BlueLinx (BXC) 1 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the BlueLinx Holdings Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode, and today's call is being recorded.

We will begin with opening remarks and introductions. At this time, I would like to turn the conference over to your host, Investor Relations Officer, Tom Morabito. Please go ahead, Sir.

welcome BlueLinx and Earnings Quarter operator, Call. you, to Third the XXXX Thank

today's Reddy, Financial is Chief me remarks, call Joining on questions. take Shyam end today's and Wamser, we will the Executive Andy our our At Chief Officer. of prepared Officer; and President

encourage recent third release and helpful context the to that these be and significantly We XX-Q risks contains information Reconciliations found with described in website, including items provide available and may SEC presentation. in and those adjusted results we Our appendix closest presentation section believe evaluating our uncertainties, along were the can of after investors bluelinxco.com. presentation, yesterday statements. most to quarter risks forward-looking financial during our to filings. certain the of includes webcast financial news Investors the the our the close statements Actual differ GAAP of on Today's discussion market, from measures non-GAAP our due business. Form follow issued our various you the for along with our forward-looking are the in Today's webcast. measure detailed slides

over it turn I'll Shyam. Now to

Tom, and good morning, everyone. Thanks,

of margins our strong with in We are the The specialty net sector. interest housing which the our given and product sales. with environment higher products, quarter for pleased third that's results rate building the punctuated XX% about impacting BlueLinx quarter accounted team

And combined Specialty the free Products, continue cash strong to margins in margins We with team our structural solid our when generate in produced business. flow.

new million results completing our to returning by share commitment repurchase relentless to priorities. share announcing to reflect demonstrated company's commitment our by and These our the primary shareholders also clear We authorization. repurchase program $XXX strategic a capital

specialty in outdoor that of and the and also First, the with categories we not which customers. mill X American generate prospects distribution programmatic engineered X-step they long-term sales believe work, will the net consumer, on living industry personal product sustainable industrial are preferences support higher we only results of friendly, manner products, key high-margin siding of focused growing remain wood a profit and all gross our and housing

representing addition quarter our XX% net longer-term furtherance gross goal of profit generated the our of specialty XX% in sales, products to dollars In of and making XX% products of of sales. net approximately third the up specialty

commodity These objectives because our our accomplishing value products confidence the scale, and teams our capabilities and services BlueLinx sell product and to to services suppliers our expanded are leveraging markets. specialty the commitment providing which key selling proposition, our our partnerships We and and in offerings our highlight value-added geographic customers. expanded to are product our product capabilities mix, reach, offering including in faith placed best-in-class includes have our nationwide

DNA and seasonal pricing structure the experience, margin efforts operational drive specialty levels to company. into cost deeper is continue a levels we our with the customer continued line have These demand. Second, and of solid excellence products in procurement and structural to fluctuating of that in in support

year-to-date is conditions. margin which associated top strong inflation are of pressure the We given X%, and on downward SG&A market benefits EBITDA as wage, our believe costs managing we our other adjusted challenging effectively is with

to prepare also strategy are investments our making transformation growth support journey. technology We current a to and for digital

tools, sales, enhance and pricing continue technology general We'll warehouses. For our infrastructure in capabilities, technology of to expanded our our capabilities and analytical upgraded warehouse explore ways hardware data example, enhanced procurement some have excellence operational initiatives. back-office further and and we to EDI strengthened to our leverage our

opportunities and business The expansion M&A through organic new for market via targeting fragmented, we markets by organic future to geographically Third, specialty exploring opportunities on executing M&A. in remain product and are line. potential providing and and opportunities committed remains expansion the industry to the efforts, expansion we grow

the Importantly, creation. is successfully or skills our we sized year which has and teams long-term Forest otherwise geographic ensure well do muscle into period to example joined with Products, potential they deal, to a new expand of a a value reasonably strengths leverage going the and developed great support X integrated to just BlueLinx are to Vandermeer team ago, over of be time. short any both collective the in expansions, markets disciplined of BlueLinx family

