BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale
distributor of building products, today reported financial results
for the three months and twelve months ended December 28, 2024.
FOURTH QUARTER 2024 HIGHLIGHTS
- Net sales of $711 million
- Gross profit of $113 million, gross margin of 15.9% and
specialty gross margin of 18.4%
- Net income of $5.3 million, or $0.62 diluted earnings per
share
- Adjusted net income of $5.2 million, or $0.61 adjusted diluted
earnings per share
- Adjusted EBITDA of $22 million, or 3.0% of net sales
- Operating cash flow of $19 million
- Completion of $15 million in share repurchases
FULL YEAR 2024 HIGHLIGHTS
- Net sales of $3.0 billion
- Gross profit of $489 million, gross margin of 16.6%, and
specialty gross margin of 19.4%
- Net income of $53 million, or $6.19 diluted earnings per
share
- Adjusted net income of $55 million, or $6.44 adjusted diluted
earnings per share
- Adjusted EBITDA of $131 million, or 4.4% of net sales
- Operating cash flow of $85 million and free cash flow of $45
million
- Available liquidity of $852 million, including $506 million
cash/cash equivalents on hand
- Completion of $45 million in share repurchases
“Our fourth quarter and full year 2024 were highlighted by
strong margin performance, clearly showing our ability to generate
solid results due to the strength of our customer service
proposition and the continued focus on our strategy,” said Shyam
Reddy, President, and CEO of BlueLinx. “Specialty products
continued its strong performance with gross margins of 18.4% and
solid volume growth during the quarter. Structural products also
performed well with gross margins of 10.8%, largely due to improved
lumber pricing during the quarter. With strong liquidity and
minimal net debt, we remain well-positioned to execute on our
long-term sales growth strategy and to return capital to
shareholders. During the fourth quarter, we returned $15 million to
shareholders, bringing the total to $45 million in share
repurchases for the year.”
FOURTH QUARTER 2024 FINANCIAL PERFORMANCE
In the fourth quarter of 2024, net sales were $711 million, a
decrease of $1.9 million, or 0.3% when compared to the fourth
quarter of 2023. Gross profit was $113 million, a decrease of $5.1
million, or 4.3%, year-over-year, and gross margin was 15.9%, down
70 basis points from the prior year period.
Net sales of specialty products, which includes products such as
engineered wood, siding, millwork, outdoor living, specialty lumber
and panels, and industrial products, decreased $3.0 million, or
0.6%, to $484 million. This decline was primarily due to price
deflation driven by external market conditions, partially offset by
volume gains. Gross profit from specialty product sales was $88.7
million, a decrease of $5.7 million, or 6.1%, compared to the
fourth quarter last year. Gross margin was 18.4% compared to 19.4%
in the prior year period.
Net sales of structural products, which includes products such
as lumber, plywood, oriented strand board, rebar, and remesh,
increased $1.1 million, or 0.5%, to $227 million in the fourth
quarter of fiscal 2024 and gross profit from sales of structural
products increased $0.6 million from $24.0 million in the prior
year period. The increases in structural sales and gross profit
were due primarily to improved pricing for framing lumber,
partially offset by slight volume decreases. Compared to 4Q 2023,
average composite pricing for lumber increased 12% while panel
prices decreased 6%. Gross margin on structural product sales was
10.8% in the fourth quarter, up slightly from 10.6% in the prior
year period.
Selling, general and administrative (“SG&A”) expenses were
$92.6 million in the fourth quarter, an increase of $8.1 million
from $84.5 million for the fourth quarter of 2023. The
year-over-year increase in the dollar amount of SG&A was due
primarily to increased payroll and payroll-related expenses,
partially driven by increased logistics expenses due to higher
volumes, and expenses associated with our digital
transformation.
Net income for the current quarter was $5.3 million, or $0.62
per diluted share, versus a net loss of $18.1 million, or $(2.08)
per diluted share, in the prior year period. The 2023 period
reflects a one-time charge of $30.4 million related to the
settlement of our defined benefit pension plan. Adjusted Net Income
for the fourth quarter was $5.2 million, or $0.61 per diluted
share.
