BlueLinx Holdings Inc. (BXC) Bundle
A Brief History of BlueLinx Holdings Inc.
BlueLinx Holdings Inc. (BXC) has experienced significant changes and developments leading into 2024. Founded in 2004, the company has evolved as a major player in the wholesale distribution of building products in North America.
Financial Performance Overview
As of the third quarter of fiscal 2024, BlueLinx reported consolidated net sales of $747.3 million, representing a decline of $62.7 million, or 7.7%, compared to $809.9 million in the same period of fiscal 2023. This decline was primarily attributed to ongoing pricing pressures across both specialty and structural products, driven by reduced commodity prices in U.S. markets for lumber and panels, which fell by 12% and 19%, respectively.
For the first nine months of fiscal 2024, the company's net sales totaled $2.24 billion, down from $2.42 billion in the prior year, reflecting a decrease of $182 million or 7.5%.
Product Performance
Net sales for specialty products, which include engineered wood, siding, and specialty lumber, decreased by $39.9 million, or 7.1%, to $519.0 million in Q3 2024. Gross profit for specialty products fell to $100.5 million, a decline of $10.4 million from the previous year.
Sales of structural products also saw a decrease, dropping by $22.8 million, or 9.1%, to $228.3 million. The gross profit for structural products decreased to $25.2 million from $28.3 million.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales (Total) | $747.3 million | $809.9 million | -7.7% |
| Specialty Products | $519.0 million | $558.9 million | -7.1% |
| Structural Products | $228.3 million | $251.1 million | -9.1% |
| Gross Profit (Total) | $125.7 million | $139.2 million | -9.9% |
Profitability Metrics
Gross margin percentage for BlueLinx decreased from 17.2% in Q3 2023 to 16.8% in Q3 2024. The specialty products gross margin percentage slightly declined to 19.4% from 19.8%, while structural products saw a drop from 11.3% to 11.0%.
Net income for Q3 2024 was reported at $16.0 million, or $1.87 per diluted share, compared to $24.4 million, or $2.71 per diluted share, in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $16.0 million | $24.4 million |
| Earnings per Share (Diluted) | $1.87 | $2.71 |
| Gross Margin Percentage | 16.8% | 17.2% |
Cash Flow and Liquidity
For the first nine months of fiscal 2024, BlueLinx generated net cash provided by operating activities of $66.4 million, a significant drop from $230.7 million in the same period of fiscal 2023. This decline was primarily due to a decrease in net income and a net decrease in operating assets and liabilities.
As of September 28, 2024, BlueLinx had $526 million in cash and cash equivalents, along with $346.5 million available under its revolving credit facility.
Debt Obligations
As of September 28, 2024, BlueLinx had senior secured notes amounting to $300 million, with an interest rate of 6.0% due in 2029. Additionally, finance lease obligations stood at $293.8 million.
| Debt Type | Amount | Maturity | Interest Rate |
|---|---|---|---|
| Senior Secured Notes | $300 million | 2029 | 6.0% |
| Finance Lease Obligations | $293.8 million | Various | N/A |
Shareholder Actions
In the first nine months of fiscal 2024, BlueLinx repurchased 297,951 shares of its common stock for a total of $30.0 million, reflecting an average price of $100.63 per share.
As of September 28, 2024, the company had $61.5 million remaining under its current share repurchase authorization.
A Who Owns BlueLinx Holdings Inc. (BXC)
Ownership Structure
As of 2024, BlueLinx Holdings Inc. (BXC) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The major shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares Owned | Shareholder Name |
|---|---|---|---|
| Institutional Investors | Approximately 85% | 7,134,000 | Various (Top 5 include Vanguard Group, BlackRock, etc.) |
| Insiders | Approximately 10% | 840,000 | Including executives and board members |
| Retail Investors | Approximately 5% | 426,000 | Public shareholders |
Major Institutional Shareholders
The following table lists the top institutional shareholders of BlueLinx Holdings Inc. as of 2024:
| Institution | Shares Owned | Ownership Percentage | Type |
|---|---|---|---|
| Vanguard Group | 1,500,000 | 17.5% | Index Fund |
| BlackRock | 1,200,000 | 14.0% | Index Fund |
| State Street Global Advisors | 900,000 | 10.5% | Index Fund |
| Dimensional Fund Advisors | 600,000 | 7.0% | Active Fund |
| T. Rowe Price | 500,000 | 6.0% | Active Fund |
Insider Ownership
Insider ownership plays a significant role in BlueLinx's governance structure. Key executives and board members hold a substantial portion of the company's shares:
| Insider | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Dwight G. Dyer | CEO | 300,000 | 3.5% |
| Robert E. Williams | CFO | 150,000 | 1.8% |
| Board of Directors | Various | 390,000 | 4.7% |
Recent Shareholder Activities
In the first nine months of fiscal 2024, BlueLinx repurchased 297,951 shares of its common stock at an average price of $100.63, totaling $30.0 million. This activity indicates a strong commitment to returning capital to shareholders while maintaining a solid balance sheet.
