What changed in this filing

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Item 1. Financial Statements

2025-04-29 compared with 2024-10-29 · 198 added, 224 removed, 318 unchanged (57% of the section changed)

1 unchanged sentence

BLUELINX HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Fiscal Months Ended

March 29, 2025 March 30, 2024

Net sales $ 709,226 $ 726,244

5 unchanged sentences

Amortization of deferred gains on real estate ( 984 ) ( 984 )

Other operating expenses, net 888 1,131 1,210 5,240

Other, net ( 2,258 ) 314

Total operating expenses 100,405 100,013

2 unchanged sentences

Interest expense, net 6,580 4,624

Settlement of defined benefit pension plan ( 2,226 ) — ( 2,226 ) —

Other expense, net — 594 — 1,782

Income before provision for income taxes 4,144 23,044

3 unchanged sentences

Diluted earnings per share $ 0.33 $ 2.00

Comprehensive income:

Net income $ 16,016 $ 24,382 $ 47,844 $ 66,660

Other comprehensive income:

Amortization of unrecognized pension gain, net of tax — 225 — 689

Other — — — ( 22 )

Total other comprehensive income — 225 — 667

Comprehensive income $ 16,016 $ 24,607 $ 47,844 $ 67,327

See accompanying Notes.

2 unchanged sentences

(In thousands, except share data)

September 28, 2024 December 30, 2023

March 29, 2025 December 28, 2024

Current assets:

49 unchanged sentences

Compensation related to share-based grants — — 2,522 — 2,522

Repurchase of shares to satisfy employee tax withholdings ( 7 ) — ( 907 ) — ( 907 )

Balance, March 30, 2024 8,662 87 166,503 486,631 653,221

Net income — — — 14,336 14,336

Vesting of restricted stock units 57 1 ( 1 ) — —

Compensation related to share-based grants — — 1,405 — 1,405

Repurchase of shares to satisfy employee tax withholdings ( 7 ) (a) ( 507 ) — ( 507 )

Common stock repurchase and retirement ( 186 ) ( 2 ) ( 15,145 ) — ( 15,147 )

Balance, June 29, 2024 8,551 86 151,279 500,967 652,332

Net income — — — 16,016 16,016

Vesting of restricted stock units 26 (a) (a) — —

Compensation related to share-based grants — — 3,186 — 3,186

Repurchase of shares to satisfy employee tax withholdings ( 8 ) (a) ( 816 ) — ( 816 )

Common stock repurchase and retirement ( 146 ) ( 2 ) ( 15,127 ) — ( 15,129 )

Balance, September 28, 2024 8,423 $ 84 $ 138,522 $ 516,983 $ 655,589

Balance, March 29, 2025 8,120 $ 81 $ 110,973 $ 525,060 $ 636,114

(a) Activity rounds to less than one thousand dollars

See accompanying Notes.

Common Stock Additional

Paid-In Capital Accumulated

Comprehensive Loss Retained Earnings Stockholders’ Equity

Paid-In Capital Retained Earnings Stockholders’ Equity

Shares Amount

1 unchanged sentence

Net income — — — 17,492 17,492

Other comprehensive income — — — 228 — 228

Vesting of restricted stock units 67 1 ( 1 ) — — —

Compensation related to share-based grants — — 4,569 — — 4,569

Repurchase of shares to satisfy employee tax withholdings ( 8 ) — ( 570 ) — — ( 570 )

Obligation for repurchase of shares to satisfy employee tax withholdings ( 19 ) ( 1,319 ) — — ( 1,319 )

Balance, April 1, 2023 9,089 91 203,427 ( 31,184 ) 438,415 610,749

Net income — — — — 24,466 24,466

Other comprehensive income — — — 214 — 214

Vesting of restricted stock units 95 — ( 1 ) — — ( 1 )

Compensation related to share-based grants — — 1,926 — — 1,926

Repurchase of shares to satisfy employee tax withholdings ( 24 ) — ( 2,071 ) — — ( 2,071 )

Obligation for repurchase of shares to satisfy employee tax withholdings ( 10 ) — ( 913 ) — — ( 913 )

Common stock repurchase and retirement ( 142 ) ( 1 ) ( 11,598 ) — — ( 11,599 )

Balance, July 1, 2023 9,008 90 190,770 ( 30,970 ) 462,881 622,771

Net income — — — — 24,382 24,382

Other comprehensive income — — — 225 — 225

Vesting of restricted stock units 7 — — — — —

Vesting of restricted stock units 19 (a) (a) — —

Compensation related to share-based grants — — 2,350 — 2,350

Repurchase of shares to satisfy employee tax withholdings ( 3 ) — ( 281 ) — — ( 281 )

Obligation for shares repurchases not yet settled ( 10 ) — ( 843 ) — — ( 843 )

Common stock repurchase and retirement ( 206 ) ( 2 ) ( 17,720 ) — — ( 17,722 )

Balance, September 30, 2023 8,796 $ 88 $ 174,906 $ ( 30,745 ) $ 487,263 $ 631,512

Repurchase of shares to satisfy employee tax withholdings ( 7 ) (a) ( 907 ) — ( 907 )

Balance, March 30, 2024 8,662 $ 87 $ 166,503 $ 486,631 $ 653,221

(a) Activity rounds to less than one thousand dollars

See accompanying Notes.

2 unchanged sentences

(In thousands)

Nine Months Ended

September 28, 2024 September 30, 2023

Three Fiscal Months Ended

March 29, 2025 March 30, 2024

Cash flows from operating activities:

Net income $ 2,805 $ 17,492

Adjustments to reconcile net income to cash provided by operations:

Adjustments to reconcile net income to cash used in operations:

Depreciation and amortization 9,554 9,433

Amortization of debt discount and issuance costs 332 330

Settlement of frozen defined benefit pension plan ( 2,226 ) —

Insurance recoveries in excess of carrying values of property & equipment ( 2,443 ) —

Provision for deferred income taxes ( 429 ) ( 373 )

7 unchanged sentences

Other assets and liabilities 4,714 19,528

Net cash provided by operating activities 66,434 230,724

Net cash used in operating activities ( 33,908 ) ( 31,135 )

Cash flows from investing activities:

Proceeds from sale of assets 839 191

Property and equipment investments ( 19,830 ) ( 18,938 )

Disbursements for property and equipment ( 5,932 ) ( 5,447 )

