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BuildDirect.com Technologies Inc. Earnings Release 2024

Apr 17, 2025

47925_rns_2025-04-17_09b2dbe2-cc27-402d-81c9-7f39b449f8e5.pdf

Earnings Release

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BuildDirect Reports Fourth Quarter and Year Ended December 31, 2024 Financial Results

  • Delivered $2.2 million in adjusted EBITDA in Fiscal 2024, extending the Company's track record to 12 straight quarters of positive performance.
  • Delivered gross margin of 38.7% in Fiscal 2024, an increase of 18 bps year-over-year.
  • Total operating expenses in Fiscal 2024 decreased by $2.3 million to $26.3 million, or 8.0% year-over-year, driven by disciplined cost control and operational efficiencies.
  • Working capital decreased by $0.1 million to $2.7 million at December 31, 2024 from $2.8 million at December 31, 2023.
  • Secured a total capacity of CAD$9.5 million in a Revolving Credit Facility from the Royal Bank of Canada.
  • Opened a new Pro Center in Brighton, Michigan and completed build-out and optimization of the Pro Center in Richmond, British Columbia in 2024; strategic groundwork enabled the successful launch of two additional locations in early 2025.
  • Company to host Fourth Quarter and Year Ended December 31, 2024 earnings conference call on April 17, 2025 at 1:30 PM (PDT) / 4:30 PM (EDT).

BuildDirect reports in US dollars and in accordance with IFRS Accounting Standards.

Vancouver, British Columbia--(Newsfile Corp. - April 17, 2025) - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or the "Company") a leading omnichannel building material retailer, today announced its financial results for the Fourth Quarter ("Q4 2024") and full-year audited financial results for the year ended December 31, 2024 ("FY 2024").

"In 2024, we stayed focused on what matters: improving margins, controlling costs, and growing where it makes sense," said Shawn Wilson, CEO of BuildDirect. "This marks our 12th straight quarter of positive adjusted EBITDA. We cut $2.3M in annual operating expenses, expanded gross margin, and made smart investments in inventory and new locations, including our latest opening in Brighton, Michigan, to support long-term growth. With a new credit facility in place, we're in a strong position to keep building."

"Since year end, we've opened a new location in California and completed an asset acquisition, with Anchor Flooring and Supply LLC and Yorkshore Sales and Marketing Inc. to strengthen our presence in the Southeast," Shawn continued. "It's a solid deal that fits our model: grow the Pro Center network, create operating leverage, and stay disciplined on returns."

Shawn added, "We're focused on scaling the right way by building or acquiring strong locations, expanding our commercial reach, and growing EBITDA through better execution."

Fourth Quarter and Full Year 2024 Financial Results Conference Call

Date: Thursday, April 17, 2025

Time: 1:30 PM (PDT) / 4:30 PM (EDT)

Live Webinar: https://us02web.zoom.us/webinar/register/WN_O9mCSndfR3aXnKrMapURYQ

The replay will be available approximately 24 hours after the completion of the conference call. In addition, an archived replay will be available on the Investor Relations section of the Company's website at https://ir.builddirect.com/events-and-presentation.

Among other things, BuildDirect will discuss its long-term financial outlook on the conference call and related materials will be 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.


Q4 2024 and FY 2024 Highlights

A. Financial Position

The following table summarizes the Company's financial position for the years as at December 31, 2024, and 2023:

As at December 31, 2024 As at December 31, 2023 Change
Cash and cash equivalents $ 2,347,491 $ 2,601,893 $ (254,402)
Working capital (1) 2,712,617 2,824,829 (112,212)
Total assets 27,752,963 25,357,709 2,395,254
Total liabilities 24,597,974 21,174,177 3,423,797
Total shareholders' equity 3,154,989 4,183,532 (1,028,543)
Common shares outstanding 42,032,706 41,941,535 91,171

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(1) A non-IFRS measure. See "Non-IFRS measures" for definitions and reconciliation of non-IFRS measures to the relevant IFRS Accounting Standards

B. Financial Results

The following table summarizes the Company's financial results for the three and twelve months ended December 31, 2024, and 2023:

Three months ended December 31, 2024 Three months ended December 31, 2023 Change
Revenue $ 16,723,578 $ 16,916,952 $ (193,374)
Income (loss) from operations (401,258) (753,517) 352,259
Comprehensive income (loss) 243,237 (1,971,942) 2,215,179
Adjusted EBITDA (1) 376,331 73,069 303,262
Basic and diluted loss per share $ 0.01 $ - $ 0.01

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Twelve months ended December 31, 2024 Twelve months ended December 31, 2023 Change
Revenue $ 65,464,840 $ 72,279,398 $ (6,814,558)
Income (loss) from operations (957,012) (740,301) (216,711)
Comprehensive income (loss) (1,247,530) (3,772,200) 2,524,670
Adjusted EBITDA (1) 2,245,299 3,551,036 (1,305,737)
Basic and diluted loss per share $ (0.03) $ (0.09) $ 0.06

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C. Revenue and Gross Profit per Segment

The Company reports its results in two segments: (1) BuildDirect and (2) Acquired Retailers ("Retailers"). We measure each reportable operating segment's performance based on revenue. Our BuildDirect segment comprises sales through our BuildDirect e-commerce and brick and mortar operations. Our Retailers segment comprises sales of flooring building materials through our acquired brick and mortar locations and includes installation services. The BuildDirect and Retailers segments contributed 25.2% and 74.8% in Q4 2024, compared to 22.5% and 77.5% in Q4 2023. Likewise, the BuildDirect and Retailers segments contributed 23.2% and 76.8% of our sales, respectively, in 2024 compared to 27.3% and 72.7% of our sales, respectively, in 2023.


The following table summarizes revenue and gross profit per Segment for Q4 2024 and Q4 2023:

Three months ended December 31, 2024

BuildDirect Retailers Total
Revenue 4,206,535 12,517,044 16,723,578
Cost of goods sold 2,033,227 8,127,470 10,160,697
Gross profit 2,173,308 4,389,574 6,562,881
Gross profit % 51.7% 35.1% 39.2%

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Three months ended December 31, 2023

BuildDirect Retailers Total
Revenue 3,800,051 13,116,901 16,916,952
Cost of goods sold 2,117,098 8,842,040 10,959,138
Gross profit 1,682,953 4,274,861 5,957,814
Gross profit % 44.3% 32.6% 35.2%

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Consolidated revenue in Q4 2024 was $16,723,578 compared to $16,916,952 in Q4 2023, a decrease of $193,374 or 1.1%.

Revenue in Q4 2024 for BuildDirect was $4,206,535 compared to $3,800,051 for the same period in the prior year, an increase of $406,484 or 10.7%. The increase can be attributed to the Company's strategy to shift its e-commerce product mix to higher margin, direct-sourced products with inventory levels to support the shift.

Q4 2024 revenue for Retailers was $12,517,044 compared to $13,116,901 for the same period in the prior year, a decrease of $599,857 or 4.6%. This decrease can be attributed to weaker housing remodeling and new construction activities, posited to be driven by higher mortgage interest rates.

Consolidated gross profit in Q4 2024 was $6,562,881 compared to $5,957,814 in the same period in the prior year, an increase of $605,067 or 10.2%. The increase can be attributed to higher revenue in the BuildDirect segment and higher gross margin in the Retailers segments. In addition, gross profit percentage increased 4.0% in Q4 2024 to 39.2% compared to 35.2% in Q4 2023.

D. Quarterly Financial Information(1)

| USD
(Unaudited) | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | 16,723,578 | 16,968,564 | 16,182,846 | 15,589,852 | 16,916,952 | 18,411,622 | 19,104,525 | 17,646,299 |
| Gross Profit | 6,562,882 | 6,503,404 | 6,184,756 | 6,090,951 | 5,957,814 | 7,321,604 | 7,575,470 | 6,992,441 |
| Gross Margin % | 39.2% | 38.3% | 38.2% | 39.1% | 35.2% | 39.8% | 39.7% | 39.2% |
| Net Income (Loss) | 243,237 | (384,414) | (517,029) | (589,324) | (1,971,942) | (480,818) | (975,778) | (343,661) |
| Net Earnings (loss) p/s: | | | | | | | | |
| Basic and diluted EPS | 0.01 | (0.01) | (0.01) | (0.01) | (0.05) | (0.01) | (0.02) | (0.01) |
| EBITDA(1) | 396,232 | 711,775 | 573,376 | 486,772 | (757,295) | 976,906 | 636,355 | 1,280,844 |
| Adjusted EBITDA(1) | 376,331 | 786,410 | 578,326 | 504,230 | 73,069 | 1,370,956 | 1,064,555 | 1,042,456 |

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(1) A non-IFRS measure. See 'Non-IFRS Measures' for definitions and reconciliation of non-IFRS measures to the relevant IFRS Accounting Standards.


