Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — D.A. Davidson Investor Conference 2009
28 slides from Bluelinx's conference presentation, Nov 12, 2009
Slide 1: BlueLinx Corporation D.A. Davidson Investor Conference
BlueLinx Corporation D.A. Davidson Investor Conference November 11, 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statement Safe Harbor - This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on estimates and assumptions made by our management that
Slide 3: George Judd, Chief Executive Officer
George Judd Chief Executive Officer
Slide 4: Overview: Investment Considerations
BlueLinx Overview: Investment Considerations Largest building products distributor in highly fragmented industry Unique, centralized distribution platform, national footprint, national sales force with local market focus, and a high-service & solutions-based value proposition for both customers and
Slide 5: Overview: The Right Products
BlueLinx Overview: The Right Products... Wide breath of products used primarily in Residential & Industrial applications Global Sourcing with quality assurance drives down costs Focused on products that are environmentally friendly Source of info & specs on over 10,000 products with 70,000 SKU's
Slide 6: Overview: The Right Products...To the Right Place
BlueLinx Overview: The Right Products...To the Right Place... Value to Manufacturers Reliable channels to market Consistent production runs Limits inventory investment Limits credit risk and receivable investment Demand creation for early life cycle products Nation-wide sales representation Market i
Slide 7: Overview: The Right Products...At the Right Time
BlueLinx Overview: The Right Products...To the Right Place...At the Right Time BlueLinx' 70+ locations are positioned in high growth areas allowing us to get the right products to the right place at the right time. CTPAT Customs "Fast Pass" for Imports State of the Art logistics Technology for track
Slide 8: Overview: Diversified Products, Suppliers and Customers
BlueLinx Overview: Diversified Products, Suppliers and Customers Diverse & Growing Supply Base: 750+ Vendor Partners World Class, Loyal Customers: 11,500+ Customer Partners Industrials/ Manufactured Housing National Dealers National Home Centers Regional Dealers Dealers Dealers Dealers Dealers Deale
Slide 9: Operating Environment: Largest Competitors
Operating Environment: Largest Competitors BlueLinx is the largest building products distributor (1) in the United States Annual Revenue (1) Annual Revenue (1) 1 BlueLinx $2.8 billion $2.8 billion 2 Weyerhaeuser $2.5 billion $2.5 billion 3 Universal Forest Products $2.2 billion $2.2 billion 4 Boise
Slide 10: Operating Environment: Structural Pricing Trends
Operating Environment: Structural Pricing Trends Source: Data from Random Lengths Publications, Inc., updated as of October 30, 2009 Pricing for key grades of structural wood products at low levels due to severely limited demand. Potential for increase in underlying prices once demand increases. Lev
Slide 11: Operating Environment: Achievements
Operating Environment: Achievements Gross Margin % Achieving gross margins well above historical levels through our ongoing management of product pricing and sales discipline Aligned cost structure with operating environment Tightly managed working capital Expanded supplier relationships Radiata Pin
Slide 12: Long-Term Objectives: Grow Specialty Products
BlueLinx Long-Term Objectives: Grow Specialty Products Partner with manufacturers to introduce new products Grow share in under-represented market segments (e.g. Industrials) Further penetrate geographic markets
Slide 13: Long-Term Objectives: Structural Products
BlueLinx Long-Term Objectives: Structural Products Increase utilization of vendor managed inventory programs Expand imports from Brazil and China and other areas offering lowest-cost sourcing Focus on premium brand products Focus on improved profitability and reduced risk