Proceeds from asset sales and insurance recoveries 2,540 127

Net cash used in investing activities ( 3,392 ) ( 5,320 )

Cash flows from financing activities:

Common stock repurchase and retirement ( 29,982 ) ( 29,321 )

Common stock repurchases ( 15,005 ) —

Repurchase of shares to satisfy employee tax withholdings ( 28 ) ( 907 )

6 unchanged sentences

Interest paid during the period $ 7,157 $ 6,796

Taxes paid during the period $ 24,224 $ 17,682

Net income tax payments (refunds) $ ( 1,077 ) $ 1,342

Non-cash investing and financing activities:

Property and equipment acquired under finance leases $ 28,086 $ 8,177

Liabilities for properties and equipment investments $ 1,013 $ —

Obligation for shares repurchases not yet settled $ — $ 843

Property and equipment investments funded through accounts payable, net $ 504 $ —

Obligation for repurchase of shares to satisfy employee tax withholdings $ 479 $ —

See accompanying Notes.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 28, 2024

March 29, 2025

Basis of Presentation

13 unchanged sentences

Therefore, these condensed financial statements and accompanying notes should be read in conjunction with the Company’s 2024 Form 10-K.

The results for the three and nine months ended September 28, 2024 are not necessarily indicative of results that may be expected for the full fiscal year ending December 28, 2024, or any other interim period.

The results for the three fiscal months ended March 29, 2025 are not necessarily indicative of results that may be expected for the full fiscal year ending January 3, 2026, or any other interim period.

For the fiscal reporting periods included in the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, the Company did not have any items of other comprehensive income (loss), nor did the Company have any accumulated other comprehensive income (loss).

The Company operates on a 5-4-4 fiscal calendar and its fiscal year ends on the Saturday closest to December 31st of each year and may comprise 53 weeks in certain years.

Fiscal 2024 contains 52 weeks and will end on December 28, 2024.

Fiscal 2025 contains 53 weeks and will end on January 3, 2026.

Fiscal 2024 contained 52 weeks and ended on December 28, 2024.

During first quarter of fiscal 2025, the Company settled certain of the initial insurance claims related to property damaged or destroyed at its Erwin, Tennessee owned facility in late third quarter 2024 due to Hurricane Helene.

The Company received insurance proceeds that exceeded the carrying values of the damaged or destroyed assets by $ 2.4 million, and this amount is included in Other, net on the Company’s unaudited condensed consolidated statement of operations for the first quarter of fiscal 2025.

Use of Estimates

3 unchanged sentences

The Company has made no material changes to its significant accounting policies described in the notes to its consolidated financial statement included in its 2024 Form 10-K.

The Company did not adopt any new accounting standards during the fiscal year ended December 30, 2023 or during the nine months ended September 28, 2024.

The Company did not adopt any new accounting standards during the three fiscal months ended March 29, 2025.

Recent Accounting Pronouncements - Not Yet Adopted

Segment Reporting Improvements .

On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07, Segment Reporting—Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

The FASB issued the new guidance primarily to provide financial statement users with more disaggregated expense information about a public business entity’s (“PBE”) reportable segment(s).

This ASU will require PBEs to provide incremental disclosures related to the entity’s reportable segment(s), including disclosures for expenses that are both 1)

significant to each reportable segment and are provided regularly to the Chief Operating Decision Maker (“CODM”) or easily computed from information regularly provided to the CODM and 2) included in the reported measure of segment profit or loss used by the CODM to assess performance and allocate resources.

If a PBE does not disclose any significant segment expenses for a reportable segment, it is required to disclose narratively the nature of the expenses used by the CODM to manage each segment’s operations.

Under the provisions of this ASU, all of the disclosures required in the segment guidance, including disclosing a measure of segment profit or loss used by the CODM and reporting significant segment expenses, applies to all PBEs, including those with a single operating or reportable segment.

However, this ASU does not change the definition of a segment, the method for determining segments, or the criteria for aggregating operating segments into reportable segments.

ASU 2023-07 will be effective for the Company’s annual reporting period for fiscal 2024 and all interim reporting periods beginning in fiscal 2025.

At adoption, the disclosures are retrospectively presented for all comparative periods presented.

Since this new ASU addresses only disclosures, the Company does not expect the adoption of this ASU to have any material effects on its financial condition, results of operations or cash flows.

The Company is currently evaluating any new disclosures that may be required upon adoption of ASU 2023-07.

Income Tax Disclosure Improvement .

On December 14, 2023, the FASB issued ASU No.

On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements.

3 unchanged sentences

740, Income Taxes (“ASC 740”).

The overall objective of these disclosure requirements is for an entity, particularly an entity operating in multiple jurisdictions, to disclose sufficient information to enable users of financial statements to understand the nature and magnitude of factors contributing to the difference between the effective tax rate and the statutory tax rate.

ASU 2023-09 will be effective for the Company for the fiscal 2025 annual reporting period.

1 unchanged sentence

The Company is currently evaluating any new disclosures that may be required upon adoption of ASU 2023-09.

Costs and Expenses Disclosures.

On November 4, 2024, the FASB issued ASU No.

2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses (“ASU 2024-03”), which establishes new disaggregation disclosure requirements for certain costs and expenses in the notes to the consolidated financial statements.

Under the new guidance, an entity must provide details of the components of its expense captions from continuing operations presented on the face of the statement of operations as well as a qualitative description of the amounts remaining that are not separately disaggregated quantitatively.

Relevant disclosure categories include purchases of inventory, employee compensation, depreciation and intangible asset amortization.

An entity must also disclose the total amount of selling expenses, and in annual reports, its definition thereof.

The disclosure of these costs and expenses will be required in addition to and irrespective of their inclusion in other disclosures.

An entity is not precluded from providing additional voluntary disclosures that may provide investors with additional decision-useful information.

ASU 2024-03 will be effective for the Company for the fiscal 2027 annual reporting period and for interim periods beginning in fiscal 2028.

Since this new ASU addresses only disclosures, the Company does not expect its adoption to have any material effects on its financial condition, results of operations or cash flows.

The Company is currently evaluating the new disclosures that will be required upon adoption of ASU 2024-03.

The Company’s inventories consist almost entirely of finished goods inventory, with a very limited amount of work-in-process inventory.

The cost of all inventories is determined by the moving average cost method.

