BlueLinx (BXC) 3 May 232023 Q1 Earnings call transcript

Greetings, and welcome to the BlueLinx First Quarter 2023 Results Conference Call. [Operator Instructions].

It is now my pleasure to introduce your host, Alexandra Lukacs, Manager of IR.

You may begin, ma'am.

Thank you, operator. welcome BlueLinx and XXXX First everyone, Call. Earnings morning, to Holdings the Quarter Good Shyam and Reddy, and are today Presenting President our Financial Kelly CEO Chief Officer. Janzen, BlueLinx; of

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

contains and discussion results in differ the Today's filings. statements. forward-looking may due described SEC significantly Actual statements forward-looking to from our risks uncertainties, those most recent various risks including

Today's found provide closest of to includes that the non-GAAP for in measures our financial presentation. business. financial we helpful can measure the Reconciliations presentation GAAP believe appendix be and investors certain adjusted context evaluating our

remarks, our open conclusion prepared line the we At questions. for will of the

With to the call turn over Shyam. that, I'll

morning, like for his associates. joining appreciative good behalf grateful you for his everyone. leadership appreciate by and and BlueLinx of Dwight on I'm predecessor, contributions many start Alexandra, my of to Thanks, Gibson. We I'd and and today. our us thanking

several give sales gained important momentum it's Before over quarterly generate growth. to to the the highlight my I remarks, last years profitable we've

full the operational of excellence. Specifically, pandemic we service, took recovery inventory during housing and management advantage by the customer that occurred accelerated strategic focusing on

unprecedented growth. efforts our specialty during this our accelerated Fortunately, of period product recent strategy

million almost outstanding $XX profitable in to from growth, financial repurchase acquire leverage performance $XX of capital reduce our strong last invest sustained million shares. for Forest years Products CapEx, to allowed In the sales X.Xx, million X.Xx $XX Vandermeer allocate fact, and X has to support over us net

the strong. of performance business remains flow cash The

be repurchase remaining $XX to So we under an the share on our several over near of million current years. journey in last the to exciting been the term place million is given we've $XXX exhaust which program capacity intend the

housing years business will the difficult resilient support confident this our come to value I to long-term experiencing and our am building navigate shareholders. products now associates market we and of are for a our because can to for generate our continue grow we While current and nature environment, competitive efforts grit, condition

into Now, we and we but our quarter, deeper a head on execution around about the greater remain second X as strategy resolute focus areas. key efficiency with clarity, continuing

living. committed to specialty firmly are product mill our siding, we high-value wood, First, outdoor categories: X growing work, industrial engineered and

that enable that pricing capabilities procurement national Second, costs reduce we our and driving sales and operational, will leveraging by are committed us excellence generate pricing best implement be and to more to practices corporate discipline to productive, to profitable ensure will deep leaders relationships our to being that local advantage market the pursued both supplier fuel by value sales. customers and to will proposition suppliers. of take our generate profitable for strategy Doing strengthen the so will market our account

us will sheet growth our through organically in us we our opportunistically giving approach allocation the Doing grow both to disciplined capital initiatives that remain through allow will flexibility accretive acquisitions, remains shares. Third, strong. to business, to repurchase sales inorganically so and while the so balance

business that challenging the navigate opportunities period stakeholders, and all us enable advantage arise of for current cycle, value so especially downturn of entered take priorities strategic long-term can we've the in the we while these grow And will our create housing when more shareholders. on focus to improves market our a and continued the that our

on to Now moving performance. XXXX QX

compared to These significant home declined housing new remodel, construction to the quarter, and have when the residential includes be for single-family rate in repair new factors by year-over-year market, of which effects During contributed higher QX home affordability our primarily first quarter interest the a adversely XXXX. and to starts continued impacted end a issues. to which reduction XX% environment

housing of to the $XXX,XXX also activity last closer XX-year Repair slowed year. remodel to the starts peak down and compared are Single-family approximately now average.

