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 31, 2022.
FOURTH QUARTER 2022
HIGHLIGHTS(all comparisons are versus the prior year
period unless otherwise noted)
- Net sales of $848 million, a decrease of $125 million
- Gross profit of $151 million, gross margin of 17.8% and
specialty margin of 21.1%
- Net income of $32 million, or $3.50 diluted earnings per
share
- Adjusted net income of $36 million, or $3.97 adjusted diluted
earnings per share
- Adjusted EBITDA of $63 million, 7.4% of net sales
- Operating cash of $154 million and free cash flow of $137
million
- Available liquidity increased to $645 million, including $299
million cash on hand
- Acquired Vandermeer Forest Products on October 3, 2022, for $67
million
FULL YEAR 2022 HIGHLIGHTS(all
comparisons are versus the prior year period unless otherwise
noted)
- Net sales of $4.5 billion, an increase of 4%
- Gross profit increased 7% to $833 million and gross margin
increased 50 basis points to 18.7%
- Net income of $296 million, or $31.51 diluted earnings per
share
- Adjusted net income of $306 million, or $32.55 adjusted diluted
earnings per share
- Adjusted EBITDA increased 3% to an all-time high of $478
million, or 10.7% of net sales
- Record cash flow including $400 million of operating cash flow
and $364 million of free cash flow
“Our fourth quarter and full year 2022 were highlighted by
strong margin performance and record operating cash flow,
demonstrating our ability to generate solid results despite more
challenging macro conditions,” stated Dwight Gibson, President, and
CEO of BlueLinx. “We continue to strengthen our financial position
through robust cash generation, increasing our available liquidity.
Throughout 2022, we allocated approximately $170 million of capital
towards the acquisition of Vandermeer, capital expenditures that
improved the effectiveness of our facilities and our fleet, and
share repurchases.”
“Increasing interest rates have significantly slowed new
residential construction and to a lesser extent, repair and remodel
activity,” continued Gibson. “We saw a meaningful deceleration in
the demand for building products as the fourth quarter progressed
and despite this, we delivered solid results. As we navigate this
challenging cycle, our fortress balance sheet provides
opportunities to further execute on our strategy.”
“Throughout 2023 we expect that sales volumes and margins will
continue to be adversely impacted. Consistent with our actions in
2022, we will continue to drive rigor around pricing and emphasize
operational excellence across our business, while adjusting costs
as necessary. We will also maintain our disciplined approach to
capital allocation to generate shareholder returns,” concluded
Gibson.
FOURTH QUARTER 2022 FINANCIAL
PERFORMANCE In the fourth quarter of 2022, net sales
were $848 million, a decrease of $125 million, or 13% when compared
to the fourth quarter of 2021. Gross profit was $151 million, a
decrease of $42 million, or 22%, year-over-year, and gross margin
was 17.8%, down 210 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 $50 million, or
8%, to $592 million. This decline was primarily due to lower
volume. Gross profit from specialty product sales was $125 million,
a decrease of $16 million, or 11%, compared to the fourth quarter
last year. Gross margin was 21.1% compared to 21.9% in the prior
year period.
Net sales of structural products, which includes products such
as lumber, plywood, oriented strand board, rebar, and remesh,
decreased $75 million, or 23%, to $256 million in the fourth
quarter and gross profit from sales of structural products
decreased $27 million from $53 million in the prior year period.
The decrease in structural sales and gross profit was due primarily
to the year-over-year declines in the average composite price of
framing lumber and structural panels, 36% and 26% respectively, in
addition to lower volumes. Gross margin on structural product sales
was 10.4% in the fourth quarter, down from 16.1% in the prior year
period.
Selling, general and administrative (“SG&A”)
expenses were $92 million in the fourth quarter, flat versus the
third quarter of 2022 and $9 million, or 10%, higher than the prior
year period. The year-over-year increase in SG&A was due
primarily to investments in the Company’s workforce during the
year, increased delivery costs and the inclusion of costs related
to Vandermeer.
