Financial Data and Key Metrics Changes - The company reported net sales of $726 million, a decrease of 9% year-over-year, with adjusted EBITDA of $39 million, resulting in a 5.3% adjusted EBITDA margin [13][21][56] - Total gross profit was $128 million, with a gross margin of 17.6%, which is an increase of 90 basis points from the prior period [21] - Adjusted net income was $19 million, or $2.14 per share [13][49] Business Line Data and Key Metrics Changes - Specialty products accounted for approximately 70% of net sales and over 80% of gross profit, with net sales of $504 million, down 11% year-over-year [14][50] - Gross profit from specialty products was $104 million, down 2% year-on-year, with a specialty gross margin of 20.7%, up 190 basis points from last year [24][50] - Structural products had net sales of $222 million, down 3% compared to the prior year, with a gross profit of $24 million and a gross margin of 10.6%, down 110 basis points [52] Market Data and Key Metrics Changes - The broader housing market remains volatile, with March housing starts sliding to an adjusted annual rate of 1.32 million, down 15% from February [43] - Single-family housing starts dropped roughly 12%, while large multi-family starts fell 21% [43] - Existing home sales are at their lowest level in nearly 30 years, impacting repair and remodel activity [45] Company Strategy and Development Direction - The company aims to grow its core business in five key specialty product categories: engineered wood, siding, industrial products, millwork, and outdoor living [11][12] - There is a commitment to allocate capital for M&A and greenfield initiatives to expand geographic reach and support specialty product sales growth [12] - The company is focused on operational, business, and digital excellence to enhance customer experience and drive growth [39] Management's Comments on Operating Environment and Future Outlook - Management expressed a belief in the long-term prospects of the housing and building products sector, despite near-term uncertainties [20] - The company anticipates continued price deflation in specialty products but expects moderation as the year progresses [50][61] - Management noted that while large builders have advantages in the current market, the company is investing in strategies to capture more business from them [142] Other Important Information - The company experienced deflation in specialty product sales due to extreme weather conditions in January, impacting volumes [15] - Average lumber prices were about $403 per thousand board feet, a 2% decrease year-over-year, while panel prices were about $615 per thousand square feet, a 23% increase [26] - The company has a strong balance sheet with cash on hand of $481 million and available liquidity of $828 million [27] Q&A Session Summary Question: Can you provide more color on the cadence of specialty volume growth? - Management indicated that volumes improved in February and March, with modest growth in specialty volumes by the end of the quarter [59] Question: What is the outlook for specialty products pricing in 2024? - Management expects continued deflationary pressures but anticipates moderation as the year progresses [61] Question: Can you provide details on the greenfield initiative? - The company is evaluating several markets for potential greenfield operations, particularly in regions with favorable housing starts and demographic trends [63][100] Question: How is the company managing its capital allocation? - The company aims to maintain a strong balance sheet while pursuing disciplined M&A strategies and opportunistic share repurchases [71][147] Question: What changes have been observed in customer behavior recently? - Management noted steady-state business from customers, aligning with seasonal buying patterns [108]

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Financial Performance - Net sales for Q1 2024 were $726 million, with a gross profit of $128 million and a gross margin of 17.6%[2]. - Adjusted EBITDA for the quarter was $39 million, representing 5.3% of net sales, benefiting from approximately $7 million related to import duties from prior periods[2][11]. - Net income was $17 million, or $2.00 diluted earnings per share, compared to $18 million, or $1.94 per diluted share in the prior year[5]. - For the first quarter of 2024, net sales were $726 million, a decrease of $72 million, or 9.0% compared to the first quarter of 2023[39]. - Gross profit for the first quarter was $128 million, down $6 million, or 4.4% year-over-year, with a gross margin of 17.6%, an increase of 90 basis points from the same period last year[39]. - Adjusted EBITDA was $39 million, or 5.3% of net sales, compared to $47 million, or 5.9% of net sales in the first quarter of 2023[41]. - Basic earnings per share (EPS) for the first quarter was $2.02, compared to $1.96 in the same period last year[34]. - Diluted EPS for the first quarter was $2.00, compared to $1.94 in the same period last year[34]. - Adjusted net income was $19 million, or $2.14 per diluted share, down from $23 million, or $2.53 per diluted share in the prior year[5]. - Net income for the three months ended March 30, 2024, was $17,492, compared to $17,812 for the same period last year, a decrease of 1.8%[58]. - Adjusted EBITDA margin decreased to 5.3% from 5.9% year-over-year, reflecting a decline in profitability[63]. - Total net sales for the three months ended March 30, 2024, were $726,244, down from $797,904, a decrease of 8.9%[66]. Specialty Products - Net sales of specialty products decreased by $64 million, or 11%, to $504 million, while gross margin improved to 20.7% from 18.8% in the prior year[12]. - The decline in specialty product sales was attributed to deflationary impacts across several categories[12]. - Specialty products gross margin improved to 20.7% from 18.8% year-over-year, indicating better cost management in this category[66]. - Specialty product gross margin for the first four weeks of the second quarter of 2024 was in the range of 18% to 19%[43]. Cash Flow and Liquidity - Net cash used in operating activities was $31 million, a significant decrease from $89 million of net cash provided in the prior year[14]. - Available liquidity stood at $828 million, including $481 million in cash and cash equivalents[2][15]. - The company reported strong liquidity, allowing for flexibility in pursuing strategic initiatives and returning capital to shareholders[38]. - Free cash flow for the three months ended March 30, 2024, was $(36,582), compared to $79,957 for the same period last year, showing a significant decline[72]. - Cash and cash equivalents at the end of the period were $481,309, down from $521,743, a decrease of 7.7%[58]. Debt and Liabilities - The company reported a net debt of ($133) million, resulting in a net leverage ratio of (0.8x) on trailing twelve-month Adjusted EBITDA of $175 million[15]. - Total liabilities increased to $938,424 from $903,315, an increase of 3.9%[57]. - Net debt, excluding cash and cash equivalents, was $110,758, down from $194,530 year-over-year, indicating improved leverage[64]. Operational Expenses and Investments - Selling, general and administrative (SG&A) expenses were $91 million in the first quarter, consistent with the prior year period[40]. - The company invested $5 million in capital improvements during the first quarter, down from $9 million in the same period last year[42]. - The company has $91.4 million remaining under its share repurchase authorization[42]. Accounts Receivable - Accounts receivable increased to $288,244 from $228,410, reflecting a rise of 26.2%[57].

Financial Data and Key Metrics Changes - For the full year 2023, the company generated net sales of $3.1 billion, with adjusted EBITDA of $183 million, resulting in a 5.8% adjusted EBITDA margin [12][38] - The fourth quarter net sales were $713 million, down 16% year-over-year, with a net loss of $18 million and diluted loss per share of $2.08 [34][35] - Adjusted net income for the year was $103 million, or $11.41 per share, while the full year tax rate was 40.7% due to the pension plan termination [38][17] Business Line Data and Key Metrics Changes - Specialty products accounted for approximately 70% of net sales and 80% of gross profit for both the fourth quarter and full year 2023 [11][21] - Specialty product sales in Q4 were $487 million, down 18% year-over-year, with a gross profit of $94 million, down 24% [35] - Structural product sales were $226 million, down 12% year-over-year, with a gross profit of $24 million, a decrease of 10% [18] Market Data and Key Metrics Changes - The company noted that higher interest rates and recession risks have slowed housing starts and repair activity, impacting the overall business environment [10][30] - Despite challenges, there was an improvement in builder sentiment and housing starts in late 2023, with expectations for potential rate cuts in 2024 [30][47] - The company experienced price deflation in specialty products, which affected both top line and cost of goods during 2024 [14][58] Company Strategy and Development Direction - The company aims to become the most technologically advanced 2-step distributor of building products in the U.S., focusing on specialty sales growth, opportunistic M&A, and greenfield developments [5][7] - A multiyear digital transformation journey is set to begin in 2024, enhancing data architecture, transportation management, and e-commerce capabilities [8][26] - The company is strategically targeting acquisition opportunities to expand geographic reach and support specialty product sales growth [9][96] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenging market conditions and emphasized the importance of operational excellence and cost management [15][24] - The outlook for repair and remodel spending is expected to decline further in 2024, but high home equity levels may support smaller projects [46][47] - Management remains optimistic about long-term prospects in the housing and building products sector, citing demographic shifts and aging housing stock as supportive factors [47][30] Other Important Information - The company returned $42 million to shareholders in 2023 through share repurchases, with a new $100 million share repurchase authorization announced [4][44] - The company has a strong liquidity position with $868 million available at year-end, including $522 million in cash [27][54] - A one-time charge of $31.4 million was incurred due to the termination of a legacy defined benefit pension plan [17] Q&A Session Summary Question: Can you quantify the price headwind for full year '23 and its persistence in Q1? - Management indicated that the price headwind for specialty products was in the mid-teens for the year, with a slight improvement expected in Q1 [58] Question: What are the expectations for the digital initiative and its impact on operations? - The digital initiative aims to improve internal efficiencies and enhance customer experience, with a $5 million increase in operating expenses anticipated [60][80] Question: What is the outlook for repair and remodel demand trends? - Management noted that repair and remodel spending is expected to decline further in 2024, with general sentiment indicating a mid-single-digit decrease [68] Question: Can you discuss the potential for additional supplier partnership expansion? - The company is actively working with strategic suppliers to expand geographic reach and product offerings, with ongoing discussions for new partnerships [70][96] Question: How will success be tracked for the technology investments? - Success metrics will include improvements in logistics costs and customer experience, with specific targets set for transportation management system enhancements [74][86]

Financial Performance - Net sales for the fiscal year ended December 30, 2023, were $3,136,381, a decrease from $4,450,214 in the previous year, representing a decline of approximately 29.6%[151] - Gross profit for the fiscal year 2023 was $527,017, down from $832,984 in fiscal 2022, indicating a decrease of about 36.6%[151] - Operating income for fiscal 2023 was $138,449, compared to $439,087 in fiscal 2022, reflecting a decline of approximately 68.4%[151] - Basic earnings per share for fiscal 2023 were $5.40, a significant decrease from $31.75 in fiscal 2022[151] - The total operating expenses for fiscal 2023 were $388,568, slightly down from $393,897 in fiscal 2022[151] Shareholder Actions - The company repurchased 506,312 shares of common stock for $42.1 million at an average price of $83.21 per share[208] Product Segmentation - Specialty products accounted for approximately 70% of net sales in fiscal 2023, while structural products represented about 30%[209] Pension Plan Settlement - The company settled its frozen defined benefit pension plan during the fourth quarter of fiscal 2023, transferring future financial responsibility to an insurance company[153] - The company anticipates no additional funding obligations related to the settled pension plan, with some union employees still participating in multi-employer pension plans[153] Goodwill and Valuation - The valuation allowance related to net operating losses as of December 30, 2023, was approximately $3.5 million[157] - As of December 30, 2023, the carrying value of goodwill was $55.4 million, representing less than 4% of consolidated assets[162] - The company performed a quantitative annual goodwill assessment, which indicated that goodwill was not impaired[162] Financial Instruments and Risks - The company has no material financial instruments exposed to commodity price risk as of December 30, 2023[165] - The prices of building products, including OSB, plywood, lumber, and rebar, are influenced by market supply and demand, economic conditions, and competition[165] - The company had no outstanding borrowings on its revolving credit facility as of December 30, 2023[166] - Senior secured notes bear interest at a fixed rate, insulating the company from interest rate increases if debt covenants are maintained[166] - The company may enter into derivative financial instruments to mitigate commodity price fluctuations, but had none in place as of December 30, 2023[165] - Interest rate changes could impact the terms and pricing of future refinancings of term debt[166] - The company is exposed to interest rate risk from fluctuations in variable-rate SOFR when amounts are outstanding on its revolving credit facility[166] - The company is subject to market risks, including commodity price risk and interest rate risk, as part of its ongoing business operations[164]

ATLANTA--(BUSINESS WIRE)--BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, will issue fourth quarter and full year 2023 financial results after the market closes on Tuesday, February 20, 2024. A conference call to discuss the Company’s results will be hosted by Shyam Reddy, President and Chief Executive Officer, and Andy Wamser, Chief Financial Officer, on Wednesday, February 21, 2024, at 10:00 AM ET. A webcast of the conference call and accompanying presentati ...

ATLANTA, Jan. 16, 2024 (GLOBE NEWSWIRE) -- BlueLinx Holdings Inc. (NYSE:BXC), a leading U.S. wholesale distributor of building products, and Huber Engineered Woods LLC, a subsidiary of J.M. Huber Corporation, a leading privately-held specialty building products manufacturer, are pleased to announce an expansion of their distribution partnership. The expansion will include Huber's assortment of AdvanTech® subflooring and ZIP System™ building enclosure product lines in BlueLinx's Denville, NJ, and Pensacola, ...

11 Operating Working Capital Management(1) $ in millions 40% 10% Amortization CAPITAL ALLOCATION FRAMEWORK ▪ Long-term net leverage could increase to at or around 3.0x when considering growth ▪ Acquisitions aligned to strategy 13 Q&A Total U.S. Single Family Housing Starts (SFHS) Months of inventory(2) 14 ~7 months of home inventory 12 10 8 20-year average 2 0 2000 2001 ETOZ 2007 2003 2007 2009 01.05 ttoz 5107 2014 STOF LT01 rzoi zz.0z EZOI 2004 2006 2008 9107 BT 07 2019 0201 3005 (1) Source: Historical dat ...

BlueLinx Holdings Inc (NYSE:BXC) Q3 2023 Earnings Conference Call November 1, 2023 10:00 AM ET Company Participants Tom Morabito - Investor Relations Shyam Reddy - President, CEO Andy Wamser - SVP & CFO Conference Call Participants Greg Palm - Craig-Hallum Capital Group Reuben Garner - Benchmark Company Kurt Yinger - D.A. Davidson Jeffrey Stevenson - Loop Capital Markets Operator Call has been recorded. We will begin with the opening remarks and introductions. At this time I would like to turn the conferenc ...

Supply Constraints 19 imposed by federal, state, local, and other regulations; compliance costs associated with federal, state, and local environmental protection laws; costs associated with federal law and regulations regarding importation of products; global pandemics, such as COVID-19, and other widespread public health crises and their potential effects on our business; fluctuations in our operating results; our level of indebtedness and our ability to incur additional debt to fund future needs; the cov ...