BlueLinx Announces Second Quarter 2024 Results
BlueLinx Holdings Inc. (NYSE: BXC) reported its Q2 2024 financial results. Net sales were $768 million, down 6% year-over-year. Gross profit was $122 million with a margin of 15.9%. Net income was $14 million, or $1.65 diluted EPS. Adjusted EBITDA was $34 million, 4.5% of net sales. The company generated $36 million in operating cash flow and $29 million in free cash flow.
Specialty products sales decreased 5.5% to $539 million, while structural products sales fell 6.6% to $229 million. BlueLinx ended the quarter with $491 million in cash and a net leverage ratio of (0.9x). The company repurchased $15 million of stock, with $76 million remaining on its share repurchase authorization.
BlueLinx Holdings Inc. (NYSE: BXC) ha riportato i risultati finanziari del secondo trimestre 2024. Le vendite nette sono state di 768 milioni di dollari, in calo del 6% rispetto all'anno precedente. Il profitto lordo è stato di 122 milioni di dollari, con un margine del 15,9%. Il reddito netto si è attestato a 14 milioni di dollari, corrispondenti a un utile per azione diluito di 1,65 dollari. L'EBITDA rettificato è stato di 34 milioni di dollari, pari al 4,5% delle vendite nette. L'azienda ha generato 36 milioni di dollari in flusso di cassa operativo e 29 milioni di dollari in flusso di cassa libero.
Le vendite di prodotti speciali sono diminuite del 5,5%, raggiungendo i 539 milioni di dollari, mentre le vendite di prodotti strutturali sono scese del 6,6% a 229 milioni di dollari. BlueLinx ha concluso il trimestre con 491 milioni di dollari in contante e un rapporto di leva netta di (0,9x). L'azienda ha riacquistato 15 milioni di dollari di azioni, con 76 milioni di dollari rimanenti sulla sua autorizzazione di riacquisto di azioni.
BlueLinx Holdings Inc. (NYSE: BXC) informó sus resultados financieros del segundo trimestre de 2024. Las ventas netas fueron de 768 millones de dólares, un 6% menos que el año anterior. El beneficio bruto fue de 122 millones de dólares, con un margen del 15,9%. El ingreso neto fue de 14 millones de dólares, equivalente a 1,65 dólares de ganancias por acción diluidas. El EBITDA ajustado fue de 34 millones de dólares, el 4,5% de las ventas netas. La compañía generó 36 millones de dólares en flujo de caja operativo y 29 millones de dólares en flujo de caja libre.
Las ventas de productos especializados disminuyeron un 5,5% a 539 millones de dólares, mientras que las ventas de productos estructurales cayeron un 6,6% a 229 millones de dólares. BlueLinx terminó el trimestre con 491 millones de dólares en efectivo y una relación de apalancamiento neto de (0,9x). La empresa recompró 15 millones de dólares en acciones, quedando 76 millones de dólares de su autorización para la recompra de acciones.
BlueLinx Holdings Inc. (NYSE: BXC)는 2024년 2분기 재무 실적을 발표했습니다. 순매출은 7억 6,800만 달러로 지난해 대비 6% 감소했습니다. 총 이익은 1억 2,200만 달러로, 마진은 15.9%입니다. 순이익은 1,400만 달러로 희석 주당순이익(EPS)은 1.65달러입니다. 조정 EBITDA는 3,400만 달러로, 순매출의 4.5%입니다. 회사는 3,600만 달러의 운영 현금 흐름과 2,900만 달러의 자유 현금 흐름을 창출했습니다.
전문 제품 판매는 5.5% 감소하여 5억 3,900만 달러에 이르렀고, 구조용 제품 판매는 6.6% 감소하여 2억 2,900만 달러에 달했습니다. BlueLinx는 분기를 마치며 4억 9,100만 달러의 현금과 (0.9배)의 순 부채 비율을 기록했습니다. 회사는 1,500만 달러의 주식을 재구매했으며, 주식 재구매 허가에서 7,600만 달러가 남아 있습니다.
BlueLinx Holdings Inc. (NYSE: BXC) a annoncé ses résultats financiers pour le deuxième trimestre 2024. Le chiffre d'affaires net a été de 768 millions de dollars, en baisse de 6 % par rapport à l'année précédente. Le bénéfice brut s'est élevé à 122 millions de dollars, avec une marge de 15,9 %. Le revenu net était de 14 millions de dollars, soit un bénéfice par action dilué de 1,65 dollar. L'EBITDA ajusté était de 34 millions de dollars, représentant 4,5 % du chiffre d'affaires net. L'entreprise a généré 36 millions de dollars de flux de trésorerie opérationnels et 29 millions de dollars de flux de trésorerie libre.
