BuildDirect Reports Second Quarter 2022 Financial Results, Q2 2022 Revenues $24.1 Million, up 0.03% Year-Over-Year
- Q2 2022 revenues of $24.1 million, up 0.03% year-over-year
- Delivers positive adjusted EBITDA of $0.6 million
- Pro customer revenue increases to 82.6% of second quarter revenues,
- up 6% quarter-over-quarter and up 21.9% year-over-year
Vancouver, BC, September 6, 2022--(T-Net)--BuildDirect.com Technologies Inc. (TSXV: BILD) a growing omnichannel building material retailer, today announced its financial results for the Second Quarter 2022.
"I am pleased to report that BuildDirect continues to grow its Pro Customer base, increasing Pro revenue 6% quarter over quarter, and improving its overall profitability" said David Lazar, interim CEO of BuildDirect.
"Our strategic execution is delivering value with revenues reaching $24.1 million, of which 82.6% are Pro-based. We also achieved positive adjusted EBITDA, largely due to our push to reallocate resources to Pro and drive acquisition synergies. Further, at the end of Q2 2022 and subsequent to quarter end, the Company made further cost reductions that will allow the Company to recognize approximately US $2 million in annualized operating expense savings. The cost reductions were primarily focused within the BuildDirect ecommerce business as the Company continues to shift its focus to the Pro market segment. Looking forward to the third quarter, we will continue to invest in the Pro market, extract financial and operational synergies from our acquisitions, and leverage our heavyweight omnichannel business model."
Second Quarter 2022 Financial Highlights
USD$
(unless otherwise noted)
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Q2 2022
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Q1 2022
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% Change
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Q2 2021
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Revenue
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$24.1 million
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$24.4 million
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-1.4 %
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$23.4 million
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Gross Profit
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$8.4 million
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$8.7 million
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-3.4 %
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$8.8 million
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Gross Margin
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35 %
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35.8 %
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-0.8 %
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37.4 %
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Adjusted EBITDA1
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$0.6 million
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$0.04 million
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1195.5 %
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($0.07) million
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1 Adjusted 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.
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Q2 2022 Highlights
- Q2 2022 revenues reaching $24.1 million, decreasing 1.4% quarter-over-quarter and increasing slightly year-over-year. The decrease QoQ is as a result in a change in strategy as part of which the Company is spending less on digital marketing and focusing more on the Pro business.
- Q2 2022 Pro revenue reached $19.9 million, representing 82.6% of total revenue at the quarter end. Pro revenues grew 6% quarter-over-quarter and 21.9% year-over-year due to increased strategic focus on driving Pro market share.
- Gross profit at $8.4 million in Q2 2022, a decrease of 3.4% over the previous quarter, and 3.8% year-over-year
- Gross margin in Q2 2022 decreased slightly by 80bps to 35% compared to Q1 2022.
- Adjusted EBITDA in Q2 2022 reached $0.6 million. BuildDirect achieved improvements in the adjusted EBITDA primarily by reallocating resources to the Pro market.
- In June 2022, the Company closed a secured debt financing pursuant to which it issued, via its wholly owned subsidiary BuildDirect Operations Limited, secured notes to Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Investments Ltd. in an aggregated amount of US $1.5 million.
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 six months ended June 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.
Forward-Looking Information This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof. [ MORE ]
Forward-Looking Information This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. These statements reflect management's current beliefs and expectations and are based on information currently available to management as at the date hereof.
Forward-looking statements in this press release may include, without limitation, statements relating to BuildDirect's ability to take advantage of trends in home improvement investment, its innovative digital and heavyweight supply chain platform and ability to leverage the same, the omni-channel experience to be offered to customers; realization of synergies and overall integration of Superb's operations with BuildDirect (including, but not limited to, Superb's ability to improve service to its existing customers as well as increase Superb's market share in the state of Michigan and BuildDirect's ability to increase its Pro customer base and improve the end-to-end experience for its customers); capturing of additional Pro customer market share; quality service and products; future acquisitions; Superb's potential growth; and the Company's ability to make future payments in connection with the purchase of Superb.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions, including COVID-19.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements.
Although the forward-looking statements contained in this press release reflect the Company's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. There may be other risks, uncertainties and factors that cause results not to be as anticipated, estimated or intended and such changes could be material. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
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