BuildDirect Reports Third Quarter 2022 Financial Results

BuildDirect.com Technologies Inc. (“BuildDirect” or the “Company”) a growing omnichannel building material retailer, today announced its financial results for the Third Quarter 2022 (“Q3 2022”).

“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

• Q3 2022 Pro revenue reached $19.4 million, representing 88.2% of total revenue at the quarter end. Pro revenues grew 5.6% quarter-over-quarter and 19.6% year-over-year due to increased strategic focus on driving Pro market share.
• Adjusted EBITDA in Q3 2022 reached $0.3 million, increasing $0.9M year-over-year. BuildDirect achieved improvements in the adjusted EBITDA primarily by reallocating resources to the Pro market.
• In September 2022, BuildDirect completed a non-brokered private placement offering of 6,847,830 common shares issued at a price of CDN$0.46 per common share for total gross proceeds of USD2,469,916 (CDN$3,150,000).

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.

For the complete press release, click here.

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. For more information, visit www.BuildDirect.com.

Contact:

Matt Alexander – Interim CFO – ir@builddirect.com – (778) 382-7748

Source: BuildDirect.com Technologies Inc.