Northwest the only to family. the We're has recall, states excellence putting and not significantly relationships center our provided rest to a operational may later, it EBITDA the transaction. A BlueLinx in a Vandermeer serve the of is performing country. exceeded prior of with our our ability by in centralized BlueLinx, all in The operational Northwest grow the they strategic by ways our expectations supplier growth enhancing excellence new focus Vandermeer of capabilities. Pacific also platform is work areas to for our very business growing us you strong time As BlueLinx the commercial for Pacific of joining business from products year capabilities is business never of area the XX giving integrated the and specialty business it for experienced and via to the well

initiatives opportunity philosophy, geographic business disciplined expand reinvesting sales, the grow priorities on which allow strategic capital better are tied us in discipline our while drive to service. to to our Our provide and shareholders. closely return is and with that giving organic us growth This productivity, will allocation reach improve capital focused

$XXX hand. Our of of financial cash million with $XXX including end liquidity third position at the the quarter, remains on record a of strong million

flexibility the the to and grow investments As efficient. business a result, to strategic more be have that designed to make are we

our $X invested capital business. million we quarter, third expenditures the to in During improve

approximately repurchases also under program, complete. returned repurchase million our shareholders share is $XX through $XXX share to million previous We now which

new our growth demonstrating Our further in in performance Board approved confidence has $XXX million strategy. and repurchase our a share of our Directors recent authorization, long-term

Now moving quarter on results. to our third

tail not industry. comparable building last quarter tough, have repair just is at year-over-year the and was been and year comps of for end but the the interest slowing and in boom. challenging. low business As activity, pandemic-induced environment everyone you interest us of housing The the rates all products for housing know, With remodel housing rate the starts and a higher rate current

current I quarter Fortunately, year-over-year with our and we financial in evidenced as Naturally am teams solid pleased our customers have efforts partners, and our to comparisons faith and however, in team's serve markets the enable confidence tough effectively to as placed environment a with a then, the solid our performance. supplier with the very for the us shareholders BlueLinx, combined headwind. compete in by deliver

grow driving solid returns net structural the business. to of Adjusted market XX.X%, on at $X.XX their the $XX delivered position and matters so a specialty they success, and the sales third producing long-term EBITDA net are generated win working or be our million million structural and and dealt XX-XX margin million teams to adjusted the in ensure and products and can delivered. value-added pricing net $XXX $XX solid at with invest success XX.X%. the that with performance we mix. margin year was Our committed capital profitable sales X.X% products we're generating sales, can to specialty specialty customers our more commitment to product highest quarter conditions product solid in We clear, gross level We results and EBITDA to successfully is attributable our of to deliver to relentless To their in share. approximately we per and what adjusted our hence teams income ourselves

to and factors management, our sequential Our effective of to which were improvement commercial and contributing second points pricing on quarter. focus cost operational XXX basis excellence the led margin from

has capital products have million category. the working cash $XXX reduction significant reduced inventory on Year-to-date, flow. generated coming focus with operating in by specialty continued Our the improvements of our over from most we

generated flow third the of in also cash We free quarter. million $XX

As volume consistent XXXX, product the the detail, Andy remained average products discuss will That in of with quarter. daily said, quarter, declines specialty during some quarters the deflation second second similar we categories. volumes and further in and third our specialty experienced in first to

the Now products and our on turning housing to market. perspective broader building

many is lower the recent past have suggesting to and the predict This for It to less during making to momentum the early causing it's Builder is stubbornly cautious the as which housing a consumers, years. fourth elevated X deceleration environment, remodel decreased rates ahead of macroeconomic particularly be in home months forecast and Looking industry the XXXX, continued high. spring and difficult levels sources first-time industry summer. quarter muted. and increase has buyers. is sentiment continues overall observed Repair interest remains affordable of than pricing the to be rate in be in are to mortgage positive into the spending

have we smaller to which although are albeit we fund However, maintained said, we demonstrates and the Specialty throughout as levels recent seasonality, first quarter. for they're X believe line volumes during high, declined compressed historical saw owners are daily margins down margins projects, October, further home what slightly prices of equity daily to weeks normalization. QX, have repair compared Structural remain ones. Through solid volumes though higher. the That with slightly Products, in allowing remodel

tough results outlook and efforts, despite activity undersupply In BlueLinx. We're comps. expansion environment housing believe in The strong home equity near-term the building uncertain, products continue priorities long-term the repair also of year-over-year good investment on quarterly generation allocation and the building high products remains housing summary, Although and performance, capital challenging we progress solid industry focus. aged our our prospects should still stock, margin for of product the same-busspecialty justifying shifts, supported fundamental demographic and as benefit strategic strategic homes, thereby cash delivered levels industry, and initiatives. of financial making we the necessary to