The Company included all material charges directly incurred in bringing inventory to its existing condition and location, including the cost of inbound freight, volume incentives, inventory adjustments, tariffs, duties and other import fees.

The Company evaluates its inventory value at the end of each quarter to ensure that inventory, when viewed by category, is carried at the lower-of-cost-and-net-realizable-value (“LCNRV”), which also considers items that may be considered damaged, excess, and obsolete inventory.

During the second quarter of fiscal 2024, the Company recorded a write-down of $ 2.4 million to reflect the LCNRV for certain inventory related to its structural products.

The $ 2.4 million write-down was due to declines in wood-based commodity prices.

During the third quarter of fiscal 2024, substantially all of the inventory covered by this $ 2.4 million LCNRV write-down was sold, thereby resulting in lower Costs of products sold by that same amount in the third quarter of fiscal 2024.

This adjustment increased gross margin percentage for structural products in the third quarter of fiscal 2024 by 1.0 percent.

The Company includes all material charges directly incurred in bringing inventory to its existing condition and location, including the cost of inbound freight, volume incentives, inventory adjustments, tariffs, duties and other import fees.

The Company evaluates its inventory value at the end of each quarter to ensure that inventory, when viewed by category, is carried at the lower-of-cost-or-net-realizable-value (“LCNRV”), which also considers items that may be considered damaged, excess, and obsolete inventory.

As of March 29, 2025 and December 28, 2024, the carrying values of the Company’s inventory reported on its consolidated balance sheets did not reflect any adjustments for LCNRV matters.

Substantially all of the amount reported in Cost of products sold on the Company’s consolidated statement of operations is composed of costs incurred to purchase inventory that is subsequently resold to customers, including costs related to import duties and tariffs.

6 unchanged sentences

Customs determines final duty rates at the time entries subject to antidumping and countervailing duties liquidate (as use of that term has been defined by the Commerce Department), typically through the resolution of a trade remedy administrative review proceeding.

During the three and nine months ended September 28, 2024, the Company recognized refunds of $ 3.8 million and $ 20.7 million, respectively, plus interest of $ 0.7 million and $ 2.7 million, respectively, related to retroactive adjustments associated with certain antidumping duties for imported wood moulding and millwork products.

During the three fiscal months ended March 29, 2025 and March 30, 2024, the Company recognized refunds of $ 2.4 million and $ 16.9 million, respectively, plus interest of $ 0.5 million and $ 2.0 million, respectively, related to retroactive adjustments associated with certain antidumping duties for imported wood moulding and millwork products.

The antidumping duty cash deposits were originally paid and accounted for by the Company in prior reporting periods at the then-current rates.

Impacted inventories have since been sold.

These adjustment amounts are reflected in Cost of products sold and Interest expense, net, respectively, on the Company’s unaudited condensed consolidated statements of operations for

the three and nine months ended September 28, 2024.

These adjustment amounts are reflected in Cost of products sold and Interest expense, net, respectively, on the Company’s unaudited condensed consolidated statements of operations for the three fiscal months ended March 29, 2025 and March 30, 2024.

See Note 8, Commitments and Contingencies , for disclosure concerning another matter related to import duties.

Goodwill and Intangible Assets, net

During the fiscal quarter and year-to-date period ended September 28, 2024, the only change to the carrying values of Goodwill and Intangible assets, net, was the amortization of Intangible assets, all of which have definite lives.

Amortization expense for intangible assets was $ 1.0 million and $ 3.0 million for the three and nine month periods ended September 28, 2024, respectively.

For the three and nine month periods ended September 30, 2023, amortization expense was $ 1.0 million and $ 3.2 million, respectively.

During the fiscal quarter ended March 29, 2025, the only change to the carrying values of the Company’s Goodwill and Intangible assets, net, was the scheduled amortization of intangible assets, all of which have definite lives.

Amortization expense for intangible assets was $ 1.0 million and $ 1.0 million for the three -month fiscal quarter ended March 29, 2025 and March 30, 2024, respectively.

Goodwill is not subject to amortization but must be tested for impairment at least annually, or more frequently if circumstances indicate an impairment may have occurred.

The Company consists of one reporting unit, and any impairment assessment requires the Company to determine if the fair value of the reporting unit’s goodwill is less than its carrying amount.

The Company tests goodwill for impairment during the fourth quarter of each fiscal year.

In addition, the Company will evaluate the carrying value for impairment between annual impairment tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired.

There were no goodwill impairment charges recorded in the three fiscal months ended March 29, 2025 or March 30, 2024, and there were no accumulated goodwill impairment amounts as of March 29, 2025 or December 28, 2024.

Non-cash provisions for the impairment of goodwill and/or other intangible assets could arise in future reporting periods due to sustained and significant changes in circumstances, such as declines in profitability and cash flow due to long-term deterioration in macroeconomic and industry conditions, the loss of key customers, a sustained decrease in the Company’s share price, or other unanticipated events.

Revenue Recognition

1 unchanged sentence

Sales and usage-based taxes are excluded from revenues.

Three Months Ended Nine Months Ended

Product type September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Fiscal Months Ended

Product type March 29, 2025 March 30, 2024

(In thousands)

3 unchanged sentences

The following table presents the Company’s revenues disaggregated by sales channel.

Sales and usage-based taxes are excluded from revenues.

Three Months Ended Nine Months Ended

Sales channel September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Warehouse sales are delivered from the Company’s warehouses.

Reload sales are similar to warehouse sales but are shipped from non-warehouse locations, most of which are operated by third parties, where the Company stores owned products to enhance operating efficiencies.

The reload channel is employed primarily to service strategic customers that are less economical to service from Company warehouses, and to distribute large volumes of imported products from port facilities.

Direct sales are shipped from the manufacturer to the customer and therefore the Company does not take physical possession of the inventory and, as a result, typically generate lower margins than the warehouse and reload distribution channels.

The direct distribution channel requires the lowest amount of committed capital and fixed costs.

Three Fiscal Months Ended

Sales channel March 29, 2025 March 30, 2024

(In thousands)

3 unchanged sentences

Total net sales $ 709,226 $ 726,244

Warehouse sales are delivered from Company warehouses.

Reload sales are similar to warehouse sales but are shipped from warehouses, most of which are operated by third parties, where the Company stores owned products to enhance operating efficiencies.

