipment,
net |
|
207,860 |
|
|
|
205,609 |
|
Operating lease right-of-use
assets |
|
43,548 |
|
|
|
45,717 |
|
Goodwill |
|
55,372 |
|
|
|
55,372 |
|
Intangible assets, net |
|
33,879 |
|
|
|
34,989 |
|
Deferred tax assets |
|
55,956 |
|
|
|
56,169 |
|
Other non-current assets |
|
15,374 |
|
|
|
15,254 |
|
Total assets |
$ |
1,525,730 |
|
|
$ |
1,490,042 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current liabilities: |
|
|
|
Accounts payable |
$ |
177,046 |
|
|
$ |
151,626 |
|
Accrued compensation |
|
13,115 |
|
|
|
22,556 |
|
Finance lease liabilities - short-term |
|
5,087 |
|
|
|
7,089 |
|
Operating lease liabilities - short-term |
|
6,756 |
|
|
|
7,432 |
|
Real estate deferred gains - short-term |
|
3,935 |
|
|
|
3,935 |
|
Pension benefit obligation - short-term |
|
1,795 |
|
|
|
1,521 |
|
Other current liabilities |
|
20,619 |
|
|
|
16,518 |
|
Total current liabilities |
|
228,353 |
|
|
|
210,677 |
|
Non-current liabilities: |
|
|
|
Long-term debt, net of debt issuance costs of $3,854 and $4,057,
respectively |
|
292,753 |
|
|
|
292,424 |
|
Finance lease liabilities - long-term |
|
265,677 |
|
|
|
265,986 |
|
Operating lease liabilities - long-term |
|
38,142 |
|
|
|
40,011 |
|
Real estate deferred gains - long-term |
|
69,452 |
|
|
|
70,403 |
|
Other non-current liabilities |
|
20,604 |
|
|
|
20,512 |
|
Total liabilities |
|
914,981 |
|
|
|
900,013 |
|
Commitments and
contingencies |
|
|
|
STOCKHOLDERS' EQUITY: |
Common Stock, $0.01 par value, 20,000,000 shares authorized,
9,088,972 and 9,048,603 outstanding
on April 1, 2023, and December 31, 2022,
respectively |
|
91 |
|
|
|
90 |
|
Additional paid-in capital |
|
203,427 |
|
|
|
200,748 |
|
Accumulated other comprehensive loss |
|
(31,184 |
) |
|
|
(31,412 |
) |
Accumulated stockholders’ equity |
|
438,415 |
|
|
|
420,603 |
|
Total stockholders’
equity |
|
610,749 |
|
|
|
590,029 |
|
Total liabilities and
stockholders’ equity |
$ |
1,525,730 |
|
|
$ |
1,490,042 |
|
|
BLUELINX HOLDINGS INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited) |
|
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands) |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
17,812 |
|
|
$ |
133,409 |
|
Adjustments to reconcile net
income to cash provided by operations: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,718 |
|
|
|
6,746 |
|
Amortization of debt discount and issuance costs |
|
329 |
|
|
|
263 |
|
Deferred income tax |
|
213 |
|
|
|
(1,994 |
) |
Amortization of deferred gains from real estate |
|
(984 |
) |
|
|
(984 |
) |
Share-based compensation |
|
4,569 |
|
|
|
2,162 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
|
(47,333 |
) |
|
|
(157,419 |
) |
Inventories |
|
74,989 |
|
|
|
(74,097 |
) |
Accounts payable |
|
25,420 |
|
|
|
50,072 |
|
Taxes payable |
|
— |
|
|
|
47,057 |
|
Pension contributions |
|
— |
|
|
|
(221 |
) |
Other current assets |
|
5,953 |
|
|
|
(601 |
) |
Other assets and liabilities |
|
279 |
|
|
|
(2,156 |
) |
Net cash provided by operating