volume and an quarter sales $XX in of resulted with net sales. markets from million EBITDA $X.XX of or on We $XXX challenging of diluted generated results. the $XX basis in income. pleased million declines solid overall and demand, resulting million Despite This our reduction first about share I building am an adjusted and adjusted per products X% net net in

million million $XX of generated compared flow, a $XX also significant We cash last when increase operating accomplishment. an year, to of

equally is story the speaking, compelling. Sequentially

generated Over million a the $XXX operating in we total of last X cash. quarters,

period, hand The increased at million. a liquidity our strengthens approximately quarter capital cash to the ability same execute also on the we our allocation During our on further additional end $XXX initiatives. record by $XXX to million

As expected, in this specialty category. product in first for category. new meaningful are within the home our so our surprising experienced sales it's directly products, volumes wood not that tied declines particularly quarter, construction, Engineered to we were example, lower

stabilized market the specialty As increase, expect and to starts in new volume. we see improvement home

specialty the decline, volume modest to loosening our price levels. product chain to pre-pandemic due deflation building at supply and functioning up also experienced addition products In

in years flow. relatively were pricing sales specialty XX.X% first XX.X% more over did commodity with because and and products both and XX% structural. XX% refined quarter, for consistent product down ebb Net than maintain down capabilities the a expand the strong because and we for we've margin year-over-year performance developed of last contraction, that specialty during quarter our cost-containment markets delivered margins current were to as Despite several structural wood-based though prices and the in we year. And category structural market first volumes the were

the a we've us advantage. We last managing gives aggressively competitive are few which also years, given muscle our over capital working the believe we developed

inventory us of our relentless helped to also successfully took since quarter We million at than with by strategy structural total level to beginning on the inventory of align low the current level discipline market continued conditions, our year. our $XX which on balance. execute we of less management the and end actions inventory, and our reduce of the represented inventory maintain XX% total specific to That focus inventory specialty

X are QX. versus see first specialty we daily structural continued to for both of and slightly weeks volumes the products up margins QX, average and solid Through that

are of terms points outlook, March signs see is housing housing up market, in December to compared Builders' X% the XX the we with beginning also some single-family to In confidence in positive when February starts market increasing since to XXXX. XX.

Some differences demand markets regional market also other new to where are softer geographies. experiencing home persist compared when

will at look to we starts year, down believe to compared that housing As the we continue full single-family XXXX. be

hand, other that remodel will levels we turnover, housing market. stock and the aged equity recent On repair the to support of housing high believe continue

the the Ultimately, improves building profitable and we with the are of future industry market will enable capitalize to on declines manage Even experiencing cyclicality strong. effectively provide reach the industry geographic to opportunities downs once products the in reality current the prospects and the housing and that fuel scale Our grow us business. of housing we're sector, will ups the market our and market. long-term this

our work intend of near led first continued summary, through success which delivered sales progress position to close the program. current to generation to out million $XXX financial we repurchases are $XX designed share repurchase that for put shareholders the a strategic make our term, In share in meaningful business results in that environment, on solid to This million will and growth. for profitable to cash priorities we quarter we challenging macro long-term

to approach it capital to with advantage sheet and housing strategy, allocation our well of that disciplined strong market believe balance our take us along improves. positions I the as

Kelly That capital remarks. my concludes detailed to our structure. turn financial now call and the discussion opening I'll over for of a results

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

highlighted good by Shyam, backdrop of Thanks, start our the and We morning, specialty margins with solid strong both across results. first softer conditions. product and considering structural a everyone. quarter performance, market categories, I'll delivered the

down over to XX% the lower $XXX prior sales products were were year-over-year. XX% volume. primarily year Net Specialty sales million, down due

XX% year from specialty was our profit However, up period. is the which derived XX% sales, of prior in gross product in

experienced last exclusively Structural down decline the prior due years. product XX%, almost basis levels margin gross before profit of from and XXX still points significant higher but million were year-over-year which gross sales XX.X%, was prices. Total than was couple year to was commodity margin $XXX the in period down

