BlueLinx Announces Fourth Quarter and Full Year 2023 Results
- None.
- Decrease in net sales and gross profit for Q4 and FY 2023 compared to the prior year period
- Net loss in Q4 due to one-time charge related to defined benefit pension plan exit
- Decrease in adjusted EBITDA for Q4 and FY 2023 compared to the prior year period
- Significant decline in specialty product net sales and gross profit for FY 2023
- Lower net income and adjusted EBITDA for FY 2023 compared to 2022
Insights
The reported financial results of BlueLinx Holdings Inc. reflect a mixed performance with strong margin performance and significant free cash flow generation, despite a net loss driven by a one-time pension-related charge. The decrease in net sales and gross profit points to a challenging market environment, particularly due to price deflation in the building products sector. The company's focus on maintaining specialty gross margins above expectations and disciplined inventory management are positive indicators of effective cost control measures. The share repurchase activity, resulting in a 6% reduction of outstanding shares, may be viewed favorably by investors as it can potentially increase earnings per share and shareholder value. However, the significant year-over-year decrease in adjusted EBITDA raises concerns about the company's operational efficiency and market position.
BlueLinx's performance must be contextualized within the broader building products distribution market, which has been experiencing price deflation due to normalizing conditions post-pandemic. The company's strategic focus on specialty products, which account for a significant portion of net sales and gross profit, demonstrates adaptability to market demand. Notably, the structural products segment also showed resilience with a slight increase in gross margin. The reported liquidity and low net leverage ratio position BlueLinx favorably for future investments and navigating economic uncertainties. However, the decline in daily sales volumes for specialty and structural products in early 2024, influenced by severe weather conditions, indicates potential volatility and the need for ongoing strategic adjustments.
BlueLinx's financial results signal broader economic trends such as the impact of inflation and interest rates on construction and housing markets. The company's ability to generate free cash flow amidst macroeconomic challenges is commendable. The net debt and net leverage ratio are particularly noteworthy, as they suggest a strong balance sheet that could weather economic downturns. However, the reported decrease in net sales and gross profit, alongside deflation in wood-based commodity markets, may be indicative of cooling demand in the housing sector. This could have implications for the broader economy, especially if such trends persist, potentially affecting employment and investment in the construction industry.
FOURTH QUARTER 2023 HIGHLIGHTS
(all comparisons are versus the prior year period unless otherwise noted)
-
Net sales of
$713 million -
Gross profit of
$118 million 16.6% and specialty gross margin of19.4% -
Net loss of
$18 million $2.08 $30.4 million $6.9 million -
Adjusted net income of
$26 million $2.94 -
Adjusted EBITDA of
$36 million 5.1% of net sales -
Operating cash generated of
$76 million $67 million -
Completion of
$12 million
FULL YEAR 2023 HIGHLIGHTS
(all comparisons are versus the prior year period unless otherwise noted)
-
Net sales of
$3.1 billion -
Gross profit of
$527 million 16.8% , and specialty gross margin of19.3% -
Net income of
$49 million $5.39 -
Adjusted net income of
$103 million $11.41 -
Adjusted EBITDA of
$183 million 5.8% of net sales -
Operating cash generated of
$306 million $279 million -
Available liquidity of
$868 million $522 million -
Net debt of
$64 million -
Completion of
$42 million 6% of our shares outstanding
“Our fourth quarter and full year 2023 were highlighted by strong margin performance and significant free cash flow, clearly demonstrating our ability to generate solid results and manage our working capital effectively, despite the macroeconomic and housing market uncertainties the industry continues to experience,” said Shyam Reddy, President, and CEO of BlueLinx. “Specialty products continued its strong margin performance and accounted for
“We were pleased with our fourth quarter specialty gross margins of
FOURTH QUARTER 2023 FINANCIAL PERFORMANCE
In the fourth quarter of 2023, net sales were
Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, decreased
Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased
Selling, general and administrative (“SG&A”) expenses were
Net loss for the current quarter was
Adjusted EBITDA was
Net cash generated from operating activities was
FULL YEAR 2023 FINANCIAL PERFORMANCE
For the twelve months ended December 30, 2023, net sales were
Net sales of specialty products decreased
Net sales of structural products decreased
SG&A expenses were
Net income was
Adjusted EBITDA was
Net cash generated from operating activities was
CAPITAL ALLOCATION AND FINANCIAL POSITION
During the full year 2023, we invested
As of December 30, 2023, total debt outstanding was
FIRST QUARTER 2024 UPDATE
Through the first seven weeks of the first quarter of 2024, specialty product gross margin was in the range of
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on February 21, 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 March 6, 2024: |
|
|
|
Domestic Replay: |
1-800-770-2030 |
Passcode: |
9140086 |
ABOUT BLUELINX
BlueLinx (NYSE: BXC) is a leading
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 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.
