BlueLinx (BXC) 10-Q 2 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Apr. 01, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	001-32383
Entity Registrant Name	BlueLinx Holdings Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0627356
Entity Address, Address Line One	1950 Spectrum Circle, Suite 300
Entity Address, City or Town	Marietta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30067
City Area Code	770
Local Phone Number	953-7000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	BXC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,088,972
Entity Central Index Key	0001301787
Current Fiscal Year Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Statement [Abstract]
Net sales	$ 797,904	$ 1,302,305
Cost of sales	664,365	1,011,254
Gross profit	133,539	291,051
Operating expenses (income):
Selling, general, and administrative	91,174	91,289
Depreciation and amortization	7,718	6,746
Amortization of deferred gains on real estate	(984)	(984)
Other operating expenses	3,116	838
Total operating expenses	101,024	97,889
Operating income	32,515	193,162
Non-operating expenses:
Interest expense, net	7,687	11,293
Other expense, net	594	1,138
Income before provision for income taxes	24,234	180,731
Provision for income taxes	6,422	47,322
Net income	$ 17,812	$ 133,409
Basic income per share (in dollars per share)	$ 1.96	$ 13.72
Diluted income per share (in dollars per share)	$ 1.94	$ 13.19
Comprehensive income:
Net income	$ 17,812	$ 133,409
Other comprehensive income:
Amortization of unrecognized pension gain, net of tax	239	156
Other	(11)	20
Total other comprehensive income	228	176
Comprehensive income	$ 18,040	$ 133,585

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 376,234	$ 298,943
Receivables, less allowances of $3,733 and $3,449, respectively	298,888	251,555
Inventories, net	409,324	484,313
Other current assets	29,295	42,121
Total current assets	1,113,741	1,076,932
Property and equipment, at cost	365,667	360,869
Accumulated depreciation	(157,807)	(155,260)
Property and equipment, net	207,860	205,609
Operating lease right-of-use assets	43,548	45,717
Goodwill	55,372	55,372
Intangible assets, net	33,879	34,989
Deferred tax assets	55,956	56,169
Other non-current assets	15,374	15,254
Total assets	1,525,730	1,490,042
Current liabilities:
Accounts payable	177,046	151,626
Accrued compensation	13,115	22,556
Finance lease liabilities - short-term	5,087	7,089
Operating lease liabilities - short-term	6,756	7,432
Real estate deferred gains - short-term	3,935	3,935
Pension benefit obligation - short-term	1,795	1,521
Other current liabilities	20,619	16,518
Total current liabilities	228,353	210,677
Non-current liabilities:
Long-term debt, net of debt issuance costs of $3,854 and $4,057, respectively	292,753	292,424
Finance lease liabilities - long-term	265,677	265,986
Operating lease liabilities - long-term	38,142	40,011
Real estate deferred gains - long-term	69,452	70,403
Other non-current liabilities	20,604	20,512
Total liabilities	914,981	900,013
Commitments and Contingencies
STOCKHOLDERS’ EQUITY:
Common Stock, $0.01 par value, 20,000,000 shares authorized, 9,088,972 and 9,048,603 outstanding on April 1, 2023 and December 31, 2022, respectively	91	90
Additional paid-in capital	203,427	200,748
Accumulated other comprehensive loss	(31,184)	(31,412)
Accumulated stockholders’ equity	438,415	420,603
Total stockholders’ equity	610,749	590,029
Total liabilities and stockholders’ equity	$ 1,525,730	$ 1,490,042

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 3,733	$ 3,449
Debt discount, noncurrent	$ 3,854	$ 4,057
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares outstanding (in shares)	9,088,972	9,048,603

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Equity
Beginning balance (in shares) at Jan. 01, 2022		9,726
Beginning balance at Jan. 01, 2022	$ 363,249	$ 97	$ 268,085	$ (29,360)	$ 124,427
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	133,409				133,409
Impact of pension plan, net of tax	156			156
Vesting of restricted stock units (in shares)		11
Compensation related to share-based grants	2,162		2,162
Repurchase of shares to satisfy employee tax withholdings (in shares)	(393)		(393)
Repurchase of shares to satisfy employee tax withholdings		(5)
Obligation for repurchase of shares to satisfy employee tax withholdings	0
Common stock repurchase and retirement (in shares)		(81)
Common stock repurchase and retirement	(6,427)	$ (1)	(6,426)
Other	20			20
Ending balance (in shares) at Apr. 02, 2022		9,651
Ending balance at Apr. 02, 2022	492,176	$ 96	263,428	(29,184)	257,836
Beginning balance (in shares) at Dec. 31, 2022		9,049
Beginning balance at Dec. 31, 2022	590,029	$ 90	200,748	(31,412)	420,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,812				17,812
Impact of pension plan, net of tax	239			239
Vesting of restricted stock units (in shares)		67
Vesting of restricted stock units	0	$ 1	(1)
Compensation related to share-based grants	4,569		4,569
Repurchase of shares to satisfy employee tax withholdings (in shares)	(570)		(570)
Repurchase of shares to satisfy employee tax withholdings		(8)
Obligation for repurchase of shares to satisfy employee tax withholdings (in shares)		(19)
Obligation for repurchase of shares to satisfy employee tax withholdings	(1,319)		(1,319)
Other	(11)			(11)
Ending balance (in shares) at Apr. 01, 2023		9,089
Ending balance at Apr. 01, 2023	$ 610,749	$ 91	$ 203,427	$ (31,184)	$ 438,415

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Cash flows from operating activities:
Net income	$ 17,812	$ 133,409
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization	7,718	6,746
Amortization of debt discount and issuance costs	329	263
Deferred income tax	213	(1,994)
Amortization of deferred gains from real estate	(984)	(984)
Share-based compensation	4,569	2,162
Changes in operating assets and liabilities:
Accounts receivable	(47,333)	(157,419)
Inventories	74,989	(74,097)
Accounts payable	25,420	50,072
Taxes payable	0	47,057
Pension contributions	0	(221)
Other current assets	5,953	(601)
Other assets and liabilities	279	(2,156)
Net cash provided by operating activities	88,965	2,237
Cash flows from investing activities:
Proceeds from sale of assets	37	49
Property and equipment investments	(9,008)	(2,509)
Net cash used in investing activities	(8,971)	(2,460)
Cash flows from financing activities:
Common stock repurchase and retirement	0	(6,427)
Repurchase of shares to satisfy employee tax withholdings	(570)	(393)
Principal payments on finance lease liabilities	(2,133)	(3,722)
Net cash used in financing activities	(2,703)	(10,542)
Net change in cash and cash equivalents	77,291	(10,765)
Cash and cash equivalents at beginning of period	298,943	85,203
Cash and cash equivalents at end of period	376,234	74,438
Supplemental cash flow information:
Interest paid during the period	6,190	6,387
Taxes paid during the period	0	2,350
Non-cash transactions:
Obligation for repurchase of shares to satisfy employee tax withholdings	$ 1,319	$ 0

