BlueLinx (BXC) - 2023 Q4 - Annual Report

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]