BlueLinx Holdings Inc. (NYSE:BXC), a leading U.S.
wholesale distributor of building products, today reported
financial results for the three months ended March 30, 2024.
FIRST QUARTER 2024 HIGHLIGHTS
- Net sales of $726 million
- Gross profit of $128 million, gross margin of 17.6% and
specialty products margin of 20.7%, which includes a net benefit of
approximately $7 million related to import duties from prior
periods
- Net income of $17 million, or $2.00 diluted earnings per
share
- Adjusted net income of $19 million, or $2.14 adjusted diluted
earnings per share (non-GAAP)
- Adjusted EBITDA of $39 million (non-GAAP), or 5.3% of net
sales, which includes a net benefit of approximately $7 million
related to import duties from prior periods
- Operating cash used of ($31) million and free cash flow of
($37) million (non-GAAP)
- Available liquidity of $828 million, including $481 million of
cash and cash equivalents
- Net debt of ($133) million and net leverage ratio of (0.8x),
excluding real property finance lease liabilities
“We are off to a solid start to 2024, despite ongoing
deflationary pressures associated with our specialty business and
January weather conditions that adversely impacted volumes. We are
pleased with the results for the quarter as volumes recovered and
we maintained strong margins in specialty and structural products,”
said Shyam Reddy, President, and CEO of BlueLinx. “I am excited
about the team we have in place to execute our sales growth
strategy through uncertain market conditions. Our strong liquidity
gives us the flexibility to pursue our strategic initiatives and
opportunistically return capital to shareholders.”
“Our Adjusted EBITDA of $39 million came in better than expected
due to the higher margins in both specialty and structural
products, as well as the net positive impact of import duty items
of approximately $7 million related to products sold during prior
periods. We were pleased with our results and our financial
position remains strong with a net leverage ratio of only (0.8x)
and available liquidity of $828 million,” said Andy Wamser, Chief
Financial Officer of BlueLinx.
FIRST QUARTER 2024 FINANCIAL PERFORMANCE
In the first quarter of 2024, net sales were $726 million, a
decrease of $72 million, or 9.0% when compared to the first quarter
of 2023. Gross profit was $128 million, a decrease of $6 million,
or 4.4%, year-over-year, and gross margin was 17.6%, up 90 basis
points from the same period last year.
Net sales of specialty products, which includes products such as
engineered wood, siding, millwork, outdoor living, industrial
products and specialty lumber and panels, decreased $64 million, or
11%, to $504 million. This decline was due to deflationary impacts
across several specialty categories. Gross profit from specialty
product sales was $104 million, a decrease of $3 million, or 2%,
compared to the first quarter of last year. Gross margin was 20.7%
compared to 18.8% in the prior year period, which includes the net
benefit of import duty-related items from prior periods during the
current quarter. Not including this net benefit, specialty
products’ gross margin was 19.4% in the current quarter. 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 $8 million, or 3%, to $222 million in the first quarter
and gross profit from sales of structural products decreased $3
million from $27 million in the prior year period. The decrease in
structural sales and gross profit was due primarily to lower
framing lumber volumes when compared to the elevated levels in the
prior year period. Gross margin on structural product sales was
10.6% in the first quarter, down from 11.7% in the prior year
period.
Selling, general and administrative (“SG&A”) expenses were
$91 million in the first quarter, comparable with the prior year
period.
Net income was $17 million, or $2.00 per diluted share, versus
$18 million, or $1.94 per diluted share, in the prior year period.
Adjusted net income was $19 million, or $2.14 per diluted share
compared to $23 million, or $2.53 per diluted share in the first
quarter of last year.
Adjusted EBITDA was $39 million, or 5.3% of net sales, for the
first quarter of 2024, compared to $47 million, or 5.9% of net
sales in the first quarter of 2023, which includes the net benefit
of duty-related items. Not including these duty-related items,
Adjusted EBITDA was $32 million, or 4.4% of net sales in the first
quarter.
Net cash used in operating activities was $31 million in the
first quarter of 2024 compared to $89 million of net cash provided
by operating activities in the prior year period, and free cash
flow was ($37) million. The decrease in cash generated during the
first quarter was driven by seasonal changes in working capital.
The net source of cash generated in the prior year period was
driven by significant inventory reduction efforts.
