BuildDirect Reports First Quarter 2025 Financial Results

Yahoo

29-05-2025

Delivered $0.65 million in adjusted EBITDA in Q1 2025, extending the Company's track record to 13 straight quarters of positive performance.
Delivered gross margin of 41.3% in Q1 2025, an increase of 220 bps year-over-year.
Working capital decreased by $0.2 million to $2.5 million at March 31, 2025 from $2.7 million at December 31, 2024.
Opened a new Pro Center in California and completed the acquisition of key flooring assets in Florida to expand market reach in key U.S. regions.
Company to host First Quarter 2025 financial results conference call on Friday, May 30, 2025 at 10:30 AM (PDT) / 1:30 PM (EDT).
BuildDirect reports in US dollars and in accordance with IFRS Accounting Standards.
Vancouver, British Columbia--(Newsfile Corp. - May 29, 2025) - BuildDirect.com Technologies Inc. (TSXV: BILD) ("BuildDirect" or the "Company") a leading omnichannel building material retailer, today announced its financial results for the First Quarter Ended March 31, 2025 ("Q1 2025").
"BuildDirect delivered solid financial performance in the first quarter of 2025, generating $0.65 million in adjusted EBITDA and marking our 13th consecutive quarter of positive results," said Shawn Wilson, CEO of BuildDirect. "Our gross margin of 41.3%, an increase of 220 basis points year-over-year, reflects our more efficient and higher margin core inventory profile across our businesses."
Shawn added, "We also continued to execute on our strategic growth priorities by opening a new Pro Center in California and acquiring key flooring assets in Florida to expand our footprint in key U.S. regions with strong demand fundamentals. These actions support our long-term objective of driving sustainable, profitable growth and enhancing shareholder value."
BuildDirect First Quarter 2025 Financial Results Conference Call
Date: Friday, May 30, 2025Time: 10:30 AM (PDT) / 1:30 PM (EDT)Live Webinar: https://us02web.zoom.us/webinar/register/WN_VuvZe3WzTSCo3a1uM_TaVw
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-presentations.
Among other things, the Company will discuss the 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 as the long-term financial outlook.
First Quarter 2025 Financial Highlights
A. Financial Position
The following table summarizes the Company's financial position at March 31, 2025 and December 31, 2024.
As at
As atMarch 31,
December 31, 2025
2024
Change
Cash and cash equivalents
$
3,490,258$
2,347,491$
1,142,766Working capital (1)2,519,793
2,712,617
(192,824
)
Total assets26,736,784
27,752,963
(1,016,179
)
Total liabilities24,428,422
24,597,974
(169,552
)
Total shareholders' equity2,308,362
3,154,989
(846,627
)
Common shares outstanding42,040,123
42,032,706
7,417
B. Financial Results
The following table summarizes the Company's selected financial results for the three months ended March 31, 2025 and 2024.
Three months ended
Three months endedMarch 31,
March 31, 2025
2024
Change
Revenue
$
15,088,846$
15,589,852$
(501,006
)
Income (loss) from operations(155,299
)(316,981
)161,682Comprehensive income (loss)(885,905
)(589,324
)(296,581
)
Adjusted EBITDA (1)650,104
504,230
145,874Basic and diluted loss per share
$
(0.02
)
$
(0.01
)
$
(0.01
)
C. Revenue and Gross Profit per Segment
The Company reports results in two segments: (1) E-Commerce and (2) Pro Centers. We measure each reportable operating segment's performance based on revenue. The E-Commerce segment relates to our on-line platform while the Pro Center segment includes sales and installation revenue from bricks and mortar operations. The E-Commerce and Pro Center segments contributed 28% and 72% of the Company's revenue respectively in Q1 2025 compared to 27% and 73% of the Company's revenue, respectively, in Q1 2024.
The following table summarizes Revenue and Gross Profit per Segment for the three months ended March 31, 2025, and 2024.