managing us BlueLinx We of normalize. operating as maintain product cash building the to light discipline, strong economic uncertainties continue key sector proactively continues to price serve well flows, the and cost housing macro strengths lingering and working possibility our an of and of generate slowdown. discipline our will capital This the to in while

combined suppliers we has the transformation the position acquisitions, markets of As selectively has to and its well our met organization, also the flexibility with heartbeat. long-term to position and have to tenacity macroeconomic for strategy me to business make return management associates run the opportunity strategic our an strategic and long-term prudent with their spirit which few to be like of a to a of our while advantage a our business environment the in while associates, of direct customers country meeting business, our their us fellow these I'd the to by insights. the digital housing feedback efforts with that expand the underlying in many able a conditions pulse with we business customers when allows challenging the continued balance us thanking them suppliers. valuable providing Meeting make to BlueLinx the shareholders. growth. dedication the our geographically industry us to that of decisions the sheet of addition investments business reinvest provided grip, and my prospects that And provided with pursue allowing are to months, to provided strong of housing across support to for result informed the close in the challenging to pursue all to of support continued end teams I've fundamentals competitive and so last capital in for to to to and feel company take full better in in our by customers

better. our be to and for thanks enabling customers So to suppliers us

commitment dedicated so experience pride me to day their great the by of without their being to goes are teams and on feeling palpable. our a is sense enhancing team. customers as Not a Our customer privilege

results to provide and who Now over will our I'll capital Andy, financial details more structure. it turn on

morning, and Thanks, good Shyam, everyone.

Net wood-based go sales highlighted products specialty to volumes. prior first for and delivered declines product the quarter. quarter consolidated million, volumes. Specialty XX% to XX%, and deflation due down combination significant year Let's a in structural prices by commodity the Structural sales strong $XXX down were lower year-over-year also in from lower through XX% product third and both year-over-year. of due down categories. Overall, were sales were results, we margins the highlights solid our

demand the to As price that important year-over-year business. and of it's the significant third experiencing the when comparisons, XXXX, out we of reviewing across in quarter a reminder, inflation levels were unusually point high

basis was we SG&A income financial So with Total was $XX.X period. XX.X%, quarter generated profit the gross diluted delivery we net $X.XX the period the $X.XX the prior diluted per are are with by prior was EPS Net XX income share. million, lower costs expenses per gross offset $XX.X pleased points and significant, this million year was higher and as the and margin market $XXX share. were $XX EPS recent was was results acquisition. variances while conditions. million, from due was down flat considering Vandermeer operating million quite adjusted to year Adjusted

line tax XX% The fourth EBITDA to anticipate And rate expectations. in the was tax quarter our third quarter was of the million sales. for XXXX, with XX% of $XX be XX.X%, rate or Adjusted X.X% range. in we our net to

XX% Turning Products. a decline year-over-year. million, margin was combination million, product This range Net X down with for and XXX of volumes strong the down profit a year, now Specialty from driven down Product seasonality. XX%, to down quarter $XXX was margin with compared categories. Specialty of third year. Product in of results were XX% the sales daily to sales year-over-year. by gross slightly the Gross in the quarter Through first several of lower this QX, historical but weeks volumes but gross across XX% line specialty Specialty $XXX points third was XX.X%, from margin, basis to Specialty deflation last sales was

decrease was of of as and with XXXX. Now observed were margin same primarily on prices about in to down lumber gross last X,XXX $XX and as average compared million, year-over-year per due Gross prices XX.X%, compared products and quarter. significant structural sales helped the third X% quarter profit X% second feet to XXXX, panel was the were volume. feet, products. In third period. prior XX%, of XX% square The sequential decline well This consistent year-over-year, to XX% observed the a respectively, of Sequentially, a the was composite the moving up the panel comparing Structural $XXX Structural the board and to in XXXX, and decrease a structural XX% were $XXX the from $XXX and quarter third lumber year. quarters year the prices increase million, thousand period per average prices these respectively. in decrease, support averages about were margins Net

quarter per last further panel and feet, $XXX first of the third lumber X week board and respectively. However, finished $XXX per prices quarter have and the prices XXX, and These and declined at in respectively. fourth weeks throughout are X,XXX $XXX declined square thousand of the September the feet now

