BuildDirect Reports Third Quarter 2021 Financial Results
Canada NewsWire
VANCOUVER, BC, Nov. 18, 2021
Revenue of $22.4 million, with year-over-year revenue growth of 51%
Reiterates full year 2021 revenue guidance in the range of $90 - $98 million
BuildDirect reports in US dollars and in accordance with IFRS
VANCOUVER, BC, Nov. 18, 2021 /CNW/ - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or the "Company"), an innovative platform for purchasing and selling building materials online, today announced its financial results for the three and nine months ended September 30, 2021.
"BuildDirect continues to benefit from ongoing investment in the home," said Dan Park, CEO of BuildDirect. "We remain committed to delivering on our strategy, which focuses on our differentiated omnichannel offering and infrastructure, as well as executing select accretive acquisitions to broaden our reach and accelerate our growth. Our solid third quarter performance combined with increasing investments in the home indicate that we are on pace to deliver on the full year revenue guidance of $90 - $98 million."
Ethan Rudin, CFO of BuildDirect added, "Our recently announced acquisition of U.S.-based Superb Flooring & Design aligns directly with our strategy to acquire B2B-focused targets, increasing our Pro customer base, driving larger basket sizes, and expanding our North American presence. We remain keenly positioned to realize BuildDirect's mission to accelerate the home renovation industry into the digital era with our distinct DiPhy (digital + physical) strategy, leveraging our robust technology and heavy weight delivery platform, which when combined with the local presence, trust and service of the best independent retailers, provides an unmatched end-to-end experience for the underserved Pro customer."
Third Quarter 2021 Financial Highlights
USD$ (unless otherwise Third Quarter Third Quarter % Change YTD 2021
noted) 2021 2020
Revenue $22.4 million $14.8 million 51% $66.6 million
Gross Profit $8.1 million $5.5 million 48% $24.3 million
Gross Margin 36.4% 37.0% (0.6%) 36.4%
Adjusted EBITDA(1) ($0.6 million) ($0.1 million) (400%) ($0.8 million)
(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.
Third Quarter 2021 Financial and Operational Highlights
-- Revenue of $22.4 million increased 51% compared to the third quarter of
2020, primarily driven by the December 31, 2020 acquisition of
FloorSource, and an increase in customer demand for building supplies.
-- Pro revenue increased by 216% compared to the third quarter of 2020 and
represents 66% of total revenue in the third quarter of 2021.
-- Gross profit increased 48% to $8.1 million compared to $5.5 million in
the third quarter of 2020.
-- Gross margin decreased by 60bps to 36.4% compared to the third quarter of
2020 due to slightly lower gross margin percentages from the FloorSource
business and higher supply chain costs in 2021 compared to 2020.
-- Adjusted EBITDA of ($0.60 million), a decrease as compared to the third
quarter of 2020 due to investments in sales and marketing to accelerate
sales growth, as well as lower government tax credits received to offset
our research and development expenses.
Post Quarter Highlights
-- On November 17, 2021, BuildDirect announced its agreement to acquire
Superb Flooring & Design LLC for USD $10 million, expanding our Pro
market segment share.
-- The Company has kicked off the search to appoint a new CEO and is
finalizing the transition plan to ensure a smooth handover.
-- Appointed experienced home improvement executives, Peg Hunter and Henry
Lees-Buckley, to the Board of Directors.
2021 Outlook
BuildDirect's business performance accelerated over the past year, as a result of significant growth in the home improvement products industry driven by a shift towards investment in the home, which has driven record breaking online growth in building material purchases. Over the long-term, BuildDirect intends to drive gross margin improvements through further alignment of unit economics and profitability in addition to enhancing revenue through its omnichannel platform and accretive acquisition pipeline. In 2021, BuildDirect anticipates revenue in the range of $90 - $98 million, representing significant year-over-year growth.
In line with the industry, BuildDirect experienced near-term challenges with our supply chain and products due to short-term headwinds. However, due to the hard work of our team and support of our partners, we were able minimize the impact and continue to provide great value and service as well as remain in-stock for our customers.
BuildDirect remains bullish as the Company continues to leverage its DiPhy (digital + physical) growth strategy and expands its reach into bricks and mortar independent retailers and captures the B2B professionals. The above guidance does not include the Superb acquisition or additional acquisitions, however BuildDirect maintains a strong funnel of actionable acquisition targets that fit within its well-defined investment criteria.
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 Management's Discussion and Analysis for the three and nine months ended September 30, 2021 are available on the Company's website at www.BuildDirect.com and on the Company's SEDAR profile available at www.sedar.com.
Third Quarter 2021 Financial Results Conference Call
BuildDirect will host a conference call and webcast to discuss the Company's financial results at 9:30 am EST on Thursday, November 18, 2021. To access the telephonic version of the conference call, participants can dial (888) 664-6392 (North America Toll-Free) or (416) 764-8659. Upon entering the confirmation ID: 56632983, participants will be entered directly into the conference.
Alternatively, the webcast will be available live on the Investor Relations section of BuildDirect's website at https://ir.builddirect.com/events-and-presentation
Among other things, BuildDirect will discuss long-term financial outlook on the conference call and webcast, and related materials will be made available on the Company's website at https://ir.builddirect.com/events-and-presentation. Investors should carefully review the factors, assumptions, risks and uncertainties included in such related materials concerning such long-term financial outlook.
An audio replay of the call will be available approximately two hours after the completion of the live call until 8:59 pm EST on November 25th, 2021. The audio replay will be accessed by dialing (888) 390-0541 (North America Toll-Free) or (416) 764-8677 (Toronto) with entry code: 632983. In addition, an archived webcast will be available on the Investor Relations section of the Company's website at https://ir.builddirect.com/events-and-presentation.
About BuildDirect
BuildDirect (TSXV: BILD) is an innovative technology platform for purchasing and selling building materials online. The BuildDirect platform connects homeowners and home improvement professionals in North America with suppliers and sellers of quality building materials from around the world, including flooring, tile, decking and more. BuildDirect's growth, proprietary heavyweight delivery network, and digital reach have served to solidify its role as a ground-breaking player in the home improvement industry. For more information, visit http://www.builddirect.com./.
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 innovative technology and heavyweight platform and end to end experience for the Pro customer segment, BuildDirect's DiPhy strategy and acceleration of the home renovation industry into the digital era, BuildDirect increasing its Pro customer base, driving larger basket sizes, and expanding its North American presence, BuildDirect's accretive acquisition pipeline, potential growth, potential value for all stakeholders, expected growth margins, and expected revenues for 2021.