BlueLinx (BXC)2024-04-30 20:21Financial 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].