Net income was $32 million, or $3.50 per diluted
share, versus $74 million, or $7.30 per diluted share, in the prior
year period. Adjusted Net Income was $36 million, or $3.97 per
diluted share. As a result of lower shares outstanding due to the
Company’s share repurchases in 2022, earnings of $3.50 per diluted
share included a $0.31 per share benefit and adjusted earnings of
$3.97 per diluted share included a $0.35 per share benefit.
Adjusted EBITDA was $63 million, or 7.4% of net
sales, as compared to $112 million, or 11.5% of net sales in the
prior period.
Net cash generated from operating activities was
$154 million in the fourth quarter of 2022 compared to $18 million
in the prior year period. The increase in cash generated from
operating activities was driven by a net benefit from working
capital, specifically a $122 million reduction in accounts
receivable and a $68 million reduction in inventory. Free cash flow
was $137 million in the fourth quarter of 2022, up $128 million
compared to the prior year period. We allocated $16.8 million to
cash capital investments related to both distribution facilities
and our fleet during the quarter.
FULL YEAR 2022 FINANCIAL PERFORMANCE For
the twelve months ended December 31, 2022, net sales were $4.5
billion, an increase of $173 million, or 4% year-over-year. Gross
profit was $833 million, an increase of $55 million, or 7%,
year-over-year, and gross margin was 18.7%, up 50 basis points. The
increase in sales and gross profit reflects 14% growth in specialty
product sales and a 10% decline in structural product sales.
Net sales of specialty products increased $351 million, or 14%,
to $2.9 billion in the twelve months ended December 31, 2022. This
growth was primarily driven by strategic pricing actions slightly
offset by lower volumes. Gross profit from specialty product sales
was $640 million, an increase of $79 million, or 14%,
year-over-year and gross margin was 22.3%, consistent with the
prior year period.
Net sales of structural products decreased $178 million, or 10%,
to $1.6 billion in the twelve months ended December 31, 2022, and
gross profit from sales of structural products decreased $24
million to $193 million. The decrease in structural sales and gross
profit was due primarily to a decrease in the average composite
price of framing lumber and structural panels year-over-year in
addition to lower volumes. Gross margin on structural product sales
was 12.2%, relatively consistent with the prior year period.
SG&A expenses were $366 million during
fiscal year 2022, up $44 million, or 14%, when compared to the
prior year period. The year-over-year increase in SG&A was due
primarily to higher delivery costs resulting from increases in fuel
prices and variable compensation, along with strategic investments
in the Company’s workforce.
Net income was $296 million, or $31.51 per
diluted share, versus $296 million, or $29.99 per diluted share in
the prior year. Adjusted net income was $306 million and Adjusted
earnings per share was $32.55 in the current year. As a result of
lower shares outstanding due to the Company’s share repurchases in
2022, earnings of $31.51 per diluted share included a $1.60 per
share benefit and adjusted earnings of $32.55 per diluted share
included a $1.65 per share benefit.
Adjusted EBITDA was $478 million, or 10.7% of
net sales, as compared to $464 million, or 10.8% of net sales in
2021.
Net cash generated from operating activities was
$400 million for fiscal year 2022 compared to $145 million in
fiscal year 2021. This was driven by a net benefit from working
capital. Free cash flow was $364 million for fiscal year 2022
compared to $131 million in the prior year period.
CAPITAL ALLOCATION AND FINANCIAL
POSITIONDuring the full year 2022 we allocated $169
million of cash including $67 million for the acquisition of
Vandermeer, which occurred in the fourth quarter. $36 million was
invested in cash capital investments used to improve our
distribution facilities and upgrade our fleet, an increase of $21
million when compared to fiscal 2021. $66 million was allocated to
buy back approximately 9% of our stock, $60 million of which was
done through an accelerated share repurchase program that was
completed in the third quarter of 2022. Currently, we have $34
million remaining under our share repurchase authorization.
As of December 31, 2022, total debt was $573
million, including $300 million of senior secured notes that mature
in 2029 and $273 million of finance leases. Available liquidity was
$645 million which included an undrawn revolving credit facility
that had $346 million of availability plus cash and cash
equivalents of $299 million. Net debt was $274 million, resulting
in a net leverage ratio of 0.6x on trailing twelve-month adjusted
EBITDA of $478 million.