Les ventes de produits spécialisés ont diminué de 5,5 % pour atteindre 539 millions de dollars, tandis que les ventes de produits structurels ont chuté de 6,6 % pour atteindre 229 millions de dollars. BlueLinx a terminé le trimestre avec 491 millions de dollars en liquidités et un ratio d'endettement net de (0,9x). L'entreprise a racheté 15 millions de dollars d'actions, avec 76 millions de dollars restant dans son autorisation de rachat d'actions.
BlueLinx Holdings Inc. (NYSE: BXC) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Der Nettoumsatz betrug 768 Millionen Dollar, was einem Rückgang von 6% im Vergleich zum Vorjahr entspricht. Der Bruttogewinn betrug 122 Millionen Dollar mit einer Marge von 15,9%. Der Nettogewinn belief sich auf 14 Millionen Dollar, was einem verwässerten Gewinn pro Aktie von 1,65 Dollar entspricht. Das bereinigte EBITDA betrug 34 Millionen Dollar, 4,5% des Nettoumsatzes. Das Unternehmen erwirtschaftete 36 Millionen Dollar an operativem Cashflow und 29 Millionen Dollar an freiem Cashflow.
Die Verkäufe von Spezialprodukten sanken um 5,5% auf 539 Millionen Dollar, während die Verkäufe von Strukturprodukten um 6,6% auf 229 Millionen Dollar fielen. BlueLinx schloss das Quartal mit 491 Millionen Dollar in bar und einem Nettoverschuldungsgrad von (0,9x) ab. Das Unternehmen hat Aktien im Wert von 15 Millionen Dollar zurückgekauft, wobei noch 76 Millionen Dollar im Rahmen seines Aktienrückkaufprogramms verfügbar sind.
- Solid volume growth in key specialty product categories
- Strong free cash flow generation of $29 million in Q2
- Robust liquidity position with $838 million available, including $491 million cash on hand
- Net leverage ratio of (0.9x), indicating strong balance sheet
- $15 million in share repurchases, demonstrating commitment to returning capital to shareholders
- Net sales decreased 6% year-over-year to $768 million
- Net income declined to $14 million from $24 million in the prior year period
- Adjusted EBITDA decreased to $34 million (4.5% of net sales) from $49 million (6.0% of net sales) in Q2 2023
- Structural products segment experienced volume declines and price deflation
- Challenging macro environment in the housing and building products sector
Insights
BlueLinx's Q2 2024 results paint a mixed picture, with some positive indicators amidst challenging market conditions. The company reported
- Solid specialty product gross margins of
19.3% , slightly up from19.1% in Q2 2023 - Strong liquidity position with
$838 million available, including$491 million in cash - Negative net leverage ratio of (0.9x), indicating a robust balance sheet
- Continued share repurchases, demonstrating confidence in the company's future
The
The outlook for Q3 2024 suggests stability in gross margins for both specialty and structural products. Investors should monitor the company's ability to maintain these margins and its success in growing specialty product volumes, which could be key drivers for future performance.
BlueLinx's Q2 results reflect the broader challenges in the housing and building products sector. The
- Slight increase in specialty product volumes despite market challenges
- Maintenance of healthy specialty product gross margins
- Strong cash flow generation and liquidity position
The company's strategy of focusing on specialty products appears to be paying off, as these products offer higher margins and seem to be more resilient to market fluctuations. The
The housing market outlook remains uncertain, with high interest rates continuing to impact demand. However, BlueLinx's strong balance sheet and liquidity provide a cushion against market volatility. The company's ability to generate
Looking ahead, investors should pay close attention to housing start data and lumber prices, as these will significantly impact BlueLinx's performance. The company's ability to continue growing its specialty product segment while maintaining margins will be important for long-term success in a potentially prolonged housing market slowdown.