activities |
|
88,965 |
|
|
|
2,237 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Proceeds from sale of assets |
|
37 |
|
|
|
49 |
|
Property and equipment investments |
|
(9,008 |
) |
|
|
(2,509 |
) |
Net cash used in investing
activities |
|
(8,971 |
) |
|
|
(2,460 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Common stock repurchase and retirement |
|
— |
|
|
|
(6,427 |
) |
Repurchase of shares to satisfy employee tax withholdings |
|
(570 |
) |
|
|
(393 |
) |
Principal payments on finance lease liabilities |
|
(2,133 |
) |
|
|
(3,722 |
) |
Net cash used in financing
activities |
|
(2,703 |
) |
|
|
(10,542 |
) |
|
|
|
|
Net change in cash and cash
equivalents |
|
77,291 |
|
|
|
(10,765 |
) |
Cash and cash equivalents at
beginning of period |
|
298,943 |
|
|
|
85,203 |
|
Cash and cash equivalents at
end of period |
$ |
376,234 |
|
|
$ |
74,438 |
|
|
BLUELINX HOLDINGS INC.RECONCILIATION OF
NON-GAAP MEASUREMENTS(Unaudited) |
|
The following
schedule reconciles net income to Adjusted EBITDA: |
|
|
Three Months Ended |
|
Trailing Twelve Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands) |
|
(In thousands) |
Net income |
$ |
17,812 |
|
|
$ |
133,409 |
|
|
$ |
180,579 |
|
|
$ |
367,685 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,718 |
|
|
|
6,746 |
|
|
|
28,585 |
|
|
|
27,473 |
|
Interest expense, net |
|
7,687 |
|
|
|
11,293 |
|
|
|
38,666 |
|
|
|
38,962 |
|
Term loan debt issuance costs(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,603 |
|
Provision for income taxes |
|
6,422 |
|
|
|
47,322 |
|
|
|
57,685 |
|
|
|
123,319 |
|
Share-based compensation expense |
|
4,569 |
|
|
|
2,162 |
|
|
|
12,024 |
|
|
|
7,342 |
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(984 |
) |
|
|
(3,934 |
) |
|
|
(3,937 |
) |
Gain from sales of property(1) |
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
|
(7,140 |
) |
Pension termination and related expenses(1)(2) |
|
594 |
|
|
|
— |
|
|
|
594 |
|
|
|
— |
|
Acquisition-related costs(1)(3) |
|
100 |
|
|
|
— |
|
|
|
1,355 |
|
|
|
214 |
|
Restructuring and other(1)(4) |
|
3,016 |
|
|
|
2,338 |
|
|
|
6,982 |
|
|
|
4,278 |
|
Adjusted EBITDA |
$ |
46,934 |
|
|
$ |
202,286 |
|
|
$ |
322,392 |
|
|
$ |
559,799 |
|
|
|
|
|
|
|
|
|
(1) Reflects
non-recurring items of approximately $3.7 million in beneficial
items to the current quarter and approximately $2.3 million in
beneficial items to the same quarterly period of the prior year.
For the trailing twelve months ended, reflects approximately $8.8
million of non-recurring, beneficial items in the current period
and $1.0 million of non-recurring, non-beneficial items in the
prior period.
(2) Reflects expenses
related to our previously disclosed termination of the BlueLinx
Corporation Hourly Retirement Plan.
(3) Reflects
primarily legal, professional, technology and other integration
costs.
(4) Reflects costs
related to our restructuring efforts, such as severance, net of
other one-time non-operating items.