Adjusted EBITDA was $21.5 million, or 3.0% of net sales,
compared to $36.5 million, or 5.1% of net sales in the prior
period.
Net cash generated from operating activities was $18.7 million
in the fourth quarter of 2024 compared to $75.9 million in the
prior year period. The decrease in cash generated from operating
activities was driven primarily by changes in working capital.
Additionally, net income in the fourth quarter 2023 included the
non-cash reclassification from accumulated other comprehensive loss
of $30.4 million, affecting the net income comparison between the
quarters. We allocated $20.3 million to cash capital investments
related to our distribution facilities, fleet, and technology
during the current quarter.
FULL YEAR 2024 FINANCIAL PERFORMANCE
For the fiscal year ended December 28, 2024, net sales were $3.0
billion, a decrease of $183.8 million, or 5.9% year-over-year.
Gross profit was $489.1 million, a decrease of $37.9 million, or
7.2% year-over-year, and gross margin was 16.6%, down 20 basis
points. The decreases in sales and gross profit reflect declines of
6.3% and 4.8% in specialty product net sales and structural product
net sales, respectively. Full year 2024 included a net benefit of
$12.7 million for import duty-related items from prior periods.
Excluding this benefit, gross margin would have been 16.1%. 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 specialty products decreased $138.3 million, or
6.3% to $2.0 billion in the fiscal year ended December 28, 2024.
The overall decrease in specialty products net sales was due to
price deflation, partially offset by volume increases. Gross profit
from specialty product sales was $397.6 million in the current
year, a decrease of $23.2 million, or 5.5%, year-over-year and
gross margin in the current year was 19.4% compared to 19.3% in the
prior year. The current year included the aforementioned net
benefit of $12.7 million for import duty-related items from prior
periods. Excluding this benefit, gross margin for specialty
products would have been 18.8% for the current year.
Net sales of structural products decreased $45.5 million, or
4.8%, to $906.6 million in the fiscal year ended December 28, 2024,
and gross profit from sales of structural products decreased $14.7
million to $91.5 million. The decreases in structural products net
sales and gross profit were due primarily to market-based price
deflation and lower volume for lumber, partially offset by volume
gains for panels. Compared to fiscal year 2023, average composite
pricing for lumber in the U.S. decreased 2.5% while panel prices
increased 1.2%. Gross margin on structural product sales was 10.1%
compared to 11.2% for the prior year.
SG&A expenses were $365.5 million during fiscal year 2024,
up $9.7 million, or 2.7%, compared to the prior year. In the
current year, higher technology expenses associated with our
digital transformation and legal expenses associated with
duty-related matters were partially offset by lower variable
compensation expense and lower share-based compensation
expense.
Net income was $53.1 million, or $6.19 per diluted share, versus
$48.5 million, or $5.39 per diluted share in the prior year. Fiscal
2023 reflects the aforementioned one-time charge of $30.4 million
related to the settlement of our legacy defined benefit pension
plan. Adjusted net income was $55.2 million and adjusted earnings
diluted per share was $6.44 in the current year, compared to $102.6
million or adjusted diluted earnings per share of $11.41 in the
prior year.
Adjusted EBITDA was $131.4 million, or 4.4% of net sales,
compared to $182.8 million, or 5.8% of net sales in 2023.
Net cash generated from operating activities was $85.2 million
for fiscal year 2024 compared to $306.3 million in fiscal year
2023. This decrease in cash provided by operating activities during
fiscal 2024 was primarily a result of changes in net cash provided
by working capital, particularly for inventory. Additionally, net
income in fiscal 2023 included the non-cash reclassification from
accumulated other comprehensive loss of $30.4 million, affecting
the net income comparison between the fiscal years. Free cash flow
was $45.1 million in fiscal 2024 compared to $278.8 million in the
prior year.