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). We derived the condensed consolidated balance sheet at April 1, 2023, from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Fiscal 2022 Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”) on February 21, 2023. In the opinion of our management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of operations and comprehensive income for the three months ended April 1, 2023 and April 2, 2022, our balance sheets at April 1, 2023 and December 31, 2022, our statements of stockholders’ equity for the three months ended April 1, 2023 and April 2, 2022, and our statements of cash flows for the three months ended April 1, 2023 and April 2, 2022. We have condensed or omitted certain notes and other information from the interim condensed consolidated financial statements presented in this report. Therefore, these condensed consolidated interim financial statements should be read in conjunction with the Fiscal 2022 Form 10-K. The results for the three months ended April 1, 2023 are not necessarily indicative of results that may be expected for the full year ending December 30, 2023, or any other interim period. We operate on a 5-4-4 fiscal calendar. Our fiscal year ends on the Saturday closest to December 31 of that fiscal year and may comprise 53 weeks in certain years. Our 2023 fiscal year contains 52 weeks and ends on December 30, 2023. Fiscal 2022 contained 52 weeks and ended on December 31, 2022. Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. Reclassification of Prior Period Presentation For the quarter ended April 2, 2022, we have reclassified certain items within the presentation of our statement of cash flows to align with our statement of cash flows presentation for the quarter ended April 1, 2023. Our reclassifications are limited to the operating activities section and include presenting pension contributions, which were previously presented within the change of other assets and liabilities, as an individual item within changes in operating assets and liabilities. These reclassifications, we believe, provide an enhanced level of transparency with regards to the presentation of our statement of cash flows. Recently Adopted Accounting Standards Credit Impairment Losses. In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This ASU sets forth a current expected credit loss (“CECL”) model which requires the measurement of all expected credit losses for financial instruments or other assets (e.g., trade receivables), held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model, is applicable to the measurement of credit losses on financial assets measured at amortized cost, and applies to some off-balance sheet credit exposures. The standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. The Company adopted this standard on a modified retrospective basis in the first quarter of 2022 and the implementation did not have a material impact to the Company’s condensed consolidated financial statements. Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The standard provides temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of the publication of certain tenors of the London Inter-bank Offered Rate (“LIBOR”) on December 31, 2021, with complete elimination of the publication of the LIBOR by June 30, 2023. The amendments in this ASU are elective and apply to all entities that have contracts referencing the LIBOR. The Company’s revolving credit agreement, as further discussed in Note 6, Long-Term Debt , to these condensed consolidated financial statements, currently references the LIBOR for determining interest payable on current and future borrowings and includes provisions for the use of alternative rates if the LIBOR is unavailable. The guidance in this ASU provides a practical expedient which simplifies accounting analyses under current U.S. GAAP for contract modifications if the change is directly related to a change from the LIBOR to a new interest rate index. The Company adopted this standard prospectively in the first quarter of 2022. The implementation did not have a material impact to the Company’s condensed consolidated financial statements or to any key terms of our revolving credit agreement other than the discontinuation of the LIBOR.

Business Combinations

Business Combinations	3 Months Ended
	Apr. 01, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combinations	Business Combinations On October 3, 2022, we acquired all the outstanding stock of Vandermeer Forest Products, Inc. (“Vandermeer”), a premier wholesale distributor of building products, for preliminary total consideration of $69.3 million. The acquisition has been accounted for as a business combination using the acquisition method. The assets acquired and liabilities assumed were recognized at their acquisition date fair values. The acquisition accounting, including fair value estimations, is subject to change as we finalize all assessments of the assets and liabilities that were acquired on the acquisition date. The primary area of the preliminary acquisition accounting that is not yet finalized relates to settlement of the holdback liability. As of the date of the acquisition, the holdback liability was $6.3 million. During the quarter-ended April 1, 2023, $0.3 million of the holdback liability was returned to the Company for adjustments related to final cash and working capital balances, reducing preliminary total consideration from $69.3 million to $69.0 million. The remaining holdback liability of $6.0 million is scheduled to be settled approximately 18 months after the acquisition date.

Inventories

Inventories	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Our inventories consist almost entirely of finished goods inventory, with an immaterial amount of work-in-process inventory. The cost of all inventories is determined by the moving average cost method. We have included all material charges directly incurred in bringing inventory to its existing condition and location. We evaluate our inventory value at the end of each quarter to ensure that inventory, when viewed by category, is carried at the lower of cost or net realizable value, which also considers items that may be considered damaged, excess, and obsolete inventory. As of April 1, 2023, we assessed the carrying value of our inventory and determined it was presented at the lower of cost or net realizable value and that a reserve was not necessary. As of December 31, 2022, we recorded a lower of cost or net realizable value reserve of $2.6 million as a result of the decrease in the value of our structural lumber and panel inventory related to the decline in wood-based commodity prices as of the end of the period.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets In connection with our past merger and acquisition activity, we acquired certain intangible assets. As of April 1, 2023, our intangible assets consist of goodwill and other intangible assets including customer relationships, noncompete agreements, and trade names. Goodwill Goodwill is the excess of the cost of an acquired entity over the fair value of tangible and intangible assets (including customer relationships, noncompete agreements, and trade names) acquired, and liabilities assumed, under acquisition accounting for business combinations. As of April 1, 2023, goodwill was $55.4 million. Goodwill is not subject to amortization but must be tested for impairment at least annually. This test requires us to assign goodwill to a reporting unit and to determine if the fair value of the reporting unit’s goodwill is less than its carrying amount. We evaluate goodwill for impairment during the fourth quarter of each fiscal year. In addition, we will evaluate the carrying value for impairment between annual impairment tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Such events and indicators may include, without limitation, significant declines in the industries in which our products are used, significant changes in capital market conditions, and significant changes in our market capitalization. No such indicators were present during the first quarter of fiscal 2023. Our one reporting unit has a fair value that exceeds its carrying value as of April 1, 2023. The following table provides information related to the carrying amount of our goodwill: Total Carrying Amount (In thousands) Balance at December 31, 2022 $ 55,372 Acquisitions — Balance at April 1, 2023 $ 55,372 Definite-Lived Intangible Assets The gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets at April 1, 2023 were as follows: Intangible Asset Weighted Average Remaining Useful Lives (Years) Gross Carrying Amounts Accumulated Amortization (1) Net Carrying Amounts (In thousands) Customer relationships 10 $ 48,500 $ (16,084) $ 32,416 Noncompete agreements 5 8,954 (8,324) 630 Trade names 3 7,826 (6,993) 833 Total $ 65,280 $ (31,401) $ 33,879 (1) Intangible assets except customer relationships are amortized on straight line basis. Certain of our customer relationships are amortized on a double declining balance method and certain others are amortized on a straight line basis. Amortization Expense Amortization expense for our definite-lived intangible assets was $1.1 million and $1.1 million for the three-month periods ended April 1, 2023 and April 2, 2022, respectively. Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2023 and the next five fiscal years is as follows: Fiscal Year Estimated Amortization (In thousands) 2023 $ 3,113 2024 3,930 2025 3,765 2026 3,471 2027 3,340 2028 3,340