FIRST QUARTER 2023
UPDATEThrough the first seven weeks of the first quarter
of 2023, specialty product gross margin was in the range of 18% to
19% with daily sales volumes down approximately 15% versus the
prior year reflecting the challenging macro environment. Structural
product gross margin was in the range of 10% to 11% with relatively
consistent sales volumes when compared to last year. The Company
will continue to evaluate market pricing for wood-based commodities
and adjust accordingly at the end of each period.
CONFERENCE CALL
INFORMATION BlueLinx will host a conference
call on February 22, 2023, 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/events-and-presentations/default.aspx,
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:Passcode: |
|
1-877-407-401813735176 |
To listen to a replay of the teleconference, which will be
available through March 8, 2023:
Domestic Replay:Passcode: |
|
1-844-512-292113735176 |
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 our comprehensive range of products to approximately
15,000 customers including 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.
We are headquartered in Georgia, with executive offices located at
1950 Spectrum Circle, Marietta, Georgia, and we operate our
distribution business through a broad network of distribution
centers. BlueLinx encourages investors to visit its website,
www.BlueLinxCo.com, which is updated regularly with financial and
other important information about BlueLinx.
INVESTOR & MEDIA CONTACTS
Noel Ryan(720) 778-2415investor@bluelinxco.com
Marketing &
Communicationsmediarequest@bluelinxco.com
NON-GAAP
MEASURES The Company reports its financial
results in accordance with GAAP. The Company also believes that
presentation of certain non-GAAP measures may be useful to
investors and may provide a more complete understanding of the
factors and trends affecting the business than using reported GAAP
results alone. Any non-GAAP measures used herein are reconciled to
their most directly comparable GAAP measures herein or in the
financial tables accompanying this news release. The Company
cautions that non-GAAP measures should be considered in addition
to, but not as a substitute for, the Company’s reported GAAP
results. 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 and Net Leverage Ratio. BlueLinx
calculates net debt as its total short- and long-term debt,
including outstanding balances under our term loan and revolving
credit facility and the total amount of its obligations under
financing leases, less cash and cash equivalents. We believe that
net debt is useful to investors because our management reviews our
net debt as part of its management of overall liquidity, financial
flexibility, capital structure and leverage, and creditors and
credit analysts monitor our net debt as part of their assessments
of our business. We determine our overall net leverage ratio
by dividing our net debt by trailing twelve-month Adjusted EBITDA.
We believe that this ratio is useful to investors because it is an
indicator of our ability to meet our future financial obligations.
In addition, the ratio is a measure that is frequently used by
investors and creditors.
Our net debt and overall net leverage ratio are
not presentations made in accordance with GAAP and are not intended
to present a superior measure of our financial condition from
measures and ratios determined under GAAP. In addition, our net
debt and overall net leverage ratio, as used herein, are not
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculation. This
non-GAAP measure is reconciled in the “Reconciliation of Non-GAAP
Measurements” table later in this release.
FORWARD-LOOKING STATEMENTSThis
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: inflation; pricing and
product cost variability; volumes of product sold; competition;
changes in the supply and/or demand for products that we
distribute; the cyclical nature of the industry in which we
operate; housing market conditions; 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;
potential acquisitions and the integration and completion of such
acquisitions; business disruptions; effective inventory management
relative to our sales volume or the prices of the products we
distribute; 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; 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 lingering effect of global
pandemics such as COVID-19 and other widespread public health
crisis and their effects on our industry; 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; variable interest rate
risk under certain indebtedness; 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; availability of
third-part freight providers; changes in insurance-related
deductible/retention reserves based on actual loss 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; changes in actuarial assumptions for our pension plan;
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; changes in, or interpretation of,
accounting principles; the possibility that we could be the subject
of securities class action litigation due to stock price
volatility; activities of activist shareholders; and indebtedness
terms that limit our ability to pay dividends on common stock.
Given these risks and uncertainties, we caution
you not to place undue reliance on forward-looking statements. We
expressly disclaim any obligation to update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as required by law.