Our Adjusted EBITDA and Adjusted EBITDA Margin 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 EBITDA and Adjusted EBITDA Margin, 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.
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 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 12. 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.
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 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; 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 we may 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-part 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.
BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
($ amounts in thousands, except per share amounts) |
||||||||||||||
Net sales |
$ |
712,529 |
|
|
$ |
847,769 |
|
|
$ |
3,136,381 |
|
|
$ |
4,450,214 |
|
Cost of products sold |
|
594,100 |
|
|
|
696,620 |
|
|
|
2,609,364 |
|
|
|
3,617,230 |
|
Gross profit |
|
118,429 |
|
|
|
151,149 |
|
|
|
527,017 |
|
|
|
832,984 |
|
Gross margin |
|
16.6 |
% |
|
|
17.8 |
% |
|
|
16.8 |
% |
|
|
18.7 |
% |
Operating expenses (income): |
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative |
|
84,541 |
|
|
|
92,000 |
|
|
|
355,819 |
|
|
|
366,305 |
|
Depreciation and amortization |
|
8,285 |
|
|
|
7,661 |
|
|
|
32,043 |
|
|
|
27,613 |
|
Amortization of deferred gains on real estate |
|
(982 |
) |
|
|
(983 |
) |
|
|
(3,934 |
) |
|
|
(3,934 |
) |
Gain from sales of properties, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
Other operating expenses |
|
(600 |
) |
|
|
1,326 |
|
|
|
4,640 |
|
|
|
4,057 |
|
Total operating expenses |
|
91,244 |
|
|
|
100,004 |
|
|
|
388,568 |
|
|
|
393,897 |
|
Operating income |
|
27,185 |
|
|
|
51,145 |
|
|
|
138,449 |
|
|
|
439,087 |
|
Non-operating expenses, net: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
4,171 |
|
|
|
9,280 |
|
|
|
23,746 |
|
|
|
42,272 |
|
Settlement of frozen defined benefit pension plan |
|
30,440 |
|
|
|
— |
|
|
|
30,440 |
|
|
|
— |
|
Other expense, net |
|
595 |
|
|
|
1,138 |
|
|
|
2,377 |
|
|
|
2,054 |
|
Income before provision for income taxes |
|
(8,021 |
) |
|
|
40,727 |
|
|
|
81,886 |
|
|
|
394,761 |
|
Provision for income taxes |
|
10,103 |
|
|
|
8,741 |
|
|
|
33,350 |
|
|
|
98,585 |
|
Net (loss) income |
$ |
(18,124 |
) |
|
$ |
31,986 |
|
|
$ |
48,536 |
|
|
$ |
296,176 |
|
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per share |
$ |
(2.08 |
) |
|
$ |
3.53 |
|
|
$ |
5.40 |
|
|
$ |
31.75 |
|
Diluted (loss) earnings per share |
$ |
(2.08 |
) |
|
$ |
3.50 |
|
|
$ |
5.39 |
|
|
$ |
31.51 |
|
BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|||||||
|
December 30, 2023 |
|
December 31, 2022 |
||||
|
(In thousands, except share data) |
||||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
521,743 |
|
|
$ |
298,943 |
|
Accounts receivable, less allowances of |
|
228,410 |
|
|
|
251,555 |
|
Inventories, net |
|
343,638 |
|
|
|
484,313 |
|
Other current assets |
|
26,608 |
|
|
|
42,121 |
|
Total current assets |
|
1,120,399 |
|
|
|
1,076,932 |
|
Property and equipment, at cost |
|
396,321 |