Revenue Recognition

Revenue Recognition	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue RecognitionWe recognize revenue when the following criteria are met: (1) Contract with the customer has been identified; (2) Performance obligations in the contract have been identified; (3) Transaction price has been determined; (4) Transaction price has been allocated to the performance obligations; and (5) When (or as) performance obligations are satisfied. Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days. In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remain with us. All revenues recognized are net of trade allowances (i.e., rebates), cash discounts, and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for each of the reported periods. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The following table presents our revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues. Three Months Ended Product type April 1, 2023 April 2, 2022 (In thousands) Specialty products $ 567,838 $ 767,907 Structural products 230,066 534,398 Total net sales $ 797,904 $ 1,302,305 The following table presents our revenues disaggregated by sales channel. Warehouse sales are delivered from our warehouses. Reload sales are similar to warehouse sales but are shipped from warehouses, most of which are operated by third-parties, where we store owned products to enhance our operating efficiencies. This channel is employed primarily to service strategic customers that would be less economical to service from our warehouses, and to distribute large volumes of imported products from port facilities. Direct sales are shipped from the manufacturer to the customer without our taking physical possession of the inventory and, as a result, typically generate lower margins than our warehouse and reload distribution channels. This distribution channel requires the lowest amount of committed capital and fixed costs. Sales and usage-based taxes are excluded from revenues. Three Months Ended Sales channel April 1, 2023 April 2, 2022 (In thousands) Warehouse and reload $ 686,632 $ 1,077,946 Direct 127,095 246,652 Customer discounts and rebates (15,823) (22,293) Total net sales $ 797,904 $ 1,302,305

Long-Term Debt

Long-Term Debt	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt As of April 1, 2023 and December 31, 2022, long-term debt consisted of the following: April 1, 2023 December 31, 2022 (In thousands) Senior secured notes (1) $ 300,000 $ 300,000 Revolving credit facility (2) — — Finance lease obligations (3) 270,764 273,075 570,764 573,075 Unamortized debt issuance costs (3,854) (4,057) Unamortized bond discount costs (3,393) (3,519) 563,517 565,499 Less: current maturities of long-term debt 5,087 7,089 Long-term debt, net of current maturities $ 558,430 $ 558,410 (1) As of April 1, 2023 and December 31, 2022, our long-term debt was comprised of $300.0 million of senior secured notes issued in October 2021. These notes are presented under the long-term debt caption of our condensed consolidated balance sheets at $292.8 million and $292.4 million at April 1, 2023 and December 31, 2022, respectively. This presentation is net of their discount of $3.4 million and $3.5 million and the combined carrying value of our debt issuance costs of $3.9 million and $4.1 million at April 1, 2023 and December 31, 2022, respectively. Our senior secured notes are presented in this table at their face value. (2) The average effective interest rate for our revolving credit facility was zero percent for the quarters ended April 1, 2023 and April 2, 2022. (3) Refer to Note 9, Leases , for interest rates associated with finance lease obligations. Senior Secured Notes In October 2021, we completed a private offering of $300.0 million of our six percent senior secured notes due 2029 (the “2029 Notes”), and in connection therewith we entered into an indenture (the “Indenture”) with the guarantors party thereto and Truist Bank, as trustee and collateral agent. The 2029 Notes were issued to investors at 98.625 percent of their principal amount and will mature on November 15, 2029. The majority of net proceeds from the offering of the 2029 Notes were used to repay borrowings under our revolving credit facility, as defined below. As of April 1, 2023 and December 31, 2022, the fair value of our 2029 Notes was approximately $276.8 million and $283.6 million, respectively, which are designated as Level 2 in the fair value hierarchy. Our valuation technique is based primarily on observable market prices in less active markets. Revolving Credit Facility Our Revolving Credit Facility, entered into with Wells Fargo Bank, National Association, as administrative agent (“the Agent”), and certain other financial institutions party thereto, provides for a senior secured asset-based revolving loan and letter of credit facility of up to $350.0 million. Our obligations under the Revolving Credit Facility are secured by a security interest in substantially all of our and our subsidiaries’ assets (other than real property), including inventories, accounts receivable, and proceeds from those items. Borrowings under our Revolving Credit Facility bear interest at a rate per annum equal to (i) LIBOR plus a margin ranging from 1.25 percent to 1.75 percent, with the margin determined based upon average excess availability for the immediately preceding fiscal quarter for loans based on LIBOR, or (ii) the Agent’s base rate plus a margin ranging from 0.25 percent to 0.75 percent, with the margin based upon average excess availability for the immediately preceding fiscal quarter for loans based on the base rate. Our Revolving Credit Facility includes available interest rate options based on LIBOR, which will be discontinued as an available rate option after June 30, 2023. Under the terms of the facility, LIBOR will be replaced with the Secured Overnight Financing Rate (“SOFR”) with respect to the applicable variable rate interest options thereunder, with effect on or before June 30, 2023. Borrowings under our Revolving Credit Facility are subject to availability under the Borrowing Base (as that term is defined in the revolving credit agreement). The Borrowers are required to repay revolving loans thereunder to the extent that such revolving loans exceed the Borrowing Base then in effect. Our Revolving Credit Facility may be prepaid in whole or in part from time to time without penalty or premium, but including all breakage costs incurred by any lender thereunder. As of April 1, 2023, we had zero outstanding borrowings and excess availability, including cash in qualified accounts, of $722.7 million under our Revolving Credit Facility. As of December 31, 2022, we had zero outstanding borrowings and excess availability, including cash in qualified accounts, of $645.4 million under our Revolving Credit Facility. Available borrowing capacity under our Revolving Credit Facility was $346.5 million on April 1, 2023 and December 31, 2022. Our average effective interest rate under the facility was zero percent for the quarters ended April 1, 2023 and April 2, 2022. Our Revolving Credit Facility contains certain financial and other covenants, and our right to borrow under the Revolving Credit Facility is conditioned upon, among other things, our compliance with these covenants. We were in compliance with all covenants under our Revolving Credit Facility as of April 1, 2023. Finance Lease Obligations Our finance lease liabilities consist of leases related to equipment and vehicles, and real estate, with the majority of those finance leases related to real estate. For more information on our finance lease obligations, refer to Note 9, Leases .

Net Periodic Pension Cost (Bene

Net Periodic Pension Cost (Benefit)	3 Months Ended
	Apr. 01, 2023
Retirement Benefits [Abstract]
Net Periodic Pension Cost (Benefit)	Net Periodic Pension Cost (Benefit) The following table shows the components of our net periodic pension cost (benefit): Three Months Ended Pension-related items April 1, 2023 April 2, 2022 (In thousands) Service cost (1) $ — $ — Interest cost on projected benefit obligation 1,104 606 Expected return on plan assets (812) (1,177) Amortization of unrecognized gain 302 209 Net periodic pension cost (benefit) $ 594 $ (362) (1) Service cost is not a part of our net periodic pension benefit as our pension plan is frozen for all participants. The net periodic pension cost (benefit) is included in other expense, net in our condensed consolidated statement of operations and comprehensive income. During the three months ended April 1, 2023, we continued our previously announced plan to terminate the BlueLinx Corporation Hourly Retirement Plan (the “plan”) and transfer the management and delivery of continuing benefits associated with the plan to a highly rated and qualified insurance company with pension termination experience. The process for terminating a pension plan involves several regulatory steps and approvals, and typically takes 12 to 18 months to complete. We estimate the plan termination will be completed during fiscal 2023.

