BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale
distributor of building products, today reported financial results
for the three months ended September 30, 2023.
THIRD QUARTER
2023 HIGHLIGHTS(all comparisons
are versus the prior year period unless otherwise noted)
- Net sales of $810 million
- Gross profit of $139 million, gross margin of 17.2% and
specialty product gross margin of 19.8%
- Net income of $24 million, or $2.71 diluted earnings per
share
- Adjusted net income of $27 million, or $2.98 adjusted diluted
earnings per share
- Adjusted EBITDA of $50 million, 6.2% of net sales
- Operating cash generated of $78 million and free cash flow of
$73 million
- Available liquidity of $816 million, including $470 million
cash on hand
- Net debt of $107 million and net leverage ratio of 0.5x
- Completion of $18 million in share repurchases
- Announcement of new $100 million share repurchase
authorization
“Our third quarter results demonstrate our
ability to execute on our strategy, despite a challenging interest
rate environment adversely impacting the housing and building
products sector,” said Shyam Reddy, President, and CEO of BlueLinx.
“We were pleased with our financial results, especially our strong
margins in specialty products which accounted for about 70% of our
net sales. Structural products also had solid margins and continue
to support our specialty business. In addition, we returned $18
million to shareholders under our previous $100 million share
repurchase program, which is now complete. Today we announced a new
$100 million share repurchase authorization, further
demonstrating our commitment to returning capital to
shareholders.”
“Our continued strong free cash flow generation
contributed to ending the quarter with $470 million in cash on hand
and net leverage of 0.5x.” said Andy Wamser, Chief Financial
Officer of BlueLinx. “We remain focused on growing our higher
margin specialty business, continuing to make improvements in our
operations, and maintaining a consistent and balanced approach to
capital allocation to drive long-term shareholder value.”
THIRD QUARTER
2023 FINANCIAL PERFORMANCE
In the third quarter of 2023, net sales were
$810 million, a decrease of $251 million, or 24% when compared to
the third quarter of 2022. Gross profit was $139
million, a decrease of $50 million, or 26%, year-over-year, and
gross margin was 17.2%, down 70 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 $559
million, a decrease of $165 million, or 23% when compared to the
third quarter of 2022. This decline was due to a combination of
deflation and lower volumes across several specialty categories.
Gross profit from specialty product sales was $111 million, a
decrease of $41 million, or 27% when compared to the third quarter
of last year. Gross margin was 19.8% compared to 20.9% in the prior
year period.
Net sales of structural products, which includes
products such as lumber, plywood, oriented strand board, rebar, and
remesh, decreased $85 million, or 25%, to $251 million in the third
quarter. The decrease in structural sales was due primarily to the
year-over-year declines in the average composite prices of framing
lumber and structural panels of 26% and 6%, respectively. Gross
profit from sales of structural products was $28 million, a
decrease of $10 million from the prior year period, and gross
margin was 11.3%, flat versus the prior year period.
Selling, general and administrative (“SG&A”)
expenses were $91 million in the third quarter of 2023, $0.3
million lower than the prior year period. The year-over-year
decrease in SG&A was primarily due to lower delivery costs,
offset by higher operating expenses associated with the Vandermeer
acquisition.
Net income was $24 million, or $2.71 per diluted
share, versus $60 million, or $6.38 per diluted share, in the prior
year period. Adjusted Net Income was $27 million, or $2.98 per
diluted share compared to $61 million, or $6.56 per diluted share
in the third quarter of last year.
Adjusted EBITDA was $50 million, or 6.2% of net
sales, for the third quarter of 2023, as compared to $100 million,
or 9.4% of net sales in the third quarter of 2022.
Net cash generated from operating activities was
$78 million in the third quarter of 2023 and free cash flow was $73
million. The cash generated during the third quarter was driven by
net income and a net benefit from working capital, primarily
related to a reduction of approximately $15 million in
inventory.
CAPITAL ALLOCATION AND FINANCIAL
POSITIONDuring the third quarter, BlueLinx invested $5
million of cash in capital investments used to improve its
distribution facilities and upgrade its fleet. Additionally, the
Company purchased approximately $18 million of the Company’s common
stock through open market transactions under its previous $100
million share repurchase program, which, as of early October, is
now complete.
