BuildDirect Reports First Quarter 2024 Financial Results

Delivered adjusted EBITDA of $0.504 million for Q1 2024; the Company has delivered 9 consecutive quarters of positive adjusted EBITDA

Delivered revenue and gross profit of $15.6 million and $6.1 million or 39.1%, respectively, in Q1 2024 vs $17.8 million and $7.0 million or 39.2%, respectively in Q1 2023; this represents a reduction in revenue and gross profit of $2.2 million and $.9 million or 10 bps, respectively, year-over-year

Working capital decreased $0.5 million to $2.3 million at March 31, 2024 from $2.8 million at December 31, 2023; although working capital increased $1.0 million from $1.3 million at March 31, 2023

BuildDirect.com Technologies Inc. (“BuildDirect” or the “Company”) a leading omnichannel building material retailer, announced its financial results for the First Quarter Ended March 31, 2024 (“Q1 2024”).

“During Q1 2024, the Company reported an adjusted EBITDA of $0.504 million and continued to improve its profitability,” said Shawn Wilson, CEO of BuildDirect. “We continue to prioritize disciplined capital allocation, improving our balance sheet, exploring opportunities to expand the number of brick-and-mortar Pro-Centers, and accelerating the growth of our e-commerce business,” continued Shawn.

Shawn added, “the Company currently has five Pro Centers located in Michigan which generate approximately $53 million in revenue on an annualized basis (combined). As previously announced, the Company also launched a Pro Center in Richmond, British Columbia within the last year. Currently, we have Pro Centers in only two of the top 50 markets in North America, highlighting significant opportunities for growth. By establishing a robust physical and digital presence, we aim to increase our share of the over $70 billion North American flooring market. Our Pro Centers operate in tandem with our e-commerce business, importing products from global manufacturers to sell locally and fulfill online orders.

We’re currently working through strategies to progress our Pro Center growth programs through building organic locations and ongoing exploration of strategic acquisition opportunities.”

First Quarter 2024 Financial Highlights

Revenue and Gross Profit per Segment

The Company reports results in two segments: (1) BuildDirect and (2) Acquired Retailers. We measure each reportable operating segment’s performance based on Revenue. The BuildDirect segment comprises Revenue through our BuildDirect E-commerce and brick and mortar operations. The Acquired Retailers segment comprises Revenue of flooring building materials through our acquired brick and mortar locations and include installation services. The BuildDirect and Acquired Retailers segments contributed 25% and 75% of the Company’s Revenue respectively in Q1 2024 compared to 30% and 70% of the Company’s Revenue, respectively, in Q1 2023.

Overall, revenue in Q1 2024 was $15,589,852 compared to $17,846,299 in Q1 2023 for a decrease of $2,256,447 or 12%.

Revenue in Q1 2024 for the BuildDirect segment was $3,849,986 compared to $5,307,376 for the same period in the prior year for a decrease of $1,457,390 or 27.5%. The decrease can be attributed to the Company’s strategy to substantially scale down E-Commerce operations to facilitate re-platforming initiatives.

Revenue in Q1 2024 for Acquired Retailers was $11,739,866 compared to $12,538,923 for the same period in the prior year for a decrease of $799,057 or 6%. The decrease can be attributed to a lower demand resulting from unseasonably cold weather and project delays.

Gross Profit in Q1 2024 was $6,090,951 compared to $6,992,441 in Q1 2023 for a decrease of $901,490 or 13%. The decrease can be attributed to the lower Revenue noted earlier for BuildDirect and Acquired Retailers, although Gross Profit as a percentage of Revenue remained consistent at 39%. Likewise, Gross Margin as a percentage of Revenue for BuildDirect and Acquired Retailers remained consistent at 52% and 34%, respectively.

Subsequent events to Q1 2024

• On April 12, 2024, the Company confirmed that it will hold its 2023 Annual General and Special Meeting of Shareholders on June 20, 2024; and
• The Company’s Board adopted a fixed omnibus plan (the “Omnibus Plan“) as of May 9, 2023, which was adopted by shareholders of the Company on June 8, 2023. The Board has approved the amendment of the Omnibus Plan as detailed below (the “Plan Amendment“) pursuant to and in accordance with Section 13.1 of the Omnibus Plan, which amendments are to be effective June 1, 2024. The Board determined it desirable to amend the terms of the Omnibus Plan such that the minimum Exercise Price of any Options to be issued under the Omnibus Plan be lowered from the Fair Market Value to the Discounted Market Price, as defined in the policies of the Toronto Stock Exchange Venture Exchange (the “TSX-V”), on the Date of Grant subject to and in accordance with TSX-V Policy 4.4 provided, however, that the minimum Exercise Price in respect to Options to be issued to U.S. Taxpayers shall remain the Fair Market Value on the Date of Grant (capitalized terms as defined and/or described in the Omnibus Plan). The TSX-V has confirmed that it has no objections to the Plan Amendment.

Actual results may differ materially from the Company’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below. The Company’s unaudited condensed interim consolidated financial statements and accompanying notes and the Management’s Discussion and Analysis for the three months ended March 31, 2024 and March 31, 2024 are available on the Company’s website at www.BuildDirect.com and on the Company’s SEDAR+ profile available at https://www.sedarplus.ca.

For full results click here.

About BuildDirect

BuildDirect (TSXV: BILD “BuildDirect” or the “Company”) is a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect’s growth trajectory, strong product offering, and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry. For more information, visit www.BuildDirect.com.

Source: BuildDirect.com Technologies Inc.