BlueLinx (BXC)2024-07-30 20:13Financial Performance - Net sales for the three months ended June 29, 2024, were $768,363, a decrease of 5.8% from $815,967 for the same period last year[5] - Gross profit for the three months ended June 29, 2024, was $122,444, down 9.8% from $135,803 in the prior year, resulting in a gross margin of 15.9%[5] - Operating income decreased to $23,847 for the three months ended June 29, 2024, compared to $39,093 in the same period last year[5] - Net income for the three months ended June 29, 2024, was $14,336, a decline of 41.3% from $24,466 in the prior year[5] - Adjusted EBITDA for the three months ended June 29, 2024, was $34,395, with an Adjusted EBITDA margin of 4.5%, compared to 6.0% in the same period last year[14] - Adjusted net income for Q2 2024 was $15 million, or $1.68 adjusted diluted earnings per share, compared to $26 million, or $2.91 per diluted share in the prior year[49] - Net income for the second quarter of 2024 was $14 million, translating to a diluted earnings per share of $1.65[55] Cash Flow and Liquidity - Free cash flow for the six months ended June 29, 2024, was $(7,233), compared to $139,079 for the same period last year[1] - Cash flows from operating activities for the three months ended June 29, 2024, were $35,803, down from $64,153 in the same period last year[9] - Free cash flow generated during the second quarter was $29 million, with net cash from operating activities amounting to $36 million[56] - The company ended the second quarter with $491 million in cash on hand and a net leverage ratio of (0.9x)[55] Sales Breakdown - Specialty products net sales were $539,466 for the three months ended June 29, 2024, compared to $570,990 in the prior year, reflecting a decrease of 5.5%[10] - Structural products net sales were $228,897 for the three months ended June 29, 2024, down from $244,977 in the same period last year, a decrease of 6.6%[10] - Net sales of specialty products decreased by $32 million, or 5.5%, to $539 million in Q2 2024, while gross profit from specialty products was $104 million, a decrease of $4 million, or 4.1%[48] Assets and Liabilities - Total current assets increased to $1,158,722 as of June 29, 2024, from $1,120,399 at the end of December 30, 2023[26] - Total liabilities rose to $933,744 as of June 29, 2024, compared to $903,315 at the end of December 30, 2023[26] - The company had cash and cash equivalents of $491,392 at the end of the period, an increase from $418,325 at the end of the previous year[9] - Cash and cash equivalents decreased to $491,392 as of June 29, 2024, from $521,743 at the end of December 30, 2023[26] - The company has a total stockholders' equity of $652,332 as of June 29, 2024, compared to $634,286 at the end of December 30, 2023[26] Debt and Financing - Total debt and finance lease obligations, excluding real property finance lease obligations, was $348 million as of June 29, 2024[40] - Net debt was ($143) million, resulting in a net leverage ratio of (0.9x) using trailing twelve-month adjusted EBITDA of $160 million[40] - Interest expense for the three months ended June 29, 2024, was $4,801, down from $6,311 in the same period last year[13] Shareholder Returns - The company repurchased approximately $15 million of its common stock during the quarter, with $76 million remaining under its share repurchase authorization[50] - The company emphasizes its commitment to returning capital to shareholders through its share repurchase program[55] Market and Operational Environment - The forward-looking statements include potential risks related to housing market conditions and competition, which may impact future performance[57] - The company operates in a changing environment with inherent uncertainties that could affect its business strategy and results[57] - Effective inventory management and the ability to attract and retain qualified personnel are critical for the company's operational success[57] - The company is focused on maintaining strong cash flows and managing its debt levels effectively[57]