Our Board of Directors has approved a new share
repurchase authorization of $100 million. Under the share
repurchase authorization, the Company may repurchase its common
stock from time to time, without prior notice, subject to
prevailing market conditions and other considerations.
As of September 30, 2023, total debt was
$577 million, consisting of $300 million of senior secured notes
that mature in 2029 and $277 million of finance leases. Available
liquidity was $816 million which included an undrawn revolving
credit facility that had $346 million of availability plus cash and
cash equivalents of $470 million. Net debt was approximately $107
million, resulting in a net leverage ratio of 0.5x on trailing
twelve-month Adjusted EBITDA of $209 million.
FOURTH QUARTER 2023
OUTLOOKThrough the first four weeks of the fourth quarter
of 2023, specialty product gross margin was in the range of 18% to
19% with average daily volumes slightly down compared to what we
experienced during the third quarter of 2023, but in line with
historical seasonality. Structural product gross margin was in the
range of 9% to 10%, with average daily sales volumes slightly up
compared to the third quarter of 2023.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on November 1, 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, 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 |
| International Live: |
|
1-201-689-8471 |
| |
|
|
| To listen to a replay of the teleconference, which
will be available through November 15, 2023: |
| |
|
|
| Domestic Replay: |
|
1-844-512-2921 |
| International Replay: |
|
1-412-317-6671 |
| Passcode: |
|
13741137 |
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.
CONTACT Tom MorabitoInvestor
Relations Officer(470) 394-0099investor@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 (basic and/or diluted). 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 to 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
constraints, volatility or disruptions in the capital markets or
other factors affecting the amount and timing of share repurchases
and whether or not the Company will continue, and the timing of,
any open market 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; costs associated with federal law
and regulations regarding importation of products; 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 |
|
Nine Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (In thousands, except
per share data) |
|
|
|
|
|
|
|
|
Net sales |
$ |
809,981 |
|
|
$ |
1,060,761 |
|
|
$ |
2,423,852 |
|
|
$ |
3,602,445 |
|
| Cost of sales |
|
670,735 |
|
|
|
871,385 |
|
|
|
2,015,264 |
|
|
|
2,920,610 |
|
| Gross profit |
|
139,246 |
|
|
|
189,376 |
|
|
|
408,588 |
|
|
|
681,835 |
|
| Gross margin |
|
17.2 |
% |
|
|
17.9 |
% |
|
|
16.9 |
% |
|
|
18.9 |
% |
| Operating expenses
(income): |
|
|
|
|
|
|
|
|
Selling, general, and administrative |
|
91,354 |
|
|
|
91,678 |
|
|
|
271,278 |
|
|
|
274,305 |
|
|
Depreciation and amortization |
|
8,089 |
|
|
|
6,688 |
|
|
|
23,758 |
|
|
|
19,952 |
|
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(983 |
) |
|
|
(2,952 |
) |
|
|
(2,951 |
) |
|
Gains from sales of property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
Other operating expenses |
|
1,131 |
|
|
|
1,267 |
|
|
|
5,240 |
|
|
|
2,731 |
|
| Total operating expenses |
|
99,590 |
|
|
|
98,650 |
|
|
|
297,324 |
|
|
|
293,893 |
|
| Operating income |
|
39,656 |
|
