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Oct 01, 2022
BlueLinx Q3 2022 Earnings Report
Delivered strong results driven by sales growth and margin expansion.
Key Takeaways
BlueLinx Holdings Inc. reported a net sales increase of 9% to $1.1 billion, with specialty product sales growing 13%. Gross profit increased 24% to $189 million, and net income rose to $60 million, resulting in diluted earnings per share of $6.38, a 35% increase. The company generated $143 million in operating cash and $130 million in free cash flow, reducing net leverage to 0.7x and increasing available liquidity to $576 million.
Net sales increased by 9% year-over-year to $1.1 billion.
Specialty product sales grew by 13% year-over-year, accounting for 68% of total sales.
Diluted earnings per share increased by 35% year-over-year to $6.38.
Operating cash flow reached a record level of $143 million.
Revenue by Segment
Forward Guidance
Excluding Vandermeer acquisition, specialty product gross margin was approximately 20% through the first four weeks of Q4 2022, with volume down modestly from Q3 2022. Structural product sales volumes were consistent with Q3 2022, with gross margin in a range of 9% to 10%.
Positive Outlook
- Specialty product gross margin was approximately 20% through the first four weeks of Q4 2022.
- Structural product sales volumes were consistent with Q3 2022.
- Gross margin for structural products is expected to be in the range of 9% to 10%.
- Company will continue to evaluate market pricing for wood-based commodities and adjust accordingly.
- Vandermeer Forest Products acquisition provides a platform for growth in the Pacific Northwest.
Challenges Ahead
- Specialty product volume was down modestly from Q3 2022 reflecting historical seasonality.
- Current macro-economic environment is challenging.
- Market pricing for wood-based commodities requires continuous evaluation and adjustment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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