CAPITAL ALLOCATION AND FINANCIAL POSITION
During the first quarter of 2024, we invested $5 million of cash
in capital investments to improve our distribution facilities and
upgrade our fleet, compared to $9 million of cash investments in
the first quarter of 2023. During the first quarter of 2024, we
also entered into finance leases for $8 million of fleet upgrades.
We have $91.4 million of share repurchase authorization remaining
under our current repurchase program. Under our remaining share
repurchase authorization, we may repurchase shares of our common
stock at any time or from time to time, without prior notice,
subject to prevailing market conditions and other
considerations.
As of March 30, 2024, total debt was $348 million, consisting of
$300 million of senior secured notes that mature in 2029 and $48
million of finance leases, excluding real property finance lease
liabilities. Available liquidity was $828 million which included an
undrawn revolving credit facility that had $346 million of
availability plus cash and cash equivalents of $481 million. Net
debt was ($133) million, resulting in a net leverage ratio of
(0.8x) on trailing twelve-month Adjusted EBITDA of $175
million.
SECOND QUARTER 2024 UPDATE
Through the first four weeks of the second 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 10% to 11%.
Average daily sales volumes were slightly improved versus the first
quarter of 2024.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on May 1, 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 May 15, 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 confidence in the Company’s long-term growth
strategy; our ability to capitalize on supplier-led price increases
and our value-added services; our areas of focus and management
initiatives; the demand outlook for construction materials and
expectations regarding new home construction, repair and remodel
activity and continued investment in existing and new homes; our
positioning for long-term value creation; our efforts and ability
to generate profitable growth; our ability to increase net sales in
specialty product categories; our ability to generate profits and
cash from sales of specialty products; our multi-year capital
allocation plans; our ability to manage volatility in wood-based
commodities; our improvement in execution and productivity; our
efforts and ability to maintain a disciplined capital structure and
capital allocation strategy; our ability to maintain a strong
balance sheet; our ability to focus on operating improvement
initiatives and commercial excellence; and whether or not the
Company will continue any share repurchases.
Forward-looking statements in this press release are based on
estimates and assumptions made by our management that, although
believed by us to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties that may
cause our business, strategy, or actual results to differ
materially from the forward-looking statements. These risks and
uncertainties include those discussed in greater detail in our
filings with the Securities and Exchange Commission. We operate in
a changing environment in which new risks can emerge from time to
time. It is not possible for management to predict all of these
risks, nor can it assess the extent to which any factor, or a
combination of factors, may cause our business, strategy, or actual
results to differ materially from those contained in
forward-looking statements. Factors that may cause these
differences include, among other things: 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 or in the financial tables
accompanying this news release. The Company cautions that non-GAAP
measures should be considered in addition to, but not as a
substitute for, the Company’s reported GAAP results. The Company
further cautions that its non-GAAP measures, as used herein, are
not necessarily comparable to other similarly titled measures of
other companies due to differences in methods of calculation.
Adjusted EBITDA and Adjusted EBITDA Margin. BlueLinx defines
Adjusted EBITDA as an amount equal to net income (loss) plus
interest expense and all interest expense related items, income
taxes, depreciation and amortization, and further adjusted for
certain non-cash items and other special items, including
compensation expense from share based compensation, one-time
charges associated with the legal, consulting, and professional
fees related to our merger and acquisition activities, gains or
losses on sales of properties, amortization of deferred gains on
real estate, and expense associated with our restructuring
activities, such as severance, in addition to other significant
and/or one-time, nonrecurring, non-operating items.
The Company presents Adjusted EBITDA because it is a primary
measure used by management to evaluate operating performance.
Management believes this metric helps to enhance investors’ overall
understanding of the financial performance and cash flows of the
business. Management also believes Adjusted EBITDA is helpful in
highlighting operating trends. Adjusted EBITDA is frequently used
by securities analysts, investors, and other interested parties in
their evaluation of companies, many of which present an Adjusted
EBITDA measure when reporting their results.
We determine our Adjusted EBITDA Margin, which we sometimes
refer to as our Adjusted EBITDA as a percentage of net sales, by
dividing our Adjusted EBITDA for the applicable period by our net
sales for the applicable period. We believe that this ratio is
useful to investors because it more clearly defines the quality of
earnings and operational efficiency of translating sales to
profitability.
Our Adjusted EBITDA and Adjusted EBITDA Margin are not
presentations made in accordance with GAAP and are not intended to
present superior measures of our financial condition from those
measures determined under GAAP. Adjusted EBITDA and Adjusted EBITDA
Margin, as used herein, are not necessarily comparable to other
similarly titled captions of other companies due to differences in
methods of calculation. These non-GAAP measures are reconciled in
the “Reconciliation of Non-GAAP Measurements” table later in this
release.