The reload channel is employed primarily to service strategic customers that would be less economical to service from Company warehouses, and to distribute large volumes of imported products from port facilities.

Direct sales are shipped from the manufacturer to the customer without the Company taking physical possession of the inventory and, as a result, typically generate lower margins than warehouse and reload distribution channels but require lower amount of committed capital and fixed costs.

The Company generally expenses sales commissions when incurred because the amortization period would typically be one year or less.

These costs are recorded within SG&A expense.

The Company has made an accounting policy election to treat outbound shipping and handling activities as an SG&A expense.

Shipping and handling costs include amounts related to the administration of the Company’s logistical infrastructure, handling of material in its warehouses, and amounts pertaining to the delivery of products to customers, such as fuel and maintenance costs for mobile fleet, wages for drivers, and third-party freight charges.

These expenses were $ 39.4 million and $ 38.2 million, respectively, for the fiscal quarters ended March 29, 2025 and March 30, 2024.

Performance obligations in contracts with customers generally consist solely of delivery of goods.

Debt and Finance Lease Obligations

As of September 28, 2024 and December 30, 2023, debt and finance lease obligations consisted of the following:

September 28, 2024 December 30, 2023

As of March 29, 2025 and December 28, 2024, debt and finance lease obligations consisted of the following:

March 29, 2025 December 28, 2024

(In thousands)

2 unchanged sentences

Revolving Credit Facility (2)

Finance lease obligations (3)

293,810 285,426

593,810 585,426

Unamortized debt issuance costs ( 2,233 ) ( 2,437 )

1 unchanged sentence

295,393 295,061

Finance lease obligations (3)

316,755 292,543

current portion of finance lease obligations 15,503 12,541

Total, net of current portion $ 575,996 $ 567,991

(1) As of September 28, 2024 and December 30, 2023, long-term debt was comprised of $ 300 million of Senior Secured Notes (“2029 Notes”) issued in October 2021.

These notes are presented under the Long-term debt caption of the Company’s unaudited condensed consolidated balance sheets at $ 294.7 million and $ 293.7 million as of September 28, 2024 and December 30, 2023, respectively.

This balance sheet presentation is net of unamortized discount of $ 2.6 million and $ 3.0 million, respectively, and unamortized debt issuance costs of $ 2.6 million and $ 3.2 million, respectively, as of September 28, 2024 and December 30, 2023.

Total debt and finance leases, net of current portions 596,645 575,063

(1) As of March 29, 2025 and December 28, 2024, long-term debt was comprised of $ 300 million of Senior Secured Notes (“2029 Notes”) issued in October 2021.

These notes are presented under the Long-term debt caption of the Company’s unaudited condensed consolidated balance sheets at $ 295.4 million and $ 295.1 million as of March 29, 2025 and December 28, 2024, respectively.

This balance sheet presentation is net of unamortized discount of $ 2.4 million and $ 2.5 million, respectively, and unamortized debt issuance costs of $ 2.2 million and $ 2.4 million, respectively, as of March 29, 2025 and December 28, 2024.

The Senior Secured Notes are presented in this table at their face value.

(2) Available borrowing capacity under the Revolving Credit Facility was $ 346.5 million as of September 28, 2024 and December 30, 2023.

(2) Available borrowing capacity under the Revolving Credit Facility was $ 346.2 million as of March 29, 2025 and December 28, 2024.

The available borrowing capacity reflects undrawn letters of credit.

(3) Refer to Note 7, Leases , for interest rates associated with finance lease obligations.

Amounts on this line include $ 125.1 million and $ 125.0 million as of September 28, 2024 and December 30, 2023, respectively, for sale-leasebacks of real estate in fiscal 2019 and 2020 that did not qualify for sale treatment for accounting purposes.

Amounts on this line include $ 125.1 million and $ 125.1 million as of March 29, 2025 and December 28, 2024, respectively, for sale-leasebacks of real estate in fiscal 2019 and fiscal 2020 that did not qualify for sale treatment for accounting purposes.

Interest expense, net on the Company’s unaudited condensed consolidated statements of operations consisted of the following components:

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Fiscal Months Ended

March 29, 2025 March 30, 2024

(In thousands)

3 unchanged sentences

Interest expense for the reporting periods presented in the above table primarily reflects interest expense for the 2029 Notes, interest expense on finance lease obligations, certain ongoing fees for the Revolving Credit Facility that are classified as interest expense, amortization of debt issuance costs for the 2029 Notes and Revolving Credit Facility, and amortization of original-issue bond discount on the 2029 Notes.

Total amortization of debt issuance costs and bond discount costs was $ 0.3 million and $ 1.0 million for the three and nine months ended September 28, 2024, respectively, and $ 0.3 million and $ 1.0 million for the three and nine months ended September 30, 2023, respectively.

Interest expense for the nine months ended September 28, 2024 also includes $ 1.2 million for estimated interest expense related to import duties that the Company believes it may owe (see Note 9, Commitments and Contingencies) .

Total amortization of debt issuance costs and bond discount costs was $ 0.3 million and $ 0.3 million for the three fiscal months ended March 29, 2025 and March 30, 2024, respectively.

Interest expense for the three fiscal months ended March 30, 2024 also included $ 1.6 million for estimated interest expense related to import duties that the Company believes it may owe (see Note 8, Commitments and Contingencies) .

Interest income for the reporting periods presented in the above table primarily reflects interest earned on the Company’s cash and cash equivalents.

Interest income for the three and nine months ended September 28, 2024 also includes $ 0.7 million and $ 2.7 million, respectively, on refunds approved in fiscal 2024 from U.S.

Customs for anti-dumping import duties (see Note 2, Inventories) .

Interest expense, excluding amortization of debt issuance costs and bond discount, for the 2029 Notes totaled $ 4.5 million and $ 13.5 million for the three and nine months ended September 28, 2024, respectively, and $ 4.5 million and $ 13.5 million for the three and nine months ended September 30, 2023, respectively.

The 2029 Notes pay interest at a fixed annual rate of 6.0 percent through maturity.

Interest income for the three fiscal months ended March 29, 2025 and March 30, 2024 also included $ 0.5 million and $ 2.0 million, respectively, on refunds received from U.S.

Customs for anti-dumping import duties (see Note 2, Inventory) .

Interest expense, excluding amortization of debt issuance costs and bond discount, for the 2029 Notes totaled $ 4.5 million and $ 4.5 million for the three fiscal months ended March 29, 2025 and March 30, 2024, respectively.