The following tables reconciles net income and diluted income
per share to adjusted net income and adjusted diluted income per
share:
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands, except per share data) |
Net income |
$ |
17,812 |
|
|
$ |
133,409 |
|
Adjustments: |
|
|
|
Share-based compensation expense |
|
4,569 |
|
|
|
2,162 |
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(984 |
) |
Pension termination and related expenses |
|
594 |
|
|
|
— |
|
Acquisition-related costs |
|
100 |
|
|
|
— |
|
Restructuring and other |
|
3,016 |
|
|
|
2,338 |
|
Tax impacts of reconciling items above (1) |
|
(1,933 |
) |
|
|
(921 |
) |
Adjusted net income |
$ |
23,174 |
|
|
$ |
136,004 |
|
|
|
|
|
Basic EPS |
$ |
1.96 |
|
|
$ |
13.72 |
|
Diluted EPS |
$ |
1.94 |
|
|
$ |
13.19 |
|
|
|
|
|
Weighted average shares
outstanding - Basic |
|
9,059 |
|
|
|
9,720 |
|
Weighted average shares
outstanding - Diluted |
|
9,157 |
|
|
|
10,113 |
|
|
|
|
|
Non-GAAP Adjusted Basic
EPS |
$ |
2.55 |
|
|
$ |
13.99 |
|
Non-GAAP Adjusted Diluted
EPS |
$ |
2.53 |
|
|
$ |
13.44 |
|
|
|
|
|
(1) Tax impact
calculated based on the effective tax rate for the respective
three-month periods presented.
The following schedule presents our Adjusted EBITDA margin as a
percentage of net sales:
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands) |
Net sales |
$ |
797,904 |
|
|
$ |
1,302,305 |
|
Adjusted EBITDA |
|
46,934 |
|
|
|
202,286 |
|
Adjusted EBITDA margin |
|
5.9 |
% |
|
|
15.5 |
% |
The following schedule presents our revenues disaggregated by
specialty and structural product category:
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands) |
Net sales by product
category |
|
|
|
Specialty products |
$ |
567,838 |
|
|
$ |
767,907 |
|
Structural products |
|
230,066 |
|
|
|
534,398 |
|
Total net sales |
$ |
797,904 |
|
|
$ |
1,302,305 |
|
|
|
|
|
Gross profit by product
category |
|
|
|
Specialty products |
$ |
106,627 |
|
|
$ |
184,099 |
|
Structural products |
|
26,912 |
|
|
|
106,952 |
|
Total gross profit |
$ |
133,539 |
|
|
$ |
291,051 |
|
|
|
|
|
Gross margin % by product
category |
|
|
|
Specialty products |
|
18.8 |
% |
|
|
24.0 |
% |
Structural products |
|
11.7 |
% |
|
|
20.0 |
% |
Total gross margin % |
|
16.7 |
% |
|
|
22.3 |
% |
The following schedule presents Net Debt and the Net Leverage
Ratio for the Trailing Twelve Months:
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands) |
Finance lease liabilities - short term |
$ |
5,087 |
|
|
$ |
7,264 |
|
Long term debt(1) |
|
300,000 |
|
|
|
300,000 |
|
Finance lease liabilities -
long term |
|
265,677 |
|
|
|
264,676 |
|
Total debt |
|
570,764 |
|
|
|
571,940 |
|
Less: available cash |
|
376,234 |
|
|
|
74,438 |
|
Net Debt |
|
194,530 |
|
|
|
497,502 |
|
Trailing twelve month Adjusted
EBITDA |
$ |
322,392 |
|
|
$ |
559,799 |
|
Net Leverage Ratio |
|
0.6x |
|
|
|
0.9x |
|
|
|
|
|
(1) For the three
months ended April 1, 2023 and April 2, 2022, our
long-term debt is comprised of $300.0 million of senior-secured
notes issued in October 2021. These notes are presented under the
long-term debt caption of our condensed consolidated balance sheets
at $292.8 million and $291.5 million at April 1, 2023 and
April 2, 2022, respectively. This presentation is net of their
discount of $3.4 million and $3.9 million and the combined carrying
value of our debt issuance costs of $3.9 million and $4.6 million
as of April 1, 2023 and April 2, 2022, respectively. Our
senior secured notes are presented in this table at their face
value for the purposes of calculating our net leverage ratio.
The following schedule presents free cash flow:
|
Three Months Ended |
|
April 1, 2023 |
|
April 2, 2022 |
|
(In thousands) |
Net cash provided by operating activities |
$ |
88,965 |
|
|
$ |
2,237 |
|
Less: Property and equipment
investments |
|
(9,008 |
) |
|
|
(2,509 |
) |
Free cash flow |
$ |
79,957 |
|
|
$ |
(272 |
) |
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