BXC - Earnings call transcript Q1 2022

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Operator

Greeting, and welcome to the BlueLinx Holdings’ First Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ryan Taylor, Vice President of Investor Relations. you. Thank

begin. may You

Ryan Taylor

Janzen, and quarter everyone. today XXXX and and Gibson, operator, Officer. BlueLinx are to Holdings’ President Kelly BlueLinx; of first earnings CEO Chief good you, Financial Welcome morning, the Dwight our Thank call. Presenting

with and news website, to along after the market our XX-Q were our Investors detailed available bluelinxco.com. in webcast you presentation. the section Our the release issued along the of our close We on first encourage slides follow Form webcast. quarter are of the with yesterday information These items during

also In morning. increased addition provide more to Dwight announced to million our this yesterday that repurchase an on share details repurchased our QX $XXX Directors plan. during earnings, accelerated of be Kelly with our repurchase call $XX we to and Board will authorization news million, that our via share

presentation. contains reminder, our measures presentation from due non-GAAP financial forward-looking that statements today's a may the and provide includes results we described As risks including differ discussion filings. helpful statements, adjusted Today's those recent found for uncertainties, SEC risk various forward-looking to certain closest actual believe GAAP be and over most Dwight. questions. for to in I'll investors the Reconciliations appendix that, our turn in remarks, conclusion the the call the to open evaluating of can measure context the line of financial our our prepared At will business. we And with

Dwight Gibson

in today. history morning, everyone. is of good and for time us the Ryan, you the This Thanks, joining on an exciting Thank call BlueLinx.

extremely the periods exceed U.S. one BlueLinx team. in of history most proud to the the during dynamic continue we expectations of As housing industry. I'm the of

first execution contributed to continued profitability. quarter strong Our record

rigorous specialty historical for compared be to mix of focusing performance management contributed outstanding pricing priorities products, commodity six and our decisions results. operating margin as to consecutive sales Our These our disciplined have inventory. purchasing, making efforts and higher continue and to peers

growth navigate this results sales capitalize of averaged adjusted six our of our to demonstrate the million, and period past margins we've of EBITDA over $XXX EBITDA extended XX%, the believe Over net quarters, on made has ability adjusted We successfully manage commodity XX.X%. we've even past and to historic XX over progress prices. demand environment. volatility increased wood-based the believe in We supply our baseline the months robust in normalized significantly a performance, to constraints

While we of business we about our our improvement, have excited drive are additional to encouraged are margin growth capacity opportunities by our our potential, increased products. equally as identified greater sales efficiency specialty higher we across and

demand the commodities. based monitoring volatility mortgage U.S. inflation strong these for remodel for leverage remain in broad industry the liquidity and currently which headwinds, believe We a ongoing impact QX homes and higher We million. new of financial rates, in strong levels by home low fundamentals are levels ended housing unemployment, of repair underpinned contributing available and of of wood-based equity, and closely strong Even to with healthy, with is record position we activity. low net $XXX

with financial into April, structural QX generation margins We April also and further volumes specialty have consistent were gross strengthening margins with cash sales our single-digits. in XX% above strong position. high

improvement a analysis, for detailed our repurchase and average This value performance, actions year. XX% a future by in market's past continued is shares compelling market disparity a the share million. market view confidence even These long-term environment authorization our slower the of represents under to between significantly capital an of Directors of over expected Thus, and allocation decided our on current increased the Based cap commit view creates generation versus profile the Following our investment plans, undervalued to cash growth our growth our our In our opportunity. Board our review our we in $XXX repurchase believe $XX timeframe. demonstrate million market. of multiyear business to business, opportunities accelerated view, we strategy. in just for the the