The preceding table provides selected quarterly financial information that is unaudited, but reflects all adjustments of a normal, recurring nature which are, in our opinion, necessary to present a fair statement of the results of operations for the periods presented. Quarter-to quarter comparisons of our financial results are not necessarily meaningful and should not be relied upon as an indication of future performance. The Company has maintained positive Adjusted EBITDA through changing its strategy to focus on the more profitable Pro Customer base, optimizing e-commerce operations and reduce operating expenses.

2025 Outlook

In 2025, BuildDirect is pursuing a focused and disciplined growth strategy aimed at expanding its Pro Center network and unlocking greater operating leverage across its platform. With a proven track record of scalable and profitable operations, the company will look to accelerate growth through the exploration of a combination of new location builds and targeted strategic acquisitions.

As part of this strategy, and subsequent to year-end, BuildDirect opened a new Pro Center in California and completed the acquisition of key flooring assets from Anchor Flooring and Supply Company LLC ("Anchor") and Yorkshire Sales and Marketing Inc. ("Yorkshore"), marking its expansion in the Florida market. For the 12-month period ending December 31, 2024, Anchor and Yorkshire reported consolidated, unaudited revenue of US$5.8 million and EBITDA of US$661,000 as previously disclosed.

Looking ahead, BuildDirect remains committed to expanding its geographic footprint, deepening supplier relationships, and enhancing its service capabilities for professional customers. Each new location and acquisition is carefully aligned with the company's goal of delivering strong returns and capturing market share in both core and emerging regions.

In parallel, BuildDirect is focused on driving EBITDA growth through improved operational efficiency and the continued development of its commercial sales channel. By optimizing its infrastructure and leveraging data-driven decision-making, the company is well-positioned to scale profitably while maintaining a high standard of customer service.

These initiatives reflect BuildDirect's unwavering commitment to pursue sustainable growth, operational excellence, and long-term value creation for its stakeholders.

About BuildDirect

BuildDirect (TSXV: BILD) is an expanding omnichannel building materials retailer, specializing in Pro Centers-strategic distribution hubs designed to serve professional contractors and trades. The Company is actively scaling its footprint through a combination of organic growth and strategic acquisitions, driving efficiency and market expansion. 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 BuildDirect being in a strong position to keep building; BuildDirect's ongoing pursuit of a model focused on growing the Pro Center network, creating operating leverage and staying disciplined on returns; the Company building or acquiring strong locations, expanding its commercial reach, and growing EBITDA


through better execution; the Company's acceleration of growth through the exploration a combination of new location builds and targeted strategic acquisitions; the Company's expansion of its geographic footprint, deepening supplier relationships, and enhancing its service capabilities for professional customers; the Company's delivery of strong returns and capturing market share in both core and emerging regions; the Company's focus on driving EBITDA growth through improved operational efficiency and the continued development of its commercial sales channel; the Company being well-positioned to scale profitably while maintaining a high standard of customer service; and BuildDirect's unwavering commitment to pursue sustainable growth, operational excellence, and long-term value creation for its stakeholders.

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.

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 and Working Capital. These non-GAAP measures are commonly used by investors and other interested parties to evaluate the Company's 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, "Q4 2024 and FY 2024 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.

NON-IFRS MEASURES

This announcement refers to certain non-IFRS measures. These measures are not recognized measures under IFRS, and do not have a standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards. We use non-IFRS measures including "EBITDA" and "Adjusted EBITDA". Management uses these non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management compensation. As required by Canadian securities laws, we reconcile these non-IFRS measures to the most


comparable IFRS Accounting Standards measures in this announcement. See below regarding definitions and reconciliation of these non-IFRS measures to the relevant reported measures.

