Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q4 2021 Earnings Presentation
24 slides from Bluelinx's earnings presentation, Feb 23, 2022
Slide 1: Fourth Quarter and Full Year 2021 Results Conference Call
Fourth Quarter and Full Year 2021 Results Divider 29 September, slide Conference Call 2020 February 23, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements. Forward-looking statements include, without limitation, any statement that predicts, forecasts, indicates or implies future results, performance, liquidity levels or achievements, and may contain the words “believe,” “antic
Slide 3: Executive Summary: Fourth Quarter 2021 Performance
Executive Summary Fourth Quarter 2021 Performance $ Millions $1,308 • Net Sales grew 12% to $973M $1,025 $971 $973 $865 • Specialty sales grew 29% 19.9% 19.2% • Structural sales down 10% 17.6% 15.8% 14.4% • Gross Margin of 19.9%, up 550 bps 4Q20 1Q21 2Q21 3Q21 4Q21 • Diluted EPS of $7.30 Net Sales G
Slide 4: Executive Summary: Full Year 2021 Performance
Executive Summary Full Year 2021 Performance $ Millions $4,277 • Net Sales grew 38% to $4.3B $3,097 • Specialty sales grew 35% $2,637 18.2% 15.4% • Structural sales grew 43% 13.5% • Gross Margin of 18.2%, up 280 bps • Diluted EPS of $29.99 FY 2019 FY 2020 FY 2021 Net Sales Gross Margin % • Adjusted
Slide 5: U.S. Housing Industry Trends
U.S. Housing Industry Trends Demand remains robust; supply remains constrained Demand Environment Supply/Cost Environment • Single-family housing starts grew 13% in 2021 • Supply for specialty building products remains compared to 2020 and estimated to grow into 2022 constrained • U.S. Housing inven
Slide 6: Single-Family Housing Demand
Single-Family Housing Demand Our business is correlated to single-family housing starts (SFHS) Total U.S. Single Family Housing Starts Total U.S. Monthly Single-Family Residential Home Supply Housing starts in thousands(1) Months of inventory(2) 2,000 • 2022 SFHS forecasted to 1,800 14 increase 10%
Slide 7: Residential Repair & Remodel Activity
Residential Repair & Remodel Activity Elevated Repair & Remodel activity continues with spending predicted to strengthen in 2022 Total Installed Base of U.S. Homes, Including U.S. Private Residential Construction Put-In-Place • Annual U.S. Homes installed Renter and Owner-Occupied Homes (CPP) base f
Slide 8: Wood-Based Commodity Price Trends
Wood-Based Commodity Price Trends Wood-based commodity markets experienced historic volatility in 2021 Framing Lumber Composite Index As of February 2022(1) • Prices rose throughout 4Q21; 1,600 Index Price TTM Avg. Index Price lumber and panels prices 1,400 Feb-22 framing lumber prices are 121% high
Slide 9: Key Performance Indicators
Key Performance Indicators 38% net sales growth and 63% gross profit growth in 2021; all-time high gross profit, EPS, and adjusted EBITDA Net Sales Gross Profit Dollars in millions Dollars in millions +38% $4,277 $778 +63% $3,097 $478 +56% +12% $194 $973 $124 $865 4Q20 4Q21 FY 2020 FY 2021 4Q20 4Q21
Slide 10: Key Performance Indicators: Margins
Key Performance Indicators 530 basis points of adjusted EBITDA margin expansion in 2021 Gross Margin SG&A Percentage of Net Sales Gross Profit / Net Sales SG&A / Net Sales +280 bps (170) bps (260) bps +550 bps 19.9% 10.3% 10.1% 18.2% 8.6% 15.4% 7.5% 14.4% 4Q20 4Q21 FY 2020 FY 2021 4Q20 4Q21 FY 2020
Slide 11: Specialty Products 4Q21 Performance
Specialty Products 4Q21 Performance 29% net sales growth year-over-year and 450 basis points of gross margin expansion ($ millions) Specialty Products Sales and Gross Margin 4Q21 Year-over-Year Specialty products include engineered wood, industrial products, cedar, moulding, siding, metal products a
Slide 12: Structural Products 4Q21 Performance