We sales by of $XXX and which our sales allocation. product both our all-time was XX.X% capital gross of consistent highs business. of value profit is at are part which quarter over grow a net increased basis of of a And BlueLinx. closer first profit highlights. or with look million our to Net products, strong we two-thirds from through disciplined sales. XX% our XX% Gross specialty for Taking that adjusted generated EBITDA, committed of to strategy business delivering generated execution sales, grew on year-over-year. quarterly XX.X% specialty shareholder $XXX driven sales, Nearly million was net

operational earlier and Our robust project which From strategic product mix and our scorecard management and results focused And a year, service management, capabilities this improvement reflect commercial excellence, sustainable growing our invested and are to inventory operational on core engagement, profitable a focused KPIs, process of label accountability. as pricing. balanced In levels increase we these value-added have of driving support continued people, on employee business sales, deployed clear private performance benefits such of safety capabilities. activities, specialty for deployed initiatives, financial and expanding tools in perspective, key with on we from our increasing are growth. processes levels commercial high we and focus standard for our and

side, as with industrial and specialty we key to products. vendors millwork, are outdoor select wood, on supplier engineered On living partner categories, the in siding, products working such

actions continue resilient through and a confident stronger we believe drive well perform of, I'm future. goal margins our we profitable more improvement. in ultimate and growth will through workforce, business engage in to combination slower and even BlueLinx gross sales I and Our and expand to accountable I excellence is And improve cycles. environment. in believe make have operational commercial the take the economic continuous growth our to

we provide speaking, and U.S. qualified support levels remain the All underpinned believe rising dynamic continue gears in rates. of to and demand some the and are industry influencing renters inflation buying remain it low the strong I'll rapidly also Broadly and considered, currently both levels homes by low a industry shift impacting rising existing for some our that see nature increasing U.S. increased buyers low homes. things the provide investment even consider the the up And affordability home over home homes housing past Given of remains available unemployment a the for XX% to to prices we wages for healthy, for with We risen near based mortgage a industry, we of low for of rent some is now unemployment, available that have new view acknowledge fundamentals broad engaged new true Meanwhile, supply XX as of today. months, in while buyers. home drive of low It and mortgage rates will historically of believe prices supply purchase approximately market. levels. believe high, remain available homes homes. aspiration we supply housing

aging will growth We repair also to believe that activity. in and high support turnover remodel levels housing of housing stock home continue and equity,

and the of sales with XX% to As tied point the commercial a and home to reference industry. new to annual residential XX% about XX% repair related about construction, of are market, remodel our tied

categories market to in remain stable. expect demand all We three

opportunity specialty with of on If mix For parts like initiatives and further shift key such supply our gain products industrial best engineered us, to our categories many constraints are it are sales wood, of the gain market in product accelerate outdoor in we've millwork, we said, abatement to The performance. share That customers. specialty optimize ease, executing represents vendors supply with to share our few product near-term. as vendor an expand products. siding, business stability are us allocation. includes specialty And poised in signs still believe majority remain will living, experiencing based with we opportunity and to products. on the made volume our to we This economy, the we and improvements provide the of categories, constraints

continue focus with expanding suppliers We our align with and relationships strategy. to key who

sales capabilities presence. our look categories, value-added and product our and expand increase net we As extend specialty geographic to

in in focus siding across with on And and In X% structural volumes volume year-over-year We a are offerings. in unit specialty sales QX our sequentially area total making in X% of this product progress millwork increased our X% products, remains in sales on risk this on structural from mitigating cost price optimizing end, while dynamics, our relentless volume. best to greater our volatility. ongoing managing To we price opposed remain as effectively commodity customers, growing efficiently product emphasis basis. serving inventory with

declined approach, the toward of structural As six prices of a this when profit QX. approximately higher in weeks we cycled commodity wood-based result end out of inventory

capitalizing on strategic At vendor this In are addition monitoring our long-term And imports, sustainable I'll remarks. to input initiatives in times of more rising for drive costs, That of financial demand our we vigilantly fluctuations detailed which and we growth. executing while supply lead supply. competitive parallel, controlling structure. profitable risk. and to a opening and and over commodity summarize, results concludes have pricing, market on XX% effectively call discussion we overall my our commodity continue capital to the Kelly extended a to managed turn expect To labor approximately constraints represents strong and time,

Following that, I’ll provide closing your take remarks before questions. we Kelly?

