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BuildDirect Reports Third Quarter 2022 Financial Results


On-Demand Cloud SIP Trunking

Delivers positive adjusted EBITDA of $0.3 million up $0.9 million year-over-year
Pro customer revenue increases to 88.2% of third quarter revenues, up 5.6% quarter-over-quarter
and up 19.6% year-over-year

BuildDirect reports in US dollars and in accordance with IFRS

VANCOUVER, BC, Nov. 16, 2022 /PRNewswire/ – BuildDirect.com Technologies Inc. (TSXV: BILD) (“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.

Third Quarter 2022 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 Wednesday, November 16, 2022. 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: 61124202, 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 23, 2022. The audio replay will be accessed by dialing (888) 390-0541 (North America Toll-Free) or (416) 764-8677 (Toronto) with entry code: 124202#. 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.

Advisory Services

BuildDirect has retained Gilcrest Advisory Inc. (“Gilcrest”) to broaden the Company’s reach within the investment community and provide market making services to maintain orderly trading in the Company’s securities. Gilcrest has been engaged for an initial three month period expiring on February 16, 2023, which may be extended by mutual agreement, and will be paid a monthly fee of $6,000 CAD plus applicable taxes. Gilcrest and the Company are unrelated and unaffiliated entities, but Gilcrest and/or its clients may have an interest, directly or indirectly, in the securities of the Company. Gilcrest is a Canadian advisory service firm offering advice and services on investor relations and market making synergies. Gilcrest has agreed to comply with all applicable securities laws and the policies of the TSXV in providing the above services.

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.

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 the impact of resource reallocation and acquisition synergies, honing of fixed costs and marketing strategies, BuildDirect’s overall profitability and  growth prospects, the pursuit and servicing of growing industry segments and product opportunities, the impact of cost reductions including, without limitation, with respect to adjusted EBITDA, and the maintenance of positive adjusted EBITDA.

Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could  cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, inflation, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions and other factors referenced under the “Risks and Uncertainties” section of our MD&A. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions, including COVID-19.

These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release reflect the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Reference is made in this press release to the following non-GAAP measures: Adjusted EBITDA. These non-GAAP measures are commonly used by investors and other interested parties to evaluate our financial performance and are employed by the Company to measure its operating and economic performance and to assist in business decision-making. These non-GAAP measures do not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. Refer also to appendix tables, “Third Quarter 2022 Financial Highlights” and “Q3 2022 Highlights” of this press release as well as our Management’s Discussion and Analysis for definitions and reconciliations of non-IFRS measures to the nearest IFRS measures.

Contact Information:

Matt Alexander, Interim CFO
BuildDirect IR
1-778-382-7748
[email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-IFRS MEASURES

We define EBITDA as net income or loss before interest, income…



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