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands, except per share data) |
Net sales |
$ |
847,769 |
|
|
$ |
972,954 |
|
|
$ |
4,450,214 |
|
|
$ |
4,277,178 |
|
Cost of sales |
|
696,620 |
|
|
|
779,419 |
|
|
|
3,617,230 |
|
|
|
3,498,751 |
|
Gross profit |
|
151,149 |
|
|
|
193,535 |
|
|
|
832,984 |
|
|
|
778,427 |
|
Gross margin |
|
17.8 |
% |
|
|
19.9 |
% |
|
|
18.7 |
% |
|
|
18.2 |
% |
Operating expenses
(income): |
|
|
|
|
|
|
|
Selling, general, and administrative |
|
92,000 |
|
|
|
83,459 |
|
|
|
366,305 |
|
|
|
322,205 |
|
Depreciation and amortization |
|
7,661 |
|
|
|
6,763 |
|
|
|
27,613 |
|
|
|
28,192 |
|
Amortization of deferred gains on real estate |
|
(983 |
) |
|
|
(985 |
) |
|
|
(3,934 |
) |
|
|
(3,935 |
) |
Gains from sales of property |
|
— |
|
|
|
(7,140 |
) |
|
|
(144 |
) |
|
|
(8,427 |
) |
Other operating expenses |
|
1,326 |
|
|
|
1,118 |
|
|
|
4,057 |
|
|
|
2,315 |
|
Total operating expenses |
|
100,004 |
|
|
|
83,215 |
|
|
|
393,897 |
|
|
|
340,350 |
|
Operating income |
|
51,145 |
|
|
|
110,320 |
|
|
|
439,087 |
|
|
|
438,077 |
|
Non-operating expenses
(income): |
|
|
|
|
|
|
|
Interest expense, net |
|
9,280 |
|
|
|
11,816 |
|
|
|
42,272 |
|
|
|
45,507 |
|
Other expense (income), net |
|
1,138 |
|
|
|
27 |
|
|
|
2,054 |
|
|
|
(1,306 |
) |
Income before provision for
income taxes |
|
40,727 |
|
|
|
98,477 |
|
|
|
394,761 |
|
|
|
393,876 |
|
Provision for income
taxes |
|
8,741 |
|
|
|
24,857 |
|
|
|
98,585 |
|
|
|
97,743 |
|
Net income |
$ |
31,986 |
|
|
$ |
73,620 |
|
|
$ |
296,176 |
|
|
$ |
296,133 |
|
|
|
|
|
|
|
|
|
Basic income per share |
$ |
3.53 |
|
|
$ |
7.57 |
|
|
$ |
31.75 |
|
|
$ |
30.80 |
|
Diluted income per share |
$ |
3.50 |
|
|
$ |
7.30 |
|
|
$ |
31.51 |
|
|
$ |
29.99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands, except share data) |
ASSETS |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
298,943 |
|
|
$ |
85,203 |
|
Accounts receivable, less allowances of $3,449 and $4,024,
respectively |
|
251,555 |
|
|
|
339,637 |
|
Inventories, net |
|
484,313 |
|
|
|
488,458 |
|
Other current assets |
|
42,121 |
|
|
|
31,869 |
|
Total current assets |
|
1,076,932 |
|
|
|
945,167 |
|
Property and equipment, at
cost |
|
360,869 |
|
|
|
318,253 |
|
Accumulated depreciation |
|
(155,260 |
) |
|
|
(137,099 |
) |
Property and equipment,
net |
|
205,609 |
|
|
|
181,154 |
|
Operating lease right-of-use
assets |
|
45,717 |
|
|
|
49,568 |
|
Goodwill |
|
55,372 |
|
|
|
47,772 |
|
Intangible assets, net |
|
34,989 |
|
|
|
13,603 |
|
Deferred tax assets |
|
56,169 |
|
|
|
60,285 |
|
Other non-current assets |
|
15,254 |
|
|
|
19,905 |
|
Total assets |
$ |
1,490,042 |
|
|
$ |
1,317,454 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Current liabilities: |
|
|
|
Accounts payable |
$ |
151,626 |
|
|
$ |
180,000 |
|
Accrued compensation |
|
22,556 |
|
|
|
22,363 |
|
Taxes payable |
|
— |
|
|
|
6,138 |
|
Finance lease liabilities - short-term |
|
7,089 |
|
|
|
7,864 |
|
Operating lease liabilities - short-term |
|
7,432 |
|
|
|
5,145 |
|
Real estate deferred gains - short-term |
|
3,935 |
|
|
|
3,934 |
|
Pension benefit obligation - short-term |
|
1,521 |