Kelly Janzen

and everyone. morning Dwight good Thanks,

margin improved product market in sales XX% XX%. Net up profit our XX% resulting $XXX a increased $X.X and capitalize time sales, to on compared were led increased million by trends ability to reflect XX.X% which on all execution and gross quarterly overall specialty year. Our the year-over-year QX prior results a billion, Gross as high basis. to

of with As prior the year X% a period. consistent SG&A at percent sales, was

to variable share and cost delivery SG&A and to prior due million. than $XX to per was primarily period. and However, cost. Net compensation $XXX increased XX% diluted extent EPS This income double year the was a lesser increased $XX.XX logistics was higher more million year-over-year

line the free with an XX.X% million was million flow XX.X% expectations. quarter Our And period. This basis. year a over of EBITDA was the rate quarterly $XXX all net tax $XX or sales. time was high in prior on also Adjusted increased for cash our

continuous benefits demonstrating favorable and ability value while on our alongside Our the from specialty year-over-year high growth profitability on product to sales, also reflect improvements, conditions. emphasis capitalize excellent our market operational growing

with first up categories $XXX starting XX% I’ll discuss sales up to million when million, for $XX Now, prior quarter the period. compared year-over-year. or or profit $XXX product Net XX% the were was million products. million, Gross specialty $XXX year the

have were pricing The siding and favorable a millwork Our such shift again profitability gross basis XX%, volume allocations. year-over-year with categories, XX% expanded sales highest and gross as stayed products consistent net driven specialty wood. net margin expanded flat of ever. volumes strategic approximately engineered disciplined to products ongoing millwork, growth improved XXX range and of reflect increased by gross reflecting actions quarter And in Through X% first volume increased to also was XX%, sales April, XXX and XX% volumes margin including levels. with engineered margins siding Sequentially, in growth. value-based volumes specialty supplier points. rate wood specialty Sales our and basis points to second sales and the

in $XX Gross board $X,XXX QX representing was foot the points up prior driven sales commodity of Now Per prior in increases year-over-year. panels profitability well. million Gross margin discipline price quarter first the for growth reflects the was of $XXX compared from last up framing gross during our And foot, to basis price quarter for gross by square price quarter XX% to in as year an year to all moving QX results XXX our length, the $X,XXX year’s year. our XXX $XXX panels increased or compared average for started basis XX% steady products. time the structural benefit to when to random to Net XX% from XXXX. Sequentially, inventory expanded last fourth million XXXX million The points. structural first lumber lumber margin our for the sales profit The as period. of the was on the of quarter continued XX% average per was increase that and XX%, expanded management. products. structural approach high the margin XXXX per

than QX in centralizing wood-based levels anticipate we as purchasing April. prices to steady pricing we as lower QX margins from leveraging low, consignment, to while in decisions. well late decline As keep We what be and recent structural given mid-March the through commodity experienced in continue

XXXX first per XXXX the For XX% lumber XX% decrease respectively to foot $XXX average foot and April, per of and average the panels, prices for in prices of a from $XXX month commodity quarter. were down square for board

of remained margin first current structural selling summarize quarter, high our of As volumes sales to the been the the both have has sales date products tax on on high the product XX% are specialty At with in in single XX% date and consistent strong now the majority sales pricing, quarter, single deflation. the market prices margin commodity already with in now range our first rate It relatively month for we product margins was for XX% the performance to in QX specialty the commodity of inventory higher consistent gross cash stayed capital. to volumes this product second stabilized. Thus quarter digit. products which Turning generation quarter a and and second levels. to of a consistent full working point, our range with that to result, cycled structural recently we sales to quarter. structural expect while be cost to with digit, our And have out Gross XX% is to have structural due have

related reflects investment home nearly to sales accounts XX% in when related of increased $XXX increase in million payables in our the of $XX while products. April wood-based products. X related the networking specialty to of specialty inventory the primarily strong a investment as commodity million industry receivable, During for quarter, considering building demand impact and inventory This concentrated increase was was of $XXX million net Total U.S. products. million. the pricing first $XXX was to was capital to

quarter First year prior by cash last flow and the over million best $XX cash represents quarter first our free versus performance four the improved years.