Three months ended March 31, 2025
E-Commerce
Pro Centers
Total
Revenue
$
4,221,406$
10,867,440$
15,088,846
Cost of goods sold2,032,088
6,832,086
8,864,174
Gross profit2,189,318
4,035,354
6,224,672
Gross profit %51.9%
37.1%
41.3%Three months ended March 31, 2024
E-Commerce
Pro Centers
Total
Revenue
$
4,266,314$
11,323,538$
15,589,852
Cost of goods sold2,260,291
7,238,610
9,498,901
Gross profit2,006,023
4,084,928
6,090,951
Gross profit %47.0%
36.1%
39.1%
D. Working Capital
March 31,
December 31,
2025
2024
Total current assets
$
16,556,019$
16,910,668
Total current liabilities14,036,226
14,198,051
Working capital
$
2,519,793$
2,712,617
E. Quarterly Financial Information
USD
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Q1 2024
(Unaudited)
Revenue
15,088,846
16,723,578
16,968,564
16,182,846
15,589,852
Gross Profit
6,224,672
6,562,882
6,503,404
6,184,756
6,090,951
Gross Margin %
41.3%
39.2%
38.3%
38.2%
39.1%
Net Loss
(885,905)
243,237
(384,414)
(517,029)
(589,324)
Net Earnings (loss) p/s:
Basic and diluted EPS
(0.02)
0.01
(0.01)
(0.01)
(0.01)
EBITDA(1)
345,803
396,232
711,775
573,376
486,772
Adjusted EBITDA(1)
650,104
376,331
786,410
578,326
504,230
Subsequent events to Q1 2025
On April 23, 2025, BuildDirect entered into a supply agreement valued at up to US$2 million with a North American customer in the sports, entertainment, and recreation sector to provide high-performance flooring products for use in active-use facilities.
On May 9, 2025, BuildDirect completed a CAD$775,000 secured loan with its insider lender, Lyra Growth Partners Inc., with all proceeds used by the Company to fund loans ("Management Loans") to senior executives for the purpose of purchasing existing common shares in a private sale transaction with no new shares issued from treasury.
2025 Outlook
As part of the Company's growth strategy, BuildDirect is actively pursuing a combination of new location builds and targeted strategic acquisitions that align with its operational and financial objectives. Looking forward, BuildDirect remains committed to strengthening its geographic footprint, deepening supplier relationships, and expanding service capabilities to better serve its growing base of professional customers. BuildDirect is also focused on driving EBITDA growth through operational improvements, working capital discipline, and the continued build-out of its commercial sales channel. With a strong foundation in place and a clear path forward, BuildDirect is well-positioned to scale efficiently and capture market share in both core and emerging regions.
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, "Q1 2025" 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
Three months endedMarch 31,
March 31, 2025
2024Total loss and comprehensive loss
$
(885,905
)
$
(589,324
)
Add:
Interest Expense, Net342,170
307,760Income Tax Expense119,000
67,500Depreciation and amortization770,538
700,836EBITDA345,803
486,772EBITDA - % (1)2.3%
3.1%
Add (deduct):
Stock-based compensation34,865
64,180Change in fair value of warrants130,569
(3,039
)
Foreign exchange (gain) loss18,853
(43,683
)
Restructuring costs120,014
- -
-Adjusted EBITDA
$
650,104$
504,230Adjusted EBITDA - % (2)4.3%
3.2%
(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, [e-mail]
BuildDirect Investor [e-mail]
Condensed Consolidated Interim Statements of Financial Position(Unaudited)(Expressed in United States dollars)As at March 31, 2025
As at December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$ 3,490,258
$ 2,347,491
Short-term investments
200,000
445,415
Trade and other receivables (note 4)
3,013,944
3,694,821
Inventories (note 5)
8,980,077
9,619,963
Prepaid materials, expenses, and deposits
871,740
802,978
Total current assets
16,556,019
16,910,668
Non-current assets :
Property and equipment (note 6)
687,935
607,699
Intangible assets (note 7)
1,472,529
1,882,891
Right-of-use assets (note 8)
2,231,243
2,562,647
Non-current deposits
434,040
434,040
Goodwill (note 7)
2,530,622
2,530,622
Deferred tax asset
2,824,396
2,824,396
Total non-current assets
10,180,765
10,842,295
Total Assets
$ 26,736,784
$ 27,752,963
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities (note 9)
$ 7,191,878
$ 8,500,775
Income taxes payable
809,973
707,584
Current portion of lease (note 10)
975,734