|
|
90,726 |
|
|
|
111,264 |
|
|
|
387,942 |
|
| Non-operating expenses: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
5,577 |
|
|
|
10,444 |
|
|
|
19,575 |
|
|
|
32,992 |
|
|
Other expense, net |
|
594 |
|
|
|
(361 |
) |
|
|
1,782 |
|
|
|
916 |
|
| Income before provision for
income taxes |
|
33,485 |
|
|
|
80,643 |
|
|
|
89,907 |
|
|
|
354,034 |
|
| Provision for income
taxes |
|
9,103 |
|
|
|
21,134 |
|
|
|
23,247 |
|
|
|
89,844 |
|
| Net income |
$ |
24,382 |
|
|
$ |
59,509 |
|
|
$ |
66,660 |
|
|
$ |
264,190 |
|
| |
|
|
|
|
|
|
|
| Basic earnings per share |
$ |
2.72 |
|
|
$ |
6.44 |
|
|
$ |
7.39 |
|
|
$ |
28.03 |
|
| Diluted earnings per
share |
$ |
2.71 |
|
|
$ |
6.38 |
|
|
$ |
7.38 |
|
|
$ |
27.82 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)
| |
September 30, 2023 |
|
December 31, 2022 |
| (In thousands, except
share data) |
|
|
|
|
ASSETS |
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
469,783 |
|
|
$ |
298,943 |
|
|
Receivables, less allowances of $3,614 and $3,449,
respectively |
|
297,568 |
|
|
|
251,555 |
|
|
Inventories, net |
|
364,162 |
|
|
|
484,313 |
|
|
Other current assets |
|
39,501 |
|
|
|
42,121 |
|
| Total current assets |
|
1,171,014 |
|
|
|
1,076,932 |
|
| Property and equipment, at
cost |
|
381,593 |
|
|
|
360,869 |
|
|
Accumulated depreciation |
|
(165,976 |
) |
|
|
(155,260 |
) |
| Property and equipment,
net |
|
215,617 |
|
|
|
205,609 |
|
| Operating lease right-of-use
assets |
|
42,145 |
|
|
|
45,717 |
|
| Goodwill |
|
55,372 |
|
|
|
55,372 |
|
| Intangible assets, net |
|
31,817 |
|
|
|
34,989 |
|
| Deferred tax assets |
|
54,898 |
|
|
|
56,169 |
|
| Other non-current assets |
|
14,596 |
|
|
|
15,254 |
|
| Total assets |
$ |
1,585,459 |
|
|
$ |
1,490,042 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
202,256 |
|
|
$ |
151,626 |
|
|
Accrued compensation |
|
18,624 |
|
|
|
22,556 |
|
|
Finance lease liabilities - current portion |
|
9,813 |
|
|
|
7,089 |
|
|
Operating lease liabilities - current portion |
|
6,845 |
|
|
|
7,432 |
|
|
Real estate deferred gains - current portion |
|
3,935 |
|
|
|
3,935 |
|
|
Pension benefit obligation |
|
2,380 |
|
|
|
1,521 |
|
|
Other current liabilities |
|
24,045 |
|
|
|
16,518 |
|
| Total current liabilities |
|
267,898 |
|
|
|
210,677 |
|
| Non-current liabilities: |
|
|
|
|
Long-term debt, net of debt issuance costs and discount |
|
293,413 |
|
|
|
292,424 |
|
|
Finance lease liabilities, less current portion |
|
267,530 |
|
|
|
265,986 |
|
|
Operating lease liabilities, less current portion |
|
37,007 |
|
|
|
40,011 |
|
|
Real estate deferred gains, less current portion |
|
67,550 |
|
|
|
70,403 |
|
|
Other non-current liabilities |
|
20,549 |
|
|
|
20,512 |
|
| Total liabilities |
|
953,947 |
|
|
|
900,013 |
|
| Commitments and
contingencies |
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
Common Stock, $0.01 par value, 20,000,000 shares authorized,
8,795,908 and 9,048,603 outstanding
on September 30, 2023 and December 31, 2022,
respectively |
|
88 |
|
|
|
90 |
|
|
Additional paid-in capital |
|
174,906 |
|
|
|
200,748 |
|
|
Accumulated other comprehensive loss |
|
(30,745 |
) |
|
|
(31,412 |
) |
|
Accumulated stockholders’ equity |
|
487,263 |
|
|
|
420,603 |
|
| Total stockholders’
equity |
|
631,512 |
|
|
|
590,029 |
|
| Total liabilities and
stockholders’ equity |
$ |
1,585,459 |
|
|
$ |
1,490,042 |
|
| |
| |
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (In
