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BuildDirect Reports Third Quarter 2022 Financial Results
Tuesday, November 22, 2022Company Profile | Follow Company
Delivers positive adjusted EBITDA of $0.3 million, up $0.9 million year-over-year
Pro customer revenue increases to 88.2% of third quarter revenues, up 5.6% quarter-over-quarter and up 19.6% year-over-year
Vancouver, BC, November 22, 2022--(T-Net)--BuildDirect.com Technologies Inc. (TSXV: BILD) a growing omnichannel building material retailer, today announced its financial results for the Third Quarter 2022 ("Q3 2022").
Shawn Wilson, CEO, BuildDirect
"I am pleased to report that BuildDirect continues to grow its Pro Customer base, increasing Pro revenue 5.6% quarter over quarter, and maintaining its positive adjusted EBITDA" said Shawn Wilson, CEO of BuildDirect.
"Our strategic execution is delivering value with revenues reaching $22 million, of which 88.2% are Pro-based. We also recorded our third consecutive quarter of positive adjusted EBITDA, largely due to our push to reallocate resources to Pro customers and to drive acquisition synergies. Looking forward to the fourth quarter of 2022, we will continue to hone our fixed costs and marketing strategies to pursue continued improvement of the Company's overall profitability and growth prospects and leverage our omnichannel business to service growing industry segments and pursue product opportunities for our professional contractor customers."
"In Q3 2022 the Company made cost reductions which are expected to result in approximately US $2 million in annualized operating expense savings. The cost reductions were primarily focused within the BuildDirect ecommerce business as the Company continues to shift its focus to the Pro market segment. The cost reductions are not expected to significantly impact our Pro market segment and will improve overall profitability" said Matt Alexander, Interim-CFO of BuildDirect.
Third Quarter 2022 Financial Highlights
USD$ (unless otherwise noted) |
Q3 2022 |
Q2 2022 |
% Change |
Q3 2021 |
Revenue |
$22.0 million |
$24.1 million |
-8.5 % |
$22.3 million |
Gross Profit |
$6.9 million |
$8.4 million |
-17.8 % |
$8.1 million |
Gross Margin |
31.4 % |
35.0 % |
-3.5 % |
36.4 % |
Adjusted EBITDA1 |
$0.3 million |
$0.6 million |
-52.4 % |
($0.6) million |
1Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS Measures" in the MD&A and the reconciliation to the most directly comparable IFRS measure below. |
Q3 2022 Highlights
Actual results may differ materially from BuildDirect's financial outlook as a result of, among other things, the factors described under "Forward-Looking Statements" below.
BuildDirect's unaudited condensed interim consolidated financial statements and accompanying notes, and the Management's Discussion and Analysis, for the three and nine months ended September 30, 2022 are available on the Company's website at www.BuildDirect.com. and on the Company's SEDAR profile available at www.sedar.com.
About BuildDirect
BuildDirect (TSXV: BILD) is a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations, and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect's growth trajectory, strong product offering, and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry.
Reference is made in this press release to the following non-GAAP measures: Adjusted EBITDA. These non-GAAP measures are commonly used by investors and other interested parties to evaluate our financial performance and are employed by the Company to measure its operating and economic performance and to assist in business decision-making. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. Refer also to appendix tables, "Third Quarter 2022 Financial Highlights" and "Q3 2022 Highlights" of this press release as well as our Management's Discussion and Analysis for definitions and reconciliations of non-IFRS measures to the nearest IFRS measures.
Forward-Looking Information
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