|
|
|
— |
|
Other current liabilities |
|
16,518 |
|
|
|
18,347 |
|
Total current liabilities |
|
210,677 |
|
|
|
243,791 |
|
Non-current liabilities: |
|
|
|
Long-term debt, net of debt issuance costs of $4,057 and $4,701,
respectively |
|
292,424 |
|
|
|
291,271 |
|
Finance lease liabilities - long-term |
|
265,986 |
|
|
|
266,853 |
|
Operating lease liabilities - long-term |
|
40,011 |
|
|
|
44,526 |
|
Real estate deferred gains - long-term |
|
70,403 |
|
|
|
74,206 |
|
Pension benefit obligation - long-term |
|
— |
|
|
|
11,605 |
|
Other non-current liabilities |
|
20,512 |
|
|
|
21,953 |
|
Total liabilities |
|
900,013 |
|
|
|
954,205 |
|
Commitments and
contingencies |
|
|
|
STOCKHOLDERS' EQUITY: |
Common Stock, $0.01 par value, 20,000,000 shares
authorized, 9,048,603 and 9,725,760 outstanding on
December 31, 2022 and January 1, 2022, respectively |
|
90 |
|
|
|
97 |
|
Additional paid-in capital |
|
200,748 |
|
|
|
268,085 |
|
Accumulated other comprehensive loss |
|
(31,412 |
) |
|
|
(29,360 |
) |
Accumulated stockholders’ equity |
|
420,603 |
|
|
|
124,427 |
|
Total stockholders’
equity |
|
590,029 |
|
|
|
363,249 |
|
Total liabilities and
stockholders’ equity |
$ |
1,490,042 |
|
|
$ |
1,317,454 |
|
|
|
|
|
|
|
|
|
BLUELINX HOLDINGS
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands) |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Net income |
$ |
31,986 |
|
|
$ |
73,620 |
|
|
$ |
296,176 |
|
|
$ |
296,133 |
|
Adjustments to reconcile net
income to cash provided by operations: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,661 |
|
|
|
6,763 |
|
|
|
27,613 |
|
|
|
28,192 |
|
Amortization of debt discount and issuance costs |
|
330 |
|
|
|
(149 |
) |
|
|
1,153 |
|
|
|
1,411 |
|
Adjustment to debt issuance cost associated with term
loan/revolver |
|
— |
|
|
|
1,603 |
|
|
|
— |
|
|
|
7,394 |
|
Gains from sales of property |
|
— |
|
|
|
(7,140 |
) |
|
|
(144 |
) |
|
|
(8,427 |
) |
Amortization of deferred gain from real estate |
|
(983 |
) |
|
|
(985 |
) |
|
|
(3,934 |
) |
|
|
(3,935 |
) |
Share-based compensation |
|
3,588 |
|
|
|
1,580 |
|
|
|
9,617 |
|
|
|
6,590 |
|
Deferred income tax |
|
6,228 |
|
|
|
8,140 |
|
|
|
5,289 |
|
|
|
356 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
122,164 |
|
|
|
5,337 |
|
|
|
101,266 |
|
|
|
(45,994 |
) |
Inventories |
|
68,280 |
|
|
|
(52,020 |
) |
|
|
20,759 |
|
|
|
(146,350 |
) |
Accounts payable |
|
(60,005 |
) |
|
|
(30,386 |
) |
|
|
(31,808 |
) |
|
|
14,837 |
|
Taxes payable |
|
(6,750 |
) |
|
|
(350 |
) |
|
|
(6,138 |
) |
|
|
(1,709 |
) |
Pension contributions |
|
(11,198 |
) |
|
|
(248 |
) |
|
|
(11,876 |
) |
|
|
(1,100 |
) |
Other current assets |
|
(11,195 |
) |
|
|
6,959 |
|
|
|
(11,635 |
) |
|
|
712 |
|
Other assets and liabilities |
|
4,155 |
|
|
|
5,440 |
|
|
|
3,959 |
|
|
|
(3,087 |
) |
Net cash provided by operating
activities |
|
154,261 |
|
|
|
18,164 |
|
|
|
400,297 |
|
|
|
145,023 |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Acquisition of business, net of cash acquired |
|
(63,767 |
) |
|
|
— |
|
|
|
(63,767 |
) |
|
|
— |
|
Proceeds from sale of assets |
|
316 |
|
|
|
7,675 |
|
|
|
964 |
|
|
|
10,327 |