thousands) |
|
|
|
|
|
|
|
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net income |
$ |
24,382 |
|
|
$ |
59,509 |
|
|
$ |
66,660 |
|
|
$ |
264,190 |
|
| Adjustments to reconcile net
income to cash provided by operations: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
8,089 |
|
|
|
6,688 |
|
|
|
23,758 |
|
|
|
19,952 |
|
|
Amortization of debt discount and issuance costs |
|
330 |
|
|
|
330 |
|
|
|
989 |
|
|
|
823 |
|
|
Gains from sales of property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
Deferred income tax |
|
567 |
|
|
|
1,813 |
|
|
|
1,117 |
|
|
|
(939 |
) |
|
Amortization of deferred gains from real estate |
|
(984 |
) |
|
|
(983 |
) |
|
|
(2,952 |
) |
|
|
(2,951 |
) |
|
Share-based compensation |
|
2,980 |
|
|
|
2,092 |
|
|
|
9,475 |
|
|
|
6,029 |
|
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(3,227 |
) |
|
|
62,124 |
|
|
|
(46,013 |
) |
|
|
(20,898 |
) |
|
Inventories |
|
15,150 |
|
|
|
41,669 |
|
|
|
120,151 |
|
|
|
(47,521 |
) |
|
Accounts payable |
|
11,287 |
|
|
|
(31,318 |
) |
|
|
49,791 |
|
|
|
28,197 |
|
|
Taxes payable |
|
— |
|
|
|
(9,850 |
) |
|
|
— |
|
|
|
612 |
|
|
Pension contributions |
|
— |
|
|
|
(195 |
) |
|
|
— |
|
|
|
(677 |
) |
|
Other current assets |
|
5,790 |
|
|
|
2,959 |
|
|
|
2,621 |
|
|
|
(440 |
) |
|
Other assets and liabilities |
|
13,242 |
|
|
|
7,768 |
|
|
|
5,127 |
|
|
|
(197 |
) |
| Net cash provided by operating
activities |
|
77,606 |
|
|
|
142,606 |
|
|
|
230,724 |
|
|
|
246,036 |
|
| |
|
|
|
|
|
|
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Proceeds from sale of assets |
|
63 |
|
|
|
117 |
|
|
|
191 |
|
|
|
648 |
|
|
Property and equipment investments |
|
(4,899 |
) |
|
|
(12,197 |
) |
|
|
(18,938 |
) |
|
|
(19,079 |
) |
| Net cash used in investing
activities |
|
(4,836 |
) |
|
|
(12,080 |
) |
|
|
(18,747 |
) |
|
|
(18,431 |
) |
| |
|
|
|
|
|
|
|
| Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Common stock repurchase and retirement |
|
(17,722 |
) |
|
|
— |
|
|
|
(29,321 |
) |
|
|
(66,427 |
) |
|
Repurchase of shares to satisfy employee tax withholdings |
|
(1,197 |
) |
|
|
(3,618 |
) |
|
|
(5,157 |
) |
|
|
(9,788 |
) |
|
Principal payments on finance lease liabilities |
|
(2,393 |
) |
|
|
(2,496 |
) |
|
|
(6,659 |
) |
|
|
(7,229 |
) |
| Net cash used in financing
activities |
|
(21,312 |
) |
|
|
(6,114 |
) |
|
|
(41,137 |
) |
|
|
(83,444 |
) |
| |
|
|
|
|
|
|
|
| Net change in cash and cash
equivalents |
|
51,458 |
|
|
|
124,412 |
|
|
|
170,840 |
|
|
|
144,161 |
|
| Cash and cash equivalents at
beginning of period |
|
418,325 |
|
|
|
104,952 |
|
|
|
298,943 |
|
|
|
85,203 |
|
| Cash and cash equivalents at
end of period |
$ |
469,783 |
|
|
$ |
229,364 |
|
|
$ |
469,783 |
|
|
$ |
229,364 |
|
| |
| |
BLUELINX HOLDINGS
INC.RECONCILIATION OF NON-GAAP
MEASUREMENTS(Unaudited)
The following schedule reconciles net income to
Adjusted EBITDA:
| |
Three Months Ended |
|
Nine Months Ended |
|
Trailing Twelve Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
24,382 |
|
|
$ |
59,509 |
|
|
$ |
66,660 |
|
|
$ |
264,190 |
|
|
$ |
98,646 |
|
|
$ |
337,810 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
8,089 |
|
|
|
6,688 |
|
|
|
23,758 |
|
|
|
19,952 |
|
|
|
31,419 |
|
|
|
26,715 |
|
|
Interest expense, net |
|
5,577 |
|
|
|
10,444 |
|
|
|
19,575 |
|
|
|
32,992 |
|
|
|
28,855 |
|
|
|
43,205 |
|
|
Term loan debt issuance costs(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,603 |
|
|