CAPITAL ALLOCATION AND FINANCIAL POSITION
During the full year 2024, we invested $40.1 million to improve
and upgrade our distribution facilities, technology infrastructure,
and our fleet, compared to $27.5 million in 2023. Since the
beginning of fiscal 2022, we used a total of $154 million to buy
back and retire approximately 1.8 million shares of our common
stock. Currently, we have $46.5 million remaining under our $100
million share repurchase authorization that was approved by our
Board of Directors in October 2023. We plan to continue to be
opportunistic in the market when repurchasing shares.
As of December 28, 2024, total debt outstanding was $593
million, including $300 million of senior secured notes that mature
in 2029 and $293 million of finance leases. Available liquidity was
$852 million which included an undrawn revolving credit facility
that had $346 million of availability plus cash and cash
equivalents of $506 million. Net Debt was $(156) million, which
consisted of total debt and finance lease obligations, less real
property finance lease obligations of $243 million, and less cash
and cash equivalents of $506 million, resulting in a net leverage
ratio of (1.2x) using a trailing twelve-month Adjusted EBITDA of
$131 million.
FIRST QUARTER 2025 OUTLOOK
Through the first seven weeks of the first quarter of fiscal
2025, specialty product gross margin was in the range of 18% to
19%, and structural product gross margin was in the range of 8% to
9%. Average daily sales volumes were down approximately 12% versus
the fourth quarter of 2024 due primarily to severe weather
conditions which impacted a significant portion of our distribution
footprint in January.
CONFERENCE CALL INFORMATION
BlueLinx will host a conference call on February 19, 2025, at
10:00 a.m. Eastern Time, accompanied by a supporting slide
presentation.
A webcast of the conference call and accompanying presentation
materials will be available in the Investor Relations section of
the BlueLinx website at https://investors.bluelinxco.com, and a replay of
the webcast will be available at the same site shortly after the
webcast is complete.
To participate in the live teleconference:
Domestic Live:
1-888-660-6392
Passcode:
9140086
To listen to a replay of the teleconference, which will be
available through March 5, 2025:
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 “First
Quarter 2025 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: adverse housing market
conditions; disintermediation risk; consolidation among
competitors, suppliers, and customers; our dependence on
international suppliers and manufacturers for certain products
which exposes us to risks of new or increased tariffs and other
risks that could affect our financial condition; pricing and
product cost variability; volumes of product sold; competition; the
cyclical nature of the industry in which we operate; loss of
products or key suppliers and manufacturers; information technology
security risks and business interruption risks; effective inventory
management relative to our sales volume or the prices of the
products we produce; the ability to attract, train, and retain
highly qualified associates and other key personnel while
controlling related labor costs; potential acquisitions and the
integration and completion of such acquisitions; business
disruptions; exposure to product liability and other claims and
legal proceedings related to our business and the products we
distribute; 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)
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(In thousands, except per share
