BlueLinx (BXC) Drops 2.3%

BlueLinx Holdings Inc. is a leading wholesale distributor of residential and commercial building products in the United States, with a broad portfolio of both branded and private-label stock keeping units across two principal product categories: specialty products and structural products. The company operates from 66 warehouse and office facilities, serving 75 percent of the highest growth metropolitan statistical areas in the U.S. BlueLinx distributes a comprehensive range of products from over 750 suppliers to customers including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers.

In fiscal 2023, BlueLinx reported approximately 70 percent of net sales from specialty products and 30 percent from structural products, compared to 65 percent and 35 percent in fiscal 2022, and 59 percent and 41 percent in fiscal 2021, respectively. The company's strategic initiatives include migrating sales mix toward higher-margin specialty product categories, fostering a performance-driven culture committed to business excellence and profitable growth, maintaining a disciplined capital structure, and pursuing strategic investments that increase the value of the company.

In terms of distribution channels, approximately 83 percent of gross sales were from warehouse and reload sales in fiscal 2023, compared to 82 percent in fiscal 2022 and 81 percent in fiscal 2021. Direct sales accounted for approximately 17 percent of gross sales in fiscal 2023, compared to 18 percent in fiscal 2022 and 19 percent in fiscal 2021.

The company employs approximately 2,000 associates, with less than one percent employed on a part-time basis. Approximately 28 percent of associates are represented by various local labor unions with terms and conditions of employment governed by Collective Bargaining Agreements. BlueLinx has a high-performance culture and is committed to providing a safe and healthy working environment for its associates, with ongoing safety programs and investments in safety equipment and technology.

BlueLinx is exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors common in the building products distribution industry, such as weather conditions and other seasonal factors. The company also acknowledges potential risks and uncertainties related to climate change, as weather-related events can impact its operations and result in supply chain disruptions and increased material costs.

In fiscal 2023, BlueLinx allocated $69.7 million of capital towards transactions including business improvement and share repurchases. The company also acquired Vandermeer Forest Products, Inc., aligning with its specialty products strategy and establishing a growth platform in the Pacific Northwest.

Today, the company's shares have moved -2.3% on the market, and are now trading at a price of $114.43. For more information, read the company's full 10-K submission here.

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