When reviewing while significant, inflation downturn. across are variances levels the the Thus, the recent to and we results we significant demand historically with that it's quarter of of market point the XXXX, quite important pleased the the we quarter generated business. out financial price first year-over-year considering are comparison, experienced in high this

to Turning the This sales year-over-year. results products. to Net decline was construction specialty tied lower engineered residential volume, now quarter like by new down first million, categories for are were that XX% driven especially in wood. primarily $XXX

most supply year $XX were profit strong was Specialty margin still sales XX.X%, basis allocation. in points near on $XXX last million margin but from XXX down due the specialty Gross prices million, given a was decline. peak product their when volume gross down was to

the the first gross Through in of XX%, of versus of range QX, XX%, sales the daily margin specialty first with weeks improved X volumes products slightly was year. this quarter

Now to period. was moving in prior decline volume $XXX compared composite Net primarily and prior sales relatively decrease structural on consistent with panel prices million, year down significant This year-over-year products. the to XX% and due average to the year. were was the lumber which

thousand lumber first was And the average board XX% for feet, per per from feet per XXXX was square For XXXX. thousand $X,XXX $X,XXX down price framing square down $XXX XX% in from average the feet. Lengths, the $XXX per of QX quarter year-over-year per price of Random panel in thousand thousand feet, board

profit And rising $XX compared commodity margin environment decline of year XX% a lower was year-over-year, as gross the in benefited prices. Gross we where was prices. prior million, of also from primarily XX% quarter a sharply from XX.X% commodity resulting an to period,

square quarter $XXX panel board end As feet, about thousand of to the to of the of beginning per feet up prices $XXX around to a increase, XXXX, the compared respectively, increased of prices XX% X,XXX and were the lumber X% year. per and first

the are $XXX These feet per and thousand in feet. board weeks and second prices the have of thousand quarter square per $XXX X improved first now

leveraging excellent purchasing structural margin pricing commodity utilizing keep our through strong the flow. job price structural manage Our to does volatility decisions risk centralized reflect and level team to continues and inventory consignment to

structural adjust first wood-based at each X versus was arise end to weeks any margin could inventory impact gross and of still that we margin XX%, accordingly products period, Through is the believe to pricing the quarter. with that than sales continue of market evaluate up will in for range if higher first commodities XX% and This volumes net we X% the excludes from slightly daily of the necessary. the normal, QX, adjustments,

and For first million $XX year an from included prior Vandermeer the which period. not SG&A in quarter, of additional the $X million was includes cost were operating

And we incentives commissions, as have and We approach third-party costs demand. our as have been to costs reduced to managing such match freight. variable in deliberate such, current our

headcount Our since is the through the of year, beginning attrition. also decreased mainly

from [indiscernible] costs. impact inflationary These by were benefit reductions partially offset

remain ensure As we will future cost our profitability. move we structure forward, to on focused rightsizing

diluted diluted $XX $XX income Net income share. was million basis, $X.XX per million On and EPS was $X.XX per and share. was an EPS net adjusted was

quarter first was in with rate tax The our line XX.X%, expectations.

second our anticipate the the tax XX% range. of XX% be to For XXXX, in quarter rate we to

or strong market net of Adjusted sales, million EBITDA X.X% was a the conditions. given current $XX result

to working moving and Now cash capital. on flow

first million. and the generated operating During flow flow $XX free cash million of $XX quarter, cash we of

generation market million by reflect reflecting conditions. inventory cash was to focus current rightsizing reduction particularly in quarter our first Our management, capital inventory, our around $XX a specialty related working supported to

down We reduction ended of the beginning the of inventory, million $XXX $XXX with quarter of a from sequentially and million the year-over-year. year first XX%