SECOND QUARTER 2024 HIGHLIGHTS
-
Net sales of
$768 million -
Gross profit of
$122 million 15.9% and specialty product gross margin of19.3% -
Net income of
$14 million $1.65 -
Adjusted net income of
$15 million $1.68 -
Adjusted EBITDA of
$34 million 4.5% of net sales -
Operating cash flow of
$36 million $29 million -
Available liquidity of
$838 million $491 million -
$15 million $76 million
“Our second quarter results were highlighted by solid volume growth in several of our key specialty product categories despite a challenging macro environment,” said Shyam Reddy, President and CEO of BlueLinx. “We also generated solid specialty product gross margins of approximately
“Our strong free cash flow generation of
SECOND QUARTER 2024 FINANCIAL PERFORMANCE
In the second quarter of 2024, 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, were
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 income was
Adjusted EBITDA was
Net cash generated from operating activities was
CAPITAL ALLOCATION AND FINANCIAL POSITION
During the second quarter, we invested
As of June 29, 2024, total debt and finance lease obligations, but excluding real property finance lease obligations, was
THIRD QUARTER 2024 OUTLOOK
Through the first four weeks of the third quarter of 2024, specialty product gross margin was in the range of
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on July 31, 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 August 14, 2024:
Domestic Replay: 1-800-770-2030
Passcode: 9140086
ABOUT BLUELINX
BlueLinx (NYSE: BXC) is a leading
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “anticipate,” “could,” “expect,” “estimate,” “intend,” “may,” “project,” “plan,” “should,” “will,” “will be,” “will likely continue,” “will likely result,” “would,” or words or phrases of similar meaning.
The forward-looking statements in this press release include statements about our strategy, liquidity, and debt, our long-run positioning relative to industry conditions, future share repurchases, and the information set forth under the heading “Third Quarter 2024 Outlook”.
Forward-looking statements in this press release are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties that may cause our business, strategy, or actual results to differ materially from the forward-looking statements. These risks and uncertainties include those discussed in greater detail in our filings with the Securities and Exchange Commission. We operate in a changing environment in which new risks can emerge from time to time. It is not possible for management to predict all of these risks, nor can it assess the extent to which any factor, or a combination of factors, may cause our business, strategy, or actual results to differ materially from those contained in forward-looking statements. Factors that may cause these differences include, among other things: housing market conditions; pricing and product cost variability; volumes of product sold; competition; the cyclical nature of the industry in which we operate; consolidation among competitors, suppliers, and customers; disintermediation risk; loss of products or key suppliers and manufacturers; our dependence on international suppliers and manufacturers for certain products; effective inventory management relative to our sales volume or the prices of the products we produce; business disruptions; potential acquisitions and the integration and completion of such acquisitions; information technology security risks and business interruption risks; the ability to attract, train, and retain highly qualified associates and other key personnel while controlling related labor costs; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, wars or other unexpected events; the impacts of climate change; successful implementation of our strategy; wage increases or work stoppages by our union employees; costs imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; the effects of epidemics, global pandemics or other widespread public health crises and governmental rules and regulations; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating the business; the potential to incur more debt; the fact that we have consummated certain sale leaseback transactions with resulting long-term non-cancelable leases, many of which are or will be finance leases; the fact that we lease many of our distribution centers, and we would still be obligated under these leases even if we close a leased distribution center; inability to raise funds necessary to finance a required repurchase of our senior secured notes; a lowering or withdrawal of debt ratings; changes in our product mix; increases in fuel and other energy prices or availability of third-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.
NON-GAAP MEASURES AND SUPPLEMENTAL FINANCIAL INFORMATION
The Company reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAAP results alone. Any non-GAAP measures used herein are reconciled to their most directly comparable GAAP measures herein in the “Reconciliation of Non-GAAP Measurements” table later in this release. The Company cautions that non-GAAP measures are not intended to present superior measures of our financial condition from those measures determined under GAAP and should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. The Company further cautions that its non-GAAP measures, as used herein, are not necessarily comparable to other similarly titled measures of other companies due to differences in methods of calculation.
Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines Adjusted EBITDA as an amount equal to net income (loss) plus interest expense and all interest expense related items, income taxes, depreciation and amortization, and further adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items.
The Company presents Adjusted EBITDA because it is a primary measure used by management to evaluate operating performance. Management believes this metric helps to enhance investors’ overall understanding of the financial performance and cash flows of the business. Management also believes Adjusted EBITDA is helpful in highlighting operating trends. Adjusted EBITDA is frequently used by securities analysts, investors, and other interested parties in their evaluation of companies, many of which present an Adjusted EBITDA measure when reporting their results.
We determine our Adjusted EBITDA Margin, which we sometimes refer to as our Adjusted EBITDA as a percentage of net sales, by dividing our Adjusted EBITDA for the applicable period by our net sales for the applicable period. We believe that this ratio is useful to investors because it more clearly defines the quality of earnings and operational efficiency of translating sales to profitability.
Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx defines Adjusted Net Income as Net Income adjusted for certain non-cash items and other special items, including compensation expense from share based compensation, one-time charges associated with the legal, consulting, and professional fees related to our merger and acquisition activities, gains or losses on sales of properties, amortization of deferred gains on real estate, and expense associated with our restructuring activities, such as severance, in addition to other significant and/or one-time, nonrecurring, non-operating items, further adjusted for the tax impacts of such reconciling items. BlueLinx defines Adjusted Earnings Per Share (basic and/or diluted) as the Adjusted Net Income for the period divided by the weighted average outstanding shares (basic and/or diluted) for the periods presented. We believe that Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are useful to investors to enhance investors’ overall understanding of the financial performance of the business. Management also believes Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are helpful in highlighting operating trends.
Our Adjusted Net Income and Adjusted Earnings Per Share (basic and/or diluted) are not presentations made in accordance with GAAP and are not intended to present superior measures of our financial condition from those measures determined under GAAP. Adjusted Net Income and Adjusted Earnings Per Share (basic or diluted), as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. These non-GAAP measures are reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Free Cash Flow. BlueLinx defines free cash flow as net cash provided by operating activities less total capital expenditures. Free cash flow is a measure used by management to assess our financial performance, and we believe it is useful for investors because it relates the operating cash flow of the Company to the capital that is spent to continue and improve business operations. In particular, free cash flow indicates the amount of cash generated after capital expenditures that can be used for, among other things, investment in our business, strengthening our balance sheet, and repayment of our debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure. Free cash flow is not a presentation made in accordance with GAAP and is not intended to present a superior measure of financial condition from those determined under GAAP. Free cash flow, as used herein, is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation. This non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP Measurements” table later in this release.
Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities. BlueLinx calculates Net Debt as its total short- and long-term debt, including outstanding balances under our term loan and revolving credit facility and the total amount of its obligations under finance leases, less cash and cash equivalents. Net Debt Excluding Real Property Finance Lease Liabilities is calculated in the same manner as Net Debt, except the total amount of obligations under real estate finance leases are excluded. Although our credit agreements do not contain leverage covenants, a net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. We believe that Net Debt and Net Debt Excluding Real Property Finance Lease Liabilities are useful to investors because our management reviews both metrics as part of its management of overall liquidity, financial flexibility, capital structure and leverage, and creditors and credit analysts monitor our net debt as part of their assessments of our business. We determine our Overall Net Leverage Ratio by dividing our Net Debt by Twelve-Month Trailing Adjusted EBITDA. Our calculation of Net Leverage Ratio Excluding Real Property Finance Lease Liabilities is determined by dividing our Net Debt Excluding Real Property Finance Lease Liabilities by Twelve-Month