|
Property and equipment investments |
|
(16,807 |
) |
|
|
(8,991 |
) |
|
|
(35,886 |
) |
|
|
(14,415 |
) |
Net cash used in investing
activities |
|
(80,258 |
) |
|
|
(1,316 |
) |
|
|
(98,689 |
) |
|
|
(4,088 |
) |
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Borrowings on revolving credit facilities |
|
— |
|
|
|
49,074 |
|
|
|
— |
|
|
|
949,080 |
|
Repayments on revolving credit facilities |
|
— |
|
|
|
(270,582 |
) |
|
|
— |
|
|
|
(1,235,724 |
) |
Repayments on term loan |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43,204 |
) |
Proceeds from senior secured notes |
|
— |
|
|
|
295,861 |
|
|
|
— |
|
|
|
295,861 |
|
Common stock repurchase and retirement |
|
— |
|
|
|
— |
|
|
|
(66,427 |
) |
|
|
— |
|
Debt financing costs |
|
— |
|
|
|
(2,648 |
) |
|
|
— |
|
|
|
(5,459 |
) |
Repurchase of shares to satisfy employee tax withholdings |
|
(746 |
) |
|
|
(58 |
) |
|
|
(10,534 |
) |
|
|
(5,193 |
) |
Principal payments on finance lease liabilities |
|
(3,678 |
) |
|
|
(3,478 |
) |
|
|
(10,907 |
) |
|
|
(11,175 |
) |
Net cash provided by (used in)
financing activities |
|
(4,424 |
) |
|
|
68,169 |
|
|
|
(87,868 |
) |
|
|
(55,814 |
) |
Net change in cash and cash
equivalents |
|
69,579 |
|
|
|
85,017 |
|
|
|
213,740 |
|
|
|
85,121 |
|
Cash and cash equivalents at
beginning of period |
|
229,364 |
|
|
|
186 |
|
|
|
85,203 |
|
|
|
82 |
|
Cash and cash equivalents at
end of period |
$ |
298,943 |
|
|
$ |
85,203 |
|
|
$ |
298,943 |
|
|
$ |
85,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLUELINX HOLDINGS
INC.RECONCILIATION OF NON-GAAP
MEASUREMENTS(Unaudited)
The following schedule reconciles net income to
Adjusted EBITDA:
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands) |
Net income |
$ |
31,986 |
|
|
$ |
73,620 |
|
|
$ |
296,176 |
|
|
$ |
296,133 |
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
7,661 |
|
|
|
6,763 |
|
|
|
27,613 |
|
|
|
28,192 |
|
Interest expense, net |
|
9,280 |
|
|
|
10,213 |
|
|
|
42,272 |
|
|
|
38,113 |
|
Adjustment to debt issuance cost associated with term
loan/revolver(1) |
|
— |
|
|
|
1,603 |
|
|
|
— |
|
|
|
7,394 |
|
Provision for income taxes |
|
8,741 |
|
|
|
24,857 |
|
|
|
98,585 |
|
|
|
97,743 |
|
Share-based compensation expense |
|
3,588 |
|
|
|
1,580 |
|
|
|
9,617 |
|
|
|
6,590 |
|
Amortization of deferred gains on real estate |
|
(983 |
) |
|
|
(985 |
) |
|
|
(3,934 |
) |
|
|
(3,935 |
) |
Gain from sales of property(1) |
|
— |
|
|
|
(7,140 |
) |
|
|
(144 |
) |
|
|
(8,427 |
) |
Acquisition-related costs(1)(2) |
|
1,022 |
|
|
|
— |
|
|
|
1,255 |
|
|
|
214 |
|
Restructuring and other(1)(3) |
|
1,804 |
|
|
|
1,460 |
|
|
|
6,302 |
|
|
|
2,054 |
|
Adjusted EBITDA |
$ |
63,099 |
|
|
$ |
111,971 |
|
|
$ |
477,742 |
|
|
$ |
464,071 |
|
|
|
|
|
|
|
|
|
(1) Reflects non-recurring items of approximately $2.8 million
in beneficial items to the current quarterly period and
approximately $4.1 million in non-beneficial items to the prior
quarterly period. For the current fiscal year period, reflects
non-recurring, beneficial items of approximately $7.4 million and
the prior fiscal year period reflects $1.2 million of
non-recurring, beneficial items.