We define EBITDA as net income or loss before interest, income taxes and amortization. Adjusted EBITDA removes fair value adjustment of convertible debt and warrants, fair value adjustment of inventory, restructuring expenses, non-recurring bad debt expense, foreign exchange gains and losses, and share-based compensation items from EBITDA. We are presenting these measures because we believe that our current and potential investors, and many analysts, use them to assess our current and future operating results and to make investment decisions. Management uses these measures in managing the business and making decisions. EBITDA and adjusted EBITDA are not intended as substitutes for IFRS measures.

Three months ended December 31, 2024 Three months ended December 31, 2023
Total income (loss) and comprehensive income (loss) for the period 243,237 (1,971,942)
Add:
Interest Expense, Net 383,879 339,195
Income Tax Expense (989,812) (39,194)
Depreciation and amortization 758,928 914,646
EBITDA 396,232 (757,295)
EBITDA - % (1) 2.4% -4.5%
Add (deduct):
Stock-based compensation 18,661 (126,637)
Change in fair value of warrants 28,792 30,626
Forgiveness of deferred consideration - (1,425,000)
Foreign exchange (gain) loss (84,437) 39,229
Software implantation expenses - 37,812
Loss on disposal of assets 17,083 -
Loss on extinguishment of debt - 145,000
Impairment loss - 2,129,334
Adjusted EBITDA 376,331 73,089
Adjusted EBITDA - % (2) 2.3% 0.4%

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(1) EBITDA % is a ratio of EBITDA divided by Total Revenue
(2) Adjusted EBITDA % is a ratio of Adjusted EBITDA divided by Total Revenue

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.

For further information:
Shawn Wilson, CEO
[email protected]

BuildDirect Investor Relations
[email protected]

Consolidated Statements of Financial Position
(Expressed in United States dollars)


December 31, 2024 December 31, 2023
Assets
Current Assets:
Cash and cash equivalents $ 2,347,491 $ 2,601,893
Short-term investments 445,415 445,415
Trade and other receivables (note 3) 3,694,821 4,152,899
Inventories (note 4) 9,619,963 6,174,201
Prepaid materials, expenses and deposits 802,978 1,229,526
Total current assets 16,910,668 14,603,934
Non-current assets:
Property and equipment (note 5) 607,699 563,231
Intangible assets (note 6) 1,882,891 3,525,883
Right-of-use assets (note 7) 2,562,647 2,160,700
Non-current deposits 434,040 434,040
Goodwill (note 6) 2,530,622 2,530,622
Deferred tax asset (note 17) 2,824,396 1,539,299
Total non-current Assets 10,842,295 10,753,775
Total Assets $ 27,752,963 $ 25,357,709
Liabilities And Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities (note 8) 8,500,775 $ 5,895,863
Income taxes payable (note 17) 707,584 210,339
Current portion of lease (note 9) 1,154,315 1,319,526
Deferred revenue (note 10) 1,385,993 1,559,755
Current portion of long-term debt (note 11) 2,449,384 2,118,622
Current deferred consideration (note 6) - 675,000
Total Current Liabilities 14,198,051 11,779,105
Non-current liabilities:
Lease liability (note 9) 1,695,228 1,310,248
Long-term debt (note 11) 8,640,727 8,009,600
Warrants (note 12) 63,968 75,224
Total non-current liabilities 10,399,923 9,395,072
Shareholders' Equity
Share capital (note 14) 123,136,971 123,109,599
Share based payment reserve 11,515,195 11,323,580
Deficit (131,497,177) (130,249,647)
Total shareholders' equity 3,154,989 4,183,532
Total Liabilities & Equity $ 27,752,963 $ 25,357,709

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Consolidated Statements of Operations and Comprehensive Loss (Expressed in United States dollars)


