BlueLinx Announces Third Quarter 2024 Results

Rhea-AI Summary

BlueLinx Holdings (NYSE: BXC) reported Q3 2024 financial results with net sales of $747 million, down 8% year-over-year. The company achieved gross profit of $126 million with a 16.8% margin, and net income of $16 million ($1.87 per diluted share). Specialty products sales were $519 million, while structural products contributed $228 million. The company maintained strong liquidity of $873 million, including $526 million in cash, and generated free cash flow of $54 million. During the quarter, BlueLinx repurchased $15 million in shares, with $61 million remaining in the authorization.

Positive

• Strong liquidity position of $873 million with $526 million cash on hand
• Free cash flow generation of $54 million in Q3
• Solid volume growth in specialty and structural products
• Net leverage ratio of -1.2x indicating strong balance sheet
• Continued share repurchase program execution with $15 million in buybacks

Negative

• Net sales decreased 8% year-over-year to $747 million
• Net income declined to $16 million from $24 million in prior year
• Gross margin declined 40 basis points year-over-year to 16.8%
• Specialty products sales decreased 7.1% to $519 million
• Structural products sales fell 9.1% to $228 million

Insights

Financial Analyst

BlueLinx's Q3 results show resilience amid challenging market conditions. Net sales of $747 million represent an 8% YoY decline, while gross margins held relatively steady at 16.8%. The company maintains a robust balance sheet with $526 million in cash and available liquidity of $873 million.

Notable strengths include strong free cash flow generation of $54 million and a negative net leverage ratio of -1.2x, indicating excellent financial health. The continued share repurchase program ($15 million in Q3) and solid specialty products gross margin of 19.4% demonstrate operational stability despite price deflation pressures.

Key concerns include declining adjusted EBITDA margins (from 6.2% to 4.9% YoY) and lower EPS ($1.87 vs $2.71). The Q4 outlook suggests continued margin pressure, with specialty and structural product margins expected to slightly contract.

Market Research Analyst

The building products sector faces headwinds, reflected in BlueLinx's performance. Volume growth in specialty and structural products demonstrates underlying demand strength, but price deflation continues to impact revenue. The specialty products segment, representing 69.5% of total sales, shows resilience with margins holding above 18%.

The company's strategic positioning and substantial liquidity provide a buffer against market volatility. The digital transformation investment signals long-term modernization efforts, though it's increasing SG&A expenses. Market conditions remain challenging, but BlueLinx's strong balance sheet and cash position suggest it's well-prepared for an eventual industry rebound.

ATLANTA--(BUSINESS WIRE)-- BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the three months ended September 28, 2024.

THIRD QUARTER 2024 HIGHLIGHTS

• Net sales of $747 million
• Gross profit of $126 million, gross margin of 16.8% and specialty product gross margin of 19.4%, which includes a net benefit of approximately $3.5 million related to import duties from prior periods
• Net income of $16 million, or $1.87 diluted earnings per share
• Adjusted net income of $17 million, or $1.95 adjusted diluted earnings per share
• Adjusted EBITDA of $37 million, or 4.9% of net sales, which includes a net benefit of approximately $3.5 million related to import duties from prior periods
• Operating cash flow of $62 million and free cash flow of $54 million
• Available liquidity of $873 million, including $526 million cash and cash equivalents on hand
• $15 million in share repurchases, with $61 million remaining on the share repurchase authorization as of quarter-end

“Our third quarter results delivered solid volume growth in several of our key specialty product categories, as well as strong volume growth across our structural products business,” said Shyam Reddy, President and CEO of BlueLinx. “Specialty products’ gross margins were within our expected range and structural products’ gross margins were strong, despite the effects of continued price deflation for both product categories. Current market conditions remain challenging, but we believe our growth strategy, significant liquidity, and strong balance sheet will continue to position us well for an industry rebound.”

“Our strong free cash flow generation of $54 million during the third quarter resulted in a cash balance of $526 million and a net leverage ratio of (1.2x),” said Andy Wamser, Senior Vice President, Chief Financial Officer and Treasurer of BlueLinx. “During the third quarter, we purchased $15 million of stock under our share repurchase program, once again showing our commitment to returning capital to shareholders. At the end of the quarter, we had $61 million remaining on our share repurchase authorization, and we will continue to be opportunistic in the market.”

THIRD QUARTER 2024 FINANCIAL PERFORMANCE

In the third quarter of 2024, net sales were $747 million, a decrease of $63 million, or 8% when compared to the third quarter of 2023. Gross profit was $126 million, a decrease of $14 million, or 10%, year-over-year, and gross margin was 16.8%, down 40 basis points from the same period last year.

Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, were $519 million, a decrease of $40 million, or 7.1% when compared to the third quarter of 2023. This decrease was due to price deflation across specialty products, partially offset by an increase in volumes. Gross profit from specialty product sales was $100 million, a decrease of $10 million, or 9.4% when compared to the third quarter of last year. Gross margin for specialty products was 19.4% compared to 19.8% in the prior year period. The current period included a net benefit of $3.5 million for import duty-related items from prior periods. Excluding this benefit, gross margin was 18.7%. The duty items were related to changes in retroactive rates for anti-dumping duties and to classification adjustments for certain goods imported by the Company.

Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, decreased $23 million, or 9.1% when compared to the third quarter of 2023, to $228 million in the third quarter of 2024. The decrease in structural sales was due to price deflation in both lumber and panels, partially offset by an increase in volumes. Gross profit from sales of structural products was $25 million, a decrease of $3 million from the prior year period, and gross margin was 11.0%, compared to 11.3% in the prior year period. Gross profit and gross margin for current period were positively impacted by a $2.4 million inventory write-down for certain structural products at the end of the second quarter 2024 that resulted in lower cost of products sold in the third quarter 2024 since substantially all of the inventory associated with the write-down was sold during third quarter of fiscal 2024. This adjustment increased the current quarter’s gross margin for structural products by 100 basis points. The third quarter of fiscal 2023 was negatively impacted by a $0.6 million interim period provision for inventory related to our structural products.

Excluding the structural products inventory write-down at the end of second quarter 2024 that benefited cost of products sold in the current quarter, and the duty-related items for specialty products, both totaling $5.9 million, Company gross margin was 16.0% for the third quarter.

Selling, general and administrative (“SG&A”) expenses were $92 million in the third quarter of 2024, $1 million higher than the prior year period. The year-over-year change in SG&A was primarily due to higher technology expenses associated with our digital transformation, partially offset by lower fleet-related logistics costs.

Net income was $16 million, or $1.87 per diluted share, versus $24 million, or $2.71 per diluted share, in the prior year period. Adjusted Net Income was $17 million, or $1.95 per diluted share compared to $27 million, or $2.98 per diluted share in the third quarter of last year. The 2024 period reflects a pre-tax benefit of $2.2 million related to an adjustment of the settlement charge recorded in the fourth quarter of 2023 related to the termination of our defined benefit pension plan. This benefit was partially offset by $1.2 million of estimated net losses related to Hurricane Helene in September 2024, which is reported within Other operating expenses, net on our unaudited condensed consolidated statements of operations.

Adjusted EBITDA was $37 million, or 4.9% of net sales, for the third quarter of 2024, compared to $50 million, or 6.2% of net sales in the third quarter of 2023. The current period includes the benefit of the duty-related matters, and not including these items, Adjusted EBITDA was $33 million, or 4.4% of net sales. Adjusted EBITDA excludes the aforementioned adjustment of the pension settlement and estimated insurance deductibles.

Net cash generated from operating activities was $62 million in the third quarter of 2024 and free cash flow was $54 million. The cash generated during the third quarter was driven by net income and improved working capital.

CAPITAL ALLOCATION AND FINANCIAL POSITION

During the third quarter, we invested $8 million of cash in capital investments primarily used to improve our distribution facilities and for our digital transformation initiative. Additionally, we purchased approximately $15 million of the Company’s common stock through open market transactions under our $100 million share repurchase program. At quarter-end, we had $61 million remaining under this authorization and we plan to continue to be opportunistic with respect to repurchasing shares.

As of September 28, 2024, total debt and finance lease obligations, but excluding real property finance lease obligations, was $351 million. This consisted of $300 million of senior secured notes that mature in 2029 and $51 million of finance lease obligations for equipment. Net debt was ($176) million, which consisted of total debt and finance leases excluding real property finance lease obligations of $351 million less cash and cash equivalents of $526 million, resulting in a net leverage ratio of (1.2x) using a trailing twelve-month Adjusted EBITDA of $146 million. Available liquidity was $873 million which included an undrawn revolving credit facility that had $346 million of availability plus cash and cash equivalents of $526 million.

FOURTH QUARTER 2024 OUTLOOK

Through the first four weeks of the fourth quarter of 2024, specialty product gross margin was in the range of 18% to 19% and structural product gross margin was in the range of 9% to 10%. Average daily sales volumes improved slightly versus the third quarter of 2024.

