BlueLinx Announces Fourth Quarter and Full Year 2024 Results

BlueLinx Holdings Inc., a leading U.S. wholesale distributor of building products, reported financial results for the three months and twelve months ended December 28, 2024.

Fourth Quarter 2024 Highlights

• Net sales of $711 million
• Gross profit of $113 million, gross margin of 15.9% and specialty gross margin of 18.4%
• Net income of $5.3 million, or $0.62 diluted earnings per share
• Adjusted net income of $5.2 million, or $0.61 adjusted diluted earnings per share
• Adjusted EBITDA of $22 million, or 3.0% of net sales
• Operating cash flow of $19 million
• Completion of $15 million in share repurchases

Full Year 2024 Highlights

• Net sales of $3.0 billion
• Gross profit of $489 million, gross margin of 16.6%, and specialty gross margin of 19.4%
• Net income of $53 million, or $6.19 diluted earnings per share
• Adjusted net income of $55 million, or $6.44 adjusted diluted earnings per share
• Adjusted EBITDA of $131 million, or 4.4% of net sales
• Operating cash flow of $85 million and free cash flow of $45 million
• Available liquidity of $852 million, including $506 million cash/cash equivalents on hand
• Completion of $45 million in share repurchases

“Our fourth quarter and full year 2024 were highlighted by strong margin performance, clearly showing our ability to generate solid results due to the strength of our customer service proposition and the continued focus on our strategy,” said Shyam Reddy, President, and CEO of BlueLinx. “Specialty products continued its strong performance with gross margins of 18.4% and solid volume growth during the quarter. Structural products also performed well with gross margins of 10.8%, largely due to improved lumber pricing during the quarter. With strong liquidity and minimal net debt, we remain well-positioned to execute on our long-term sales growth strategy and to return capital to shareholders. During the fourth quarter, we returned $15 million to shareholders, bringing the total to $45 million in share repurchases for the year.”

Fourth Quarter 2024 Financial Performance

In the fourth quarter of 2024, net sales were $711 million, a decrease of $1.9 million, or 0.3% when compared to the fourth quarter of 2023. Gross profit was $113 million, a decrease of $5.1 million, or 4.3%, year-over-year, and gross margin was 15.9%, down 70 basis points from the prior year period.

Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, decreased $3.0 million, or 0.6%, to $484 million. This decline was primarily due to price deflation driven by external market conditions, partially offset by volume gains. Gross profit from specialty product sales was $88.7 million, a decrease of $5.7 million, or 6.1%, compared to the fourth quarter last year. Gross margin was 18.4% compared to 19.4% in the prior year period.

Net sales of structural products, which includes products such as lumber, plywood, oriented strand board, rebar, and remesh, increased $1.1 million, or 0.5%, to $227 million in the fourth quarter of fiscal 2024 and gross profit from sales of structural products increased $0.6 million from $24.0 million in the prior year period. The increases in structural sales and gross profit were due primarily to improved pricing for framing lumber, partially offset by slight volume decreases. Compared to 4Q 2023, average composite pricing for lumber increased 12% while panel prices decreased 6%. Gross margin on structural product sales was 10.8% in the fourth quarter, up slightly from 10.6% in the prior year period.

Selling, general and administrative (“SG&A”) expenses were $92.6 million in the fourth quarter, an increase of $8.1 million from $84.5 million for the fourth quarter of 2023. The year-over-year increase in the dollar amount of SG&A was due primarily to increased payroll and payroll-related expenses, partially driven by increased logistics expenses due to higher volumes, and expenses associated with our digital transformation.

Net income for the current quarter was $5.3 million, or $0.62 per diluted share, versus a net loss of $18.1 million, or $(2.08) per diluted share, in the prior year period. The 2023 period reflects a one-time charge of $30.4 million related to the settlement of our defined benefit pension plan. Adjusted Net Income for the fourth quarter was $5.2 million, or $0.61 per diluted share.

Adjusted EBITDA was $21.5 million, or 3.0% of net sales, compared to $36.5 million, or 5.1% of net sales in the prior period.

Net cash generated from operating activities was $18.7 million in the fourth quarter of 2024 compared to $75.9 million in the prior year period. The decrease in cash generated from operating activities was driven primarily by changes in working capital. Additionally, net income in the fourth quarter 2023 included the non-cash reclassification from accumulated other comprehensive loss of $30.4 million, affecting the net income comparison between the quarters. We allocated $20.3 million to cash capital investments related to our distribution facilities, fleet, and technology during the current quarter.