The 2029 Notes pay interest at a fixed annual rate of 6.0 % through maturity.

Revolving Credit Facility

As of September 28, 2024 and December 30, 2023, the Company had zero outstanding borrowings under the Revolving Credit Facility.

Available borrowing capacity, reduced for undrawn letters of credit, under the Revolving Credit Facility was $ 346.5 million as of September 28, 2024 and December 30, 2023.

Excess availability, which includes availability under the Revolving Credit Facility plus cash and cash equivalents in qualified deposit accounts, was $ 872.8 million and $ 868.2 million as of September 28, 2024 and December 30, 2023, respectively.

As of March 29, 2025 and December 28, 2024, the Company had zero outstanding borrowings under the Revolving Credit Facility.

Available borrowing capacity, reduced for undrawn letters of credit, under the Revolving Credit Facility was $ 346.2 million as of March 29, 2025 and December 28, 2024.

Excess availability, which includes availability under the Revolving Credit Facility plus cash and cash equivalents in qualified deposit accounts, was $ 795.2 million and $ 851.8 million as of March 29, 2025 and December 28, 2024, respectively.

Debt Covenants

The Revolving Credit Facility and the 2029 Notes contain various covenants and restrictions, including customary financial covenants.

The Company was in compliance with all such covenants as of September 28, 2024 and December 30, 2023.

The Company was in compliance with all such covenants as of March 29, 2025 and December 28, 2024.

The Company’s right to make draws on the Revolving Credit Facility may be conditioned upon, among other things, compliance with these covenants.

11 unchanged sentences

For more information on the Company’s finance lease obligations, refer to Note 7, Leases .

Net Periodic Pension Cost (Benefit)

As previously disclosed, effective December 5, 2023, the Company settled its noncontributory defined benefit pension plan (the “DB Plan”) by purchasing an irrevocable nonparticipating annuity contract with an insurance company (the “buy-out contract”).

The buyout contract met the requirements for a settlement, as that term is defined in ASC No.

715, Compensation-Retirement Benefits , and the DB Plan and Company, as sponsor, were relieved of primary responsibility for the benefits obligations.

The Company incurred the following net periodic pension (benefit) cost for the following periods:

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

(In thousands)

Service cost (1)

$ — $ — $ — $ —

Interest cost on projected benefit obligation — 1,105 — 3,314

Expected return on plan assets — ( 812 ) — ( 2,437 )

Amortization of unrecognized gain — 301 — 905

Settlement loss adjustment (2)

( 2,226 ) — ( 2,226 ) —

Net periodic pension (benefit) cost $ ( 2,226 ) $ 594 $ ( 2,226 ) $ 1,782

(1) Service cost not a part of net periodic pension benefit as the pension plan was frozen for all participants.

(2) Represents an adjustment for the settlement charge originally recognized during the fourth quarter of fiscal 2023 related to settlement of the Company’s frozen defined benefit pension plan.

Net periodic pension cost is included in Other expense, net in the Company’s unaudited condensed consolidated statement of operations and comprehensive income.

However, the settlement charge and related adjustments are reported on a separate line

under Non-operating expenses on the Company’s unaudited condensed consolidated statement of operations and comprehensive income.

Share-Based Compensation

During the three and nine months ended September 28, 2024, the Company incurred stock compensation expense of $ 3.2 million and $ 6.9 million, respectively.

Expense in the nine months ended September 28, 2024 included a credit of $ 1.7 million (recognized in fiscal second quarter 2024) related to cumulative adjustments for certain unvested restricted stock unit grants that were granted in June 2022 and are subject to vesting based, in part, on performance criteria that are not expected, as of September 28, 2024, to be fully achieved before the end of the vesting period on June 28, 2025.

As of September 28, 2024, unearned compensation for share-based grants was $ 23.0 million, with $ 14.2 million of this amount associated with grants made in the first nine months of fiscal 2024.

Under the Company’s 2021 BlueLinx Holdings, Inc.

2021 Long-Term Incentive Plan as of September 28, 2024, 506,044 shares of common stock remain available for future issuance pursuant to equity-based compensation awards.

For the three and nine months ended September 30, 2023, the Company incurred stock compensation expense of $ 3.0 million and $ 9.5 million, respectively.

This expense included expense for the acceleration of unrecognized compensation cost in conjunction with certain changes in the Company’s executive management.

During the three fiscal months ended March 29, 2025 and March 30, 2024, the Company incurred stock compensation expense of $ 2.5 million and $ 2.4 million, respectively.

During the three fiscal months ended March 29, 2025, the Company issued new grants of 46,662 restricted stock units (“RSUs”) with a total grant-date fair value of $ 4.3 million.

These new RSU grants are scheduled to vest in either one year or three years , depending on the terms of each grant.

Each RSU grant will potentially result in the future issuance of one share of the Company’s common stock if the vesting conditions are satisfied.

Under the 2021 BlueLinx Holdings, Inc.

2021 Long-Term Incentive Plan as of March 29, 2025, a net of 496,567 shares of the Company’s common stock remain available for future issuances of equity-based compensation awards.

The Company has operating and finance leases for certain of its distribution facilities, office space, land, mobile fleet, and equipment.

20 unchanged sentences

Gains on these sale-leaseback transactions were deferred and are being recognized into the Company’s earnings.

As of September 28, 2024 and December 30, 2023, the remaining unrecognized deferred gains related to these transactions were $ 68.2 million and $ 70.5 million, respectively, and these deferred gains are being recognized in earning on a straight-line basis.

During the three months ended September 28, 2024 and September 30, 2023, the Company recognized $ 1.0 million and $ 1.0 million, respectively, of these deferred gains in each quarter.

In the nine months ended September 28, 2024 and September 30, 2023, the Company recognized $ 3.0 million and $ 3.0 million, respectively, of these deferred gains in each period.

The following table presents the assets and liabilities related to the Company’s leases as of September 28, 2024 and December 30, 2023:

Lease Assets and Liabilities September 28, 2024 December 30, 2023

As of March 29, 2025 and December 28, 2024, the remaining unrecognized deferred gains related to these transactions were $ 66.2 million and $ 67.2 million, respectively, and these deferred gains are being recognized in earning on a straight-line basis.