related quarter, million $X.X the distribution capital to our were branches. During at upgrades facility expenditures and primarily

of from These capabilities. million For will technology upgrading and $XX of and investments our previous several up continued facility we $XX focused up be enhancing the expenditures, full on million. rolling our investing capital estimate now improvements at our of year, distribution anticipate our to branches, digital in stock fleet

sheet. the balance Looking now at

million was As the XX EBITDA was of net was trailing debt first $XXX the end to debt on Net leverage of leverage first undrawn of considering reduced $XXX X.Xx cash million as our of $XXX end on and liquidity of our X.Xx $XXX of revolver and the quarter quarter month first net quarter. increased was million million. available of XXXX. million, to on hand the cash compared million. of $XX And hand April When of total the XX, of approximately $XXX to as end hand from cash million as the capacity $XXX adjusted was

us with generation to to cash mentioned, financial Dwight capital position meaningful our timeframe. an improve to amount focused XXXX a return efforts As shareholders in of our near-term in accelerated combined expected has positioned

million Specifically, in the of to under instituted repurchase our open Board previous shares million. market XX,XXX from increased authorization our In share last of a quarter, in the our authorization repurchased million third for the $X.X quarter $XXX million, we total up year. the $XX $XX plan first

attractive. to of equity markets the increasingly in we it pullback the become companies home building in U.S. to through particularly valuations the April, industry, believe opportunity Given as shares relates has repurchase

our evaluate invest ASR repurchase, in shares even of within to a approximately $XX X. commitment very will of stock. ample share opportunistic allocation we time, and receive XXX,XXX which to share the such, As Under These are have initiatives, to is terms expected through consistent after chosen the next million as the liquidity execute be we’ve the that with to months. to fund the the ASR, to strategic The accelerated May demonstrates time. well three we accelerated $XX million and growth agreement, actions we’ll on our five framework an authorization repurchase as repurchase capital expect funding At under completed retire at organic acquisitions.

invest a and target intend long-term us As cycles, that sheet to at flexibility net of to all Xx. a financial business around or maintaining economic strong our in we while through leverage enables a maintain guiding principle, balance

that invest evaluate are our risk and products. we growth, higher and mix organic average our we’ll our As acquisition above cost weighted return both for opportunities yield consistent capital to increase specialty a strategy adjusted of with of

shareholders. against investments, our value we shareholders. to to delivering share turn those capital repurchase the actions we remarks. capital We this financial discipline. back comparing closing focused our a will all the call growth and time, Dwight position to our our strong believe maintain discipline are In opportunities of returning long-term for allocation value approach And At in summary, demonstrate over maintaining on I’ll to

Dwight Gibson

closing, an Thanks, BlueLinx. In for time exciting it’s Kelly.

in strong good off a in and are QX XXXX We April. with to a profitability start record

We have level exceeded our expectations business. our ability in raising for market six dynamic quarters a environment consecutive demonstrating of and to base capitalize performance the

the our improvement growth emphasizing in continuous increasing throughout and driving We’re accountability, products business. specialty

is Our position financial strong.

are We our in continued execution to allocation. to shareholder shares, improvement capacity confidence commitment of through to BlueLinx our business in delivering growth. profitable value capital And we investing and $XX sustainable improve deliver in demonstrating repurchasing efficiency business are million increase strategy, and disciplined

future, rich value steadfastly create that long-term to we As And are we environment we an opportunity in look to I all the stakeholders. for to believe are committed goal.

customers preeminent Our the we North our scale aspiration products to will Investor executive believe our value. Day of with have leadership about growth and share a details best increase we in as At vendors. building and shareholder our be ahead product leverage distributor runway relationships productivity accelerate is drive us and to June, growth, expand in long we of our America, our breadth team plan and key to

Ryan. any we’re happy provided RSVP like That our the please code remarks. QR to concludes reach presentation you’d using this or in to At attend, out questions. prepared If our answer to time,

Operator

Thank you.

conduct from Greg question-and-answer question [Operator with now session. Instructions] proceed. comes will Please a Palm We Our Craig-Hallum. first

Greg Palm

the everybody. Good really morning, on Thanks. And congrats here. Yes. good results

Dwight Gibson

you. Thank morning. Good

Kelly Janzen

Thank you.

Greg Palm

start your I’m chain curious when if supply the of just chain. I might with challenges supply thoughts some wanted around to ease.

that we those what Do levels? what’s importantly your think pricing be at are. where long to high at you do thoughts needs current pricing on seeing maintained start And all? to thought want on can as about that you’re that out view chain challenges think you’ve ease, some given at there? get point? supply then lasts come Just to If how You in level pricing more

Dwight Gibson

Yes.

we that capacity. of between available we lot see stay happen, tight you the So, balance see really A connected lag more when are be the to supply there those year. in investments when a investing for the supplies the continuing actually But is products of our increase market. to environment to

mentioned, and So price the in in hold the and we’ve we year past will specialty calls, we as are solid. same. manage said able more be has think and of are think balance around, we being of range still in the to Kelly expectations think the as And that side the we the XX% particularly

Greg Palm

Okay, good. or but And string a backdrop, I at know impressive been you’re think it’s gaining so, if do you the of really shared I been year obviously, look a positive at you back really last like strong mean, results. you’re do your feel your hands supply with getting really I more you than characterize Or strong and pricing as of mean, all? maybe peers? you just would execution? overall environment good a some on it’s

Dwight Gibson

mean, I which can our really performance. the is control, we’re Yes. we focused things on

just greater inventory, So deeper with challenging. and our supplies supply better and building we’ve execution, continues into really leaning our environment be relationships managing been customers. driving our to The

share to we’re challenging share sure market’s a of kinds So But products. gaining the right want our in thing. make of we fair this getting

on it to becomes So as prepared good volume shifting our building mix, more deep sticky available. customer really for relationships, focus and continue we’ll be just

Greg Palm

pairing and light of environment? M&A. pipeline priorities that your certainly have the price c, we should you’re But like allocation at M&A where a, either – just sort not of or lastly, all, expect back overall just Okay. the means b, the the stock news, kind or curious And news, necessarily what is if looks of given, just changed on in capital buyback then that

Dwight Gibson

shareholders. making our that right? we’re scale inorganic activities. – increase around on that things greater can capital are generate weighted going No. always operating thoughtful and be are as to investments to available I to excited continue our of investments which organic allocation capital We’re mean, unchanged, a be capacity could return capital. around return business. And return our cost We and prioritizing And could that efficiency our that about accelerate then, than principles focused of share average

look – enduring. priorities to of our those But an also was capital return believe are stay to continued we So kind kind shareholders. that engaged share of And drive time this for opportunities return and opportune to strategies to to forward. we’re

Kelly Janzen

prepared my our allocation more capital unchanged. the as kind how we’re And Dwight detail mentioned think about Yes. remains of bigger at remarks you’ll picture and hear that in in looking as leverage we target

So, with of taking having just it’s in feel next around been detailed as really the you capital doing. I were previously – and step that we’ve think that a would – allocation process discussing we us evolving, plan the we

Greg Palm

right. Yes. Best forward. luck of Makes going Thanks. All sense.

Dwight Gibson

Greg. Thanks,

Operator

from Our Reuben next Please Company. comes Benchmark question Garner, The proceed.