daily team Through to of third year. volatility QX, the centralized purchasing inventory the Our weeks through of does strong structural adjustments. manage from could net margin Products Structural the slightly that commodity job low. sales and arise in cost levels continues leveraging to to excellent any gross to margin first inventory This consignment range reflect volumes compared was our structural utilizing of this risk X% to X pricing keep quarter the excludes XX% with impact and up

at our Looking sheet. balance

strong and Our of strategic execution initiatives remains working the due liquidity excellent of capital. to effective our management

our the $XXX level QX When undrawn of quarter, of record. of million on considering million. cash the third also million financing on QX. of a $XXX our record $XX Total an and third liquidity was increase of at As was from $XXX of the end reached debt, $XXX the debt quarter, net to $XXX hand cash million, capacity million, leases, million end available was including and a revolver hand

net until is XXXX. now leverage have outstanding and Our material X.Xx, maturities debt no we

projects to positioned shape. These are balance our investments highest investments cash return repurchases. Our and strong and and growth capital such combined excellent organic in with include And our support solid well and EBITDA generation, initiatives. strategic share inorganic sheet opportunities, we when as is in our allocation

and free on to flow. moving capital cash Now working

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

capital, quarter a net approximately supported $XX primarily and third to of from related benefit inventory. working reduction by earnings in million generation a was cash Our

third $XXX Specifically, quarter we million over of year. down ended million the of the with the beginning inventory, $XXX from

capital now Turning to allocation.

million in primarily During distribution the which branches. for enhancements quarter, we to spent $X approximately our were CapEx,

upgrades million improvements prior to our month, we under we capital during which market year, open the million and purchased company's quarter, our For complete. Also last around to program, third now approximately $XXX share further is $XX remain on expect as facility focusing transaction million, through stock still an common of $XX repurchase our the of fleet. investments

approved repurchase authorization, shares. market mentioned, be As has plan Shyam to another we when repurchasing opportunistic Board the the million and share in $XXX

second million reminder, this years. X a last repurchase the As in is $XXX share our authorization

for geographic principles strategy M&A expansion allocation maintain capital guiding as which pursuing return cycles, We capital Our remain disciplined intend well consistent. to as business enables invest a sheet, us economic balance to strong shareholders. our to and through in

We target our strong free when are highlighted cash we also the our results, challenging especially margins quarter environment. or Overall, Xx net with considering leverage maintain plan flows, by to pleased less. of third a and long-term

balance our new strategy share and questions. repurchase us to well sheet further shareholders Operator, our we provide ready strong to authorization. are take positions Our as by evidenced now return execute our on to

Thank question question-and-answer you. a with Instructions]Our Ladies conducting be and Greg Group. Palm gentlemen, comes Capital Craig-Hallum the line we will of from session. now [Operator's first

little wanted with line QX. suggests more commentary. bit of I to guess October a the volumes outlook of I start less with that in or It

that Just December I volumes of to likely and is be normal? versus assume trend November clear, months in would the October. lower

that point, versus expect sure maybe should to trends I normal maybe in thinking seasonal I into the mean we just So was about right. be get QX? I wanted QX

outlook a now question. market, quarters, mean, I Greg, we've the in of month. some to would a our we And -- what is I'd and reminder, quarter. trends the second when see in our say, third we we October this third pretty terms about then aligns is experiencing in right would as the point, of Andy. we so a November on as in normalized to generally you're But great that It's which seasonality. that dip we're trends think are December, a the seen out certainly have volume look and I decent. still normally the and as with were highest say And close October, more

So with quarter trying the third we the to message quarter certainly would line expect, quarter say, in would We're fourth of the fourth I not to in be in would line. terms profitability. be

Yes.

there do then that on highlight certain margin curious, maybe within higher-margin just be it be say, versus and growth focusing I'm think there, Okay. product Understood. it whether long specialty focus about a term, within of was, of how whether And are higher-margin categories more, that, on lines I'd you're the higher kind again. you And gross lines product opportunities? kind the

Yes.

great look frame we the is in Another question. XX.X%. certainly it way was I'd when The margin third it the at so year the at specialty mark a high quarter, far of

or XX% we As we to in mentioned, thought saw quarter, look the of sort fourth we trending as we it's to XX%.