|
|
|
360,869 |
|
Accumulated depreciation |
|
(170,334 |
) |
|
|
(155,260 |
) |
Property and equipment, net |
|
225,987 |
|
|
|
205,609 |
|
Operating lease right-of-use assets |
|
37,227 |
|
|
|
45,717 |
|
Goodwill |
|
55,372 |
|
|
|
55,372 |
|
Intangible assets, net |
|
30,792 |
|
|
|
34,989 |
|
Deferred income tax asset, net |
|
53,256 |
|
|
|
56,169 |
|
Other non-current assets |
|
14,568 |
|
|
|
15,254 |
|
Total assets |
$ |
1,537,601 |
|
|
$ |
1,490,042 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
157,931 |
|
|
$ |
151,626 |
|
Accrued compensation |
|
14,273 |
|
|
|
22,556 |
|
Taxes payable |
|
9,584 |
|
|
|
— |
|
Finance lease liabilities - current |
|
11,178 |
|
|
|
7,089 |
|
Operating lease liabilities - current |
|
6,284 |
|
|
|
7,432 |
|
Real estate deferred gains - current |
|
3,935 |
|
|
|
3,935 |
|
Other current liabilities |
|
15,377 |
|
|
|
18,039 |
|
Total current liabilities |
|
218,562 |
|
|
|
210,677 |
|
Non-current liabilities: |
|
|
|
||||
Long-term debt, net of debt issuance costs of |
|
293,743 |
|
|
|
292,424 |
|
Finance lease liabilities - non-current |
|
274,248 |
|
|
|
265,986 |
|
Operating lease liabilities - non-current |
|
32,519 |
|
|
|
40,011 |
|
Real estate deferred gains - non-current |
|
66,599 |
|
|
|
70,403 |
|
Other non-current liabilities |
|
17,644 |
|
|
|
20,512 |
|
Total liabilities |
|
903,315 |
|
|
|
900,013 |
|
Commitments and contingencies |
|
|
|
||||
STOCKHOLDERS' EQUITY: |
|||||||
Preferred Stock, |
|
— |
|
|
|
— |
|
Common Stock, 8,650,046 and 9,048,603 outstanding on December 30, 2023 and December 31, 2022, respectively |
|
87 |
|
|
|
90 |
|
Additional paid-in capital |
|
165,060 |
|
|
|
200,748 |
|
Accumulated other comprehensive loss |
|
— |
|
|
|
(31,412 |
) |
Retained earnings |
|
469,139 |
|
|
|
420,603 |
|
Total stockholders’ equity |
|
634,286 |
|
|
|
590,029 |
|
Total liabilities and stockholders’ equity |
$ |
1,537,601 |
|
|
$ |
1,490,042 |
|
BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
(In thousands) |
||||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(18,124 |
) |
|
$ |
31,986 |
|
|
$ |
48,536 |
|
|
$ |
296,176 |
|
Adjustments to reconcile net (loss) income to cash provided by operations: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
8,285 |
|
|
|
7,661 |
|
|
|
32,043 |
|
|
|
27,613 |
|
Amortization of debt discount and issuance costs |
|
330 |
|
|
|
330 |
|
|
|
1,319 |
|
|
|
1,153 |
|
Settlement of frozen defined benefit pension plan |
|
30,440 |
|
|
|
— |
|
|
|
30,440 |
|
|
|
— |
|
Gains from sales of property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
Amortization of deferred gains from real estate |
|
(982 |
) |
|
|
(983 |
) |
|
|
(3,934 |
) |
|
|
(3,934 |
) |
Share-based compensation |
|
2,580 |
|
|
|
3,588 |
|
|
|
12,055 |
|
|
|
9,617 |
|
Provision for deferred income taxes |
|
6,639 |
|
|
|
6,228 |
|
|
|
7,756 |
|
|
|
5,289 |
|
Other income statement items |
|
(909 |
) |
|
|
— |
|
|
|
(909 |
) |
|
|
— |
|
Changes in operating assets and liabilities, net of business acquisition: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