We continued have also invest. to

which approximately $X and were distribution spent million our in rolling we quarter, primarily fleet stock. expenditures of for to our branches enhancements capital the upgrades to During

year, on investments to our upgrades remain and to the facility improvements around fleet. focusing million, expect further capital we For still $XX

we term. under Also, we to remaining authorization $XX the in near for $XXX million share million intend have our buybacks use the

As through intend business a in a sheet for reminder, invest while net economic consistent. a our remain capital strong which allocation Xx less. enables maintaining guiding cycles or to maintain long-term us target principles to balance We of leverage our

balance Looking sheet. now at our

no material consistent where As end $XXX was a net X.Xx, And on with million, of XXXX. million. was hand level. the debt we of end the record of were debt million, and was leverage year. we maturities Total the the Net until debt was $XXX $XXX cash first at have quarter,

available million, of When cash million record. $XXX was the first at considering end undrawn on also of $XXX a our hand and capacity revolver the quarter, liquidity

weather supported repurchases. EBITDA support balance financial generation, and initiatives. turn, deliberate share organic this our opportunities strong our in challenging us cycle our enables and invest and improved investments growth allocation our to sheet, capital to when by We approach combined we and our significantly with and expand strategic in have our and cash have more inorganic position in been prospects such This, high-return as

remain and volumes term, to relative near pricing pressure. the that last remain In we to under continue will that year soft expect will

be our position and strategy, will continue on value our financial to strong shareholders. focus delivering to maintaining Our executing a long-term

Shyam the Now call remarks. turn I'll back for over to closing

In support that shares From strengthen business a remains ample profitable our with position Kelly. will grow financial impending near opportunistically investments that growth profile. to remaining initiatives, million make capital low repurchase standpoint, term. in our targets the liquidity, capital of material under current sales acquisition Thanks, and we growth leverage maturities in invest our share and program repurchase debt strong the closing, no pursue a our strategy, $XX allocation ability

conditions. our sincere and market because and a testament associates. our a performance our help customers I to a it is our Never tireless appreciative to customers the their serve I our talented grow of am desire of during only am suppliers proud of QX succeed. challenging work to doubt, hard efforts business

to like there what also for leading the I excited our suppliers products their so faith be that thank about matters can continuing Without support building and am no we and is in us. distributor States. I United in BlueLinx. customers to deliver the our and future them,

time, our this questions. any are prepared to answer concludes At we happy remarks. That

[Operator Instructions].

Greg Palm Group. Our comes first from Craig-Hallum question with Capital

is This on Greg for Eggerichs today. Danny

volumes, and the call, any specifically the I way things the optimistic EWP seeing last think last months relative. the out appreciate you quarter-to-date maybe on there? of -- what break noted over kind that. couple you're of repair pressure remodel more color guess of I some know in of to on and on I I terms at least specialty, like

highlight or negative? guess be any from So I changes areas to any now there to to you other then, or positive want that

Sure.

versus As did -- have see We're we softer I to last seeing the softness that continuing year. EWP quarter. that mentioned, the in first

bit related X as and is siding we're seeing this weeks last specialty products. -- we that the improvement EWP, uptick to seeing However, of are in that part the a well as improvement, in

all they quarter. are the for across the stronger than areas those average So a really now bit at were first

maybe and structural it. Got at. XX% Obviously, really the on held where level pricing is a about? then It environment a EWP. Then to overall seems -- the mix a baseline that even those stability specialty like seems maybe we with XX% XX% and especially And more think pressures lumber there's well of that up can demand to certain and for touch quarter-to-date. margins. of is It with given of like some more XX% pressure,

upside So how up if I start pick don't know, it seems like anything there's thinking than Is that you're of more things it? there. to kind can about

really that back with. between XX%, range we comfortable average very Well, Yes. I XX% that feel to come and

comfortable we're really we're specialty, can. to the As first it think I much as range on high I it to that was really as relates But with. get for and continue try quarter, we that's to push pleased the side to still to and going the margin see