amounts)
Net sales
$
710,637
$
712,529
$
2,952,532
$
3,136,381
Cost of products sold
597,292
594,100
2,463,393
2,609,364
Gross profit
113,345
118,429
489,139
527,017
Gross margin percentage
15.9
%
16.6
%
16.6
%
16.8
%
Operating expenses (income):
Selling, general, and administrative
92,619
84,541
365,532
355,819
Depreciation and amortization
9,405
8,285
38,488
32,043
Amortization of deferred gains on real
estate
(982
)
(982
)
(3,934
)
(3,934
)
Gain from sale of properties, net
—
—
(272
)
—
Other operating expenses, net
273
(600
)
1,755
4,640
Total operating expenses
101,315
91,244
401,569
388,568
Operating income
12,030
27,185
87,570
138,449
Non-operating expenses:
Interest expense, net
5,320
4,171
19,364
23,746
Settlement of defined benefit pension
plan
(255
)
30,440
(2,481
)
30,440
Other expense, net
—
595
—
2,377
Income before provision for income
taxes
6,965
(8,021
)
70,687
81,886
Provision for income taxes
1,693
10,103
17,571
33,350
Net income (loss)
$
5,272
$
(18,124
)
$
53,116
$
48,536
Basic earnings (loss) per share
$
0.63
$
(2.08
)
$
6.22
$
5.40
Diluted earnings (loss) per share
$
0.62
$
(2.08
)
$
6.19
$
5.39
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
December 28, 2024
December 30, 2023
(In thousands, except share
data)
ASSETS
Current assets:
Cash and cash equivalents
$
505,622
$
521,743
Accounts receivable, less allowances of
$4,344 and $3,398, respectively
225,837
228,410
Inventories, net
355,909
343,638
Other current assets
46,620
26,608
Total current assets
1,133,988
1,120,399
Property and equipment, at cost
443,628
396,321
Accumulated depreciation
(194,072
)
(170,334
)
Property and equipment, net
249,556
225,987
Operating lease right-of-use assets
47,221
37,227
Goodwill
55,372
55,372
Intangible assets, net
26,881
30,792
Deferred income tax asset, net
50,578
53,256
Other non-current assets
14,121
14,568
Total assets
$
1,577,717
$
1,537,601
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable
$
170,202
$
157,931
Accrued compensation
16,706
14,273
Finance lease liabilities - current
12,541
11,178
Operating lease liabilities - current
8,478
6,284
Real estate deferred gains - current
3,935
3,935
Other current liabilities
21,862
24,961
Total current liabilities
233,724
218,562
Non-current liabilities:
Long-term debt
295,061
293,743
Finance lease liabilities - less current
portion
280,002
274,248
Operating lease liabilities - less current
portion
40,114
32,519
Real estate deferred gains - less current
portion
63,296
66,599
Other non-current liabilities
19,079
17,644
Total liabilities
931,276
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,
8,294,798 and 8,650,046 outstanding,
respectively
83
87
Additional paid-in capital
124,103
165,060
Retained earnings
522,255
469,139
Total stockholders’ equity
646,441
634,286
Total liabilities and stockholders’
equity
$
1,577,717
$
1,537,601
BLUELINX HOLDINGS INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(In thousands)
Cash flows from operating
activities:
Net income (loss)
$
5,272
$
(18,124
)
$
53,116
$
48,536
Adjustments to reconcile net income (loss)
to cash provided by operations:
Depreciation and amortization
9,405
8,285
38,488
32,043
Amortization of debt discount and issuance
costs
328
330
1,318
1,319
Settlement of frozen defined benefit
pension plan
—
30,440
—
30,440
Gains from sales of property
—
—
(272
)
—
Amortization of deferred gains from real
estate
(982
)
(982
)
(3,934
)
(3,934
)
Share-based compensation
808
2,580
7,749
12,055
Provision for deferred income taxes
728
6,639
2,678
7,756
Other income statement items
—
(909
)
—
(909
)
Changes in operating assets and
liabilities:
Accounts receivable
52,212
69,158
2,573
23,145
Inventories, net
(15,368
)
20,724
(12,271
)
140,875
Accounts payable
(14,930
)
(43,818
)
13,002
5,973
Employer contributions due to the
single-employer defined benefit pension plan
—
(6,900
)
—
(6,900
)
Other current assets
(10,120
)
12,892
(20,012
)
15,513
Other assets and liabilities
(8,609
)
(4,454
)
2,743
373
Net cash provided by operating
activities
18,744
75,861
85,178
306,285
Cash flows from investing
activities:
Proceeds from sales of assets and
properties
60
166
899
357
Property and equipment investments
(20,279
)
(8,582
)
(40,109
)
(27,520
)
Other investing activities
—
—
—
300
Net cash used in investing activities
(20,219
)
(8,416
)
(39,210
)
(26,863
)
Cash flows from financing
activities:
Common stock repurchases
(15,315
)
(12,814
)
(45,297
)
(42,135
)
Repurchase of shares to satisfy employee
tax withholdings
(108
)
(122
)
(3,365
)
(5,279
)
Principal payments on finance lease
liabilities
(3,761
)
(2,549
)
(13,427
)
(9,208
)
Net cash used in financing activities
(19,184
)
(15,485
)
(62,089
)
(56,622
)
Net change in cash and cash
equivalents
(20,659
)
51,960
(16,121
)
222,800
Cash and cash equivalents at beginning of
period
526,281
469,783
521,743
298,943
Cash and cash equivalents at end of
period
$
505,622
$
521,743
$
505,622
$
521,743
The following schedule presents our revenues disaggregated by
specialty and structural product category:
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(Dollar amounts in thousands)
Net sales by product category
Specialty products
$
483,610
$
486,561
$
2,045,910
$
2,184,240
Structural products
227,027
225,968
906,622
952,141
Total net sales
$
710,637
$
712,529
$
2,952,532
$
3,136,381
Gross profit by product category
Specialty products
$
88,747
$
94,466
$
397,625
$
420,794
Structural products
24,598
23,963
91,514
106,223
Total gross profit
$
113,345
$
118,429
$
489,139
$
527,017
Gross margin % by product category
Specialty products
18.4
%
19.4
%
19.4
%
19.3
%
Structural products
10.8
%
10.6
%
10.1
%
11.2
%
Company gross margin %
15.9
%
16.6
%
16.6
%
16.8
%
BLUELINX HOLDINGS INC.
RECONCILIATION OF NON-GAAP
MEASUREMENTS
(Unaudited)
The following table reconciles Net income
(loss) to Adjusted EBITDA (non-GAAP) for the periods indicated:
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(In thousands)
Net income (loss)
$
5,272
$
(18,124
)
$
53,116
$
48,536
Adjustments:
Depreciation and amortization
9,405
8,285
38,488
32,043
Interest expense, net
5,320
4,171
19,364
23,746
Provision for income taxes
1,693
10,103
17,571
33,350
Share-based compensation expense
808
2,580
7,749
12,055
Amortization of deferred gains on real
estate
(982
)
(982
)
(3,934
)
(3,934
)
Gains from sales of property(1)
—
—
(272
)
—
Pension settlement and withdrawal
costs(1)(2)
(255
)
31,034
(2,481
)
32,817
Acquisition-related costs(1)(3)
—
186
—
278
Restructuring and other(1)(4)
274
(784
)
1,755
3,913
Adjusted EBITDA
$
21,535
$
36,469
$
131,356
$
182,804
(1) Reflects non-recurring beneficial
items of $30.4 million in the prior quarterly period, $1.0 million
of non-beneficial items in the current fiscal year period, and
$37.0 million of net beneficial items in the prior fiscal year
period.
(2) Reflects expenses and related
adjustments related to our previously disclosed settlement of the
BlueLinx Corporation Hourly Retirement Defined Benefit Plan.
(3) Reflects primarily legal,
professional, technology and other integration costs.
(4) Reflects net losses related to
Hurricane Helene in 3Q 2024, our restructuring efforts, such as
severance, net of other one-time non-operating items in 2024 and
2023.