Provision for income taxes |
|
9,103 |
|
|
|
21,134 |
|
|
|
23,247 |
|
|
|
89,844 |
|
|
|
31,988 |
|
|
|
114,701 |
|
|
Share-based compensation expense |
|
2,980 |
|
|
|
2,092 |
|
|
|
9,475 |
|
|
|
6,029 |
|
|
|
13,063 |
|
|
|
7,609 |
|
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(983 |
) |
|
|
(2,952 |
) |
|
|
(2,951 |
) |
|
|
(3,935 |
) |
|
|
(3,936 |
) |
|
Gain from sales of property(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
|
— |
|
|
|
(7,284 |
) |
|
Pension termination and related expenses(1)(2) |
|
594 |
|
|
|
— |
|
|
|
1,782 |
|
|
|
— |
|
|
|
1,782 |
|
|
|
— |
|
|
Acquisition-related costs(1)(3)(5) |
|
75 |
|
|
|
233 |
|
|
|
92 |
|
|
|
233 |
|
|
|
1,114 |
|
|
|
233 |
|
|
Restructuring and other(1)(4)(5) |
|
606 |
|
|
|
1,034 |
|
|
|
4,699 |
|
|
|
4,498 |
|
|
|
6,503 |
|
|
|
5,961 |
|
| Adjusted EBITDA |
$ |
50,422 |
|
|
$ |
100,151 |
|
|
$ |
146,336 |
|
|
$ |
414,643 |
|
|
$ |
209,435 |
|
|
$ |
526,617 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Reflects
non-recurring items of approximately $1.3 million in beneficial
items to the current quarterly period and approximately $1.3
million in beneficial items to the prior quarterly period. For the
current year nine-month period, reflects non-recurring, beneficial
items of approximately $6.6 million and the prior year nine-month
period reflects $4.6 million of non-recurring, beneficial items.
For the trailing twelve months ended, reflects approximately $9.4
million of non-recurring, beneficial items, and approximately $0.5
million of non-recurring, beneficial items, in the prior trailing
twelve- month 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. |
| (5) |
|
Certain amounts for prior 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 and adjusted
diluted earnings per share:
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (In thousands, except
per share data) |
|
|
|
|
|
|
|
|
Net income |
$ |
24,382 |
|
|
$ |
59,509 |
|
|
$ |
66,660 |
|
|
$ |
264,190 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Share-based compensation expense |
|
2,980 |
|
|
|
2,092 |
|
|
|
9,475 |
|
|
|
6,029 |
|
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(983 |
) |
|
|
(2,952 |
) |
|
|
(2,951 |
) |
|
Gain from sales of property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
Pension termination and related expenses |
|
594 |
|
|
|
— |
|
|
|
1,782 |
|
|
|
— |
|
|
Acquisition-related costs (2) |
|
75 |
|
|
|
233 |
|
|
|
92 |
|
|
|
233 |
|
|
Restructuring and other (2) |
|
606 |
|
|
|
1,034 |
|
|
|
4,699 |
|
|
|
4,498 |
|
|
Tax impacts of reconciling items above (1) |
|
(889 |
) |
|
|
(623 |
) |
|
|
(3,387 |
) |
|
|
(1,945 |
) |
| Adjusted net income |
$ |
26,764 |
|
|
$ |
61,262 |
|
|
$ |
76,369 |
|
|
$ |
269,910 |
|
| |
|
|
|
|
|
|
|
| Basic EPS |
$ |
2.72 |
|
|
$ |
6.44 |
|
|
$ |
7.39 |
|
|
$ |
28.03 |
|
| Diluted EPS |
$ |
2.71 |
|
|
$ |
6.38 |
|
|
$ |
7.38 |
|
|
$ |
27.82 |
|
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding - Basic |
|
8,936 |
|
|
|
9,230 |
|
|
|
9,010 |
|
|
|
9,425 |
|
| Weighted average shares
outstanding - Diluted |
|
8,970 |
|
|
|
9,328 |
|
|
|
9,028 |
|
|
|
9,497 |
|
| |
|
|
|
|
|
|
|
| Non-GAAP Adjusted Basic
EPS |
$ |
2.99 |
|
|
$ |
6.63 |
|
|
$ |
8.47 |
|
|
$ |
28.63 |
|
| Non-GAAP Adjusted Diluted
EPS |
$ |
2.98 |
|
|
$ |
6.56 |
|
|
$ |
8.45 |
|
|
$ |
28.42 |
|
| |
|
|
|
|
|
|
|
| (1) |
|
Tax impact
calculated based on the effective 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. |