Stock Compensation

Stock Compensation	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Stock Compensation	Stock Compensation During the three months ended April 1, 2023 and April 2, 2022, we incurred stock compensation expense of $4.6 million and $2.2 million, respectively. The increase in our stock compensation expense for the three-month period is primarily attributable to the acceleration of unrecognized compensation cost in conjunction with our announced leadership transition. Additionally, there was an increase in the number of awards granted, as well as the increase in the grant-date fair value, or the Company’s stock price, of awards currently vesting compared to the prior year. As of April 1, 2023, we have accrued $1.3 million for tax withholding obligations of our employees upon vesting of restricted stock unit awards. This has been presented as a non-cash transaction in our condensed consolidated statement of cash flows.

Leases

Leases	3 Months Ended
	Apr. 01, 2023
Leases [Abstract]
Leases	Leases We have operating and finance leases for certain of our distribution facilities, office space, land, mobile fleet, and equipment. Many of our leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at our election for specified periods of time. The majority of our leases have remaining lease terms of one We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or modification. Operating lease right-of use (“ROU”) assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease ROU assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheets. When a lease does not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We have also made the accounting policy election to not separate lease components from non-lease components related to our mobile fleet asset class. Finance Lease Liabilities Our finance lease liabilities consist of leases related to equipment and vehicles, and real estate. As noted in the table below, a majority of our finance leases, formally known as capital leases, relate to real estate. The following table presents our assets and liabilities related to our leases as of April 1, 2023 and December 31, 2022: Lease assets and liabilities April 1, 2023 December 31, 2022 (In thousands) Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 43,548 $ 45,717 Finance lease right-of-use assets (1) Property and equipment, net 130,659 132,748 Total lease right-of-use assets $ 174,207 $ 178,465 Liabilities Current portion Operating lease liabilities Operating lease liabilities - short term $ 6,756 $ 7,432 Finance lease liabilities Finance lease liabilities - short term 5,087 7,089 Non-current portion Operating lease liabilities Operating lease liabilities - long term 38,142 40,011 Finance lease liabilities Finance lease liabilities - long term 265,677 265,986 Total lease liabilities $ 315,662 $ 320,518 (1) Finance lease right-of-use assets are presented net of accumulated amortization of $88.9 million and $90.1 million as of April 1, 2023 and December 31, 2022, respectively. The components of lease expense were as follows: Three Months Ended Components of lease expense April 1, 2023 April 2, 2022 (In thousands) Operating lease cost: Operating lease cost $ 2,918 $ 2,517 Sublease income (578) (652) Total operating lease costs $ 2,340 $ 1,865 Finance lease cost: Amortization of right-of-use assets $ 2,089 $ 3,710 Interest on lease liabilities 6,044 6,160 Total finance lease costs $ 8,133 $ 9,870 Supplemental cash flow information related to leases was as follows: Three Months Ended Cash flow information April 1, 2023 April 2, 2022 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,458 $ 2,528 Operating cash flows from finance leases 6,044 6,160 Financing cash flows from finance leases $ 2,133 $ 3,722 Non-cash supplemental cash flow information related to leases was as follows: Three Months Ended Non-cash information April 1, 2023 April 2, 2022 (In thousands) Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases $ — $ — Supplemental balance sheet information related to leases was as follows: Balance sheet information April 1, 2023 December 31, 2022 (In thousands) Finance leases Property and equipment $ 219,572 $ 222,839 Accumulated depreciation (88,913) (90,091) Property and equipment, net $ 130,659 $ 132,748 Weighted Average Remaining Lease Term (in years) Operating leases 9.28 9.21 Finance leases 13.78 13.97 Weighted Average Discount Rate Operating leases 8.61 % 8.54 % Finance leases 8.89 % 8.87 % The major categories of our finance lease liabilities as of April 1, 2023 and December 31, 2022 are as follows: Category April 1, 2023 December 31, 2022 (In thousands) Equipment and vehicles $ 27,162 $ 29,300 Real estate 243,602 243,775 Total finance leases $ 270,764 $ 273,075 Under the short-term lease exception provided within ASC 842, we do not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted finance and operating lease liabilities that have initial terms in excess of one year as of April 1, 2023. The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the condensed consolidated balance sheets, including options to extend lease terms that are reasonably certain of being exercised. Fiscal year Operating leases Finance leases (In thousands) 2023 $ 7,724 $ 21,147 2024 10,072 31,836 2025 8,756 28,988 2026 5,460 32,553 2027 4,217 26,970 Thereafter 31,519 524,869 Total lease payments $ 67,748 $ 666,363 Less: imputed interest (22,850) (395,599) Total $ 44,898 $ 270,764
Leases	Leases We have operating and finance leases for certain of our distribution facilities, office space, land, mobile fleet, and equipment. Many of our leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at our election for specified periods of time. The majority of our leases have remaining lease terms of one We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or modification. Operating lease right-of use (“ROU”) assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease ROU assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheets. When a lease does not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. We have also made the accounting policy election to not separate lease components from non-lease components related to our mobile fleet asset class. Finance Lease Liabilities Our finance lease liabilities consist of leases related to equipment and vehicles, and real estate. As noted in the table below, a majority of our finance leases, formally known as capital leases, relate to real estate. The following table presents our assets and liabilities related to our leases as of April 1, 2023 and December 31, 2022: Lease assets and liabilities April 1, 2023 December 31, 2022 (In thousands) Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 43,548 $ 45,717 Finance lease right-of-use assets (1) Property and equipment, net 130,659 132,748 Total lease right-of-use assets $ 174,207 $ 178,465 Liabilities Current portion Operating lease liabilities Operating lease liabilities - short term $ 6,756 $ 7,432 Finance lease liabilities Finance lease liabilities - short term 5,087 7,089 Non-current portion Operating lease liabilities Operating lease liabilities - long term 38,142 40,011 Finance lease liabilities Finance lease liabilities - long term 265,677 265,986 Total lease liabilities $ 315,662 $ 320,518 (1) Finance lease right-of-use assets are presented net of accumulated amortization of $88.9 million and $90.1 million as of April 1, 2023 and December 31, 2022, respectively. The components of lease expense were as follows: Three Months Ended Components of lease expense April 1, 2023 April 2, 2022 (In thousands) Operating lease cost: Operating lease cost $ 2,918 $ 2,517 Sublease income (578) (652) Total operating lease costs $ 2,340 $ 1,865 Finance lease cost: Amortization of right-of-use assets $ 2,089 $ 3,710 Interest on lease liabilities 6,044 6,160 Total finance lease costs $ 8,133 $ 9,870 Supplemental cash flow information related to leases was as follows: Three Months Ended Cash flow information April 1, 2023 April 2, 2022 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,458 $ 2,528 Operating cash flows from finance leases 6,044 6,160 Financing cash flows from finance leases $ 2,133 $ 3,722 Non-cash supplemental cash flow information related to leases was as follows: Three Months Ended Non-cash information April 1, 2023 April 2, 2022 (In thousands) Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases $ — $ — Supplemental balance sheet information related to leases was as follows: Balance sheet information April 1, 2023 December 31, 2022 (In thousands) Finance leases Property and equipment $ 219,572 $ 222,839 Accumulated depreciation (88,913) (90,091) Property and equipment, net $ 130,659 $ 132,748 Weighted Average Remaining Lease Term (in years) Operating leases 9.28 9.21 Finance leases 13.78 13.97 Weighted Average Discount Rate Operating leases 8.61 % 8.54 % Finance leases 8.89 % 8.87 % The major categories of our finance lease liabilities as of April 1, 2023 and December 31, 2022 are as follows: Category April 1, 2023 December 31, 2022 (In thousands) Equipment and vehicles $ 27,162 $ 29,300 Real estate 243,602 243,775 Total finance leases $ 270,764 $ 273,075 Under the short-term lease exception provided within ASC 842, we do not record a lease liability or right-of-use asset for any leases that have a lease term of 12 months or less at commencement. Below is a summary of undiscounted finance and operating lease liabilities that have initial terms in excess of one year as of April 1, 2023. The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the condensed consolidated balance sheets, including options to extend lease terms that are reasonably certain of being exercised. Fiscal year Operating leases Finance leases (In thousands) 2023 $ 7,724 $ 21,147 2024 10,072 31,836 2025 8,756 28,988 2026 5,460 32,553 2027 4,217 26,970 Thereafter 31,519 524,869 Total lease payments $ 67,748 $ 666,363 Less: imputed interest (22,850) (395,599) Total $ 44,898 $ 270,764