well say, some with think some of a have volumes But of slight would I lines, dip. the those those as And modest I'd volumes. siding millwork trend sort of EWP when about to I do continues say well, profile. X have pretty helped the I X in focused are really those quarter. performed on ones would mentioned. certainly that X the we all the say are those But But categories we're helped consistently margin the So

sales the customers Yes. capabilities and we're margins, make and the it and we offering we're those sure And strategically pricing characteristics mean, while about competitively just provide charging appropriate service as pricing based product to on proposition our we're to leveraging to I to thinking selling our then that, add price service for that by relates our to.

then deals the objective. -- who us those get product those don't. ultimately, about creation, long-term helps in we better what that is sales on who execute which portfolio more growth And of value and from diversified us the successfully buy than are context basically, thinking So

comes with question Reuben next Benchmark Company. from Garner Our

heard on bit So we're commodity things the throughout that maybe starting a business, your the we more to side competitive. get of little quarter,

for better in see think I are a thinking that? is you you've I I feeling Are had quarter, someone that defend XX% that? but to was thrown think touch the around still the just aggressive that the part seeing about guys maybe fourth industry. business? from about in your How you margin. at how kick-in and to of kind of through in you below X% position? share guidance piece Have you share versus very your me any strong of if walk structural margin gross you're But

Sure.

little October. first fourth the as take there What I'll certainly say a quarter been go that. at into where in stab quarter. compression gave in on the terms ended we So structural, bit of comments, of has the in in of to margin would my go a fourth I from of some a I September sort framework where or And we we're trending

is look or so. I'd say, drop off when at We've a bit. over real last, X So it some frankly, lumber here decent panels, we down seen in weeks and pricing, the

to same sequential. As modestly the it Greg, wouldn't that much structural from Again, to would relates volumes November that, October basis of of December. low I this up, sort though, year, expect do in I where I October, the see say, that sequential I in I'd comments the mentioned first digits, a volumes, in weeks same sort that on but X and into seasonality are would we as to then -- of it's normal read mid-single a drop-off good call too volumes, to say up it,

business one. Yes. Look, of important structural the piece an is our

specialty of end. successful the from business management to that they need advantage of believe our consignment, order an the structural mix. net that program, the we needs great sales of which XX%, But of strategic of overall our on We are piece direction a way and our and in us ability sales XX% through obviously to support structural to management their achieving use we -- be inventory really centralized where given take drive perspective really growth XX% in gives to moving the in our customers, customers

we business. back our seeing tick piece it's volumes those So up compression, because mainly core margin a despite the are of

specialty. is focus the So on

that any housing assume comments to I specialty challenged that recognize opportunities in the sort space instance, a that Is is side, stock assessment? and R&R living, thing. you so home equity And outdoor fair near But aging new there. area, term, that I I particular others, that categories on have? than would other of longer-term than of are think and construction. a seeing are any exposure exposure the product more little the better And And about you levels versus doing that bit or maybe more for

Yes.

impact So it lowering repair/remodel That obviously, heading as the adverse feel little to at product yes, of the we the relates I activity, or being in into as mean, cycle. play we'll we look many year. outlook some construction said, next of a our layers muted diversification, do the

So to the extent home there are the changes repair past just that being decline made we're comping same favorably. be will or than to market still in sacrifices be at performance suggests smaller actually and being the made, because product and levels projects we relative diversification feel the our maybe time, like there'll But It activity. are the equity our high. remodel

market as much. So that because mix. that down, down I if of coming truly comes And is the believe not we're product our case the

which -- that what we or there's are focused example, like point the are I and that a depending starting of areas on that those But the -- we'll products numbers the it. we for to your have and lag, point, they it millwork can contributes in American think which talked off living to the push products but absolutely we're category about could sell X a be siding -- through for quarter experienced those or we on. QX. the in within instance, So living one outdoor Outdoor price on market, to we've something wait uncertainty a past, is puts multiple is we the to consumer wants. it of EWP their homeowner focused maybe continue as own And in

beyond, as there's areas any much see we the going pressure are into conversely channel And in within any there into categories, pricing in very where you go environment? is where product in inventory any too bear specialty or might softer a and places to 'XX be rebuild your have there 'XX you'd maybe and some -- that

inventory as manage And not eased. as chain our strategically. no, Look, all. supply constraints the far have we management at muscle, No. But very

going to appropriate focused actively off are then have make the inventory are inventory needs. market, We on to meet we customers' things the sure levels to it our quickly to there management capital as in in generate the very act And Andy... as our relates extent that on cash year-to-date to in appropriate working performance of the let we I'll evidenced sort management, balance the manner sheet but

