BlueLinx Holdings Inc. (NYSE: BXC), a leading U.S. wholesale distributor of building products, today reported financial results for the three months and twelve months ended December 30, 2023.

FOURTH QUARTER 2023 HIGHLIGHTS

(all comparisons are versus the prior year period unless otherwise noted)

• Net sales of $713 million

• Gross profit of $118 million, gross margin of 16.6% and specialty gross margin of 19.4%

• Net loss of $18 million, or $2.08 earnings per share, primarily due to the exit of a defined benefit pension plan resulting in a one-time $30.4 million charge ($6.9 million cash) plus related income taxes

• Adjusted net income of $26 million, or $2.94 adjusted diluted earnings per share

• Adjusted EBITDA of $36 million, or 5.1% of net sales

• Operating cash generated of $76 million and free cash flow of $67 million

• Completion of $12 million in share repurchases under our share repurchase programs

FULL YEAR 2023 HIGHLIGHTS

(all comparisons are versus the prior year period unless otherwise noted)

• Net sales of $3.1 billion

• Gross profit of $527 million, gross margin of 16.8%, and specialty gross margin of 19.3%

• Net income of $49 million, or $5.39 diluted earnings per share

• Adjusted net income of $103 million, or $11.41 adjusted diluted earnings per share

• Adjusted EBITDA of $183 million, or 5.8% of net sales

• Operating cash generated of $306 million and free cash flow of $279 million

• Available liquidity of $868 million, including $522 million cash/cash equivalents on hand

• Net debt of $64 million and net leverage ratio of 0.3x

• Completion of $42 million in share repurchases, or 6% of our shares outstanding

“Our fourth quarter and full year 2023 were highlighted by strong margin performance and significant free cash flow, clearly demonstrating our ability to generate solid results and manage our working capital effectively, despite the macroeconomic and housing market uncertainties the industry continues to experience,” said Shyam Reddy, President, and CEO of BlueLinx. “Specialty products continued its strong margin performance and accounted for 70% of net sales and 80% of gross profit for the year. Structural products also performed well and continue to complement our specialty products business. With strong liquidity and minimal net debt, we are well-positioned to execute on our long-term sales growth strategy and to return capital to shareholders.”

“We were pleased with our fourth quarter specialty gross margins of 19.4% which were higher than our expected 18% to 19% range, as well as our structural gross margins which were 10.6%, and above our 9% to 10% expectation,” said Andy Wamser, Chief Financial Officer of BlueLinx. “During the fourth quarter, we returned $12 million to shareholders, bringing the total to $42 million in share repurchases under our share repurchase programs for the year, or 6% of our shares outstanding.”