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Environmental and Legal Matters From time to time, we are involved in various proceedings incidental to our businesses, and we are subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which we operate. Although the ultimate outcome of these proceedings cannot be determined with certainty, based on presently available information management believes that adequate reserves have been established for probable losses with respect thereto and receivables have been recorded for expected receipts from settlements. Management further believes that, while the ultimate outcome of one or more of these matters could be material to our operating results in any given quarter, it will not have a materially adverse effect on our consolidated financial condition, our results of operations, or our cash flows. Collective Bargaining Agreements As of April 1, 2023, we employed approximately 2,100 associates and less than one percent of our associates are employed on a part-time basis. Approximately 16 percent of our associates are represented by various local labor unions with terms and conditions of employment governed by Collective Bargaining Agreements (“CBAs”). Four CBAs covering approximately four percent of our associates are up for renewal in the remainder of fiscal 2023, which we expect to renegotiate by the end of fiscal 2023.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Comprehensive income includes both net income and other comprehensive income. Other comprehensive income results from items deferred from recognition into our condensed consolidated statements of operations and comprehensive income. Accumulated other comprehensive loss is separately presented on our condensed consolidated balance sheets as part of stockholders’ equity. The changes in balances for each component of accumulated other comprehensive loss for the three months ended April 1, 2023, were as follows: Defined Other, Total Accumulated Other Comprehensive Loss December 31, 2022, beginning balance $ (32,675) $ 1,263 $ (31,412) Other comprehensive income, net of tax 239 (11) 228 April 1, 2023, ending balance, net of tax $ (32,436) $ 1,252 $ (31,184)

Income Taxes

Income Taxes	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate Our effective tax rate for the three months ended April 1, 2023 and April 2, 2022 was 26.5 percent and 26.2 percent, respectively. Our effective tax rates for the three months ended April 1, 2023 and April 2, 2022 were impacted by the permanent addback of certain nondeductible expenses, including meals and entertainment and executive compensation, slightly offset by a benefit from the vesting of restricted stock units, which occurred during each period. For additional information about our income taxes, see Note 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Income Per Share

Income Per Share	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Income Per Share	Income Per ShareWe calculate basic income per share by dividing net income by the weighted average number of common shares outstanding. We calculate diluted income per share using the treasury stock method, by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock units. The reconciliation of basic net income and diluted net income per common share for the three-month periods ended April 1, 2023 and April 2, 2022 were as follows: Three Months Ended April 1, 2023 April 2, 2022 (In thousands, except per share data) Net income $ 17,812 $ 133,409 Weighted-average shares outstanding - basic 9,059 9,720 Dilutive effect of share-based awards 98 393 Weighted-average shares outstanding - diluted 9,157 10,113 Basic income per share $ 1.96 $ 13.72 Diluted income per share $ 1.94 $ 13.19 Approximately 78,000 and 3,000 weighted-average share-based awards were excluded from the computation of earnings per share assuming dilution during the three months ended April 1, 2023 and April 2, 2022, respectively, as the awards would have been anti-dilutive for the periods presented.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BlueLinx Holdings Inc. and its wholly owned subsidiaries (the “Company”). We derived the condensed consolidated balance sheet at April 1, 2023, from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “Fiscal 2022 Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”) on February 21, 2023. In the opinion of our management, the condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of our statements of operations and comprehensive income for the three months ended April 1, 2023 and April 2, 2022, our balance sheets at April 1, 2023 and December 31, 2022, our statements of stockholders’ equity for the three months ended April 1, 2023 and April 2, 2022, and our statements of cash flows for the three months ended April 1, 2023 and April 2, 2022. We have condensed or omitted certain notes and other information from the interim condensed consolidated financial statements presented in this report. Therefore, these condensed consolidated interim financial statements should be read in conjunction with the Fiscal 2022 Form 10-K. The results for the three months ended April 1, 2023 are not necessarily indicative of results that may be expected for the full year ending December 30, 2023, or any other interim period. We operate on a 5-4-4 fiscal calendar. Our fiscal year ends on the Saturday closest to December 31 of that fiscal year and may comprise 53 weeks in certain years. Our 2023 fiscal year contains 52 weeks and ends on December 30, 2023. Fiscal 2022 contained 52 weeks and ended on December 31, 2022. Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position.
Reclassification of Prior Period Presentation	Reclassification of Prior Period Presentation For the quarter ended April 2, 2022, we have reclassified certain items within the presentation of our statement of cash flows to align with our statement of cash flows presentation for the quarter ended April 1, 2023. Our reclassifications are limited to the operating activities section and include presenting pension contributions, which were previously presented within the change of other assets and liabilities, as an individual item within changes in operating assets and liabilities. These reclassifications, we believe, provide an enhanced level of transparency with regards to the presentation of our statement of cash flows.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Credit Impairment Losses. In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” This ASU sets forth a current expected credit loss (“CECL”) model which requires the measurement of all expected credit losses for financial instruments or other assets (e.g., trade receivables), held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model, is applicable to the measurement of credit losses on financial assets measured at amortized cost, and applies to some off-balance sheet credit exposures. The standard also requires enhanced disclosures to help financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity's portfolio. The Company adopted this standard on a modified retrospective basis in the first quarter of 2022 and the implementation did not have a material impact to the Company’s condensed consolidated financial statements. Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The standard provides temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of the publication of certain tenors of the London Inter-bank Offered Rate (“LIBOR”) on December 31, 2021, with complete elimination of the publication of the LIBOR by June 30, 2023. The amendments in this ASU are elective and apply to all entities that have contracts referencing the LIBOR. The Company’s revolving credit agreement, as further discussed in Note 6, Long-Term Debt , to these condensed consolidated financial statements, currently references the LIBOR for determining interest payable on current and future borrowings and includes provisions for the use of alternative rates if the LIBOR is unavailable. The guidance in this ASU provides a practical expedient which simplifies accounting analyses under current U.S. GAAP for contract modifications if the change is directly related to a change from the LIBOR to a new interest rate index. The Company adopted this standard prospectively in the first quarter of 2022. The implementation did not have a material impact to the Company’s condensed consolidated financial statements or to any key terms of our revolving credit agreement other than the discontinuation of the LIBOR.
Revenue Recognition	We recognize revenue when the following criteria are met: (1) Contract with the customer has been identified; (2) Performance obligations in the contract have been identified; (3) Transaction price has been determined; (4) Transaction price has been allocated to the performance obligations; and (5) When (or as) performance obligations are satisfied. Contracts with our customers are generally in the form of standard terms and conditions of sale. From time to time, we may enter into specific contracts, which may affect delivery terms. Performance obligations in our contracts generally consist solely of delivery of goods. For all sales channel types, consisting of warehouse, direct, and reload sales, we typically satisfy our performance obligations upon shipment. Our customer payment terms are typical for our industry, and may vary by the type and location of our customer and the products or services offered. The term between invoicing and when payment is due is not deemed to be significant by us. For certain sales channels and/or products, our standard terms of payment may be as early as ten days. In addition, we provide inventory to certain customers through pre-arranged agreements on a consignment basis. Customer consigned inventory is maintained and stored by certain customers; however, ownership and risk of loss remain with us. All revenues recognized are net of trade allowances (i.e., rebates), cash discounts, and sales returns. Cash discounts and sales returns are estimated using historical experience. Trade allowances are based on the estimated obligations and historical experience. Adjustments to earnings resulting from revisions to estimates on discounts and returns have been insignificant for each of the reported periods. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration.
Earnings per Share	We calculate basic income per share by dividing net income by the weighted average number of common shares outstanding. We calculate diluted income per share using the treasury stock method, by dividing net income by the weighted average number of common shares outstanding plus the dilutive effect of outstanding share-based awards, including restricted stock units.