team benefit to related reversing X% the off around from come wonderfully some commodities this has reserves to did quite that. executing quarter. We for hesitant have I'm been And some yet. The

you take that XX.X%. have been closer if to would So we out,

on some However, volatility still commodity and come off that and more don't feel X% the room I until like want in we still I stability. there's see of prices, going to

market national work to developed working and we've and last I'd several our add with our the pricing we're local pricing muscle maintain And leaders just team the and and doing the years. and discipline centrally like highlight over to

one Then you, makes more last Shyam, Yes, quick one sense. maybe for broad-based. just

want take right may thoughts and for about little we priorities on have to more where your improvement a you just overall think that identified maybe as you BlueLinx. strategic on Just outlook your areas and as bit any

that The Well, a all, No, of Sure. going to to I great just remains first reiterate want it's we're question. focus. strategy unchanged.

to So new and for industrials multifamily to starts, they us and grow outdoor new on opportunities. our millwork, sense remodel, siding as and we're categories business. existing housing focus because that key all make opportunities, both include Those repair X going growth we which And living. view means EWP, those our touch of specialty product industrial and

customer strategies and better the and on down We'll continue segmentation management to double our excellence, pricing, operational monetize and benefits of to teams product centralized scale our capabilities.

and last scale focus as started our pricing over containment years. We'll more excellence operational optimize productivity, That focus can on which been that also improve -- we've we several continue focused cost greater drive benefits on our continues as procurement to of and effectively. to the so we will the efficiency truly

capital allocate but grow last then we'll M&A shares. and, the repurchase least, business, not opportunistically transactions do ultimately, And to accretive

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

you flipped of from in impact given leverage there some kind Great. It the more Could headwind moving EWP, quarter. just a and or of treated the headwind specialty pricing maybe in pieces year-over-year mix looks the of overall terms in challenging like some maybe unpack market competitiveness different from pricing the pressure to the backdrop?

answer question. to Happy that Sure.

mentioned see bigger pricing, driver volume products. did that pressure. really is in But specialty range, really somewhere change, slightly having the it higher-margin bit we with the as our First, that EWP. And mix than was in pricing the XX% a there, that around as -- of the our in one impact. relates was EWP impact of a our Overall, margin remarks deliverable. XX% change the and in We right to whole. that bigger softness EWP less

volume to I on mentioned the question, that. around recovery see As the some last we're for starting

good and to we'll watch that's news, continue So that.

that little if we'll is to we see XX% a there. a hopefully XX% So And EWP range. still upside recover, maintain good I see

tied to new is starts. directly just EWP And housing add, Yes. to

in reflected of expect numbers, tied categories even continue So percentage builder April, the product we're EWP the to and the new and continue good of relatively new as increase. as being as and home housing community, starts builder specialty starts to to from improve, starts percentage March as to see we hearing continuing see in other sales new we sentiment housing a in

positive some signs. So just early

that kind sense. of And in Right, Yes, makes dovetails right. next question. my

kind sequential just with better that volume mentioned what looks in year-over-year of directionally, the in bit contextualize a it's basis like or QX? perhaps you any saw than a Is specialty at to there You trends or even whether consistent way quarter-to-date. on least

Yes. strong I QX mean very were a bit us. quite than mean year. it's QX, last I still of year last for softer quarters certainly

range the about So pricing I spoke you I relatively it know if think slightly I consistent, it's relates in off. just just about think that to, as

be to into remarks. that drop a fact and see of volume kind of the back we in other -- continue, our and able of a that other You'll we couple press significant our release in our off fairly in mentioned

