BlueLinx Holdings Inc. is a leading U.S. wholesale distributor of building products, announced results for the 2Q 2022. In the 2Q 2022, net sales were $1.2 billion, a decrease of $69 million, or 5% year-over-year. Gross profit was $201 million, a decrease of $50 million, or 20%, year-over-year, and gross margin was 16.3%, down 290 basis points year-over-year. The net decrease in sales and gross profit reflects 17% growth in specialty product sales offset by a 29% decrease in structural product sales due primarily to significant declines in average prices for wood-based commodities as compared to the prior year.
2Q 2022 net income was $71 million, or $7.48 per diluted share, versus $113 million, or $11.61 per diluted share, in the prior year period. The $7.48 per diluted share included a $0.33 per share benefit as a result of lower shares outstanding due to the Company’s share repurchases during the first half of 2022.
Adjusted EBITDA was $112 million, or 9.1% of net sales, as compared to $166 million, or 12.7% of net sales in Q2 2021.
“In the 2Q we delivered our third highest quarter ever in three key financial metrics with diluted EPS of $7.48, adjusted EBITDA of $112 million and operating cash of $101 million and continued to accelerate growth in our higher value specialty products, consistent with the long-term strategy we detailed at our investor day in June. We also maintained a strong balance sheet with net leverage at 0.9x and $451 million of available liquidity, an all-time high. We accomplished this in light of a dynamic macro-economic environment which saw steep declines in wood-based commodity prices during the period,” said Dwight Gibson, President and CEO of BlueLinx.
BlueLinx is a leading U.S. wholesale distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products.