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table provides information related to the carrying amount of our goodwill: Total Carrying Amount (In thousands) Balance at December 31, 2022 $ 55,372 Acquisitions — Balance at April 1, 2023 $ 55,372
Schedule of Definite-Lived Intangible Assets	The gross carrying amounts, accumulated amortization, and net carrying amounts of our definite-lived intangible assets at April 1, 2023 were as follows: Intangible Asset Weighted Average Remaining Useful Lives (Years) Gross Carrying Amounts Accumulated Amortization (1) Net Carrying Amounts (In thousands) Customer relationships 10 $ 48,500 $ (16,084) $ 32,416 Noncompete agreements 5 8,954 (8,324) 630 Trade names 3 7,826 (6,993) 833 Total $ 65,280 $ (31,401) $ 33,879 (1) Intangible assets except customer relationships are amortized on straight line basis. Certain of our customer relationships are amortized on a double declining balance method and certain others are amortized on a straight line basis.
Schedule of Definite-Lived Intangible Asset Amortization	Estimated amortization expense for definite-lived intangible assets for the remaining portion of 2023 and the next five fiscal years is as follows: Fiscal Year Estimated Amortization (In thousands) 2023 $ 3,113 2024 3,930 2025 3,765 2026 3,471 2027 3,340 2028 3,340

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenues Disaggregated by Revenue Source and Sales Channel	The following table presents our revenues disaggregated by revenue source. Sales and usage-based taxes are excluded from revenues. Three Months Ended Product type April 1, 2023 April 2, 2022 (In thousands) Specialty products $ 567,838 $ 767,907 Structural products 230,066 534,398 Total net sales $ 797,904 $ 1,302,305 The following table presents our revenues disaggregated by sales channel. Warehouse sales are delivered from our warehouses. Reload sales are similar to warehouse sales but are shipped from warehouses, most of which are operated by third-parties, where we store owned products to enhance our operating efficiencies. This channel is employed primarily to service strategic customers that would be less economical to service from our warehouses, and to distribute large volumes of imported products from port facilities. Direct sales are shipped from the manufacturer to the customer without our taking physical possession of the inventory and, as a result, typically generate lower margins than our warehouse and reload distribution channels. This distribution channel requires the lowest amount of committed capital and fixed costs. Sales and usage-based taxes are excluded from revenues. Three Months Ended Sales channel April 1, 2023 April 2, 2022 (In thousands) Warehouse and reload $ 686,632 $ 1,077,946 Direct 127,095 246,652 Customer discounts and rebates (15,823) (22,293) Total net sales $ 797,904 $ 1,302,305

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	As of April 1, 2023 and December 31, 2022, long-term debt consisted of the following: April 1, 2023 December 31, 2022 (In thousands) Senior secured notes (1) $ 300,000 $ 300,000 Revolving credit facility (2) — — Finance lease obligations (3) 270,764 273,075 570,764 573,075 Unamortized debt issuance costs (3,854) (4,057) Unamortized bond discount costs (3,393) (3,519) 563,517 565,499 Less: current maturities of long-term debt 5,087 7,089 Long-term debt, net of current maturities $ 558,430 $ 558,410 (1) As of April 1, 2023 and December 31, 2022, our long-term debt was comprised of $300.0 million of senior secured notes issued in October 2021. These notes are presented under the long-term debt caption of our condensed consolidated balance sheets at $292.8 million and $292.4 million at April 1, 2023 and December 31, 2022, respectively. This presentation is net of their discount of $3.4 million and $3.5 million and the combined carrying value of our debt issuance costs of $3.9 million and $4.1 million at April 1, 2023 and December 31, 2022, respectively. Our senior secured notes are presented in this table at their face value. (2) The average effective interest rate for our revolving credit facility was zero percent for the quarters ended April 1, 2023 and April 2, 2022. (3) Refer to Note 9, Leases , for interest rates associated with finance lease obligations.

Net Periodic Pension Cost (Be_2

Net Periodic Pension Cost (Benefit) (Tables)	3 Months Ended
	Apr. 01, 2023
Retirement Benefits [Abstract]
Schedule of Net Periodic Pension Cost for Pension Plans	The following table shows the components of our net periodic pension cost (benefit): Three Months Ended Pension-related items April 1, 2023 April 2, 2022 (In thousands) Service cost (1) $ — $ — Interest cost on projected benefit obligation 1,104 606 Expected return on plan assets (812) (1,177) Amortization of unrecognized gain 302 209 Net periodic pension cost (benefit) $ 594 $ (362) (1) Service cost is not a part of our net periodic pension benefit as our pension plan is frozen for all participants.