Yes.

detail thing would think only just just inventory more more just first the our about I year, bit million. X there we little to through echo reduced quarters is inventory as think I add a of isn't this about say the the we've of $XXX ready room But into into as more as about be There where incremental new are a maybe could slight to think inventory much go levels year that go. year-end. and go we are feel for we 'XX. our we the really good we

around enable very managing smartly and effectively really do quite believe -- efficiently the and developed our will capital us our that muscle Look, Yes. business. working that I strategy is to we've And our grow frankly. this to

luck Great. through the year. the of balance Good

Thank you.

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

curious, maintain specialty in last I pricing being that's how with Shyam, point margins business. do the kind focused I balance just just because that's in the wanted to stick desire consistently. last lagged to and the of that I'm guess on pretty area And an growing the several you terms on volumes discipline been years, of

that or can margin if just going on be the curious focus whether both you of a think potential? do volume in terms detractor might forward So you side

don't they're mutually propositions. Honestly, for It's one. thanks a exclusive I great the No, question. Yes. think

great we stockholders. and discipline. closely we together pricing where said, We're about to we've sure and local can and strategic to do absolutely across appropriate build work programs price will competitively, margin, pricing our for discipline got we within all charging way I the make do that business about grow do we governance, And all make we're our customers the with example, sure transactions like the pricing we stakeholders for other given our talk in businesses really and this service pricing talking of want the fall I value think guidelines and the locations losing suppliers employees that both. by offer, very respective create a our proposition in to place we pricing believe we're because our of when and not capabilities manage we that

if market construction not respect fact, declines of completions, starts, how they and with permits, -- the in look volumes cetera, are et context as our as bad our In activity you trend to the declines. at

fact, they're much In better.

differently, trending so And stated we're favorably.

-- losing suggests want that that don't mean, we're not that we business I there lose. So in to statement the

me. and and got relative QX. at doing underperformed ball a we have on to improvement, in on in really we in teams on I our customers discipline think in service we I while well, a and underperformed commercial and and puts good sure win-win look, way both operational our suppliers volume-wise, pricing actually QX QX. for our providing. ourselves. if you share profitable excellence but look to basis the maintaining in grow But for figured excellence, and believe the QX, got And together eye numbers, So our successfully position excellence, a our room that -- a pricing out in there's we're That's really that's that us transition, the act for always around off make our executed and a look, procurement focus we're

it. Got

Okay. No, color. helpful that's super

front, there, mean as as I platform. a out these lot trading see allocation own do at desire the you capital on weigh the well with capacity the I kind to buying have just kind that levels, you're just back which On business, the to in M&A grow set stock your of guys how basis. recognizing given a you of valuation opportunity do of mean reinvest where you versus the

where sub we long-term great when we is in basis, shares let's look multiple. say, at a a levels. at I we trade think business buy about on I to would mean in feel really it's of a Xx multiple our trending and simply, today, these certainly comfortable it's Kurt, able our say being back What Yes. question. prospects, our terms

sort then it's that. So hard And good we Xx are deals in is slightly really M&A, the the that in find feel below frankly area. about trading to of or even of context

bring if and -- terms there look Vandermir what of in we exclusive terms that to turned year. look back a be it when mutually say in processes especially as some That's the because synergized will terrific us, So BlueLinx not for of of say, to at you I deal we over on do our into, centralized we're basis to able family. look when it's last I'd the we out a

have we another to in the could context has find balance all where today in really sheet we and we year-end. if feel at would where the Now But mirror, the do sits business banner means, because comfortable terms that. we by visibility normalized X.Xx of -- of

to feel think for we of the we don't sheet We in need new it at So to terms balance end leverage will is this whether because at have authorization comfortable year-end. do us appropriate now X.Xx.