Trailing Adjusted EBITDA. We believe that these ratios are useful to investors because they are indicators of our ability to meet our future financial obligations. In addition, our Net Leverage Ratio is a measure that is frequently used by investors and creditors. Our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are not made in accordance with GAAP and are not intended to present a superior measure of our financial condition from measures and ratios determined under GAAP. The calculations of our Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities are presented in the table on page 8. Net Debt, Net Debt Excluding Real Property Finance Lease Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio Excluding Real Property Finance Lease Liabilities, as used herein, are not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculation.
BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
768,363 |
|
|
$ |
815,967 |
|
|
$ |
1,494,607 |
|
|
$ |
1,613,871 |
|
Cost of products sold |
|
645,919 |
|
|
|
680,164 |
|
|
|
1,244,482 |
|
|
|
1,344,529 |
|
Gross profit |
|
122,444 |
|
|
|
135,803 |
|
|
|
250,125 |
|
|
|
269,342 |
|
Gross margin |
|
15.9 |
% |
|
|
16.6 |
% |
|
|
16.7 |
% |
|
|
16.7 |
% |
Operating expenses (income): |
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative |
|
89,453 |
|
|
|
88,750 |
|
|
|
180,703 |
|
|
|
179,924 |
|
Depreciation and amortization |
|
10,120 |
|
|
|
7,951 |
|
|
|
19,553 |
|
|
|
15,669 |
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(984 |
) |
|
|
(1,968 |
) |
|
|
(1,968 |
) |
Other operating expenses |
|
8 |
|
|
|
993 |
|
|
|
322 |
|
|
|
4,109 |
|
Total operating expenses |
|
98,597 |
|
|
|
96,710 |
|
|
|
198,610 |
|
|
|
197,734 |
|
Operating income |
|
23,847 |
|
|
|
39,093 |
|
|
|
51,515 |
|
|
|
71,608 |
|
Non-operating expenses: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
4,801 |
|
|
|
6,311 |
|
|
|
9,425 |
|
|
|
13,998 |
|
Other expense, net |
|
— |
|
|
|
594 |
|
|
|
— |
|
|
|
1,188 |
|
Income before provision for income taxes |
|
19,046 |
|
|
|
32,188 |
|
|
|
42,090 |
|
|
|
56,422 |
|
Provision for income taxes |
|
4,710 |
|
|
|
7,722 |
|
|
|
10,262 |
|
|
|
14,144 |
|
Net income |
$ |
14,336 |
|
|
$ |
24,466 |
|
|
$ |
31,828 |
|
|
$ |
42,278 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
1.65 |
|
|
$ |
2.70 |
|
|
$ |
3.68 |
|
|
$ |
4.67 |
|
Diluted earnings per share |
$ |
1.65 |
|
|
$ |
2.70 |
|
|
$ |
3.66 |
|
|
$ |
4.67 |
|
BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||
|
June 29, 2024 |
|
December 30, 2023 |
||||
(In thousands, except share data) |
|
|
|
||||
ASSETS |
|||||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
491,392 |
|
|
$ |
521,743 |
|
Receivables, less allowances of |
|
273,537 |
|
|
|
228,410 |
|
Inventories, net |
|
357,573 |
|
|
|
343,638 |
|
Other current assets |
|
36,220 |
|
|
|
26,608 |
|
Total current assets |
|
1,158,722 |
|
|
|
1,120,399 |
|
Property and equipment, at cost |
|
413,905 |
|
|
|
396,321 |
|
Accumulated depreciation |
|
(181,841 |
) |
|
|
(170,334 |
) |
Property and equipment, net |
|
232,064 |
|
|
|
225,987 |
|
Operating lease right-of-use assets |
|
44,418 |
|
|
|
37,227 |
|
Goodwill |
|
55,372 |
|
|
|
55,372 |
|
Intangible assets, net |
|
28,787 |
|
|
|
30,792 |
|
Deferred income tax asset, net |
|
53,677 |
|
|
|
53,256 |
|
Other non-current assets |
|
13,036 |
|
|
|
14,568 |
|
Total assets |
$ |
1,586,076 |
|
|
$ |
1,537,601 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
179,375 |
|
|
$ |
157,931 |
|
Accrued compensation |
|
12,310 |
|
|
|
14,273 |
|
Finance lease liabilities - current |
|
11,132 |
|
|
|
11,178 |
|
Operating lease liabilities - current |
|
8,460 |
|
|
|
6,284 |
|
Real estate deferred gains - current |
|
3,935 |
|
|
|
3,935 |
|
Other current liabilities |
|
22,250 |
|
|
|
24,961 |
|
Total current liabilities |
|
237,462 |
|
|
|
218,562 |
|
Long-term debt |
|
294,403 |
|
|
|
293,743 |
|
Finance lease liabilities, less current portion |
|
280,206 |
|
|
|
274,248 |
|
Operating lease liabilities, less current portion |
|
37,369 |
|
|
|
32,519 |
|
Real estate deferred gains, less current portion |
|
64,697 |
|
|
|
66,599 |
|
Other non-current liabilities |
|
19,607 |
|
|
|
17,644 |
|
Total liabilities |
|
933,744 |
|
|
|
903,315 |
|
Commitments and contingencies |
|
|
|
||||
STOCKHOLDERS' EQUITY: |
|||||||
Preferred Stock, |
|
— |
|
|
|
— |
|
Common Stock, 8,551,462 and 8,650,046 outstanding, respectively |
|
86 |
|
|
|
87 |
|
Additional paid-in capital |
|
151,279 |
|
|
|
165,060 |
|
Retained earnings |
|
500,967 |
|
|
|
469,139 |
|
Total stockholders’ equity |
|
652,332 |
|
|
|
634,286 |
|
Total liabilities and stockholders’ equity |
$ |
1,586,076 |
|
|
$ |
1,537,601 |
|
BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
(In thousands) |
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
14,336 |
|
|
$ |
24,466 |
|
|
$ |
31,828 |
|
|
$ |
42,278 |
|
Adjustments to reconcile net income to cash provided by operations: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
10,120 |
|
|
|
7,951 |
|
|
|
19,553 |
|
|
|
15,669 |
|
Amortization of debt discount and issuance costs |
|
330 |
|
|
|
330 |
|
|
|
660 |
|
|
|
659 |
|
Provision for deferred income taxes |
|
(48 |
) |
|
|
337 |
|
|
|
(421 |
) |
|
|
550 |
|
Amortization of deferred gains from real estate |
|
(984 |
) |
|
|
(984 |
) |
|
|
(1,968 |
) |
|
|
(1,968 |
) |
Share-based compensation |
|
1,405 |
|
|
|
1,926 |
|
|
|
3,755 |
|
|
|
6,495 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
14,707 |
|
|
|
4,547 |
|
|
|
(45,127 |
) |
|
|
(42,786 |
) |
Inventories |
|
13,369 |
|
|
|
30,012 |
|
|
|
(13,935 |
) |
|
|
105,001 |
|
Accounts payable |
|
6,339 |
|
|
|
13,084 |
|
|
|
20,123 |
|
|
|
38,504 |
|
Other current assets |
|
(4,055 |
) |
|
|
(15,995 |
) |
|
|
(9,612 |
) |
|
|
(3,169 |
) |
Other assets and liabilities |
|
(19,716 |
) |
|
|
(1,521 |
) |
|
|
(188 |
) |
|
|
(8,115 |
) |
Net cash provided by operating activities |
|
35,803 |
|
|
|
64,153 |
|
|
|
4,668 |
|
|
|
153,118 |
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from sale of assets |
|
147 |
|
|
|
91 |
|
|
|
274 |
|
|
|
128 |
|
Property and equipment investments |
|
(6,454 |
) |
|
|
(5,031 |
) |
|
|
(11,901 |
) |
|
|
(14,039 |
) |
Net cash used in investing activities |
|
(6,307 |
) |
|
|
(4,940 |
) |
|
|
(11,627 |
) |
|
|
(13,911 |
) |
|
|
|
|
|
|
|
|
||||||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Common stock repurchase and retirement |
|
(14,529 |
) |
|
|
(11,599 |
) |
|
|
(14,529 |
) |
|
|
(11,599 |
) |
Repurchase of shares to satisfy employee tax withholdings |
|
(1,545 |
) |
|
|
(3,390 |
) |
|
|
(2,452 |
) |
|
|
(3,960 |
) |
Principal payments on finance lease liabilities |
|
(3,339 |
) |
|
|
(2,133 |
) |
|
|
(6,411 |
) |
|
|
(4,266 |
) |
Net cash used in financing activities |
|
(19,413 |
) |
|
|
(17,122 |
) |
|
|
(23,392 |
) |
|
|
(19,825 |
) |
|
|
|
|
|
|
|
|
||||||||
Net change in cash and cash equivalents |
|
10,083 |
|
|
|
42,091 |
|
|
|
(30,351 |
) |
|
|
119,382 |
|
Cash and cash equivalents at beginning of period |
|
481,309 |
|
|
|
376,234 |
|
|
|
521,743 |
|
|
|
298,943 |
|
Cash and cash equivalents at end of period |
$ |
491,392 |
|
|
$ |
418,325 |
|
|
$ |
491,392 |
|
|
$ |
418,325 |
|
The following schedule presents our revenues disaggregated by specialty and structural product category: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
||||||||
Net sales by product category |
|
|
|
|
|
|
|
||||||||
Specialty products |
$ |
539,466 |
|
|
$ |
570,990 |
|
|
$ |
1,043,300 |
|
|
$ |
1,138,828 |
|
Structural products |
|
228,897 |
|
|
|
244,977 |
|
|
|
451,307 |
|
|
|
475,043 |
|
Total net sales |
$ |
768,363 |
|
|
$ |
815,967 |
|
|
$ |
1,494,607 |
|
|
$ |
1,613,871 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit by product category |
|
|
|
|
|
|
|
||||||||
Specialty products |
$ |
104,350 |
|
|
$ |
108,841 |
|
|
$ |
208,399 |
|
|
$ |
215,468 |
|
Structural products |
|
18,094 |
|
|
|
26,962 |
|
|
|
41,726 |
|
|
|
53,874 |
|
Total gross profit |
$ |
122,444 |
|
|
$ |
135,803 |
|
|
$ |
250,125 |
|
|
$ |
269,342 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin % by product category |
|
|
|
|
|
|
|
||||||||
Specialty products |
|
19.3 |
% |
|
|
19.1 |
% |
|
|
20.0 |
% |
|
|
18.9 |
% |
Structural products |
|
7.9 |
% |
|
|
11.0 |
% |
|
|
9.2 |
% |
|
|
11.3 |
% |
Company gross margin % |
|
15.9 |
% |
|
|
16.6 |
% |
|
|
16.7 |
% |
|
|
16.7 |
% |
BLUELINX HOLDINGS INC. RECONCILIATION OF NON-GAAP MEASUREMENTS (Unaudited) |
|||||||||||||||||||||||
The following schedule reconciles net income to Adjusted EBITDA (non-GAAP): |
|||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
Trailing Twelve Months Ended |
||||||||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||||||
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
14,336 |
|
|
$ |
24,466 |
|
|
$ |
31,828 |
|
|
$ |
42,278 |
|
|
$ |
38,086 |
|
|
$ |
133,773 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization |
|
10,120 |
|
|
|
7,951 |
|
|
|
19,553 |
|
|
|
15,669 |
|
|
|
35,927 |
|
|
|
30,018 |
|
Interest expense, net |
|
4,801 |
|
|
|
6,311 |
|
|
|
9,425 |
|
|
|
13,998 |
|
|
|
19,173 |
|
|
|
33,722 |
|
Provision for income taxes |
|
4,710 |
|
|
|
7,722 |
|
|
|
10,262 |
|
|
|
14,144 |
|
|
|
29,468 |
|
|
|
44,019 |
|
Share-based compensation expense |
|
1,405 |
|
|
|
1,926 |
|
|
|
3,755 |
|
|
|
6,495 |
|
|
|
9,315 |
|
|
|
12,175 |
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(984 |
) |
|
|
(1,968 |
) |
|
|
(1,968 |
) |
|
|
(3,934 |
) |
|
|
(3,934 |
) |
Pension termination and related expenses(1)(2) |
|
— |
|
|
|
594 |
|
|
|
— |
|
|
|
1,188 |
|
|
|
31,628 |
|
|
|
1,188 |
|
Acquisition-related costs(1)(3)(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
|
|
261 |
|
|
|
1,272 |
|
Restructuring and other(1)(4)(5) |
|
7 |
|
|
|
993 |
|
|
|
321 |
|
|
|
4,092 |
|
|
|
143 |
|
|
|
6,930 |
|
Adjusted EBITDA |
$ |
34,395 |
|
|
$ |
48,979 |
|
|
$ |
73,176 |
|
|
$ |
95,913 |
|
|
$ |
160,067 |
|
|
$ |
259,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(1) |
Reflects non-recurring items of approximately |
(2) |
Reflects expenses related to our previously disclosed settlement of the BlueLinx Corporation Hourly Retirement Plan (defined benefit) in 4Q 2023. |
(3) |
Reflects primarily legal, professional, technology and other integration costs. |
(4) |
Reflects 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 (non-GAAP) and Adjusted diluted earnings per share (non-GAAP): |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
(In thousands, except per share data) |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
14,336 |
|
|
$ |
24,466 |
|
|
$ |
31,828 |
|
|
$ |
42,278 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense |
|
1,405 |
|
|
|
1,926 |
|
|
|
3,755 |
|
|
|
6,495 |
|
Amortization of deferred gains on real estate |
|
(984 |
) |
|
|
(984 |
) |
|
|
(1,968 |
) |
|
|
(1,968 |
) |
Pension termination and related expenses |
|
— |
|
|
|
594 |
|
|
|
— |
|
|
|
1,188 |
|
Acquisition-related costs (2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Restructuring and other (2) |
|
7 |
|
|
|
993 |
|
|
|
321 |
|
|
|
4,092 |
|
Tax impacts of reconciling items above (1) |
|
(106 |
) |
|
|
(607 |
) |
|
|
(514 |
) |
|
|
(2,463 |
) |
Adjusted net income |
$ |
14,658 |
|
|
$ |
26,388 |
|
|
$ |
33,422 |
|
|
$ |
49,639 |
|
|
|
|
|
|
|
|
|
||||||||
Basic EPS |
$ |
1.65 |
|
|
$ |
2.70 |
|
|
$ |
3.68 |
|
|
$ |
4.67 |
|
Diluted EPS |
$ |
1.65 |
|
|
$ |
2.70 |
|
|
$ |
3.66 |
|
|
$ |
4.67 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - Basic |
|
8,645 |
|
|
|
9,040 |
|
|
|
8,641 |
|
|
|
9,034 |
|
Weighted average shares outstanding - Diluted |
|
8,686 |
|
|
|
9,057 |
|
|
|
8,680 |
|
|
|
9,051 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Adjusted Basic EPS |
$ |
1.69 |
|
|
$ |
2.92 |
|
|
$ |
3.86 |
|
|
$ |
5.48 |
|
Non-GAAP Adjusted Diluted EPS |
$ |
1.68 |
|
|
$ |
2.91 |
|
|
$ |