CONFERENCE CALL INFORMATION

BlueLinx will host a conference call on October 30, 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 November 13, 2024:

Domestic Replay: 1-800-770-2030
Passcode: 9140086

ABOUT BLUELINX

BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products. With a strong market position, broad geographic coverage footprint servicing 50 states, and the strength of a locally focused sales force, we distribute a comprehensive range of products to our customers which include national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers, and we operate our business through a broad network of distribution centers. To learn more about BlueLinx, please visit www.bluelinxco.com.

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-party 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								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands, except per share amounts)
Net sales	$	747,288			$	809,981			$	2,241,895			$	2,423,852
Cost of products sold		621,619				670,735				1,866,101				2,015,264
Gross profit		125,669				139,246				375,794				408,588
Gross margin		16.8	%			17.2	%			16.8	%			16.9	%
Operating expenses (income):
Selling, general, and administrative		92,210				91,354				272,913				271,278
Depreciation and amortization		9,530				8,089				29,083				23,758
Amortization of deferred gains on real estate		(984	)			(984	)			(2,952	)			(2,952	)
Other operating expenses, net		888				1,131				1,210				5,240
Total operating expenses		101,644				99,590				300,254				297,324
Operating income		24,025				39,656				75,540				111,264
Non-operating expenses:
Interest expense, net		4,619				5,577				14,044				19,575
Settlement of defined benefit pension plan		(2,226	)			—				(2,226	)			—
Other expense, net		—				594				—				1,782
Income before provision for income taxes		21,632				33,485				63,722				89,907
Provision for income taxes		5,616				9,103				15,878				23,247
Net income	$	16,016			$	24,382			$	47,844			$	66,660
Basic earnings per share	$	1.88			$	2.72			$	5.54			$	7.39
Diluted earnings per share	$	1.87			$	2.71			$	5.53			$	7.38

BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
	September 28, 2024				December 30, 2023
(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	526,281			$	521,743
Receivables, less allowances of $3,244 and $3,398, respectively		278,049				228,410
Inventories, net		340,541				343,638
Other current assets		36,500				26,608
Total current assets		1,181,371				1,120,399
Property and equipment, at cost		423,842				396,321
Accumulated depreciation		(187,992	)			(170,334	)
Property and equipment, net		235,850				225,987
Operating lease right-of-use assets		45,647				37,227
Goodwill		55,372				55,372
Intangible assets, net		27,834				30,792
Deferred income tax asset, net		51,306				53,256
Other non-current assets		13,699				14,568
Total assets	$	1,611,079			$	1,537,601
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	186,319			$	157,931
Accrued compensation		18,400				14,273
Finance lease liabilities - current		12,547				11,178
Operating lease liabilities - current		8,276				6,284
Real estate deferred gains - current		3,935				3,935
Other current liabilities		28,247				24,961
Total current liabilities		257,724				218,562
Long-term debt		294,733				293,743
Finance lease liabilities, less current portion		281,263				274,248
Operating lease liabilities, less current portion		38,752				32,519
Real estate deferred gains, less current portion		64,280				66,599
Other non-current liabilities		18,738				17,644
Total liabilities		955,490				903,315
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.01 par value, 30,000,000 shares authorized, none outstanding		—				—
Common Stock, $0.01 par value, 20,000,000 shares authorized, 8,423,383 and 8,650,046 outstanding, respectively		84				87
Additional paid-in capital		138,522				165,060
Retained earnings		516,983				469,139
Total stockholders’ equity		655,589				634,286
Total liabilities and stockholders’ equity	$	1,611,079			$	1,537,601

BLUELINX HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Three Months Ended								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands)
Cash flows from operating activities:
Net income	$	16,016			$	24,382			$	47,844			$	66,660
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization		9,530				8,089				29,083				23,758
Amortization of debt discount and issuance costs		330				330				990				989
Settlement of frozen defined benefit pension plan		(2,226	)			—				(2,226	)			—
Provision for deferred income taxes		2,371				567				1,950				1,117
Amortization of deferred gains from real estate		(984	)			(984	)			(2,952	)			(2,952	)
Share-based compensation		3,186				2,980				6,941				9,475
Changes in operating assets and liabilities:
Accounts receivable		(2,286	)			(3,227	)			(47,413	)			(46,013	)
Inventories		17,032				15,150				3,097				120,151
Accounts payable		7,809				11,287				27,932				49,791
Other current assets		(280	)			5,790				(9,892	)			2,621
Other assets and liabilities		11,268				13,242				11,080				5,127
Net cash provided by operating activities		61,766				77,606				66,434				230,724
Cash flows from investing activities:
Proceeds from sale of assets		565				63				839				191
Property and equipment investments		(7,929	)			(4,899	)			(19,830	)			(18,938	)
Net cash used in investing activities		(7,364	)			(4,836	)			(18,991	)			(18,747	)
Cash flows from financing activities:
Common stock repurchase and retirement		(15,453	)			(17,722	)			(29,982	)			(29,321	)
Repurchase of shares to satisfy employee tax withholdings		(805	)			(1,197	)			(3,257	)			(5,157	)
Principal payments on finance lease liabilities		(3,255	)			(2,393	)			(9,666	)			(6,659	)
Net cash used in financing activities		(19,513	)			(21,312	)			(42,905	)			(41,137	)
Net change in cash and cash equivalents		34,889				51,458				4,538				170,840
Cash and cash equivalents at beginning of period		491,392				418,325				521,743				298,943
Cash and cash equivalents at end of period	$	526,281			$	469,783			$	526,281			$	469,783