Adjusted Net Income and Adjusted Earnings Per Share. BlueLinx
defines Adjusted Net Income as Net Income adjusted for certain
non-cash items and other special items, including compensation
expense from share based compensation, one-time charges associated
with the legal, consulting, and professional fees related to our
merger and acquisition activities, gains or losses on sales of
properties, amortization of deferred gains on real estate, and
expense associated with our restructuring activities, such as
severance, in addition to other significant and/or one-time,
nonrecurring, non-operating items, further adjusted for the tax
impacts of such reconciling items. BlueLinx defines Adjusted
Earnings Per Share (basic and/or diluted) as the Adjusted Net
Income for the period divided by the weighted average outstanding
shares (basic and/or diluted) for the periods presented. We believe
that Adjusted Net Income and Adjusted Earnings Per Share (basic
and/or diluted) are useful to investors to enhance investors’
overall understanding of the financial performance of the business.
Management also believes Adjusted Net Income and Adjusted Earnings
Per Share (basic and/or diluted) are helpful in highlighting
operating trends.
Our Adjusted Net Income and Adjusted Earnings Per Share (basic
and/or diluted) are not presentations made in accordance with GAAP
and are not intended to present superior measures of our financial
condition from those measures determined under GAAP. Adjusted Net
Income and Adjusted Earnings Per Share (basic or diluted), as used
herein, are not necessarily comparable to other similarly titled
captions of other companies due to differences in methods of
calculation. These non-GAAP measures are reconciled in the
“Reconciliation of Non-GAAP Measurements” table later in this
release.
Free Cash Flow. BlueLinx defines free cash flow as net cash
provided by operating activities less total capital expenditures.
Free cash flow is a measure used by management to assess our
financial performance, and we believe it is useful for investors
because it relates the operating cash flow of the Company to the
capital that is spent to continue and improve business operations.
In particular, free cash flow indicates the amount of cash
generated after capital expenditures that can be used for, among
other things, investment in our business, strengthening our balance
sheet, and repayment of our debt obligations. Free cash flow does
not represent the residual cash flow available for discretionary
expenditures since there may be other nondiscretionary expenditures
that are not deducted from the measure. Free cash flow is not a
presentation made in accordance with GAAP and is not intended to
present a superior measure of financial condition from those
determined under GAAP. Free cash flow, as used herein, is not
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation. This
non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP
Measurements” table later in this release.
Net Debt, Net Debt Excluding Real Property Finance Lease
Liabilities, Overall Net Leverage Ratio, and Net Leverage Ratio
Excluding Real Property Finance Lease Liabilities. BlueLinx
calculates Net Debt as its total short- and long-term debt,
including outstanding balances under our term loan and revolving
credit facility and the total amount of its obligations under
finance leases, less cash and cash equivalents. Net Debt Excluding
Real Property Finance Lease Liabilities is calculated in the same
manner as Net Debt, except the total amount of obligations under
real estate finance leases are excluded. Although our credit
agreements do not contain leverage covenants, a net leverage ratio
excluding finance lease obligations 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 11.
