BlueLinx (BXC)2024-10-29 20:07Financial Performance - Net sales for Q3 2024 were $747 million, a decrease of $63 million, or 8% compared to Q3 2023[3] - Adjusted Net Income for the three months ended September 28, 2024, was $16,016,000, compared to $24,382,000 for the same period in 2023, representing a decrease of 34.3%[31] - Adjusted Earnings Per Share (diluted) for the three months ended September 28, 2024, was $1.87, down from $2.71 in the prior year, a decline of 30.9%[31] - Net income for the three months ended September 28, 2024, was $16,016,000, a decrease from $24,382,000 for the same period in 2023, representing a decline of 34.5%[38] - Adjusted net income for the three months ended September 28, 2024, was $16,656,000, down 37.8% from $26,764,000 in the prior year[42] - Basic EPS for the three months ended September 28, 2024, was $1.88, a decline of 30.9% from $2.72 in the same quarter last year[42] Revenue and Sales - Specialty products net sales were $519 million, a decrease of $40 million, or 7.1% year-over-year, with a gross margin of 19.4%[4] - Structural products net sales decreased by $23 million, or 9.1%, to $228 million, with a gross margin of 11.0%[5] - Total net sales for the three months ended September 28, 2024, were $747,288,000, down 7.7% from $809,981,000 in the prior year[37] - Specialty products net sales for the three months ended September 28, 2024, were $519,000,000, down 7.1% from $558,851,000 in the same period last year[37] - Structural products net sales for the three months ended September 28, 2024, were $228,288,000, a decrease of 9.1% from $251,130,000 in the prior year[37] Profitability - Gross profit was $126 million, down $14 million, or 10% year-over-year, with a gross margin of 16.8%, a decline of 40 basis points from the previous year[3] - Gross profit for the three months ended September 28, 2024, was $125,669,000, down 9.8% from $139,246,000 in the prior year, with a gross margin of 16.8%[31] - The company reported a gross margin of 16.8% for the three months ended September 28, 2024, compared to 17.2% in the same period last year[37] Cash Flow and Debt - Operating cash flow was $62 million, and free cash flow was $54 million, driven by net income and improved working capital[11] - Free cash flow for the three months ended September 28, 2024, was $53,837,000, a decrease of 26.0% compared to $72,707,000 for the same period in 2023[46] - Total debt was $351 million, with a net leverage ratio of (1.2x) based on trailing twelve-month Adjusted EBITDA of $146 million[13] - Total debt and finance leases as of September 28, 2024, amounted to $593,810,000, an increase from $585,426,000 as of December 30, 2023[45] - Net debt as of September 28, 2024, was $67,529,000, compared to $63,683,000 as of December 30, 2023[45] - Net leverage ratio as of September 28, 2024, was 0.5x, up from 0.3x as of December 30, 2023[45] Expenses - SG&A expenses were $92 million, an increase of $1 million year-over-year, primarily due to higher technology expenses[8] - Total operating expenses for the three months ended September 28, 2024, were $101,644,000, an increase of 2.1% compared to $99,590,000 in the same period last year[31] Future Outlook - For Q4 2024, specialty product gross margin is expected to be in the range of 18% to 19%[14] Inventory and Assets - The company reported a decrease in inventories, netting $340,541,000 as of September 28, 2024, compared to $343,638,000 in the previous quarter[33] - Total assets increased to $1,611,079,000 as of September 28, 2024, from $1,537,601,000 at the end of the previous quarter, reflecting growth in the company's asset base[33]