The following schedule presents our Adjusted EBITDA margin as a
percentage of net sales:
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (Dollar amounts in
thousands) |
|
|
|
|
|
|
|
|
Net sales |
$ |
809,981 |
|
|
$ |
1,060,761 |
|
|
$ |
2,423,852 |
|
|
$ |
3,602,445 |
|
|
Adjusted EBITDA |
$ |
50,422 |
|
|
$ |
100,151 |
|
|
$ |
146,336 |
|
|
$ |
414,643 |
|
| Adjusted EBITDA margin |
|
6.2 |
% |
|
|
9.4 |
% |
|
|
6.0 |
% |
|
|
11.5 |
% |
The following schedule presents our revenues disaggregated by
specialty and structural product category:
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (Dollar amounts in
thousands) |
|
|
|
|
|
|
|
| Net sales by product
category |
|
|
|
|
|
|
|
|
Specialty products |
$ |
558,851 |
|
|
$ |
724,323 |
|
|
$ |
1,697,679 |
|
|
$ |
2,280,090 |
|
|
Structural products |
|
251,130 |
|
|
|
336,438 |
|
|
|
726,173 |
|
|
|
1,322,355 |
|
| Total net sales |
$ |
809,981 |
|
|
$ |
1,060,761 |
|
|
$ |
2,423,852 |
|
|
$ |
3,602,445 |
|
| |
|
|
|
|
|
|
|
| Gross profit by product
category |
|
|
|
|
|
|
|
|
Specialty products |
$ |
110,898 |
|
|
$ |
151,428 |
|
|
$ |
326,366 |
|
|
$ |
515,781 |
|
|
Structural products |
|
28,348 |
|
|
|
37,948 |
|
|
|
82,222 |
|
|
|
166,054 |
|
| Total gross profit |
$ |
139,246 |
|
|
$ |
189,376 |
|
|
$ |
408,588 |
|
|
$ |
681,835 |
|
| |
|
|
|
|
|
|
|
| Gross margin % by product
category |
|
|
|
|
|
|
|
|
Specialty products |
|
19.8 |
% |
|
|
20.9 |
% |
|
|
19.2 |
% |
|
|
22.6 |
% |
|
Structural products |
|
11.3 |
% |
|
|
11.3 |
% |
|
|
11.3 |
% |
|
|
12.6 |
% |
| Total gross margin % |
|
17.2 |
% |
|
|
17.9 |
% |
|
|
16.9 |
% |
|
|
18.9 |
% |
The following schedule presents Net Debt and the Net Leverage
Ratio for the Trailing Twelve Months:
| |
Period Ending |
| |
September 30, 2023 |
|
October 1, 2022 |
| (Dollar amounts in
thousands) |
|
|
|
|
Finance lease liabilities - short term |
$ |
9,813 |
|
$ |
8,732 |
| Long term debt(1) |
|
300,000 |
|
|
300,000 |
| Finance lease liabilities -
long term |
|
267,530 |
|
|
264,004 |
| Total debt |
|
577,343 |
|
|
572,736 |
| Less: available cash |
|
469,783 |
|
|
229,364 |
| Net Debt |
|
107,560 |
|
|
343,372 |
| Trailing twelve month Adjusted
EBITDA |
$ |
209,435 |
|
$ |
526,617 |
| Net Leverage Ratio |
0.5x |
|
0.7x |
| |
|
|
|
|
(1) |
|
As of September 30, 2023 and October 1, 2022, 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 condensed consolidated balance sheets
at $293.4 million and $292.1 million as of September 30, 2023
and October 1, 2022, respectively. This presentation is net of
their discount of $3.1 million and $3.6 million and the combined
carrying value of our debt issuance costs of $3.4 million and $4.3
million as of September 30, 2023 and October 1, 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 |
|
Nine Months Ended |
| |
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
| (In
thousands) |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
77,606 |
|
|
$ |
142,606 |
|
|
$ |
230,724 |
|
|
$ |
246,036 |
|
| Less: Property and equipment
investments |
|
(4,899 |
) |
|
|
(12,197 |
) |
|
|
(18,938 |
) |
|
|
(19,079 |
) |
| Free cash flow |
$ |
72,707 |
|
|
$ |
130,409 |
|
|
$ |
211,786 |
|
|
$ |
226,957 |
|
| |
|
|
|
|
|
|
|
BlueLinx (NYSE:BXC)
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From Mar 2024 to Apr 2024
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From Apr 2023 to Apr 2024