(2) Reflects primarily legal, professional, technology and other
integration costs.
(3) Reflects costs related to our restructuring
efforts, such as severance, net of other one-time non-operating
items.
The following tables reconciles net income and
diluted income per share to adjusted net income and adjusted
diluted income per share:
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands, except per share data) |
Net income |
$ |
31,986 |
|
|
$ |
73,620 |
|
|
$ |
296,176 |
|
|
$ |
296,133 |
|
Adjustments: |
|
|
|
|
|
|
|
Share-based compensation expense |
|
3,588 |
|
|
|
1,580 |
|
|
|
9,617 |
|
|
|
6,590 |
|
Amortization of deferred gains on real estate |
|
(983 |
) |
|
|
(985 |
) |
|
|
(3,934 |
) |
|
|
(3,935 |
) |
Gain from sales of property |
|
— |
|
|
|
(7,140 |
) |
|
|
(144 |
) |
|
|
(8,427 |
) |
Acquisition-related costs |
|
1,022 |
|
|
|
— |
|
|
|
1,255 |
|
|
|
214 |
|
Restructuring and other |
|
1,804 |
|
|
|
1,460 |
|
|
|
6,302 |
|
|
|
2,054 |
|
Tax impacts of reconciling items above (1) |
|
(1,168 |
) |
|
|
1,281 |
|
|
|
(3,274 |
) |
|
|
869 |
|
Adjusted net income |
$ |
36,249 |
|
|
$ |
69,816 |
|
|
$ |
305,998 |
|
|
$ |
293,498 |
|
|
|
|
|
|
|
|
|
Basic EPS |
$ |
3.53 |
|
|
$ |
7.57 |
|
|
$ |
31.75 |
|
|
$ |
30.80 |
|
Diluted EPS |
$ |
3.50 |
|
|
$ |
7.30 |
|
|
$ |
31.51 |
|
|
$ |
29.99 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - Basic |
|
9,036 |
|
|
|
9,724 |
|
|
|
9,328 |
|
|
|
9,615 |
|
Weighted average shares
outstanding - Diluted |
|
9,128 |
|
|
|
10,090 |
|
|
|
9,398 |
|
|
|
9,876 |
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Basic
EPS |
$ |
4.01 |
|
|
$ |
7.18 |
|
|
$ |
32.80 |
|
|
$ |
30.52 |
|
Non-GAAP Adjusted Diluted
EPS |
$ |
3.97 |
|
|
$ |
6.91 |
|
|
$ |
32.55 |
|
|
$ |
29.71 |
|
|
|
|
|
|
|
|
|
(1) Tax impact calculated based on the effective
tax rate for the respective three-month periods and twelve-month
periods presented.
The following schedules presents our Adjusted
EBITDA margin as a percentage of net sales:
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands) |
Net sales |
$ |
847,769 |
|
|
$ |
972,954 |
|
|
$ |
4,450,214 |
|
|
$ |
4,277,178 |
|
Adjusted EBITDA |
|
63,099 |
|
|
|
111,971 |
|
|
|
477,742 |
|
|
|
464,071 |
|
Adjusted EBITDA margin |
|
7.4 |
% |
|
|
11.5 |
% |
|
|
10.7 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following schedules presents our revenues
disaggregated by specialty and structural product category.
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands) |
Net sales by product
category |
|
|
|
|
|
|
|
Specialty products |
$ |
591,538 |
|
|
$ |
641,470 |
|
|
$ |
2,871,628 |
|
|
$ |
2,520,305 |
|
Structural products |
|
256,231 |
|
|
|
331,484 |
|
|
|
1,578,586 |
|
|
|
1,756,873 |
|
Total net sales |
$ |
847,769 |
|
|
$ |
972,954 |
|
|
$ |
4,450,214 |
|
|
$ |
4,277,178 |
|
|
|
|
|
|
|
|
|
Gross profit by product
category |
|
|
|
|
|
|
|
Specialty products |
$ |
124,589 |
|
|
$ |
140,297 |
|
|
$ |
640,370 |
|
|
$ |
561,520 |
|
Structural products(1) |
|
26,560 |
|
|
|
53,238 |
|
|
|
192,614 |
|
|
|
216,907 |
|
Total gross profit |
$ |
151,149 |
|
|
$ |
193,535 |
|
|
$ |
832,984 |
|
|
$ |
778,427 |
|
|
|
|
|
|
|
|
|
Gross margin % by product
category |
|
|
|
|
|
|
|
Specialty products |
|
21.1 |
% |
|
|
21.9 |
% |
|
|
22.3 |
% |
|
|
22.3 |
% |
Structural products(1) |
|
10.4 |
% |
|
|
16.1 |
% |
|
|
12.2 |
% |
|
|
12.3 |
% |
Total gross margin % |
|
17.8 |
% |
|
|
19.9 |
% |
|
|
18.7 |
% |
|
|
18.2 |
% |
|
|
|
|
|
|
|
|
(1) For additional information about our lower
of cost or net realizable value (LC-NRV) adjustments, see our Form
10-K for the fiscal period ended December 31, 2022.
The following schedule presents Net Debt and the Net Leverage
Ratio for the twelve months ended:
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
(In thousands) |
Finance lease liabilities - short term |
$ |
7,089 |
|
|
$ |
7,864 |
|
Long term debt (1) |
|
300,000 |
|
|
|
300,000 |
|
Finance lease liabilities -
long term |
|
265,986 |
|
|
|
266,853 |
|
Total debt |
|
573,075 |
|
|
|
574,717 |
|
Less: available cash |
|
298,943 |
|
|
|
85,203 |
|
Net Debt |
|
274,132 |
|
|
|
489,514 |
|
Twelve month ended Adjusted
EBITDA |
$ |
477,742 |
|
|
$ |
464,071 |
|
Net Leverage Ratio |
|
0.6x |
|
|
|
1.1x |
|
|
|
|
|
(1) For the period ended December 31, 2022,
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 balance sheet at $292.4 million which
is net of their discount of $3.5 million and the combined carrying
value of our debt issuance costs of $4.1 million. For the period
ended January 1, 2022, our long-term debt presented in this
table is the balance presented on our balance sheet of $291.3
million, which is net of their discount of $4.0 million and the
combined carrying value of our debt issuance costs of $4.7 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 presents free cash flow:
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, 2022 |
|
January 1, 2022 |
|
December 31, 2022 |
|
January 1, 2022 |
Net cash provided by operating activities |
$ |
154,261 |
|
|
$ |
18,164 |
|
|
$ |
400,297 |
|
|
$ |
145,023 |
|
Less: property and equipment
investments |
|
(16,807 |
) |
|
|
(8,991 |
) |
|
|
(35,886 |
) |
|
|
(14,415 |
) |
Free cash flow |
$ |
137,454 |
|
|
$ |
9,173 |
|
|
$ |
364,411 |
|
|
$ |
130,608 |
|
|
|
|
|
|
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BlueLinx (NYSE:BXC)
Historical Stock Chart
From Sep 2024 to Oct 2024
BlueLinx (NYSE:BXC)
Historical Stock Chart
From Oct 2023 to Oct 2024