69,158 |
|
|
|
122,164 |
|
|
|
23,145 |
|
|
|
101,266 |
|
Inventories |
|
20,724 |
|
|
|
68,280 |
|
|
|
140,875 |
|
|
|
20,759 |
|
Accounts payable |
|
(43,818 |
) |
|
|
(60,005 |
) |
|
|
5,973 |
|
|
|
(31,808 |
) |
Taxes payable |
|
9,584 |
|
|
|
(6,750 |
) |
|
|
9,584 |
|
|
|
(6,138 |
) |
Employer contributions due to the single-employer defined benefit pension plan |
|
(6,900 |
) |
|
|
(11,198 |
) |
|
|
(6,900 |
) |
|
|
(11,876 |
) |
Other current assets |
|
12,892 |
|
|
|
(11,195 |
) |
|
|
15,513 |
|
|
|
(11,635 |
) |
Other assets and liabilities |
|
(14,038 |
) |
|
|
4,155 |
|
|
|
(9,211 |
) |
|
|
3,959 |
|
Net cash provided by operating activities |
|
75,861 |
|
|
|
154,261 |
|
|
|
306,285 |
|
|
|
400,297 |
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(63,767 |
) |
|
|
300 |
|
|
|
(63,767 |
) |
Proceeds from sales of assets and properties |
|
166 |
|
|
|
316 |
|
|
|
357 |
|
|
|
964 |
|
Property and equipment investments |
|
(8,582 |
) |
|
|
(16,807 |
) |
|
|
(27,520 |
) |
|
|
(35,886 |
) |
Net cash used in investing activities |
|
(8,416 |
) |
|
|
(80,258 |
) |
|
|
(26,863 |
) |
|
|
(98,689 |
) |
|
|
|
|
|
|
|
|
||||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Common stock repurchases |
|
(12,814 |
) |
|
|
— |
|
|
|
(42,135 |
) |
|
|
(66,427 |
) |
Repurchase of shares to satisfy employee tax withholdings |
|
(122 |
) |
|
|
(746 |
) |
|
|
(5,279 |
) |
|
|
(10,534 |
) |
Principal payments on finance lease liabilities |
|
(2,549 |
) |
|
|
(3,678 |
) |
|
|
(9,208 |
) |
|
|
(10,907 |
) |
Net cash used in financing activities |
|
(15,485 |
) |
|
|
(4,424 |
) |
|
|
(56,622 |
) |
|
|
(87,868 |
) |
Net change in cash and cash equivalents |
|
51,960 |
|
|
|
69,579 |
|
|
|
222,800 |
|
|
|
213,740 |
|
Cash and cash equivalents at beginning of period |
|
469,783 |
|
|
|
229,364 |
|
|
|
298,943 |
|
|
|
85,203 |
|
Cash and cash equivalents at end of period |
$ |
521,743 |
|
|
$ |
298,943 |
|
|
$ |
521,743 |
|
|
$ |
298,943 |
|
BLUELINX HOLDINGS INC. RECONCILIATION OF NON-GAAP MEASUREMENTS (Unaudited)
The following table reconciles net income to Adjusted EBITDA:
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
(In thousands) |
||||||||||||||
Net (loss) income |
$ |
(18,124 |
) |
|
$ |
31,986 |
|
|
$ |
48,536 |
|
|
$ |
296,176 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
8,285 |
|
|
|
7,661 |
|
|
|
32,043 |
|
|
|
27,613 |
|
Interest expense, net |
|
4,171 |
|
|
|
9,280 |
|
|
|
23,746 |
|
|
|
42,272 |
|
Provision for income taxes |
|
10,103 |
|
|
|
8,741 |
|
|
|
33,350 |
|
|
|
98,585 |
|
Share-based compensation expense |
|
2,580 |
|
|
|
3,588 |
|
|
|
12,055 |
|
|
|
9,617 |
|
Amortization of deferred gains on real estate |
|
(982 |
) |
|
|
(983 |
) |
|
|
(3,934 |
) |
|
|
(3,934 |
) |
Gains from sales of property(1) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
Pension settlement and withdrawal costs(1) |
|
31,034 |
|
|
|
— |
|
|
|
32,817 |
|
|
|
— |
|
Acquisition-related costs(1)(2) |
|
186 |
|
|
|
1,022 |
|
|
|
278 |
|
|
|
1,255 |
|
Restructuring and other(1)(3) |
|
(784 |
) |
|
|
1,804 |
|
|
|
3,913 |
|
|
|
6,302 |
|