1,154,315
Deferred revenue (note 11)
1,456,273
1,385,993
Debt - current (note 12)
3,602,368
2,449,384
Total current liabilities
14,036,226
14,198,051
Non-current liabilities:
Lease liability (note 10)
1,592,304
1,695,228
Debt - non-current (note 12)
8,604,855
8,640,727
Warrants (note 13)
195,037
63,968
Total non-current liabilities
10,392,196
10,399,923
Shareholders' equity:
Share capital (note 14)
123,143,637
123,136,971
Share based payment reserve
11,547,807
11,515,195
Deficit
(132,383,082)
(131,497,177)
Total Shareholders' equity
2,308,362
3,154,989
Total Liabilities and Equity
$ 26,736,784
$ 27,752,963
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss(Unaudited)(Expressed in United States dollars)
For the three months ended March 31
2025
2024
Revenue (note 16)$ 15,088,846
$ 15,589,852
Cost of goods sold (note 5)8,864,174
9,498,901
Gross Profit6,224,672
6,090,951
Operating expenses: Fulfillment costs895,598
997,767
Selling and marketing1,415,059
1,362,557
Administration3,298,776
3,346,772
Depreciation and amortization770,538
700,836
6,379,971
6,407,932
Profit (loss) from operations(155,299)
(316,981)
Other income (expense): Interest income6,440
22,102
Interest expense(348,610)
(329,862)
Rental income-
56,195
Fair value adjustment of warrants (note 13)(130,569)
3,039
Restructuring costs (note 20)(120,014)
-
Foreign exchange gain (loss)(18,853)
43,683
(611,606)
(204,843)
Loss before income taxes(766,905)
(521,824)
Income tax (expense) recovery(119,000)
(67,500)
Total loss and comprehensive loss for the period$ (885,905)
$ (589,324)
Deficit, beginning of period$ (131,497,177)
$ (130,249,647)
Deficit, end of period$ (132,383,082)
$ (130,838,971)
Loss per share: Basic and diluted loss per share (note 21)(0.02)
(0.01)
Condensed Consolidated Interim Statement of Changes in Equity (Deficiency)(Unaudited)(Expressed in United States dollars)
For the three months ended March 31, 2025 and 2024Common Shares
Share based payment reserve
Deficit
TotalNumber
Amount
Balance - December 31, 2023
41,941,535
$ 123,109,599
$ 11,323,580
$ (130,249,647)
$ 4,183,532
Issuance of share capital (note 15)
7,843
3,720
-
-
3,720
Loss and comprehensive loss for the period
-
-
-
(589,324)
(589,324)
Share-based payment expense (note 15)
-
-
64,180
-
64,180
Balance - March 31, 2024
41,949,378
123,113,319
11,387,760
(130,838,971)
3,662,108
Balance - December 31, 2024
42,032,706
$ 123,136,971
$ 11,515,195
$ (131,497,177)
$ 3,154,989
Issuance of share capital (note 15)
-
-
-
-
-
Exercise of options
7,417
6,666
(2,253)
-
4,413
Loss and comprehensive loss for the period
-
-
-
(885,905)
(885,905)
Share-based payment expense (note 15)
-
-
34,865
-
34,865
Balance - March 31, 2025
42,032,123
$ 123,143,637
$ 11,547,807
$ (132,383,082)
$ 2,308,362
Condensed Consolidated Interim Statement of Cash Flows(Unaudited)(Expressed in United States dollars)For the three months ended March 312025
2024Cash provided by (used in):Operating activities:
Loss for the period
$ (885,905)
$ (589,324)
Add (deduct) items not affecting cash:
Depreciation
763,042
700,836
Income tax expense
119,000
67,500
Stock-based compensation expense
34,865
64,180
Other interest and finance cost
269,487
295,175
Interest paid on leases
40,556
34,687
Interest earned on lease receivables
-
(22,102)
Fair value adjustment on warrants
131,069
(3,039)
Unrealized foreign exchange
(515)
(39,794)
Change in non-cash working capital (note 17)
312,716
664,774
Income taxes paid
(16,611)
(1,000)
Total operating activities
767,704
1,171,893Investing activities:
Purchase of property and equipment
(101,014)
(29,329)
Principal received on lease receivables
-
70,551
Total investing activities
(101,014)
41,222Financing activities:
Proceeds from exercise of options
4,413
3,720
Deferred financing costs
(72,939)
-
Interest paid
(53,917)
(99,766)
Principal lease payments
(322,060)
(347,479)
Promissory note repayment
(311,250)
(311,250)
Deferred consideration repayment
-
(675,000)
Loan advances
1,233,123
-
Loan repayments
(1,293)
(239,581)
Total financing activities
476,077
(1,669,356)
Increase/(decrease) in cash and cash equivalents
1,142,767
(456,241)
Cash and cash equivalents, beginning
2,347,491
2,601,893
Cash and cash equivalents, end
$ 3,490,258
$ 2,145,652
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