3.85 |
|
|
$ |
5.48 |
|
(1) |
Tax impact calculated based on the effective tax rate for the respective three and six-month periods presented |
(2) |
Certain amounts for prior periods in fiscal 2023 have been reclassified for Acquisition-related costs and Restructuring and other |
In the following table, our Adjusted EBITDA margin (non-GAAP) is calculated and compared to Net income as a percentage of Net sales: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
(Dollar amounts in thousands) |
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
768,363 |
|
|
$ |
815,967 |
|
|
$ |
1,494,607 |
|
|
$ |
1,613,871 |
|
Net income |
$ |
14,336 |
|
|
$ |
24,466 |
|
|
$ |
31,828 |
|
|
$ |
42,278 |
|
Net income as a percentage of Net sales |
|
1.9 |
% |
|
|
3.0 |
% |
|
|
2.1 |
% |
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
768,363 |
|
|
$ |
815,967 |
|
|
$ |
1,494,607 |
|
|
$ |
1,613,871 |
|
Adjusted EBITDA - non-GAAP(1) |
$ |
34,395 |
|
|
$ |
48,979 |
|
|
$ |
73,176 |
|
|
$ |
95,913 |
|
Adjusted EBITDA margin - non-GAAP |
|
4.5 |
% |
|
|
6.0 |
% |
|
|
4.9 |
% |
|
|
5.9 |
% |
(1) |
See the table that reconciles Net income to Adjusted EBITDA (non-GAAP) |
The following schedule reconciles Total debt and finance leases to: Net debt (non-GAAP) and to Net debt excluding finance lease liabilities for real property (non-GAAP). The calculations of Net leverage ratio (non-GAAP) and Net leverage ratio excluding real property finance leases liabilities (non-GAAP) is also presented. |
|||||||||||
|
As of |
||||||||||
|
June 29, 2024 |
|
December 30, 2023 |
|
July 1, 2023 |
||||||
($ amounts in thousands) |
|
|
|
|
|
||||||
Long term debt(1) |
$ |
300,000 |
|
|
$ |
300,000 |
|
|
$ |
300,000 |
|
Finance lease liabilities for equipment and vehicles |
|
47,979 |
|
|
|
42,252 |
|
|
|
27,743 |
|
Finance lease liabilities for real property |
|
243,359 |
|
|
|
243,174 |
|
|
|
243,445 |
|
Total debt and finance leases |
|
591,338 |
|
|
|
585,426 |
|
|
|
571,188 |
|
Less: available cash and cash equivalents |
|
491,392 |
|
|
|
521,743 |
|
|
|
418,325 |
|
Net debt (non-GAAP) |
$ |
99,946 |
|
|
$ |
63,683 |
|
|
$ |
152,863 |
|
|
|
|
|
|
|
||||||
Net debt, excluding finance lease liabilities for real property (non-GAAP) |
$ |
(143,413 |
) |
|
$ |
(179,491 |
) |
|
$ |
(90,582 |
) |
|
|
|
|
|
|
||||||
Trailing twelve-month adjusted EBITDA (non-GAAP, see above reconciliation) |
$ |
160,067 |
|
|
$ |
182,804 |
|
|
$ |
259,163 |
|
|
|
|
|
|
|
||||||
Net leverage ratio |
0.6x |
|
0.3x |
0.6x |
|||||||
Net leverage ratio excluding real property finance lease liabilities(2) |
(0.9x |
) |
(1.0x |
) |
(0.3x |
) |
|||||
(1) |
As of June 29, 2024, December 30, 2023, and July 1, 2023, our long-term debt is comprised of |
(2) |
Net leverage ratio excluding finance lease obligations for real property is included within the terms of our revolving credit agreement. |
The following schedule reconciles Net cash provided by operating activities to Free cash flow (non-GAAP): |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
June 29, 2024 |
|
July 1, 2023 |
|
June 29, 2024 |
|
July 1, 2023 |
||||||||
(In thousands) |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
35,803 |
|
|
$ |
64,153 |
|
|
$ |
4,668 |
|
|
$ |
153,118 |
|
Less: Property and equipment investments |
|
(6,454 |
) |
|
|
(5,031 |
) |
|
|
(11,901 |
) |
|
|
(14,039 |
) |
Free cash flow - non-GAAP |
$ |
29,349 |
|
|
$ |
59,122 |
|
|
$ |
(7,233 |
) |
|
$ |
139,079 |
|
|
|
|
|
|
|
|
|
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730081639/en/
Tom Morabito
Investor Relations Officer
(470) 394-0099
investor@bluelinxco.com
Source: BlueLinx Holdings Inc.
FAQ
What were BlueLinx's (BXC) key financial results for Q2 2024?
How did BlueLinx's (BXC) specialty products segment perform in Q2 2024?
What was BlueLinx's (BXC) cash position at the end of Q2 2024?
How much did BlueLinx (BXC) spend on share repurchases in Q2 2024?
What is BlueLinx's (BXC) outlook for Q3 2024?