Reuben Garner

morning, results on guys. Thank everybody Good strong you. and congrats the

Dwight Gibson

Reuben. Thanks,

Reuben Garner

see, Let’s start. to where so

could get number you the mortgage up? So more you the than put would business, see want If a I patch Or the is of I the risk gone to the a and in even risks still see specialty were do specifically kind that any downside of sort wanted very now on if XX% some you it’s margin know thoughts were is go color to we we is are have I tough something structure see down you there different that to period. to question. the past, market been of or to do to you the mean, margins that if obvious in things market just But soft kind rates – think where or and out margin get soften did soft it’s with slow sideways. historically. your your level? on

Kelly Janzen

question. Yes. for Reuben the Well, thanks

structure normalization. fundamental rate. believe it to market a We believe right really around support we down actually differently, XX% be the if that. above in the So as XX% saw say around range. that we been comes to quarters made we or know, would nor some – little our softening thoughts XX%, you incorporating last our and the in pricing few we’ve We differences XX%, I’ll well the That changes

a going pretty happen softening, to don’t it. feel But what’s we mean, number and continue Now that’s and I in support it future. we the that good to we certainly why know considers about reiterate that

Reuben Garner

label mentioned of specialty that aggressively Do growing plans platform of participate your that categories Or wood Okay. you specific in more then, the you earlier. some there I heard to increase coming private labeling the was – in? engineered guys kind other And are in quarters? to private

Dwight Gibson

Yes, run our it’s we a yes, We get some under to centers, three there, question. great business, brands really The kind there’s prime products get and label brand to we’ve answer marketplace. that working yes. other And to the hard think like and cool label polling in things. wood able EWP brands private categories supply. is other more And engineered the of been pretty woods or room on number we think introduce there’s private brands,

explore think opportunities, categories categories or private core products. there’s new other expanding and label we to So core offering specialty

Reuben Garner

as Do like categories, tilted Okay. R&R and of the the heavily couple between you maybe And years? you or changed in grown R&R. new historically thought construction grow think kind But estimate on some that BlueLinx that people have you’re in note guys an construction. have so more a new in mix sense investors siding now you of much your what the decking is tilted quite – those in of specialty efforts to a have business, to would’ve towards few business guys bit I specialty last are

Kelly Janzen

we’re XX% XX% within or only based And last this on year the new construction. data, did R&R, so. our Yes. Reuben, some approximately we on work

where And little multifamily, view of current actually a of tilted R&R a we’re on stand kind our that’s that. bit commercial the rest toward then we But whole. et of cetera. kind as So based

Reuben Garner

I going me, to could. Perfect. And for one last sneak one a in then if I’m

first you us stable digits. kind the forth of put word. to commodity I sub stable in I prices guess, much of with has to with to place a of better less you different the centralize over you So that, market where price quarter, high said of be in be for even have your programs a margins, think or that margin, course something from positive declining month, allows kind were profile? of I in tough environments the second changed been things month lack for help you’ve of $X,XXX historically margin if a to the have going gross that How differently, that thought normal you and could That’s sort structural unbelievable – to you the they said markets. even guys in sort single it of would $X,XXX

Kelly Janzen

Reuben, our continue around continue improve. inventory. and Well, look our at Yes. rethink we commodity approach managing refine just to to we – it don’t and We

as now, of done We XX%. is even we XX% calls to call since our have to XXXX. said, quarter, the we marks lean we’ve the we through. specifically inventory that have brought around game and our really really I where weekly upped well, think XX% closer further But the continuing XX%, a still few we that’s middle this to continue big said it think a number And – improvement. think and even customers. it commodities very keep and commodity, inventory just specialty on serve from And able ago to months I be Even closer to

So inventory And our very and continue we And just quickly. improve. market think I to we refine got well. be that’s did off then quickly shown fair as stabilized pretty the to

more right the yes, right rate margin our is a margin business now. we’ve commodity normalized that typically rate – So, us for around set the so for