Structural Products 4Q21 Performance Net sales down 10% year-over-year with gross margins up 590 basis points ($ millions) Structural Products Sales and Gross Margin Year-over-Year Structural products include lumber, plywood, oriented strand board, rebar, and remesh • Net Sales of $331M, down $35M f
Slide 13: Investment in Operating Working Capital
Investment in Operating Working Capital Improvement in return on working capital year over year • Significant return on working Operating Working Days Sales of Inventory (DSI) capital, 63% for FY 2021 Capital Management Number of Days Dollars in millions(1) 61 58 • $162 million sequential $800 53 54
Slide 14: Debt Structure and Maturity
Debt Structure and Maturity Continue to mature capital structure to support future growth and value creation Debt Structure $671 $605 • $131 million FCF in 2021 $147 $575 Finance Leases $43 • Net of $14M of capital investments Revolver (ABL) $288 $300 $326 • Net leverage of 1.1x (down from 3.5x in 4
Slide 15: ESG
ESG Increasing Focus on ESG Key Pillars of ESG Focus Diversity & Focus on Environment and Accountable Governance Culture of Safety Inclusion Our Communities Practices • We continue to build and execute a culture • We are involved in the Forest • Separate roles for Chairman and CEO 29% 14% of safety
Slide 16: Key Areas of Management Focus
Key Areas of Management Focus Significant progress made in 2021 on continuous operating improvement and commercial excellence 1 2 3 4 Organic Margin Organizational Disciplined Sales Growth Expansion Efficiencies Capital Allocation • National account growth, • Focus on specialized, • Local sales exec
Slide 17: Appendix
Divider 29 September, slide Appendix 2020
Slide 18: Non-GAAP Measures
Non-GAAP Measures BlueLinx reports its financial results in accordance with GAAP. The Company also believes that presentation of certain non-GAAP measures may be useful to investors and may provide a more complete understanding of the factors and trends affecting the business than using reported GAA
Slide 19: Supplementary Information: SG&A Expense Bridge
Supplementary Information 4Q20 to 4Q21 SG&A Expense Bridge Dollars in Millions FY 2020 to FY 2021 SG&A Expense Bridge Dollars in Millions 18 -18-
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended December 2021 December 2020 Net income (loss) $ 73,620 $ 19,858 Adjustments: Depreciation and amortization 6,763 7,116 Interest expense, net 10,213 10,723 Adjustment to debt issuance cost associated with term 1,603 - loan/revolver(1) Provision for income taxes 2
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Quarter Ended December 2021 September 2021 June 2021 March 2021 December 2020 (In thousands) Net income (loss) $ 73,620 $ 47,198 $ 113,458 $ 61,860 $ 19,858 Adjustments: Depreciation and amortization 6,763 6,884 7,080 7,465 7,116 Interest expense, net 10,213 8,313 9,143 10,44
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Trailing Twelve Months for the Quarter Ended December 2021 September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) Net income (loss) $ 296,133 $ 242,374 $ 250,292 $ 143,529 $ 80,882 $ 50,829 $
Slide 23: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow for the Quarter Ended December 2021 September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) (1) Net cash provided (used) by Operations $ 18,164 $ 104,258 $ 47,166 $ (24,565) $ (
Slide 24: Non-GAAP Reconciliation: Net Debt and Net Leverage
Non-GAAP Reconciliation Net Debt and Net Leverage Ratio for the Trailing Twelve Months for the Quarter Ended December 2021 September 2021 June 2021 March 2021 December 2020 September 2020 June 2020 March 2020 December 2019 September 2019 June 2019 (In thousands) Current maturities of long-term debt,