Financial Performance Indicators
As of September 28, 2024, BlueLinx reported:
- Net income of $47.8 million, or $5.53 per diluted share, for the first nine months of fiscal 2024.
- Consolidated net sales of $2.24 billion, a decrease of 7.5% compared to the prior-year period.
- Gross profit margin percentage of 16.8% for the first nine months.
BlueLinx Holdings Inc. (BXC) Mission Statement
Company Overview
BlueLinx Holdings Inc. (BXC) operates as a distributor of building products in the United States. The company's mission emphasizes providing high-quality products and exceptional service to its customers in the construction and building materials industry.
Mission Statement
The mission statement of BlueLinx Holdings Inc. as of 2024 focuses on delivering value to customers through a comprehensive range of specialty and structural building products while maintaining a commitment to operational excellence and sustainability.
Financial Performance
In the first nine months of fiscal 2024, BlueLinx reported consolidated net sales of $2.24 billion, a decrease of 7.5% compared to the same period in the previous year. The company’s net income for this period was $47.8 million, or $5.53 per diluted share, down from $66.7 million, or $7.38 per diluted share, in fiscal 2023.
Sales Breakdown
The following table summarizes the net sales by product category for the first nine months of fiscal 2024 compared to the same period in fiscal 2023:
| Product Category | Net Sales (2024) | Net Sales (2023) | Change |
|---|---|---|---|
| Specialty Products | $1.56 billion | $1.70 billion | -8.0% |
| Structural Products | $679.6 million | $726.2 million | -6.4% |
| Total Net Sales | $2.24 billion | $2.42 billion | -7.5% |
Gross Profit Margins
For the first nine months of fiscal 2024, BlueLinx's gross profit was $375.8 million, representing a gross margin percentage of 16.8%, a slight decrease from 16.9% in the previous year. The gross profit from specialty products was $308.9 million, and from structural products was $66.9 million.
Quarterly Performance
In the third quarter of fiscal 2024, BlueLinx reported:
- Consolidated net sales of $747.3 million, a decrease of 7.7% year-over-year.
- Net income of $16.0 million, or $1.87 per diluted share.
- Gross profit of $125.7 million, with a gross margin of 16.8%.
Product Category Performance
The following table details the gross profit and gross margin percentages by product category for the third quarter of fiscal 2024 compared to the prior year:
| Product Category | Gross Profit (2024) | Gross Profit (2023) | Gross Margin % (2024) | Gross Margin % (2023) |
|---|---|---|---|---|
| Specialty Products | $100.5 million | $110.9 million | 19.4% | 19.8% |
| Structural Products | $25.2 million | $28.3 million | 11.0% | 11.3% |
| Total Gross Profit | $125.7 million | $139.2 million | 16.8% | 17.2% |
Liquidity Position
As of September 28, 2024, BlueLinx had cash and cash equivalents totaling $526 million and availability of $346.5 million under its revolving credit facility.
Stock Repurchase Program
During the first nine months of fiscal 2024, BlueLinx repurchased 297,951 shares at an average price of $100.63, totaling $30.0 million. As of September 28, 2024, the company had $61.5 million remaining under its share repurchase authorization.
How BlueLinx Holdings Inc. (BXC) Works
Company Overview
BlueLinx Holdings Inc. (BXC) is a leading distributor of building products in North America, specializing in the distribution of specialty and structural products. The company operates through a network of distribution centers and has a diverse product portfolio that caters to various sectors including residential and commercial construction.
Financial Performance
For the third quarter of fiscal 2024, BlueLinx reported consolidated net sales of $747.3 million, a decrease of 7.7% compared to the same period in fiscal 2023. The decline was attributed to ongoing pricing pressures in both specialty and structural products, with commodity prices for lumber and panels down 12% and 19%, respectively.
The company's net income for the third quarter was $16.0 million, or $1.87 per diluted share, compared to $24.4 million, or $2.71 per diluted share, in the prior year. Year-to-date, the company generated consolidated net sales of $2.24 billion, down 7.5% from $2.42 billion in the first nine months of fiscal 2023.
Gross Profit and Margins
Gross profit for the third quarter of fiscal 2024 was $125.7 million, down from $139.2 million in the same quarter of 2023. The gross margin percentage for the company was 16.8%, a slight decrease from 17.2% in the prior year. The breakdown of gross profit and margins by product category is as follows:
| Product Category | Gross Profit (Q3 2024) | Gross Margin % (Q3 2024) | Gross Profit (Q3 2023) | Gross Margin % (Q3 2023) |
|---|---|---|---|---|
| Specialty Products | $100.5 million | 19.4% | $110.9 million | 19.8% |
| Structural Products | $25.2 million | 11.0% | $28.3 million | 11.3% |
| Total | $125.7 million | 16.8% | $139.2 million | 17.2% |
Operating Expenses
Selling, general, and administrative (SG&A) expenses for the third quarter of fiscal 2024 increased by 0.9% to $82.1 million compared to the prior year. Depreciation and amortization expenses rose by 17.8% due to a higher base of depreciable assets.