Reuben Garner

congrats Great. Very guys helpful. Thanks results. on and

Operator

Kurt Our with proceed. D.A. question from comes next Davidson. Please Yinger

Kurt Yinger

good morning, and you Thank Great. everyone.

looks and your on the you product kind of what specialty margin categories, volume of own start a regarding perspective initiatives? segment kind around versus the internal color from driven is comment like that and customer off within could maybe higher towards shifting to wanted some Just much how that just of add market

Kelly Janzen

to and Well, add I'll I'll let Dwight start this. on

able are improve get we're general seeing and to mostly kind Our to a we're supply in be where more there. and able of to changes millwork little volume share upticks siding our

Specifically where EWP it's perspective. shift over from a several is also I've a the tighter months, been on supply little last mix however,

And then all about. the more perspective, just like QX, as So to saw volume QX it's overall two sequentially X% like other across we spoken almost than categories. we've as an little a an overall flat from categories the

just as yes, continue of So on our on products to business, intentional we for Dwight? these as focus the core line. it's the side key product an categories specialty about talk focusing

Dwight Gibson

think Kelly business intentional entire also really drive perspective the and that and the Yes, it. a organization to aligning nailed of product we being around from really, areas I the markets, or want right. We're

across and of more to additional branches some gotten some over to had we've to locations, to contributing with lean year. we've going of that drive program which bit is into volume opportunities course So the see. the what really as we're energy as some that continue little availability those, you kind a And expanding

Kurt Yinger

Got it.

then on thinking the of few be Okay. and the next over kind impact That's to in of excluding, commodities, SEDAR other just industrial the of kind about of of helpful. specialty quarters tangential segment some you're inflation the about XXXX? may maybe overall price any And thinking products in range price that terms average

Kelly Janzen

XXXX. to tell from of All I have we – price price. is the can a the end We've view continued that currently of no we've unfortunately sustain you able that. hikes Really good don't been seen

bit this more we in past even sustain to quarter. pricing. continue a that And in going little We saw into fact,

near-term, as macro from seen we is the But don't we're certainly. environment, we in yet. like the abatement everybody cognizant else haven't in relates to what course, just pricing, it monitoring So we see see, and of it

Kurt Yinger

a then can or and of focus. few commercial hoping last couple you the in maybe been And there excellence quarters? you've seen a provide there's achieve terms examples of wins Got it. different able couple improvements I been was operational right. All comments over to just

Dwight Gibson

Yes.

talk about couple a So different in areas. I'll that

really pleased to we with that I've our good and team see opportunities on relationships account some the side larger of customers. is really particularly understanding One things been making have of regional the sure the of and our national larger some customers,

across that capabilities. able together to more the been offer able their products upcoming driving we've around really then more how that good we've to that safety regions we're running our little safety, common wins we sure been in price, some it how consistency And managing that business, of to locations make to very needs detail best deviations hold able as probably that. clarity around contributor just products Investor that approaches practice of certain and put from I seeing really, appropriately. making in bit and that a talk in some a Day. leverage sure something are all then and specifically around to visibility and making efficiency think around consistent And So the nice services leverage of addition to really and offer our at and Then expertise And our that we've bit – a manage talk and been processes I'll our standard that in that sure terms that we've also programs how that in speak had we're metrics proud there's certain accountable most of And inventory, across we about perspective, our consistent our capacity, is just and making driving organization. we to a we're having we're are sure way the to progress. and people a relates

the the it think the side. to to still make things I best early again, operational work of the commercial So side, And days lots BlueLinx continue we're could in doing be. we're of on the

Kurt Yinger

liquidity last All last sheet right. and of over then and mean, a picture the I drastically couple the improved Appreciate question. that, has years. just kind one, bigger Okay. balance my

BlueLinx with increasing with you landscape investments competitive business current view partner? those the premium attract state platform? brands puts about and into the to you And when when that's you and an better of trying think to they Your do brands speak as a the do on in the you impact think the back suppliers and to best had products, the business align think a customers, position how you yourself

