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BuildDirect Reports Fourth Quarter and Year End 2022 Financial Results

General News
BuildDirect Logo - Retail Lumber Yard Technologies Inc. (“BuildDirect” or the “Company”) a leading omnichannel building material retailer, today announced its financial results for the Q4 2022 (“Q4 2022”) and full-year audited financial results for the year ended December 31, 2022 (“Full Year 2022”).

“We are pleased to announce Q4 2022 results, which further strengthens the progress the collective team has made to achieve profitability and structured, strategic growth which started in Q2 of 2022,” said Shawn Wilson, CEO of BuildDirect. “Overall, BuildDirect demonstrated a strong financial performance as highlighted by its adjusted EBITDA of $1.3 million for the full year of 2022, up $5.3 million as compared to the previous fiscal year.”

Q4 and Full Year 2022 Highlights

USD$(unless otherwise noted)Q4 2022Q3 2022% ChangeFull Year 2022
Revenue$21.7 million$22.0 million(1.4) % $92.2 million
Gross Profit$ 7.9 million$6.9 million14.1 %$32.0 million
Gross Margin36.4 %31.4 %5.0 %34.7 %
Adjusted EBITDA1$0.4 million    $0.3 million39.8 %$1. 3 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.
  • Total revenue of $92.2 million for the Full Year 2022, an increase of 1.6% year-over-year, largely driven by immediate revenue contribution from the acquisition of Superb
  • Independent Retailers segment contributed 67% of total revenue and increased by $19.9 million (48%) year-over-year, largely driven by the immediate revenue contribution from the acquisition of Superb
  • Full Year 2022 Pro revenue reached $77 million, representing 84% of total revenue at the 2022 year end and year-over-year growth of 35%, driven by overall shift in strategy to focus on the more profitable Pro Customer base.
  • Gross profit of $7.9 million in Q4 2022, an increase of 14.1% quarter-over-quarter while gross margin percentage in Q4 2022 increased 500bps quarter-over-quarter, driven by the increasing focus on the more profitable Pro customer and improvements to the BuildDirect’s e-commerce product margin.
  • Adjusted EBITDA of $0.4 million in Q4 2022, an increase of 39.8% quarter-over-quarter while Adjusted EBITDA for the Full Year 2022 reached $1.3 million, an increase of $5.3 million year-over-year, largely attributed to the change in strategy to increased focus on the more profitable Pro Customer base.
  • On December 28, 2022, the Company announced the amendment of secured notes issued by BuildDirect Operations Limited, a wholly owned subsidiary of the Company (“BuildDirect Operations”) to: (a) Deans Knight Capital Management Ltd. in its capacity as portfolio manager on behalf and for the benefit of two fully managed accounts in March 2018 (the “2018 Notes”); and (b) Pelecanus Investments Ltd., Lyra Growth Partners Inc. and Beedie Investments Ltd. in June 2022 (the “2022 Notes”).
    • The 2018 Notes were amended such that (a) the maturity date was  extended to December 31, 2023 (b) the interest rate applicable to the 2018 Notes was adjusted to the greater of 15% and CDOR plus 10% effective January 1, 2023; (c) BuildDirect Operations agreed to make certain quarterly payments towards the aggregate outstanding principal amount of the 2018 Notes commencing January 1, 2023 (the “Quarterly Principal Payments”) (d)  BuildDirect Operations agreed to pay fees in the amount of (i) between 3% – 9% of the Quarterly Principal Payments which fees are payable by the Company on a quarterly basis commencing January 1, 2023 and (ii) between 3%- 9% of the then current outstanding principal of the 2018 Notes subject to timing for payment in full of the 2018 Notes and (e) BuildDirect Operations agreed to comply with certain operational covenants in relation to itself and its related entities.
    • The 2022 Notes were amended such that (a) the maturity date of the 2022 Notes was extended to April 1, 2024 and (b) the interest rate applicable to the 2022 Notes was increased to 15% per annum effective January 1, 2023;
  • On December 30, 2022, the Company closed the first tranche of a  non-brokered private placement (the “Private Placement”)  pursuant to which the Company issued 4,283,785 common shares at a price of CDN$0.37 for total gross proceeds of CDN$1,585,000

Subsequent Events to Fiscal Year 2022

  • On January 3, 2023, the Company announced the close of the second and final tranche of the Private Placement pursuant to which it issued 1,121,622 common shares at a price of CDN$0.37 for total gross proceeds of CDN$415,000
  • On January 9, 2023, the Company announced the change of its auditor from KPMG LLP to Grant Thornton LLP
  • On January 24, 2023, the Company announced that its wholly-owned U.S. subsidiary, Superb Flooring Covering, LLC integrated the Enterprise Resource Planning system of RFMS Inc., a leading business management software provider in the flooring industry, to leverage its robust features in managing key business processes
  • On January 26, 2023, the Company announced a partnership with Maverick Design, the award-winning interior design studio at Wedgewood Homes, a division of Wedgewood LLC to launch a white-label marketing program for a collection of quality Maverick-branded engineered wood floors – The Maverick Design Wood Flooring Collection
  • On February 6, 2023, the Company announced the appointment of Eyal Ofir, Director of BuildDirect, to its Audit Committee together with the resignations of Natalie Ku as Chief Operations Officer and Julie Todaro as Director of the Company
  • On April 3, 2023, the Company announced the appointment of Jay Allen as the General Manager. Jay has deep experience in the apparel, home goods and flooring sectors. His experience includes direct-to-consumer home goods sales as well as direct to the trade digital solutions. He also brings experience in growing early-stage companies to maturity and has established a proven track record of scaling multiple e-commerce businesses to reach profitability.

2023 Outlook

The Company aims to advance its current strategy of growing the more profitable ‘Pro’ customer base, which includes a focus on brick-and-mortar operations and providing additional value-added services that are designed specifically for Pros. Furthermore, the Company intends to assess opportunities for accretive acquisitions of Pro-focused independent retailers across North America that have extensive client networks, in addition to reviewing incremental strategies to extend the BuildDirect brand and generate operating leverage.

Pro customers provide higher long-term values as compared to other consumer segments due to their recurring large purchase orders.1 They consist of home builders, realtors, multi-family and commercial real estate development companies, flooring contractors and other types of home improvement professionals.

In addition, the Company also intends to streamline its operations by unlocking operational synergies across all business units to improve its profitability.

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 audited consolidated financial statements for the years ended December 31, 2021 and December 31, 2022 and Management’s Discussion and Analysis for the three and twelve months ended December 31, 2021 and 2022 are available on the Company’s website at www.BuildDirect.comand on the Company’s SEDAR profile available at

For the full fourth quarter results, 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

Source: Technologies Inc.