The following schedule presents our revenues disaggregated by specialty and structural product category:
	Three Months Ended								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(Dollar amounts in thousands)
Net sales by product category
Specialty products	$	519,000			$	558,851			$	1,562,300			$	1,697,679
Structural products		228,288				251,130				679,595				726,173
Total net sales	$	747,288			$	809,981			$	2,241,895			$	2,423,852
Gross profit by product category
Specialty products	$	100,479			$	110,898			$	308,878			$	326,366
Structural products		25,190				28,348				66,916				82,222
Total gross profit	$	125,669			$	139,246			$	375,794			$	408,588
Gross margin % by product category
Specialty products		19.4	%			19.8	%			19.8	%			19.2	%
Structural products		11.0	%			11.3	%			9.8	%			11.3	%
Company gross margin %		16.8	%			17.2	%			16.8	%			16.9	%

BLUELINX HOLDINGS INC. RECONCILIATION OF NON-GAAP MEASUREMENTS (Unaudited)
The following two tables reconcile Net income to Adjusted EBITDA (non-GAAP) for the reporting periods indicated:
	Three Months Ended								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands)
Net income	$	16,016			$	24,382			$	47,844			$	66,660
Adjustments:
Depreciation and amortization		9,530				8,089				29,083				23,758
Interest expense, net		4,619				5,577				14,044				19,575
Provision for income taxes		5,616				9,103				15,878				23,247
Share-based compensation expense		3,186				2,980				6,941				9,475
Amortization of deferred gains on real estate		(984	)			(984	)			(2,952	)			(2,952	)
Gain from sales of property(1)		(272	)			—				(272	)			—
Pension settlement and related cost(1)(2)		(2,226	)			594				(2,226	)			1,782
Acquisition-related costs(1)(3)(5)		—				75				—				92
Restructuring and other(1)(4)(5)		1,160				606				1,481				4,699
Adjusted EBITDA	$	36,645			$	50,422			$	109,821			$	146,336

	Trailing Twelve Months Ended
	September 28, 2024				December 30, 2023				September 30, 2023
(In thousands)
Net income	$	29,720			$	48,536			$	98,646
Adjustments:
Depreciation and amortization		37,368				32,043				31,419
Interest expense, net		18,215				23,746				28,855
Provision for income taxes		25,981				33,350				31,988
Share-based compensation expense		9,521				12,055				13,063
Amortization of deferred gains on real estate		(3,934	)			(3,934	)			(3,935	)
Gain from sales of property(1)		(272	)			—				—
Pension settlement and related cost(1)(2)		28,808				32,817				1,782
Acquisition-related costs(1)(3)(5)		186				278				1,114
Restructuring and other(1)(4)(5)		697				3,913				6,503
Adjusted EBITDA	$	146,290			$	182,804			$	209,435
The following notes relate to both of the tables presented above for Adjusted EBITDA:

(1)		Reflects non-recurring items of approximately $1.3 million in non-beneficial items in the current quarter and $1.3 million in beneficial items in the prior quarterly period. For the current year nine-month period, reflects non-recurring non-beneficial items of approximately $1.0 million and the prior year nine-month period reflects $6.6 million of non-recurring, beneficial items. For the trailing twelve months ended, reflects approximately $29.4 million of non-recurring, beneficial items, and approximately $9.4 million of non-recurring, beneficial items, in the prior trailing twelve- month period.
(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 net losses related to Hurricane Helene in 3Q 2024, our 2023 restructuring efforts such as severance, net of other one-time non-operating items in 2024 and 2023.
(5)		Certain amounts for 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								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands, except per share data)
Net income	$	16,016			$	24,382			$	47,844			$	66,660
Adjustments:
Share-based compensation expense		3,186				2,980				6,941				9,475
Amortization of deferred gains on real estate		(984	)			(984	)			(2,952	)			(2,952	)
Gain from sale of property		(272	)			—				(272	)			—
Pension settlement and related cost		(2,226	)			594				(2,226	)			1,782
Acquisition-related costs (2)		—				75				—				92
Restructuring and other (2)		1,160				606				1,481				4,699
Tax impacts of reconciling items above (1)		(224	)			(889	)			(741	)			(3,387	)
Adjusted net income	$	16,656			$	26,764			$	50,075			$	76,369
Basic EPS	$	1.88			$	2.72			$	5.54			$	7.39
Diluted EPS	$	1.87			$	2.71			$	5.53			$	7.38
Weighted average shares outstanding - Basic		8,496				8,936				8,623				9,010
Weighted average shares outstanding - Diluted		8,528				8,970				8,647				9,027
Non-GAAP Adjusted Basic EPS	$	1.96			$	2.99			$	5.80			$	8.47
Non-GAAP Adjusted Diluted EPS	$	1.95			$	2.98			$	5.79			$	8.45

(1)		Tax impact calculated based on the effective income tax rate for the respective three and nine-month periods presented
(2)		Certain amounts for prior periods in fiscal 2023 have been reclassified for Acquisition-related costs and Restructuring and other

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								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(Dollar amounts in thousands)
Net sales	$	747,288			$	809,981			$	2,241,895			$	2,423,852
Net income	$	16,016			$	24,382			$	47,844			$	66,660
Net income as a percentage of Net sales		2.1	%			3.0	%			2.1	%			2.8	%
Net sales	$	747,288			$	809,981			$	2,241,895			$	2,423,852
Adjusted EBITDA - non-GAAP(1)	$	36,645			$	50,422			$	109,821			$	146,336
Adjusted EBITDA margin - non-GAAP		4.9	%			6.2	%			4.9	%			6.0	%

(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) are also presented.
	As of
	September 28, 2024				December 30, 2023				September 30, 2023
($ amounts in thousands)
Long term debt(1)	$	300,000			$	300,000			$	300,000
Finance lease liabilities for equipment and vehicles		50,752				42,252				34,008
Finance lease liabilities for real property		243,058				243,174				243,335
Total debt and finance leases		593,810				585,426				577,343
Less: available cash and cash equivalents		526,281				521,743				469,783
Net debt (non-GAAP)	$	67,529			$	63,683			$	107,560
Net debt, excluding finance lease liabilities for real property (non-GAAP)	$	(175,529	)		$	(179,491	)		$	(135,775	)
Trailing twelve-month adjusted EBITDA (non-GAAP, see above reconciliations)	$	146,290			$	182,804			$	209,435
Net leverage ratio	0.5x				0.3x				0.5x
Net leverage ratio excluding real property finance lease liabilities(2)	(1.2x)				(1.0x)				(0.6x)

(1)		As of September 28, 2024, December 30, 2023, and September 30, 2023, our long-term debt is comprised of $300 million of senior-secured notes issued in October 2021. These notes are presented under the long-term debt caption of our unaudited condensed consolidated balance sheets at $294.7 million, $293.7 million, and $293.4 million as of September 28, 2024, December 30, 2023, and September 30, 2023, respectively. This presentation is net of their unamortized issuance costs and discount. Our senior secured notes are presented in this table at their face value for the purposes of calculating our net leverage ratio.
(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								Nine Months Ended
	September 28, 2024				September 30, 2023				September 28, 2024				September 30, 2023
(In thousands)
Net cash provided by operating activities	$	61,766			$	77,606			$	66,434			$	230,724
Less: Property and equipment investments		(7,929	)			(4,899	)			(19,830	)			(18,938	)
Free cash flow - non-GAAP	$	53,837			$	72,707			$	46,604			$	211,786

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029284536/en/

Tom Morabito

Investor Relations Officer

(470) 394-0099

investor@bluelinxco.com

Source: BlueLinx Holdings Inc.

FAQ

What was BlueLinx (BXC) Q3 2024 revenue?

BlueLinx reported net sales of $747 million in Q3 2024, representing an 8% decrease compared to Q3 2023.

What was BlueLinx (BXC) earnings per share in Q3 2024?

BlueLinx reported diluted earnings per share of $1.87, or adjusted diluted earnings per share of $1.95 in Q3 2024.

How much cash does BlueLinx (BXC) have as of Q3 2024?

BlueLinx had $526 million in cash and cash equivalents on hand as of September 28, 2024.

What is BlueLinx (BXC) share repurchase program status?

BlueLinx repurchased $15 million in shares during Q3 2024, with $61 million remaining in the authorization as of quarter-end.