And that's key new do in holding bit, residential think customers would guess seems it. exposure, you is with end and just a categories? that quite do bit is product a be your some just like given Got balance destocking the on could purely activity? your but And I think little thought better. there. there it is market Because it resi of of perhaps Or construction down some new you those going I R&R of have maybe kind

seasonally completely a than that. flat mean, is first new the a is the R&R Shyam impact. biggest I and little always the stands. hard And Yes. were tell seasonality, where new as frankly, it quarter We impacted the quarter. in It's first in the think certainly residential although quarter, there softer factors the was single-family mentioned, housing the residential, new -- certainly, to just starts

will other tell I'll develops impact, far, by we with Shyam know. QX around new residential time I biggest as as the impact But on. any that. is, the points think I the answer goes R&R whole, a year let see kind So of as

doing I in multifamily obviously, a -- Yes. the starts focusing really is approach nice diversified some housing categories well us And R&R, balanced market look, attacking on what I about we're a single-family a by what appreciate growing to way other as is -- sales. and which gives nice as,

of slow of homes, the of XXXX, down continued which peak XXXX activity stock, undersupply relative in So levels necessary and housing still its in that's required, an even high equity though support repair to homeowners fact will the there's R&R. all aged telework, is R&R

may it's feel although market be -- going Although it's we strong be down, to it continue focus to still on. a to for like us

Yes.

the year. around the confident remainder of feel R&R for So

it. Got more me. And two just for

customers? of mean of and levels role how the desire in to your inventory keep versus chain provide in In the high with supply I overall capital balance specialty working do and reduction check service terms of the you ability in QX. your kind to actions kind to

Well, last product the unusual very much year that allocation. fact Yes. was so our was of a on in year

we completely and that in would chain, the timing occur. to the what was difficult supply judge needed of what when So

out So coming -- in as you 'XX. especially addition, our sales of significant, were know

specialty factor you those working last all was to for when things little capital manage easy -- So through not year.

think return correct a get working reasonable. need fact, specific market to to And feel capital As where ensure going we more think work inventory forward the intentional -- we have a to could don't and had continue the to into our started were we from we what ability with very at the this the and as normalized because But done we this yet. steps we do continue took to working the of [indiscernible] end our go that demands on we're seeing we're the customers we'll service perspective. are we with to an around we like -- special the do to in planning, down market, I fourth and we market efficiency inventory state actually year. teams meet good we of absolutely

out way and I'm turned with working the effectiveness. QX, push So capital we'll happy our to continue for really that it

and opportunity backdrop there? lastly, the and maybe I than more then that's set it. of months see attractive could And mean, or that overall in kind about you thinking less you out the couple a on M&A that's Got whether of something how comment just current you're ago

us is of have. growth the expansion, initiatives cetera, growth product specialty capital which our Sure, mean, M&A think ties area into all strategies, for as efficient going growth geographic in and product we the sales question. expansion, of we focus other commercial to that et I'll I to supporting take continue deployment about a be

We doing of -- accretive to committed targets to acquisition be strategic when we believe, And and when doing those -- pipeline have robust our that financial deals support very growth objectives. those opportunistic opportunities a given we're absolutely that condition, arise.

about approach these for right be We come right the we've sure be feel these. But -- a us. now, uncertain we meeting whether price continue making we little that the And there pay transactions, pursue the is of are given for disciplined minds. focus on a will very market to a opportunistic can very, we to will we the to taken, front. like will and to continue really more it area But as

from question Loop Jeff with Stevenson next Our Capital Markets. comes

first called to ask challenge because year. other anticipated X better out start product volumes. you volumes quarter specialty any holding the categories wanted how kind the wood trended than But your and to core wondered during if I off product of are on engineered categories and

Jeff. Thanks,

certainly for whole kind the were last you related look good out than the if a was the decline. pretty categories. it I at much year-over-year And across feel board EWP called as softer We total, volumes just as a other overall think all year. that gives soft you to the because of So disproportionately

a only I But bit. with earlier, mentioned It's little relatively given as pricing, that down was the it stable.