Slide 14: Long-Term Objectives: Outgrow an Expanding Market
BlueLinx Long-Term Objectives: Outgrow an Expanding Market Specialty unit volume will drive share growth over time Long-term objective is to grow specialty unit volume relative to the estimated overall end-use market Maintaining structural product profitability takes priority over share gain in time
Slide 15: Looking Forward: Macro Factors Remain Strong
Looking Forward: Macro Factors Remain Strong Third party composite housing start forecasts average approximately ~800 thousand Our current view is 700 thousand starts Generally stable to higher wood product prices Unemployment peaks in mid-2010 then begins to recede Credit continues to emerge 2009 2
Slide 16: Doug Goforth, Chief Financial Officer
Doug Goforth Chief Financial Officer
Slide 17: YTD Revenues
YTD Revenues '08 YTD '09 YTD Structural 1181.2 567.6 Specialty 1132.7 741.8 Other -35.6 -29.4 Jan '09 Feb '09 Mar '09 Apr '09 May '09 Jun '09 Jul '09 Aug '09 Sep '09 Sales per Day 6.13 6.21 6.49 6.66 6.7 6.83 6.97 7.13 6.98 YTD(1) by Product Category Average Sales per Day (43.8 %) Housing Starts dow
Slide 18: Gross Margin & Operating Expenses
Gross Margin & Operating Expenses YTD '08 YTD '09 YTD Structural 120.9 56.8 Specialty 161.3 101.4 Other -13.8 -10.3 GM$ by Product Category (1) Operating Expenses (1) '08 YTD '09 YTD Other 46.6 11.3 Fuel 15.5 6.8 Deprec 15 13.2 Gen Maint 18.2 14.6 Payroll & Related 155.4 113.4 57.2% 42.8% 64.1% 35.9
Slide 19: Gross Margin Trend
Gross Margin Trend Achieving gross margins above historical levels Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Gross Profit Dollars 130 136.4 120.9 92.5 103.8 119.2 102.8 66.1 77.8 107.4 83.2 46.4 44.3 48.3 55.3 Gross Margin % 0.094 0.099
Slide 20: Operating Expenses
Operating Expenses Managing operating expenses to demand environment Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 OPEX 102.3 103.2 104.8 92 93.9 98.7 89.9 111.2 85.6 86.3 78.7 73.3 62.7 55.1 58.9 (1) 4Q '07 includes approximately $17.1MM of
Slide 21: EBITDA 2008 to 2009 EBITDA Bridge
EBITDA 2008 to 2009 EBITDA Bridge ($ in millions) 2008 YTD EBITDA Change in GM Change in OPEX 2009 YTD EBITDA
Slide 22: Cash Cycle Days
Cash Cycle Days Managing working capital 3Q '07 4Q '07 1Q '08 2Q '08 3Q '08 4Q '08 1Q '09 2Q '09 3Q '09 Inv 45.8 44.7 46.3 46.3 45.3 43.9 44 44.7 44.7 A/R 34.7 32.9 34.5 35.3 34.7 32.4 33 35.6 35.6 A/P & OD's -28.7 -27.3 -28.3 -28.8 -27.8 -26.4 -27 -28.4 -28.9 Cash cycle days equal accounts receivab
Slide 23: Debt
Debt Revolver ($500 million facility) Matures May 7, 2011 $191 million excess availability as of October 3, 2009 Dividend restrictions apply if excess availability is less than $70 million No financial performance covenants provided excess borrowing availability is greater than $40 million Capital S
Slide 24: Closing Comments
Closing Comments Strong relationships with specialty product manufactures, brand name products, and sales expertise necessary to continue specialty products growth strategy, while also focusing on offering premium brand structural products National footprint with sophisticated logistics network enab
Slide 25: Question & Answer
Question & Answer www.BlueLinxco.com
Slide 26: Appendix
BlueLinx Appendix
Slide 27: EBITDA Reconciliation
EBITDA Reconciliation BlueLinx BlueLinx Holdings Inc. Reoonciliat Unaudited tion of GAAP Net Income to Non-GAAP EBITDA in millions Nine Months Ended ‘October 3, ‘September 27, GAAP net loss S35) 8 66) Adjustments Depreciation and amortization ‘pense Provision for (benefit from) income taxes EBITDA
Slide 28: Additional Information
Additional Information Additional information for Bluelinx can be found at our website www.bluelinxco.com or by contacting: Russ Zukowski Vice President - Finance Russ.Zukowski@bluelinxco.com (770) 953-7620
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