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
March 30, 2024
April 1, 2023
($ amounts in thousands,
except per share amounts)
Net sales
$
726,244
$
797,904
Cost of products sold
598,563
664,365
Gross profit
127,681
133,539
Gross margin
17.6
%
16.7
%
Operating expenses (income):
Selling, general, and administrative
91,250
91,174
Depreciation and amortization
9,433
7,718
Amortization of deferred gains on real
estate
(984
)
(984
)
Other operating expenses
314
3,116
Total operating expenses
100,013
101,024
Operating income
27,668
32,515
Non-operating expenses:
Interest expense, net
4,624
7,687
Other expense, net
—
594
Income before provision for income
taxes
23,044
24,234
Provision for income taxes
5,552
6,422
Net income
$
17,492
$
17,812
Basic earnings per share
$
2.02
$
1.96
Diluted earnings per share
$
2.00
$
1.94
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
March 30, 2024
December 30, 2023
(In thousands, except share
data)
ASSETS
Current assets:
Cash and cash equivalents
$
481,309
$
521,743
Accounts receivable, less allowances of
$3,293 and $3,398, respectively
288,244
228,410
Inventories, net
370,942
343,638
Other current assets
32,165
26,608
Total current assets
1,172,660
1,120,399
Property and equipment, at cost
406,918
396,321
Accumulated depreciation
(175,757
)
(170,334
)
Property and equipment, net
231,161
225,987
Operating lease right-of-use assets
34,869
37,227
Goodwill
55,372
55,372
Intangible assets, net
29,768
30,792
Deferred income tax asset, net
53,629
53,256
Other non-current assets
14,186
14,568
Total assets
$
1,591,645
$
1,537,601
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
171,715
$
157,931
Accrued compensation
13,642
14,273
Finance lease liabilities - current
12,157
11,178
Operating lease liabilities - current
5,824
6,284
Real estate deferred gains - current
3,935
3,935
Other current liabilities
41,873
24,961
Total current liabilities
249,146
218,562
Long-term debt
294,073
293,743
Finance lease liabilities - noncurrent
279,910
274,248
Operating lease liabilities -
noncurrent
30,248
32,519
Real estate deferred gains -
noncurrent
65,648
66,599
Other non-current liabilities
19,399
17,644
Total liabilities
938,424
903,315
Commitments and contingencies
Stockholders' Equity:
Preferred Stock, $0.01 par value,
30,000,000 shares authorized, none issued
—
—
Common Stock, $0.01 par value, 20,000,000
shares authorized, 8,661,738 and 8,650,046 outstanding,
respectively
87
87
Additional paid-in capital
166,503
165,060
Retained earnings
486,631
469,139
Total stockholders’ equity
653,221
634,286
Total liabilities and stockholders’
equity
$
1,591,645
$
1,537,601
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 30, 2024
April 1, 2023
(In thousands)
Cash flows from operating
activities:
Net income
$
17,492
$
17,812
Adjustments to reconcile net income to
cash (used in) provided by operations:
Depreciation and amortization
9,433
7,718
Amortization of debt discount and issuance
costs
330
329
Provision for deferred income taxes
(373
)
213
Amortization of deferred gains from real
estate
(984
)
(984
)
Share-based compensation
2,350
4,569
Changes in operating assets and
liabilities:
Accounts receivable
(59,834
)
(47,333
)
Inventories
(27,304
)
74,989
Accounts payable
13,784
25,420
Other current assets
(5,557
)
5,953
Other assets and liabilities
19,528
279
Net cash (used in) provided by operating
activities
(31,135
)
88,965
Cash flows from investing
activities:
Proceeds from sale of assets
127
37
Property and equipment investments
(5,447
)
(9,008
)
Net cash used in investing activities
(5,320
)
(8,971
)
Cash flows from financing
activities:
Repurchase of shares to satisfy employee
tax withholdings
(907
)
(570
)
Principal payments on finance lease
liabilities
(3,072
)
(2,133
)
Net cash used in financing activities
(3,979
)
(2,703
)
Net change in cash and cash
equivalents
(40,434
)
77,291
Cash and cash equivalents at beginning of
period
521,743
298,943
Cash and cash equivalents at end of
period
$
481,309
$
376,234
BLUELINX HOLDINGS INC.
SUPPLEMENTAL FINANCIAL
INFORMATION
(Unaudited)
The following schedule presents our
revenues disaggregated by specialty and structural product
category:
Three Months Ended
March 30, 2024
April 1, 2023
($ amounts in
thousands)
Net sales by product category:
Specialty products
$
503,834
$
567,838
Structural products
222,410
230,066
Total net sales
$
726,244
$
797,904
Gross profit by product category:
Specialty products
$
104,049
$
106,627
Structural products
23,632
26,912
Total gross profit
$
127,681
$
133,539
Gross margin % by product category:
Specialty products
20.7
%
18.8
%
Structural products
10.6
%
11.7
%
Consolidated gross margin %
17.6
%
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
Trailing Twelve Months
Ended
March 30, 2024
April 1, 2023
March 30, 2024
April 1, 2023
(In thousands)
Net income
$
17,492
$
17,812
$
47,358
$
180,579
Adjustments:
Depreciation and amortization
9,433
7,718
33,758
28,585
Interest expense, net
4,624
7,687
21,083
38,666
Provision for income taxes
5,552
6,422
32,937
57,685
Share-based compensation expense
2,350
4,569
9,836
12,024
Amortization of deferred gains on real
estate
(984
)
(984
)
(3,934
)
(3,934
)
Gain from sales of property(1)
—
—
—
(144
)
Pension settlement and related
expenses(1)(2)
—
594
32,223
594
Acquisition-related costs(1)(3)
—
100
178
1,355
Restructuring and other(1)(4)
314
3,016
1,212
6,982
Adjusted EBITDA - non-GAAP
$
38,781
$
46,934
$
174,651
$
322,392
(1)
Reflects non-recurring items of
approximately $0.3 million in the current quarter and approximately
$3.7 million in the prior year period. For the trailing twelve
months ended, reflects approximately $33.6 million of non-recurring
items in the current period and $8.8 million of non-recurring items
in the prior 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 costs related to our
restructuring activities, such as severance, and other one-time
non-operating items.
