BlueLinx Holdings Inc., a leading U.S. wholesale distributor of building products, reported financial results for the three months ended March 30, 2024.
In the Q1 2024, net sales were $726 million, a decrease of $72 million, or 9.0% when compared to the Q1 2023. Gross profit was $128 million, a decrease of $6 million, or 4.4%, year-over-year, and gross margin was 17.6%, up 90 basis points from the same period last year.
Net income was $17 million, or $2.00 per diluted share, versus $18 million, or $1.94 per diluted share, in the prior year period. Adjusted net income was $19 million, or $2.14 per diluted share compared to $23 million, or $2.53 per diluted share in the Q1 of last year.
Adjusted EBITDA was $39 million, or 5.3% of net sales, for the Q1 2024, compared to $47 million, or 5.9% of net sales in the Q1 2023, which includes the net benefit of duty-related items. Not including these duty-related items, Adjusted EBITDA was $32 million, or 4.4% of net sales in the Q1.
Net cash used in operating activities was $31 million in the Q1 2024 compared to $89 million of net cash provided by operating activities in the prior year period, and free cash flow was ($37) million. The decrease in cash generated during the first quarter was driven by seasonal changes in working capital. The net source of cash generated in the prior year period was driven by significant inventory reduction efforts.
“We are off to a solid start to 2024, despite ongoing deflationary pressures associated with our specialty business and January weather conditions that adversely impacted volumes. We are pleased with the results for the quarter as volumes recovered and we maintained strong margins in specialty and structural products,” said Shyam Reddy, President, and CEO of BlueLinx.
“Our Adjusted EBITDA of $39 million came in better than expected due to the higher margins in both specialty and structural products, as well as the net positive impact of import duty items of approximately $7 million related to products sold during prior periods. We were pleased with our results and our financial position remains strong with a net leverage ratio of only (0.8x) and available liquidity of $828 million,” said Andy Wamser, CFO of BlueLinx.
BlueLinx 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.