Full Year 2024 Financial Performance

For the fiscal year ended December 28, 2024, net sales were $3.0 billion, a decrease of $183.8 million, or 5.9% year-over-year. Gross profit was $489.1 million, a decrease of $37.9 million, or 7.2% year-over-year, and gross margin was 16.6%, down 20 basis points. The decreases in sales and gross profit reflect declines of 6.3% and 4.8% in specialty product net sales and structural product net sales, respectively. Full year 2024 included a net benefit of $12.7 million for import duty-related items from prior periods. Excluding this benefit, gross margin would have been 16.1%. The duty items were related to changes in retroactive rates for anti-dumping duties and to classification adjustments for certain goods imported by the Company.

Net sales of specialty products decreased $138.3 million, or 6.3% to $2.0 billion in the fiscal year ended December 28, 2024. The overall decrease in specialty products net sales was due to price deflation, partially offset by volume increases. Gross profit from specialty product sales was $397.6 million in the current year, a decrease of $23.2 million, or 5.5%, year-over-year and gross margin in the current year was 19.4% compared to 19.3% in the prior year. The current year included the aforementioned net benefit of $12.7 million for import duty-related items from prior periods. Excluding this benefit, gross margin for specialty products would have been 18.8% for the current year.

Net sales of structural products decreased $45.5 million, or 4.8%, to $906.6 million in the fiscal year ended December 28, 2024, and gross profit from sales of structural products decreased $14.7 million to $91.5 million. The decreases in structural products net sales and gross profit were due primarily to market-based price deflation and lower volume for lumber, partially offset by volume gains for panels. Compared to fiscal year 2023, average composite pricing for lumber in the U.S. decreased 2.5% while panel prices increased 1.2%. Gross margin on structural product sales was 10.1% compared to 11.2% for the prior year.

SG&A expenses were $365.5 million during fiscal year 2024, up $9.7 million, or 2.7%, compared to the prior year. In the current year, higher technology expenses associated with our digital transformation and legal expenses associated with duty-related matters were partially offset by lower variable compensation expense and lower share-based compensation expense.

Net income was $53.1 million, or $6.19 per diluted share, versus $48.5 million, or $5.39 per diluted share in the prior year. Fiscal 2023 reflects the aforementioned one-time charge of $30.4 million related to the settlement of our legacy defined benefit pension plan. Adjusted net income was $55.2 million and adjusted earnings diluted per share was $6.44 in the current year, compared to $102.6 million or adjusted diluted earnings per share of $11.41 in the prior year.

Adjusted EBITDA was $131.4 million, or 4.4% of net sales, compared to $182.8 million, or 5.8% of net sales in 2023.

Net cash generated from operating activities was $85.2 million for fiscal year 2024 compared to $306.3 million in fiscal year 2023. This decrease in cash provided by operating activities during fiscal 2024 was primarily a result of changes in net cash provided by working capital, particularly for inventory. Additionally, net income in fiscal 2023 included the non-cash reclassification from accumulated other comprehensive loss of $30.4 million, affecting the net income comparison between the fiscal years. Free cash flow was $45.1 million in fiscal 2024 compared to $278.8 million in the prior year.

Capital Allocation and Financial Position

During the full year 2024, we invested $40.1 million to improve and upgrade our distribution facilities, technology infrastructure, and our fleet, compared to $27.5 million in 2023. Since the beginning of fiscal 2022, we used a total of $154 million to buy back and retire approximately 1.8 million shares of our common stock. Currently, we have $46.5 million remaining under our $100 million share repurchase authorization that was approved by our Board of Directors in October 2023. We plan to continue to be opportunistic in the market when repurchasing shares.

As of December 28, 2024, total debt outstanding was $593 million, including $300 million of senior secured notes that mature in 2029 and $293 million of finance leases. Available liquidity was $852 million which included an undrawn revolving credit facility that had $346 million of availability plus cash and cash equivalents of $506 million. Net Debt was $(156) million, which consisted of total debt and finance lease obligations, less real property finance lease obligations of $243 million, and less cash and cash equivalents of $506 million, resulting in a net leverage ratio of (1.2x) using a trailing twelve-month Adjusted EBITDA of $131 million.

First Quarter 2025 Outlook

Through the first seven weeks of the first quarter of fiscal 2025, specialty product gross margin was in the range of 18% to 19%, and structural product gross margin was in the range of 8% to 9%. Average daily sales volumes were down approximately 12% versus the fourth quarter of 2024 due primarily to severe weather conditions which impacted a significant portion of our distribution footprint in January.

For full results click here.

About BlueLinx

BlueLinx (NYSE: BXC) is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products. With a strong market position, broad geographic coverage footprint servicing 50 states, and the strength of a locally focused sales force, we distribute a comprehensive range of products to our customers which include national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers and industrial manufacturers. BlueLinx provides a wide range of value-added services and solutions to our customers and suppliers, and we operate our business through a broad network of distribution centers. To learn more about BlueLinx, please visit www.bluelinxco.com .

Contact:

Tom Morabito – Investor Relations – investor@bluelinxco.com – (470) 394-0099

Source: BlueLinx Holdings, Inc.