BLUELINX HOLDINGS Reports FY2022 Q4 Earnings Results on February 21, 2023

Earnings Overview

BLUELINX HOLDINGS ($NYSE:BXC) reported their fiscal year 2022 fourth quarter earnings results on February 21, 2023, with total revenue of USD 32.0 million – a decrease of 56.5% from the previous year – and net income of USD 847.8 million, a decrease of 12.9% year over year. The quarter ended on December 31, 2022.

Transcripts Simplified

Bluelinx Holdings reported strong financial results for the full year of 2022, with net sales of $4.5 billion, up 4% compared to the prior year. Gross profit was $833 million, an increase of 7%, and gross margin expanded 50 basis points to 18.7%. Net income was $296 million and diluted EPS was $31.51 per share. Adjusted EBITDA for the 12 months was $478 million, up 3% year-over-year. Fourth quarter performance was solid, despite a shift in market sentiment and a decline in volumes. Net sales were $848 million, down 13% compared to the prior year.

Specialty product sales represented 70% of net sales, and were down 8%. Structural product sales were down 23%. Gross profit was $151 million for the quarter, and total gross margin was 17.8%. Specialty gross margin was 21.1%, down 80 basis points compared to the prior year period. Through the first seven weeks of 2023, specialty products gross margin was in the range of 18-19% with daily sales volumes down approximately 15% compared to the prior year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Bluelinx Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Bluelinx Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Bluelinx Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Bluelinx Holdings are shown below. More…

Stock Price

On Tuesday, February 21, 2023, BLUELINX HOLDINGS (BXC) reported its fourth quarter earnings for the FY2022. The company opened its stock at $89.1 but closed the day at $83.2, a drop of 8.0% from its prior closing price of $90.5. This decrease could have been due to the company’s financial performance as well as broader market conditions. BLUELINX HOLDINGS offers a comprehensive selection of decking, millwork, plywood and other building materials to its customers.

This was primarily driven by higher demand for its products. Overall, the company’s profitability was better than expected and investors were pleased with the performance. With its cost-effective supply chain and inventory management, the company seems well-positioned to deliver value to its customers and shareholders in the future. Live Quote…

Analysis

GoodWhale has done a deep dive into the financials of BLUELINX HOLDINGS and our analysis shows that it is classified as a ‘rhino’ according to our Star Chart. This type of company is one that has achieved moderate revenue or earnings growth. Based on our evaluation, BLUELINX HOLDINGS is strong in terms of its asset and growth, medium in profitability, and weak in terms of dividend. This makes the company an attractive option for investors who are looking for the potential of capital appreciation over time. Despite its weaknesses, BLUELINX HOLDINGS has a high health score of 7/10 which indicates that it is capable to safely ride out any crisis without the risk of bankruptcy. This is due to its solid cashflows and manageable debt levels. More…

Peers

There is fierce competition between BlueLinx Holdings Inc and its competitors: Beacon Roofing Supply Inc, Noda Corp, Daiken Co Ltd. All four companies are vying for market share in the highly competitive roofing supplies industry.

However, its competitors are also well-established and are constantly innovating to try to gain market share.

– Beacon Roofing Supply Inc ($NASDAQ:BECN)

Beacon Roofing Supply, Inc. is engaged in the distribution of residential and commercial roofing materials in the United States and Canada. The Company’s segments include Residential Roofing, Commercial Roofing, Exterior and Interior Building Products, and Roofing Components and Metal Shingles. It offers a portfolio of products, including asphalt shingles, metal roofing, slate roofing, tile roofing, commercial roofing, siding, windows, decking, waterproofing and air barriers. The Company’s subsidiaries include Beacon Roofing Supply Canada Inc., and BRS International Holdings Limited.

– Noda Corp ($TSE:7879)

Noda Corp is a Japanese company that manufactures and sells electronic products. It has a market cap of 20.7B as of 2022 and a ROE of 17.42%. The company’s products include electronic components, semiconductors, and other electronic products.

– Daiken Co Ltd ($TSE:5900)

Daiken Co Ltd is a Japanese company that manufactures and sells electric power equipment, including transformers, circuit breakers, and cables. The company has a market cap of 3.67B as of 2022 and a Return on Equity of 2.29%. Daiken Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.

Summary

Investing in BLUELINX HOLDINGS is an uncertain endeavor, as their earnings report for the fiscal year ending on December 31, 2022 revealed a significant decrease in both total revenue and net income year-over-year. This news pushed the stock price downward on the same day. Investors should proceed with caution in considering whether to invest in BLUELINX HOLDINGS at this time.