BlueLinx (US:BXC)2025-11-04 21:11Financial Performance - In Q3 2025, BlueLinx reported net sales of $749 million, a slight increase of $2 million or 0.2% compared to Q3 2024[5] - Gross profit for the quarter was $108 million, down $17 million or 14% year-over-year, with a gross margin percentage of 14.4%, a decrease of 240 basis points from the previous year[5] - Net income for the quarter was $1.7 million, or $0.20 per diluted share, compared to $16.0 million, or $1.87 per diluted share in the prior year[11] - Adjusted EBITDA was $22.4 million, or 3.0% of net sales, down from $36.6 million, or 4.9% of net sales in Q3 2024[12] - Adjusted EBITDA for the three fiscal months ended September 27, 2025, was $9,966,000, compared to $24,025,000 for the same period in 2024, indicating a decline in operating performance[38] - Operating income for the three months ended September 27, 2025, was $9,966,000, a significant decrease from $24,025,000 in the same period of 2024[38] - Net income for the three months ended September 27, 2025, was $1,655,000, down from $16,016,000 in the same period last year, representing a decline of approximately 89.7%[38] - Basic earnings per share for the three months ended September 27, 2025, were $0.20, compared to $1.88 for the same period in 2024, indicating a substantial decrease[38] Sales Performance - Specialty product net sales reached $525 million, an increase of $6 million or 1.2% year-over-year, driven by higher volumes in engineered wood products and outdoor living[6] - Structural product net sales decreased by $4.9 million or 2.1% year-over-year to $223 million, primarily due to volume and price declines in lumber and panels[7] - Net sales for the three fiscal months ended September 27, 2025, were $748,870,000, slightly up from $747,288,000 in the same period last year, reflecting a marginal growth of 0.2%[38] - Total net sales for the three fiscal months ended September 27, 2025, were $748,870,000, slightly up from $747,288,000 in the prior year[44] - Specialty products net sales for the three fiscal months ended September 27, 2025, were $525,455,000, compared to $519,000,000 in the same period last year[44] Cash Flow and Liquidity - The company generated free cash flow of $53 million during the quarter, with net cash provided by operating activities at $59 million[13] - Free cash flow is defined as net cash provided by operating activities less total capital expenditures, which is a key measure for assessing financial performance[35] - Cash flows from operating activities for the three fiscal months ended September 27, 2025, were $58,616,000, compared to $61,766,000 for the same period in 2024[42] - The company reported a net cash used in investing activities of $5,927,000 for the three fiscal months ended September 27, 2025[42] - The company’s cash and cash equivalents at the end of the period were $429,360,000, down from $526,281,000 at the end of the previous year[42] - The company has available cash and cash equivalents of $429.4 million as of September 27, 2025, down from $505.6 million as of December 28, 2024[51] Debt and Liabilities - As of September 27, 2025, total debt was $380 million, with available liquidity of $777 million, including $429 million in cash[15] - As of September 27, 2025, total debt and finance leases amount to $621.8 million, an increase from $592.5 million as of December 28, 2024[51] - Net debt (non-GAAP) stands at $192.4 million as of September 27, 2025, compared to $86.9 million as of September 28, 2024[51] - The net leverage ratio is 2.1x as of September 27, 2025, compared to 0.7x as of September 28, 2024[51] - Total liabilities as of September 27, 2025, were $958,946,000, compared to $931,276,000 as of December 28, 2024, indicating an increase in financial obligations[40] Equity and Assets - Total current assets as of September 27, 2025, were $1,098,924,000, a decrease from $1,133,988,000 as of December 28, 2024[40] - Total stockholders' equity decreased to $623,018,000 as of September 27, 2025, down from $646,441,000 as of December 28, 2024, reflecting a decline in shareholder value[40] Acquisition - BlueLinx announced the acquisition of Disdero Lumber Company for approximately $96 million, expected to be immediately accretive to earnings[16] Future Outlook - The outlook for Q4 2025 indicates specialty product gross margin in the range of 17% to 18% and structural product gross margin in the range of 8% to 9%[17]