BuildDirect Announces Investor Webinar and Provides Corporate Update
BuildDirect.com Technologies Inc. (TSXV: BILD) (“BuildDirect” or the “Company”), a leading omnichannel building material retailer, is pleased to provide the following corporate update.
BuildDirect Investor Webinar
The Company will be hosting an investor webinar on Wednesday, January 18, 2023, at 1:00 PM (EST) to discuss BuildDirect’s key business highlights and growth outlook for 2023.
Date & Time: Wednesday, January 18, 2023, at 1:00 PM (EST)
Speakers: Shawn Wilson, CEO of BuildDirect and Matthew Alexander, Interim CFO of BuildDirect
Click the link below to register for the webinar.
Adjusted EBITDA and ‘Pro’ Customer Revenue Growth
The Company achieved substantial EBITDA growth as highlighted by the Company’s adjusted EBITDA of US$0.86M for the 9 months ending September 30, 2022, an increase of 211% as compared to the same period last year as a result of shifting its focus on the ‘Pro’ customer market. Additionally, the Company’s Q3 2022 Pro revenue of US$19.4 million, which increased 5.6% quarter-over-quarter and 19.6% year-over-year, underscores BuildDirect’s ongoing efforts to grow its Pro customer base (see the news release of the Company dated November 16, 2022).
Operating Cost Reductions
As part of the Company’s Pro-focused sales strategy, the Company has made cost reductions in the third quarter of 2022 by decreasing its marketing spend and fixed costs which are expected to reduce annualized operating expenses by US$2 million without affecting BuildDirect’s Pro revenue growth (See the news release of the Company dated November 16, 2022).
Focus on Growing North American ‘Pro’ Market Share
‘Pro’ customers consist of custom home builders, property investors, realtors, multifamily and commercial development firms and flooring contractors to name a few, and account for more than 50% of the $71 billion U.S. flooring industry.1 In addition, Pro customers tend to make recurring large purchase orders, which results in higher long-term value per customer as compared to homeowners.2 As a result, the Company intends to scale up its North American Pro network by exploring the expansion of its local sales team and improving its product and service offerings that are suited for Pro customers while maintaining cost-efficiencies.
Furthermore, the Company also intends to pursue the growth of its ‘Pro’ market share through continued exploration of Pro-focused acquisition opportunities across the United States and Canada. On November 17, 2021, BuildDirect acquired Superb Flooring & Design LLC, a full-service flooring retailer based in Michigan, United States that serves Pro builder customers across the U.S. mid-West (see the news release of the Company dated November 17, 2021). The Company plans to evaluate similar M&A targets that present the potential opportunity to increase its Pro customer base as well as generate additional revenue and EBITDA.
- Floor Covering Weekly; Vol 69 No 16; Jul 27, 2020 | Catalina Market Report, 2022.
- Internal Company Estimates
Additions to Leadership Team
The Company recently appointed Shawn Wilson, a home improvement veteran with over 20 years of flooring experience, as the CEO of BuildDirect and Matthew Alexander, a corporate finance expert with roughly 15 years of financial, strategic, and operational experience as the Interim CFO of BuildDirect (see the news release of the Company dated August 30, 2022).
Under the new leadership, BuildDirect aims to advance business verticals with the goal of streamlining its operations, driving organic revenue growth, and improving the Company’s overall profitability.
As noted above, the Company aims to execute the following strategic initiatives:
- Focus on Pro customers with the goal of accelerating organic revenue growth
- Exploring opportunities to acquire Pro-focused retailers across the U.S. and Canada
“In 2023, we will continue shifting our focus to targeting more Pro customers with the aim of not only increasing our revenue growth but also, improving our bottom line,” said Shawn Wilson, CEO of BuildDirect. “The North American Pro industry represents a significant market opportunity, and we intend to pursue growing industry segments and product and service opportunities with our Pro customers.”
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.
Source: BuildDirect.com Technologies Inc.