the categories. product coming kind starts relative EWP to the when all like feel of be really of more decline we'll start the seeing consistent more I back, across So

confidence specialty if first it. despite just results normalized I'm at give to and on, previous to it. That's wondering, sales. margins levels comes it's mentioned I there helpful. negative environment residential then specialty EWP be above moving hold And back, I levels but been are margins continue sustainable Got the from Kelly, XX% product do touched current forward? slowing you of Got a EWP quarter challenged the know increased upside mix know you but could that XX%

pricing executing our story seen, relates between that But that. of it in extremely the future. the reevaluate I confident we've yes, the at Every from a we that range that the to feel the market to that short cost well positive well seeing mentioned is, as around foreseeable signs XX% The as range. as least quarter, stability for perspective, we're team XX%

I prioritize then, if could just growth internal you your provide little you investments Okay. such wondered how program. to areas Great. repurchase and And moving capital forward strategy color and on more Shyam, allocation plan as share your M&A, a

Yes, sure.

categories to all, we as capital allocating operations around think, to initiatives. anything relates to X it important growth sales believe first I It's specialty product growth our committed the enhance obviously and strategic will of account we the priorities are the sales opportunities but is obviously. opportunities so I right mentioned. finding into our right Obviously, risk doing by the ultimately taking really accretive shareholders, important, are that making of we the while and sure deal that we're M&A

the especially in shares believe business repurchase And the little as I've role the announcing $XXX to my earlier, intent X cash and million of Board And program. strong. said characteristics weeks repurchases remaining when under look, $XX I only more we I current flow share mean, a that then I quickly mean, shareholders, aligning than to repurchases, efficient the around, are way for with been million of as far are as I share an and effective to the capital return

those and to foremost, first the to move the business we'll at And the continue while our profitable objective drive well. evaluate ways growth forward. dollars other invest we But opportunities day, in achieve and end as growing as sales to we that of efficiently want

Reuben comes from with The next Our Benchmark question Company. Garner

forward working I that Shyam, the you. hope on correctly, to congrats look new role, with I'm And pronouncing

disconnecting in But side so there's there. years I volume the chase But that, side. the over quarter. think you be with on start business and couple specialty color how structural I exactly is easier so. and been great. that that comps as rightly give volume would know that why the didn't are first on Is maybe much? to it's any the you questions of the could there simple as And you I'm can last lot a guys of forward. about any We the know saw curious the reason EWP on going

the we started commodity we risk keeping volumes head on it. and of related managing that 'XX, been in, Yes. end inventory actually, the Well, as our haven't nail I to think that. around the towards pricing year, reining the of you chasing low, mitigating really hit part as -- -- Last we such our

So is primary to as reason, base think that business. continuing a we're I the that that's drive

think structural In in our business on addition, have going as R&R I we more activity well.

benefited months. recent more the it we from in so bit I saw markets So think a than of exposure with to a having maybe both EWP

on -- it. my it's seasonality is Got next And question a question.

like it's but to and think talked return but You a do gross typically more a normal this, lot maybe forward? case was be low for the revenue, XXXX? we going that Any margin you kind what and of I to say of EBITDA I standpoint reason QX will wouldn't seasonality, to that watermark from or for that revenue safe why for think margin, about margin. the to the prior a year kind this Kelly, we EBITDA saw year alluded know

going We we I were kind a some of haven't last still whole, compared year. dynamics change really the Even to that market as that seasonality of as we're gotten through did we there yet. mentioned in what see

us a as seeing wait to we I expect think the seasonality. next to So might to on answer start over have that. be I of hard give We'll when better you normalized give predict. to would don't monitor able couple that view. return an it's exact just can potentially to quarters, We'll and that we

were of luck this questions and Congrats year. other the good my All asked. rest on the results Okay.

back time. over at Lukacs I further to comments. go turn no ma'am. Alexandra floor are for ahead, like to closing Please would There questions this the

you on appreciate engagement your to call Thank and joined We everyone questions. you, us operator, the today. thank and your that

should assist have you call. next to That speaking look any concludes available our be forward questions. quarter. to will you team with We you Our

now disconnect. You may