During the three fiscal months ended March 29, 2025 and March 30, 2024, the Company recognized $ 1.0 million and $ 1.0 million, respectively, of these deferred gains in each fiscal quarter.

The following table presents the assets and liabilities related to the Company’s leases as of March 29, 2025 and December 28, 2024:

Lease Assets and Liabilities March 29, 2025 December 28, 2024

(In thousands)

11 unchanged sentences

Total lease liabilities $ 363,336 $ 341,135

(1 ) Finance lease right-of-use assets are presented net of accumulated amortization of $ 111.4 million and $ 102.9 million as of September 28, 2024 and December 30, 2023, respectively.

(1 ) Finance lease right-of-use assets are presented net of accumulated amortization of $ 103.7 million and $ 112.3 million as of March 29, 2025 and December 28, 2024, respectively.

The compon ents of lease expense were as follows:

Three Months Ended Nine Months Ended

Components of lease expense September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Fiscal Months Ended

Components of lease expense March 29, 2025 March 30, 2024

(In thousands)

8 unchanged sentences

Supplemental cash flow information related to leases is as follows:

Three Months Ended Nine Months Ended

Cash flow information September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Fiscal Months Ended

March 29, 2025 March 30, 2024

(In thousands)

4 unchanged sentences

Non-cash supplemental cash flow information related to leases is as follows:

Three Months Ended Nine Months Ended

Non-cash information September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Three Fiscal Months Ended

Non-cash information March 29, 2025 March 30, 2024

(In thousands)

3 unchanged sentences

Supplemental balance sheet information related to leases is as follows:

Balance Sheet Information September 28, 2024 December 30, 2023

Balance Sheet Information March 29, 2025 December 28, 2024

($ in thousands)

9 unchanged sentences

Finance leases 8.74 % 8.88 %

The major categories of the Company’s obligations under finance leases as of September 28, 2024 and December 30, 2023 are as follows:

Category September 28, 2024 December 30, 2023

The major categories of the Company’s obligations under finance leases as of March 29, 2025 and December 28, 2024 were as follows:

March 29, 2025 December 28, 2024

(In thousands)

3 unchanged sentences

Total finance leases $ 316,755 $ 292,543

(1) Amounts include $ 125.1 million and $ 125.0 million as of September 28, 2024 and December 30, 2023, respectively, for sale-leasebacks of real estate in fiscal 2019 and 2020 that did not qualify for sale treatment for accounting purposes.

Below is a summary of undiscounted finance and operating lease liabilities that have initial terms in excess of one year as of September 28, 2024.

(1) Amounts include $ 125.1 million and $ 125.1 million as of March 29, 2025 and December 28, 2024, respectively, for sale-leasebacks of real estate in fiscal 2019 and fiscal 2020 that did not qualify for sale treatment for accounting purposes.

Below is a summary of undiscounted finance and operating lease liabilities that have initial terms in excess of one year as of March 29, 2025.

The table also includes a reconciliation of the future undiscounted cash flows to the present value of the finance and operating lease liabilities included in the unaudited condensed consolidated balance sheet, including options to extend lease terms that are reasonably certain of being exercised.

1 unchanged sentence

(In thousands)

2024 $ 2,932 $ 9,999

2025 (remainder of fiscal year) $ 8,442 $ 31,907

2026 8,709 46,012

13 unchanged sentences

Customs, the Company has exercised reasonable care to address this matter in an equitable and expeditious manner through the filing of a prior disclosure submission with U.S.

As of September 28, 2024, the Company estimates that it will be required to pay approximately $ 8.0 million, excluding any interest.

This amount is reflected in Other current liabilities on the Company’s unaudited condensed consolidated balance sheet as of September 28, 2024.

On the Company’s unaudited condensed consolidated statements of operations, expense of $ 0.3 million and $ 8.0 million, excluding interest, was recognized for this matter in the three and nine months ended September 28, 2024, respectively, within Cost of products sold.

See Note 2, Inventories , for disclosure concerning another matter related to import duties.

As of March 29, 2025, the Company estimates that it will be required to pay approximately $ 8.0 million, excluding any interest.

This amount is reflected in Other current liabilities on the Company’s unaudited condensed consolidated balance sheet as of March 29, 2025.

On the Company’s unaudited condensed consolidated statements of operations, expense of $ 10.4 million, excluding interest, was recognized for this matter in the three fiscal months ended March 30, 2024, respectively, within Cost of products sold.

See Note 2, Inventory , for disclosure concerning another matter related to import duties.

In addition, U.S.

Customs has issued proposed notices of action to the Company, asking for confirmation that certain plywood products the Company imported into the United States originated from Vietnam and Indonesia, respectively, as opposed to China.

The Company is in the process of providing responses to U.S.

Customs and believes that the information it has provided, and will be providing, support the declared origins of the plywood.

But, if the government disagrees and determines the plywood originated from China, the Company believes it is reasonably possible that it could be responsible for additional duties on the entries identified by U.S.

Customs that could range from zero to $ 22 million.

Environmental Matters

From time to time, the Company is involved in various proceedings incidental to its business and the Company is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates.

Although the ultimate outcome of these proceedings cannot be determined with certainty, based on presently available information, the Company believes that adequate liabilities have been accrued for probable losses with respect thereto and receivables recorded for expected receipts from settlements.

The Company further believes that, while the ultimate outcome of these matters could be material to the Company’s financial position, results of operations and cash flows in any given reporting period, they will not have a materially adverse effect on the Company’s long-term financial condition, results of operations, or cash flows.

From time to time, the Company may be involved in proceedings involving various environmental and pollution control laws and regulations in the jurisdictions in which it operates.

When the Company believes it has material financial exposure to these matters, it estimates and recognizes adequate liabilities and, if applicable, also timely records any expected recoveries from insurance coverages or subrogation in accordance with GAAP.

Such liabilities, when recorded, may or may not be discounted, as required or permitted by GAAP.

Based on presently available information, the Company had no material obligations for environmental matters as of March 29, 2025 or December 28, 2024.

Collective Bargaining Agreements

As of September 28, 2024, approximately 18.4 percent of the Company’s employees were represented by various local labor unions with terms and conditions of employment governed by collective bargaining agreements (“CBAs”).

Two CBAs covering approximately 1.3 percent percent of the Company’s employees are up for renewal during the remainder of fiscal 2024 and are expected to be renegotiated before their renewal dates.