2024 2023
Revenue (note 15) $ 65,464,840 $ 72,279,398
Cost of goods sold (note 4) 40,122,847 44,432,069
Gross Profit 25,341,993 27,847,329
Operating expenses:
Fulfillment costs 3,952,323 4,904,468
Selling and marketing 5,638,856 5,611,109
Administration 13,432,757 13,927,912
Research and development 413,300 466,629
Depreciation and amortization 2,861,768 3,677,512
Total operating expenses 26,299,004 28,587,630
Loss from operations (957,011) (740,301)
Other income (expense):
Interest income 48,330 62,595
Interest expense (1,372,684) (2,014,920)
Rental income 148,929 246,680
Change in fair value of warrants (note 12) 11,256 (46,843)
Forgiveness of deferred consideration (note 6) - 1,425,000
Finance fee (20,000) -
Foreign exchange gain 140,297 21,989
Restructuring costs - (102,415)
Loss on disposal of assets (17,083) (60,905)
Impairment loss on tangible assets and goodwill (note 6) - (2,129,334)
Loss on extinguishment of debt - (154,574)
Total other income (expense) (1,060,955) (2,752,727)
Loss before income taxes (2,017,967) (3,493,028)
Income tax recovery (expense) (note 17) 770,437 (279,172)
Total loss and comprehensive loss for the year $ (1,247,530) $ (3,772,200)
Loss per share
Basic and diluted loss per share (note 22) $ (0.03) $ (0.09)

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Consolidated Statements of Changes in Equity

(Expressed in United States dollars)

Common Shares Share based payment reserve
Number Amount Deficit Total
Balance - December 31, 2022 40,819,913 $ 122,803,204 $ 11,121,785 $ (126,477,447) $ 7,447,542
Issuance of share capital (note 14) 1,121,622 306,395 - - 306,395
Loss and comprehensive loss - - - (3,772,200) (3,772,200)
Share-based payment (note 14) - - 201,795 - 201,795
Balance - December 31, 2023 41,941,535 $ 123,109,599 $ 11,323,580 $ (130,249,647) $ 4,183,532
Balance - December 31, 2023 41,941,535 $ 123,109,599 $ 11,323,580 $ (130,249,647) $ 4,183,532
Issuance of deferred share units 7,843 3,720 - - 3,720
Exercise of options 83,328 23,652 23,652
Loss and comprehensive loss - - - (1,247,530) (1,247,530)
Share-based payment (note 14) - - 191,615 - 191,615
Balance - December 31, 2024 42,032,706 $ 123,136,971 $ 11,515,195 $ (131,497,177) $ 3,154,989

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Consolidated Statements of Cash Flows

(Expressed in United States dollars)


2024 2023
Cash provided by (used in):
Operating activities:
Loss for the year $ (1,247,530) $ (3,772,200)
Add (deduct) items not affecting cash:
Depreciation and amortization 2,861,768 3,677,512
Income tax expense (770,437) 279,172
Share-based compensation expense 191,615 201,795
Loss on disposal of property and equipment 14,766 60,905
Interest paid on leases 123,406 201,222
Other interest and finance cost 962,115 1,833,831
Interest earned on lease receivables (5,051) (57,004)
Loss on extinguishment of debt - 154,574
Impairment loss on intangible assets and goodwill - 2,129,334
Change in fair value of warrants (11,256) 46,842
Forgiveness of deferred consideration - (1,425,000)
Unrealized foreign exchange (129,830) (36,333)
Change in non-cash operating working capital (note 19) 188,818 958,090
Income taxes paid (17,415) (229,520)
Total operating activities 2,160,969 4,023,220
Investing activities:
Purchase of property and equipment (150,416) (42,756)
Principal received on lease receivables 191,709 266,908
Total investing activities 41,293 224,152
Financing activities:
Proceeds from exercise of equity instruments 27,372 306,395
Debt financing transaction costs (26,968) (20,133)
Interest paid (375,629) (1,132,383)
Principal lease payments (1,433,178) (1,431,970)
Promissory note repayment (1,245,000) (1,245,000)
Deferred consideration repayment (675,000) (675,000)
Loan advance 2,993,552 -
Loan repayment (1,721,813) (1,555,568)
Total financing activities (2,456,664) (5,753,659)
Effects of currency translation - 426
Decrease in cash and cash equivalents (254,402) (1,505,861)
Cash and cash equivalents, beginning 2,601,893 4,107,754
Cash and cash equivalents, end $ 2,347,491 $ 2,601,893

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BuildDirect

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