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 01, 2023
Leases [Abstract]
Schedule of Supplemental Balance Sheet Information	The following table presents our assets and liabilities related to our leases as of April 1, 2023 and December 31, 2022: Lease assets and liabilities April 1, 2023 December 31, 2022 (In thousands) Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 43,548 $ 45,717 Finance lease right-of-use assets (1) Property and equipment, net 130,659 132,748 Total lease right-of-use assets $ 174,207 $ 178,465 Liabilities Current portion Operating lease liabilities Operating lease liabilities - short term $ 6,756 $ 7,432 Finance lease liabilities Finance lease liabilities - short term 5,087 7,089 Non-current portion Operating lease liabilities Operating lease liabilities - long term 38,142 40,011 Finance lease liabilities Finance lease liabilities - long term 265,677 265,986 Total lease liabilities $ 315,662 $ 320,518 (1) Finance lease right-of-use assets are presented net of accumulated amortization of $88.9 million and $90.1 million as of April 1, 2023 and December 31, 2022, respectively. Supplemental balance sheet information related to leases was as follows: Balance sheet information April 1, 2023 December 31, 2022 (In thousands) Finance leases Property and equipment $ 219,572 $ 222,839 Accumulated depreciation (88,913) (90,091) Property and equipment, net $ 130,659 $ 132,748 Weighted Average Remaining Lease Term (in years) Operating leases 9.28 9.21 Finance leases 13.78 13.97 Weighted Average Discount Rate Operating leases 8.61 % 8.54 % Finance leases 8.89 % 8.87 % The major categories of our finance lease liabilities as of April 1, 2023 and December 31, 2022 are as follows: Category April 1, 2023 December 31, 2022 (In thousands) Equipment and vehicles $ 27,162 $ 29,300 Real estate 243,602 243,775 Total finance leases $ 270,764 $ 273,075
Schedule of Lease Cost	The components of lease expense were as follows: Three Months Ended Components of lease expense April 1, 2023 April 2, 2022 (In thousands) Operating lease cost: Operating lease cost $ 2,918 $ 2,517 Sublease income (578) (652) Total operating lease costs $ 2,340 $ 1,865 Finance lease cost: Amortization of right-of-use assets $ 2,089 $ 3,710 Interest on lease liabilities 6,044 6,160 Total finance lease costs $ 8,133 $ 9,870 Supplemental cash flow information related to leases was as follows: Three Months Ended Cash flow information April 1, 2023 April 2, 2022 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,458 $ 2,528 Operating cash flows from finance leases 6,044 6,160 Financing cash flows from finance leases $ 2,133 $ 3,722 Non-cash supplemental cash flow information related to leases was as follows: Three Months Ended Non-cash information April 1, 2023 April 2, 2022 (In thousands) Right-of-use assets obtained in exchange for lease obligations Operating leases $ — $ — Finance leases $ — $ —
Schedule of Operating Lease Maturities	Fiscal year Operating leases Finance leases (In thousands) 2023 $ 7,724 $ 21,147 2024 10,072 31,836 2025 8,756 28,988 2026 5,460 32,553 2027 4,217 26,970 Thereafter 31,519 524,869 Total lease payments $ 67,748 $ 666,363 Less: imputed interest (22,850) (395,599) Total $ 44,898 $ 270,764
Schedule of Finance Lease Maturities	Fiscal year Operating leases Finance leases (In thousands) 2023 $ 7,724 $ 21,147 2024 10,072 31,836 2025 8,756 28,988 2026 5,460 32,553 2027 4,217 26,970 Thereafter 31,519 524,869 Total lease payments $ 67,748 $ 666,363 Less: imputed interest (22,850) (395,599) Total $ 44,898 $ 270,764

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Apr. 01, 2023
Equity [Abstract]
Schedule of Changes in Balances for Each Component of Accumulated Other Comprehensive Loss	The changes in balances for each component of accumulated other comprehensive loss for the three months ended April 1, 2023, were as follows: Defined Other, Total Accumulated Other Comprehensive Loss December 31, 2022, beginning balance $ (32,675) $ 1,263 $ (31,412) Other comprehensive income, net of tax 239 (11) 228 April 1, 2023, ending balance, net of tax $ (32,436) $ 1,252 $ (31,184)

Income Per Share (Tables)

Income Per Share (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Schedule of Income Per Share	The reconciliation of basic net income and diluted net income per common share for the three-month periods ended April 1, 2023 and April 2, 2022 were as follows: Three Months Ended April 1, 2023 April 2, 2022 (In thousands, except per share data) Net income $ 17,812 $ 133,409 Weighted-average shares outstanding - basic 9,059 9,720 Dilutive effect of share-based awards 98 393 Weighted-average shares outstanding - diluted 9,157 10,113 Basic income per share $ 1.96 $ 13.72 Diluted income per share $ 1.94 $ 13.19

Business Combinations - Narrati

Business Combinations - Narrative (Details) - Vandermeer Forest Products, Inc - USD ($) $ in Millions		3 Months Ended
	Oct. 03, 2022	Apr. 01, 2023
Business Acquisition [Line Items]
Consideration transferred	$ 69.3	$ 69
Holdback liability	$ 6.3	6
Consideration liability		$ 0.3
Liability settlement period		18 months

Inventories (Details)

Inventories (Details) $ in Millions	Dec. 31, 2022 USD ($)
Inventory Disclosure [Abstract]
Net realizable value reserve	$ 2.6

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($) reporting_unit	Apr. 02, 2022 USD ($)	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 55,372		$ 55,372
Number of reporting units | reporting_unit	1
Amortization of intangible assets	$ 1,100	$ 1,100

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 55,372
Acquisitions	0
Goodwill, ending balance	$ 55,372

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Schedule of Definite-Lived Intangible Assets (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amounts	$ 65,280
Accumulated Amortization	(31,401)
Net Carrying Amounts	$ 33,879
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Lives (Years)	10 years
Gross Carrying Amounts	$ 48,500
Accumulated Amortization	(16,084)
Net Carrying Amounts	$ 32,416
Noncompete agreements
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Lives (Years)	5 years
Gross Carrying Amounts	$ 8,954
Accumulated Amortization	(8,324)
Net Carrying Amounts	$ 630
Trade names
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Lives (Years)	3 years
Gross Carrying Amounts	$ 7,826
Accumulated Amortization	(6,993)
Net Carrying Amounts	$ 833

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Schedule of Definite-Lived Intangible Asset Amortization (Details) $ in Thousands	Apr. 01, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 3,113
2024	3,930
2025	3,765
2026	3,471
2027	3,340
2028	$ 3,340

Revenue Recognition (Details)

Revenue Recognition (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($) day	Apr. 02, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Standard terms of payment, number of days | day	10
Net sales	$ 797,904	$ 1,302,305
Warehouse and reload
Disaggregation of Revenue [Line Items]
Net sales	686,632	1,077,946
Direct
Disaggregation of Revenue [Line Items]
Net sales	127,095	246,652
Customer discounts and rebates
Disaggregation of Revenue [Line Items]
Net sales	(15,823)	(22,293)
Specialty products
Disaggregation of Revenue [Line Items]
Net sales	567,838	767,907
Structural products
Disaggregation of Revenue [Line Items]
Net sales	$ 230,066	$ 534,398