Accumulated Other Comprehensive Loss

As of September 28, 2024 and December 30, 2023, the Company had no accumulated other comprehensive income or loss.

For changes in accumulated other comprehensive loss during the three and nine months ended September 30, 2023, see the unaudited condensed consolidated statements of operations and comprehensive income included in this Form 10-Q.

As of September 30, 2023, the components of accumulated other comprehensive loss were as follows:

Benefit Pension

Plan, net of tax Other,

net of tax Total Accumulated Other Comprehensive Loss

(In thousands)

September 30, 2023 balances

$ ( 31,986 ) $ 1,241 $ ( 30,745 )

As of March 29, 2025, approximately 19.7 % of the Company’s employees were represented by various local labor unions with terms and conditions of employment governed by collective bargaining agreements (“CBAs”).

Five CBAs covering approximately 5.0 % of the Company’s employees are up for renewal during the remainder of fiscal 2025, of which one is currently under negotiations and the other four are expected to be renegotiated before their renewal dates.

Effective Income Tax Rate

The Company’s effective income tax rates for the three months ended September 28, 2024 and September 30, 2023 were 26.0 percent and 27.2 percent, respectively.

The Company’s effective income tax rates for the nine months ended September 28, 2024 and September 30, 2023 were 24.9 percent and 25.9 percent, respectively.

The Company’s effective income tax rates for the three and nine months ended September 28, 2024 and September 30, 2023 were impacted by the permanent addback of certain nondeductible expenses, including meals and entertainment and executive compensation, partially offset by a partial release of a valuation allowance for deferred income tax assets, the vesting of restricted stock units, and the return-to-provision adjustment associated with the most recently filed U.S.

Federal income tax return.

The Company’s effective income tax rates for the three and nine months ended September 30, 2023 were impacted by state taxes as well as the permanent addback of certain nondeductible expenses, including executive compensation, offset by a benefit from the vesting of restricted stock units.

For fiscal 2024, the Company expects its consolidated annual effective income tax rate will be approximately 26 percent.

The Company’s effective income tax rates for the three fiscal months ended March 29, 2025 and March 30, 2024 were 32.3 % and 24.1 %, respectively.

The Company’s effective income tax rates for the three fiscal months ended March 29, 2025 and March 30, 2024 were impacted by the permanent addback of certain nondeductible expenses, including meals and entertainment and executive compensation for the quarterly periods, as well as adjustments to deferred income tax assets related to stock-based compensation.

The Company’s effective income tax rates for the three fiscal months ended March 30, 2024 was also impacted by an adjustment to deferred income tax assets related to the partial release of a state income tax valuation allowance.

For fiscal 2025, the Company currently estimates that its annual effective income tax rate will be approximately 27 % .

For additional information about the Company’s income taxes, see Note 7, Income Taxes , to the consolidated financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024.

Earnings Per Share and Stockholders' Equity

The Company calculates basic earnings per share by dividing net income for the period by the weighted average number of shares of common stock outstanding for the period.

The Company calculates basic earnings per share by dividing net income for the period by the weighted average number of common shares outstanding for the period.

For rounding purposes when calculating earnings per share, the Company’s policy is to round down to the whole cent.

The Company calculates diluted earnings per share using the treasury stock method whereby net income for the period is divided by the weighted average number of shares of common stock outstanding for the period including the dilutive effect, if any, of shares of stock associated with unvested share-based grants.

However, for share-based grants that vest in whole or in part based on performance metrics, their dilutive effect is included only after the performance metrics have been achieved.

The reconciliations of basic net income and diluted earnings per common share for the three and nine month periods ended September 28, 2024 and September 30, 2023 are as follows:

Three Months Ended Nine Months Ended

September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023

Diluted earnings per share are calculated using the treasury stock method whereby net income for the period is divided by the weighted average number of common shares outstanding for the period plus the dilutive effect, if any, of shares of stock associated with unvested share-based grants.

However, for performance-based share-based grants, the dilutive effect is included only for grants where the performance goals have been achieved.

The reconciliations of basic net income and diluted earnings per common share for the three fiscal months ended March 29, 2025 and March 30, 2024 are as follows:

Three Fiscal Months Ended

March 29, 2025 March 30, 2024

Net income (in thousands) $ 2,805 $ 17,492

4 unchanged sentences

Diluted earnings per share $ 0.33 $ 2.00

During the three and nine months ended September 28, 2024, unvested time-based restricted stock units totaling 6,299 and 1,644 , respectively, and unvested performance-based restricted stock units totaling 139,654 for both periods were outstanding but not included in the computation of diluted earnings per share for the respective periods.

During the three and nine months ended September 30, 2023, unvested time-based restricted stock units totaling 103,152 and 161,572 , respectively, and unvested performance-based restricted stock units totaling 112,252 for both periods were outstanding but not included in the computation of diluted earnings per share for the respective periods.

Each restricted stock unit is composed of one unvested share of the Company’s common stock.

The unvested time-based restricted stock units were excluded because they were antidilutive based on their unearned compensation amounts and on the Company’s average stock price during the periods.

The unvested performance-based restricted stock units were excluded because their performance metrics had not been achieved as of the end of the respective reporting period.

For the fiscal quarters ended March 29, 2025 and March 30, 2024, weighted-average unvested time-based restricted stock units (“RSUs”) totaling 24,089 and 486 , respectively, were not included in the dilutive effect of share-based awards for the respective periods because their effects were antidilutive.

The unvested time-based RSUs were antidilutive based on their remaining unearned compensation amounts and the Company’s average stock price during the respective period.

Additionally, as of March 29, 2025 and March 30, 2024, a total of 127,174 and 113,208 , respectively, of unvested performance-based RSUs were outstanding but not included in the computation of diluted earnings per share.

The unvested performance-based RSUs were excluded because their performance metrics had not been achieved as of the end of the respective reporting period and thus they were not tested for dilution under the treasury stock method.

Each RSU is composed of one unvested share of the Company’s common stock and any outstanding RSUs dilutive effect could change in future reporting periods.

Repurchases of Common Stock

2023 Authorization

On October 31, 2023, the Company’s board of directors authorized a new share repurchase program for $ 100 million.

Under the new share repurchase program, the Company may repurchase its common stock from time to time, without prior notice, subject to prevailing market conditions and other considerations.