Adjusted EBITDA |
$ |
36,469 |
|
|
$ |
63,099 |
|
|
$ |
182,804 |
|
|
$ |
477,742 |
|
(1) Reflects non-recurring items of approximately |
|
(2) Reflects primarily legal, professional, technology and other integration costs. |
|
(3) Reflects costs related to our restructuring efforts, such as severance, net of other one-time non-operating items. |
The following table reconciles basic (loss) earnings per share and diluted (loss) earnings per share to non-GAAP adjusted basic earnings per share and non-GAAP adjusted diluted earnings per share:
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
(In thousands, except per share amounts) |
||||||||||||||
Net (loss) income |
$ |
(18,124 |
) |
|
$ |
31,986 |
|
|
$ |
48,536 |
|
|
$ |
296,176 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense |
|
2,580 |
|
|
|
3,588 |
|
|
|
12,055 |
|
|
|
9,617 |
|
Amortization of deferred gains on real estate |
|
(982 |
) |
|
|
(983 |
) |
|
|
(3,934 |
) |
|
|
(3,934 |
) |
Gain from sales of property |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
Pension settlement and withdrawal costs(1) |
|
31,034 |
|
|
|
— |
|
|
|
32,817 |
|
|
|
— |
|
Acquisition-related costs |
|
186 |
|
|
|
1,022 |
|
|
|
278 |
|
|
|
1,255 |
|
Restructuring and other |
|
(784 |
) |
|
|
1,804 |
|
|
|
3,913 |
|
|
|
6,302 |
|
Tax impacts of reconciling items above (1) |
|
11,891 |
|
|
|
(1,168 |
) |
|
|
8,962 |
|
|
|
(3,274 |
) |
Adjusted net income (non-GAAP) |
$ |
25,801 |
|
|
$ |
36,249 |
|
|
$ |
102,627 |
|
|
$ |
305,998 |
|
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per share |
$ |
(2.08 |
) |
|
$ |
3.53 |
|
|
$ |
5.40 |
|
|
$ |
31.75 |
|
Diluted (loss) earnings per share |
$ |
(2.08 |
) |
|
$ |
3.50 |
|
|
$ |
5.39 |
|
|
$ |
31.51 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - Basic |
|
8,704 |
|
|
|
9,036 |
|
|
|
8,987 |
|
|
|
9,328 |
|
Weighted average shares outstanding - Diluted |
|
8,757 |
|
|
|
9,128 |
|
|
|
8,994 |
|
|
|
9,398 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted basic EPS (non-GAAP) |
$ |
2.96 |
|
|
$ |
4.01 |
|
|
$ |
11.41 |
|
|
$ |
32.80 |
|
Adjusted diluted EPS (non-GAAP) |
$ |
2.94 |
|
|
$ |
3.97 |
|
|
$ |
11.41 |
|
|
$ |
32.55 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Tax impact calculated based on the effective tax rate for the respective fiscal quarterly periods and fiscal year periods presented. The fiscal quarter and fiscal year ended December 30, 2023 exclude the non-cash tax effects for the one-time charge for settlement of the frozen defined benefit pension plan. |
The following table presents our Adjusted EBITDA margin (non-GAAP) as a percentage of net sales:
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
($ amounts in thousands) |
||||||||||||||
Net sales |
$ |
712,529 |
|
|
$ |
847,769 |
|
|
$ |
3,136,381 |
|
|
$ |
4,450,214 |
|
Adjusted EBITDA (non-GAAP) |
|
36,469 |
|
|
|
63,099 |
|
|
|
182,804 |
|
|
|
477,742 |
|
Adjusted EBITDA margin (non-GAAP) |
|
5.1 |
% |
|
|
7.4 |
% |
|
|
5.8 |
% |
|
|
10.7 |
% |
The following table presents our Net sales disaggregated by specialty products and structural products.