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Debt Instrument [Line Items]
Senior secured notes	$ 300,000	$ 300,000
Finance lease obligations	270,764	273,075
Total debt, gross	570,764	573,075
Unamortized debt issuance costs	(3,854)	(4,057)
Unamortized bond discount costs	(3,393)	(3,519)
Long-term debt	563,517	565,499
Less: current maturities of long-term debt	5,087	7,089
Long-term debt, net of current maturities	558,430	558,410
Long-term debt, excluding current maturities	292,753	292,424
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt, gross	$ 0	$ 0
Weighted average interest rate	0%		0%

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($)	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022	Oct. 31, 2021
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit outstanding	$ 350,000,000
Outstanding principal balance	0	$ 0
Qualified accounts	722,700,000	645,400,000
Line of credit facility, remaining borrowing capacity	$ 346,500,000	346,500,000
Weighted average interest rate	0%		0%
Line of Credit | Revolving Credit Facility | Minimum | LIBOR
Debt Instrument [Line Items]
Credit agreement interest rate	1.25%
Line of Credit | Revolving Credit Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Credit agreement interest rate	0.25%
Line of Credit | Revolving Credit Facility | Maximum | LIBOR
Debt Instrument [Line Items]
Credit agreement interest rate	1.75%
Line of Credit | Revolving Credit Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Credit agreement interest rate	0.75%
6.0% Senior Secured Notes Due 2029 | Senior Notes
Debt Instrument [Line Items]
Debt instrument face amount				$ 300,000,000
Stated interest rate				6%
Percentage of principal, discount				98.625%
Long-term debt fair value	$ 276,800,000	$ 283,600,000

Net Periodic Pension Cost (Be_3

Net Periodic Pension Cost (Benefit) - Schedule of Net Periodic Pension Cost for Pension Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0
Interest cost on projected benefit obligation	1,104	606
Expected return on plan assets	(812)	(1,177)
Amortization of unrecognized gain	302	209
Net periodic pension cost (benefit)	$ 594	$ (362)

Net Periodic Pension Cost (Be_4

Net Periodic Pension Cost (Benefit) - Narrative (Details)	3 Months Ended
	Apr. 01, 2023
Minimum
Defined Contribution Plan Disclosure [Line Items]
Duration of termination of pension plan	12 months
Maximum
Defined Contribution Plan Disclosure [Line Items]
Duration of termination of pension plan	18 months

Stock Compensation (Details)

Stock Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Share-Based Payment Arrangement [Abstract]
Stock based compensation expense	$ 4,600	$ 2,200
Obligation for repurchase of shares to satisfy employee tax withholdings	$ 1,319	$ 0

Leases - Narrative (Details)

Leases - Narrative (Details)	Apr. 01, 2023 option
Lessee, Lease, Description [Line Items]
Number of options	1
Operating lease, renewal term	5 years
Finance lease, renewal term	5 years
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year
Finance lease, term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	15 years
Finance lease, term of contract	15 years

Leases - Schedule of Assets and

Leases - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Assets
Operating lease right-of-use assets	$ 43,548	$ 45,717
Finance lease right-of-use assets	130,659	132,748
Total lease right-of-use assets	174,207	178,465
Current portion
Operating lease liabilities	6,756	7,432
Finance lease liabilities	5,087	7,089
Non-current portion
Operating lease liabilities	38,142	40,011
Finance lease liabilities	265,677	265,986
Total lease liabilities	315,662	320,518
Accumulated depreciation	$ 88,913	$ 90,091
Finance lease, right-of-use asset, statement of financial position	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization

Leases - Schedule of Lease Cost

Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Leases [Abstract]
Operating lease cost:	$ 2,918	$ 2,517
Sublease income	(578)	(652)
Total operating lease costs	2,340	1,865
Amortization of right-of-use assets	2,089	3,710
Interest on lease liabilities	6,044	6,160
Total finance lease costs	$ 8,133	$ 9,870

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Cash Flow and Non-Cash Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 3,458	$ 2,528
Operating cash flows from finance leases	6,044	6,160
Financing cash flows from finance leases	2,133	3,722
Right-of-use assets obtained in exchange for lease obligations
Operating leases	0	0
Finance leases	$ 0	$ 0

Leases - Schedule of Suppleme_2

Leases - Schedule of Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Finance leases
Property and equipment	$ 219,572	$ 222,839
Accumulated depreciation	(88,913)	(90,091)
Property and equipment, net	$ 130,659	$ 132,748
Weighted Average Remaining Lease Term (in years)
Operating leases	9 years 3 months 10 days	9 years 2 months 15 days
Finance leases	13 years 9 months 10 days	13 years 11 months 19 days
Weighted Average Discount Rate
Operating leases	8.61%	8.54%
Finance leases	8.89%	8.87%
Total finance leases	$ 270,764	$ 273,075
Finance lease, right-of-use asset, statement of financial position	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Equipment and vehicles
Weighted Average Discount Rate
Total finance leases	$ 27,162	$ 29,300
Real estate
Weighted Average Discount Rate
Total finance leases	$ 243,602	$ 243,775

Leases - Schedule of Lease Matu

Leases - Schedule of Lease Maturities (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Operating leases
2023	$ 7,724
2024	10,072
2025	8,756
2026	5,460
2027	4,217
Thereafter	31,519
Total lease payments	67,748
Less: imputed interest	(22,850)
Total	44,898
Finance leases
2023	21,147
2024	31,836
2025	28,988
2026	32,553
2027	26,970
Thereafter	524,869
Total lease payments	666,363
Less: imputed interest	(395,599)
Total	$ 270,764	$ 273,075

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended
	Apr. 01, 2023 employee Agreement
Commitments and Contingencies Disclosure [Abstract]
Entity number of employees | employee	2,100
Percentage of employees, employed on part time basis	1%
Percentage of employees represented by various labor unions	16%
Number of CBAs up for renewal, next fiscal year agreement | Agreement	4
Employees are up for renewal	4%

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 590,029	$ 363,249
Other comprehensive income, net of tax	228	176
Ending balance	610,749	492,176
Defined benefit pension plan, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(32,675)
Other comprehensive income, net of tax	239
Ending balance	(32,436)
Other, net of tax
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	1,263
Other comprehensive income, net of tax	(11)
Ending balance	1,252
Total Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(31,412)	(29,360)
Ending balance	$ (31,184)	$ (29,184)

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	26.50%	26.20%

Income Per Share (Details)

Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Earnings Per Share [Abstract]
Net income	$ 17,812	$ 133,409
Weighted-average shares outstanding - basic (in shares)	9,059	9,720
Dilutive effect of share-based awards (in shares)	98	393
Weighted-average shares outstanding - diluted (in shares)	9,157	10,113
Basic income per share (in dollars per share)	$ 1.96	$ 13.72
Diluted income per share (in dollars per share)	$ 1.94	$ 13.19
Antidilutive securities excluded from diluted shares calculation (in shares)	78,000	3,000