So how trading. think we're effectively we it's considering appropriate,

as just relates add -- reiterate mean, growth it as I a on, strategy. to to is of And our M&A, that it core let me element

to making the grow addition investments to In organically. business

spreads. muted excitement the So there's by our Though a opportunity little out bid-ask there. been has initial

start they're we I for spread think M&A can pipeline multiples very opportunities return we've come in to, some I advantage risk in our we there like we overall bid-ask might multiple type pay high, strong deal will these that standpoint, of said, that capital outlook But seeing The The work remains a now once of. to strategy. as like said, do to the of view. is also the we'll allocation from we're robust, coming in, and the compress, alluded we light in disciplined but down. take be I be the And continue they're which it. numbers However, XXXX means

Right.

that. then Are of product of category perspective platform appreciate geographically expanding and drive more and those particularly 'XX? in you're vendor I That's just a above-market relationships about curious there in expansions specific I'm any in any the there. more terms whether across next lastly, of the in potential to helpful. areas kind of opportunities the year, from terms Okay. And where excited growth

that Honestly, are Absolutely. in will us. now, in the engender about and our support. folks can support management the on much And product sales so faith anybody them side. who those in It's right, teams confidence do. on team that can the only faith coming doing be out and but or There's I us management the I wish our work great there I about could do, the teams to talk and suppliers have them announcements will really

new all product key expansions categories that are of X to yes, excited product markets on into existing are that front, about long-term specialty more existing categories. strategic our very examples So produce And with in there vendors. we will come of but the those opportunities growth

here Well, in I keep good and we'll the an guys, Perfect. Okay. appreciate and for QX. luck out color, that, eye

Stevenson is question next Capital from Loop with Markets. Our Jeffrey

talk in And product starts volumes was the could quarter increase in during your specialty summer? core how quarter categories. the demand this did in you as any housing single-family X I if progressed wondering specifically, about pickup more So you see the from trended

trends, again, in our pickup relative as as if each seeing, the through the we in least favorably home. single-family really up that first I QX structural, was to looking alluded decline actually market see Andy in volumes. construction I At the the -- at in with flow P&L was said operate although generally up key specialty of for course a -- at you're before, -- we our categories, believe the products sort But There time, think And we picked product trending in our a as did of in of to which QX through yes, started volumes in relative of with play we're QX, picking to every the us one QX. I X earlier, quarter, we a sure. in -- alluded to a them, X are volumes weeks allows of the with to about there Yes, of we to of from terms in the volume. earlier, product like stage diversification same markets of X

So key just disproportionately it's teams categories to other. these we're to focus on doing a and market. have as better I the opposed relative And one testament getting the product specialty think we're X our to we to relative

just a I it to TLE perspective, siding. have maybe would were Jeff, is, like But would millwork little from pretty bit at if look been EWP handful we a more color. just a volume what that perspective mean favorable in a were I from say

color. That's continue residential specialty of then And that. appreciate guys normalized you this to levels hold I strong previous they above helpful had quarter challenging very and it. another environment. product well in Got margins

wondered year level? the this Just really held if in XX% further were at strong that to results confidence above this you that gives margins how XX% specialty quarter or normalized and they've

Yes.

the I right range. be seems think it to

third test that well, the of XX%. from to this looks through the our in But we bit gone gone has guidance particularly profile as XX% sort like. think really we margin or quarters, a sort XX.X%. of I'd we've normalization expect in quarter we've was of As XX.X% here held new first softness little as fourth and what between

so speak least themselves, feels zip for And I year, and code. right like this for the think at results it of sort the

your share will it sense. if allocation the stock? No, you Or But just the buying you magnitude update standpoint, why acquisition, of makes about authorization the if shares forward? moving feel there that right back kind thinking that you of are the kind isn't from be Then lastly, from thanks makes new are your sense. just share how million capital you of for repurchases in of on aggressive undervalued, repurchase have $XXX kind

sort are. to Well, first of have the we I $XXX the of in think put million context we where

of it, XX% our to And between so call cap. XX% is, it market

amount. meaningful a that's So

fairly authorization market that we as think given go it's the they be we reasonable I sit I and conditions, remain could of think that, decent end XXXX. here through done today, as if

We one. we have to before the about first additional first one an get to talk

then next that's market I'll well. we'll and be I But our at tell quarter going as to as looking mean, So is how But this be that the of through do conditions important well. year. you, for let's see over us focus intent go. M&A to an the course

And balance it be will between the so a X.

you. Thank

As hand I closing to the conference for are further questions, over no Tom there comments. would now Morabito

look for our and we with Thanks, Ryan. you full again in and forward we Thank fourth today, XXXX speaking quarter joining share us results. you year February to as

your of BlueLinx you. now Thank Thank has Holdings participation. conference for concluded. The you

You may lines. your now disconnect