Dwight Gibson

high them. Yes, our of and throughout I with the top referenced now to pretty I've business. think the really, meet customers drive engagement team driving of almost And visit and been done with opportunity really really most a with suppliers performance vendors. continue of we've had much of the that's time recognized, And good to level and also all that. them our and has job spend top a customers they've with And

our excited grow have yet done. And but – about with the industry. what brands to that's the a partner to wallet even We the not We work's feel bigger the that. that, good continue on. meaningful and in focused best about to so And be still customers opportunities think, I we're share big we're

Kurt Yinger

it. Got

turn Okay. color I'll and Appreciate the all Thanks. it over guys.

Dwight Gibson

Thank you.

Operator

Our next Stevenson comes from Jeff question of Markets. Loop Capital proceed. Please

Jeff Stevenson

my the for great quarter. taking today on questions congrats thanks and Hey,

Dwight Gibson

Thanks, Jeff.

Jeff Stevenson

$XXX to the Sure. ASR. million include My repurchase authorization the and around to decision Yes. the increase question was share first just

the volatility back the how previously last off Just buying held wondering about, came in half ignore. current to valuation too back of but year, market make low that just you because levels shares

Dwight Gibson

we thoughtful over we have approach good we Yes, liquidity a investments. are up what in few capital that business to And with sure ramping pipeline. as all ability capital over we to great the years, we've a disciplined and be decided invest once and kind we've those still it we said that fair a the we quarters. the also that we doing make returning next expect talked trying really things to really nice And with together, also pace taken as allocation that to would to wanted of Sean on couple were our the been delivering again past the the doesn't performance kind felt we and we the We've of shareholders obviously opportunistic in move and business think came We'll support past to year, board. from in thoughtful side. continue were, we and job with our and drive up be about. our really, a really organic engagement continue has the about to amount M&A And to build in other as think in restrict ways. that the a

do So about felt that the out really thing getting like into and excited the marketplace. right to

Jeff Stevenson

touch what then and That's inventory levels of consignment to using your just to running And limit given volume growth, Great. products helpful. on playbook lower structural I wanted commodity risk.

Just year-over-year forward and we if the a wondering lag lower how them levels. basis, to volumes were in on moving giving expect the inventory quarter should first

Kelly Janzen

Yes.

– is the we volume a did year-over-year slight decrease. So change so

have quarters year-over-year. last really been few as decreased As the

and best inventory, manage the side to the supporting volume driving absolutely growth way. As more our on market. focused have we're really business risk bit on supporting the keeping we We're little with we're commodity we it a the But lower, given specialty balance associated in our manage the the customers commodity side. structural volume and on up

Jeff Stevenson

side. shift specialty the then And it. Got into

just You Was ensure an had inventory to the another environment year-over-year on had increased enough for demand product on opportunity or sequentially side. and reason – a you that? this in both hand strong there

Kelly Janzen

millwork, and an had categories, in year-over-year increase increases Well, as was increase, a sequentially, I such with shifting really a kind the of that now had on The it's siding that we allocation mentioned depending demand really, think And is supply earlier. key X% slight that decrease is specifically all we have. just products. market around the we're is nice good. these of really good still well. I for good, right The executing

what of the got. we're So most we've making

Jeff Stevenson

you. Thank Okay.

Ryan Taylor

Ryan is Jeff. This Taylor… Thanks

Operator

closing call the to I management for over would back comments. turn some like to

Ryan Taylor

joining Thank today's appreciate VP Yes. concludes That for much. really This us our of session Investor We question-and-answer call. today. everybody you Relations. Taylor, Ryan so is

questions, to reach to to myself. you time. or or any time Thank you please We'll have talk. follow We'll you If be schedule Alexander talk so next to back feel to free everyone. you to out a get up happy much,

Operator

today's teleconference. Thank you. This conclude does

disconnect you your and may at You participation. great time your for day. thank Have a lines this

BlueLinx (BXC) 4 May 222022 Q1 Earnings call transcript