Bluelinx Holdings Inc. · NYSE:BXC
Bluelinx — Q1 2024 Earnings Presentation
25 slides from Bluelinx's earnings presentation, May 1, 2024
Slide 1: BlueLinx Q1 2024 Results
BlueLinx Q1 2024 Results Delivering What Matters May 1, 2024 © BlueLinx 2024. All Rights Reserved. 1
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: Opening Remarks
Opening Remarks Shyam Reddy President & CEO 3
Slide 4: BlueLinx Strategic Priorities
BLUELINX STRATEGIC PRIORITIES BlueLinx: Delivering What Matters 4
Slide 5: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS Explosive profitable growth with a highly engaged team n Net sales of $726M, down 9.0% year-over-year q Net sales impacted by January weather conditions and ongoing specialty deflation n Gross profit of $128M, down 4% year-over-year q 17.6% of net sales q 81% of gross prof
Slide 6: U.S. Housing Industry
U.S. HOUSING INDUSTRY n New home starts decelerating q March single-family housing starts down 12% from February q Builder's confidence remained at 51 in April, up 6 points from April 2023 but flat with March 2024 (1) after 4 months of sequential improvement n Home affordability remains challenging
Slide 7: Financial Review
Financial Review Andy Wamser Chief Financial Officer 7
Slide 8: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS Q1 Q1 Q1 Commentary $ millions, except per share data Variance 2024 2023 n Net Sales decreased 9.0% to $726M Net Sales $726 $798 (9.0)% q Specialty product sales down 11.3% Gross Profit $128 $134 (4.4)% q Structural product sales down 3.3% n Gross Margin of 17.6%, up 90 bp
Slide 9: Specialty Products Q1 2024 Results
SPECIALTY PRODUCTS Q1 2024 RESULTS ($ millions) Q1 Commentary n Net sales of $504M, down 11% q Driven by deflation q Specialty is approximately 70% of total net sales n Gross profit of $104M, down 2% q Specialty gross profit 81% of total gross profit q Includes the net benefit of duty-related items
Slide 10: Structural Products Q1 2024 Results
STRUCTURAL PRODUCTS Q1 2024 RESULTS ($ millions) Q1 Commentary n Net sales of $222M, down 3% q Driven by framing lumber volumes q Year-over-year average market pricing for commodities was mixed: 2% decrease in average price of lumber 23% increase in average price of panels n Gross profit of $24M
Slide 11: Balance Sheet
BALANCE SHEET ($ millions) Gross Debt Structure Debt Maturity Schedule $300 undrawn revolver * $350 million revolver less $4 million of reserves and letters of credit; $346 million of net availability Note: debt maturity schedule does not include finance lease obligations Net Leverage* n At the end
Slide 12: Working Capital and Free Cash Flow
WORKING CAPITAL AND FREE CASH FLOW Net Working Capital Management(1) 1Q24 Free Cash Flow Walk $ in millions $ in millions 1. Net working capital includes accounts receivable, inventory, and accounts payable; Return on net working capital is calculated by dividing trailing twelve month (TTM) Adjusted
Slide 13: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK GUIDING PRINCIPLES n Maintain strong balance sheet and OPERATING CASH FLOW FREE CASH FLOW financial stability n Long-term net leverage could increase to at or around 2.0x when INVEST IN THE STRATEGIC SHARE considering growth BUSINESS ACQUISITIONS REPURCHASES n Invest in
Slide 14: Q&A
Q&A BLUELINX 4
Slide 15: Appendix
Appendix BLUELINX s
Slide 16: Macro Trends
MACRO TRENDS Total U.S. Single Family Housing Starts (SFHS) Housing starts in thousands (1) LIRA Remodeling Activity Index TTM Moving Total - Dollars in billions(2) Starts expected to be around 20-year average and well above 2009-2011 levels Remodeling spend expected to slow in 2024 20-year average
Slide 17: Wood-Based Commodity Price Trends
WOOD-BASED COMMODITY PRICE TRENDS Framing Lumber Composite Index $/mbf, Quarterly Average Price(1) As of March 2024 Average Q1 24 lumber prices declined 2% year- over-year and increased 5% from Q4 23 Structural Panel Composite Index $/msf, Quarterly Average Price(1) As of March 2024 Average Q1 24 pa
Slide 18: Non-GAAP Measures and Supplemental Financial Information
Non-GAAP Measures and Supplemental Financial Information The Company 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 affe
Slide 19: Supplemental Financial Information
Supplemental Financial Information Net sales, gross profit dollars, gross profit percentages, sales mix, and gross profit mix by product category by fiscal quarter, Q1 2022 – Q1 2024 In millions where dollars are presented Fiscal Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 202
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Net Income and Adjusted Diluted EPS reconciliation for fiscal quarters Q1 2022 - Q1 2024 In thousands where dollars are presented, except per share data Fiscal Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Net income (loss) $ 17,492
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Free cash flow by fiscal quarter Q1 2022 - Q1 2024 In millions $ Fiscal Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Net cash (used in) provided by operating activities $ (31) $ 76 $ 78 $ 64 $ 89 $ 154 $ 143 $ 101 $ 2 Less: Property and equi
Slide 22: Supplemental Financial Information: Net Working Capital
Supplemental Financial Information Net Working Capital by Fiscal Quarter Q1 2022 – Q1 2024 Fiscal Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Current assets: Receivables, less allowance for doubtful accounts $ 288 $ 228 $ 298 $ 294 $ 299 $ 252 $ 360 $ 423 $ 497 In
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA reconciliation by fiscal quarter, Q1 2022 – Q1 2024 In millions where dollars are presented Fiscal Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Net income (loss) $ 17 $ (18) $ 24 $ 24 $ 18 $ 32 $ 60 $ 71 $ 133 Adjustments: De
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Twelve-Month Trailing Adjusted EBITDA reconciliation by Fiscal Quarter, Q1 2022 – Q1 2024 In millions $ Twelve-Month Trailing as of the End of Fiscal Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 Net income $ 48 $ 49 $ 99 $ 134 $ 181 $ 296 $
Slide 25: Non-GAAP Reconciliation / Supplemental Financial Information
Non-GAAP Reconciliation / Supplemental Financial Information The following table presents Net Debt, Net Debt excluding real property finance lease liabilities, Net Leverage Ratio, and Net Leverage Ratio excluding real property finance lease liabilities, for the fiscal quarter indicated: Fiscal Quart