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
($ amounts in thousands) |
||||||||||||||
Net sales by product category |
|
|
|
|
|
|
|
||||||||
Specialty products |
$ |
486,561 |
|
|
$ |
591,538 |
|
|
$ |
2,184,240 |
|
|
$ |
2,871,628 |
|
Structural products |
|
225,968 |
|
|
|
256,231 |
|
|
|
952,141 |
|
|
|
1,578,586 |
|
Total net sales |
$ |
712,529 |
|
|
$ |
847,769 |
|
|
$ |
3,136,381 |
|
|
$ |
4,450,214 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit by product category |
|
|
|
|
|
|
|
||||||||
Specialty products |
$ |
94,466 |
|
|
$ |
124,589 |
|
|
$ |
420,794 |
|
|
$ |
640,370 |
|
Structural products |
|
23,963 |
|
|
|
26,560 |
|
|
|
106,223 |
|
|
|
192,614 |
|
Total gross profit |
$ |
118,429 |
|
|
$ |
151,149 |
|
|
$ |
527,017 |
|
|
$ |
832,984 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin % by product category |
|
|
|
|
|
|
|
||||||||
Specialty products |
|
19.4 |
% |
|
|
21.1 |
% |
|
|
19.3 |
% |
|
|
22.3 |
% |
Structural products |
|
10.6 |
% |
|
|
10.4 |
% |
|
|
11.2 |
% |
|
|
12.2 |
% |
Total gross margin % |
|
16.6 |
% |
|
|
17.8 |
% |
|
|
16.8 |
% |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
||||||||
The following table presents Net Debt, Net Debt excluding real property finance lease liabilities, Net Leverage Ratio, and Net Leverage Ratio excluding real property finance lease liabilities, for the fiscal year indicated:
|
|||||||
|
Fiscal Year Ended |
||||||
|
December 30, 2023 |
|
December 31, 2022 |
||||
|
($ amounts in thousands) |
||||||
Long term debt (1) |
|
300,000 |
|
|
|
300,000 |
|
Finance lease liabilities for equipment and vehicles |
|
42,252 |
|
|
|
29,300 |
|
Finance lease liabilities for real property |
|
243,174 |
|
|
|
243,775 |
|
Total debt |
|
585,426 |
|
|
|
573,075 |
|
Less: available cash and cash equivalents |
|
521,743 |
|
|
|
298,943 |
|
Net Debt (total debt and all finance leases, excluding cash) |
$ |
63,683 |
|
|
$ |
274,132 |
|
|
|
|
|
||||
Net Debt, excluding liabilities for finance leases for real property |
$ |
(179,491 |
) |
|
$ |
30,357 |
|
|
|
|
|
||||
Twelve-Month Trailing Adjusted EBITDA (non-GAAP, see above reconciliation) |
$ |
182,804 |
|
|
$ |
477,742 |
|
|
|
|
|
||||
Net Leverage Ratio |
0.3x |
|
0.6x |
||||
Net Leverage Ratio Excluding Real Property Finance Lease Liabilities |
-1.0x |
|
0.1x |
||||
(1) For the period ended December 30, 2023, our long-term debt is comprised of |
The following table presents free cash flow:
|
|||||||||||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||||||||||
|
December 30, 2023 |
|
December 31, 2022 |
|
December 30, 2023 |
|
December 31, 2022 |
||||||||
|
(In thousands) |
||||||||||||||
Net cash provided by operating activities |
$ |
75,861 |
|
|
$ |
154,261 |
|
|
$ |
306,285 |
|
|
$ |
400,297 |
|
Less: property and equipment investments |
|
(8,582 |
) |
|
|
(16,807 |
) |
|
|
(27,520 |
) |
|
|
(35,886 |
) |
Free cash flow |
$ |
67,279 |
|
|
$ |
137,454 |
|
|
$ |
278,765 |
|
|
$ |
364,411 |
|
|
|
|
|
|
|
|
|
||||||||
The following table presents the calculations for the incremental effects on earnings (loss) per share caused by our share buybacks that were made in fiscal 2023 and fiscal 2022:
|
|||||||
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
||||
|
December 30, 2023 |
||||||
|
(In thousands, except per share amounts) |
||||||
|
|
|
|
||||
Weighted average shares outstanding - Basic |
|
8,704 |
|
|
|
8,987 |
|
Effect of share buybacks in fiscal 2022 |
|
882 |
|
|
|
503 |
|
Effect of share buybacks in fiscal 2023 |
|
451 |
|
|
|
509 |
|
Weighted-average shares outstanding, with no buybacks (non-GAAP) |
|
10,037 |
|
|
|
9,999 |
|
|
|
|
|
||||
Dilutive effect of share-based awards |
|
53 |
|
|
|
7 |
|
Weighted-average diluted shares, with no buybacks (non-GAAP) |
|
10,090 |
|
|
|
10,006 |
|
|
|
|
|
||||
Net (loss) income |
$ |
(18,124 |
) |
|
$ |
48,536 |
|
Basic (loss) earnings per share |
$ |
(2.08 |
) |
|
$ |
5.40 |
|
Diluted (loss) earnings per share |
$ |
(2.08 |
) |
|
$ |
5.39 |
|
|
|
|
|
||||
Basic (loss) earnings per share, with no buybacks (non-GAAP) |
$ |
(1.80 |
) |
|
$ |
4.85 |
|
Diluted (loss) earnings per share, with no buybacks (non-GAAP) |
$ |
(1.80 |
) |
|
$ |
4.85 |
|
Incremental EPS per share effect of share buybacks completed in fiscal 2023 and fiscal 2022 (non-GAAP) |
$ |
(0.28 |
) |
|
$ |
0.54 |
|
|
|
|
|
||||
Adjusted net income (non-GAAP) |
$ |
25,801 |
|
|
$ |
102,627 |
|
Adjusted diluted earnings per share (non-GAAP) |
$ |
2.94 |
|
|
$ |
11.41 |
|
Adjusted diluted earnings per share, with no buybacks (non-GAAP) |
$ |
2.56 |
|
|
$ |
10.26 |
|
Incremental EPS per share effect of share buybacks completed in fiscal 2023 and fiscal 2022 (non-GAAP) |
$ |
0.38 |
|
|
$ |
1.15 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220082310/en/
Tom Morabito
Investor Relations Officer
(470) 394-0099
investor@bluelinxco.com
Source: BlueLinx Holdings Inc.
FAQ
What are the net sales figures for BlueLinx Holdings Inc. in Q4 2023?
What was the gross profit in Q4 2023?
What was the net loss in Q4 2023, and what was the primary reason for it?
How much did BlueLinx allocate for share repurchases in 2023?
Who provided insights on the company's performance in the press release?