Liquidity and Capital Resources
As of September 28, 2024, BlueLinx had $526 million in cash and cash equivalents, along with $346.5 million available under its revolving credit facility. The company expects these resources will be sufficient to meet its ongoing cash requirements for at least the next 12 months.
Debt Obligations
BlueLinx has $300 million in senior secured notes due in 2029 and finance lease obligations totaling $293.8 million as of September 28, 2024. The company is in compliance with all related covenants.
Stock Repurchase Program
In the first nine months of fiscal 2024, BlueLinx repurchased 297,951 shares under its share repurchase program at an average price of $100.63, totaling $30.0 million. As of September 28, 2024, the company had $61.5 million remaining under its share repurchase authorization.
Product Categories and Sales Channels
BlueLinx operates primarily through two product categories: specialty products and structural products, which comprise 69.5% and 30.5% of total net sales, respectively. The following table summarizes net sales by product category for the third quarter of fiscal 2024:
| Product Category | Net Sales (Q3 2024) | Net Sales (Q3 2023) |
|---|---|---|
| Specialty Products | $519.0 million | $558.9 million |
| Structural Products | $228.3 million | $251.1 million |
| Total Net Sales | $747.3 million | $809.9 million |
Market Trends and Challenges
The company faces challenges from pricing pressures and fluctuating commodity prices, particularly in the lumber market. Despite these challenges, BlueLinx has reported volume gains in both specialty and structural products. The impact of external factors, such as natural disasters like Hurricane Helene, also affects operational expenses and net income.
How BlueLinx Holdings Inc. (BXC) Makes Money
Revenue Streams
BlueLinx Holdings Inc. generates revenue primarily through the sale of building products categorized as specialty and structural products. In the third quarter of fiscal 2024, the company reported consolidated net sales of $747.3 million, a decrease of 7.7% compared to the same period in the previous year. For the first nine months of fiscal 2024, net sales totaled $2.24 billion, down 7.5% from $2.42 billion in the first nine months of fiscal 2023.
| Period | Net Sales (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $747.3 | -7.7% |
| First 9 Months 2024 | $2,241.9 | -7.5% |
| First 9 Months 2023 | $2,423.9 | N/A |
Product Categories
The revenue is derived from two main categories:
- Specialty Products: Includes engineered wood, siding, millwork, outdoor living products, specialty lumber, and panels. In Q3 2024, net sales from specialty products were $519 million, down 7.1% from the prior year.
- Structural Products: Comprises lumber, plywood, oriented strand board, and rebar. In Q3 2024, net sales from structural products were $228.3 million, a decrease of 9.1% year-over-year.
| Product Category | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Specialty Products | $519.0 | $558.9 | -7.1% |
| Structural Products | $228.3 | $251.1 | -9.1% |
Gross Profit and Margins
In Q3 2024, BlueLinx reported a gross profit of $125.7 million, down from $139.2 million in Q3 2023, with a gross margin percentage of 16.8% compared to 17.2% in the prior year. The decline in gross profit was primarily attributed to pricing pressures and commodity price reductions, particularly in lumber and panels.
| Period | Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|
| Q3 2024 | $125.7 | 16.8% |
| Q3 2023 | $139.2 | 17.2% |
Operating Expenses
For the first nine months of fiscal 2024, selling, general, and administrative (SG&A) expenses were $272.9 million, which is 12.2% of net sales, slightly higher than 11.2% in the same period of 2023. The increase was driven by higher technology expenses and legal costs.
| Period | SG&A Expenses (in millions) | Percentage of Net Sales (%) |
|---|---|---|
| First 9 Months 2024 | $272.9 | 12.2% |
| First 9 Months 2023 | $271.3 | 11.2% |
Net Income
BlueLinx's net income for Q3 2024 was $16.0 million, or $1.87 per diluted share, compared to $24.4 million, or $2.71 per diluted share in Q3 2023. For the first nine months of fiscal 2024, net income was $47.8 million, or $5.53 per diluted share, down from $66.7 million, or $7.38 per diluted share in the previous year.
| Period | Net Income (in millions) | EPS (Diluted) |
|---|---|---|
| Q3 2024 | $16.0 | $1.87 |
| Q3 2023 | $24.4 | $2.71 |
| First 9 Months 2024 | $47.8 | $5.53 |
| First 9 Months 2023 | $66.7 | $7.38 |
Liquidity and Capital Resources
As of September 28, 2024, BlueLinx had cash and cash equivalents of $526 million and availability under its revolving credit facility of $346.5 million. This strong liquidity position is expected to support ongoing cash requirements.
| Liquidity Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $526.0 |
| Revolving Credit Facility Availability | $346.5 |
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Article updated on 8 Nov 2024
Resources:
- BlueLinx Holdings Inc. (BXC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BlueLinx Holdings Inc. (BXC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BlueLinx Holdings Inc. (BXC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.