On October 31, 2023, the Company’s board of directors authorized a share repurchase program for $ 100 million.

Under this share repurchase program, the Company may repurchase its common stock from time to time, without prior notice, subject to prevailing market conditions and other considerations.

Repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, accelerated share repurchase programs, tender offers or pursuant to a trading plan that may be adopted in accordance with the Securities and Exchange Commission Rule 10b5-1.

During the three and nine months ended September 28, 2024, the Company repurchased 145,548 shares and 297,951 shares, respectively, of its common stock at a weighted-average average price of $ 103.08 and $ 100.63 , respectively, including broker commissions but excluding federal excise tax on the repurchases, for a total of $ 15.0 million and $ 30.0 million, respectively.

These amounts are based on trade date activity, while the amounts reported on the Company’s consolidated statements of cash flows for share repurchases are based on settlement date activity.

As of September 28, 2024, there remained $ 61.5 million repurchase capacity under this authorization.

Between September 28, 2024 and October 25, 2024, the Company purchased an additional 43,240 shares of its common stock for $ 4.6 million at a weighted-average share price of $ 106.34 per share, including broker commissions but excluding federal excise tax due on the repurchases.

2021/2022 Authorization

On August 23, 2021, the Company’s board of directors approved a stock repurchase program that authorized the Company to repurchase up to $ 25.0 million of its common stock.

On May 3, 2022, the Company’s board of directors increased the share repurchase authorization to $ 100 million.

During the three and nine months ended September 30, 2023, the Company repurchased 216,507 shares and 358,212 shares, respectively, of its common stock under the 2021/2022 authorization at a weighted-average price of $ 84.93 , and $ 83.52 , respectively, including broker commissions but excluding federal excise tax on the repurchases, for total cash of $ 11.5 million and $ 29.9 million, respectively.

During the three fiscal months ended March 29, 2025, the Company repurchased 186,048 shares of its common stock at a weighted-average average price of $ 80.65 including broker commissions but excluding federal excise tax on the repurchases, for a total of $ 15.0 million.

These amounts are based on trade date activity, while the amounts reported on the Company’s consolidated statements of cash flows for share repurchases are based on settlement date activity.

During fiscal October 2023, the Company exhausted the remaining available capacity of $ 3.7 million under the 2021/2022 authorization.

As of March 29, 2025, there remained $ 31.5 million repurchase capacity under the authorization approved October 31, 2023.

Between March 29, 2025 and April 25, 2025, the Company purchased an additional 142,500 shares of its common stock for $ 10.3 million at a weighted-average share price of $ 72.18 per share, including broker commissions but excluding federal excise tax due on the repurchases.

As of March 29, 2025 and December 28, 2024, the Company had no assets or liabilities for which the carrying value is remeasured to fair value at the end of each reporting period.

The Company has not elected the fair value reporting option for any of its financial instruments.

Fair Value Disclosures

The Company has no assets or liabilities with carrying values that are remeasured and adjusted to fair value on a recurring basis for each reporting period.

The Company has not elected the fair value option for any assets or liabilities.

As of September 28, 2024 and December 30, 2023, the fair value of the 2029 Notes was approximately $ 290 million and $ 273 million, respectively, which were estimated from inputs that are designated as Level 2 in the fair value hierarchy.

The Company’s valuation technique is based primarily on observable market prices in less active markets.

The fair value of cash, cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate the carrying values as of September 28, 2024 and December 30, 2023 because of the short-term nature of these instruments.

The fair value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities, to the extent the underlying liability will be settled in cash, approximates the carrying values because of the short-term nature of these instruments.

The estimated fair value of the Company’s 2029 Notes was determined based on Level 2 input using observable market prices in less active markets, as presented below:

March 29, 2025 December 28, 2024

Carrying Value (1)

Fair Value Carrying Value (1)

(In thousands)

2029 Notes $ 295,393 $ 282,764

$ 295,061 $ 293,597

(1) The $ 300 million obligation for the 2029 Notes is presented on the Company’s consolidated balance sheets net of unamortized debt issuance costs and discount.

See Note 5 , Debt and Finance Lease Obligations .

There were no borrowings outstanding under the Company’s Revolving Credit Facility during the three fiscal months ended March 29, 2025 or during fiscal year 2024.

Segment Reporting

The Company has one reportable segment:

building products.

The segment sells building products that are grouped into two primary categories:

specialty products and structural products.

The Company’s CODM is its chief executive officer (CEO).

The Company derives substantially all of its revenues from the United States and all of the Company’s assets are located in the United States.

The measure of segment assets is reported on the Company’s balance sheet as total consolidated assets.

The segment’s accounting policies are the same as the accounting policies for the Company, as described in Note 1, Summary of Significant Accounting Policies, in Part II, Item 8 of the Company’s most recent Annual Report on Form 10-K.

The CODM’s method under GAAP that is used to assess performance and allocate resources is based on Net income as reported on the Company’s consolidated statement of operations.

The following table presents information about Net income and significant expenses that are regularly reviewed by the Company’s CODM:

Three Fiscal Months Ended

March 29, 2025 March 30, 2024

(In thousands)

Net sales $ 709,226 $ 726,244

Cost of specialty products sold 389,609 399,785

Cost of structural products sold 208,488 198,778

SG&A - delivery and logistics 39,438 38,156

SG&A - sales 17,757 17,428

SG&A - all other 36,898 35,666

Depreciation of property and equipment 8,601 8,408

Amortization of definite-lived intangible assets 953 1,025

Amortization of deferred gains on real estate ( 984 ) ( 984 )

Interest expense 12,053 13,109

Interest income ( 5,473 ) ( 8,485 )

Other, net ( 2,258 ) 314

Provision for income taxes 1,339 5,552

Total segment expenses 706,421 708,752

Segment net income 2,805 17,492

Reconciliation of profit or loss:

Adjustments and reconciling items — —

Consolidated net income $ 2,805 $ 17,492

During the first quarter of fiscal 2025, the Company settled certain of the initial insurance claims related to property and equipment that was damaged or destroyed at its Erwin, Tennessee owned facility in late third quarter of fiscal 2024 by Hurricane Helene.

The Company received insurance proceeds that exceeded the carrying values of the damaged or destroyed assets by $ 2.4 million and this amount is included in Other, net on the Company’s unaudited condensed consolidated statement of operations for the first quarter of fiscal 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements