BlueLinx Announces Third Quarter 2021 Results
BlueLinx Holdings reported its third quarter results for 2021, with net sales reaching $971 million, an 11% increase year-over-year. Net income decreased by 14% to $47 million, reflecting a decline in commodity wood prices. Adjusted EBITDA fell by 2% to $79 million. Specialty products sales surged by 29% to $641 million, while structural products sales dropped by 12% to $330 million. Cash flow from operations rose significantly to $104 million, up 70%. The company successfully reduced its net leverage ratio to 1.3x.
- Net sales increased by 11% to $971 million.
- Specialty products sales surged by 29% year-over-year.
- Generated strong cash flow from operations of $104 million, up 70%.
- Successful reduction of net leverage ratio to 1.3x.
- Net income decreased by 14% to $47 million.
- Adjusted EBITDA fell by 2% year-over-year.
- Structural products sales declined by 12% to $330 million due to commodity price deflation.
MARIETTA, Ga., Nov. 02, 2021 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the three months ended October 2, 2021.
THIRD QUARTER 2021 HIGHLIGHTS
(All comparisons versus the prior-year period unless otherwise noted)
- Net sales of
$971 million , an increase of11% - Net income of
$47 million , a decrease of14% - Adjusted EBITDA of
$79 million , a decrease of2% - Strong cash flow from operations of
$104 million , up70% - Net leverage ratio reduced for the sixth consecutive quarter to 1.3x
- Completed
$300 million 6.0% senior secured notes offering in October 2021
“As a leading wholesale distributor of building products, BlueLinx continues to deliver a differentiated value proposition across the growing regional markets we serve, one that leverages our deep supplier relationships, diverse product offerings and integrated support services to provide an exceptional customer experience,” stated Dwight Gibson, President & CEO of BlueLinx.
“Our excellent third quarter performance was highlighted by continued growth in specialty product sales and robust cash flow generation,” continued Gibson. “We delivered specialty product gross margins well above historical averages as we continue to capitalize on supplier-led price increases and our value-added services. In contrast, our structural product gross margins were significantly impacted by the historical decline of over
“Looking ahead, our focus remains on developing world class employee engagement and customer service to drive growth within higher-gross margin product and service categories,” continued Gibson. “The demand outlook for construction materials remains strong, with expectations for continued growth in domestic new home construction and renovation activity over a multi-year period.”
“We generated strong cash flow from operations of
THIRD QUARTER FINANCIAL PERFORMANCE
For the three months ended October 2, 2021, BlueLinx generated net sales of
Net sales of specialty products, which includes engineered wood, industrial products, cedar, moulding, siding, metal products and insulation, increased
Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, declined
Adjusted EBITDA was
DEBT AND LIQUIDITY
As of October 2, 2021, total debt and net debt were
On October 18, 2021, the Company completed an offering of
Following these actions, as of October 29, 2021, available liquidity was
BUSINESS UPDATE
BlueLinx remains committed to driving a culture of profitable growth within new and existing product lines and geographies, while positioning the company for long-term value creation. The following initiatives represent key areas of management focus:
- Foster a performance-driven culture committed to profitable growth. BlueLinx is currently focused on enhancing the customer experience; accelerating organic growth within specific product and solutions offerings where the Company is uniquely advantaged; and deploying capital to drive sustained margin expansion, grow cash flow and maintain continued profitable growth.
- Migrate revenue mix toward higher-margin specialty product categories. BlueLinx expects to pursue a revenue mix increasingly weighted toward higher-margin, in-demand specialty product categories. Management also intends to expand on value-added service offerings designed to simplify complex customer sourcing requirements, together with marketing, inventory and pricing services afforded by the Company’s national platform.
- Maintain a disciplined capital structure and pursue high-return investments that support growth. On a trailing twelve-month basis, BlueLinx has significantly transformed its balance sheet, underscored by a material reduction in its net leverage and improved access to liquidity. Given this, the Company expects to accelerate capital investments designed to improve the efficiency and reliability of existing assets, including distribution centers and fleet assets. In the fourth quarter, the Company expects to invest up to
$10 million in its trailer fleet and distribution facilities to improve operational performance and productivity. The Company also continues to evaluate potential acquisition targets that complement its existing capabilities, customer exposure, geographic reach, or a combination thereof.
FOURTH QUARTER TRENDS
- Domestic residential construction activity remained elevated, contributing to sustained demand for construction materials across the Company’s end-markets.
- Specialty products gross margin in October remained consistent with the third quarter given continued robust demand and favorable pricing dynamics across key product categories.
- Structural products gross margin for October was in the low double digits, up sharply versus third quarter. The Company continues to prudently manage structural product inventories, mitigating spot market price exposure.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on November 3, 2021, 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 http://bluelinxco.com/webcast-presentations, and a replay of the webcast will be available at the same site shortly after the webcast is complete.
To participate in the live teleconference:
| Domestic Live: | 1-877-407-4018 |
| Passcode: | 13723645 |
To listen to a replay of the teleconference, which will be available through November 17, 2021:
| Domestic Replay: | 1-844-512-2921 |
| Passcode: | 13723645 |
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.
Adjusted EBITDA . BlueLinx defines Adjusted EBITDA as an amount equal to net income 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 and professional fees and integration costs related to the Cedar Creek acquisition, and gains on sales of properties including amortization of deferred gains.
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. However, Adjusted EBITDA is not a presentation made in accordance with GAAP and is not intended to present a superior measure of our financial condition from those measures determined under GAAP. Adjusted EBITDA, 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.
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 and Net Leverage Ratio . 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 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.
Our net debt and overall net leverage ratio are not presentations 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. In addition, our net debt and overall net leverage ratio, as used herein, are 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.
ABOUT BLUELINX HOLDINGS
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, metal building products, and other construction materials. With a strong market position, broad geographic coverage footprint servicing 40 states, and the strength of a locally-focused sales force, we distribute our comprehensive range of products to over 15,000 national, regional, and local dealers, specialty distributors, national home centers, and manufactured housing customers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers. We are headquartered in Georgia, with executive offices located at 1950 Spectrum Circle, Marietta, Georgia, and we operate our distribution business through a broad network of distribution centers. BlueLinx encourages investors to visit its website, www.BlueLinxCo.com, which is updated regularly with financial and other important information about BlueLinx.
INVESTOR & MEDIA CONTACT
Ryan Taylor, VP Investor Relations & Treasury
BlueLinx Holdings Inc.
investor@bluelinxco.com
OR
Noel Ryan, Senior Partner
Vallum Advisors
BXC@val-adv.com
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “project,” “plan,” “will be,” “will likely continue,” “will likely result” or words or phrases of similar meaning. The forward-looking statements in this press release include statements about our ability to continue 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 and renovation activity; our positioning for long-term value creation; our efforts and ability to foster a performance-driven culture and generate profitable growth; our efforts and ability to migrate our revenue mix toward higher-margin specialty product categories, and the benefits thereof; our efforts and ability to maintain a disciplined capital structure and pursue high-return investments and the benefits thereof; our expectations for fleet and facility investment and the benefits thereof; our evaluation of potential acquisition targets; and the items under the heading “Fourth Quarter Trends”.
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 difference include, among other things: pricing and product cost variability; volumes of product sold; changes in the prices, supply, and/or demand for products that we distribute; the cyclical nature of the industry in which we operate; housing market conditions; the COVID-19 pandemic and other contagious illness outbreaks and their potential effects on our industry; effective inventory management relative to our sales volume or the prices of the products we produce; information technology security risks and business interruption risks; increases in petroleum prices; 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; business disruptions; exposure to product liability and other claims and legal proceedings related to our business and the products we distribute; natural disasters, catastrophes, fire, 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; our level of indebtedness and our ability to incur additional debt to fund future needs; the risk that our cash flows and capital resources may be insufficient to service our existing or future indebtedness; the covenants of the instruments governing our indebtedness limiting the discretion of our management in operating our business; 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; changes in our product mix; shareholder activism; potential acquisitions and the integration and completion of such acquisitions; 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 possibility that we could be the subject of securities class action litigation due to stock price volatility; 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)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||
| Net sales | $ | 970,842 | $ | 871,063 | $ | 3,304,224 | $ | 2,231,909 | |||||||||||
| Cost of sales | 817,515 | 711,603 | 2,719,333 | 1,878,420 | |||||||||||||||
| Gross profit | 153,327 | 159,460 | 584,891 | 353,489 | |||||||||||||||
| Gross margin | 15.8 | % | 18.3 | % | 17.7 | % | 15.8 | % | |||||||||||
| Operating expenses (income): | |||||||||||||||||||
| Selling, general, and administrative | 76,176 | 79,976 | 238,746 | 225,258 | |||||||||||||||
| Depreciation and amortization | 6,884 | 7,087 | 21,429 | 21,785 | |||||||||||||||
| Amortization of deferred gains on real estate | (984 | ) | (984 | ) | (2,951 | ) | (2,952 | ) | |||||||||||
| Gains from sales of property | — | (8,684 | ) | (1,287 | ) | (9,209 | ) | ||||||||||||
| Other operating expenses | 212 | 609 | 1,197 | 6,736 | |||||||||||||||
| Total operating expenses | 82,288 | 78,004 | 257,134 | 241,618 | |||||||||||||||
| Operating income | 71,039 | 81,456 | 327,757 | 111,871 | |||||||||||||||
| Non-operating expenses (income): | |||||||||||||||||||
| Interest expense, net | 8,313 | 10,776 | 33,690 | 36,691 | |||||||||||||||
| Other income, net | (704 | ) | (238 | ) | (1,335 | ) | (58 | ) | |||||||||||
| Income before provision for income taxes | 63,430 | 70,918 | 295,402 | 75,238 | |||||||||||||||
| Provision for income taxes | 16,232 | 15,802 | 72,886 | 14,214 | |||||||||||||||
| Net income | $ | 47,198 | $ | 55,116 | $ | 222,516 | $ | 61,024 | |||||||||||
| Basic income per share | $ | 4.85 | $ | 5.83 | $ | 23.23 | $ | 6.49 | |||||||||||
| Diluted income per share | $ | 4.74 | $ | 5.72 | $ | 22.91 | $ | 6.48 | |||||||||||
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| October 2, 2021 | January 2, 2021 | ||||||||
| (In thousands, except share data) | |||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash | $ | 186 | $ | 82 | |||||
| Receivables, less allowances of | 344,974 | 293,643 | |||||||
| Inventories, net | 436,438 | 342,108 | |||||||
| Other current assets | 38,828 | 32,581 | |||||||
| Total current assets | 820,426 | 668,414 | |||||||
| Property and equipment, at cost | 309,108 | 299,935 | |||||||
| Accumulated depreciation | (131,587 | ) | (121,223 | ) | |||||
| Property and equipment, net | 177,521 | 178,712 | |||||||
| Operating lease right-of-use assets | 51,178 | 51,142 | |||||||
| Goodwill | 47,772 | 47,772 | |||||||
| Intangible assets, net | 14,699 | 18,889 | |||||||
| Deferred tax assets | 70,683 | 62,899 | |||||||
| Other non-current assets | 20,052 | 20,302 | |||||||
| Total assets | $ | 1,202,331 | $ | 1,048,130 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 210,386 | $ | 165,163 | |||||
| Accrued compensation | 18,330 | 24,751 | |||||||
| Taxes payable | 6,488 | 7,847 | |||||||
| Current maturities of long-term debt, net of debt issuance costs of | — | 1,171 | |||||||
| Finance lease liabilities - short-term | 5,606 | 5,675 | |||||||
| Operating lease liabilities - short-term | 4,881 | 6,076 | |||||||
| Real estate deferred gains - short-term | 4,040 | 4,040 | |||||||
| Other current liabilities | 13,527 | 14,309 | |||||||
| Total current liabilities | 263,258 | 229,032 | |||||||
| Non-current liabilities: | |||||||||
| Long-term debt, net of debt issuance costs of | 219,541 | 321,270 | |||||||
| Finance lease liabilities - long-term | 271,314 | 267,443 | |||||||
| Operating lease liabilities - long-term | 46,412 | 44,965 | |||||||
| Real estate deferred gains - long-term | 75,157 | 78,009 | |||||||
| Pension benefit obligation | 19,926 | 22,684 | |||||||
| Other non-current liabilities | 24,497 | 25,635 | |||||||
| Total liabilities | 920,105 | 989,038 | |||||||
| Commitments and contingencies | |||||||||
| STOCKHOLDERS' EQUITY: | |||||||||
| Common Stock, 9,723,838 and 9,462,774 outstanding on October 2, 2021 and January 2, 2021, respectively | 97 | 95 | |||||||
| Additional paid-in capital | 266,564 | 266,695 | |||||||
| Accumulated other comprehensive loss | (35,245 | ) | (35,992 | ) | |||||
| Accumulated stockholders’ equity (deficit) | 50,810 | (171,706 | ) | ||||||
| Total stockholders’ equity | 282,226 | 59,092 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,202,331 | $ | 1,048,130 | |||||
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $ | 47,198 | $ | 55,116 | $ | 222,516 | $ | 61,024 | |||||||||||
| Adjustments to reconcile net income to cash provided by operations: | |||||||||||||||||||
| Provision for income taxes | 16,232 | 15,802 | 72,886 | 14,214 | |||||||||||||||
| Depreciation and amortization | 6,884 | 7,087 | 21,429 | 21,785 | |||||||||||||||
| Amortization of debt issuance costs | 528 | 985 | 1,560 | 2,888 | |||||||||||||||
| Adjustments to debt issuance costs associated with term loan | — | — | 5,791 | — | |||||||||||||||
| Gains from sales of property | — | (8,684 | ) | (1,287 | ) | (9,209 | ) | ||||||||||||
| Amortization of deferred gains from real estate | (984 | ) | (984 | ) | (2,951 | ) | (2,951 | ) | |||||||||||
| Share-based compensation | 1,608 | 1,057 | 5,010 | 2,915 | |||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | 92,243 | (43,942 | ) | (51,331 | ) | (115,712 | ) | ||||||||||||
| Inventories | (10,724 | ) | 7,949 | (94,330 | ) | 39,776 | |||||||||||||
| Accounts payable | (16,714 | ) | 20,028 | 45,223 | 46,600 | ||||||||||||||
| Other current assets | (2,574 | ) | 1,820 | (7,083 | ) | (1,380 | ) | ||||||||||||
| Pension contribution | (126 | ) | — | (325 | ) | (142 | ) | ||||||||||||
| Other assets and liabilities | (29,313 | ) | 5,261 | (90,249 | ) | 14,588 | |||||||||||||
| Net cash provided by operating activities | 104,258 | 61,495 | 126,859 | 74,396 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Proceeds from sale of assets | 552 | 10,640 | 2,652 | 10,742 | |||||||||||||||
| Property and equipment investments | (2,524 | ) | (191 | ) | (5,424 | ) | (1,943 | ) | |||||||||||
| Net cash provided by (used in) investing activities | (1,972 | ) | 10,449 | (2,772 | ) | 8,799 | |||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Borrowings on revolving credit facilities | 261,823 | 191,464 | 900,006 | 541,700 | |||||||||||||||
| Repayments on revolving credit facilities | (359,123 | ) | (250,712 | ) | (965,142 | ) | (605,221 | ) | |||||||||||
| Repayments on term loan | — | (11,009 | ) | (43,204 | ) | (88,861 | ) | ||||||||||||
| Proceeds from real estate financing transactions | — | — | — | 78,263 | |||||||||||||||
| Debt financing costs | (1,950 | ) | (318 | ) | (2,811 | ) | (2,983 | ) | |||||||||||
| Repurchase of shares to satisfy employee tax withholdings | (3 | ) | (1 | ) | (5,135 | ) | (255 | ) | |||||||||||
| Principal payments on finance lease liabilities | (3,026 | ) | (2,893 | ) | (7,697 | ) | (7,327 | ) | |||||||||||
| Net cash used in financing activities | (102,279 | ) | (73,320 | ) | (123,983 | ) | (84,684 | ) | |||||||||||
| Net change in cash | 7 | (1,376 | ) | 104 | (1,489 | ) | |||||||||||||
| Cash at beginning of period | 179 | 11,530 | 82 | 11,643 | |||||||||||||||
| Cash at end of period | $ | 186 | $ | 10,154 | $ | 186 | $ | 10,154 | |||||||||||
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 | |||||||||||||||||||||||||||
| October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | October 2, 2021 | September 26, 2020 | ||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||||
| Net income | $ | 47,198 | $ | 55,116 | $ | 222,516 | $ | 61,024 | $ | 242,374 | $ | 50,829 | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
| Depreciation and amortization | 6,884 | 7,087 | 21,429 | 21,785 | 28,546 | 29,609 | |||||||||||||||||||||||
| Interest expense, net | 8,313 | 10,776 | 27,899 | 36,691 | 38,621 | 50,382 | |||||||||||||||||||||||
| Term loan debt issuance costs(1) | — | — | 5,791 | — | 5,791 | — | |||||||||||||||||||||||
| Provision for income taxes | 16,232 | 15,802 | 72,886 | 14,214 | 72,872 | 10,193 | |||||||||||||||||||||||
| Share-based compensation expense | 1,608 | 1,057 | 5,010 | 2,915 | 8,087 | 3,012 | |||||||||||||||||||||||
| Pension settlement and withdrawal cost | (391 | ) | — | (391 | ) | — | (506 | ) | 3,529 | ||||||||||||||||||||
| Amortization of deferred gains on real estate | (984 | ) | (984 | ) | (2,951 | ) | (2,951 | ) | (4,009 | ) | (3,940 | ) | |||||||||||||||||
| Gain from sales of property(1) | — | (8,684 | ) | (1,287 | ) | (9,209 | ) | (2,607 | ) | (12,492 | ) | ||||||||||||||||||
| Real estate financing costs(1) | — | — | — | 1,793 | — | 1,793 | |||||||||||||||||||||||
| Merger and acquisition costs(1)(2) | 214 | 139 | 214 | 1,818 | 320 | 4,788 | |||||||||||||||||||||||
| Restructuring and other(1)(3) | — | 472 | 985 | 3,769 | 1,158 | 5,072 | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 79,074 | $ | 80,781 | $ | 352,101 | $ | 131,849 | $ | 390,647 | $ | 142,775 | |||||||||||||||||
(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 schedule presents Net Debt and the Net Leverage Ratio for the Trailing Twelve Months:
| Trailing Twelve Months | |||||||
| October 2, 2021 | September 26, 2020 | ||||||
| (In thousands) | |||||||
| Current maturities of long term debt, gross of debt issuance costs | $ | — | $ | 1,609 | |||
| Finance lease liabilities - short term | 5,606 | 5,469 | |||||
| Long term debt, gross of debt issuance costs | 223,149 | 319,179 | |||||
| Finance lease liabilities - long term | 271,314 | 267,753 | |||||
| Total long-term debt | 500,069 | 594,010 | |||||
| Less: available cash | 186 | 10,154 | |||||
| Net Debt | 499,883 | 583,856 | |||||
| Trailing twelve month Adjusted EBITDA | $ | 390,647 | $ | 142,775 | |||
| Net Leverage Ratio | 1.3x | 4.1x | |||||
The following schedule presents free cash flow:
| Quarterly Period Ended | |||||||||
| October 2, 2021 | September 26, 2020 | ||||||||
| Net cash provided by operating activities | $ | 104,258 | $ | 61,495 | |||||
| Less: Property and equipment investments | (2,524 | ) | (191 | ) | |||||
| Free cash flow | $ | 101,734 | $ | 61,304 | |||||
FAQ
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