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
March 30, 2024
April 1, 2023
(In thousands, except per
share data)
Net income
$
17,492
$
17,812
Adjustments:
Share-based compensation expense
2,350
4,569
Amortization of deferred gains on real
estate
(984
)
(984
)
Pension settlement and related
expenses(1)
—
594
Acquisition-related costs(2)
—
100
Restructuring and other(3)
314
3,016
Tax impacts of reconciling items above
(4)
(405
)
(1,933
)
Adjusted net income - non-GAAP
$
18,767
$
23,174
Basic EPS
$
2.02
$
1.96
Diluted EPS
$
2.00
$
1.94
Weighted average shares outstanding -
Basic
8,653
9,059
Weighted average shares outstanding -
Diluted
8,741
9,157
Adjusted Basic EPS - non-GAAP
$
2.16
$
2.55
Adjusted Diluted EPS - non-GAAP
$
2.14
$
2.53
(1)
Reflects expenses related to our
previously disclosed settlement of the BlueLinx Corporation Hourly
Retirement Plan in 4Q 2023.
(2)
Reflects primarily legal, professional,
technology and other integration costs.
(3)
Reflects costs related to our
restructuring activities, such as severance, and other one-time
non-operating items.
(4)
Tax impact calculated based on the
effective tax rate for the respective three-month periods
presented.
The following schedule presents our
Adjusted EBITDA margin (non-GAAP) as a percentage of net sales:
Three Months Ended
March 30, 2024
April 1, 2023
($ amounts in
thousands)
Net sales
$
726,244
$
797,904
Adjusted EBITDA - non-GAAP
38,781
46,934
Adjusted EBITDA margin - non-GAAP
5.3
%
5.9
%
The following schedule presents Net Debt
and the Net Leverage Ratio for the trailing twelve months:
Three Months Ended
March 30, 2024
April 1, 2023
($ amounts in
thousands)
Long term debt(1)
$
300,000
$
300,000
Finance lease liabilities for equipment
and vehicles
48,445
27,162
Finance lease liabilities for real
property
243,622
243,602
Total debt and finance leases
592,067
570,764
Less: available cash and cash
equivalents
481,309
376,234
Net Debt (total debt and all finance lease
liabilities, excluding cash)
$
110,758
$
194,530
Net Debt, excluding finance lease
liabilities for real property
$
(132,864
)
$
(49,072
)
Twelve-Month Trailing Adjusted EBITDA -
non-GAAP, see above reconciliation
$
174,651
$
322,392
Net Leverage Ratio
0.6
x
0.6
x
Net Leverage Ratio Excluding Real
Property Finance Lease Liabilities(2)
(0.8
x)
(0.2
x)
(1)
For the three months ended March 30, 2024,
and April 1, 2023, our long-term debt is comprised of $300.0
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 $294.1 million and $292.8
million as of March 30, 2024 and April 1, 2023, respectively. This
presentation is net of their unamortized discount of $2.9 million
and $3.4 million and the combined carrying value of our unamortized
debt issuance costs of $3.0 million and $3.9 million as of March
30, 2024, and April 1, 2023, respectively. Our senior secured notes
are presented in this table at their face value for the purposes of
calculating our net leverage ratios.
(2)
Net leverage ratio excluding finance lease
obligations for real property is included within the terms of our
revolving credit agreement.
The following schedule presents free cash
flow:
Three Months Ended
March 30, 2024
April 1, 2023
(In thousands)
Net cash (used in) provided by operating
activities
$
(31,135
)
$
88,965
Less: Property and equipment
investments
(5,447
)
(9,008
)
Free cash flow - non-GAAP
$
(36,582
)
$
79,957
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240430867938/en/
Tom Morabito Investor Relations Officer (470) 394-0099
investor@bluelinxco.com
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