The following table reconciles Net income (loss) and Diluted
earnings (loss) per share to Adjusted net income (non-GAAP) and
Adjusted diluted earnings per share (non-GAAP):
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(In thousands, except per share
data)
Net income (loss)
$
5,272
$
(18,124
)
$
53,116
$
48,536
Adjustments:
Share-based compensation expense
808
2,580
7,749
12,055
Amortization of deferred gains on real
estate
(982
)
(982
)
(3,934
)
(3,934
)
Gain from sales of property
—
—
(272
)
—
Pension settlement and withdrawal
costs(1)
(255
)
31,034
(2,481
)
32,817
Acquisition-related costs
—
186
—
278
Restructuring and other
274
(784
)
1,755
3,913
Tax impacts of reconciling items above
(1)
38
11,891
(701
)
8,962
Adjusted net income (non-GAAP)
$
5,155
$
25,801
$
55,232
$
102,627
Basic earnings (loss) per share
$
0.63
$
(2.08
)
$
6.22
$
5.40
Diluted earnings (loss) per share
$
0.62
(2.08
)
$
6.19
$
5.39
Weighted average shares outstanding -
Basic
8,356
8,704
8,531
8,987
Weighted average shares outstanding -
Diluted
8,431
8,757
8,572
8,994
Adjusted basic EPS (non-GAAP)
$
0.61
$
2.96
$
6.47
$
11.41
Adjusted diluted EPS (non-GAAP)
$
0.61
$
2.94
$
6.44
$
11.41
(1) Tax impact calculated based on the
effective tax rate for the respective fiscal quarterly periods and
fiscal year periods presented. The fiscal quarter and fiscal year
ended December 30, 2023 exclude the non-cash tax effects for the
one-time charge for settlement of the frozen defined benefit
pension plan.
In the following table, our Adjusted EBITDA margin (non-GAAP) is
calculated and compared to Net income (loss) as a percentage of Net
sales:
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(Dollar amounts in thousands)
Net sales
$
710,637
$
712,529
$
2,952,532
$
3,136,381
Net income (loss)
5,272
(18,124
)
53,116
48,536
Net income (loss) as a percentage of Net
sales
0.7
%
(2.5
)%
1.8
%
1.5
%
Net sales
$
710,637
$
712,529
$
2,952,532
$
3,136,381
Adjusted EBITDA (non-GAAP)(1)
21,535
36,469
131,356
182,804
Adjusted EBITDA margin (non-GAAP)
3.0
%
5.1
%
4.4
%
5.8
%
(1)
See the table that reconciles Net income
to Adjusted EBITDA (non-GAAP)
The following table shows the calculations of our “Net Debt,”
“Net Leverage Ratio,” and our “Net Leverage Ratio Excluding Real
Property Finance Lease Liabilities,” as those non-GAAP measures are
used and presented within the terms of our revolving credit
agreement.
As of
($ amounts in thousands)
December 28, 2024
December 30, 2023
Long term debt (1)
$
300,000
$
300,000
Finance lease liabilities for equipment
and vehicles
49,785
42,252
Finance lease liabilities for real
property
242,758
243,174
Total debt and finance leases
592,543
585,426
Less: available cash and cash
equivalents
505,622
521,743
Net Debt
$
86,921
$
63,683
Net Debt, excluding finance lease
liabilities for real property
$
(155,837
)
$
(179,491
)
Twelve-month trailing adjusted EBITDA (see
above reconciliations)
$
131,356
$
182,804
Net Leverage Ratio
0.7x
0.3x
Net Leverage Ratio Excluding Real
Property Finance Lease Liabilities
(1.2x
)
(1.0x
)
(1) As of December 28, 2024 and December
30, 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 consolidated
balance sheet, and as of December 28, 2024 were $295.1 million
which is net of unamortized debt discount of $2.5 million and
unamortized debt issuance costs of $2.4 million. As of December 30,
2023, these notes were reported on our consolidated balance sheet
at $293.7 million, which is net of unamortized discount of $3.0
million and unamortized debt issuance costs of $3.2 million. Our
senior secured notes are presented in this table at their face
value for the purposes of calculating our net leverage ratio.
The following schedule reconciles Net cash provided by operating
activities to Free cash flow (non-GAAP):
Fiscal Quarter Ended
Fiscal Year Ended
December 28, 2024
December 30, 2023
December 28, 2024
December 30, 2023
(In thousands)
Net cash provided by operating
activities
$
18,744
$
75,861
$
85,178
$
306,285
Less: property and equipment
investments
(20,279
)
(8,582
)
(40,109
)
(27,520
)
Free cash flow - non-GAAP
$
(1,535
)
$
67,279
$
45,069
$
278,765
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250218783022/en/
Tom Morabito Investor Relations Officer (470) 394-0099
investor@bluelinxco.com
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